<PAGE>
CHANCELLOR LGT
ASSET MANAGEMENT
OVER 25 YEARS
OF INVESTING
WORLDWIDE
GT GLOBAL
LATIN AMERICA
GROWTH 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
Report of Independent
Accountants.......... F1
Financial
Statements........... F2
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 LATIN AMERICA GROWTH 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
1
<PAGE>
[PICTURE]
INVESTMENT OBJECTIVE
Seeks capital appreciation by investing primarily in securities of a broad
range of Latin American issuers.
GT GLOBAL LATIN AMERICA GROWTH FUND
PERFORMANCE SUMMARY
MSCI Emerging IFC Investable
Latin America Global Latin America Latin America
8/13/91 10000 10000 9525
11079 11144 9952
10995 10979 10085
11789 12344 10965
11110 11866 10771
12582 13566 11421
14614 15818 12892
15986 16700 13658
17163 16743 13665
17149 16937 13893
17417 17012 14014
14150 13717 11864
14403 13810 11891
13266 13055 11025
12858 12498 10131
13849 13052 10474
13888 12960 10648
14724 14035 11156
14416 13624 11200
14302 13492 11164
15350 14641 11810
14620 14100 11628
14845 14289 11773
15814 15078 12100
16273 15510 12499
17674 16868 13494
17902 17143 13668
18553 18302 14357
19840 19700 15047
22423 22561 17063
25938 25590 18958
25087 24426 18730
23303 22789 17454
21544 21117 15588
22771 22221 15972
21242 20516 15131
23090 22479 16326
26834 26189 19076
6/30/94 27916 27352 19828
26543 25754 19253
25793 25304 19150
21597 20449 15930
19130 17197 13279
16244 14704 11784
15695 14264 10997
18027 16506 12484
18378 16549 12547
18684 16895 12862
19340 17801 13373
19578 18052 13554
19389 17821 13176
17785 16123 12099
18101 16681 12052
18674 17003 12531
20606 18602 13672
19420 17619 12990
19674 17902 13347
20753 18844 13862
21410 19337 14313
21941 19681 14266
21071 18813 13577
21677 19324 14020
22158 19698 14392
21932 19330 14218
22118 19417 14353
22776 19930 14662
24991 21766 15541
26636 23189 16333
26232 22943 16056
4/30/97 27507 23901 16301
The chart above shows the performance of the GT Global Latin America Growth
Fund, Class A shares, since the Fund's inception, versus the various indices.
This represents a cumulative return of 63.01% and an average annual total
return of 8.93% for the Fund. The chart assumes a hypothetical $10,000
initial investment in the Fund's Class A shares and reflects all Fund
expenses and the maximum 4.75% sales charge. A $10,000 investment in the
Fund's Class B shares at inception on April 1, 1993, would have been valued
at $13,367 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 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 $13,111 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) 17.60 3.25 9.86 12.01 2.25 8.93
Class B(3) 17.10 N/A 7.77 12.10 N/A 7.37
Advisor Class(4) 18.22 N/A 15.20 N/A N/A N/A
</TABLE>
HISTORICAL PERFORMANCE%(2)
ANNUAL RETURNS (PER CALENDAR YEAR)
<TABLE>
<CAPTION>
1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C>
Class A 19.91(3) -2.3 52.94 -6.64 -21.34 17.00
Class B N/A N/A 44.283 -7.12 -21.70 16.47
</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 August 13, 1991; Class B shares commenced on
April 1, 1993.
(4) The Fund began offering Advisor Class shares on June 1, 1995. Advisor Class
shares are not sold directly to the general public and are only available
through certain employee benefit plans, financial institutions and other
entities that have entered into specific agreements with GT Global. Please
see the "Alternative Purchase Plan" section in the Fund's prospectus.
The above data represent past performance of the Fund's shares, which does not
guarantee future results. The investment return and principal value of an
investment in the Fund will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
INTERVIEW WITH THE MANAGEMENT TEAM
Q HOW DID THE FUND PERFORM?
A Political and economic reforms, positive liquidity and increased
privatization have set the stage for a comeback in Latin American equity
markets. For the six months to April 30, 1997, total return for the Fund's
Class A shares was 14.65% (9.21% including the maximum 4.75% sales charge),
and 14.40% for Class B shares (9.40% including the maximum 5% contingent
deferred sales charge). The Morgan Stanley Capital International (MSCI)
Emerging Latin America Index returned 25.42%, and the International Financial
Corp. (IFC) Investable Latin America Index(5) returned 23.65% over the same
period.
Relative to the IFC Index, the Fund suffered largely as a result of its
underweighted position in Brazil, the region's top-performing market over the
six months, and its security selection in Mexico.
Q WHAT CHANGES ARE YOU IMPLEMENTING WITH RESPECT TO THE FUND'S MANAGEMENT?
A The Fund is undergoing significant restructuring this quarter, in
conjunction with a revamping of our approach to managing emerging market
products. Under the new structure, Latin America Growth Fund managers are
members of a team based in London. The dedicated Latin America analyst team
will also be based in London.
Q WHAT MEASURES HAS THE FUND INTRODUCED TO ATTEMPT TO CONTROL RISK MORE
EFFECTIVELY RELATIVE TO THE INDEX?
A As part of the evolutionary change, risk control guidelines have been
enhanced by creating prescribed tracking error ranges at both the global and
country levels. Stock selection is also more disciplined--stocks are ranked on
our Global Stock Research Database and price targets are established by
country analysts. The use of these rankings is compulsory for the
construction of the country portfolios by the Fund managers. The aim of these
changes is to strengthen control of the total risk run by the Fund relative
to the IFCI benchmark, and, as a result, to maximize the risk adjusted return.
Q HOW HAVE YOU SHIFTED THE FUND'S ALLOCATIONS AS A RESULT?
A Within this new framework, the Fund has increased its weighting in Brazil,
the largest and most liquid market in the region, where positive reform,
momentum and compelling valuations continue to drive the market. The Fund has
also been increasing its holdings in Colombia, where valuations remain
attractive.
Relative to the index, the Fund maintains an underweighted position in
Argentina. We are somewhat wary of Argentina's sensitivity to interest rates
in the U.S., and consider the valuation characteristics uninspiring. In
Chile, earnings prospects are accelerating in the face of falling interest
rates and economic growth, and the Fund has therefore increased its weighting
in this market. In Mexico, stock selection is focusing increasingly on areas
exposed to a potential recovery in domestic demand, such as cement,
construction and retail. Conversely, exporters who benefited from increased
competitiveness in 1995 may find their margins squeezed by a real
appreciation in the peso.
Q IN THE REMAINDER OF 1997, CAN WE EXPECT TO SEE THE TYPE OF RETURNS WE'VE
WITNESSED SO FAR THIS YEAR?
A After the deep trauma of 1995 and the sharp recovery of 1996, we believe
the remainder of 1997 is likely to be dull in comparison. In Mexico, for
example, the strong rates of economic growth seen last year were due to the
recovery from a low base and are likely to moderate somewhat this year.
Inflation and interest rates should continue their gradual fall. Meanwhile,
we expect the recovery to broaden somewhat to include the consumer sector,
which should lead to improvement in the fortunes of selected consumer stocks.
