<PAGE> 1
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G. T. G L O B A L F I N A N C I A L S E R V I C E S
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A VARIABLE ANNUITY
ISSUED BY
GENERAL AMERICAN
LIFE INSURANCE
COMPANY
[G.T. LOGO]
G.T. GLOBAL
ALLOCATOR
cover photo goes here
SEMIANNUAL REPORT
June 30, 1995
Bowne of San Francisco - Phone (415) 362-2300 - FAX (415) 362-2424
BPX/F21201 - Proof 12 - 8/22/95 - 11:30
<PAGE> 2
G.T. GLOBAL
ALLOCATOR
TABLE OF CONTENTS
A Message from the Presidents
Reports on the Funds...........1
Funds'
Financial Statements.........F-1
<PAGE> 3
Dear G.T. Global Allocator Contract Owners,
G.T. Global is pleased to present the semiannual report for the G.T. Global
Allocator, a variable annuity contract issued by General American Life Insurance
Co., for the period ended June 30, 1995.
Overall, the first half of 1995 has been a turbulent time for global investors.
The devaluation of the Mexican peso in December of 1994 contributed to
volatility in many markets. During the past few months, however, many Asian and
Latin American markets have strengthened (with the exception of Japan). We
believe Latin American markets have stabilized significantly, as they have
demonstrated their commitment to fundamental reform. Global bond markets have
continued the rally they began in 1994, and the U.S. stock market has surpassed
its previous highs.
While the markets will always experience ups and downs, one thing doesn't
change: our commitment to offer excellent product value backed by quality
service. Our latest step in keeping that pledge came on January 31, 1995, with
the addition of the G.T. Global: Variable Infrastructure Fund and G.T. Global:
Variable Natural Resources Fund to the list of investment opportunities.
Regardless of short-term market changes, we urge you to remember three keys to
overall investment success:
- Invest for the long term.
- Understand your own risk tolerance.
- Work with an investment professional to plan your portfolio accordingly.
Thank you for your investment in the G.T. Global Variable Investment Funds. We
appreciate the opportunity to help you meet your investment needs.
/s/ David A. Minella /s/ Richard A. Liddy
DAVID A. MINELLA RICHARD A. LIDDY
President CEO
G.T. Global Financial Services, Inc. General American Life Insurance
Company
July 28, 1995
1
<PAGE> 4
G.T. GLOBAL:
VARIABLE STRATEGIC INCOME FUND
REPORT ON THE FUND
Total return for the Fund over the six-month period ending June 30, 1995, was
9.84%. Over the same period, the Salomon Brothers World Government Bond Index(1)
returned 16.85% and the Salomon Brothers Brady Bond Index(2) returned 8.74%.
Although core global bond markets rallied, the Fund maintained a significant
position in emerging market debt, which underperformed investment-grade
government securities. In anticipation of a rebound in the dollar, the Fund
employed foreign currency hedges (as provided for in the prospectus) which
prevented the Fund from benefiting from the gains in foreign currencies as the
dollar fell.
The devaluation of the Mexican peso at the end of December 1994 affected
virtually every emerging market. We believe much of the selloff of emerging
market debt occurred for technical, rather than fundamental, economic reasons.
Over the entire period, emerging market debt traded in very high correlation
with the peso.
The combination of slowing U.S. growth and strength in the German and Japanese
currencies has been the main reason for the global bond rally in the first half
of 1995. The direction of the U.S. economy is still the major determinant of
bond rates around the world. We expect the recent cut in the federal funds rate
to provide stimulus to global growth over the next several months and that
emerging bond markets will not only overcome their challenges, but will
appreciate as investors realize the relative value they hold. We plan to
continue to participate in the growth of this asset class to the extent it
develops.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Strategic Income Salomon Br Salomon Bros. Brady Bond
<S> <C> <C> <C>
02/10/93 10,000 10,000 10,000
02/28/93 10,008 10,126 10,073
03/31/93 10,078 10,281 10,624
04/30/93 10,082 10,498 10,857
05/31/93 10,143 10,604 11,235
06/30/93 10,512 10,581 11,604
07/31/93 10,871 10,611 12,104
08/31/93 11,459 10,930 12,317
09/30/93 11,502 11,060 12,489
10/31/93 12,168 11,041 13,558
11/30/93 11,986 10,962 13,385
12/31/93 12,755 11,055 14,216
01/31/94 12,842 11,144 14,258
02/28/94 11,553 11,071 13,085
03/31/94 10,506 11,055 11,503
04/30/94 10,396 11,068 11,502
05/31/94 10,569 10,971 12,137
06/30/94 10,447 11,129 11,330
07/31/94 10,482 11,218 11,666
08/31/94 10,856 11,179 12,738
09/30/94 11,053 11,260 12,943
10/31/94 10,975 11,440 12,588
11/30/94 10,878 11,283 12,678
12/31/94 10,575 11,314 11,886
01/31/95 10,487 11,552 11,667
02/28/95 10,438 11,847 10,901
03/31/95 10,579 12,551 10,568
04/30/95 11,130 12,784 11,680
05/31/95 11,584 13,143 12,641
06/30/95 11,615 13,221 12,925
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers World Government Bond Index and the Brady Bond Index for
the same period using available index data. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Investors should note that the Fund is a
professionally managed portfolio while the indices are unmanaged, do not incur
expenses and are not available for investment. Past performance is no guarantee
of future results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
One Year 11.18% 9.64%
Life of Fund* 16.15 12.33
</TABLE>
+The G.T. Global: Variable Strategic Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 3.64% and 8.33% for one year (6% surrender charge) and Life of Fund (4%
surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The Salomon Brothers World Government Bond Index is a widely-used index of
government bonds with maturities of one year or greater from 14 countries with
major bond markets, and is calculated in U.S. dollars. It includes the effect of
reinvested dividends.
(2) The Salomon Brothers Brady Bond Index measures the total
return of Brady bonds issued since April 1, 1995, by governments undergoing
economic restructuring under the Brady Plan.
2
<PAGE> 5
G.T. GLOBAL:
VARIABLE GLOBAL GOVERNMENT INCOME FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
G.T. Global Government Income Salomon Bros. World Government Bond
<S> <C> <C>
02/10/93 20,000 10,000
02/28/93 10,008 10,126
03/31/93 9,935 10,281
04/30/93 9,952 10,498
05/31/93 10,011 10,604
06/30/93 10,239 10,581
07/31/93 10,319 10,611
08/31/93 10,664 10,930
09/30/93 10,642 11,060
10/31/93 10,820 11,041
11/30/93 10,707 10,962
12/31/93 10,925 11,055
01/31/94 11,030 11,144
02/28/94 10,511 11,071
03/31/94 10,228 11,055
04/30/94 10,049 11,068
05/31/94 9,846 10,971
06/30/94 10,023 11,129
07/31/94 10,084 11,218
08/31/94 9,999 11,179
09/30/94 10,034 11,260
10/31/94 10,227 11,440
11/30/94 10,162 11,283
12/31/94 9,975 11,314
01/31/95 10,078 11,552
02/28/95 10,309 11,847
03/31/95 10,626 12,551
04/30/95 10,887 12,784
05/31/95 11,112 13,143
06/30/95 11,076 13,221
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers World Government Bond Index for the same time period using
available index data. It assumes a hypothetical $10,000 initial investment in
the Fund and reflects all Fund expenses but not expenses and charges of the
separate account. Investors should note that the Fund is a professionally
managed portfolio while the index is unmanaged, does not incur expenses and is
not available for investment. Past performance is no guarantee of future
results.
REPORT ON THE FUND
The Fund's total return for the six months ending June 30, 1995, was 11.04%.
Total return for the Salomon Brothers World Government Bond Index(1) for the
same period was 16.85%. The Fund's underperformance relative to the index was
due to its underweighted position in the German mark and Japanese yen during the
first three months of the year, a period of significant dollar weakening. The
Fund was also overweighted in the European markets, which lagged the U.S. and
Japanese markets during this year's bond market rally.
Global bond markets performed very well in the first half of 1995, led by a
strong rally in U.S. bonds. The performance in U.S. dollar terms of many foreign
bond markets, particularly those of Germany and Japan, was further enhanced by
the dollar's weakness. The Japanese economy remains under pressure despite
stimulus from large government spending and further cuts in interest rates by
the Bank of Japan, which has taken short-term rates to below 1%. Growth in the
German economy throughout the last 18 months has been driven by the export
sector, which has been slowing lately, and consumer spending has only just
started to increase.
With economic growth in the major economies of the world remaining weak, and
central banks biased towards cutting interest rates, the environment for global
bond markets is favorable. However, bond yields have already fallen
substantially this year and markets are now discounting most of the good news.
For these reasons, the Fund currently holds an average maturity similar to the
index's.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
One Year 10.51% 8.99%
Life of Fund* 10.76 7.20
</TABLE>
+The G.T. Global: Variable Global Government Income Fund serves as the
underlying investment vehicle for the corresponding Division available in the
G.T. Global Allocator variable annuity contract issued by General American Life
Insurance Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 2.99% and 3.20% for one year (6% surrender charge) and Life of Fund (4%
surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The Salomon Brothers World Government Bond Index is a widely used index of
government bonds with maturities of one year or greater from 14 countries with
major bond markets, and is calculated in U.S. dollars. It includes the effect of
reinvested dividends.
3
<PAGE> 6
G.T. GLOBAL:
VARIABLE U.S. GOVERNMENT INCOME FUND
REPORT ON THE FUND
Total return for the Fund over the six-month period ending June 30, 1995, was
9.11%, compared to 11.19% for the Salomon Brothers U.S. Government Bond Index(1)
for the same period. The Fund's underperformance relative to the index was
primarily due to the Fund's lower average maturity. Bond volatility is related
to maturity. When interest rates fall, longer maturity bonds enjoy greater price
gains than bonds of shorter maturity. Consequently, the Fund did not gain as
much from the fall in interest rates. At the start of the year we believed the
U.S. economy would maintain its strength and the Federal Reserve Board would
continue to increase short-term interest rates in an effort to hold off
inflation. The U.S. economy, however, slowed in the first few months of the year
following the interest rate hikes in 1994.
Inflation has risen slightly in a lagged reaction to last year's economic
strength but the overall level of inflation remains low. More importantly,
inflationary pressures appear to be subsiding: commodity prices are stable, wage
increases are moderate and excess capacity in the manufacturing industry has
increased to a more manageable level. As a result of this favorable economic
background, U.S. bond yields fell sharply over the last few months, and in the
first week of July the Fed reduced short-term interest rates.
The bond market is already discounting further cuts in U.S. interest rates, and
the level of bond yields relative to inflation is low by historical standards.
For these reasons, we believe it will be difficult for bond yields to fall
significantly in the coming months unless there is a further slowdown in the
economy. We believe the market to be fully valued at present and will continue
with a moderately defensive investment strategy until the economic numbers show
more weakness or bond yields rise to more attractive levels.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Government Securities Salomon US Government Bond
<S> <C> <C>
02/10/93 10,000 10,000
02/28/93 10,008 10,124
03/31/93 9,932 10,151
04/30/93 9,973 10,239
05/31/93 9,977 10,223
06/30/93 10,188 10,451
07/31/93 10,286 10,513
08/31/93 10,933 10,745
09/30/93 10,916 10,794
10/31/93 10,992 10,821
11/30/93 10,656 10,703
12/31/93 10,638 10,751
01/31/94 10,891 10,898
02/28/94 10,444 10,672
03/31/94 10,110 10,425
04/30/94 9,994 10,345
05/31/94 9,963 10,337
06/30/94 9,963 10,317
07/31/94 10,107 10,495
08/31/94 10,125 10,499
09/30/94 9,980 10,354
10/31/94 9,953 10,344
11/30/94 9,925 10,319
12/31/94 9,971 10,389
01/31/95 10,129 10,592
02/28/95 10,296 10,812
03/31/95 10,343 10,876
04/30/95 10,446 11,016
05/31/95 10,805 11,464
06/30/95 10,880 11,552
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers U.S. Government Bond Index for the same period using
available index data. It assumes a hypothetical $10,000 initial investment in
the Fund and reflects all Fund expenses but not expenses and charges of the
separate account. Investors should note that the Fund is a professionally
managed portfolio while the index is unmanaged, does not incur expenses and is
not available for investment. Past performance is no guarantee of future
results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
One Year 9.21% 7.70%
Life of Fund* 8.80 5.22
</TABLE>
+The G.T. Global: Variable U.S. Government Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If G.T. Capital had not reimbursed
these expenses, the Fund's performance would have been lower. Please see
"Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 1.70% and 1.22% for one year (6% surrender charge), and Life of Fund (4
% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The Salomon Brothers U.S. Government Bond Index is a market
capitalization-weighted index of U.S. Treasury issues with remaining maturities
of at least one year. All returns are calculated with reinvested dividends and
are expressed in U.S. dollar terms.
4
<PAGE> 7
G.T. GLOBAL:
VARIABLE LATIN AMERICA FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Latin America MSCI EMG Latin America
<S> <C> <C>
02/10/93 10,000 10,000
02/28/93 10,008 9,949
03/31/93 9,983 10,678
04/30/93 10,017 10,170
05/31/93 10,167 10,327
06/30/93 10,017 11,001
07/31/93 10,358 11,321
08/31/93 10,875 12,295
09/30/93 11,192 12,453
10/31/93 12,000 12,906
11/30/93 12,767 13,801
12/31/93 14,733 15,599
01/31/94 17,058 18,044
02/28/94 16,658 17,452
03/31/94 15,708 16,211
04/30/94 14,075 14,987
05/31/94 14,285 15,841
06/30/94 13,731 14,777
07/31/94 14,780 16,063
08/31/94 17,766 18,667
09/30/94 18,688 19,420
10/31/94 18,395 18,465
11/30/94 18,395 17,943
12/31/94 16,080 15,024
01/31/95 13,765 13,308
02/28/95 12,070 11,300
03/31/95 10,821 10,918
04/30/95 12,498 12,541
05/31/95 12,339 12,785
06/30/95 12,630 12,998
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Latin America Index for the same period using
available index data. It assumes a hypothetical $10,000 initial investment in
the Fund and reflects all Fund expenses but not expenses and charges of the
separate account. Investors should note that the Fund is a professionally
managed portfolio while the index is unmanaged, does not incur expenses and is
not available for investment. Past performance is no guarantee of future
results.
REPORT ON THE FUND
The Fund's total return during the six months ending June 30, 1995, was -21.45%,
compared to a return of -13.49% by the Morgan Stanley Capital International
(MSCI) Emerging Markets Global Latin America Index(1). The Fund's
underperformance was due to its overweighted position and security selection in
Mexico, and its underweighted position in Argentine and Chilean blue-chip
stocks.
The period was characterized by an unusual degree of volatility in regional
stock markets, even by Latin American standards. During the first two-and-a-half
months of 1995, the financial crisis that gripped the region in the wake of
Mexico's devaluation of the peso last December pushed the major stock markets
down as much as 50%. In the following three months, all Latin American stock
markets rebounded significantly from their lows, in some cases as much as 70%,
after it became clear that Mexico was not likely to default on its foreign debt
obligations or resort to printing pesos to solve its financial crisis.
The composition of the Fund has changed significantly since the end of 1994.
Most importantly, the relative weighting between Brazil and Mexico has been
reversed, in line with the shift in macroeconomic risk that has occurred in
those countries. Brazil had been the most important country investment in the
Fund through most of 1994.
Now, however, we expect inflation and interest rates in Mexico to continue to
fall and the economy to slowly recover throughout the second half of 1995. We
consider this to be a benign environment for investing and will evaluate
potential opportunities as they present themselves.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
One Year -8.02% -9.27%
Life of Fund* 26.30 22.19
</TABLE>
+The G.T. Global: Variable Latin America Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be -14.72% and 18.19% for one year (6% surrender charge) and Life of Fund
(4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Emerging Markets Global Latin America Index is an arithmetic
average, weighted by market value, of the performance of 170 companies listed on
seven major Latin American stock exchanges (Argentina, Brazil, Chile, Colombia,
Mexico, Peru and Venezuela). It includes the effect of reinvested dividends and
is measured in U.S. dollars.
5
<PAGE> 8
G.T. GLOBAL:
VARIABLE GROWTH & INCOME FUND
REPORT ON THE FUND
The Fund's total return for the six months ending June 30, 1995, was 5.42%,
compared to a total return of 9.42% by the Morgan Stanley Capital International
(MSCI) World Index,(1) and 16.85% over the same period for the Salomon Brothers
World Government Bond Index.(2) The Fund underperformed the indices primarily as
a result of its hedging strategy, as provided for in the prospectus. In
anticipation of a rebound in the dollar, the Fund employed foreign currency
hedges which prevented the Fund from benefiting from the gains in foreign
currencies as the dollar fell. In addition, the Fund maintained an underweighted
position in U.S. stocks during the first half of the year. Finally, the Fund's
fixed interest portion concentrated on European bond markets, where we felt
there was the greatest potential for interest rates to decline. European bond
markets rallied, but not as strongly as in the U.S.
The Fund invested its cash throughout the period, as fixed interest and equity
markets strengthened on the unlikelihood of an acceleration in U.S. inflation.
The strong rally in world bond prices this year, led by the U.S., and the
simultaneous weakening in a number of commodity prices (recognized indicators of
future inflation) such as gold, copper, lumber and oil, serve to confirm
inflation's deceleration.
We believe financial assets in established countries outside the U.S. are
attractively valued and as inflation expectations subside, bond yields should
fall and share price-to-earnings valuations should increase. We feel the
greatest values in both stocks and bonds are currently to be found in Europe,
Australia and New Zealand, and continue to emphasize these regions in the
portfolio.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Growth & Income MSCI World Salomon Bros. World Govt Bond Index
<S> <C> <C> <C>
02/10/93 10,000 10,000 10,000
02/28/93 10,008 10,152 10,126
03/31/93 10,228 10,743 10,281
04/30/93 10,261 11,242 10,498
05/31/93 10,361 11,503 10,604
06/30/93 10,437 11,409 10,581
07/31/93 10,673 11,646 10,611
08/31/83 11,145 12,181 10,930
09/30/93 11,155 11,958 11,060
10/31/93 11,460 12,290 11,041
11/30/93 11,333 11,596 10,962
12/31/93 11,775 12,166 11,055
01/31/94 12,135 12,970 11,144
02/28/94 11,639 12,805 11,071
03/31/94 11,312 12,255 11,055
04/30/94 11,467 12,636 11,068
05/31/94 11,355 12,670 10,971
06/30/94 11,278 12,637 11,129
07/31/94 11,573 12,880 11,218
08/31/94 11,721 13,270 11,179
09/30/94 11,455 12,924 11,260
10/31/94 11,796 13,294 11,440
11/30/94 11,394 12,719 11,283
12/31/94 11,439 12,845 11,314
01/31/95 11,360 12,654 11,552
02/28/95 11,580 12,841 11,847
03/31/95 11,590 13,463 12,551
04/30/95 11,821 13,935 12,784
05/31/95 12,114 14,057 13,143
06/30/95 12,059 14,055 13,221
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index and the Salomon Brothers World Government Bond Index for
the same time period using available index data. It assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses but not
expenses and charges of the separate account. Investors should note that the
Fund is a professionally managed portfolio while the indices are unmanaged, do
not incur expenses and are not available for investment. Past performance is no
guarantee of future results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
One Year 6.93% 5.45%
Life of Fund* 20.59 16.66
</TABLE>
+The G.T. Global: Variable Growth & Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be -0.55% and 12.66% for one year (6% surrender charge) and Life of Fund
(4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,575 securities listed on major world stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
(2) The Salomon Brothers World Government Bond Index is a widely used index of
government bonds with maturities of one year or greater from 14 countries with
major bond markets. It is calculated in U.S. dollars and includes the effect of
reinvested dividends.
6
<PAGE> 9
G.T. GLOBAL:
VARIABLE TELECOMMUNICATIONS FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Telecommunications MSCI Telecommunications
<S> <C> <C>
10/18/93 10,000 10,000
10/31/93 10,008 10,179
11/30/93 9,942 9,643
12/31/93 10,892 9,818
01/31/94 11,358 10,264
02/28/94 11,033 9,595
03/31/94 10,167 9,307
04/30/94 10,402 9,623
05/31/94 10,485 9,692
06/30/94 10,226 9,660
07/31/94 10,927 9,963
08/31/94 11,662 10,291
09/30/94 11,562 10,011
10/31/94 11,871 10,247
11/30/94 11,370 9,563
12/31/94 11,670 9,554
01/31/95 11,529 9,787
02/28/95 11,337 9,799
03/31/95 11,345 10,010
04/30/95 11,662 10,159
05/31/95 12,422 10,333
06/30/95 13,422 10,525
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Telecommunications Index for the same period using available index
data. It assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses but not expenses and charges of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the index is unmanaged, does not incur expenses and is not available for
investment. Past performance is no guarantee of future results.
REPORT ON THE FUND
The Fund's total return for the six months ended June 30, 1995, was 15.01%;
total return for the MSCI Telecommunications Index(1), was 10.16% over the same
period. The Fund outperformed the index as a result of our investment in U.S.
and European telecommunication equipment makers, which are not represented in
the index and which enjoyed a significant increase in their prices during the
period.
