<PAGE>
CHANCELLOR LGT
ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
GROWTH &
INCOME FUND
SEMIANNUAL REPORT
APRIL 30, 1997
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Message from the
Chairman............. 1
Report from the Fund
Managers and Key
Portfolio Holdings... 2
Financial
Statements........... F1
The views of the Fund's manage-
ment as described in this report
are as of the date it was
written. Portfolio holdings and
allocations are as of April 30,
1997, unless otherwise noted.
Views, portfolio holdings and
allocations may have changed
subsequent to these dates.
</TABLE>
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
MESSAGE FROM THE CHAIRMAN
Dear Investor,
This report is written in a style we hope you find enjoyable to read and easy
to understand. Our intention is to provide our shareholders with meaningful
information about the relative performance of GT Global Mutual Funds. We
think it is important to help investors develop a global perspective about
their investments, including developments in individual economies around the
world. Specifically, we address how macroeconomic and political events within
countries influence investment results and, ultimately, Fund performance.
We describe our management process and offer insights into the Fund s
investment strategy. Companies and countries in which the Fund invests are
discussed, as well as issues pertinent to decisions affecting the Fund.
Biographical information on portfolio managers' background and experience is
also included, and through our question and answer format, we make it
possible for shareholders to be included in the thought processes that form
the basis of their investment decisions. Additionally, this report contains
performance illustrations that show the historical returns of a hypothetical
investment and compare it to an appropriate benchmark.
We make every effort to communicate as clearly as possible because we want
you, our shareholders, to have a useful understanding of what is happening
with your investments in GT Global Mutual Funds, and why.
We would also like to emphasize that today--as global investing continues to
become increasingly complex, information travels as quickly as a keystroke,
and critical decisions must be made within shorter time frames--prudent
advice, professional management, global diversification and investing for the
long term have never been more important.
As always, we appreciate and value our shareholders in GT Global Mutual Funds.
Sincerely,
[SIGNATURE]
William J. Guilfoyle
CHAIRMAN OF THE BOARD AND PRESIDENT
GT GLOBAL MUTUAL FUNDS
<PAGE>
[PICTURE]
INVESTMENT OBJECTIVE AND CURRENT STRATEGY
The Fund seeks long-term capital appreciation and current income. In an
effort to meet both objectives, the Fund invests primarily in stock of
blue-chip companies and high-quality government bonds from around the world.
We are focusing on the attractive opportunities we feel exist in European
equity and dollar-bloc debt markets.
GT GLOBAL GROWTH & INCOME FUND
PERFORMANCE SUMMARY
JP Morgan Global GT Global Growth &
Government Bond Index MSCI World Income Fund
9/25/90 10000 10000 9525
10045 9678 9525
10443 10583 9545
10625 10412 9625
10744 10632 9712
10987 11023 10015
10997 12045 10338
10653 11692 10314
10781 11785 10560
10791 12054 10826
10647 11312 10417
10872 11848 10895
11098 11813 11040
11503 12124 11188
11616 12323 11041
11806 11788 10852
12402 12648 11571
12159 12416 11401
12124 12204 11529
12012 11631 11314
12112 11795 11637
12456 12267 12048
12796 11858 11981
13078 11891 11938
13426 12182 11916
13412 12072 11758
13077 11748 11691
12846 11960 11647
12967 12059 11869
13187 12101 12004
13399 12390 12475
13605 13111 12812
13853 13721 12903
13941 14039 13084
13952 13924 13197
13958 14213 13519
14371 14867 14070
14523 14595 14046
14516 14999 14627
14410 14153 14418
12/31/93 14557 14848 15117
14694 15830 15610
14533 15627 14905
14466 14956 14382
14455 15421 14573
14336 15464 14430
14506 15423 14309
14642 15719 14718
14604 16195 14982
14677 15773 14721
14897 16224 15086
14709 15524 14600
14743 15677 14577
15042 15444 14430
15429 15672 14676
16214 16431 14722
16473 17007 15093
16933 17156 15465
17038 17154 15384
17119 18015 15834
16643 17617 15459
17018 18134 15855
17184 17852 16032
17376 18475 16310
17591 19018 16810
17410 19366 16939
17309 19487 17016
17282 19815 17087
17218 20285 17217
17236 20306 17502
17387 20412 17575
17707 19695 17367
17780 19925 17863
17878 20709 18145
18233 20857 18725
18493 22029 19515
18365 21680 19671
17905 21945 19565
17781 22201 19857
17646 21766 19907
4/30/97 17547 22481 20041
The chart above shows the performance of the GT Global Growth & Income Fund
Class A shares since the Fund's inception versus the various indices. This
represents a cumulative return of 100.41% and an average annual total return
of 11.12% for the Fund. The chart assumes a hypothetical $10,000 initial
investment in the Fund's Class A shares and reflects all Fund expenses and
the maximum 4.75% sales charge. A $10,000 investment in the Fund s Class B
shares at inception on October 22, 1992, would have been valued at $16,425 on
April 30, 1997. This figure reflects all Fund expenses and the applicable
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years), assuming a 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 $13,045 on April 30, 1997.
AVERAGE ANNUAL TOTAL RETURNS%(1)
APRIL 30, 1997
<TABLE>
<CAPTION>
SHARE CLASS WITHOUT SALES CHARGE(2) WITH SALES CHARGE
1 YEAR 5 YEAR LIFE OF FUND 1 YEAR 5 YEAR LIFE OF FUND
<S> <C> <C> <C> <C> <C> <C>
Class A(3) 16.40 11.48 11.94 10.87 10.40 11.12
Class B(3) 15.66 N/A 11.90 10.66 N/A 11.60
Advisor Class(4) 16.63 N/A 14.89 N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE%(2)
ANNUAL TOTAL RETURNS (PER CALENDAR YEAR)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
1990 1991 1992 1993 1994 1995 1996
Class A 1.97(3) 19.14 2.58 27.36 -3.57 15.32 17.02
Class B N/A N/A 1.173 26.80 -4.19 14.56 16.10
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain
distributions at net asset value.
(2) Performance data do not reflect the maximum 4.75% sales charge and the
contingent deferred sales charge (5% in the first year, decreasing to 0%
after six years) for Class A and Class B shares, respectively, which, if
included, would have reduced performance quoted.
(3) The Fund began operations on September 25, 1990; Class B shares
commenced on October 22, 1992.
(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>
GT GLOBAL GROWTH & INCOME FUND
INTERVIEW WITH PORTFOLIO MANAGERS
NICK TRAIN AND PAUL GRIFFITHS
Q HOW DID THE FUND PERFORM?