Risks for the rest of this year include the possibility of monthly trade
deficits for the first time since early 1995 and political uncertainty
surrounding mid-year congressional elections.
Capital flows into Brazil remain buoyant and seem likely to be able to
finance that country's gradually growing current account deficits. Progress
on privatization of telephone and electric utilities has been surprisingly
rapid, and expectations are now high. Interest rates have fallen sharply in
the last year and should not be counted on to repeat their performance this
year. Inflation is estimated to be well below 10% in 1997, with the currency
acting as an anchor on the economy.
In Argentina we expect further consolidation of the economic recovery that
began in early
CONTINUED P.4
(5) The MSCI Emerging Latin America and IFC Investable Latin America indices
are market value-weighted averages of companies listed in Argentina, Brazil,
Chile, Colombia, Mexico, Peru and Venezuela. Both indices are measured in U.S.
dollars and include the effect of reinvested dividends. The MSCI Emerging Latin
America Index has an aggregate market capitalization of $258 billion, and the
IFC Investable Latin America Index has an aggregate market capitalization of
$267.3 billion. The Fund has changed benchmarks to the IFC Investable Latin
America Index because we feel it presents a more accurate reflection of
investment opportunities for foreign investors.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
3
<PAGE>
1996. As private consumption returns to pre-crisis levels, we anticipate some
deterioration in the trade accounts. We believe banks, flush with cash again
after the rapid growth in deposits over the past two years, should see
increased lending activity and improved earnings, further accelerating the
recovery.
Q WHAT IS YOUR OUTLOOK FOR SOME OF THE SMALLER MARKETS?
A We believe the Chilean economy is close to a trough and growth is likely
to accelerate later in 1997. In Colombia, recently released weak economic
figures may spur authorities to take more proactive steps to reignite growth,
and we anticipate some additional easing of monetary policy over the course
of this year.
Peru remains somewhat constrained by a large external deficit, though the
recent successful hostage rescue might be expected to provide some impetus
for capital flows into that country. We believe Venezuela is likely to see
improvement in the rate of growth of the non-oil economy this year, following
the massive boost to reserves over the past 12 months. Consumer-related
stocks may thus see a substantial boost to reported earnings over the course
of 1997.
KEY MARKETS
MEXICO
The Mexican IFC Investable Index rose 17.51% in U.S. dollar terms over the
six-month period ended April 30, 1997. Volatility fell significantly from the
previous 18 months, which had been dominated by financial crisis and fears of
further devaluation. The relative stability of the past year was demonstrated
by the strength of the peso, which appreciated by about 20% in real terms
over the year, and the continued fall in local interest rates, which dropped
to 20% by the end of the period, having been above 40% a year ago. A healthy
trade balance and strong budget position underpinned an economy growing at
close to 7% for the latter half of 1996.
The missing link remains the consumer, who has not yet seen a recovery in
real wages after sharp declines in the previous 18 months. A further
impediment to a more balanced recovery is the fragile banking system which,
despite numerous government recapitalization programs and bailouts, remains
stuffed with bad loans. It may take several more years before banks are
healthy enough to be a source of new credit for the economy.
BRAZIL
The Brazilian IFC Investable Index rose 39.37% in U.S. dollar terms during
the six months ending April 30, 1997, and was easily the best-performing
major market in the region. Market proxies and potential privatization plays
like Eletrobras and Telebras led the rise. The market remains dominated by
tariff rebalancing and privatization issues, it now being a near certainty
that Telebras will be split up and privatized over the next two years.
Recent political maneuverings by President Cardoso also make it very likely
he will be able to run for reelection in 1998, giving investors confidence
that recent reforms will not be reversed any time soon. The economic picture
is somewhat uneven, however, with many industries continuing to struggle in
the face of a strong exchange rate and others benefiting from continuing
economic stability and falling interest rates. The main clouds on the horizon
are still the yawning fiscal and current account gaps, though falling
interest rates and privatization revenues are mitigating the former, and
micromanagement of trade and monetary policy has prevented the latter from
becoming a burden so far.
CHILE
The Chilean IFC Investable Index increased a mere 4.88% in U.S. dollar terms
over the six months ended April 30, 1997. A liquidity bubble, caused in part
by high commodity prices in 1994 and 1995, continued to work its way through
the economy. Although it has gradually slowed growth over the last six
months, it has finally allowed authorities to begin easing monetary policy
which, in turn, has led to a renewed burst of interest in the stock market.
Earnings prospects in the all-important electricity sector continue to be
weighed down by the drought and fears of overinvestment. After looking
expensive relative to the rest of the region for much of the past three
years, Chilean equities are beginning to appeal to us as good value.
ARGENTINA
Argentine stocks, as measured by the IFC Investable Index, rose 26.36% in
U.S. dollar terms during the six months ended April 30, 1997. Increased
confidence and growth in the financial system have now worked their way
through to the real economy, and estimates for GDP growth are returning to
levels seen prior to the Mexican peso crisis, on the order of 5%-6%. Foreign
reserves remain at record
4
<PAGE>
levels, and deposits in the banking system are growing at a rate of more than
20% p.a. Inflation is still low at 2.3%.
The private pension system is gathering momentum and has become a significant
factor in the domestic equity market. The departure in the middle of last
year of Economy Minister Domingo Cavallo, who had been the architect of the
Convertibility Plan and the keystone of economic reform since 1991, went
surprisingly smoothly. His replacement, Roque Fernandez, has proved himself
to be highly capable and pragmatic. The country remains vulnerable to a
potential rise in U.S. interest rates, however, and to possible trade
restrictions imposed by Brazil, its largest trading partner.
ABOUT THE MANAGEMENT TEAM
DARREN READ -- Global Emerging Markets Portfolio Manager. Mr. Read joined
Chancellor LGT Asset Management in 1997. Formerly, he was a Senior Investment
Analyst for Hermes Investment Management, and a chartered Accountant at
Arthur Andersen. He is a graduate of Cambridge University.
ANDREW BOCZEK -- Portfolio Manager since 1993. Previously, Mr. Boczek was an
Analyst at Continental Bank Corporation and a Research Assistant at the
International Monetary Fund. He received his M.B.A. from the University of
Chicago.
GEOGRAPHIC ALLOCATION OF NET ASSETS%
April 30, 1997 April 30, 1996
Argentina 8.8 8.4
Belize 0.8 --
Bolivia -- 2.6
Brazil 40.3 35.5
Chile 7.9 7.3
Colombia 3.4 0.3
Ecuador -- 0.8
Mexico 30.7 33.8
Panama -- 1.5
Peru 2.0 3.1
United States & Other 2.9 2.0
Venezuela 3.2 4.7
Allocations may change as market conditions change.