The first half of 1995 witnessed a significant appreciation in U.S. stock prices
as a result of strong corporate earnings and what looked like a soft landing for
the U.S. economy. Technology companies, including telecom equipment makers, have
benefited from a shift in corporate capital spending, and their prices have
reflected these positive trends. Our decision to lower the Fund's emerging
markets exposure late last year reduced the impact on the Fund of the sharp
declines in many of these markets following Mexico's devaluation of the peso in
December 1994.
We believe infrastructure development will continue to provide a powerful
catalyst for growth in service revenues and equipment sales. In addition, we
expect increased privatizations in the coming months, including companies in
Greece, Uruguay, India, Germany, Israel, Belgium, Sweden, Turkey, Ireland and
Indonesia, and will evaluate potential opportunities as they present themselves.
While we do not expect the unusually strong performance of the first half of the
year to be matched on a consistent basis, we do anticipate favorable returns
over the long term.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
One Year 31.25% 29.43%
Life of Fund* 34.22 31.07
</TABLE>
+The G.T. Global: Variable Telecommunications Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If G.T. Capital had not reimbursed
these expenses, the Fund's performance would have been lower. Please see
"Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 23.43% for one year (6% surrender charge), and 26.07% for the Life of
Fund (5% surrender charge).
* The Fund began operations on October 18, 1993.
(1) The MSCI Telecommunications Index is a market capitalization-weighted
arithmetic average of the performance of 26 companies listed on major world
stock exchanges. It is measured in U.S. dollars and does not include the effect
of reinvested dividends.
7
<PAGE> 10
G.T. GLOBAL:
VARIABLE EMERGING MARKETS FUND
REPORT ON THE FUND
The Fund's total return for the six-month period ending June 30, 1995, was
-6.14%. Total return of the Morgan Stanley Capital International (MSCI) Emerging
Markets Global Index(1) for the period was slightly less, at -6.54%. At the
beginning of the year, our strategy was to maintain a fairly high cash position.
Although the Fund suffered declines, this permitted us to increase our stock
holdings, particularly in the Asian countries, where we had been relatively
underweighted in 1994.
The devaluation of the Mexican peso at the end of December 1994 led to a major
sell off in emerging markets during the first two months of the year. For Asian
markets the repercussions were less severe than in Latin America. Asian markets,
in general, fell less and subsequently rebounded less during March and the
second quarter.
After a two-month decline, investor confidence began to return and Latin
American markets started to strengthen. Markets rebounded after the peso crisis
as market participants realized the dynamics of each individual country are
different. Mexico and Argentina, for example, have demonstrated an ability to
implement and adhere to strict measures of austerity. In the longer term, we
expect the slower growth in those countries to lay a stronger foundation for
sustainable growth.
Our strategy, which may change with market conditions, has been and will likely
continue to be to diversify the number of countries in the portfolio to help
reduce risk, paying particular attention to countries that are not highly
correlated with the U.S. stock market. Meanwhile, the current environment of low
inflation globally has led to lower interest rates, which is favorable for many
of the emerging markets. This being the case, we expect to be close to fully
invested.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Emerging Markets MSCI Emer IFC Global Composit
<S> <C> <C>
07/05/94 10,000 10,000
07/31/94 10,025 10,510
08/31/94 10,408 11,591
09/30/94 11,358 11,905
10/31/94 11,400 11,615
11/30/94 10,917 11,071
12/31/94 10,012 10,494
01/31/95 9,095 9,344
02/28/95 8,337 9,178
03/31/95 8,135 9,307
04/30/95 8,867 9,498
05/31/95 9,406 9,832
06/30/95 9,398 9,807
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Index for the same period using available index
data. It assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses but not expenses and charges of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the index is unmanaged, does not incur expenses and is not available for
investment. Past performance is no guarantee of future results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
Life of Fund* -6.02% -7.31%
</TABLE>
+The G.T. Global: Variable Emerging Markets Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If G.T. Capital had not reimbursed
these expenses, the Fund's performance would have been lower. Please see
"Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be -12.87% for Life of Fund (6% surrender charge).
* The Fund began operations on July 5, 1994.
(1) The MSCI Emerging Markets Global Index is a broad-based measure of 821
companies with market capital weighted regardless of whether or not a market is
open to foreigners. It includes the effect of reinvested dividends and is
measured in U.S. dollars.
8
<PAGE> 11
G.T. GLOBAL:
VARIABLE INFRASTRUCTURE FUND
REPORT ON THE FUND
Total return for the Fund was 10.25% for the five months since inception, ending
June 30, 1995, compared with a total return of 11.07% for the broad-based Morgan
Stanley Capital International (MSCI) World Index(1) over the same period. The
Fund benefited from a buoyant U.S. market throughout the last five months of the
first half of 1995 as well as the recovery of emerging markets from the peso
crisis of late December. While we are pleased with the Fund's results over its
first five months, it is important to recognize that this is a relatively short
time frame, and the Fund should be considered a long-term investment.
Emerging markets infrastructure development can involve two approaches: 1)
privatization and subsequent refurbishment and expansion of existing facilities
and 2) new construction of power plants, roads and airports. Mexico, for
example, recently privatized three of its largest ports, selling them to Mexican
and foreign consortia with experience in marine transportation. The Philippines
has been an active issuer of licenses to build power plants, which has lessened
the power crises of the early 1990s. These privatizations have the potential to
benefit some of the Fund's holdings.
We believe infrastructure spending will continue to increase in advanced
countries due to maintenance and upgrades. While power consumption,
telecommunication usage, transportation services, and other basic elements of
infrastructure are at much lower levels in developing countries relative to
those in advanced areas such as North America, Europe and Japan, we feel they
will show pronounced growth as their emerging economies take shape. The Fund
will continue to emphasize infrastructure companies in emerging markets as well
as the many suppliers of capital goods based in developed nations.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
Life of Fund* 10.25% 9.62%
</TABLE>
+The G.T. Global: Variable Infrastructure Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If G.T. Capital had not reimbursed
these expenses, the Fund's performance would have been lower. Please see
"Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be 3.62% for Life of Fund (6% surrender charge).
* The Fund began operations on January 31, 1995.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,575 securities listed on major world stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
9
<PAGE> 12
G.T. GLOBAL:
VARIABLE NATURAL RESOURCES FUND
REPORT ON THE FUND
Total return for the Fund was 10.67% for the five months since inception, ending
June 30, 1995, compared with a total return for the broad-based Morgan Stanley
Capital International (MSCI) World Index(1) of 11.07% over the same period.
While we are pleased with the Fund's results over its first five months, it is
important to recognize that this is a relatively short time frame and the Fund
should be considered a long-term investment. Most of the Fund's gains were
captured in the last two months of the period, particularly in the U.S. market.
Solid gains from U.S. chemical and paper sectors were primarily responsible for
the Fund's return during a generally difficult period for resource stocks. Our
cash position during the first two months of the Fund's operation allowed us to
avoid some of the negative returns from the steel and mining sectors. The
investment period was marked by short-term concerns about continued economic
growth, particularly in the United States, and the ability of resource-based
companies to maintain their earnings strength. Gold price was flat during the
five months and the price of oil finished lower, leading to a generally subdued
performance by stocks in these two sectors.
We view the outlook for equities in the resources industries as positive over
the next 12 months. We expect sustained economic growth to continue to fuel the
demand for commodities into the current year and, given the limited ability of
companies to add significantly to supply in the near term, we believe commodity
markets will continue to tighten. Over the next year we expect resource
companies' stock prices will recover as earnings continue to increase. Resource
companies are expected to generate strong cash flows over the next few years,
which we think should result in an increase in share buybacks as well as
takeover and merger activity. Across all industries we will remain focused on
those companies cutting costs and likely to deliver underlying growth, either
through expansion of existing operations or through acquisitions.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
Life of Fund* 10.67% 9.97%
</TABLE>
+The G.T. Global: Variable Natural Resources Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be 3.97% for Life of Fund (6% surrender charge).
* The Fund began operations on January 31, 1995.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,575 securities listed on major world stock exchanges. It
includes the effect of reinvestment dividends and is measured in U.S. dollars.
10
<PAGE> 13
G.T. GLOBAL:
VARIABLE AMERICA FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Global Variable America S&P 400 Mi Russell 2000
<S> <C> <C> <C>
02/10/93 10,000 10,000 10,000
02/28/93 10,008 9,910 9,852
03/31/93 9,908 10,252 10,171
04/30/93 9,525 9,984 9,891
05/31/93 10,150 10,438 10,329
06/30/93 9,817 10,491 10,393
07/31/93 9,992 10,470 10,537
08/31/83 10,308 10,903 10,992
09/30/93 10,417 11,018 11,302
10/31/93 11,108 11,054 11,593
11/30/93 11,225 10,809 11,215
12/31/93 11,467 11,311 11,598
01/31/94 11,650 11,574 11,962
02/28/94 12,033 11,410 11,918
03/31/94 12,275 10,881 11,291
04/30/94 12,502 10,962 11,358
05/31/94 12,675 10,859 11,230
06/30/94 12,666 10,485 10,851
07/31/94 12,640 10,840 11,029
08/31/94 13,365 11,407 11,644
09/30/94 13,485 11,194 11,604
10/31/94 13,511 11,317 11,557
11/30/94 13,339 10,806 11,090
12/31/94 13,632 10,906 11,387
01/31/95 13,751 11,019 11,243
02/28/95 14,442 11,597 11,711
03/31/95 14,986 11,798 11,912
04/30/95 15,606 12,035 12,177
05/31/95 16,003 12,325 12,386
06/30/95 17,028 12,867 13,029
</TABLE>
The chart above shows the performance of the Fund since inception compared to
Standard & Poor's Midcap 400 Index and the Russell 2000 Index for approximately
the same period using available index data. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Investors should note that the Fund is a
professionally managed portfolio while the indices are unmanaged, do not incur
expenses and are not available for investment. Past performance is no guarantee
of future results.
REPORT ON THE FUND
The Fund's total return for the six months ending June 30, 1995, was 24.92%. The
Fund outperformed both the Standard & Poor's Midcap 400 Index,(1) which had a
total return of 17.62%, and the Russell 2000 Index,(2) which had a total return
of 14.42% over this same investment period. We believe our investment approach,
based on company fundamentals and valuation trends, has proven its value in
terms of the Fund's performance.
The U.S. stock market as a whole benefited from the decline in U.S. interest
rates and was led by gains in the technology sector. Since 1994, consumer
confidence has returned as concerns about inflation and increasing interest
rates have subsided. The result has been a fairly broad appreciation for most
market sectors, with financial, capital goods, and technology stocks gaining the
most.
Many investors are contemplating whether U.S. stocks can sustain the strong
growth they demonstrated in the first half of 1995. We believe that, although
company earnings might be impacted by a slowing economy and rising consumer debt
levels, we will continue to find attractive opportunities in individual stocks.
We do, however, caution investors that we do not expect the second half of 1995
to repeat the large gains of the first half.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
One Year 34.44% 32.58%
Life of Fund* 70.28 64.66
</TABLE>
+The G.T. Global: Variable America Fund serves as the underlying investment
vehicle for the corresponding Division available in the G.T. Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, G.T. Capital, the Fund's investment manager and administrator,
reimbursed a portion of the Fund's expenses. If G.T. Capital had not reimbursed
these expenses, the Fund's performance would have been lower. Please see
"Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual annuity
charges but not the surrender charge, which starts at 6% and declines to 0%. The
cumulative total returns for the Division, which reflect the applicable
surrender charge would be 26.58% and 60.66% for one year (6% surrender charge)
and Life of Fund (4% surrender charge), respectively.
* The Fund began operations on February 10, 1993 .
(1) The S&P Midcap 400 Index is composed of the capitalization-weighted average
price of 400 selected common stocks of medium-size domestic companies. It does
not include the effect of reinvested dividends and is measured in U.S. dollars.
(2) The Russell 2000 Index is composed of 2,000 U.S.-domiciled common stocks
designed to measure small company stock performance. The index represents
roughly 10% of the U.S. stock market, and market capitalization of index
companies ranged from $104 million to $746 million as of June 1995. It includes
the effect of reinvested dividends and is measured in U.S. dollars.
11
<PAGE> 14
G.T. GLOBAL:
VARIABLE NEW PACIFIC FUND
REPORT ON THE FUND
Total return for the six months ending June 30, 1995, was -0.57%. For the same
period, the Morgan Stanley Capital International (MSCI) Pacific ex-Japan
Index(1) was 7.18%. The Fund's underperformance compared to the index was caused
by a relatively high cash level in February, when regional markets staged a
strong rebound after the January selloff. The Fund was also underweighted in
Hong Kong and Malaysia, two of the better-performing markets of the first
quarter.
For the regional stock markets, 1995 began with an extremely volatile quarter
triggered by the Mexican peso crisis. Nervous investors indiscriminately cut
back their exposure to emerging markets while central banks across the region
had to defend their currencies from heavy speculative selling. This was the case
for the Thai baht, Philippine peso, Indonesian rupiah and the Hong Kong dollar.
Markets in the dollar bloc countries, whose interest rates correlate with U.S.
rates, did not regain their strength until the U.S. market began to show signs
of a slowdown. Almost all regional markets finished the first half at their
year-high, with the notable exception of Hong Kong, which has been troubled by
rising unemployment and decreasing consumer spending.
We believe the Asia Pacific region will remain a high growth area and the
regional stock markets will continue the rapid expansion they have experienced
over the past decade. We see China, in particular, as a major force, and the
development of its economy and financial sector should provide significant
investment opportunities.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Global Variable New Pacific MSCI Pacific Ex-Japan
<S> <C> <C>
02/10/93 10,000 10,000
02/28/93 10,008 10,481
03/31/93 10,308 10,660
04/30/93 10,833 11,206
05/31/93 11,258 11,635
06/30/93 10,892 11,282
07/31/93 11,308 11,681
08/31/93 11,692 12,563
09/30/93 11,808 12,806
10/31/93 12,425 14,877
11/30/93 11,992 14,433
12/31/93 13,392 17,430
01/31/94 13,425 16,951
02/28/94 12,900 16,126
03/31/94 11,808 14,414
04/30/94 12,174 15,083
05/31/94 12,417 15,582
06/30/94 11,990 14,891
07/31/94 12,425 15,676
08/31/94 13,262 16,729
09/30/94 13,019 16,290
10/31/94 12,960 16,553
11/30/94 11,940 15,226
12/31/94 11,722 14,991
01/31/95 10,526 13,698
02/28/95 10,818 14,977
03/31/95 10,869 15,135
04/30/95 11,028 15,336
05/31/95 11,638 16,377
06/30/95 11,655 16,068
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Pacific ex-Japan Index for the same period using available index data.
It assumes a hypothetical $10,000 initial investment in the Fund and reflects
all Fund expenses but not expenses and charges of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the index is unmanaged, does not incur expenses and is not available for
investment. Past performance is no guarantee of future results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
One Year -2.79% -4.14%
Life of Fund* 16.55 12.74
</TABLE>
+The G.T. Global: Variable New Pacific Fund serves as the underlying investment
vehicle for the corresponding Division available in the G.T. Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, G.T. Capital, the Fund's investment manager and administrator,
reimbursed a portion of Fund expenses. If G.T. Capital had not reimbursed these
expenses, the Fund's performance would have been lower. Please see "Management"
in the Fund prospectus for information about the expense limitation. The
performance of the Division reflects the 1.4% annual charges but not the
surrender charge, which starts at 6% and declines to 1%. The cumulative total
returns of the Division, which reflect the applicable surrender charge, would be
-9.89% and 8.74% for one year (6% surrender charge), and Life of Fund (4%
surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Pacific ex-Japan Index is an arithmetic average total return,
weighted by market value, of the performance of securities listed on five major
Pacific Rim stock exchanges (Australia, Hong Kong, Malaysia, New Zealand and
Singapore). It includes the effect of reinvested dividends and is measured in
U.S. dollars.
12
<PAGE> 15
G.T. GLOBAL:
VARIABLE EUROPE FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Global Variable Europe MSCI Europe
<S> <C> <C>
02/10/93 10,000 10,000
02/28/93 10,008 10,076
03/31/93 10,133 10,598
04/30/93 10,525 10,835
05/31/93 10,858 10,956
06/30/93 10,842 10,799
07/31/93 11,183 10,840
08/31/93 11,875 11,795
09/30/93 11,958 11,762
10/31/93 12,400 12,255
11/30/93 12,075 11,994
12/31/93 12,775 12,898
01/31/94 13,708 13,558
02/28/94 13,158 13,082
03/31/94 12,758 12,716
04/30/94 13,083 13,246
05/31/94 12,557 12,687
06/30/94 12,399 12,558
07/31/94 12,950 13,220
08/31/94 13,225 13,644
09/30/94 12,891 13,107
10/31/94 13,292 13,682
11/30/94 12,674 13,162
12/31/94 12,699 13,241
01/31/95 12,457 13,142
02/28/95 12,290 13,445
03/31/95 11,907 14,074
04/30/95 12,466 14,529
05/31/95 12,783 14,832
06/30/95 13,033 14,977
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Europe Index for the same period using available index data. It assumes
a hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
REPORT ON THE FUND
The Fund's total return over the six-month period ending June 30, 1995, was
2.63%. For the same investment period, total return for the Morgan Stanley
Capital International (MSCI) Europe Index(1) was 13.11%. The Fund's
underperformance relative to the index was primarily due to the unexpected
weakness of the U.S. dollar. In anticipation of a rebound in the dollar, the
Fund employed foreign currency hedges (as provided for in the prospectus), which
prevented the Fund from benefiting from gains in foreign currencies as the
dollar fell. The Fund's performance was also adversely affected by its exposure
to cyclical companies (whose earnings go up and down with economic cycles).
In spite of downward revisions in corporate earnings, lower economic forecasts
and a weak dollar, European equity markets, with the exception of Italy and
Germany, rallied over the six-month period. Italy suffered severely for its lack
of political stability and fiscal policy restraint, and the German market was
hit by negative revisions for export earnings. Overall, the return of investor
confidence to the European markets was driven by the strength in global bond
markets on the back of a benign outlook for inflation. Investors sought earnings
growth and were prepared to pay a bigger premium for it.
We envisage a further reduction in European bond yields from the current high
levels which, at least historically, has been good for equities. We believe
European equity markets should also benefit from improved communication of
financial information and the recognition by companies of shareholder value.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
-----------------
<S> <C> <C>
One Year 5.11% 3.65%
Life of Fund* 30.33 26.07
</TABLE>
+The G.T. Global: Variable Europe Fund serves as the underlying investment
vehicle for the corresponding Division available in the G.T. Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, G.T. Capital, the Fund's investment manager and administrator,
reimbursed a portion of Fund expenses. If G.T. Capital had not reimbursed these
expenses, the Fund's performance would have been lower. Please see "Management"
in the Fund prospectus for information about the expense limitation. The
performance of the Division reflects the 1.4% annual charges but not the
surrender charge, which starts at 6% and declines to 0%. The cumulative total
returns for the Division, which reflect the applicable surrender charge, would
be -2.35% and 22.07% for one year (6% surrender charge) and Life of Fund (4%
surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Europe Index is an arithmetic average, weighted by market value, of
the performance of 587 securities listed on 14 major European stock exchanges
(Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the
Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom). It
includes the effect of reinvested dividends and is measured in U.S. dollars.
13
<PAGE> 16
G.T. GLOBAL:
VARIABLE INTERNATIONAL FUND
REPORT ON THE FUND
The Fund's total return over the six-month period to June 30, 1995, was -5.38%.
For the same investment period, total return for the Morgan Stanley Capital
International Europe, Australia, Far East (MSCI EAFE) Index(1) was 2.76%. The
Fund's underperformance relative to the index can in part be attributed to the
surprising weakness of the U.S. dollar. In anticipation of a rebound in the
dollar, the Fund employed foreign currency hedges (as provided for in the
prospectus), which prevented the Fund from benefiting from the gains in foreign
currencies as the dollar fell. However, we are encouraged by the Fund's
performance during the second quarter; the Fund recovered 4% of its losses,
compared with a gain of only 0.8% in the MSCI EAFE Index.
The Mexican financial crisis affected virtually all emerging markets, causing a
significant decline in their market performance in the first two months of the
year. We have witnessed an improvement in investor sentiment in general toward
the emerging markets since March, as many of these countries have successfully
maintained strict monetary and fiscal discipline. We continue to believe in the
fundamental value of emerging markets.
During the first several months of the year, European and Japanese stock markets
were also depressed as investors contemplated the implications of further
increases in U.S. and foreign interest rates to combat inflation. As the
likelihood of further increases in U.S. short-term interest rates diminished,
most stock markets recovered.
Heading into the second half of 1995, we expect to see many of the international
markets show encouraging signs, such as low inflation and stable monetary
policies.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Global Variable International MSCI EAFE
<S> <C> <C>
07/05/94 10,000 10,000
07/31/94 10,025 10,076
08/31/94 10,217 10,317
09/30/94 9,800 9,994
10/31/94 10,083 10,329
11/30/94 9,625 9,835
12/31/94 9,420 9,899
01/31/95 8,817 9,521
02/28/95 8,599 9,496
03/31/95 8,557 10,091
04/30/95 8,792 10,473
05/31/95 8,750 10,351
06/30/95 8,913 10,172
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI EAFE Index for the same period using available index data. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
TOTAL RETURN
JUNE 30, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
Life of Fund* -10.87% -12.14%
</TABLE>
+The G.T. Global: Variable International Fund serves as the underlying
investment vehicle for the corresponding Division available in the G.T. Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, G.T. Capital, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If G.T. Capital had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges
but not the surrender charge, which starts at 6% and declines to 0%. The
cumulative total return for the Division, which reflects the applicable
surrender charge, would be -17.41% for Life of Fund (6% surrender charge).