A We have been very pleased with the Fund's overall performance. In fact,
its competitive returns and moderate volatility have earned it a ****
Morningstar rating.(5) The Fund is rated against a universe of 939, 478 and
219 International Equity Funds for the one-, three- and five-year periods
ended March 31, 1997, respectively. For the six-month reporting period to
April 30, 1997, total return for Class A shares was 7.03% (1.94% including
the maximum 4.75% sales charge) and 6.69% for Class B shares (1.69% including
the maximum 5% contingent deferred sales charge). Total return over the same
period was 7.79% for the Morgan Stanley Capital International (MSCI) World
Index(6) and -3.76% for the J.P. Morgan Global Government Bond Index.(7)
Superior returns for the period relative to the J.P. Morgan Global Government
Bond Index were achieved by maintaining a higher percentage of the Fund s
assets in equities; bond markets corrected following the hike in U.S.
short-term rates. Among its equity holdings, financial and energy stocks
experienced strong gains. The Fund also benefited from its orientation toward
larger cap stocks, which outperformed smaller cap stocks on a global basis.
Q WHAT COMPANIES IN PARTICULAR STAND OUT AS STRONG CONTRIBUTORS TO FUND
PERFORMANCE?
A The Fund's returns in general were supported by security selection in its
largest three geographical allocations. Companies that performed particularly
well include Bristol Myers Squibb in the U.S., which enjoyed strong returns
on the back of general large cap buoyancy, Royal & Sun Alliance Insurance and
Lloyds TSB Group in the UK, and the ING Groep and AEGON in the Netherlands.
These companies and others have benefited from low inflation, falling
interest rates and restructuring and consolidation within the European
financial services sector--a mix similar to what drove the U.S. financial
services sector in the early to mid-1990s.
AEGON: A EUROPEAN SUCCESS STORY
[GRAPH]
AEGON, THE DUTCH FINANCIAL COMPANY WITH INSURANCE INTERESTS, HAS BEEN A
BENEFICIARY OF DECLINING BOND YIELDS AND LOW INFLATION. IN ADDITION,
SHAREHOLDERS HAVE BEEN REWARDED AS THE COMPANY HAS IMPLEMENTED WIDESPREAD
RESTRUCTURING AND DIVESTED LESS PROFITABLE BUSINESSES. AEGON HAS SEEN A JUMP
IN ITS SHARE PRICE FROM 87.30 DUTCH GILDERS TO 136.80 AT THE END OF APRIL,
PROVIDING A TOTAL RETURN TO SHAREHOLDERS OF APPROXIMATELY 57%.
Source: Bloomberg, June 1997.
Q WHAT ACCOUNTS FOR THE FUND'S OVERWEIGHTED POSITION IN CONTINENTAL EUROPEAN
EQUITIES RELATIVE TO THE INDEX?
A In addition to the current sanguine environment of accelerated economic
growth, low inflation and low interest rates, major reasons to maintain a
significant weighting in continental European equities are corporate
restructuring and the increasing emphasis on creation of shareholder value.
This is a fundamental shift in corporate culture and, in our opinion,
represents considerable opportunity.
Q WHAT DO YOU FIND ATTRACTIVE ABOUT UK EQUITIES (12.8% OF THE PORTFOLIO)?
A The Fund maintains a significant weighting in this market for a number of
reasons. Historically, the UK has had the most shareholder-oriented corporate
sector in the world outside the U.S. It also has many distinguished, globally
oriented companies that enjoy brand recognition and have considerable pricing
power. In addition, the new Labour government has turned over
CONTINUED P.4
(5) Morningstar proprietary ratings reflect historical risk-adjusted
performance as of March 31, 1997. Morningstar ratings may change monthly
and are calculated from the Fund's one-, three- and five-year and overall
average annual returns in excess of 90-day Treasury bill returns with
appropriate sales charge adjustments, and a risk factor that reflects
Fund performance below 90-day T-bill returns. Ten percent of the funds in
an investment category receive five stars, 22.5% receive four stars. Past
performance is no guarantee of future results.
(6) MSCI World Index is a market value-weighted average of the performance
of 1,554 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.
(7) J.P. Morgan Global Government Bond Index is a market value-weighted
average of government bonds from 13 major bond markets. It includes the
effect of reinvested coupons and is measured in U.S. dollars.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
3
<PAGE>
INTERVIEW WITH THE PORTFOLIO MANAGERS CONTINUED
responsibility for setting interest rates to the Bank of England, signaling a
commitment to low inflation.
Q HOW WOULD YOU DESCRIBE YOUR EQUITY INVESTMENT STRATEGY?
A We take a three-step approach to investing. First we screen for dividend
yield by reviewing the Morgan Stanley equity universe for all stocks offering
a historic dividend yield above the average. Then we examine the resulting
universe for companies offering participation in industries or themes we
favor. Next we consider stocks we find attractive on other valuation
criteria, such as opportunities offered by companies that may be
beneficiaries of rationalization and cost-cutting. Normally, the equity
portion of the Fund is invested in the equity securities of companies with
market capitalizations of at least US$1 billion.
Q WHAT CHANGES DID YOU MAKE TO THE FUND'S INVESTMENT STRATEGY OVER THE
PERIOD?
A The most significant change was to increase the Fund's exposure to the
U.S. and the Netherlands. In the U.S., we feel the expansion of the labor
market, together with improving productivity, implies the economy should be
able to grow at around 3% annually without increasing inflationary pressures--
first quarter corporate earnings were exceptionally favorable. And while the
U.S. stock market may not have the same upside potential as other markets
that have performed less well over the last two years, we believe stocks with
strong global positions and good earnings growth should continue to provide
good returns.
The Netherlands remains home to some of what we see as the best companies,
many of which we own. Examples include Royal Dutch, the world's biggest
integrated oil company, and ABN Amro, one of Europe s largest banks. We also
like Akzo Nobel, the chemical company, which also has a pharmaceutical
division with promising new products.
Q COULD YOU EXPLAIN THE FUND'S STRATEGY WITH RESPECT TO BOND INVESTMENTS?
A Overall, our strategy has been to reduce the overweighting we had
throughout much of last year in some of the peripheral European markets such
as Italy, Spain and particularly Sweden, as those markets overshot relative
to our targets. These markets were running very fast, not just on fundamental
economics, but also on European Monetary Union (EMU) speculation and
membership in the Exchange Rate Mechanism (ERM).
While the Fund benefited from these trends, we began to reduce exposure as we
felt momentum beginning to slow considerably around the end of the year.
Currently, we have a lower weighting in these markets, although we still
retain a toehold because, clearly, they are giving us higher income, and some
prospect exists for further gains.
We reallocated some of those funds into core Europe, in countries such as
Germany and Denmark, and some into the dollar-bloc nations. The Fund holds a
considerable position in the UK in particular, primarily on the basis of
sterling s strength as well as attractive yields. Some of this has been at
the shorter end of the market to take advantage of yields and underlying
currency exposure since the portfolio continued to seek yield as well as
growth.
Q GOING FORWARD, WHAT ARE YOUR EXPECTATIONS ON THE BOND SIDE?
A The period has seen some retrenchment and, at least over the shorter
term, we believe we are moving into a slightly less bond-friendly
environment. Consequently, we ve withdrawn from some of those spread markets
that had benefited from higher liquidity. Looking forward, we currently
expect the bias of the portfolio to continue to shift out of Europe, both
core and peripheral markets, and into dollar-bloc countries--Canada,
Australia, the U.S. and New Zealand, for example.