LATIN AMERICA AT A GLANCE
STOCK MARKET CAPITALIZATION (US$ BILLION)
APRIL 30, 1997
Brazil 122.2
Mexico 78.1
Chile 41.5
Argentina 29.6
Colombia 11.3
Peru 9.4
Venezuela 6.8
Source: GT Global, Inc., May 1997
REAL GDP GROWTH
1997e
Argentina 6.3%
Brazil 4.0%
Chile 5.8%
Colombia 3.3%
Mexico 3.7%
Peru 5.6%
Venezuela 4.0%
Source: GT Global, Inc., May 1997
INFLATION (CONSUMER PRICE INDEX)
1997e
Argentina 2.3%
Brazil 6.5%
Chile 5.9%
Colombia 19.0%
Mexico 16.2%
Peru 8.8%
Venezuela 40.0%
Source: GT Global, Inc., May 1997
5
<PAGE>
ALLOCATION OF NET ASSETS
Consumer Durables 1.8%
Multi Industry/Misc. 8.5%
Consumer Non-Durables 8.9%
Materials/Basic Industries 14.5%
Finance 15.4%
Energy 23.6%
Services/Other 27.3%
Allocations may change as market conditions change.
A complete listing may be found in the Financial Statements section
of this report.
GT GLOBAL LATIN AMERICA GROWTH FUND
KEY EQUITY HOLDINGS(6)
Country % of
Net Assets
TELEBRAS Operator of Brazil's local and BRAZIL 7.6
long-distance services.
TELEFONOS DE MEXICO Provides national and MEXICO 5.4
international long-distance and local telephone
service to 7,320 communities throughout Mexico.
The company also provides voice, data, image signal
and cellular transmission services.
ELETROBRAS Brazil's state-controlled holding BRAZIL 3.9
company, Electrobras is responsible for the
planning, coordination and financing of the
country's electric utility sector. Its assets
are primarily hydroelectric electricity
generation plants that collectively represent 47%
of the country's generating capacity.
PETROBRAS Produces oil and natural gas liquids BRAZIL 3.6
through approximately 7,258 producing wells and
also produces at sea through its fixed and floating
platforms. Main products are oil products and fuel
alcohol. Petrobras also provides maritime freight
services.
UNIAO BANCOS BRASILEIRAS A major Brazilian bank BRAZIL 2.8
whose services include asset management and foreign
exchange services. The bank also acts as lead manager
for initial and secondary offerings.
TELECOMUNICACOES DO RIO DE JANIERO A subsidiary of BRAZIL 2.8
Telebras, the company provides local, long-distance,
international and mobile telephone services in
Rio de Janiero.
CIFRA Owns and operates discount stores throughout MEXICO 2.7
Mexico that offer groceries, clothing and general
merchandise. The company also owns and operates
restaurants serving Mexican, Italian and international
cuisine. Through a joint venture with Wal-Mart Stores,
the company develops stores in Mexico.
ALFA Operates several companies that manufacture MEXICO 2.6
various products for industries in Mexico, including
steel mills, an insulation manufacturing plant, and
a processor and distributor of meats and dairy products.
The company also has interests in petrochemical plants
producing textiles, and a manufacturer of aluminum
autoparts and products.
KIMBERLY-CLARK DE MEXICO The largest manufacturer MEXICO 2.6
of diapers, tissue paper, notebooks and paper in
Mexico. The company's management is conservative
and has concentrated on lowering costs every year
to retain its competitive position in the marketplace.
BANCO ITAU Through its 1,022 branches in Brazil, BRAZIL 2.6
offices in Argentina, the Cayman Islands, Portugal
and the United States, Banco Itau offers commercial
banking services.
Source: Bloomberg.
(6) There is no assurance the Fund will continue to hold these or any other
securities mentioned in this report.
6
<PAGE>
GT GLOBAL
LATIN AMERICA
GROWTH FUND
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
ANNUAL REPORT
To the Shareholders of GT Global Latin America Growth Fund and Board of
Directors of G.T. Investment Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of GT
Global Latin America Growth Fund, one of the funds organized as a series of G.T.
Investment Funds, Inc., including the portfolio of investments, as of April 30,
1997, the related statement of operations for the six months then ended, the
statements of changes in net assets for the six months then ended and for the
year ended October 31, 1996, and the financial highlights for each of the
periods indicated herein. These financial statements and the financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1997 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of GT
Global Latin America Growth Fund as of April 30, 1997, the results of its
operations for the six months then ended, the changes in its net assets for the
six months then ended and for the year ended October 31, 1996, and the financial
highlights for each of the periods indicated herein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
JUNE 12, 1997
F1
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (28.5%)
Telecomunicacoes Brasileiras S.A. (Telebras): ............. BRZL -- -- 7.6
TELEPHONE NETWORKS
ADR{\/} ................................................. -- 166,300 $ 19,082,924 --
Common .................................................. -- 71,200,000 7,666,353 --
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ........... MEX 459,000 18,933,750 5.4
TELEPHONE NETWORKS
Telecomunicacoes do Rio de Janeiro S.A. (Telerj)
Preferred ................................................ BRZL 58,791,322 9,785,654 2.8
TELEPHONE NETWORKS
Cifra S.A. de C.V.: ....................................... MEX -- -- 2.7
RETAILERS-OTHER
"C" ..................................................... -- 3,294,000 5,061,947 --
"B" - ADR{\/} ........................................... -- 3,000,000 4,380,000 --
"A" ..................................................... -- 161,935 244,769 --
Telecomunicacoes de Sao Paulo S.A. (TELESP) Preferred ..... BRZL 28,079,000 7,974,288 2.3
TELEPHONE NETWORKS
Telefonica de Argentina S.A. "B" - ADR{\/} ................ ARG 233,800 7,773,850 2.2
TELEPHONE NETWORKS
Lojas Americanas S.A. Preferred-/- ........................ BRZL 462,435,469 6,566,462 1.9
RETAILERS-OTHER
Telefonica De Peru - ADR-/- {\/} .......................... PERU 197,200 4,732,800 1.3
TELEPHONE NETWORKS
Compania Anonima Nacional Telefonos de Venezuela (CANTV) -
ADR-/- {\/} .............................................. VENZ 99,200 2,976,000 0.8
TELEPHONE NETWORKS
Compania de Telefonos de Chile S.A. - ADR{\/} ............. CHLE 83,500 2,703,313 0.8
TELEPHONE NETWORKS
TV Filme, Inc.-/- {\/} .................................... BRZL 220,000 2,447,500 0.7
CABLE TELEVISION
------------
100,329,610
------------
Energy (23.6%)
Centrais Eletricas Brasileiras S.A. (Eletrobras): ......... BRZL -- -- 3.9
ELECTRICAL & GAS UTILITIES
"B" Preferred ........................................... -- 20,252,000 9,446,109 --
Common-/- ............................................... -- 9,300,000 4,206,601 --
Petroleo Brasileiro S.A. (Petrobras) Preferred ............ BRZL 60,627,000 12,742,274 3.6
OIL
Perez Companc S.A. "B" .................................... ARG 1,067,620 8,659,264 2.5
OIL
Light - Servicos de Electricidade S.A. .................... BRZL 18,018,000 7,489,144 2.1
ELECTRICAL & GAS UTILITIES
Enron Global Power & Pipelines L.L.C. ..................... US 238,850 7,046,075 2.0
ELECTRICAL & GAS UTILITIES
YPF S.A. - ADR{\/} ........................................ ARG 187,500 5,179,688 1.5
OIL
Enersis S.A. - ADR{::} {\/} ............................... CHLE 157,800 4,970,700 1.4
ELECTRICAL & GAS UTILITIES
Harken Energy Corp.-/- .................................... US 1,054,700 4,812,069 1.4
OIL
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 232,600 4,477,550 1.3
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (CEMIG) - ADR{\/} .... BRZL 87,700 3,946,500 1.1
ELECTRICAL & GAS UTILITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
C.A. La Electricidad de Caracas ........................... VENZ 3,533,421 $ 3,839,396 1.1
ELECTRICAL & GAS UTILITIES
Companhia Brasileira de Petroleo Ipiranga S.A.