* The Fund began operations on July 5, 1994 .
(1) The MSCI-EAFE Index is an arithmetic average, weighted by market value of
the performance of 1,107 securities listed on 20 major stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
14
<PAGE> 17
G.T. GLOBAL:
MONEY MARKET FUND
REPORT ON THE FUND
The Fund's investment objective is to maximize current income while maintaining
liquidity and protecting capital.
The Fund's total return for the six months ended June 30, 1995, was 2.64%; as of
June 30, 1995, the Fund's SEC seven-day yield was 5.03%. Because it invests only
in short-term debt obligations with maturities of 13 months or less, the Fund's
performance generally reflects the level of short-term interest rates.
Early in the first half of 1995, the Federal Reserve Bank raised the Fed funds
rate by 50 basis points, to 6%, the seventh increase since February 1994. Since
this last hike, the economy has showed signs of a soft landing, where growth
slows to a moderate and sustainable rate. In line with this scenario, the
Federal Reserve changed course and eased rates by 25 basis points, down to 5.75%
on July 6, 1995. Federal Reserve officials are maintaining a close watch on the
economy for signs of renewed overheating, which may prevent further easing or
require even higher rates. Due to the high liquidity requirement of the Fund, a
large portion of assets will be kept in instruments under 30 days, while the
remainder will be allocated to slightly longer-dated maturity securities to lock
in yields as a contingency against further Fed easing.
The Fund's strategy remains conservative. We continue to invest only in
commercial paper of large issuers, rated in the highest categories by S&P,
Moody's, or of equivalent quality, and U.S. Treasury and Agency obligations.
THE G.T. GLOBAL ALLOCATOR
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
INVESTMENT OBJECTIVE G.T. GLOBAL VARIABLE INVESTMENT FUNDS
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCOME High current income G.T. Global: Variable Global Govt. Income Fund
Capital appreciation G.T. Global: Variable Strategic Income Fund
G.T. Global: Variable U.S. Govt. Income Fund
-------------------------------------------------------------------------------------------------------
GROWTH & INCOME Long-term capital appreciation G.T. Global: Variable Growth & Income Fund
Current income
-------------------------------------------------------------------------------------------------------
GROWTH: GEOGRAPHIC Long-term capital appreciation G.T. Global: Variable New Pacific Fund
G.T. Global: Variable Europe Fund
G.T. Global: Variable Latin America Fund
G.T. Global: Variable America Fund
G.T. Global: Variable International Fund
-------------------------------------------------------------------------------------------------------
GROWTH: THEME Long-term capital appreciation G.T. Global: Variable Telecommunications Fund
G.T. Global: Variable Natural Resources Fund
G.T. Global: Variable Infrastructure Fund
-------------------------------------------------------------------------------------------------------
GROWTH: AGGRESSIVE Long-term capital appreciation G.T. Global: Variable Emerging Markets Fund
-------------------------------------------------------------------------------------------------------
MONEY MARKET Maximum current income G.T. Global: Money Market Fund
Conservation of capital
-------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (84.9%)
Argentina (6.9%)
Republic of Argentina:
Discount Bond, 6.875% due 3/31/23 **.................................. USD 1,950,000 $ 1,123,688 4.7
BOCON Pre 2, 6.0625% due 4/1/01 *** **................................ USD 500,000 375,625 1.6
Par Bond, 5% due 3/31/23 ****......................................... USD 300,000 142,500 0.6
Australia (2.5%)
Australian Government, 7.5% due 7/15/05................................. AUD 950,000 600,394 2.5
Brazil (7.1%)
Republic of Brazil:
Discount Bond, 7.25% due 4/15/24 **................................... USD 1,000,000 571,250 2.4
Par Bond Series YL4, 4.25% due 4/15/24 ****........................... USD 1,000,000 446,250 1.9
C Bond, 4% due 4/15/14 *** ****..................................... USD 894,744 439,543 1.8
Earned Interest Bond, 7.25% due 4/15/06 **............................ USD 400,000 239,500 1.0
Bulgaria (3.5%)
Bulgaria:
Discount Bond Series A, 7.5625% due 7/28/24 - 144A ** *****........... USD 950,000 471,438 2.0
Past Due Interest Bond (IAB), 7.5625% due 7/28/11 **.................. USD 829,186 350,331 1.5
Canada (2.3%)
Canadian Government, 8.75% due 12/1/05.................................. CAD 700,000 537,795 2.3
Denmark (2.9%)
Kingdom of Denmark, 7% due 12/15/04..................................... DKK 4,200,000 700,908 2.9
Ecuador (1.9%)
Ecuador:
Par Bond, 3% due 2/28/25 - EURO ****.................................. USD 1,000,000 325,000 1.4
Discount Bond, 7.25% due 2/28/25 - EURO **............................ USD 250,000 125,000 0.5
France (4.2%)
France O.A.T.:
6% due 10/25/25....................................................... FRF 3,600,000 562,321 2.4
7.5% due 4/25/05...................................................... FRF 2,160,000 441,752 1.8
Germany (4.5%)
Deutschland Republic, 6.25% due 1/4/24.................................. DEM 1,360,000 831,395 3.5
Bundesobligation Series 104, 7% due 12/22/97............................ DEM 310,000 231,923 1.0
Ireland (2.0%)
Irish Gilts, 6.25% due 10/18/04......................................... IEP 350,000 482,239 2.0
Italy (6.9%)
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 4/1/00...................................................... ITL 1,100,000,000 632,319 2.6
9.5% due 1/1/05....................................................... ITL 900,000,000 465,644 1.9
Republic of Italy, 5.125% due 7/29/03................................. JPY 43,000,000 574,796 2.4
Mexico (4.0%)
United Mexican States:
Discount Bond Series B, 7.1875% due 12/31/19 **....................... USD 750,000 534,375 2.2
Aztec Bonds, 8.125% due 3/31/08 **.................................... USD 500,000 441,250 1.8
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-1
<PAGE> 19
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Nigeria (2.9%)
Central Bank of Nigeria:
Par Bond, 6.25% due 11/15/20 **** ******.............................. USD 1,500,000 $ 660,000 2.8
Promissory Notes, 5.092% due 1/5/10................................... USD 100,000 33,875 0.1
Norway (1.7%)
Norwegian Government, 9% due 1/31/99.................................... NOK 2,300,000 397,865 1.7
Philippines (2.6%)
Central Bank of the Philippines:
Par Bond Series B, 5.75% due 12/1/17 ****............................. USD 550,000 398,063 1.7
Debt Conversion Bond Series B, 6.875% due 12/1/09 **.................. USD 250,000 214,063 0.9
Poland (4.7%)
Poland:
Past Due Interest Bond, 3.25% due 10/27/14 - 144A **** *****.......... USD 1,149,000 663,548 2.8
Discount Bond, 7.125% due 10/27/24 - 144A ** *****.................... USD 384,000 293,760 1.2
Par Bond, 2.75% due 10/27/24 - 144A **** *****........................ USD 384,000 165,120 0.7
Par Bond, 2.75% due 10/27/24 - EURO ****.............................. USD 16,000 6,880 0.0
Spain (4.6%)
Kingdom of Spain:
5.75% due 3/23/02..................................................... JPY 42,000,000 585,467 2.5
8.2% due 2/28/09...................................................... ESP 81,000,000 508,550 2.1
Sweden (2.7%)
Swedish Government, 6% due 2/9/05....................................... SEK 6,500,000 636,356 2.7
United States (14.9%)
United States Treasury Note:
7.75% due 11/30/99.................................................... USD 1,330,000 1,418,944 5.9
6.25% due 5/31/00..................................................... USD 1,100,000 1,111,688 4.7
6.875% due 3/31/00.................................................... USD 1,000,000 1,034,688 4.3
Venezuela (2.1%)
Republic of Venezuela, Par Bond Series A, 6.75% due 3/31/20 ******...... USD 1,000,000 502,500 2.1
-----------
Total Government & Government Agency Obligations (cost $20,213,389) 20,278,603
-----------
Sovereign Debt (5.5%)
Morocco (4.1%)
Kingdom of Morocco, Tranche A Loan Agreement, 7.375%
due 1/1/09 **......................................................... USD 1,660,000 977,325 4.1
Russia (1.4%)
Bank for Foreign Economic Affairs (Vnesheconombank)
Loan Agreement ******* ********....................................... USD 1,000,000 325,000 1.4
-----------
Total Sovereign Debt (cost $1,788,146) ...................................... 1,302,325
-----------
Supranational Bond (3.0%)
International Bank of Reconstruction & Development, 4.5%
due 6/20/00 (cost $723,456)............................................. JPY 55,000,000 723,035 3.0
-----------
Corporate Bonds (0.8%)
Brazil (0.8%)
Banco BCN - BCN Leasing, 11% due 6/9/97 - 144A (cost $200,000) *****.... USD 200,000 198,000 0.8
----------- ----
Total Fixed Income Investments (cost $22,924,991)............................ 22,501,963 94.2
----------- ----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE> 20
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
Underlying
Nominal % of Net
Options (0.1%) Currency Amount Market Value Assets*
-------------- -------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Japanese Government Bond Call Option, strike 112.50, expires 8/29/95
(cost $14,647).......................................................... JPY 86,000,000 $ 16,948 0.1
Short-Term Investments
Repurchase Agreement (3.4%)
United States (3.4%)
Dated June 30, 1995 with State Street Bank and Trust Company, due
July 3, 1995, for an effective yield of 6.10% collateralized by $605,000
United States Treasury Bond, 9.875% due 11/15/15 (market value of
collateral is $823,436, including accrued interest). (cost $807,137).... 807,137 3.4
----------- -----
Total Investments (cost $23,746,775) *********............................... 23,326,048 97.7
Other Assets and Liabilities................................................. 546,162 2.3
----------- -----
Net Assets................................................................... $23,872,210 100.0
=========== =====
</TABLE>
------------
* Percentages indicated are based on net assets of $23,872,210.
******* Underlying loan agreement currently in default.
******** Non-income producing security.
***** 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.
*** Bond pays stated or additional interest with "payment-in-kind" (PIK)
shares.
** The coupon rate shown on floating rate note represents the rate at
period end.
**** The coupon rate shown on step-up coupon bond 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 $24,059,166 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 755,631
Unrealized depreciation: (1,488,749)
-----------
Net unrealized depreciation: $ (733,118)
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE> 21
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
-------------- -------- -------- ------------
<S> <C> <C> <C> <C>
Contracts to Buy:
Australian Dollars.......................................... 92,354 1.37525 07/20/95 $ (2,172)
Australian Dollars.......................................... 447,570 1.37665 07/20/95 (10,062)
Canadian Dollars............................................ 232,931 1.37941 07/19/95 947
Deutsche Marks.............................................. 471,322 1.39152 08/30/95 4,207
Deutsche Marks.............................................. 524,812 1.38962 08/30/95 3,973
Deutsche Marks.............................................. 519,571 1.38952 08/30/95 3,896
Deutsche Marks.............................................. 326,300 1.39646 08/30/95 4,056
French Francs............................................... 303,523 4.86370 09/13/95 256
French Francs............................................... 656,433 4.85112 09/13/95 (1,147)
Japanese Yen................................................ 431,387 83.99700 08/15/95 (1,128)
Japanese Yen................................................ 524,837 83.85500 08/15/95 (2,264)
Japanese Yen................................................ 1,662,378 83.37200 08/15/95 (16,843)
New Zealand Dollars......................................... 467,977 1.50602 07/07/95 3,177
New Zealand Dollars......................................... 491,376 1.50133 07/07/95 1,811
Norwegian Krona............................................. 242,072 6.41200 07/31/95 9,695
Pounds Sterling............................................. 793,903 0.62733 09/13/95 (3,122)
--------- ---------
Total Contracts to Buy (Payable amount $8,193,466).......... 8,188,746 (4,720)
--------- ---------
The value of Contracts to Buy as a Percentage of
Net Assets is 34.30%.
Contracts to Sell:
Australian Dollars.......................................... 856,066 1.35227 07/20/95 35,031
Australian Dollars.......................................... 321,114 1.39958 07/20/95 1,840
Canadian Dollars............................................ 59,325 1.36000 07/19/95 602
Canadian Dollars............................................ 247,489 1.37573 07/19/95 (347)
Danish Kroner............................................... 504,620 5.54360 08/14/95 (13,062)
French Francs............................................... 257,223 4.93700 09/13/95 (4,033)
French Francs............................................... 802,535 4.93200 09/13/95 (11,781)
Irish Punts................................................. 520,885 0.61233 07/31/95 (1,559)
Japanese Yen................................................ 301,603 83.66300 08/15/95 1,996
Japanese Yen................................................ 603,562 84.11500 08/15/95 730
Japanese Yen................................................ 94,993 83.66400 08/15/95 628
Japanese Yen................................................ 849,129 85.13200 08/15/95 (9,129)
New Zealand Dollars......................................... 30,084 1.48876 07/07/95 142
Norwegian Krona............................................. 649,857 6.21000 07/31/95 (5,735)
Pounds Sterling............................................. 307,888 0.62740 10/03/95 1,323
Spanish Pesetas............................................. 541,401 127.23000 08/22/95 (26,270)
Swedish Krona............................................... 653,373 7.33500 10/05/95 0
--------- ---------
Total Contracts to Sell (Receivable amount $7,571,523)...... 7,601,147 (29,624)
--------- ---------
The value of Contracts to Sell as a Percentage of Net
Assets is 31.84%.
Total Open Forward Foreign Currency Contracts, Net.... $ (34,344)
=========
</TABLE>
-----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE> 22
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- ------ ------------ -------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (89.6%)
Australia (4.7%)
Australian Government:
7% due 4/15/00 . . . . . . . . . . . . . . . . . . . . . AUD 400,000 $ 266,827 2.5
10% due 2/15/06 . . . . . . . . . . . . . . . . . . . . . AUD 150,000 111,559 1.0
New South Wales Treasury, 6.50% due 5/1/06 . . . . . . . . AUD 225,000 131,277 1.2
Austria (4.8%)
Republic of Austria, 3.75% due 2/3/09 . . . . . . . . . . . JPY 42,000,000 519,177 4.8
Canada (4.6%)
Canadian Government:
8.5% due 3/1/00 . . . . . . . . . . . . . . . . . . . . . CAD 500,000 377,767 3.5
8.75% due 12/1/05 . . . . . . . . . . . . . . . . . . . . CAD 150,000 115,141 1.1
Denmark (4.6%)
Kingdom of Denmark, 7% due 12/15/04 . . . . . . . . . . . . DKK 3,000,000 500,649 4.6
Finland (2.4%)
Finnish Housing Fund, 10.75% due 3/15/02 . . . . . . . . . FIM 1,000,000 261,565 2.4
France (10.0%)
France O.A.T., 7.5% due 4/25/05 . . . . . . . . . . . . . . FRF 4,772,000 976,437 9.0
French Treasury Bond (BTAN), 7.25% due 8/12/97 . . . . . . FRF 498,000 103,841 1.0
Germany (9.8%)
Bundesobligation Series 104, 7% due 12/22/97 . . . . . . . DEM 720,000 538,399 5.0
Deutschland Republic, 6.25% due 1/4/24 . . . . . . . . . . DEM 860,000 525,735 4.8
Ireland (2.8%)
Irish Gilts, 6.25% due 10/18/04 . . . . . . . . . . . . . . IEP 220,000 302,852 2.8
Italy (5.7%)
Italian Buoni Poliennali del Tesoro (BTPS):
9.5% due 12/1/99 . . . . . . . . . . . . . . . . . . . . ITL 555,000,000 309,531 2.9
9.5% due 1/1/05 . . . . . . . . . . . . . . . . . . . . . ITL 580,000,000 300,082 2.8
Spain (3.8%)
Kingdom of Spain:
12.25% due 3/25/00 . . . . . . . . . . . . . . . . . . . ESP 25,000,000 210,347 1.9
10% due 2/28/05 . . . . . . . . . . . . . . . . . . . . . ESP 27,920,000 208,322 1.9
Sweden (4.8%)
Swedish Government, 10.25% Due 5/5/03 . . . . . . . . . . . SEK 3,900,000 519,126 4.8
United Kingdom (6.7%)
United Kingdom Treasury, 8.5% due 12/7/05 . . . . . . . . . GBP 455,480 726,401 6.7
United States (24.9%)
United States Treasury Note:
8.5% due 11/15/00 . . . . . . . . . . . . . . . . . . . . USD 870,000 968,419 8.9
7.875% due 11/15/04 . . . . . . . . . . . . . . . . . . . USD 830,000 924,152 8.5
6.25% due 5/31/00 . . . . . . . . . . . . . . . . . . . . USD 800,000 809,249 7.5
-----------
Total Government & Government Agency Obligations
(cost $9,540,361) . . . . . . . . . . . . . . . . . . . . . . 9,706,855
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-5
<PAGE> 23
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- ------ ------------ -------
<S> <C> <C> <C> <C>
Supranational Bond (4.7%)
International Bank of Reconstruction & Development, 4.75%
due 12/20/04 (cost $509,490). . . . . . . . . . . . . . JPY 37,000,000 $ 506,218 4.7
----------- -----
Total Fixed Income Investments (cost $10,049,851) . . . . . 10,213,073 94.3
----------- -----
<CAPTION>
Underlying
Nominal
Options (0.1%) Amount
-------------- ------
<S> <C> <C> <C> <C>
Japanese Government Bond Call Option, strike 112.50,
expires 8/29/95 (cost $6,727) . . . . . . . . . . . . . . . JPY 39,500,000 7,784 0.1
<CAPTION>
Principal
Short-Term Investments Amount
---------------------- ------
<S> <C> <C> <C> <C>
Treasury Bills (2.4%)
Mexico (2.4%)
Mexican Tesobonos, effective yield 16.02% due 8/3/95
(cost $257,223) . . . . . . . . . . . . . . . . . . . . USD 261,000 257,223 2.4
Repurchase Agreement (1.5%)
United States (1.5%)
Dated June 30, 1995 with State Street Bank and Trust
Company, due July 3, 1995, for an effective yield of
6.10% collateralized by $125,000 United States Treasury
Bond, 9.875% due 11/15/15 (market value of collateral is
$170,131, including accrued interest). (cost $165,028). . 165,028 1.5
----------- -----
Total Short-Term Investments (cost $422,251) . . . . . . . . . 422,251 3.9
----------- -----
Total Investments (cost $10,478,829)** . . . . . . . . . . . . 10,643,108 98.3
----------- -----
Other Assets and Liabilities . . . . . . . . . . . . . . . . . 179,528 1.7
----------- -----
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . $10,822,636 100.0
=========== =====
</TABLE>
-----------------
* Percentages indicated are based on net assets of $10,822,636.
** For Federal income tax purposes, cost is $10,478,829 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $199,976
Unrealized depreciation: (35,697)
--------
Net unrealized appreciation: $164,279
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-6
<PAGE> 24
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME FUND
Forward Foreign Currency Contracts Outstanding
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
Contracts to Buy: (U.S. Dollars) Price Date (Depreciation)
----------------- -------------- ----- ---- --------------
<S> <C> <C> <C> <C>
Australian Dollars . . . . . . . . . . . . . . . . . . . . . . 39,074 1.39198 07/20/95 $ (438)
Australian Dollars . . . . . . . . . . . . . . . . . . . . . . 261,438 1.40174 07/20/95 (1,093)
Australian Dollars . . . . . . . . . . . . . . . . . . . . . . 61,300 1.35930 07/20/95 (2,178)
Canadian Dollars . . . . . . . . . . . . . . . . . . . . . . . 29,116 1.38195 07/19/95 172
Deutsche Marks . . . . . . . . . . . . . . . . . . . . . . . . 532,956 1.38667 08/30/95 2,909
Deutsche Marks . . . . . . . . . . . . . . . . . . . . . . . . 326,300 1.37818 08/30/95 (218)
Deutsche Marks . . . . . . . . . . . . . . . . . . . . . . . . 183,787 1.37690 08/30/95 (294)
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 432,134 4.85112 09/13/95 (755)
Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . 49,574 83.79000 08/15/95 (252)
Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . 271,324 83.83400 08/15/95 (1,239)
Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . 542,648 83.99700 08/15/95 (1,419)
Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . 860,162 83.37200 08/15/95 (8,715)
New Zealand Dollars . . . . . . . . . . . . . . . . . . . . . . 300,842 1.50602 07/07/95 2,042
New Zealand Dollars . . . . . . . . . . . . . . . . . . . . . . 208,584 1.50133 07/07/95 769
New Zealand Dollars . . . . . . . . . . . . . . . . . . . . . . 33,427 1.52590 07/07/95 659
--------- ---------
Total Contracts to Buy (Payable amount $4,142,716) . . . . . . 4,132,666 (10,050)
--------- ---------
</TABLE>
The value of Contracts to Buy as a Percentage of Net Assets is 38.19%.