The bond element of the portfolio remains relatively diverse. In terms of
overall duration, we are slightly overweighted against the JP Morgan Index,
primarily because we re mildly positive. Although there s some risk of
further retrenchment, we would tend to use it, as we did in the U.S., as a
buying opportunity. Yields of around 7 1/4% on the U.S. 30-year would present
an opportunity to build exposure. We are not particularly concerned about a
further hike in interest rates. While we think one more hike is possible,
ultimately a rise in short-term rates is counterinflationary and, therefore,
positive on the longer end.
Q WHAT IS YOUR OUTLOOK FOR EQUITY MARKETS OVER THE REMAINDER OF THE YEAR?
A Low inflation, attractive valuations, major corporations taking advantage
of the trend toward globalization and restructuring are major trends that
have worked to the Fund s advantage over the last several years, and we
believe they will continue.
4
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
ABOUT THE PORTFOLIO MANAGERS
NICK J. TRAIN -- Portfolio Manager for Chancellor LGT Asset Management since
1984; Investment Analyst since 1981. Prior to joining Chancellor LGT, Mr.
Train received his B.A. from Oxford University.
PAUL GRIFFITHS -- Portfolio Manager for Chancellor LGT Asset Management
since 1994. Prior to joining Chancellor LGT, Mr. Griffiths was a Fixed Income
Fund Manager at Lazard Investors from 1993-94 and at Sanwa International from
1991-93. He received his B.Sc from the University of York, England.
SECTOR ALLOCATION OF NET ASSETS%
APRIL 30, 1997
EQUITY
Finance 26.6
Energy 13.9
Services 7.4
Materials/Basic Industry 6.4
Consumer Non-Durables 5.9
Health Care 4.1
Capital Goods 3.0
Consumer Durables 1.5
Multi Industry/Misc. 1.3
Technology 0.3
FIXED INCOME INVESTMENTS
Gov't & Gov't Agency Obligations 21.1
Corporate Bonds 5.5
Short-Term & Other 3.0
GEOGRAPHIC ALLOCATION OF NET ASSETS
Australia/NZ 10.1%
Germany 13.4%
UK 20.1%
North America & Other 27.3%
Other Europe 29.1%
Allocations may change as market conditions change.
A complete listing may be found in the Financial Statements section of this
report.
5
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of
KEY EQUITY HOLDINGS(8) Country Net Assets
<S> <C> <C>
BRISTOL MYERS SQUIBB CO. This well-established company offers a wide U.S. 2.6
range of prescription and non-prescription drugs, medical devices, health
and skin care products, toiletries and beauty aids.
ELEKTROWATT AG A holding company that operates subsidiaries which generate SWITZERLAND 2.5
and sell electricity; the company also has interests in hydro and nuclear
power plants.
ROYAL DUTCH PETROLEUM Co. One of the largest oil companies worldwide, NETHERLANDS 2.4
Royal Dutch is a key player in the energy industry, both within Europe and
on a global basis. Its success is based on a proven track record of
exploration, together with well-run marketing and chemical activities.
ROYAL & SUN ALLIANCE INSURANCE GROUP PLC The holding company for UK 2.4
multi-national insurance companies Sun Alliance Group Plc and Royal
Insurance Holdings.
SWISS BANK CORP. Offering a broad range of banking operations, including SWITZERLAND 2.4
foreign exchange and bank note dealings, precious metal trading, mortgages
and building loans, Swiss Bank has operations throughout Switzerland and
an extensive network of international subsidiaries.
AEGON NV A Netherlands-based international insurance group, AEGON NETHERLANDS 1.9
primarily writes life and health insurance, and offers related pension,
savings and investment products in Europe, North America and the Caribbean.
TELECOM CORPORATION OF NEW ZEALAND LTD. This full-service NEW ZEALAND 1.9
telecommunications company provides local, national and international
telephone activities that offer cellular, directories, leased circuits,
mobile radio, paging and data communications.
CS HOLDING AG Provides universal bank services in Switzerland, and SWITZERLAND 1.8
investment, trust and management services and life insurance through its
subsidiaries. It is the parent company of Credit Suisse, CS First Boston,
Elektrowatt and CS Life.
ABN AMRO HOLDING N.V. A full service bank with a presence in about 70 NETHERLANDS 1.7
countries, in addition to its 1,011 offices in the Netherlands.
AVON PRODUCTS, INC. A worldwide manufacturer and direct seller of beauty U.S. 1.6
products, fragrances, fashion jewelry and other goods. The company
markets its products in 119 countries through its network of approximately
1.7 million independent sales representatives.
</TABLE>
Source: Bloomberg.
(8) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
6
<PAGE>
GT GLOBAL
GROWTH &
INCOME FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (26.6%)
Royal Sun Alliance Insurance Group PLC ................ UK 2,081,400 $ 16,471,146 2.4
INSURANCE - MULTI-LINE
Schweizerischer Bankverein (Swiss Bank Corp.)-/- ...... SWTZ 74,750 16,349,341 2.4
BANKS-MONEY CENTER
AEGON N.V. ............................................ NETH 187,875 13,313,521 1.9
INSURANCE-LIFE
CS Holding AG - Registered ............................ SWTZ 108,300 12,211,520 1.8
BANKS-MONEY CENTER
ABN AMRO Holding N.V. ................................. NETH 166,824 11,470,542 1.7
BANKS-MONEY CENTER
Union Bank of Switzerland - Bearer .................... SWTZ 11,752 11,135,742 1.6
BANKS-MONEY CENTER
First Tennessee National Corp. ........................ US 245,400 10,644,225 1.5
BANKS-REGIONAL
ING Groep N.V. ........................................ NETH 264,262 10,381,043 1.5
OTHER FINANCIAL
Commonwealth Bank of Australia ........................ AUSL 757,700 8,228,550 1.2
BANKS-SUPER REGIONAL
IKB Deutsche Industriebank AG ......................... GER 394,000 7,693,356 1.1
BANKS-REGIONAL
American General Corp. ................................ US 170,000 7,416,250 1.1
INSURANCE-LIFE
Deutsche Bank AG ...................................... GER 134,150 7,083,368 1.0
BANKS-MONEY CENTER
Fortis Amev N.V. ...................................... NETH 164,542 6,210,248 0.9
OTHER FINANCIAL
Generale de Banque S.A.: .............................. BEL -- -- 0.9
BANKS-MONEY CENTER
Common .............................................. -- 14,762 6,125,011 --
Strip VVPR-/- ....................................... -- 1,342 639 --
General Accident PLC .................................. UK 400,000 5,702,252 0.8
INSURANCE - PROPERTY-CASUALTY
National Westminster Bank PLC ......................... UK 471,800 5,579,362 0.8
BANKS-MONEY CENTER
Kredietbank N.V. ...................................... BEL 12,980 5,058,676 0.7
BANKS-REGIONAL
Lloyds TSB Group PLC .................................. UK 513,428 4,690,967 0.7
BANKS-REGIONAL
Mercury Asset Management Group PLC .................... UK 196,698 4,258,657 0.6
INVESTMENT MANAGEMENT
Commercial Union PLC .................................. UK 361,550 3,997,374 0.6
INSURANCE - MULTI-LINE
M & G Group PLC ....................................... UK 155,000 3,264,215 0.5
INVESTMENT MANAGEMENT
General Property Trust ................................ AUSL 1,600,000 2,931,317 0.4
REAL ESTATE
Gerrard & National Holdings PLC ....................... UK 375,880 2,122,051 0.3
SECURITIES BROKER
National Australia Bank Ltd. .......................... AUSL 125,000 1,710,260 0.2
BANKS-REGIONAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Realty Development Corp., Ltd. "A" .................... HK 5,000 $ 18,848 --
REAL ESTATE
------------
184,068,481
------------
Energy (13.9%)
Elektrowatt AG ........................................ SWTZ 49,068 17,564,758 2.5