Preferred ................................................ BRZL 180,985,000 2,816,722 0.8
ENERGY SOURCES
Chilgener S.A. - ADR{\/} .................................. CHLE 57,000 1,624,500 0.5
ELECTRICAL & GAS UTILITIES
Electricidad de Argentina S.A. - ADR(.) -/- {\/} (::) ..... ARG 110,857 1,507,655 0.4
ELECTRICAL & GAS UTILITIES
------------
82,764,247
------------
Finance (15.4%)
Uniao Bancos Brasileiras "A" Preferred .................... BRZL 265,814,000 9,821,170 2.8
BANKS-MONEY CENTER
Banco Itau S.A. Preferred ................................. BRZL 16,696,000 9,027,835 2.6
BANKS-MONEY CENTER
Banco BHIF - ADR{\/} ...................................... CHLE 243,800 4,815,050 1.4
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 2,193,000 4,701,456 1.3
BANKS-MONEY CENTER
Grupo Financiero Banorte "B"-/- ........................... MEX 4,260,000 4,163,950 1.2
BANKS-MONEY CENTER
Brazil Realty S.A. - 144A ADR{.} {\/} ..................... BRZL 142,000 3,798,500 1.1
REAL ESTATE
Banco Provincial S.A. ..................................... VENZ 1,867,523 2,962,224 0.8
BANKS-MONEY CENTER
Banco Frances del Rio de la Plata S.A. - ADR{\/} .......... ARG 90,700 2,755,013 0.8
BANKS-MONEY CENTER
Banco Industrial Colombiano - ADR{\/} ..................... COL 148,000 2,682,500 0.8
BANKS-MONEY CENTER
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} .................................................. CHLE 123,900 2,230,200 0.6
INVESTMENT MANAGEMENT
Inversiones y Representaciones S.A. (IRSA): ............... ARG -- -- 0.6
REAL ESTATE
GDR{\/} ................................................. -- 47,000 1,645,000 --
Common .................................................. -- 128,500 452,365 --
Seguros Comercial America S.A. "B"-/- ..................... MEX 621,500 1,878,826 0.5
INSURANCE - MULTI-LINE
Banco Wiese - ADR{\/} ..................................... PERU 240,600 1,563,900 0.4
BANKS-MONEY CENTER
First Financial Caribbean Corp. ........................... US 35,700 972,825 0.3
BANKS-MONEY CENTER
Grupo Financiero Bancomer, S.A. de C.V. "B"-/- ............ MEX 1,580,000 553,269 0.2
BANKS-MONEY CENTER
------------
54,024,083
------------
Materials/Basic Industry (14.5%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 2,442,500 9,075,923 2.6
PAPER/PACKAGING
Apasco S.A. ............................................... MEX 1,491,000 8,864,492 2.5
CEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Companhia Siderurgica Nacional S.A.: ...................... BRZL -- -- 2.1
METALS - STEEL
Common .................................................. -- 191,800,000 $ 6,852,061 --
ADR{\/} ................................................. -- 20,000 690,000 --
Companhia Vale do Rio Doce ................................ BRZL -- -- 1.9
METALS - NON-FERROUS
Preferred ............................................... -- 263,900 6,725,306 --
Preferred "B"-/- ........................................ -- 276,400 -- --
Grupo Mexico S.A. "B" ..................................... MEX 1,420,000 4,954,528 1.4
METALS - NON-FERROUS
Industrias Penoles S.A. "CP"-/- ........................... MEX 998,000 4,676,357 1.3
METALS - NON-FERROUS
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ......... CHLE 70,600 4,183,050 1.2
CHEMICALS
Cementos Argos S.A. ....................................... COL 267,198 2,186,280 0.6
CEMENT
White Martins S.A. ........................................ BRZL 571,200 1,944,465 0.5
CHEMICALS
Southern Peru Copper Corp.{\/} ............................ PERU 50,000 881,250 0.2
METALS - NON-FERROUS
Venezolana de Cementos, S.A.C.A. "A" ...................... VENZ 280,561 715,419 0.2
CEMENT
------------
51,749,131
------------
Consumer Non-Durables (8.9%)
Grupo Industrial Bimbo, S.A. de C.V. "A" .................. MEX 1,268,100 7,986,522 2.3
FOOD
Grupo Industrial Maseca, S.A. de C.V. "B" ................. MEX 4,980,000 4,867,716 1.4
FOOD
Fomento Economico Mexicano, S.A. de C.V. "B" .............. MEX 990,500 4,678,643 1.3
BEVERAGES - ALCOHOLIC
Bavaria ................................................... COL 588,500 4,427,309 1.3
BEVERAGES - ALCOHOLIC
Grupo Continental S.A. .................................... MEX 536,000 2,970,651 0.8
BEVERAGES - NON-ALCOHOLIC
Companhia Cervejaria Brahma Preferred ..................... BRZL 3,800,000 2,585,386 0.7
BEVERAGES - ALCOHOLIC
Compania Cervecerias Unidas S.A. - ADR{\/} ................ CHLE 114,100 2,538,725 0.7
BEVERAGES - ALCOHOLIC
Sudamtex de Venezuela "B" - ADR{\/} ....................... VENZ 212,800 691,600 0.2
TEXTILES & APPAREL
Mavesa S.A. - ADR{\/} ..................................... VENZ 71,300 490,188 0.1
FOOD
Cervecer Backus & Johnston "T" ............................ PERU 497,300 433,247 0.1
BEVERAGES - ALCOHOLIC
------------
31,669,987
------------
Multi-Industry/Miscellaneous (8.5%)
Alfa, S.A. de C.V. "A" .................................... MEX 1,691,000 9,286,762 2.6
CONGLOMERATE
San Luis "CPO" ............................................ MEX 1,170,000 6,764,454 1.9
CONGLOMERATE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi-Industry/Miscellaneous (Continued)
Grupo Carso, S.A. de C.V. "A1" ............................ MEX 802,000 $ 4,636,831 1.3
MULTI-INDUSTRY
Commercial Del Plata-/- ................................... ARG 968,560 2,935,030 0.8
CONGLOMERATE
BHI Corp.{\/} ............................................. BLZ 146,800 2,899,300 0.8
CONGLOMERATE
Suramericana de Seguros S.A. .............................. COL 95,034 2,371,828 0.7
CONGLOMERATE
Credicorp Ltd.-/- ......................................... US 72,720 1,527,120 0.4
MULTI-INDUSTRY
------------
30,421,325
------------
Consumer Durables (1.8%)
Brasmotor S.A. Preferred .................................. BRZL 26,757,000 6,416,245 1.8
APPLIANCES & HOUSEHOLD
------------ -----
TOTAL EQUITY INVESTMENTS (cost $321,882,803) ................ 357,374,628 101.2
------------ -----
<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 $550,000 U.S. Treasury Bonds, 7.25% due
5/15/16 (market value of collateral is $576,216, including
accrued interest). (cost $564,083) ...................... 564,083 0.2
------------ -----
TOTAL INVESTMENTS (cost $322,446,886) * .................... 357,938,711 101.4
Other Assets and Liabilities ................................ (4,988,948) (1.4)
------------ -----
NET ASSETS .................................................. $352,949,763 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
(::) Valued in good faith at fair value using procedures approved by the
board of directors (see Note 1 of Notes to Financial Statements).