<TABLE>
<CAPTION>
Contracts to Sell:
------------------
<S> <C> <C> <C> <C>
Australian Dollars . . . . . . . . . . . . . . . . . . . . . . 663,540 1.35227 07/20/95 27,152
Australian Dollars . . . . . . . . . . . . . . . . . . . . . . 113,669 1.39958 07/20/95 651
Canadian Dollars . . . . . . . . . . . . . . . . . . . . . . . 206,726 1.37573 07/19/95 (290)
Danish Kroner . . . . . . . . . . . . . . . . . . . . . . . . . 314,809 5.54360 08/14/95 (8,149)
Finnish Marks . . . . . . . . . . . . . . . . . . . . . . . . . 269,371 4.27200 09/28/95 (177)
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 566,053 5.01650 08/30/95 (17,862)
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 547,370 4.93200 09/13/95 (8,035)
Irish Punts . . . . . . . . . . . . . . . . . . . . . . . . . . 314,188 0.61691 09/26/95 (2,959)
Japanese Yen . . . . . . . . . . . . . . . . . . . . . . . . . 529,883 82.63000 01/08/00 10,175
Pounds Sterling . . . . . . . . . . . . . . . . . . . . . . . . 182,511 0.62739 10/03/95 788
Spanish Pesetas . . . . . . . . . . . . . . . . . . . . . . . . 214,776 127.23000 08/22/95 (10,422)
Swedish Krona . . . . . . . . . . . . . . . . . . . . . . . . 430,121 7.33500 10/05/95 0
--------- --------
Total Contracts to Sell (Receivable amount $4,343,889) . . . . 4,353,017 (9,128)
--------- --------
The Value of Contracts to Sell as a Percentage of Net Assets is 40.22%.
Total Open Forward Foreign Currency Contracts, Net . . . . $(19,178)
========
</TABLE>
-------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-7
<PAGE> 25
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Amount Market Value Assets*
------------------------ --------- ------------ --------
<S> <C> <C> <C>
Government & Government Agency Obligations (52.1%)
United States (52.1%)
United States Treasury Note:
7.625% due 2/15/25................................................................... 550,000 $ 620,640 15.0
6.25% due 5/31/00.................................................................... 500,000 505,781 12.3
Sallie Mae, 7.5% due 3/8/00............................................................ 350,000 371,379 9.0
Federal Home Loan Mortgage Corp., 7.125% due 7/21/99................................... 350,000 363,107 8.8
Federal National Mortgage Association:
7.85% due 9/10/98.................................................................... 100,000 105,134 2.6
6.8% due 1/10/03..................................................................... 90,000 92,282 2.2
Financial Assistance Corp., 9.375% due 7/21/03......................................... 75,000 88,797 2.2
-----------
Total Government & Government Agency Obligations (cost $2,048,874).......................... 2,147,120
-----------
Supranational Bond (7.9%)
United States (7.9%)
International Bank of Reconstruction & Development,
5.25% due 9/16/03 (cost $314,850).................................................... 350,000 327,761 7.9
Corporate Bond (5.2%)
United States (5.2%)
Asian Development Bank, 8% due 4/30/01 (cost $199,086)................................. 200,000 216,519 5.2
----------- -----
Total Fixed Income Investments (cost $2,562,810)............................................ 2,691,400 65.2
----------- -----
<CAPTION>
Short-Term Investments
----------------------
Government & Government Agency Obligation (23.7%)
United States (23.7%)
United States Treasury Bill, effective yield 5.48%, due 11/9/95
(cost $980,059)...................................................................... 1,000,000 980,295 23.7
Repurchase Agreement (9.1%)
United States (9.1%)
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $285,000
United States Treasury Bond, 9.875% due 11/15/15 (market value of
collateral is $387,899 including accrued interest). (cost $376,064).................. 376,064 9.1
----------- -----
Total Short-Term Investments (cost $1,356,123).............................................. 1,356,359 32.8
----------- -----
Total Investments (cost $3,918,933)**....................................................... 4,047,759 98.0
Other Assets and Liabilities................................................................ 83,313 2.0
----------- -----
Net Assets.................................................................................. $ 4,131,072 100.0
=========== =====
</TABLE>
-------------------------
* Percentages indicated are based on net assets of $4,131,072
** For Federal income tax purposes, cost is $3,918,933 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $137,768
Unrealized depreciation: (8,942)
--------
Net unrealized appreciation: $128,826
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-8
<PAGE> 26
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Materials/Basic Industries (22.7%)
Hylsamex, S.A. de C.V. -- 144A ADR ** *** + . . . . . . . . . . . MEX 34,400 $ 619,200 3.0
Metals-Steel
Apasco SA de CV *** . . . . . . . . . . . . . . . . . . . . . . . MEX 155,000 616,026 2.9
Cement
Grupo Simec, S.A. de C.V. -- ADR ** *** . . . . . . . . . . . . . MEX 50,000 493,750 2.4
Metals-Steel
Grupo Mexico S.A. "B" . . . . . . . . . . . . . . . . . . . . . . MEX 100,000 488,782 2.3
Metals-Non-Ferrous
Grupo Industrial Durango, S.A. de C.V. "A" -- ADR ** ***. . . . . MEX 54,150 433,200 2.1
Forest Products
Cia de Minas Buenaventura "C" *** . . . . . . . . . . . . . . . . PERU 67,768 390,383 1.9
Gold
Angel Estrada y Cia S.A.. . . . . . . . . . . . . . . . . . . . . ARG 93,000 367,460 1.8
Paper/Packaging
Companhia Siderurgica Nacional S.A.***. . . . . . . . . . . . . . BRZL 16,100,000 367,325 1.8
Metal-Steel
Internacional de Ceramica, S.A. de C.V. "A" -- ADR ** *** . . . . MEX 37,900 298,463 1.4
Building Materials & Components
Cemento Argos S.A. ***. . . . . . . . . . . . . . . . . . . . . . COL 28,375 256,373 1.2
Cement
Caemi Mineracao e Metalurgia S.A. Preferred *** . . . . . . . . . BRZL 2,300,000 201,250 1.0
Metals-Steel
Industrias Penoles S.A. "CP" ***. . . . . . . . . . . . . . . . . MEX 65,000 194,375 0.9
Metals-Non-Ferrous
----------
4,726,587
----------
Finance (20.3%)
---------------
First Financial Caribbean Corp. . . . . . . . . . . . . . . . . . US 55,000 811,250 3.9
Other Financial
Banco Bradesco S.A. Preferred . . . . . . . . . . . . . . . . . . BRZL 67,681,950 573,825 2.7
Banks-Money Center
Grupo Financiero Banamex Accival, S.A. de C.V.: . . . . . . . . . MEX -- -- 2.4
Banks-Money Center
"B" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 310,000 476,923 --
"L" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 15,500 23,597 --
Grupo Financiero Bancomer, S.A. de C.V.:. . . . . . . . . . . . . MEX -- -- 2.0
Banks-Money Center
"B" *** . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 1,388,000 407,058 --
"L" *** . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 62,519 16,531 --
Banco LatinoAmericano de Exportaciones, S.A. (Bladex) ** . . . . PN 11,700 387,563 1.9
Other Financial
Administradora de Fondos de Pensiones Provida S.A. -- ADR ** . . CHLE 14,100 378,938 1.8
Other Financial
Banco Nacional S.A. Preferred . . . . . . . . . . . . . . . . . . BRZL 17,366,000 337,882 1.6
Banks-Money Center
Banco Mercantil do Sao Paulo S.A. Preferred . . . . . . . . . . . BRZL 4,728,000 323,765 1.6
Banks-Regional
Banco Ganadero S.A.:. . . . . . . . . . . . . . . . . . . . . . . COL -- -- 1.3
Banks-Money Center
ADR Preferred ** . . . . . . . . . . . . . . . . . . . . . . . -- 11,400 233,700 --
ADR ** . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 1,700 40,800 --
Interbanc *** . . . . . . . . . . . . . . . . . . . . . . . . . . PERU 188,318 221,202 1.1
Banks-Money Center
----------
4,233,034
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-9
<PAGE> 27
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Services (16.5%)
----------------
CPT Telefonica del Peru:. . . . . . . . . . . . . . . . . . . . . PERU -- $ -- 3.1
Telephone Networks
"B" *** . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 306,649 524,422 --
"A" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 80,000 130,693 --
Telecomunicacoes Brasileiras S.A. (Telebras) Preferred. . . . . . BRZL 14,612,135 481,247 2.3
Telephone Networks
Ceteco Holding N.V. . . . . . . . . . . . . . . . . . . . . . . . NETH 15,000 455,132 2.2
Retailers-Other
Gran Cadena de Almacenes Colombianos S.A.:. . . . . . . . . . . . COL -- -- 2.1
Retailers-Other
144A ADR ** *** + . . . . . . . . . . . . . . . . . . . . . . . -- 20,000 415,000 --
Common ***. . . . . . . . . . . . . . . . . . . . . . . . . . . -- 10,000 19,069 --
Lojas Americanas S.A. Preferred *** . . . . . . . . . . . . . . . BRZL 16,000,000 356,522 1.7
Retailers-Other
Compania de Telecomunicaciones de Chile S.A. -- ADR ** . . . . . CHLE 3,700 301,088 1.4
Telephone Networks
Grupo Fernandez Editores "B" ***. . . . . . . . . . . . . . . . . MEX 639,000 241,673 1.2
Broadcasting & Publishing
Mesbla S.A. Preferred *** . . . . . . . . . . . . . . . . . . . . BRZL 3,339,000 199,614 1.0
Retailers-Other
Grupo Marti S.A.. . . . . . . . . . . . . . . . . . . . . . . . . MEX 218,000 111,795 0.5
Retailers-Other
Casa Anglo Brasil S.A. Preferred ***. . . . . . . . . . . . . . . BRZL 1,138,810 107,692 0.5
Retailers-Other
Grupo Situr, S.A. de C.V. "B" . . . . . . . . . . . . . . . . . . MEX 216,000 103,846 0.5
Leisure & Tourism
----------
3,447,793
----------
Consumer Non-Durables (12.5%)
-----------------------------
Panamerican Beverages, Inc. "A" ** . . . . . . . . . . . . . . . MEX 23,000 690,000 3.3
Beverages-Non alcoholic
Fomento Economico Mexicano, S.A. de C.V. (Femsa) "B". . . . . . . MEX 197,000 460,929 2.2
Beverages-Alcoholic
Embotelladora Andina S.A. -- ADR ** . . . . . . . . . . . . . . . CHLE 10,000 351,250 1.7
Beverages-Non alcoholic
Industrias J B Duarte S.A. Preferred. . . . . . . . . . . . . . . BRZL 215,600,000 276,530 1.3
Food
Bavaria *** . . . . . . . . . . . . . . . . . . . . . . . . . . . COL 83,906 247,623 1.2
Beverages-Alcoholic
San Juan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . PERU -- -- 1.1
Beverages-Alcoholic
Common. . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 114,471 186,106 --
"T" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 18,624 32,269 --
Tectoy Industria Brinquedos Preferred *** . . . . . . . . . . . . BRZL 224,640,000 134,296 0.6
Toys
Inversiones Aledo *** . . . . . . . . . . . . . . . . . . . . . . VENZ 472,885 128,282 0.6
Food
Ekco S.A. "CP" ***. . . . . . . . . . . . . . . . . . . . . . . . MEX 656,000 114,590 0.5
Household Products
----------
2,621,875
----------
Multi-Industry/Miscellaneous (6.6%)
-----------------------------------
Grupo Sidek, S.A. de C.V. -- ADR ** ***. . . . . . . . . . . . . MEX 179,400 829,725 4.0
Conglomerate
Alfa, S.A. de C.V.. . . . . . . . . . . . . . . . . . . . . . . . MEX 45,000 547,356 2.6
Conglomerate
----------
1,377,081
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-10
<PAGE> 28
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Consumer Durables (3.7%)
------------------------
Refrigeracao Parama S.A. Preferred. . . . . . . . . . . . . . . . . . . BRZL 207,512,063 $ 403,746 1.9
Appliances & Household
Brasinca Industrial S.A. Preferred ***. . . . . . . . . . . . . . . . . BRZL 670,500 211,353 1.0
Auto Parts
Brasmotor S.A. Preferred *** . . . . . . . . . . . . . . . . . . . . . BRZL 940,000 173,696 0.8
Appliances & Household
-----------
788,795
-----------
Energy (1.3%)
Industrias Ventane. . . . . . . . . . . . . . . . . . . . . . . . . . . VENZ 714,215 261,560 1.3
Gas Production & Distribution
Capital Goods (1.1%)
Inepar S.A. Preferred . . . . . . . . . . . . . . . . . . . . . . . . . BRZL 172,400,000 234,239 1.1
Industrial Components
----------- -----
Total Equity Investments (cost $18,877,621). . . . . . . . . . . . . . . . 17,690,964 84.7
----------- -----
<CAPTION> No. of
Rights (0.0%) Rights
------------- ------
<S> <C> <C> <C> <C>
Banco Bradesco S.A. Preferred Rights, expire 7/13/95 (cost $0) ***. . . BRZL 1,222,201 1,328 0.0
Banks-Money Center
<CAPTION>
Principal
Short-Term Investments Currency Amount
---------------------- -------- ---------
<S> <C> <C> <C> <C>
Treasury Bills (11.0%)
----------------------
Mexico (11.0%)
--------------
Mexican Cetes, effective yield 47.69%, due 1/18/96. . . . . . . . . . . MXN 13,738,960 1,738,793 8.3
Mexican Tesobonos, effective yield 21.80%, due 7/13/95. . . . . . . . . USD 555,000 550,997 2.7
----------- -----
Total Short-Term Investments (cost $2,756,647) . . . . . . . . . . . . . . 2,289,790 11.0
----------- -----
Total Investments (cost $21,634,268) ++. . . . . . . . . . . . . . . . . . 19,982,082 95.7
Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . 888,407 4.3
----------- -----
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,870,489 100.0
=========== =====
</TABLE>
* Percentages indicated are based on net assets of $20,870,489.
** U.S. currency denominated.
*** Non-income producing security.
+ 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 $21,749,842 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,900,763
Unrealized depreciation: (3,668,523)
------------
Net unrealized depreciation: $(1,767,760)
============
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F-11
<PAGE> 29
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE LATIN AMERICA FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS). . . . . . . . . . . . 1.8 1.8
Brazil (BRZL/BRL). . . . . . . . . . . . . 20.9 20.9
Chile (CHLE/CLP) . . . . . . . . . . . . . 4.9 4.9
Colombia (COL/COP) . . . . . . . . . . . . 5.8 5.8
Mexico (MEX/MXN) . . . . . . . . . . . . . 34.2 11.0 45.2
Netherlands (NETH/NLG) . . . . . . . . . . 2.2 2.2
Panama (PN/PND). . . . . . . . . . . . . . 1.9 1.9
Peru (PERU/PES). . . . . . . . . . . . . . 7.2 7.2
United States (US/USD) . . . . . . . . . . 3.9 4.3 8.2
Venezuela (VENZ/VEB) . . . . . . . . . . . 1.9 1.9
---- ---- -----
Total. . . . . . . . . . . . . . . . . . . 84.7 15.3 100.0
==== ==== =====
</TABLE>
-------------
* Percentages indicated are based on net assets of $20,870,489.
The accompanying notes are an integral part of the financial statements.