ELECTRICAL & GAS UTILITIES
Royal Dutch Petroleum Co. ............................. NETH 92,960 16,621,481 2.4
OIL
Exxon Corp. ........................................... US 182,600 10,339,725 1.5
OIL
Mobil Corp. ........................................... US 63,800 8,294,000 1.2
OIL
Electrabel S.A. ....................................... BEL 34,760 7,899,558 1.1
ELECTRICAL & GAS UTILITIES
Shell Transport & Trading Co., PLC .................... UK 373,900 6,602,155 0.9
OIL
RWE AG ................................................ GER 134,620 5,599,445 0.8
ELECTRICAL & GAS UTILITIES
PG&E Corp. ............................................ US 220,000 5,280,000 0.8
ELECTRICAL & GAS UTILITIES
Elf Aquitaine ......................................... FR 52,475 5,088,812 0.7
OIL
Reunies Electrobel & Tractebel S.A. ................... BEL 11,587 4,961,688 0.7
ELECTRICAL & GAS UTILITIES
Groupe Bruxelles Lambert S.A. ......................... BEL 31,025 4,558,669 0.7
OIL
Santos Ltd. ........................................... AUSL 907,472 3,537,351 0.6
OIL
------------
96,347,642
------------
Services (7.4%)
Telecom Corporation of New Zealand Limited: ........... NZ -- -- 1.9
TELEPHONE NETWORKS
Common .............................................. -- 2,614,200 11,719,702 --
ADR{\/} ............................................. -- 38,000 1,368,000 --
McGraw-Hill, Inc. ..................................... US 162,000 8,241,750 1.2
BROADCASTING & PUBLISHING
United News & Media PLC ............................... UK 639,291 7,793,074 1.1
BROADCASTING & PUBLISHING
Woolworths Ltd. ....................................... AUSL 2,630,000 7,750,370 1.1
RETAILERS-OTHER
Royal PTT Nederland N.V. .............................. NETH 112,735 4,005,988 0.6
TELEPHONE NETWORKS
Cognizant Corp. ....................................... US 109,800 3,582,225 0.5
CONSUMER SERVICES
EMI Group PLC ......................................... UK 158,900 3,150,714 0.5
LEISURE & TOURISM
Dun & Bradstreet Corp. ................................ US 109,800 2,703,825 0.4
BROADCASTING & PUBLISHING
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
ACNielsen Corp.-/- .................................... US 36,600 $ 549,000 0.1
CONSUMER SERVICES
------------
50,864,648
------------
Materials/Basic Industry (6.4%)
BASF AG-/- ............................................ GER 234,000 9,030,156 1.3
CHEMICALS
CSR Ltd. .............................................. AUSL 2,100,000 7,760,193 1.1
BUILDING MATERIALS & COMPONENTS
Akzo Nobel N.V. ....................................... NETH 58,950 7,598,054 1.1
CHEMICALS
Solvay S.A. "A" ....................................... BEL 11,754 7,039,899 1.0
CHEMICALS
Monsanto Co. .......................................... US 160,500 6,861,375 1.0
CHEMICALS
RGC Ltd. .............................................. AUSL 1,069,042 3,875,454 0.6
MISC. MATERIALS & COMMODITIES
Sons of Gwalia N.L. ................................... AUSL 471,600 2,077,290 0.3
GOLD
------------
44,242,421
------------
Consumer Non-Durables (5.9%)
Avon Products, Inc. ................................... US 182,000 11,238,500 1.6
PERSONAL CARE/COSMETICS
Philip Morris Cos., Inc. .............................. US 255,000 10,040,625 1.4
FOOD
Universal Corp. ....................................... US 280,500 7,854,000 1.1
TOBACCO
EMAIL Ltd. ............................................ AUSL 2,264,000 7,571,965 1.1
HOUSEHOLD PRODUCTS
Brown-Forman Corp. "B" ................................ US 93,600 4,726,800 0.7
BEVERAGES - ALCOHOLIC
------------
41,431,890
------------
Health Care (4.1%)
Bristol Myers Squibb Co. .............................. US 277,400 18,169,700 2.6
PHARMACEUTICALS
Bayer AG-/- ........................................... GER 258,600 10,293,206 1.5
PHARMACEUTICALS
------------
28,462,906
------------
Capital Goods (3.0%)
General Electric PLC .................................. UK 1,473,000 8,757,347 1.3
AEROSPACE/DEFENSE
Lockheed Martin Corp. ................................. US 69,545 6,224,278 0.9
AEROSPACE/DEFENSE
BICC PLC .............................................. UK 1,559,172 5,821,953 0.8
INDUSTRIAL COMPONENTS
------------
20,803,578
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (1.5%)
GKN PLC ............................................... UK 685,800 $ 10,565,297 1.5
------------
AUTO PARTS
Multi-Industry/Miscellaneous (1.3%)
VEBA AG ............................................... GER 170,200 8,770,560 1.3
------------
CONGLOMERATE
Technology (0.3%)
Alcatel Alsthom Compagnie Generale d'Electricite ...... FR 21,860 2,430,762 0.3
TELECOM TECHNOLOGY
------------ -----
TOTAL EQUITY INVESTMENTS (cost $329,172,628) ............ 487,988,185 70.4
------------ -----
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (21.1%)
Australia (1.2%)
Australian Government, 8.75% due 8/15/08 ............ AUD 10,425,000 8,632,139 1.2
Canada (1.2%)
Canadian Government, 8.75% due 12/1/05 .............. CAD 10,620,000 8,679,552 1.2
Denmark (1.0%)
Kingdom of Denmark, 7% due 11/15/07 ................. DKK 45,200,000 6,999,803 1.0
Germany (4.1%)
Deutschland Republic, 6.75% due 4/22/03 ............. DEM 23,000,000 14,371,346 2.1
Treuhandanstalt:
6.625% due 7/9/03 ................................. DEM 16,060,000 9,960,726 1.4
6.375% due 7/1/99 ................................. DEM 7,000,000 4,259,850 0.6
Italy (2.2%)
Italian Buoni Poliennali del Tesoro (BTPS):
6% due 2/15/00 .................................... ITL 18,365,000,000 10,547,894 1.5
10.5% due 9/01/05 ................................. ITL 6,725,000,000 4,624,934 0.7
New Zealand (0.4%)
New Zealand Government, 8% due 4/15/04 .............. NZD 4,440,000 3,090,895 0.4
Spain (1.4%)
Kingdom of Spain, 10.3% due 6/15/02 ................. ESP 1,162,430,000 9,393,141 1.4
United Kingdom (4.1%)
United Kingdom Treasury:
7% due 6/7/02 ..................................... GBP 12,375,000 19,934,215 2.9
6% due 8/10/99 .................................... GBP 3,800,000 6,053,887 0.9
8.5% due 7/16/07 .................................. GBP 1,050,000 1,814,176 0.3
United States (5.5%)
United States Treasury:
6% due 2/15/26 .................................... USD 12,940,000 11,310,369 1.6
6.25% due 8/15/23 ................................. USD 9,075,000 8,211,988 1.2
7.5% due 2/15/05 .................................. USD 8,050,000 8,428,287 1.2
6.5% due 8/15/05 .................................. USD 5,480,000 5,395,124 0.8
5.625% due 2/28/01 ................................ USD 5,120,000 4,968,000 0.7
------------
Total Government & Government Agency Obligations (cost
$149,972,019) .......................................... 146,676,326
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (5.5%)
Germany (2.3%)
Siemens Capital Corp., 8% due 6/24/02+/+ ............ USD 4,710,000 $ 7,001,415 1.0
Commerzbank AG, Convertible Bond, 9.45% due
12/31/00+ .......................................... DEM 4,173,000 5,089,083 0.7
Deutsche Bank AG, 9.00% due 12/31/02+/+ ............. DEM 5,625,000 4,055,459 0.6
United Kingdom (3.2%)
Daily Mail & General Trust, Convertible Bond, 5.75%
due 9/26/03 ........................................ GBP 3,405,000 7,474,121 1.1
MBNA Chester Asset Receivable #3, 6.6% due
11/17/03+ .......................................... GBP 4,500,000 7,302,568 1.1
Land Securities PLC, Convertible Bond, 9.375% due
7/31/04 ............................................ GBP 3,485,000 6,831,119 1.0
------------
Total Corporate Bonds (cost $33,669,053) ................ 37,753,765