(.) Restricted securities: At April 30, 1997, the Fund owned the
following restricted security constituting .4% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the restricted
security is as follows:
<TABLE>
<CAPTION>
VALUE
ACQUISITION ACQUISITION PER SHARE
DESCRIPTION DATE SHARES COST (NOTE 1)
- ------------------------------ ----------- ------- ----------- ------------
<S> <C> <C> <C> <C>
Electricidad de Argentina S.A.
- ADR........................ 12/23/93 110,857 $ 1,939,998 $13.60
</TABLE>
{::} See Note 5 of Notes to Financial Statements.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $323,079,403 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 46,167,998
Unrealized depreciation: (11,308,690)
-------------
Net unrealized appreciation: $ 34,859,308
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
PORTFOLIO OF INVESTMENTS (cont'd)
April 30, 1997
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at April 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-----------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ----- ------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) .................. 8.8 8.8
Belize (BLZ/BZD) ..................... 0.8 0.8
Brazil (BRZL/BRL) .................... 40.3 40.3
Chile (CHLE/CLP) ..................... 7.9 7.9
Colombia (COL/COP) ................... 3.4 3.4
Mexico (MEX/MXN) ..................... 30.7 30.7
Peru (PERU/PES) ...................... 2.0 2.0
United States & Other (US/USD) ....... 4.1 (1.2 ) 2.9
Venezuela (VENZ/VEB) ................. 3.2 3.2
----- ------- -----
Total ............................... 101.2 (1.2 ) 100.0
----- ------- -----
----- ------- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $352,949,763.
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF ASSETS
AND LIABILITIES
April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $322,446,886) (Note 1).......................... $357,938,711
U.S. currency.................................................................. $ 371
Foreign currencies (cost $9,937,687)........................................... 9,946,082 9,946,453
---------
Receivable for securities sold............................................................ 5,548,508
Dividends receivable...................................................................... 2,377,825
Receivable for Fund shares sold........................................................... 1,470,715
Miscellaneous receivable.................................................................. 18,420
Cash held as collateral for securities loaned (Note 1).................................... 34,319,915
-----------
Total assets............................................................................ 411,620,547
-----------
Liabilities:
Payable for securities purchased.......................................................... 18,887,120
Payable for loan outstanding (Note 1)..................................................... 4,000,000
Payable for Fund shares repurchased....................................................... 690,439
Payable for investment management and administration fees (Note 2)........................ 281,561
Payable for service and distribution expenses (Note 2).................................... 209,748
Payable for transfer agent fees (Note 2).................................................. 108,357
Payable for printing and postage expenses................................................. 65,929
Payable for professional fees............................................................. 52,039
Payable for custodian fees (Note 1)....................................................... 29,155
Payable for registration and filing fees.................................................. 11,532
Payable for fund accounting fees (Note 2)................................................. 6,373
Payable for Directors' fees and expenses (Note 2)......................................... 3,804
Other accrued expenses.................................................................... 4,812
Collateral for securities loaned (Note 1)................................................. 34,319,915
-----------
Total liabilities....................................................................... 58,670,784
-----------
Net assets.................................................................................. $352,949,763
-----------
-----------
Class A:
Net asset value and redemption price per share ($192,813,361 DIVIDED BY 9,368,337 shares
outstanding)............................................................................... $ 20.58
-----------
-----------
Maximum offering price per share (100/95.25 of $20.58) *.................................... $ 21.61
-----------
-----------
Class B:+
Net asset value and offering price per share ($156,281,135 DIVIDED BY 7,682,761 shares
outstanding)............................................................................... $ 20.34
-----------
-----------
Advisor Class:
Net asset value, offering price per share, and redemption price per share ($3,855,267
DIVIDED BY 186,924 shares outstanding)..................................................... $ 20.62
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................. $367,501,643
Undistributed net investment income....................................................... 872,560
Accumulated net realized loss on investments and foreign currency transactions............ (50,914,779)
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies............................................................................... (1,486)
Net unrealized appreciation of investments................................................ 35,491,825
-----------
Total -- representing net assets applicable to capital shares outstanding................... $352,949,763
-----------
-----------
<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 LATIN AMERICA GROWTH FUND
STATEMENT OF OPERATIONS
Six months ended April 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income: (Note 1)
Dividend income (net of foreign withholding tax of $388,933)............................... $4,510,151
Interest income............................................................................ 319,977
----------
Total investment income.................................................................. 4,830,128
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 1,667,124
Service and distribution expenses: (Note 2)
Class A...................................................................... $ 488,294
Class B...................................................................... 725,755 1,214,049
----------
Transfer agent fees (Note 2)............................................................... 617,524
Custodian fees (Note 1).................................................................... 111,925
Printing and postage expenses.............................................................. 86,880
Fund accounting fees (Note 2).............................................................. 42,747
Audit fees................................................................................. 36,381
Registration and filing fees............................................................... 29,503
Legal fees................................................................................. 8,507
Directors' fees and expenses (Note 2)...................................................... 6,516
Other expenses (Note 1).................................................................... 252,854
----------
Total expenses before reductions......................................................... 4,074,010
----------
Expense reductions (Notes 1 & 6)....................................................... (116,442)
----------
Total net expenses....................................................................... 3,957,568
----------
Net investment income........................................................................ 872,560
----------
Net realized and unrealized gain (loss) on investments and foreign currencies:
(Note 1)
Net realized gain on investments............................................... 50,107,395
Net realized loss on foreign currency transactions............................. (349,155)
----------
Net realized gain during the period...................................................... 49,758,240
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... 30,875
Net change in unrealized appreciation of investments........................... (3,056,465)
----------
Net unrealized depreciation during the period............................................ (3,025,590)
----------
Net realized and unrealized gain on investments and foreign currencies....................... 46,732,650
----------
Net increase in net assets resulting from operations......................................... $47,605,210
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1997 1996
------------- -------------
Increase (Decrease) in net assets
Operations:
Net investment income..................................................... $ 872,560 $ 878,406
Net realized gain (loss) on investments and foreign currency
transactions............................................................. 49,758,240 (4,964,724)
Net change in unrealized appreciation on translation of assets and
liabilities in foreign currencies........................................ 30,875 608,089
Net change in unrealized appreciation (depreciation) of investments....... (3,056,465) 63,484,288
------------- -------------
Net increase in net assets resulting from operations.................... 47,605,210 60,006,059
------------- -------------
Class A:
Distributions to shareholders: (Note 1)
From net investment income................................................ -- (842,524)
In excess of net investment income........................................ -- (381,092)
Class B:
Distributions to shareholders: (Note 1)