F-12
<PAGE> 30
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Finance (18.1%)
National Australia Bank Ltd...................... AUSL 64,300 $508,366 1.8
Banks-Money Center
Swiss Bank Corp. (Bearer)**...................... SWTZ 1,074 380,706 1.4
Banks-Money Center
Union Bank of Switzerland (Bearer)............... SWTZ 290 300,582 1.1
Banks-Money Center
S.G. Warburg Group PLC........................... UK 24,200 280,371 1.0
Investment Management
Fortis Amev N.V.................................. NETH 5,070 276,575 1.0
Other Financial
AEGON N.V........................................ NETH 7,562 261,668 0.9
Insurance-Life
CS Holding AG -- Registered**.................... SWTZ 2,825 258,938 0.9
Banks-Money Center
Generale de Banque S.A........................... BEL 754 242,345 0.9
Banks-Money Center
Internationale Nederlanden Groep N.V............. NETH 3,995 221,027 0.8
Other Financial
ABN-AMRO Holding N.V............................. NETH -- -- 0.8
Banks-Regional
Common......................................... -- 5,398 208,393 --
Convertible Preferred, 6% til 10/31/03......... -- 55 2,003 --
National Westminster Bank PLC.................... UK 22,700 197,289 0.7
Banks-Money Center
Australia & New Zealand Banking Group Ltd........ AUSL 50,000 177,746 0.6
Banks-Money Center
Dresdner Bank AG................................. GER 4,540 131,356 0.5
Banks-Money Center
Commercial Union PLC............................. UK 13,382 124,499 0.5
Insurance-Multi-Line
General Accident PLC............................. UK 12,300 112,672 0.4
Insurance-Property/Casualty
Ayala Land, Inc. "B"............................. PHIL 93,750 108,498 0.4
Real Estate
Banco Popular Espanol S.A........................ SPN 710 105,576 0.4
Banks-Money Center
MAI PLC:......................................... UK -- -- 0.4
Other Financial
Common......................................... -- 12,400 50,878 --
Convertible Preferred, 5.9% til 12/31/49....... -- 31,196 47,627 --
M & G Group PLC.................................. UK 5,000 84,685 0.3
Investment Management
Hopewell Holdings................................ HK 94,000 79,576 0.3
Real Estate
Henderson Investment Ltd......................... HK 94,000 77,146 0.3
Real Estate
Banco de Santander S.A........................... SPN 1,915 75,540 0.3
Banks-Money Center
Kredietbank N.V.................................. BEL 315 74,549 0.3
Banks-Regional
Sparebanken NOR (Union Bank of Norway)........... NOR 3,000 72,571 0.3
Banks-Regional
Sun Hung Kai Properties Ltd...................... HK 9,400 69,553 0.3
Real Estate
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-13
<PAGE> 31
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Societe Generale Paris........................... FR 475 $ 55,525 0.2
Banks-Money Center
Gerrard & National Holdings PLC.................. UK 7,080 48,416 0.2
Securities Broker
Lloyds Abbey Life PLC............................ UK 7,000 43,527 0.2
Insurance-Life
Sedgwick Group PLC............................... UK 17,000 37,309 0.1
Insurance-Multi-Line
UAP Compagnie.................................... FR 1,316 34,511 0.1
Insurance-Multi-Line
Amoy Properties Ltd.............................. HK 39,000 34,276 0.1
Real Estate
Compagnie Financiere de Paribas S.A.............. FR 524 31,502 0.1
Other Financial
Commerzbank AG................................... GER 130 31,106 0.1
Banks-Money Center
First Tennessee National Corp.................... US 600 27,825 0.1
Banks-Regional
Henderson Land Development Co., Ltd.............. HK 5,000 27,400 0.1
Real Estate
Realty Development Corp., Ltd. "A"............... HK 10,000 26,237 0.1
Real Estate
IKB Deutsche Industriebank AG:................... GER -- -- 0.1
Banks-Regional
Common......................................... -- 100 18,807 --
New**.......................................... -- 22 3,978 --
----------
4,951,154
----------
Energy (10.3%)
Elektrowatt AG................................... SWTZ 1,580 454,370 1.6
Electrical & Gas Utilities
Penn West Petroleum Ltd.**....................... CAN 100,000 446,039 1.6
Oil
Electrabel S.A................................... BEL 1,880 397,327 1.4
Electrical & Gas Utilities
Royal Dutch Petroleum Co......................... NETH 2,678 327,100 1.2
Oil
Reunies Electrobel & Tractebel S.A............... BEL 763 277,033 1.0
Electrical & Gas Utilities
Mobil Corp....................................... US 2,400 230,400 0.8
Oil
Elf Aquitaine.................................... FR 2,720 201,035 0.7
Oil
Groupe Bruxelles Lambert S.A.:................... BEL -- -- 0.5
Oil
Common......................................... -- 1,050 143,818 --
VVPR**......................................... -- 17 2,281 --
Exxon Corp....................................... US 1,700 120,063 0.4
Oil
British Gas PLC.................................. UK 21,000 96,684 0.3
Gas Production & Distribution
Pacific Gas and Electric Co...................... US 2,950 85,550 0.3
Electrical & Gas Utilities
Shell Transport & Trading Co., PLC............... UK 6,530 78,042 0.3
Oil
Union Electrica Fenosa S.A....................... SPN 5,000 23,461 0.1
Electrical & Gas Utilities
Iberdrola S.A.................................... SPN 2,000 15,068 0.1
Electrical & Gas Utilities
Chevron Corp..................................... US 160 7,460 0.0
Oil
----------
2,905,731
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-14
<PAGE> 32
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Services (8.4%)
Telecom Corporation of New Zealand Limited............. NZ -- $ -- 2.2
Telephone Networks
Common-NZD........................................... -- 149,200 558,801 --
Common-AUD........................................... -- 16,960 62,703 --
AT&T Corp.............................................. US 5,500 292,188 1.1
Telephone-Long Distance
Royal PTT Nederland N.V................................ NETH 5,915 212,696 0.8
Telephone Networks
J.C. Penney Co., Inc................................... US 4,020 192,960 0.7
Retailers-Other
McGraw-Hill, Inc....................................... US 2,490 188,929 0.7
Broadcasting & Publishing
Dun & Bradstreet Corp.................................. US 3,300 173,250 0.6
Broadcasting & Publishing
Tele Danmark AS "B".................................... DEN 2,570 143,122 0.5
Telephone Networks
British Telecommunications PLC......................... UK 19,546 121,852 0.4
Telephone Networks
THORN EMI PLC.......................................... UK 5,500 113,884 0.4
Leisure & Tourism
Granada PLC, Convertible Preferred, 7.5% til 4/30/03... UK 23,482 80,290 0.3
Leisure & Tourism
Cathay Pacific Airways................................. HK 36,000 52,577 0.2
Transportation-Airlines
Stet Societa' Finanziaria Telefonica S.p.A............. ITLY 16,000 44,275 0.2
Telephone Networks
Sime Darby Ltd......................................... HK 28,000 30,760 0.1
Wholesale & International Trade
AirTouch Communications, Inc.**........................ US 900 25,650 0.1
Wireless Communications
Pacific Telesis Group.................................. US 900 24,075 0.1
Telephone-Regional/Local
Telecom Italia S.p.A................................... ITLY 4,500 12,205 0.0
Telephone Networks
Mandarin Oriental International Ltd.** ***............. HK 10,000 10,000 0.0
Leisure & Tourism
----------
2,340,217
----------
Materials/Basic Industries (8.3%)
Broken Hill Proprietary Co., Ltd....................... AUSL 44,591 549,105 2.0
Misc. Materials & Components
Amcor Ltd.............................................. AUSL 71,200 525,458 1.9
Paper/Packaging
Solvay S.A. "A"........................................ BEL 751 411,984 1.5
Chemicals
Akzo Nobel N.V......................................... NETH 2,644 316,119 1.1
Chemicals
Monsanto Co............................................ US 3,300 297,413 1.1
Chemicals
RWE AG................................................. GER 480 166,828 0.6
Misc. Materials & Components
BASF AG................................................ GER 100 21,367 0.1
Chemicals
----------
2,288,274
----------
Health Care (7.6%)
Bristol Myers Squibb Co................................ US 26,400 1,798,500 6.5
Pharmaceuticals
Bayer AG............................................... GER 1,250 311,031 1.1
Pharmaceuticals
----------
2,109,531
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-15
<PAGE> 33
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Capital Goods (4.2%)
General Electric PLC................................... UK 51,900 $ 253,392 0.9
Aerospace/Defense
Mannesmann AG**........................................ GER 770 235,317 0.8
Machinery & Engineering
Siemens AG............................................. GER 427 212,033 0.8
Telecom Equipment
Thomson CSF S.A.**..................................... FR 6,550 146,786 0.5
Aerospace/Defense
Rolls-Royce PLC........................................ UK 42,548 118,076 0.4
Aerospace/Defense
Lockheed Martin Corp.**................................ US 1,526 96,329 0.3
Aerospace/Defense
BICC PLC............................................... UK 17,200 81,241 0.3
Industrial Components
Trafalgar House PLC:................................... UK -- -- 0.2
Machinery & Engineering
Convertible Preferred, 6% til 1/31/49................ -- 44,800 52,366 --
Common**............................................. -- 4,800 3,435 --
-----------
1,198,975
-----------
Consumer Non-Durables (3.9%)
Noble China**.......................................... CAN 100,000 360,472 1.3
Beverages-Alcoholic
Philip Morris Cos., Inc................................ US 4,100 304,938 1.1
Food
Brown-Forman Corp. "B"................................. US 6,200 206,925 0.7
Beverages-Alcoholic
Booker PLC............................................. UK 13,800 91,298 0.3
Food
Bass PLC............................................... UK 6,600 63,135 0.2
Beverages-Alcoholic
Associated British Foods Group PLC..................... UK 4,200 44,351 0.2
Food
Dairy Farm International Holdings Ltd.................. HK 36,000 30,960 0.1
Food
-----------
1,102,079
-----------
Consumer Durables (1.1%)
GKN PLC................................................ UK 28,600 291,549 1.1
Auto Parts
Multi-Industry/Miscellaneous (1.0%)
Veba AG................................................ GER 540 212,289 0.8
Conglomerate
Hutchison Whampoa...................................... HK 13,000 62,839 0.2
Conglomerate
-----------
275,128
-----------
Technology (0.6%)
Alcatel Alsthom Compagnie Generale d'Electricite....... FR 1,790 161,194 0.6
Telecom Technology
----------- ----
Total Equity Investments (cost $16,658,677)............... 17,623,832 63.5
----------- ----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-16
<PAGE> 34
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (28.5%)
Canada (1.0%)
Canadian Government, 8.75% due 12/1/05............................. CAD 380,000 $ 291,690 1.0
Denmark (1.1%)
Kingdom of Denmark, 7% due 12/15/04................................ DKK 1,820,000 304,098 1.1
Germany (11.0%)
Deutschland Republic:
6.75% due 4/22/03................................................ DEM 2,000,000 1,427,414 5.1
6% due 6/20/16................................................... DEM 850,000 515,441 1.9
6.25% due 1/4/24................................................. DEM 670,000 409,585 1.5
Treuhandanstalt:
6.375% due 7/1/99................................................ DEM 500,000 365,823 1.3
7.375% due 12/2/02............................................... DEM 440,000 325,743 1.2
Italy (3.3%)
Republic of Italy, 5.125% due 7/29/03.............................. JPY 50,000,000 668,368 2.4
Buoni Poliennali Del Tesoro (BTPS), 8.5% due 8/1/04................ ITL 520,000,000 252,901 0.9
Netherlands (0.8%)
Netherland Government, 5.75% due 1/15/04........................... NLG 360,000 215,094 0.8
New Zealand (1.0%)
New Zealand Government, 8% due 4/15/04............................. NZD 400,000 274,412 1.0
Sweden (0.7%)
Swedish Government, 6% due 2/9/05.................................. SEK 2,100,000 207,715 0.7
United Kingdom (6.1%)
United Kingdom Treasury:
7.25% due 3/30/98................................................ GBP 465,000 727,718 2.6
6.75% due 11/26/04............................................... GBP 440,000 621,462 2.2
8% due 9/25/09................................................... GBP 235,000 358,428 1.3
United States (3.5%)
United States Treasury Note:
6.25% due 8/15/23................................................ USD 645,000 610,129 2.2
7.25% due 5/15/04................................................ USD 330,000 352,328 1.3
----------
Total Government & Government Agency Obligations (cost $7,182,583)...... 7,928,349
----------
Corporate Bonds (5.4%)
Germany (1.2%)
Commerzbank AG:
Convertible Bond, 7% due 12/31/00+............................... DEM 187,000 192,749 0.7
8% due 6/1/07+................................................... DEM 1,000 743 0.0
Deutsche Bank AG, 9% due 12/31/02.................................. DEM 175,000 147,468 0.5
IKB Deutsche Industriebank, 6.45% due 3/31/06...................... DEM 1,500 1,012 0.0
Switzerland (0.1%)
Elektrowatt AG, 3% due 4/29/04..................................... CHF 28,000 21,128 0.1
United Kingdom (3.2%)
Daily Mail & General Trust:
Convertible Bond, 5.75% due 9/26/03.............................. GBP 86,000 158,480 0.6
Convertible Bond, 8.75% due 9/27/05.............................. GBP 56,000 149,618 0.5
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-17
<PAGE> 35
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Land Securities PLC:
Convertible Bond, 9.375% due 7/31/04......................................... GBP 140,000 $ 242,824 0.9
Convertible Bond, 7% due 9/30/08............................................. GBP 10,000 16,380 0.1
S.G. Warburg Group PLC, Convertible Bond, 6.5% due 8/4/08 (Bearer)............. GBP 90,000 140,983 0.5
Elf Enterprises Finance PLC, 8.75% due 6/27/06................................. GBP 65,000 101,821 0.4
Reckitt & Colman Capital, Convertible Bond, 9.5% due 3/31/05................... GBP 22,000 54,230 0.2
United States (0.9%)
Siemens Capital Corp., 8% due 6/24/02 (Issued with warrants)................... USD 180,000 248,400 0.9
-----------
Total Corporate Bonds (cost $1,596,981)............................................. 1,475,836
----------- -----
Total Fixed Income Investments (cost $8,779,564).................................... 9,404,185 33.9
----------- -----
</TABLE>
<TABLE>
<CAPTION>
No. of
Warrants (0.2%) Country Warrants
--------------- ------- --------
<S> <C> <C> <C> <C>
Deutsche Bank AG Warrants, expire 6/30/95**...................................... GER 350 36,076 0.2
Banks-Money Center
Elektrowatt AG Warrants, expire 4/28/97**........................................ SWTZ 140 2,919 0.0
Electrical & Gas Utilities
Henderson Investment Warrants, expire 3/31/96**.................................. HK 9,400 668 0.0
Investment Management
Groupe Bruxelles Lambert S.A. Warrants, expire 12/20/98**........................ BEL 51 551 0.0
Oil
Commerzbank AG Warrants, expire 12/10/99**....................................... GER 6 102 0.0
Banks-Money Center
----------- -----
Total Warrants (cost $35,103)....................................................... 40,316 0.2
----------- -----
Short-Term Investments
Repurchase Agreement (1.4%)
United States (1.4%)
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $290,000
United States Treasury Bond, 9.875% due 11/15/15 (market value of
collateral is $394,704 including accrued interest).
(cost $381,065).............................................................. 381,065 1.4
----------- -----
Total Investments (cost $25,854,409)++.............................................. 27,449,398 99.0
Other Assets and Liabilities........................................................ 286,806 1.0
----------- -----
Net Assets.......................................................................... $27,736,204 100.0
=========== =====
</TABLE>
-------------------------
* Percentages indicated are based on net assets of $27,736,204.
** Non-income producing security.
*** U.S. currency denominated.
+ The coupon rate shown on floating rate note represents the rate at period
end.
++ For Federal income tax purposes, cost is $25,885,766 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $2,493,520
Unrealized depreciation: (929,888)
----------
Net unrealized appreciation: $1,563,632
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-18
<PAGE> 36
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
----------------------------------------------
Fixed Income,
Rights & Short-Term
Country (Country Code/Currency Code) Equity Warrants & Other Total
------------------------------------ ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD)..................... 6.3 6.3
Belgium (BEL/BEF)........................ 5.6 5.6
Canada (CAN/CAD)......................... 2.9 1.0 3.9
Denmark (DEN/DKK)........................ 0.5 1.1 1.6
France (FR/FRF).......................... 2.2 2.2
Germany (GER/DEM)........................ 4.9 12.4 17.3
Hong Kong (HK/HKD)....................... 1.8 1.8
Italy (ITLY/ITL)......................... 0.2 3.3 3.5
Netherlands (NETH/NLG)................... 6.6 0.8 7.4
New Zealand (NZ/NZD)..................... 2.2 1.0 3.2
Norway (NOR/NOK)......................... 0.3 0.3
Philippines (PHIL/PHP)................... 0.4 0.4
Spain (SPN/ESP).......................... 0.9 0.9
Sweden (SWDN/SEK)........................ 0.7 0.7
Switzerland (SWTZ/CHF)................... 5.0 0.1 5.1
United Kingdom (UK/GBP).................. 9.1 9.3 18.4
United States (US/USD)................... 14.6 4.4 2.4 21.4
---- ---- --- -----
Total.................................... 63.5 34.1 2.4 100.0
==== ==== === =====
</TABLE>
-------------------------
* Percentages indicated are based on net assets of $27,736,204.
===========================================================================
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
-------------- -------- -------- --------------
Contracts to Sell:
------------------
<S> <C> <C> <C> <C>
Deutsche Marks............................................................ 1,075,230 1.43800 07/25/95 $ (42,546)
Deutsche Marks............................................................ 1,558,986 1.43286 08/30/95 (58,492)
French Francs............................................................. 341,916 4.95000 08/04/95 (6,562)
French Francs............................................................. 180,624 4.96615 08/16/95 (3,988)
Japanese Yen.............................................................. 148,332 82.00000 08/10/95 4,107
Japanese Yen.............................................................. 243,917 85.61500 08/31/95 (4,473)
Netherland Guilders....................................................... 647,124 1.59740 08/15/95 (21,106)
Netherland Guilders....................................................... 1,035,398 1.60070 08/15/95 (35,835)
Swiss Francs.............................................................. 1,064,201 1.20510 08/17/95 (51,837)
--------- ---------
Total Contracts to Sell (Receivable amount $6,074,996).................... 6,295,728 (220,732)
--------- ---------
The Value of Contracts to Sell as a Percentage of Net Assets is 22.70%.
Total Open Forward Foreign Currency Contracts, Net......................................................... $(220,732)
=========
</TABLE>
-------------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-19
<PAGE> 37
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Services (47.4%)
WorldCom, Inc. **.......................................... US 65,144 $ 1,758,888 4.0
Telephone-Long Distance
Stet Di Risp .............................................. ITLY 757,000 1,682,737 3.9
Telephone Networks
Call-Net Enterprises, Inc. "B" **.......................... CAN 233,000 1,569,509 3.6
Telephone-Long Distance
Telefonica de Espana -- ADR *** ........................... SPN 40,000 1,550,000 3.6
Telephone Networks
Centennial Cellular Corp. "A" **........................... US 71,500 1,197,625 2.8
Wireless Communications
DDI Corp. ................................................. JPN 143 1,147,510 2.6
Wireless Communications
IntelCom Group, Inc ** .................................... US 125,000 1,117,188 2.6
Telephone-Regional/Local
PriCellular Corp. "A" ..................................... US 118,500 1,096,125 2.5
Wireless Communications
Tele Danmark AS -- ADR ***................................. DEN 31,000 868,000 2.0
Telephone Networks
British Telecommunications PLC -- ADR ***.................. UK 13,100 822,025 1.9
Telephone-Long Distance
Tele-Communications, Inc. "A" **........................... US 35,000 820,313 1.9
Cable Television
Royal PTT Nederland N.V ................................... NETH 22,000 791,091 1.8
Telephone Networks
PT Indonesia Satellite (Indosat) -- ADR ** ***............. INDO 20,000 765,000 1.8
Telephone-Long Distance
Century Telephone Enterprises, Inc. ....................... US 25,500 723,563 1.7
Telephone-Regional/Local
Philippine Long Distance Telephone Co. -- ADR *** ......... PHIL 10,000 717,500 1.6
Telephone-Long Distance
Telecomunicacoes Brasileiras S.A. (Telebras) Preferred..... BRZL 20,876,150 687,552 1.6
Telephone Networks
Paging Network, Inc. ...................................... US 17,500 599,375 1.4
Wireless Communications
Telecom Argentina S.A. -- ADR *** ......................... ARG 10,000 455,000 1.0
Telephone Networks
Nynex CableComms Group -- ADR ***.......................... UK 20,000 405,000 0.9
Cable Television
United International Holdings, Inc. "A" **................. US 20,000 335,000 0.8
Cable Television
Pakistan Telecommunications Co., Ltd. -- 144A GDR *** +.... PAK 3,300 328,350 0.8
Telephone Networks
MobileMedia Corp. ......................................... US 15,000 307,500 0.7
Wireless Communications
Associated Group, Inc.: ................................... US -- -- 0.6
Cable Television
"B" **................................................... -- 6,500 120,250 --
"A" **................................................... -- 6,500 112,125 --
Grupo Iusacell, S.A. de C.V. "D" -- ADR ** ***............. MEX 22,000 231,000 0.5
Wireless Communications
Matav (Hungarian Telecommunications Co., Ltd.) ............ HGRY 1,000 182,986 0.4
Telephone Networks
Telephone and Data Systems, Inc. .......................... US 4,200 152,775 0.4
Wireless Communications
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-20
<PAGE> 38
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Star Paging (International Holding) Ltd. Warrants, expire 12/31/96 **... HK 200,000 $ 1,809 0.0
Wireless Communications
------------
20,545,796
------------
Capital Goods (22.2%)
Nokia AB Preferred -- ADR*** ........................................... FIN 37,000 2,206,125 5.1
Telecom Equipment
Mannesmann AG **........................................................ GER 6,740 2,059,783 4.7
Machinery & Engineering
CellStar Corp **........................................................ US 55,000 1,285,625 3.0
Wholesale & International Trade
BroadBand Technologies, Inc **.......................................... US 50,000 1,237,500 2.8
Telecom Equipment
Glenayre Technologies, Inc **........................................... US 19,500 994,500 2.3
Telecom Equipment
DSC Communications Corp **.............................................. US 20,000 930,000 2.1
Telecom Equipment
Newbridge Networks Corp **.............................................. CAN 19,000 669,750 1.5
Telecom Equipment
Champion Technology Holdings ........................................... HK 1,889,849 170,976 0.4
Telecom Equipment
EchoStar Communications Corp. "A" ...................................... US 10,000 152,500 0.3
Telecom Equipment
-----------
9,706,759
-----------
Technology (18.1%)
Three-Five Systems, Inc **.............................................. US 61,800 2,124,375 4.9
Telecom Technology
DSP Communications, Inc **.............................................. US 70,000 1,452,500 3.3
Telecom Technology
Cisco Systems, Inc **................................................... US 26,000 1,314,625 3.0
Networking
Spectrian Corp **....................................................... US 28,000 1,113,000 2.6
Telecom Technology
Benefon OY **........................................................... FIN 25,000 948,700 2.2
Telecom Equipment
Dialogic Corp **........................................................ US 52,000 923,000 2.1
Telecom Technology
-----------
7,876,200
-----------
Materials/Basic Industries (1.4%)
PT Bakrie and Brothers **............................................... INDO 200,000 610,961 1.4
Building Materials & Components
Consumer Durables (0.1%)
Audiovox Corp. "A" **................................................... US 6,000 30,000 0.1
Consumer Electronics
Consumer Non-Durables (0.0%)
Bavaria **.............................................................. COL 3,150 9,296 0.0
Beverages-Alcoholic
----------- ----
Total Equity Investments (cost $33,159,520) ............................... 38,779,012 89.2
----------- ----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-21
<PAGE> 39
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
% of Net
Short-Term Investments Market Value Assets*
---------------------- ------------ --------
<S> <C> <C>
Repurchase Agreement (7.5%)
United States (7.5%)
Dated June 30, 1995 with State Street Bank and Trust Company, due
July 3, 1995, for an effective yield of 6.10% collateralized by
$2,440,000 United States Treasury Bond, 9.875% due 11/15/15
(market value of collateral is $3,320,961 including accrued
interest). (cost $3,254,551)........................................... $ 3,254,551 7.5
----------- -----
Total Investment (cost $36,414,071) ++........................................ 42,033,563 96.7
Other Assets and Liabilities.................................................. 1,443,396 3.3
----------- -----
Net Assets.................................................................... $43,476,959 100.0
=========== =====
</TABLE>
----------------
* Percentages indicated are based on net assets of $43,476,959.
** Non-income producing security.
*** U.S. currency denominated.
+ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
++ For Federal income tax purposes, cost is $36,446,176 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $7,155,259
Unrealized depreciation: (1,567,872)
----------
Net unrealized appreciation: $5,587,387
==========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
================================================================================
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS)..................... 1.0 1.0
Brazil (BRZL/BRL)....................... 1.6 1.6
Canada (CAN/CAD)........................ 5.1 5.1
Denmark (DEN/DKK)....................... 2.0 2.0
Finland (FIN/FIM)....................... 7.3 7.3
Germany (GER/DEM)....................... 4.7 4.7
Hong Kong (HK/HKD)...................... 0.4 0.4
Hungary (HGRY/HUF)...................... 0.4 0.4
Indonesia (INDO/IDR).................... 3.2 3.2
Italy (ITLY/ITL)........................ 3.9 3.9
Japan (JPN/JPY)......................... 2.6 2.6
Mexico (MEX/MXN)........................ 0.5 0.5
Netherlands (NETH/NLG).................. 1.8 1.8
Pakistan (PAK/PKR)...................... 0.8 0.8
Philippines (PHIL/PHP).................. 1.6 1.6
Spain (SPN/ESP)......................... 3.6 3.6
United Kingdom (UK/GBP)................. 2.8 2.8
United States (US/USD).................. 45.9 10.8 56.7
---- ---- -----
Total................................... 89.2 10.8 100.0
==== ==== =====
</TABLE>
----------------
* Percentages indicated are based on net assets of $43,476,959.
The accompanying notes are an integral part of the financial statements.