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $183,641,072) ...... 184,430,091 26.6
------------ -----
<CAPTION>
UNDERLYING VALUE % OF NET
OPTIONS CURRENCY NOMINAL AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------- -------- --------------- ------------ -------------
<S> <C> <C> <C> <C>
Societe Generale Banque put, strike 14,500, due
11/15/99 (cost $0)-/- ................................ BEF 11,587 121,934 --
------------ -----
BANKS-MONEY CENTER
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated April 30, 1997, with State Street Bank & Trust
Co., due May 1, 1997, for an effective yield of 5.27%,
collateralized by $13,360,000 U.S. Treasury Bonds,
7.25% due 5/15/16 (market value of collateral is
$13,996,806, including accrued interest). (cost
$13,719,008) ......................................... 13,719,008 2.0
------------ -----
TOTAL INVESTMENTS (cost $526,532,708) * ................ 686,259,218 99.0
Other Assets and Liabilities ............................ 7,102,452 1.0
------------ -----
NET ASSETS .............................................. $693,361,670 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
+ The coupon rate shown on floating rate note represents the rate at
period end.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
* For Federal income tax purposes, cost is $527,046,541 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 170,725,767
Unrealized depreciation: (11,513,090)
-------------
Net unrealized appreciation: $ 159,212,677
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at April 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 6.6 1.2 7.8
Belgium (BEL/BEF) .................... 5.1 5.1
Canada (CAN/CAD) ..................... 1.2 1.2
Denmark (DEN/DKK) .................... 1.0 1.0
France (FR/FRF) ...................... 1.0 1.0
Germany (GER/DEM) .................... 7.0 6.4 13.4
Italy (ITLY/ITL) ..................... 2.2 2.2
Netherlands (NETH/NLG) ............... 10.1 10.1
New Zealand (NZ/NZD) ................. 1.9 0.4 2.3
Spain (SPN/ESP) ...................... 1.4 1.4
Switzerland (SWTZ/CHF) ............... 8.3 8.3
United Kingdom (UK/GBP) .............. 12.8 7.3 20.1
United States & Other (US/USD) ....... 17.6 5.5 3.0 26.1
------ ----- ----- -----
Total ............................... 70.4 26.6 3.0 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $693,361,670.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
(U.S. CONTRACT DELIVERY UNREALIZED
CONTRACTS TO SELL: DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- ------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 26,747,101 1.67700 05/30/97 $ 802,094
French Francs........................... 1,216,483 5.83650 05/06/97 69,051
French Francs........................... 2,451,185 5.66000 05/20/97 75,316
Netherland Guilders..................... 10,834,954 1.88278 05/14/97 371,879
Swiss Francs............................ 12,022,039 1.44625 06/19/97 147,365
------------ ------------
Total Contracts to Sell (Receivable
amount $54,737,467).................. 53,271,762 1,465,705
------------ ------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 7.68%.
Total Open Forward Foreign Currency
Contracts............................ $1,465,705
------------
------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $526,532,708) (Note 1)............................... $686,259,218
U.S. currency....................................................................... $ 14
Foreign currencies (cost $854)...................................................... 850 864
---------
Receivable for securities sold................................................................. 19,317,779
Interest and interest withholding tax reclaims receivable...................................... 4,472,161
Dividends and dividend withholding tax reclaims receivable..................................... 1,937,122
Receivable for open forward foreign currency contracts (Note 1)................................ 1,465,705
Receivable for Fund shares sold................................................................ 1,152,842
Miscellaneous receivable....................................................................... 733
Cash held as collateral for securities loaned (Note 1)......................................... 94,350,961
-----------
Total assets................................................................................. 808,957,385
-----------
Liabilities:
Payable for securities purchased............................................................... 19,119,880
Payable for Fund shares repurchased (Note 2)................................................... 910,180
Payable for investment management and administration fees (Note 2)............................. 534,426
Payable for service and distribution expenses (Note 2)......................................... 405,820
Payable for printing and postage expenses...................................................... 92,246
Payable for transfer agent fees (Note 2)....................................................... 89,543
Payable for professional fees.................................................................. 34,991
Payable for custodian fees (Note 1)............................................................ 27,042
Payable for fund accounting fees (Note 2)...................................................... 11,852
Payable for registration and filing fees....................................................... 8,792
Payable for Directors' fees and expenses (Note 2).............................................. 5,170
Other accrued expenses......................................................................... 4,812
Collateral for securities loaned (Note 1)...................................................... 94,350,961
-----------
Total liabilities............................................................................ 115,595,715
-----------
Net assets....................................................................................... $693,361,670
-----------
-----------
Class A:
Net asset value and redemption price per share ($279,831,760 DIVIDED BY 37,353,227 shares
outstanding).................................................................................... $ 7.49
-----------
-----------
Maximum offering price per share (100/95.25 of $7.49) *.......................................... $ 7.86
-----------
-----------
Class B:+
Net asset value and offering price per share ($409,920,934 DIVIDED BY 54,712,258 shares
outstanding).................................................................................... $ 7.49
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($3,608,976 DIVIDED BY
481,866 shares outstanding)..................................................................... $ 7.49
-----------
-----------
Net assets consist of:
Paid in capital (Note 4)....................................................................... $528,913,188
Distributions in excess of net investment income............................................... (1,900,754)
Accumulated net realized gain on investments and foreign currency transactions................. 5,359,651
Net unrealized appreciation on translation of assets and liabilities in foreign currencies..... 1,263,075
Net unrealized appreciation of investments..................................................... 159,726,510
-----------
Total -- representing net assets applicable to capital shares outstanding........................ $693,361,670
-----------
-----------
<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.