From net investment income................................................ -- (93,201)
In excess of net investment income........................................ -- (42,157)
Advisor Class:
Distributions to shareholders: (Note 1)
From net investment income................................................ -- (4,285)
In excess of net investment income........................................ -- (1,938)
------------- -------------
Total distributions..................................................... -- (1,365,197)
------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested.......................... 766,517,809 1,551,794,195
Decrease from capital shares repurchased.................................. (776,765,228) (1,612,200,649)
------------- -------------
Net decrease from capital share transactions............................ (10,247,419) (60,406,454)
------------- -------------
Total increase (decrease) in net assets..................................... 37,357,791 (1,765,592)
Net assets:
Beginning of period....................................................... 315,591,972 317,357,564
------------- -------------
End of period............................................................. $352,949,763* $ 315,591,972*
------------- -------------
------------- -------------
* Includes undistributed net investment income of.......................... $ 872,560 $ 0
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS A+
--------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------------------
1997 (A) 1996 (A) 1995 (A) 1994 (A) 1993 (A)
------------- --------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................ $ 17.95 $ 15.38 $ 26.11 $ 19.78 $ 15.59
------------- --------- ----------- ------------ -----------
Income from investment operations:
Net investment income (loss).............................. 0.08 0.09 0.15 (0.08) 0.18
Net realized and unrealized gain (loss) on investments.... 2.55 2.59 (9.28) 6.75 5.21
------------- --------- ----------- ------------ -----------
Net increase (decrease) from investment operations...... 2.63 2.68 (9.13) 6.67 5.39
------------- --------- ----------- ------------ -----------
Distributions to shareholders:
From net investment income................................ -- (0.08) -- (0.19) (0.12)
From net realized gain on investments..................... -- -- (1.60) (0.15) (1.08)
In excess of net investment income........................ -- (0.03) -- -- --
------------- --------- ----------- ------------ -----------
Total distributions..................................... -- (0.11) (1.60) (0.34) (1.20)
------------- --------- ----------- ------------ -----------
Net asset value, end of period.............................. $ 20.58 $ 17.95 $ 15.38 $ 26.11 $ 19.78
------------- --------- ----------- ------------ -----------
------------- --------- ----------- ------------ -----------
Total investment return (d)................................. 14.65% (b) 17.52% (37.16)% 34.10% 37.1%
Ratios and supplemental data:
Net assets, end of period (in 000's)........................ $192,813 $177,373 $ 182,462 $ 336,960 $129,280
Ratio of net investment income (loss) to average net assets:
With expense reductions................................... 0.72% (c) 0.46% 0.86% (0.29)% 1.3% *
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 6)..................... 2.10% (c) 2.03% 2.11% 2.04% 2.4% *
Without expense reductions................................ 2.17% (c) 2.10% 2.12% --% ** --% **
Portfolio turnover rate++++................................. 186% (c) 101% 125% 155% 112%
Average commission rate per share paid on portfolio
transactions++++........................................... $ 0.0006 $ 0.0005 N/A N/A N/A
<CAPTION>
1992
----------
<S> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................ $ 16.45
----------
Income from investment operations:
Net investment income (loss).............................. 0.25*
Net realized and unrealized gain (loss) on investments.... (0.98)
----------
Net increase (decrease) from investment operations...... (0.73)
----------
Distributions to shareholders:
From net investment income................................ (0.13)
From net realized gain on investments..................... --
In excess of net investment income........................ --
----------
Total distributions..................................... (0.13)
----------
Net asset value, end of period.............................. $ 15.59
----------
----------
Total investment return (d)................................. (4.5)%
Ratios and supplemental data:
Net assets, end of period (in 000's)........................ $ 94,085
Ratio of net investment income (loss) to average net assets:
With expense reductions................................... 1.3%*
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 6)..................... 2.4%*
Without expense reductions................................ --%**
Portfolio turnover rate++++................................. 159%
Average commission rate per share paid on portfolio
transactions++++........................................... N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.02 and $0.04 for the years ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 2.49% and 2.62% and the ratios of net
investment income to average net assets would have been 1.25% and
1.07% for the years ended October 31, 1993 and 1992, respectively.
** Calculation of "Ratio of expenses to net assets" was made without
considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) 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 LATIN AMERICA GROWTH FUND
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout each period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
CLASS B++
----------------------------------------------------------------------
SIX MONTHS APRIL 1, 1993
ENDED YEAR ENDED OCTOBER 31, TO
APRIL 30, --------------------------------------- OCTOBER 31,
1997 (A) 1996 (A) 1995 (A) 1994 (A) 1993 (A)
------------ ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net asset value, beginning of
period....................... $ 17.78 $ 15.21 $ 25.94 $ 19.75 $ 16.26
------------ ----------- ----------- ----------- -------------
Income from investment
operations:
Net investment income
(loss)..................... 0.01 (0.00) 0.06 (0.22) (0.07)
Net realized and unrealized
gain (loss) on
investments................ 2.55 2.59 (9.19) 6.74 3.56
------------ ----------- ----------- ----------- -------------
Net increase (decrease)
from investment
operations............... 2.56 2.59 (9.13) 6.52 3.49
------------ ----------- ----------- ----------- -------------
Distributions to shareholders:
From net investment
income..................... -- (0.01) -- (0.18) --
From net realized gain on
investments................ -- -- (1.60) (0.15) --
In excess of net investment
income..................... -- (0.01) -- -- --
------------ ----------- ----------- ----------- -------------
Total distributions....... -- (0.02) (1.60) (0.33) --
------------ ----------- ----------- ----------- -------------
Net asset value, end of
period....................... $ 20.34 $ 17.78 $ 15.21 $ 25.94 $ 19.75
------------ ----------- ----------- ----------- -------------
------------ ----------- ----------- ----------- -------------
Total investment return (d)... 14.4% (b) 17.02% (37.42)% 33.33% 21.5% (b)
Ratios and supplemental data:
Net assets, end of period (in
000's)....................... $156,281 $ 137,400 $ 134,527 $ 211,673 $ 13,576
Ratio of net investment income
(loss) to average net assets:
With expense reductions..... 0.22% (c) (0.04)% 0.36% (0.79)% (0.7)% (c)
Ratio of expenses to average
net assets:
With expense reductions
(Notes 1 & 6).............. 2.60% (c) 2.53% 2.61% 2.54% 2.9% * (c)
Without expense
reductions................. 2.67% (c) 2.60% 2.62% --%** --% **
Portfolio turnover rate++++... 186% (c) 101% 125% 155% 112%
Average commission rate per
share paid on portfolio
transactions++++............. $ 0.0006 $ 0.0005 N/A N/A N/A
<CAPTION>
ADVISOR CLASS+++
---------------------------------------
YEAR
SIX MONTHS ENDED JUNE 1, 1995
ENDED OCTOBER TO
APRIL 30, 31, OCTOBER 31,
1997 (A) 1996 (A) 1995
----------- --------- -------------
<S> <C> <C> <C>
Per Share Operating
Performance:
Net asset value, beginning of
period....................... $ 17.94 $ 15.40 $ 15.95
----------- --------- -------------
Income from investment
operations:
Net investment income
(loss)..................... 0.13 0.17 0.09
Net realized and unrealized
gain (loss) on
investments................ 2.55 2.58 (0.64)
----------- --------- -------------
Net increase (decrease)
from investment
operations............... 2.68 2.75 (0.55)
----------- --------- -------------
Distributions to shareholders:
From net investment
income..................... -- (0.14) --
From net realized gain on
investments................ -- -- --
In excess of net investment
income..................... -- (0.07) --
----------- --------- -------------
Total distributions....... -- (0.21) --
----------- --------- -------------
Net asset value, end of
period....................... $ 20.62 $ 17.94 $ 15.40
----------- --------- -------------
----------- --------- -------------
Total investment return (d)... 14.94% (b) 18.16% (3.45)% (b)
Ratios and supplemental data:
Net assets, end of period (in
000's)....................... $ 3,855 $ 818 $ 369
Ratio of net investment income
(loss) to average net assets:
With expense reductions..... 1.22% (c) 0.96% 1.36% (c)
Ratio of expenses to average
net assets:
With expense reductions
(Notes 1 & 6).............. 1.60% (c) 1.53% 1.61% (c)
Without expense
reductions................. 1.67% (c) 1.60% 1.62% (c)
Portfolio turnover rate++++... 186% (c) 101% 125%
Average commission rate per
share paid on portfolio
transactions++++............. $0.0006 $0.0005 N/A
</TABLE>
- ----------------
+ All capital shares issued and outstanding as of March 31, 1993 were
reclassified as Class A shares.