F-22
<PAGE> 40
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE TELECOMMUNICATIONS FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
-------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Contracts to Sell:
------------------
Deutsche Marks ........................................................ 101,368 1.43800 07/25/95 $ (4,011)
Deutsche Marks ........................................................ 1,050,344 1.37248 08/03/95 6,141
Deutsche Marks ........................................................ 36,256 1.43286 08/30/95 (1,360)
Italian Lira .......................................................... 855,353 1,664.24992 08/16/95 (9,662)
Japanese Yen .......................................................... 129,346 82.00000 08/10/95 3,581
Japanese Yen .......................................................... 196,323 85.61500 08/31/95 (3,600)
Netherland Guilders ................................................... 258,849 1.59740 08/15/95 (8,443)
Netherland Guilders ................................................... 388,274 1.60070 08/15/95 (13,438)
-------------- --------
Total Contracts to Sell (Receivable amount $2,985,321)................. 3,016,113 (30,792)
-------------- --------
The Value of Contracts to Sell as a Percentage of Net Assets is 6.94%
Total Open Forward Foreign Currency Contracts, Net........................................................ $(30,792)
========
</TABLE>
----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-23
<PAGE> 41
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ -------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Finance (31.2%)
Peregrine Investment Holdings Ltd. . . . . . . . . . . . . . HK 305,000 $ 433,614 5.5
Securities Broker
Banco LatinoAmericano de Exportaciones, S.A. (Bladex)** . . . PN 11,600 384,250 4.8
Other Financial
First Financial Caribbean Corp. . . . . . . . . . . . . . . . US 18,700 275,825 3.5
Other Financial
Dhana Siam Finance & Securities Co., Ltd. (Foreign) . . . . . THAI 42,000 248,511 3.1
Investment Management
Administradora de Fondos de Pensiones Provida S.A.-- ADR**. . CHLE 8,000 215,000 2.7
Other Financial
Robinson's Land Corp. "B"*** . . . . . . . . . . . . . . . . PHIL 1,505,000 206,635 2.6
Real Estate
Espirito Santo Financial Holding S.A.-- ADR** . . . . . . . . LUX 17,400 202,275 2.6
Banks-Money Center
Banco Ganadero S.A.-- ADR** . . . . . . . . . . . . . . . . COL 8,000 192,000 2.4
Banks-Money Center
Bangkok Bank Co., Ltd. (Foreign) . . . . . . . . . . . . . . THAI 17,000 187,396 2.4
Banks-Money Center
Israel Land Development Co., Ltd.-- ADR** . . . . . . . . . ISRL 15,000 127,500 1.6
Investment Management
-----------
2,473,006
-----------
Services (17.1%)
Ceteco Holding N.V. . . . . . . . . . . . . . . . . . . . . NETH 9,000 273,079 3.4
Retailers-Other
Resorts World Bhd. . . . . . . . . . . . . . . . . . . . . . MAL 32,000 187,733 2.4
Leisure & Tourism
Dickson Concepts International Ltd. . . . . . . . . . . . . HK 271,000 161,991 2.1
Retailers-Apparel
Wo Kee Hong Holdings Ltd. . . . . . . . . . . . . . . . . . HK 658,000 153,077 1.9
Retailers-Other
Pakistan Telecommunications Co., Ltd.-- 144A GDR** **** . . . PAK 1,500 149,250 1.9
Telephone Networks
Robinson & Co., Ltd. . . . . . . . . . . . . . . . . . . . . SING 36,000 148,175 1.9
Retailers-Apparel
Keppel Corp., Ltd. . . . . . . . . . . . . . . . . . . . . . SING 18,000 146,886 1.9
Transportation-Shipping
Petersburg Long Distance, Inc.** *** . . . . . . . . . . . . RUS 22,000 129,250 1.6
Telephone-Long Distance
-----------
1,349,441
-----------
Consumer Non-Durables (15.8%)
Panamerican Beverages, Inc. "A"** . . . . . . . . . . . . . MEX 9,600 288,000 3.7
Beverages-Non alcoholic
Noble China*** . . . . . . . . . . . . . . . . . . . . . . . CAN 72,300 260,621 3.3
Beverages-Alcoholic
Cervecer Backus & Johnston "T" . . . . . . . . . . . . . . . PERU 100,000 236,724 3.0
Beverages-Alcoholic
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-24
<PAGE> 42
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Embotelladora Lima S.A.-- Trabejo*** .................. PERU 107,853 $ 224,734 2.8
Beverages-Non alcoholic
Rothmans Industries.................................... SING 30,000 163,207 2.1
Tobacco
Tectoy Industria Brinquedos Preferred***............... BRZL 119,600,000 71,500 0.9
Toys
-----------
1,244,786
-----------
Multi-Industry/Miscellaneous (12.8%)
Grupo Sidek, S.A. de C.V.-- ADR** ***.................. MEX 56,300 260,388 3.3
Conglomerate
Mirgor S.A.C.I.F.I.A.-- 144A GDR** *** ****............ ARG 85,000 170,000 2.2
Miscellaneous
Sime Darby Bhd. ....................................... MAL 36,000 100,431 1.3
Miscellaneous
Harvard Investment Co. Growth Fund..................... CZCH 4,833 97,820 1.2
Country Funds
Grasim Industries Ltd.-- GDR Tranche 2** ***........... IND 4,000 95,520 1.2
Miscellaneous
Mahindra & Mahindra Ltd.-- GDR**....................... IND 8,000 93,040 1.2
Miscellaneous
Pakistan Investment Fund, Inc. ........................ US 12,900 87,075 1.1
Country Funds
Czeske Energeticke Zavody (CEZ AS)***.................. CZCH 1,500 54,567 0.7
Miscellaneous
Harvardsky Dividendovy Investment Fund***.............. CZCH 2,500 48,375 0.6
Country Funds
-----------
1,007,216
-----------
Materials/Basic Industries (12.6%)
Paranapanema S.A. Min., Ind. E Construacao Preferred*** BRZL 21,600,000 397,957 5.0
Metals-Non-Ferrous
Malaysia Mining Corp., Bhd. ........................... MAL 149,000 270,187 3.4
Metals-Non-Ferrous
Cementos Paz del Rio S.A.-- 144A ADR** *** ****........ COL 14,400 237,600 3.0
Cement
Venezolana de Pulpa Y Papel-- 144A GDR** ****.......... VENZ 56,000 77,000 1.0
Forest Products
Indo Gulf Fertilizer & Chemical-- GDR** ***............ IND 7,500 15,000 0.2
Chemicals
-----------
997,744
-----------
Consumer Durables (6.5%)
Singer Co. N.V.** ..................................... HK 9,000 232,875 2.9
Appliances & Household
Marco Polo S.A. Preferred "B"***....................... BRZL 1,100,000 185,302 2.3
Auto Parts
Tata Engineering and Locomotive Co. Ltd.-- GDR** ***... IND 5,000 99,350 1.3
Automobiles
-----------
517,527
-----------
Health Care (3.2%)
PT Darya Varia Laboratoria***......................... INDO 56,000 251,572 3.2
Pharmaceuticals -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-25
<PAGE> 43
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Capital Goods (2.3%)
Hindalco Industries Ltd.-- GDR** *** ..................... IND 3,500 $ 99,750 1.3
Industrial Components
Siderurgica Venezolana Sivensa (Sivensa)-- ADR** ......... VENZ 52,000 78,000 1.0
Construction
-----------
177,750
-----------
Energy (0.2%)
Czech Power Co.-- GDR** *** .............................. CZCH 500 18,000 0.2
Electrical & Gas Utilities
----------- -----
Total Equity Investments (cost $7,973,976) .................. 8,037,042 101.7
----------- -----
Total Investments (cost $7,973,976)+ ........................ 8,037,042 101.7
Other Assets and Liabilities ................................ (136,014) (1.7)
----------- -----
Net Assets .................................................. $ 7,901,028 100.0
=========== =====
</TABLE>
-----------------------
* Percentages indicated are based on net assets of $7,901,028.
** U.S. currency denominated.
*** Non-income producing security.
**** 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 $7,973,976 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 502,382
Unrealized depreciation: (439,316)
----------
Net unrealized appreciation: $ 63,066
==========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F-26
<PAGE> 44
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EMERGING MARKETS FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
----------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) ................................ 2.2 2.2
Brazil (BRZL/BRL) .................................. 8.2 8.2
Canada (CAN/CAD) ................................... 3.3 3.3
Chile (CHLE/CLP) ................................... 2.7 2.7
Colombia (COL/COP) ................................. 5.4 5.4
Czech Republic (CZCH/CSK) .......................... 2.7 2.7
Hong Kong (HK/HKD) ................................. 12.4 12.4
India (IND/INR) .................................... 5.2 5.2
Indonesia (INDO/IDR) ............................... 3.2 3.2
Israel (ISRL/ILS) .................................. 1.6 1.6
Luxembourg (LUX/ECU) ............................... 2.6 2.6
Malaysia (MAL/MYR) ................................. 7.1 7.1
Mexico (MEX/MXN) ................................... 7.0 7.0
Netherlands (NETH/NLG) ............................. 3.4 3.4
Pakistan (PAK/PKR) ................................. 1.9 1.9
Panama (PN/PND) .................................... 4.8 4.8
Peru (PERU/PES) .................................... 5.8 5.8
Philippines (PHIL/PHP) ............................. 2.6 2.6
Russia (RUS/SUR) ................................... 1.6 1.6
Singapore (SING/SGD) ............................... 5.9 5.9
Thailand (THAI/THB) ................................ 5.5 5.5
United States (US/USD) ............................. 4.6 (1.7) 2.9
Venezuela (VENZ/VEB) ............................... 2.0 2.0
----- ---- -----
Total .............................................. 101.7 (1.7) 100.0
===== ==== =====
</TABLE>
-----------------------
* Percentages indicated are based on net assets of $7,901,028.
The accompanying notes are an integral part of the financial statements.
F-27
<PAGE> 45
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Energy (25.0%)
ASEA AB "B" Free ............................................. SWDN 200 $ 17,002 3.0
Electrical & Gas Utilities
Korea Electric Power Corp. -- ADR **.......................... KOR 700 15,838 2.8
Electrical & Gas Utilities
Chilegener S.A. -- ADR **..................................... CHLE 500 15,812 2.7
Electrical & Gas Utilities
Empresa Nacional de Electridad S.A. -- ADR **................. SPN 300 14,775 2.6
Electrical & Gas Utilities
Edison S.p.A ................................................. ITLY 3,200 14,285 2.5
Electrical & Gas Utilities
EVN Energie-Versorgung Niederoesterreich AG .................. ASTRI 100 13,977 2.4
Electrical & Gas Utilities
Capex S.A. ***................................................ ARG 1,700 13,179 2.3
Electrical & Gas Utilities
Companhia Energetica de Minas Gerais (Cemig) -- ADR ** ***.... BRZL 589 11,633 2.0
Electrical & Gas Utilities
Enron Global Power & Pipelines L.L.C ......................... US 400 9,500 1.7
Electrical & Gas Utilities
MetroGas S.A. -- ADR ** ***................................... ARG 700 6,038 1.0
Electrical & Gas Utilities
Compania Boliviana de Energia Electrica **.................... BOL 200 5,950 1.0
Electrical & Gas Utilities
Consolidated Electric Power Asia ............................. HK 2,000 4,640 0.8
Electrical & Gas Utilities
Powergen PLC -- ADR ** ***.................................... UK 100 1,213 0.2
Electrical & Gas Utilities
-------
143,842
-------
Capital Goods (22.6%)
Nokia AB Preferred -- ADR **.................................. FIN 400 23,850 4.2
Telecom Equipment
Mannesmann AG ***............................................. GER 60 18,336 3.2
Machinery & Engineering
Allgon AB "B" Free ........................................... SWDN 700 16,658 2.9
Telecom Equipment
Caterpillar, Inc ............................................. US 200 12,850 2.2
Machinery & Engineering
United Engineers Ltd ......................................... MAL 2,000 12,718 2.2
Construction
BroadBand Technologies, Inc. ***.............................. US 500 12,375 2.2
Telecom Equipment
Acme-Cleveland Corp .......................................... US 500 11,812 2.1
Machine Tools
Fluor Corp ................................................... US 200 10,400 1.8
Construction
Hopewell Holdings ............................................ HK 5,000 4,233 0.7
Construction
E.R.G. Ltd ................................................... AUSL 3,000 3,071 0.5
Electrical Plant/Equipment
AES China Generating Co., Ltd. "A" ***........................ HK 200 2,050 0.4
Electrical Plant/Equipment
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-28
<PAGE> 46
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Harbin Power Equipment Co., Ltd. -- 144A *** +................ CHNA 4,000 $ 1,279 0.2
Electrical Plant/Equipment
--------
129,632
--------
Services (22.5%)
WorldCom, Inc. ***............................................ US 600 16,200 2.8
Telephone-Long Distance
DDI Corp ..................................................... JPN 2 16,049 2.8
Wireless Communications
Telefonica de Espana -- ADR **................................ SPN 400 15,500 2.7
Telephone Networks
PT Indonesia Satellite (Indosat) -- ADR ** ***................ INDO 400 15,300 2.7
Telephone-Long Distance
Philippine Long Distance Telephone Co. -- ADR **.............. PHIL 200 14,350 2.5
Telephone-Long Distance
Stet Di Risp ................................................. ITLY 5,800 12,893 2.2
Telephone Networks
RailTex, Inc. ***............................................. US 500 11,875 2.0
Transportation-Road & Rail
ABC Rail Products Corp. ***................................... US 500 11,500 2.0
Transportation-Road & Rail
International Container Terminal Services (ICTS) ***.......... PHIL 7,025 4,892 0.9
Transportation-Shipping
Pakistan Telecommunications Co., Ltd. -- 144A GDR ** +........ PAK 40 3,980 0.7
Telephone Networks
Philippino Telephone -- New .................................. PHIL 4,100 3,217 0.6
Wireless Communications
PST Vans, Inc ................................................ US 300 1,894 0.3
Transportation-Road & Rail
PriCellular Corp. "A" ........................................ US 200 1,850 0.3
Wireless Communications
--------
129,500
--------
Materials/Basic Industries (16.6%)
Giant Cement Holding, Inc. ***................................ US 1,300 15,925 2.8
Cement
Lone Star Industries, Inc .................................... US 600 12,900 2.2
Cement
Siam Cement Co., Ltd. (Foreign) .............................. THAI 200 12,774 2.2
Cement
PT Bakrie and Brothers ***.................................... INDO 4,000 12,219 2.1
Building Materials & Components
Grupo Simec, S.A. de C.V. -- ADR ** ***....................... MEX 1,100 10,863 1.9
Metals-Steel
La Cementos Nacional, C.A. -- 144A GDR ** +................... ECDR 40 9,200 1.6
Cement
Hylsamex, S.A. de C.V. -- 144A ADR ** *** +................... MEX 500 9,000 1.6
Metals-Steel
Cementos Paz del Rio S.A. -- 144A ADR ** *** +................ COL 400 6,600 1.1
Cement
PT Semen Cibinong (Foreign) .................................. INDO 2,000 6,289 1.1
Cement
--------
95,770
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-29
<PAGE> 47
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Technology (6.1%)
Three-Five Systems, Inc. ***.............................................. US 600 $ 20,625 3.6
Telecom Technology
DSP Communications, Inc. ***.............................................. US 700 14,525 2.5
Telecom Technology
--------
35,150
--------
Multi-Industry/Miscellaneous (2.0%)
General Electric Co....................................................... US 200 11,275 2.0
Conglomerate
-------- -----
Total Equity Investments (cost $518,496)..................................... 545,169 94.8
-------- -----
Short-Term Investments
Repurchase Agreement (2.1%)
United States (2.1%)
Dated June 30, 1995 with State Street Bank and Trust Company, due
July 3, 1995, for an effective yield of 6.10% collateralized by
$10,000 United States Treasury Bond, 9.875% due 11/15/15 (market
value of collateral is $13,610, including accrued interest).
(cost $12,002)........................................................ 12,002 2.1
-------- -----
Total Investments (cost $530,498) ++......................................... 557,171 96.9
Other Assets and Liabilities................................................. 18,062 3.1
-------- -----
Net Assets................................................................... $575,233 100.0
======== =====
</TABLE>
----------------
* Percentages indicated are based on net assets of $575,233.
** U.S. currency denominated.
*** Non-income producing security.
+ 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 $530,498 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 36,864
Unrealized depreciation: (10,191)
--------
Net unrealized appreciation: $ 26,673
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-30
<PAGE> 48
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
---------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) ................... 3.3 3.3
Australia (AUSL/AUD) .................. 0.5 0.5
Austria (ASTRI/ATS) ................... 2.4 2.4
Bolivia (BOL/BOL) ..................... 1.0 1.0
Brazil (BRZL/BRL) ..................... 2.0 2.0
Chile (CHLE/CLP) ...................... 2.7 2.7
China (CHNA/RMB) ...................... 0.2 0.2
Colombia (COL/COP) .................... 1.1 1.1
Ecuador (ECDR/ECS) .................... 1.6 1.6
Finland (FIN/FIM) ..................... 4.2 4.2
Germany (GER/DEM) ..................... 3.2 3.2
Hong Kong (HK/HKD) .................... 1.9 1.9
Indonesia (INDO/IDR) .................. 5.9 5.9
Italy (ITLY/ITL) ...................... 4.7 4.7
Japan (JPN/JPY) ....................... 2.8 2.8
Korea (KOR/KRW) ....................... 2.8 2.8
Malaysia (MAL/MYR) .................... 2.2 2.2
Mexico (MEX/MXN) ...................... 3.5 3.5
Pakistan (PAK/PKR) .................... 0.7 0.7
Philippines (PHIL/PHP)................. 4.0 4.0
Spain (SPN/ESP) ....................... 5.3 5.3
Sweden (SWDN/SEK) ..................... 5.9 5.9
Thailand (THAI/THB) ................... 2.2 2.2
United Kingdom (UK/GBP)................ 0.2 0.2
United States (US/USD)................. 30.5 5.2 35.7
---- --- -----
Total ................................. 94.8 5.2 100.0
==== === =====
</TABLE>
----------------
* Percentages indicated are based on net assets of $575,233.
The accompanying notes are an integral part of the financial statements.
F-31
<PAGE> 49
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Materials/Basic Industries (48.0%)
----------------------------------
Agrium, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . CAN 650 $ 22,008 3.8
Chemicals
Dow Chemical Co.. . . . . . . . . . . . . . . . . . . . . . . . US 300 21,563 3.7
Chemicals
J&L Specialty Steel, Inc. **. . . . . . . . . . . . . . . . . . US 1,100 21,175 3.7
Metals-Steel
Cabot Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . US 400 21,100 3.7
Chemicals
Cytec Industries, Inc. ** . . . . . . . . . . . . . . . . . . . US 500 20,438 3.5
Chemicals
Rainy River Forest Products, Inc. **. . . . . . . . . . . . . . CAN 2,000 20,208 3.5
Forest Products
Mississippi Chemical Corp.. . . . . . . . . . . . . . . . . . . US 1,000 19,938 3.5
Chemicals
Cambior, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . CAN 1,600 19,808 3.5
Gold
St Laurent Paperboard, Inc. **. . . . . . . . . . . . . . . . . CAN 1,300 19,526 3.4
Forest Products
Easco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . US 1,500 18,375 3.2
Misc. Materials & Components
Asarco, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . US 430 13,115 2.3
Metals-Non-Ferrous
Reynolds Metals Co. . . . . . . . . . . . . . . . . . . . . . . US 250 12,938 2.3
Metals-Non-Ferrous
Mo Och Domsjoe AB "B" Free. . . . . . . . . . . . . . . . . . . SWDN 200 11,541 2.0
Forest Products
Kimmene Oy. . . . . . . . . . . . . . . . . . . . . . . . . . . FIN 300 9,346 1.6
Forest Products
Anglovaal Ltd. "N". . . . . . . . . . . . . . . . . . . . . . . SAFR 260 8,940 1.6
Metals-Non-Ferrous
Broken Hill Proprietary Co., Ltd. . . . . . . . . . . . . . . . AUSL 700 8,620 1.5
Misc. Materials & Components
Acacia Resources Ltd. **. . . . . . . . . . . . . . . . . . . . AUSL 4,000 7,053 1.2
Gold
--------
275,692
--------
Energy (35.5%)
--------------
Total Compagnie Francaise des Petroles S.A. -- ADR +. . . . . . FR 1,200 36,300 6.3
Oil
Repsol S.A. -- ADR +. . . . . . . . . . . . . . . . . . . . . . SPN 1,100 34,788 6.0
Oil
Shell Transport & Trading Co., PLC: . . . . . . . . . . . . . . UK -- -- 4.0
Oil
ADR+. . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 200 14,475 --
Common. . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 700 8,366 --
British Petroleum Co., PLC -- ADR + . . . . . . . . . . . . . . UK 250 21,406 3.7
Oil
Saga Petroleum AS "A" . . . . . . . . . . . . . . . . . . . . . NOR 1,400 19,888 3.4
Oil
Anadarko Petroleum Corp.. . . . . . . . . . . . . . . . . . . . US 460 19,838 3.4
Oil
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-32
<PAGE> 50
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NATURAL RESOURCES FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Mobil Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US 200 $ 19,200 3.3
Oil
Norsk Hydro AS -- ADR + . . . . . . . . . . . . . . . . . . . . . . . . . . NOR 450 18,788 3.3
Oil
Northstar Energy Corp. ** . . . . . . . . . . . . . . . . . . . . . . . . . CAN 1,500 12,152 2.1
Gas Production & Distribution
---------
205,201
---------
Consumer Non-Durables (6.2%)
IBP, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . US 500 21,750 3.8
Food
Pioneer Hi-Bred International, Inc. . . . . . . . . . . . . . . . . . . . . US 335 14,070 2.4
Food
---------
35,820
---------
Capital Goods (3.6%)
Harnischfeger Industries, Inc.. . . . . . . . . . . . . . . . . . . . . . . US 600 20,775 3.6
Machinery & Engineering
--------- -----
Total Equity Investments (cost $519,564) . . . . . . . . . . . . . . . . . . . 537,488 93.3
--------- -----
<CAPTION>
Principal
Short-Term Investments Currency Amount
---------------------- -------- ---------
<S> <C> <C> <C> <C>
Repurchase Agreement (21.4%)
----------------------------
United States (21.4%)
---------------------
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $95,000
United States Treasury Bond, 9.675% due 11/15/15 (market value of
collateral is $129,300, including accrued interest). (cost $123,021). . 123,021 21.4
Commercial Paper -- Discounted (20.7%)
--------------------------------------
United States (20.7%)
---------------------
Federal National Mortgage Association, effective yield
5.85% due 8/7/95 (cost $119,283). . . . . . . . . . . . . . . . . . . . USD 120,000 119,283 20.7
Treasury Bill (1.4%)
--------------------
Mexico (1.4%)
-------------
Mexican Tesobonos, effective yield 25.02% due
7/27/95 (cost $7,858) . . . . . . . . . . . . . . . . . . . . . . . . . USD 8,000 7,858 1.4
--------- -----
Total Short-Term Investments (cost $250,162) . . . . . . . . . . . . . . . . . 250,162 43.5
--------- -----
Total Investments (cost $769,726) ++ . . . . . . . . . . . . . . . . . . . . . 787,650 136.8
--------- -----
Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . (211,941) (36.8)
--------- -----
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 575,709 100.0
========= =====
</TABLE>
-------------
* Percentages indicated are based on net assets of $575,709.