F7
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF OPERATIONS
Six months ended April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Interest income............................................................................ $7,282,789
Dividend income (net of foreign withholding tax of $449,058)............................... 6,051,950
Other income............................................................................... 43,134
----------
Total investment income.................................................................. 13,377,873
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 3,269,268
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 481,005
Class B...................................................................... 1,967,968 2,448,973
----------
Transfer agent fees (Note 2)............................................................... 637,301
Custodian fees (Note 1).................................................................... 230,449
Printing and postage expenses.............................................................. 109,505
Fund accounting fees (Note 2).............................................................. 84,399
Registration and filing fees............................................................... 40,227
Audit fees................................................................................. 26,245
Directors' fees and expenses (Note 2)...................................................... 7,421
Legal fees................................................................................. 6,944
Other expenses (Note 1).................................................................... 20,206
----------
Total expenses before reductions......................................................... 6,880,938
----------
Expense reductions (Note 1 & 5)........................................................ (330,563)
----------
Total net expenses....................................................................... 6,550,375
----------
Net investment income........................................................................ 6,827,498
----------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments............................................... 5,035,077
Net realized gain on foreign currency transactions............................. 8,839,377
----------
Net realized gain during the period...................................................... 13,874,454
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies......................................................... (391,492)
Net change in unrealized appreciation of investments........................... 24,896,461
----------
Net unrealized appreciation during the period............................................ 24,504,969
----------
Net realized and unrealized gain on investments and foreign currencies....................... 38,379,423
----------
Net increase in net assets resulting from operations......................................... $45,206,921
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996
------------- ------------
Increase in net assets
Operations:
Net investment income...................................................... $ 6,827,498 $ 18,175,444
Net realized gain on investments and foreign currency transactions......... 13,874,454 15,732,409
Net change in unrealized appreciation on translation of assets and
liabilities in foreign currencies......................................... (391,492) 1,957,055
Net change in unrealized appreciation of investments....................... 24,896,461 62,236,320
------------- ------------
Net increase in net assets resulting from operations..................... 45,206,921 98,101,228
------------- ------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income................................................. (3,129,343) (9,963,848)
From net realized gain on investments...................................... -- (1,766,763)
In excess of net investment income......................................... (1,217,383)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................................................. (3,625,627) (10,894,963)
From net realized gain on investments...................................... -- (2,225,842)
In excess of net investment income......................................... (1,410,447)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income................................................. (72,528) (65,132)
From net realized gain on investments...................................... -- (5,890)
In excess of net investment income......................................... (28,215)
------------- ------------
Total distributions...................................................... (9,483,543) (24,922,438)
------------- ------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested........................... 208,123,202 237,835,679
Decrease from capital shares repurchased................................... (223,739,309) (279,569,655)
------------- ------------
Net decrease from capital share transactions............................. (15,616,107) (41,733,976)
------------- ------------
Total increase in net assets................................................. 20,107,271 31,444,814
Net assets:
Beginning of period........................................................ 673,254,399 641,809,585
------------- ------------
End of period.............................................................. $693,361,670* $673,254,399*
------------- ------------
------------- ------------
* Includes distributions in excess of net investment income/undistributed
net investment income of.................................................. $(1,900,754) $ 755,291
------------- ------------
------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
-------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1997 ----------------------------------------------------------
(UNAUDITED) (D) 1996 1995 1994 1993 (D) 1992
------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 7.11 $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 5.25
------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income................. 0.09 0.22 0.24 0.22 0.24* 0.21*
Net realized and unrealized gain
(loss) on investments................ 0.41 0.82 0.13 (0.03) 1.05 0.10
------------- ---------- ---------- ---------- ---------- ----------
Net increase from investment
operations......................... 0.50 1.04 0.37 0.19 1.29 0.31
------------- ---------- ---------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income............ (0.09) (0.24) (0.22) (0.21) (0.24) (0.14)
From net realized gain on
investments.......................... -- (0.04) (0.01) (0.06) -- (0.14)
In excess of net investment income.... (0.03) -- -- -- -- --
From sources other than net investment
income............................... -- -- -- -- (0.04) --
------------- ---------- ---------- ---------- ---------- ----------
Total distributions................. (0.12) (0.28) (0.23) (0.27) (0.28) (0.28)
------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......... $ 7.49 $ 7.11 $ 6.35 $ 6.21 $ 6.29 $ 5.28
------------- ---------- ---------- ---------- ---------- ----------
------------- ---------- ---------- ---------- ---------- ----------
Total investment return (e)............. 7.03%(a) 16.80% 6.27% 3.14% 25.1% 5.9%
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 279,832 $ 286,203 $ 284,069 $ 317,847 $ 251,428 $ 27,754
Ratio of net investment income to
average net assets..................... 2.40%(b) 3.17% 3.85% 3.30% 3.3%* 4.1%*
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.56%(b) 1.59% 1.70% 1.67% 1.8%* 1.9%*
Without expense reductions............ 1.66%(b) 1.66% 1.74% --%** --%** --%**
Portfolio turnover rate++++............. 63%(b) 39% 83% 117% 24% 53%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0182 $ 0.0139 N/A N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of October 21, 1992 were
reclassified as Class A shares.