++ Commencing April 1, 1993, the Fund began offering Class B shares.
+++ Commencing June 1, 1995, the Fund began offering Advisor Class shares.
++++ Portfolio turnover rate and average commission rate are calculated on
the basis of the Fund as a whole without distinguishing between the
classes of shares issued.
* Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.02 and $0.04 for the years ended October
31, 1993 and 1992, respectively. Without such reimbursements, the
expense ratios would have been 2.49% and 2.62% and the ratios of net
investment income to average net assets would have been 1.25% and
1.07% for the years ended October 31, 1993 and 1992, respectively.
** Calculation of "Ratio of expenses to net assets" was made without
considering the effect of expense reductions, if any.
(a) These selected per share data were calculated based upon weighted
average shares outstanding during the period.
(b) Not annualized.
(c) Annualized.
(d) 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 LATIN AMERICA GROWTH FUND
NOTES TO
FINANCIAL STATEMENTS
April 30, 1997
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Latin America Growth 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
Manager 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 fluctuation,
if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Company's Board of Directors.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Company's Board of Directors.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records are maintained in U.S. dollars. The market values of
foreign securities, currency holdings, and other assets and liabilities are
recorded in the books and records of the Fund after translation to U.S. dollars
based on the exchange rates on that day. The cost of each security is determined
using historical exchange rates. Income and withholding taxes are translated at
prevailing exchange rates when earned or incurred.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Fund, it is the Fund's
policy to always receive, as collateral, United States government securities or
other high quality debt securities of which the value, including accrued
interest, is at least equal to the amount to be repaid to the Fund under each
agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Fund as an unrealized gain or loss. When the
Forward Contract is closed, the Fund records a realized gain or loss
F12
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
equal to the difference between the value at the time it was opened and the
value at the time it was closed. Forward Contracts involve market risk in excess
of the amount shown in the Fund's "Statement of Assets and Liabilities." The
Fund could be exposed to risk if a counterparty is unable to meet the terms of
the contract or if the value of the currency changes unfavorably. The Fund may
enter into Forward Contracts in connection with planned purchases or sales of
securities, or to hedge against adverse fluctuations in exchange rates between
currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When the Fund writes a call or put option, an amount equal to the premium
received is included in the Fund's "Statement of Assets and Liabilities" as an
asset and an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers. If an option expires on its
stipulated expiration date or if the Fund enters into a closing purchase
transaction, a gain or loss is realized without regard to any unrealized gain or
loss on the underlying security, and the liability related to such option is
extinguished. If a written call option is exercised, a gain or loss is realized
from the sale of the underlying security and the proceeds of the sale are
increased by the premium originally received. If a written put option is
exercised, the cost of the underlying security purchased would be decreased by
the premium originally received. The Fund can write options only on a covered
basis, which, for a call, requires that the fund hold the underlying securities
and, for a put, requires the Fund to maintain in a segregated account cash, U.S.
government securities, or other liquid securities in an amount not less than the
exercise price or otherwise provide adequate cover at all times while the put
option is outstanding. The Fund may use options to manage its exposure to the
stock or bond market and to fluctuations in currency values or interest rates.
The premium paid by the Fund for the purchase of a call or put option is
included in the Fund's "Statement of Assets and Liabilities" as an investment
and subsequently "marked-to-market" to reflect the current market value of the
option. If an option which the Fund has purchased expires on the stipulated
expiration date, the Fund realizes a loss in the amount of the cost of the
option. If the Fund enters into a closing sale transaction, the Fund realizes a
gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract the
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
The Fund may use futures contracts to manage its exposure to the stock or bond
market and to fluctuations in currency values or interest rates. At April 30,
1997, the Fund had no open futures contracts.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Interest income is recorded on the
accrual basis. Where a high level of uncertainty exists as to its collection,
income is recorded net of all withholding tax with any rebate recorded when
received. The Fund may trade securities on other than normal settlement terms.
This may increase the risk if the other party to the transaction fails to
deliver and causes the Fund to subsequently invest at less advantageous prices.
(H) TAXES
It is the policy of the Fund to meet the requirements for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended ("Code"). It is also the intention of the Fund to make distributions
sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
Therefore, no provision has been made for Federal taxes on income, capital
gains, or unrealized appreciation of securities held, and excise tax on income
and capital gains. The Fund currently has a capital loss carryforward of
$100,040,502, of which $93,313,175 expires in 2003 and $6,727,327 expires in
2004.
(I) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. Income
and capital gain distributions are determined in accordance with Federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are
F13
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
primarily due to differing treatments of income and gains on various investment
securities held by the Fund and timing differences.
(J) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Fund's investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(K) 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.
(L) 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.
(M) PORTFOLIO SECURITIES LOANED
At April 30, 1997, stocks with an aggregate value of approximately $31,812,483
were on loan to brokers. The loans were secured by cash collateral of
$34,319,915. 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 $72,861 of income from
securities lending. Fees received from securities loaned were used to reduce the
Fund's custodian and administrative expenses.
(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 Funds' total assets. On April 30,
1997, the Fund had $4,000,000 in 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 $11,375,000. The average interest rate for the Fund was 6.41%. Interest
incurred on this loan for the period ended April 30, 1997 was $55,656, included
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% of the first $500 million of
average daily net assets of the Fund; 0.95% of the next $500 million; 0.925% of
the next $500 million and 0.90% on amounts thereafter. These fees are computed
daily and paid monthly.