** Non-income producing security.
+ U.S. currency denominated.
++ For Federal income tax purposes, cost is $769,726 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $25,588
Unrealized depreciation: (7,664)
-------
Net unrealized appreciation: $17,924
=======
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-33
<PAGE> 51
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NATURAL RESOURCES FUND
The Fund's Portfolio of Investments at June 30, 1995 was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets *
-----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD).................................. 2.7 2.7
Canada (CAN/CAD)...................................... 16.3 16.3
Finland (FIN/FIM)..................................... 1.6 1.6
France (FR/FRF)....................................... 6.3 6.3
Mexico (MEX/MXN)...................................... 1.4 1.4
Norway (NOR/NOK)...................................... 6.7 6.7
South Africa (SAFR/ZAR)............................... 1.6 1.6
Spain (SPN/ESP)....................................... 6.0 6.0
Sweden (SWDN/SEK)..................................... 2.0 2.0
United Kingdom (UK/GBP)............................... 7.7 7.7
United States (US/USD)................................ 42.4 5.3 47.7
---- --- -----
Total................................................. 93.3 6.7 100.0
==== === =====
</TABLE>
------------
* Percentages indicated are based on net assets of $575,709.
The accompanying notes are an integral part of the financial statements.
F-34
<PAGE> 52
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Shares Market Value Assets*
------------------ ------ ------------ -------
<S> <C> <C> <C>
Technology (30.0%)
Integrated Device Technology, Inc. ** . . . . . . . . . . . . . . . . . 21,900 $ 1,012,875 3.0
Semiconductors
Micron Technology, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 18,400 1,009,700 3.0
Semiconductors
LAM Research Corp. ** . . . . . . . . . . . . . . . . . . . . . . . . . 15,400 985,600 2.9
Semiconductors
Applied Materials, Inc. ** . . . . . . . . . . . . . . . . . . . . . . 11,000 952,875 2.8
Semiconductors
Cabletron Systems, Inc. ** . . . . . . . . . . . . . . . . . . . . . . 17,600 937,200 2.7
Networking
National Semiconductor Corp. ** . . . . . . . . . . . . . . . . . . . . 27,900 774,225 2.3
Semiconductors
BMC Software, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . 9,700 749,325 2.2
Software
Cirrus Logic, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . 11,600 727,175 2.1
Semiconductors
Seagate Technology, Inc. ** . . . . . . . . . . . . . . . . . . . . . . 15,700 616,225 1.8
Computers & Peripherals
Compuware Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,400 565,800 1.7
Software
Dallas Semiconductor Corp. . . . . . . . . . . . . . . . . . . . . . . 23,700 485,850 1.4
Semiconductors
Lattice Semiconductor Corp. ** . . . . . . . . . . . . . . . . . . . . 13,400 460,625 1.4
Semiconductors
Cisco Systems, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . 8,800 444,950 1.3
Networking
Western Digital Corp **. . . . . . . . . . . . . . . . . . . . . . . . 16,500 286,688 0.8
Computers & Peripherals
Excalibur Technologies Corp.: . . . . . . . . . . . . . . . . . . . . . -- -- 0.3
Software
Common -- Restricted ** + . . . . . . . . . . . . . . . . . . . . . . 11,000 88,000 --
Common ** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 16,000 --
Chipcom Corp. ** . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200 99,750 0.3
Computer & Peripherals
-----------
10,212,863
-----------
Services (14.5%)
AnnTaylor Stores, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . 37,400 869,550 2.6
Retailers-Apparel
Michaels Stores, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . 40,900 869,125 2.5
Retailers-Other
Sports Authority, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . 33,200 676,450 2.0
Retailers-Other
Kelly Services, Inc. "A" . . . . . . . . . . . . . . . . . . . . . . . 22,800 587,100 1.7
Business & Public Services
United Video Satellite Group, Inc. "A" . . . . . . . . . . . . . . . . 19,700 574,663 1.7
Cable Television
Proffitt's, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . . 13,100 389,725 1.1
Retailers-Other
Savoy Pictures Entertainment, Inc. . . . . . . . . . . . . . . . . . . 37,200 339,450 1.0
Leisure & Tourism
Rio Hotel and Casino, Inc. ** . . . . . . . . . . . . . . . . . . . . . 21,500 295,625 0.9
Leisure & Tourism
Friedman's, Inc. "A" ** . . . . . . . . . . . . . . . . . . . . . . . . 12,500 237,500 0.7
Retailers-Other
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-35
<PAGE> 53
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Shares Market Value Assets*
------------------ ------ ------------ -------
<S> <C> <C> <C>
Buckle, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,600 $ 118,750 0.3
Retailers-Apparel
-----------
4,957,938
-----------
Finance (12.8%)
---------------
H&R Block, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,500 760,813 2.2
Consumer Finance
Equity Inns, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 645,238 1.9
Real Estate Investment Trust
KeyCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,200 602,400 1.8
Banks-Regional
Leader Financial Corp. . . . . . . . . . . . . . . . . . . . . . . . . 17,600 499,400 1.5
Savings&Loans
ADVANTA Corp. "B" . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,200 498,300 1.5
Consumer Finance
Signet Banking Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 22,600 494,375 1.4
Banks-Regional
RFS Hotel Investors, Inc. . . . . . . . . . . . . . . . . . . . . . . . 28,900 440,550 1.3
Real Estate Investment Trust
Mid-America Apartment Communities, Inc. . . . . . . . . . . . . . . . . 9,100 227,500 0.7
Real Estate Investment Trust
Trans Financial Bancorp, Inc. . . . . . . . . . . . . . . . . . . . . . 10,100 154,025 0.4
Banks-Regional
Capitol American Financial Corp. . . . . . . . . . . . . . . . . . . . 1,400 31,850 0.1
Insurance-Multi-Line
-----------
4,354,451
-----------
Consumer Non-Durables (7.1%)
----------------------------
V F Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,900 639,618 1.9
Textiles & Apparel
Haggar Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,500 575,250 1.7
Textiles & Apparel
Premark International, Inc. . . . . . . . . . . . . . . . . . . . . . . 10,700 555,063 1.6
Household Products
Jones Apparel Group, Inc. ** . . . . . . . . . . . . . . . . . . . . . 14,300 427,213 1.3
Textiles & Apparel
Varsity Spirit Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 14,850 211,613 0.6
Textiles & Apparel
-----------
2,408,757
-----------
Health Care (5.3%)
------------------
Coventry Corp. ** . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,700 815,013 2.4
Health Care Services
Health Systems International, Inc. "A" ** . . . . . . . . . . . . . . . 20,000 580,000 1.7
Health Care Services
Abaxis, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,400 275,800 0.8
Medical Technology & Supplies
GranCare, Inc. ** . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,400 135,450 0.4
Health Care Services
-----------
1,806,263
-----------
Capital Goods (1.5%)
--------------------
Eaton Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,900 517,313 1.5
Industrial Components
Materials/Basic Industries (1.2%)
---------------------------------
Georgia Gulf Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 12,700 414,338 1.2
Chemicals
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-36
<PAGE> 54
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Shares Market Value Assets*
------------------ ------ ------------ -------
<S> <C> <C> <C>
Consumer Durables (1.2%)
Syratech Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,900 $ 237,038 0.7
Appliances & Household
Lifetime Hoan Corp. ** . . . . . . . . . . . . . . . . . . . . . . . . 14,300 160,875 0.5
Appliances & Household
-----------
397,913
----------- -----
Total Equity Investments (cost $20,370,204) . . . . . . . . . . . . . . . 25,069,836 73.6
----------- -----
<CAPTION>
Principal
Amount
------
<S> <C> <C> <C>
Short-Term Investments
Commercial Paper -- Discounted (20.2%)
United States (20.2%)
Federal National Mortgage Association, effective yield
5.84% due 8/7/95 . . . . . . . . . . . . . . . . . . . . . . . . . 4,880,000 4,850,860 14.3
Federal Home Loan Bank, effective yield 6.07% due 7/3/95 . . . . . . 2,000,000 1,999,326 5.9
-----------
Total Commercial Paper -- Discounted (cost $6,850,186) . . . . . . . . . 6,850,186
-----------
Repurchase Agreement(7.8%)
United States (7.8%)
Dated June 30, 1995 with State Street Bank and Trust Company, due
July 3, 1995, for an effective yield of 6.10% collateralized by
$2,000,000 United States Treasury Bond, 9.875% due 11/15/15
(market value of collateral is $2,722,100, including accrued
interest). (cost $2,662,451) . . . . . . . . . . . . . . . . . . . 2,662,451 7.8
----------- -----
Total Short-Term Investments (cost $9,512,637) . . . . . . . . . . . . . 9,512,637 28.0
----------- -----
Total Investments (cost $29,882,841)++ . . . . . . . . . . . . . . . . . 34,582,473 101.6
Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . (530,379) (1.6)
----------- -----
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,052,094 100.0
=========== =====
</TABLE>
-----------------
* Percentages indicated are based on net assets of $34,052,094.
** Non-income producing security.
+ Restricted securities -- At June 30, 1995, the Fund owned the following
restricted security constituting 0.3% 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>
Market Value
Acquistion Per Share at
Date Shares Cost 6/30/95
---------- ------ ------- ------------
<S> <C> <C> <C> <C>
Excalibur Technologies Corp. . . . . . . . . . . . . . . . . 4/19/94 11,000 $88,000 $8.00
</TABLE>
++ For Federal income tax purposes, cost is $29,897,182 and appreciation
(depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $4,990,123
Unrealized depreciation: (304,832)
----------
Net unrealized appreciation: $4,685,291
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-37
<PAGE> 55
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Shares Market Value Assets*
------------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Finance (37.5%)
TA Enterprise Bhd....................................... MAL 170,000 $ 585,846 2.9
Investment Management
Phatra Thanakit Co., Ltd. (Foreign)..................... THAI 67,500 563,526 2.8
Investment Management
Peregrine Investment Holdings Ltd....................... HK 350,000 497,590 2.5
Securities Broker
National Australia Bank Ltd............................. AUSL 60,200 475,950 2.3
Banks-Money Center
Land and House Co., Ltd. (Foreign)...................... THAI 20,900 440,446 2.2
Real Estate
DCB Holdings Bhd.**..................................... MAL 150,000 440,000 2.2
Banks-Regional
Land & General Bhd...................................... MAL 130,000 434,667 2.1
Real Estate
United Overseas Bank Ltd. (Foreign)..................... SING 46,000 434,646 2.1
Banks-Money Center
Kay Hian James Capel Holdings Ltd. (Foreign)............ SING 357,000 431,875 2.1
Securities Broker
Thai Farmers Bank, Ltd. (Foreign)....................... THAI 45,000 430,395 2.1
Banks-Regional
Westpac Banking Corp., Ltd.:............................ AUSL -- -- 2.1
Banks-Regional
Common................................................ -- 110,000 398,080 --
Convertible Preferred, 6.5 till 6/30/98............... -- 2,800 14,771 --
HSBC Holdings PLC....................................... HK 30,000 384,824 1.9
Banks-Money Center
Ayala Land, Inc. "B".................................... PHIL 312,500 361,661 1.8
Real Estate
Development Bank of Singapore (Foreign)................. SING 30,000 341,446 1.7
Banks-Money Center
Bangkok Bank Co., Ltd. (Foreign)........................ THAI 30,000 330,699 1.6
Banks-Money Center
Siam Commercial Bank PLC (Foreign)...................... THAI 25,000 239,108 1.2
Banks-Money Center
PT Lippo Bank (Foreign)................................. INDO 120,000 211,590 1.0
Banks-Money Center
Siam City Bank Ltd. (Foreign)........................... THAI 140,000 192,908 1.0
Banks-Regional
Hang Seng Bank.......................................... HK 16,030 122,235 0.6
Banks-Money Center
Bank of East Asia, Ltd.................................. HK 38,161 114,918 0.6
Banks-Money Center
PT Bank Bali (Foreign).................................. INDO 40,000 101,527 0.5
Banks-Money Center
Cheung Kong (Holdings) Ltd.............................. HK 10,000 49,501 0.2
Real Estate
----------
7,598,209
----------
Materials/Basic Industries (14.5%)
PT Semen Gresik (Foreign)............................... INDO 91,000 611,164 3.0
Cement
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-38
<PAGE> 56
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- --------- ------------ --------
<S> <C> <C> <C> <C>
TPI Polene Co., Ltd. (Foreign).......................... THAI 55,375 $ 377,021 1.9
Chemicals
Carter Holt Harvey Ltd.................................. NZ 150,000 367,175 1.8
Forest Products
Western Mining Corporation Holdings Ltd................. AUSL 66,000 363,669 1.8
Metals-Non-Ferrous
PT Barito Pacific Timber (Foreign)...................... INDO 245,000 352,201 1.7
Forest Products
Siam Cement Co., Ltd. (Foreign)......................... THAI 5,000 319,352 1.6
Cement
Broken Hill Proprietary Co., Ltd........................ AUSL 20,566 253,255 1.3
Misc. Materials & Components
Royal Ceramic Industry (Foreign)**...................... THAI 100,000 241,135 1.2
Building Materials & Components
PT Ekadharma Tape Industries............................ INDO 66,000 47,439 0.2
Chemicals
----------
2,932,411
----------
Services (12.7%)
Telecom Corporation of New Zealand Ltd.................. NZ 100,000 374,532 1.8
Telephone Networks
Mandarin Oriental International Ltd.+ **................ HK 370,000 370,000 1.8
Leisure & Tourism
International Container Terminal Services (ICTS)**...... PHIL 437,500 304,654 1.5
Transportation-Shipping
PT Modern Photo Film Co.**.............................. INDO 50,000 271,788 1.3
Retailers-Other
Overseas Union Enterprise Ltd........................... SING 40,000 244,810 1.2
Leisure & Tourism
News Corp., Ltd......................................... AUSL 40,180 224,539 1.1
Broadcasting & Publishing
Apollo Enterprises Ltd.................................. SING 200,000 191,840 0.9
Leisure & Tourism
Matichon Newspaper Group (Foreign)...................... THAI 30,000 154,407 0.8
Broadcasting & Publishing
AAPC Ltd................................................ AUSL 235,500 110,508 0.5
Leisure & Tourism
Philippine Long Distance Telephone Co. -- ADR+.......... PHIL 1,500 107,625 0.5
Telephone-Long Distance
Ito-Yokado Co., Ltd..................................... JPN 2,000 105,499 0.5
Retailers-Other
News Corp., Ltd. Preferred.............................. AUSL 20,039 99,305 0.5
Broadcasting & Publishing
Ten Allied Co........................................... JPN 3,600 60,751 0.3
Restaurants
----------
2,620,258
----------
Multi-Industry/Miscellaneous (11.1%)
First Pacific Co., Ltd.**............................... HK 570,000 504,633 2.5
Conglomerate
India Growth Fund, Inc.................................. US 25,000 459,375 2.3
Country Funds
Straits Steamship Land Ltd.............................. SING 120,000 415,748 2.1
Conglomerate
Hutchison Whampoa....................................... HK 80,000 386,698 1.9
Conglomerate
Korea Fund, Inc.+ **.................................... KOR 12,500 245,313 1.2
Country Funds
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-39
<PAGE> 57
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Currency Shares Market Value Assets*
------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Taiwan Fund, Inc........................................ TWN 10,000 $ 218,750 1.1
Country Funds
----------
2,230,517
----------
Consumer Durables (7.6%)
Samsung Electronics Co.:................................ KOR -- -- 2.2
Consumer Electronics
GDR................................................... -- 7,000 364,000 --
New-GDR Non-voting+................................... -- 1,385 69,859 --
New-144A GDR+ ** ***.................................. -- 290 20,880 --
New-GDR Voting........................................ -- 57 3,981 --
Edaran Otomobil Nasional Bhd............................ MAL 40,000 390,564 1.9
Automobiles
Johnson Electric Holdings**............................. HK 140,000 282,269 1.4
Auto Parts
PT Astra International (Foreign)........................ INDO 118,800 210,809 1.0
Auto Parts
Hyundai Motor Co. -- 144A GDR+ ** ***................... KOR 8,000 160,000 0.8
Automobiles
Singer Thailand Ltd.:................................... THAI -- -- 0.3
Appliances & Household
Foreign............................................... -- 3,600 31,514 --
Common................................................ -- 1,400 11,461 --
Mr. Max................................................. JPN 300 6,160 0.0
Appliances & Household
----------
1,551,497
----------
Capital Goods (4.3%)
E.R.G. Ltd.............................................. AUSL 320,000 327,622 1.6
Electrical Plant/Equipment
United Engineers Ltd.................................... MAL 42,000 267,077 1.3
Construction
International Engineering PLC (Foreign)................. THAI 24,000 179,939 0.9
Telecom Equipment
PT United Tractors (Foreign)............................ INDO 50,000 106,694 0.5
Machinery & Engineering
----------
881,332
----------
Technology (3.1%)
Varitronix International Ltd............................ HK 250,000 437,814 2.2
Computers & Peripherals
Hosiden Electronics..................................... JPN 10,000 105,027 0.5
Computers & Peripherals
Kyocera Corp............................................ JPN 1,000 82,370 0.4
Semiconductors
----------
625,211
----------
Energy (2.1%)
Oil Search Ltd.......................................... AUSL 560,000 418,059 2.1
Oil
Consumer Non-Durables (1.5%)
Seafresh Industry (Foreign)**........................... THAI 35,000 167,376 0.8
Food
Reliance Industries Ltd. -- 144A GDR+ ** ***............ IND 8,000 143,040 0.7
Textiles & Apparel
----------
310,416
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-40
<PAGE> 58
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Currency Shares Market Value Assets*
------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Health Care (1.3%)
PT Dankos Laboratories (Foreign)............................................. INDO 69,750 $ 222,473 1.1
Pharmaceuticals
Sankyo Co., Ltd.............................................................. JPN 2,000 46,495 0.2
Pharmaceuticals
-----------
268,968
----------- -----
Total Equity Investments (cost $19,594,557)..................................... 19,436,878 95.7
----------- -----
</TABLE>
<TABLE>
<CAPTION>
Principal
Fixed Income Investments Currency Amount
------------------------ -------- ---------
<S> <C> <C> <C> <C>
Corporate Bonds (1.1%)
United States (1.1%)
Acer Inc., Convertible Bond, 4% due 6/10/01 (cost $139,600)................ USD 80,000 219,600 1.1
</TABLE>
<TABLE>
<CAPTION>
No. of
Warrants (0.2%) Country Warrants
--------------- ------- --------
<S> <C> <C> <C> <C>
Development & Commercial Bank Warrants,
expire 12/28/99 (cost $5,939)**............................................ MAL 37,500 43,076 0.2
Banks-Money Center
</TABLE>
<TABLE>
<CAPTION>
No. of
Rights (0.1%) Rights
------------- ------
<S> <C> <C> <C> <C>
United Engineers Ltd., Convertible Unsecured Loan Stock,
4% till 5/22/99 (cost $7,859).............................................. MAL 21,000 11,717 0.1
Construction
Short-Term Investments
Repurchase Agreement (2.5%)
United States (2.5%)
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $380,000
United States Treasury Bond, 9.875% due 11/15/15 (market value
of collateral is $517,199, including accrued interest). (cost $506,086) 506,086 2.5
----------- -----
Total Investments (cost $20,254,041)++.......................................... 20,217,357 99.6
Other Assets and Liabilities.................................................... 87,597 0.4
----------- -----
Net Assets...................................................................... $20,304,954 100.0
=========== =====
</TABLE>
* Percentages indicated are based on net assets of $20,304,954.
** Non-income producing security.
*** 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.
+ U.S. currency denominated.