++ Commencing October 22, 1992, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.005 and $0.02 for the year ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 1.9% and 2.2%, and the net investment
income to average net assets would have been 3.2% and 3.7% for the
year ended October 31, 1993 and 1992, respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Ratios are not meaningful due to short period of operations of Class B
shares.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(e) Total investment return does not include sales charges.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
--------------------------------------------------------------------------------
SIX MONTHS
ENDED OCTOBER 22, 1992
APRIL 30, YEAR ENDED OCTOBER 31, TO
1997 ---------------------------------------------- OCTOBER 31,
(UNAUDITED) (D) 1996 1995 1994 1993 (D) 1992 (D)
------------- ---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 7.11 $ 6.35 $ 6.21 $ 6.29 $ 5.28 $ 5.29
------------- ---------- ---------- ---------- ---------- -----------------
Income from investment operations:
Net investment income................. 0.06 0.17 0.20 0.18 0.20 0.01
Net realized and unrealized gain
(loss) on investments................ 0.41 0.82 0.13 (0.03) 1.05 (0.02)
------------- ---------- ---------- ---------- ---------- -----------------
Net increase from investment
operations......................... 0.47 0.99 0.33 0.15 1.25 (0.01)
------------- ---------- ---------- ---------- ---------- -----------------
Distributions to shareholders:
From net investment income............ (0.06) (0.20) (0.18) (0.17) (0.20) --
From net realized gain on
investments.......................... -- (0.03) (0.01) (0.06) -- --
In excess of net investment income.... (0.03) -- -- -- -- --
From sources other than net investment
income............................... -- -- -- -- (0.04) --
------------- ---------- ---------- ---------- ---------- -----------------
Total distributions................. (0.09) (0.23) (0.19) (0.23) (0.24) --
------------- ---------- ---------- ---------- ---------- -----------------
Net asset value, end of period.......... $ 7.49 $ 7.11 $ 6.35 $ 6.21 $ 6.29 $ 5.28
------------- ---------- ---------- ---------- ---------- -----------------
------------- ---------- ---------- ---------- ---------- -----------------
Total investment return (e)............. 6.69%(a) 16.06% 5.57% 2.48% 24.3% (0.2)% (a)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 409,921 $ 383,966 $ 356,796 $ 359,242 $ 150,768 $ 280
Ratio of net investment income to
average net assets..................... 1.75%(b) 2.52% 3.20% 2.65% 2.6% N/A(c)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 2.21%(b) 2.24% 2.35% 2.32% 2.5% N/A(c)
Without expense reductions............ 2.31%(b) 2.31% 2.39% --%** --%** --% **(c)
Portfolio turnover rate++++............. 63%(b) 39% 83% 117% 24% 53%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0182 $ 0.0139 N/A N/A N/A N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of October 21, 1992 were
reclassified as Class A shares.
++ Commencing October 22, 1992, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.005 and $0.02 for the year ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 1.9% and 2.2%, and the net investment
income to average net assets would have been 3.2% and 3.7% for the
year ended October 31, 1993 and 1992, respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Ratios are not meaningful due to short period of operations of Class B
shares.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(e) Total investment return does not include sales charges.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
ADVISOR CLASS+++
---------------------------------------
SIX MONTHS JUNE 1,
ENDED 1995
APRIL 30, YEAR ENDED TO
1997 OCTOBER 31, OCTOBER 31,
(UNAUDITED) (D) 1996 1995
------------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 7.10 $ 6.35 $ 6.24
------------- ----------- -----------
Income from investment operations:
Net investment income................. 0.11 0.23 0.11
Net realized and unrealized gain
(loss) on investments................ 0.41 0.82 0.13
------------- ----------- -----------
Net increase from investment
operations......................... 0.52 1.05 0.24
------------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.11) (0.26) (0.13)
From net realized gain on
investments.......................... -- (0.04) --
In excess of net investment income.... (0.02) -- --
From sources other than net investment
income............................... -- -- --
------------- ----------- -----------
Total distributions................. (0.13) (0.30) (0.13)
------------- ----------- -----------
Net asset value, end of period.......... $ 7.49 $ 7.10 $ 6.35
------------- ----------- -----------
------------- ----------- -----------
Total investment return (e)............. 7.20%(a) 17.19% 3.83%(a)
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 3,609 $ 3,085 $ 944
Ratio of net investment income to
average net assets..................... 2.75%(b) 3.52% 4.20%(b)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 &
5)................................... 1.21%(b) 1.24% 1.35%(b)
Without expense reductions............ 1.31%(b) 1.31% 1.39%(b)
Portfolio turnover rate++++............. 63%(b) 39% 83%
Average commission rate per share paid
on portfolio transactions++++.......... $ 0.0182 $ 0.0139 N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of October 21, 1992 were
reclassified as Class A shares.
++ Commencing October 22, 1992, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing among the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.005 and $0.02 for the year ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 1.9% and 2.2%, and the net investment
income to average net assets would have been 3.2% and 3.7% for the
year ended October 31, 1993 and 1992, respectively.
* * Calculation of "Ratio of expenses to average net assets" was made
without considering the effect of expense reductions, if any.
(a) Not annualized.
(b) Annualized.
(c) Ratios are not meaningful due to short period of operations of Class B
shares.
(d) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(e) Total investment return does not include sales charges.
N/A Not Applicable.
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Growth & Income Fund ("Fund") is a separate series of G.T. Investment
Funds, Inc. ("Company"). The Company is organized as a Maryland corporation and
is registered under the Investment Company Act of 1940, as amended ("1940 Act"),
as an open-end management investment company. The Company has twelve series of
shares in operation, each series corresponding to a distinct portfolio of
investments.
The Fund offers Class A, Class B, and Advisor Class shares, each of which has
equal rights as to assets and voting privileges except that 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
Fund deems it appropriate, prices obtained for the day of valuation from a bond
pricing service will be used. Short-term investments are valued at amortized
cost adjusted for foreign exchange translation and market fluctuations, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Directors.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Directors.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Fund after translation
to U.S. dollars based on the exchange rates on that day. The cost of each
security is determined using historical exchange rates. Income and withholding
taxes are translated at prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at period
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, United States government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund under each
agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss
F13
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
equal to the difference between the value at the time it was opened and the
value at the time it was closed. Forward Contracts involve market risk in excess
of the amounts shown in the Fund's "Statement of Assets and Liabilities." The
Fund could be exposed to risk if a counter party 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 security
and, for a put, requires the Fund to set aside cash, U.S. government securities,
or other liquid securities in an amount not less than the exercise price or
otherwise provide adequate cover at all times while the put option is
outstanding. The Fund may use options to manage its exposure to the stock or
bond market and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock or bond
market and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to collection, income is recorded net of all
withholding tax with any rebate recorded when received. The Fund may trade
securities on other than normal settlement terms. This may increase the risk if
the other party to the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
At April 30, 1997, stocks with an aggregate value of approximately $90,261,606
were on loan to brokers. The loans were secured by cash collateral of
$94,350,961. For international securities, cash collateral is received by the
Fund against loaned securities in an amount at least equal to 105% of the market
value of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 103% of the market value of the loaned
securities during the period of the loan. For domestic securities, cash
collateral is received by the Fund against loaned securities in an amount at
least equal to 102% of the market value of the loaned securities at the
inception of each loan. This collateral must be maintained at not less than 100%
of the market value of the loaned securities during the period of the loan. For
the period ended April 30, 1997, the Fund received $313,287 of income from
securities lending. Fees received from securities loaned were used to reduce the
Fund's custodian and administrative expenses.
F14
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
(I) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carryforward of
$6,939,210, which expires in 2003.
(J) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investment of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the price of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) INDEXED SECURITIES
The Fund may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(M) RESTRICTED SECURITIES
The Fund is permitted to invest in privately placed restricted securities. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
(N) LINE OF CREDIT
The Fund, along with certain other funds advised by the Manager, has a line of
credit with the Bank of Boston. The arrangement with the bank allows the Fund to
borrow an aggregate maximum amount of $100,000,000. The Fund is limited to
borrowing up to 33 1/3% of the value of the Fund's total assets. On April 30,
1997, the Fund had no loans outstanding. For the six months ended April 30,
1997, the average outstanding daily balance of bank loans (based on the number
of days the loans were outstanding) for the Fund was $4,000,000. The average
interest rate for the Fund was 6.38%. Interest incurred on this loan for the
period ended April 30, 1997 was $3,803, incuded in "Other Expenses" on the
Statement of Operations.