GT Global Inc. ("GT Global"), an affiliate of the Manager, is the Fund's
distributor. The Fund offers Class A, Class B and Advisor Class shares for
purchase.
Class A shares are subject to initial sales charges imposed at the time of
purchase, in accordance with the schedule included in the Fund's current
prospectus. GT Global collects the sales charges imposed on sales of Class A
shares, and reallows a portion of such charges to dealers through which the
sales are made. For the period ended April 30, 1997, GT Global retained $24,373
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 $282 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 $493,930. In addition, GT Global makes ongoing shareholder
servicing and trail commission payments to dealers whose clients hold Class B
shares.
Pursuant to Rule 12b-1 under the 1940 Act, the Company's Board of Directors has
adopted separate distribution plans with respect to the Fund's Class A shares
("Class A Plan") and Class B shares ("Class B Plan"), pursuant to which the Fund
reimburses GT Global for a portion of its shareholder servicing and distribution
expenses. Under the Class A Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class A shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.50% of the average daily net assets of the Fund's
Class A shares, less any amounts paid by the Fund as the aforementioned service
fee, for GT Global's expenditures incurred in providing services as distributor.
All expenses for which GT Global is reimbursed under the Class A Plan will have
been incurred within one year of such reimbursement.
F14
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
Pursuant to the Fund's Class B Plan, the Fund may pay GT Global a service fee at
the annualized rate of up to 0.25% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in servicing and
maintaining shareholder accounts, and may pay GT Global a distribution fee at
the annualized rate of up to 0.75% of the average daily net assets of the Fund's
Class B shares for GT Global's expenditures incurred in providing services as
distributor. Expenses incurred under the Class B Plan in excess of 1.00%
annually may be carried forward for reimbursement in subsequent years as long as
that Plan continues in effect.
The Manager and GT Global voluntarily have undertaken to limit the Fund's
expenses (exclusive of brokerage commissions, taxes, interest, and extraordinary
expenses) to the maximum annual rate of 2.40%, 2.90%, and 1.90% of the average
net assets of the Fund's Class A, Class B and Advisor Class shares,
respectively. If necessary, this limitation will be effected by waivers by the
Manager of investment management and administration fees, waivers by GT Global
of payments under the Class A Plan and/or Class B Plan and/or reimbursements by
the Manager or GT Global of portions of the Fund's other operating expenses.
GT Global Investor Services, Inc. ("GT Services"), an affiliate of the Manager
and GT Global, is the transfer agent of the Fund. For performing shareholder
servicing, reporting, and general transfer agent services, GT Services receives
an annual maintenance fee of $17.50 per account, a new account fee of $4.00 per
account, a per transaction fee of $1.75 for all transactions other than
exchanges and a per exchange fee of $2.25. GT Services also is reimbursed by the
Fund for its out-of-pocket expenses for such items as postage, forms, telephone
charges, stationery and office supplies.
The Manager is the pricing and accounting agent for the Fund. The monthly fee
for these services to the manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived by
applying 0.03% to the first $5 billion of assets of all registered mutual funds
advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the results according to the Funds average daily net assets.
The Company pays each of its Directors who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year plus $300 for
each meeting of the board or any committee thereof attended by the Director.
3. PURCHASES AND SALES OF SECURITIES
For the period ended April 30, 1997, purchases and sales of investment
securities by the Fund, other than short-term investments, aggregated
$299,650,405 and $301,079,534. There were no purchases or sales of U.S.
government obligations 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 Growth & Income
Fund; 200,000,000 were classified as shares of GT Global Small Companies Fund
(inactive); 200,000,000 were classified as shares of GT Global Natural Resources
Fund; 200,000,000 were classified as shares of GT Global Infrastructure Fund;
400,000,000 were classified as shares of GT Global Telecommunications Fund;
200,000,000 were classified as shares of GT Global Emerging Markets Fund; and
200,000,000 were classified as shares of GT Global Financial Services Fund;
200,000,000 were classified as shares of GT Global High Income Fund; and
200,000,000 were classified as shares of GT Global Consumer Products and
Services Fund. The shares of each of the foregoing series of the Company were
divided equally into two classes, designated Class A and Class B common stock.
With respect to the issuance of Advisor Class shares, 100,000,000 shares were
classified as shares of each of the fourteen series of the Company and
designated as Advisor Class common stock. 1,400,000,000 shares remain
unclassified. Transactions in capital shares of the Fund were as follows:
F15
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
-------------------------- ----------------------------
CLASS A SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 31,276,010 $ 597,017,062 76,364,877 $ 1,304,172,875
Shares issued in connection with
reinvestment of distributions......... -- -- 66,851 1,023,814
----------- ------------- ----------- ---------------
31,276,010 597,017,062 76,431,728 1,305,196,689
Shares repurchased...................... (31,788,845) (609,663,048) (78,414,835) (1,346,357,898)
----------- ------------- ----------- ---------------
Net decrease............................ (512,835) $ (12,645,986) (1,983,107) $ (41,161,209)
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
-------------------------- ----------------------------
CLASS B SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 7,866,456 $ 151,376,659 13,503,991 $ 230,324,732
Shares issued in connection with
reinvestment of distributions......... -- -- 6,914 105,073
----------- ------------- ----------- ---------------
7,866,456 151,376,659 13,510,905 230,429,805
Shares repurchased...................... (7,909,644) (151,808,357) (14,627,921) (250,064,111)
----------- ------------- ----------- ---------------
Net decrease............................ (43,188) $ (431,698) (1,117,016) $ (19,634,306)
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
-------------------------- ----------------------------
ADVISOR CLASS SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------- ----------- ------------- ----------- ---------------
<S> <C> <C> <C> <C>
Shares sold............................. 946,000 $ 18,124,088 932,074 $ 16,161,478
Shares issued in connection with
reinvestment of distributions......... -- -- 408 6,223
----------- ------------- ----------- ---------------
946,000 18,124,088 932,482 16,167,701
Shares repurchased...................... (804,706) (15,293,823) (910,792) (15,778,640)
----------- ------------- ----------- ---------------
Net increase............................ 141,294 $ 2,830,265 21,690 $ 389,061
----------- ------------- ----------- ---------------
----------- ------------- ----------- ---------------
</TABLE>
5. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by the
Fund are defined in the Investment Company Act of 1940 as an affiliated company.
Investments in affiliated companies at April 30, 1997 amounted to $14,165,750,
at value.
Transactions with affiliated companies are as follows:
<TABLE>
<CAPTION>
PURCHASES NET REALIZED DIVIDEND
AFFILIATES COST SALES COST GAIN (LOSS) INCOME
- ---------------------------------------- ---------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Enersis S.A. - ADR...................... $5,346,536 $ 244,512 $ (14,787) $ 75,402
</TABLE>
6. EXPENSE REDUCTIONS
The Manager has 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 $43,581 under these arrangements.
F16
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL LATIN AMERICA GROWTH 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 THEME 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 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.
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[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
DATED MATERIAL
PLEASE EXPEDITE
GT GLOBAL LATIN AMERICA GROWTH FUND
LATSAR706066M.324