2. RELATED PARTIES
Chancellor LGT Asset Management, Inc., is the Fund's investment manager and
administrator. The Fund pays investment management and administration fees to
the Manager at the annualized rate of 0.975% on the first $500 million of
average daily net assets of the Fund; 0.95% on the next $500 million; 0.925% on
the next $500 million and 0.90% on amounts thereafter. These fees are computed
daily and paid monthly.
GT Global, Inc. ("GT Global"), an affiliate of the Manager, serves as the Fund's
distributor. The Fund offers Class A, Class B, and Advisor Class shares for
purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended April 30, 1997, GT Global retained $31,330
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 $32 for the period ended April 30, 1997. GT Global also makes ongoing
shareholder servicing and trail commission payments to dealers whose clients
hold Class A shares.
Class B shares are not subject to initial sales charges. When Class B shares are
sold, GT Global from its own resources pays commissions to dealers through which
the sales are made. Certain redemptions of Class B shares made within six years
of purchase are subject to CDSCs, in accordance with the Fund's current
prospectus. For the period ended April 30, 1997, GT Global collected CDSCs in
the amount of $583,136. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.35% of the average daily net assets of the Fund's
Class A shares, less any amounts paid by the Fund as the aforementioned service
fee, for GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT Global is reimbursed under the Class A Plan will have
been incurred within one year of such reimbursement.
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may
F15
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
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 1.85%, 2.50%, and 1.50% of the average
daily net assets of the Fund's Class A, Class B, and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by 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 result according to the Fund's average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of 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 period ended April 30, 1997, purchases and sales of investment
securities by the Fund, other than short-term investments and U.S. government
obligations, aggregated $197,631,174 and $198,603,917, respectively. Purchases
and sales of U.S. government obligations were $14,823,006 and $9,932,934,
respectively, for the period ended April 30, 1997.
4. CAPITAL SHARES
At April 30, 1997, there were 6,000,000,000 shares of the Company's common stock
authorized, at $0.0001 par value. Of this amount, 200,000,000 were classified as
shares of the Fund; 400,000,000 were classified as shares of GT Global
Government Income Fund; 200,000,000 were classified as shares of GT Global
Health Care Fund; 200,000,000 were classified as shares of GT Global Strategic
Income Fund; 200,000,000 were classified as shares of GT Global Currency Fund
(inactive); 200,000,000 were classified as shares of GT Global Latin America
Growth Fund; 200,000,000 were classified as shares of GT Global Small Companies
Fund (inactive); 400,000,000 were classified as shares of GT Global
Telecommunications Fund; 200,000,000 were classified as shares of GT Global
Emerging Markets Fund; 200,000,000 were classified as shares of GT Global
Financial Services Fund; 200,000,000 were classified as shares of GT Global
Natural Resources Fund; 200,000,000 were classified as shares of GT Global
Infrastructure Fund; 200,000,000 were classified as shares of GT Global High
Income Fund; and 200,000,000 were classified as shares of GT Global Consumer
Products and Services Fund. The shares of each of the foregoing series of the
Company were divided equally into two classes, designated Class A and Class B
common stock. With respect to the issuance of Advisor Class shares, 100,000,000
shares were classified as shares of each of the fourteen series of the Company
and designated as Advisor Class common stock. 1,400,000,000 shares remain
unclassified. Transactions in capital shares of the Fund were as follows:
F16
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
------------------------- --------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 18,987,592 $139,787,802 21,196,018 $ 143,350,526
Shares issued in connection with
reinvestment of distributions......... 503,134 3,669,461 1,500,319 9,894,388
----------- ------------ ----------- -------------
19,490,726 143,457,263 22,696,337 153,244,914
Shares repurchased...................... (22,393,401) (164,865,489) (27,157,086) (182,477,096)
----------- ------------ ----------- -------------
Net decrease............................ (2,902,675) $(21,408,226) (4,460,749) $ (29,232,182)
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
------------------------- --------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 6,453,059 $ 47,726,191 9,561,545 $ 63,970,280
Shares issued in connection with
reinvestment of distributions......... 565,478 4,127,655 1,656,409 10,934,244
----------- ------------ ----------- -------------
7,018,537 51,853,846 11,217,954 74,904,524
Shares repurchased...................... (6,300,128) (46,388,475) (13,373,837) (89,395,191)
----------- ------------ ----------- -------------
Net increase (decrease)................. 718,409 $ 5,465,371 (2,155,883) $ (14,490,667)
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
------------------------- --------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Shares sold............................. 1,732,589 $ 12,773,536 1,416,928 $ 9,616,882
Shares issued in connection with
reinvestment of distributions......... 5,302 38,557 10,469 69,359
----------- ------------ ----------- -------------
1,737,891 12,812,093 1,427,397 9,686,241
Shares repurchased...................... (1,690,316) (12,485,345) (1,141,817) (7,697,368)
----------- ------------ ----------- -------------
Net increase............................ 47,575 $ 326,748 285,580 $ 1,988,873
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
5. EXPENSE REDUCTIONS
The Manager directed certain portfolio trades to brokers who paid a portion of
the Fund's expenses. For the period ended April 30, 1997, the Fund's expenses
were reduced by $17,276 under these arrangements.
F17
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL GROWTH & INCOME FUND
GT GLOBAL FUNDS
GT GLOBAL OFFERS A BROAD RANGE OF FUNDS TO COMPLEMENT MANY INVESTORS'
PORTFOLIOS. FOR MORE INFORMATION AND A PROSPECTUS ON ANY OF THE GT GLOBAL
FUNDS, PLEASE CONTACT YOUR INVESTMENT ADVISOR OR CALL GT GLOBAL DIRECTLY AT
1-800-824-1580. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION, INCLUDING
CHARGES, EXPENSES AND THE RISKS OF GLOBAL AND EMERGING MARKET INVESTING.
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 FUNDS
GT GLOBAL CONSUMER PRODUCTS AND SERVICES FUND
Focuses on worldwide opportunities from the demand for consumer products and
services
GT GLOBAL HEALTH CARE FUND
Invests in growing health care industries worldwide
GT GLOBAL FINANCIAL SERVICES FUND
Focuses on the worldwide opportunities from the demand for financial services
and products
GT GLOBAL INFRASTRUCTURE FUND
Seeks companies that build, improve or maintain 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 MID CAP GROWTH FUND
Concentrates on 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 securities
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
GT GLOBAL FLOATING RATE FUND
Invests primarily in senior secured floating rate loans that have the potential
to achieve a high level of current income
MONEY MARKET FUND
GT GLOBAL DOLLAR FUND
Invests in high quality, U.S. dollar-denominated money market securities
worldwide for stability and preservation of capital
[LOGO]
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS.
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL GROWTH & INCOME FUND
G&ISAR706079M.323