++ For Federal income tax purposes, cost is $20,254,041 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 2,006,734
Unrealized depreciation: (2,043,418)
-----------
Net unrealized depreciation: $ (36,684)
===========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F-41
<PAGE> 59
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
---------------------------------------------
Fixed Income,
Rights & Short-Term
Country (Country Code/Currency Code) Equity Warrants & Other Total
------------------------------------ ------ ------------- ---------- ------
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) . . . . . . . . . . . 13.3 13.3
Hong Kong (HK/HKD) . . . . . . . . . . . . 15.6 15.6
India (IND/INR) . . . . . . . . . . . . . 0.7 0.7
Indonesia (INDO/IDR) . . . . . . . . . . . 10.3 10.3
Japan (JPN/JPY) . . . . . . . . . . . . . 1.9 1.9
Korea (KOR/KRW) . . . . . . . . . . . . . 4.2 4.2
Malaysia (MAL/MYR) . . . . . . . . . . . . 10.4 0.3 10.7
New Zealand (NZ/NZD) . . . . . . . . . . . 3.6 3.6
Philippines (PHIL/PHP) . . . . . . . . . . 3.8 3.8
Singapore (SING/SGD) . . . . . . . . . . . 10.1 10.1
Taiwan (TWN/TWD) . . . . . . . . . . . . . 1.1 1.1
Thailand (THAI/THB) . . . . . . . . . . . 18.4 18.4
United States (US/USD) . . . . . . . . . . 2.3 1.1 2.9 6.3
---- --- --- -----
Total 95.7 1.4 2.9 100.0
==== === === =====
</TABLE>
-------------------------
* Percentages indicated are based on net assets of $20,304,954.
The accompanying notes are an integral part of the financial statements.
F-42
<PAGE> 60
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Finance (23.0%)
---------------
Anglo-Irish Bank Corp. PLC . . . . . . . . . . . . . . . . . . . . . . . IRE 500,000 $ 429,389 2.8
Banks-Money Center
Sparbanken Sverige AB "A". . . . . . . . . . . . . . . . . . . . . . . . SWDN 50,000 419,555 2.8
Investment Management
Cetelem Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FR 2,550 394,289 2.6
Consumer Finance
British Airport Authority PLC. . . . . . . . . . . . . . . . . . . . . . UK 40,000 313,931 2.1
Real Estate
M & G Group PLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 17,000 287,929 1.9
Investment Management
Societe Generale Paris . . . . . . . . . . . . . . . . . . . . . . . . . FR 2,140 250,156 1.6
Banks-Money Center
ABN AMRO Holding N.V. . . . . . . . . . . . . . . . . . . . . . . . . . NETH 6,300 243,215 1.6
Banks-Regional
Baloise Holding Ltd. -- Registered **. . . . . . . . . . . . . . . . . . SWTZ 100 228,063 1.5
Insurance-Multi-Line
National Westminster Bank PLC. . . . . . . . . . . . . . . . . . . . . . UK 21,336 185,435 1.2
Banks-Money Center
CS Holding AG -- Registered**. . . . . . . . . . . . . . . . . . . . . . SWTZ 2,000 183,319 1.2
Banks-Money Center
Axa Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FR 3,200 172,848 1.1
Insurance-Multi-Line
Lloyds Bank PLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 15,000 148,736 1.0
Banks-Money Center
Assicurazioni Generali S.p.A. . . . . . . . . . . . . . . . . . . . . . ITLY 5,500 129,323 0.9
Insurance-Multi-Line
Istituto Mobiliare Italiano S.p.A. -- ADR +. . . . . . . . . . . . . . . ITLY 6,000 111,000 0.7
Banks-Money Center
----------
3,497,188
----------
Services (17.6%)
----------------
National Express Group PLC . . . . . . . . . . . . . . . . . . . . . . . UK 70,000 409,669 2.7
Transportation-Road & Rail
Ecco Travail Temporaire S.A. . . . . . . . . . . . . . . . . . . . . . . FR 6,000 403,257 2.7
Business & Public Services
Vodafone Group PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 100,000 371,342 2.4
Wireless Communications
Elsevier N.V.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NETH 24,000 283,538 1.9
Broadcasting & Publishing
Granada Group PLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 25,502 247,395 1.6
Leisure & Tourism
Hagemeyer N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NETH 5,508 245,709 1.6
Wholesale & International Trade
Telecom Italia S.p.A.. . . . . . . . . . . . . . . . . . . . . . . . . . ITLY 80,000 216,970 1.4
Telephone Networks
Wolters Kluwer CVA . . . . . . . . . . . . . . . . . . . . . . . . . . . NETH 2,400 211,801 1.4
Broadcasting & Publishing
Telefonica de Espana . . . . . . . . . . . . . . . . . . . . . . . . . . SPN 12,000 154,647 1.0
Telephone Networks
Industrielle de Transports Automobiles S.A. (S.I.T.A.) . . . . . . . . . FR 1,000 142,253 0.9
Business & Public Services
----------
2,686,581
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-43
<PAGE> 61
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Capital Goods (12.8%)
---------------------
Nokia AB "A" **. . . . . . . . . . . . . . . . . . . . . . . . . . . . . FIN 7,400 $ 433,357 2.8
Telecom Equipment
L.M. Ericsson Telephone Co. -- ADR + . . . . . . . . . . . . . . . . . . SWDN 18,000 360,000 2.4
Telecom Equipment
Allgon AB "B" Free . . . . . . . . . . . . . . . . . . . . . . . . . . . SWDN 13,000 309,371 2.0
Telecom Equipment
Mannesmann AG ** . . . . . . . . . . . . . . . . . . . . . . . . . . . . GER 1,003 306,523 2.0
Machinery & Engineering
General Electric PLC . . . . . . . . . . . . . . . . . . . . . . . . . . UK 60,638 296,054 1.9
Aerospace/Defense
Bilfinger & Berger Bau AG. . . . . . . . . . . . . . . . . . . . . . . . GER 565 260,942 1.7
Machinery & Engineering
----------
1,966,247
----------
Health Care (12.1%)
-------------------
SmithKline Beecham PLC "A" . . . . . . . . . . . . . . . . . . . . . . . UK 65,500 592,708 3.9
Pharmaceuticals
Amersham International PLC . . . . . . . . . . . . . . . . . . . . . . . UK 35,000 537,134 3.5
Pharmaceuticals
Roche Holdings AG Genusscheine . . . . . . . . . . . . . . . . . . . . . SWTZ 45 290,096 1.9
Pharmaceuticals
Zeneca Group PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 10,000 168,814 1.1
Pharmaceuticals
Astra AB "A" Free. . . . . . . . . . . . . . . . . . . . . . . . . . . . SWDN 5,000 154,410 1.0
Pharmaceuticals
Bayer AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GER 450 111,971 0.7
Pharmaceuticals
----------
1,855,133
----------
Materials/Basic Industries (9.4%)
---------------------------------
Repola Oy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FIN 15,000 316,233 2.1
Forest Products
RTZ Corp., PLC -- Registered . . . . . . . . . . . . . . . . . . . . . . UK 19,000 247,622 1.6
Metals-Non-Ferrous
Imperial Chemical Industries PLC . . . . . . . . . . . . . . . . . . . . UK 20,000 245,070 1.6
Chemicals
Hoechst AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GER 1,000 216,130 1.4
Chemicals
Montedison S.p.A. ** . . . . . . . . . . . . . . . . . . . . . . . . . . ITLY 300,000 214,830 1.4
Chemicals
Acerinox S.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SPN 1,600 196,547 1.3
Metals-Steel
----------
1,436,432
----------
Energy (7.5%)
-------------
British Petroleum Co., PLC . . . . . . . . . . . . . . . . . . . . . . . UK 45,335 324,800 2.1
Oil
BBC Brown Boveri AG (Bearer) . . . . . . . . . . . . . . . . . . . . . . SWTZ 300 310,686 2.0
Energy Equipment & Services
Elf Aquitaine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FR 3,750 277,162 1.8
Oil
Norsk Hydro AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NOR 5,900 247,609 1.6
Energy Source
----------
1,160,257
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-44
<PAGE> 62
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets*
------------------ ------- ------ ------------ --------
<S> <C> <C> <C> <C>
Consumer Durables (5.8%)
------------------------
Moulinex **. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FR 10,300 $ 249,086 1.6
Appliances & Household
Lucas Industries PLC . . . . . . . . . . . . . . . . . . . . . . . . . . UK 80,000 239,822 1.6
Auto Parts
Merloni Elettrodomestici S.p.A.. . . . . . . . . . . . . . . . . . . . . ITLY 80,000 234,826 1.5
Appliances & Household
Mayflower Corp., PLC . . . . . . . . . . . . . . . . . . . . . . . . . . UK 150,000 163,406 1.1
Auto Parts
----------
887,140
----------
Multi-Industry/Miscellaneous (3.6%)
-----------------------------------
Hanson PLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 120,000 418,893 2.8
Conglomerate
Wassall PLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . UK 25,000 103,173 0.7
Conglomerate
U.S. Industries, Inc **. . . . . . . . . . . . . . . . . . . . . . . . . US 1,200 16,350 0.1
Conglomerate
----------
538,416
----------
Consumer Non-Durables (2.7%)
----------------------------
Polygram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NETH 7,000 413,493 2.7
Recreation
Technology (0.8%)
-----------------
Alcatel Alsthom Compagnie Generale d'Electricite . . . . . . . . . . . . FR 1,326 119,410 0.8
Telecom Technology
---------- -----
Total Equity Investments (cost $12,878,194) . . . . . . . . . . . . . . . . 14,560,297 95.3
---------- -----
Principal
Fixed Income Investments Currency Amount
------------------------ -------- ---------
Corporate Bonds (0.0%)
----------------------
France (0.0%)
-------------
AXA, Convertible Bond, 4.5% due 1/1/99 (cost $6,629) . . . . . . . . . FRF 11,800 7,379 0.0
No. of
Warrants (0.0%) Country Warrants
--------------- ------- --------
Burgo (Cartiere) S.p.A. Warrants, expire 12/31/95 ** . . . . . . . . . . ITLY 13,798 1,215 0.0
Warrants
Baloise Holding Ltd. Warrants, expire 8/30/95 ** . . . . . . . . . . . . SWTZ 100 956 0.0
Insurance-Multi-Line
Swiss Reinsurance Co. "B" Warrants, expire 6/30/95 **. . . . . . . . . . SWTZ 1 24 0.0
Warrants
---------- -----
Total Warrants (cost $0) . . . . . . . . . . . . . . . . . . . . . . . . . 2,195 0.0
---------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-45
<PAGE> 63
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EUROPE FUND
<TABLE>
<CAPTION> % of Net
Short Term Investments Market Value Assets*
---------------------- ------------ --------
<S> <C> <C>
Repurchase Agreement (2.5%)
---------------------------
United States (2.5%)
--------------------
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $290,000
United States Treasury Bond, 9.875% due 11/15/15 (market value of
collateral is $394,705, including accrued interest).
(cost $381,065). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 381,065 2.5
----------- -----
Total Investments (cost $13,265,888) ++ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,950,936 97.8
Other Assets and Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333,805 2.2
----------- -----
Net Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,284,741 100.0
=========== =====
</TABLE>
* Percentages indicated are based on net assets of $15,284,741.
** Non-income producing security.
+ U.S. currency denominated.
++ For Federal income tax purposes, cost is $13,265,888 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $1,975,264
Unrealized depreciation: (290,216)
----------
Net unrealized appreciation: $1,685,048
==========
</TABLE>
Abbreviation:
ADR -- American Depository Receipt
The Fund's Portfolio of Investments at June 30, 1995 was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ----------- -----
<S> <C> <C> <C>
Finland (FIN/FIM) . . . . . . . . . . . . . . . 4.9 4.9
France (FR/FRF) . . . . . . . . . . . . . . . 13.1 13.1
Germany (GER/DEM) . . . . . . . . . . . . . . . 5.8 5.8
Ireland (IRE/IRL) . . . . . . . . . . . . . . . 2.8 2.8
Italy (ITLY/ITL) . . . . . . . . . . . . . . . 5.9 5.9
Netherlands (NETH/NLG) . . . . . . . . . . . . 9.2 9.2
Norway (NOR/NOK) . . . . . . . . . . . . . . . 1.6 1.6
Spain (SPN/ESP) . . . . . . . . . . . . . . . 2.3 2.3
Sweden (SWDN/SEK) . . . . . . . . . . . . . . . 8.2 8.2
Switzerland (SWTZ/CHF) . . . . . . . . . . . . 6.6 6.6
United Kingdom (UK/GBP) . . . . . . . . . . . . 34.8 34.8
United States (US/USD) . . . . . . . . . . . . 0.1 4.7 4.8
---- --- -----
Total . . . . . . . . . . . . . . . . . . . . 95.3 4.7 100.0
==== === =====
</TABLE>
* Percentages indicated are based on net assets of $15,284,741.
The accompanying notes are an integral part of the financial statements.
F-46
<PAGE> 64
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE EUROPE FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
-------------- -------- -------- --------------
<S> <C> <C> <C> <C>
Contracts to Sell:
------------------
Deutsche Marks . . . . . . . . . . . . . . . . . . . . . . . . . 579,500 1.37248 08/03/95 $ 3,389
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 467,559 4.95000 08/04/95 (8,973)
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 362,513 5.08825 08/04/95 (16,618)
French Francs . . . . . . . . . . . . . . . . . . . . . . . . . 637,249 4.96615 08/16/95 (14,070)
Italian Lira . . . . . . . . . . . . . . . . . . . . . . . . . 410,285 1,664.25001 08/16/95 (4,635)
Netherland Guilders . . . . . . . . . . . . . . . . . . . . . . 258,849 1.59740 08/15/95 (8,443)
Netherland Guilders . . . . . . . . . . . . . . . . . . . . . . 452,986 1.60070 08/15/95 (15,678)
Swiss Francs . . . . . . . . . . . . . . . . . . . . . . . . . 785,068 1.20510 08/17/95 (38,240)
--------- ---------
Total Contracts to Sell (Receivable amount $3,850,741) . . . . . 3,954,009 (103,268)
--------- ---------
The Value of Contracts to Sell as a Percentage of Net Assets is 25.87%.
Total Open Forward Foreign Currency Contracts, Net . . . . $(103,268)
==========
</TABLE>
------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-47
<PAGE> 65
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: MONEY MARKET FUND
Portfolio of Investments
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Effective Maturity Principal % of Net
Short-Term Investments Yield Date Amount Market Value Assets *
---------------------- --------- -------- --------- ------------ --------
Commercial Paper - Discounted (58.0%)
-------------------------------------
<S> <C> <C> <C> <C> <C>
Minnesota Mining & Manufacturing Co.............................. 6.09% 12-Jul-95 750,000 $ 748,625 4.8
Unilever Capital Corp............................................ 6.00% 04-Aug-95 700,000 696,106 4.4
Coca Cola Co..................................................... 6.09% 31-Aug-95 700,000 693,061 4.4
Toronto Dominion Holdings USA, Inc............................... 5.99% 18-Sep-95 700,000 691,044 4.4
Ford Motor Credit Co............................................. 6.02% 10-Jul-95 600,000 599,111 3.8
Banc One Corp.................................................... 6.05% 21-Jul-95 600,000 598,017 3.8
Federal Home Loan Bank........................................... 5.88% 18-Aug-95 600,000 595,336 3.8
Federal National Mortgage Association............................ 5.88% 05-Sep-95 600,000 593,598 3.8
General Electric Capital Corp.................................... 5.97% 06-Sep-95 600,000 593,501 3.8
Philip Morris Cos., Inc.......................................... 6.18% 03-Jul-95 579,000 578,804 3.7
Shell Oil Co..................................................... 5.97% 05-Jul-95 500,000 499,672 3.2
E.I. DuPont de Nemours & Co...................................... 6.03% 07-Jul-95 500,000 499,504 3.2
Emerson Electric Co.............................................. 6.02% 17-Jul-95 500,000 498,684 3.2
Ameritech Corp................................................... 5.97% 06-Jul-95 400,000 399,672 2.6
Motorola, Inc.................................................... 6.03% 12-Jul-95 400,000 399,274 2.5
E.I. DuPont de Nemours & Co...................................... 6.03% 26-Jul-95 200,000 199,176 1.3
Shell Oil Co..................................................... 5.95% 11-Aug-95 200,000 198,672 1.3
----------- -----
Total Commercial Paper - Discounted (amortized cost $9,081,857) 9,081,857 58.0
----------- -----
Treasury Bills (22.0%)
----------------------
United States Treasury Bill...................................... 5.70% 05-Oct-95 2,500,000 2,463,100 15.7
United States Treasury Bill...................................... 5.60% 28-Sep-95 1,000,000 986,526 6.3
----------- -----
Total Treasury Bills (amortized cost $3,449,626).................... 3,449,626 22.0
----------- -----
Medium-Term Notes-Floating Rate (8.3%)
--------------------------------------
Federal Farm Credit Corp......................................... 5.99% 14-Nov-95 800,000 799,662 5.1
PHH Corp......................................................... 5.86% 19-Oct-95 500,000 500,000 3.2
----------- -----
Total Medium-Term Notes (amortized cost $1,299,662)................. 1,299,662 8.3
----------- -----
Repurchase Agreement
--------------------
Dated June 30, 1995 with State Street Bank and Trust Company,
due July 3, 1995, for an effective yield of 6.10%
collateralized by $1,405,000 United States Treasury Bond,
9.875% due 11/15/15 (market value of collateral is
$1,917,677 including accrued interest). (cost $1,869,316)...... 1,869,316 11.9
----------- -----
Total Short-Term Investments (cost $15,700,461) ++.................. 15,700,461 100.2
Other Assets and Liabilities........................................ (26,450) (0.2)
----------- -----
Net Assets.......................................................... $15,674,011 100.0
=========== =====
</TABLE>
------------------
* Percentage indicated are based on net assets of $15,674,011.
++ For Federal income tax purposes, cost is $15,700,461.
The accompanying notes are an integral part of the financial statements.
F-48
<PAGE> 66
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets*
------------------------ -------- --------- ------------ ---------
<S> <C> <C> <C> <C>
Finance (27.6%)
TA Enterprise Bhd .......................... MAL 30,000 $103,385 3.4
Investment Management
Peregrine Investment Holdings Ltd .......... HK 60,000 85,301 2.8
Securities Broker
Kay Hian James Capel Holdings Ltd. (Foreign) SING 70,000 84,681 2.8
Securities Broker
Land and House Co., Ltd. (Foreign) ......... THAI 3,500 73,759 2.5
Real Estate
M & G Group PLC ............................ UK 3,400 57,586 1.9
Investment Management
Axa Group .................................. FR 1,000 54,015 1.8
Insurance-Multi-Line
Barclays PLC ............................... UK 5,000 53,713 1.8
Banks-Money Center
Sparbanken Sverige AB "A" .................. SWDN 6,000 50,347 1.7
Investment Management
Societe Generale Paris ..................... FR 430 50,265 1.7
Banks-Money Center
Bangkok Bank Co., Ltd. (Foreign) ........... THAI 4,000 44,093 1.5
Banks-Money Center
Ayala Land, Inc. "B" ....................... PHIL 36,250 41,953 1.4
Real Estate
British Airport Authority PLC .............. UK 5,000 39,243 1.3
Real Estate
Anglo-Irish Bank Corp. PLC ................. IRE 43,000 36,927 1.2
Banks-Money Center
National Australia Bank Ltd ................ AUSL 4,000 31,625 1.0
Banks-Money Center
Westpac Banking Corp., Ltd ................. AUSL 7,000 25,332 0.8
Banks-Money Center
--------
832,225
--------
Services (17.4%)
Granada Group PLC .......................... UK 7,700 74,698 2.5
Leisure & Tourism
Compass Group PLC .......................... UK 12,000 70,992 2.4
Restaurants
Wolters Kluwer CVA ......................... NETH 800 70,600 2.4
Broadcasting & Publishing
Fast Retailing Co., Ltd .................... JPN 700 59,724 2.0
Retailers-Apparel
DDI Corp. .................................. JPN 7 56,172 1.9
Wireless Communications
Club Mediterrannee ** .................... FR 550 56,072 1.9
Leisure & Tourism
Autobacs Seven Co., Ltd .................... JPN 500 48,678 1.6
Retailers-Other
Cortefiel S.A .............................. SPN 1,500 45,539 1.5
Retailers-Apparel
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-49
<PAGE> 67
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets(*)
------------------ -------- ------ ------------ ---------
<S> <C> <C> <C> <C>
National Express Group PLC ........................ UK 3,000 $ 17,557 0.6
Transportation-Road & Rail
Telecom Italia -- Di Risp ......................... ITLY 7,900 16,715 0.6
Telephone Networks
--------
516,747
--------
Consumer Durables (12.5%)
Moulinex (**) ..................................... FR 2,500 60,458 2.0
Appliances & Household
Toyota Motor Corp ................................. JPN 3,000 59,476 2.0
Automobiles
Suzuki Motor Co., Ltd ............................. JPN 4,000 44,607 1.5
Automobiles
Merloni Elettrodomestici S.p.A .................... ITLY 14,000 41,095 1.4
Appliances & Household
Nissan Motor Corp., Ltd ........................... JPN 6,000 38,376 1.3
Automobiles
Electrolux AB OBO Free ............................ SWDN 780 35,515 1.2
Appliances & Household
Hyundai Motor Co. -- 144A GDR (+) (**) (***)....... KOR 1,700 34,000 1.1
Automobiles
Samsung Electronics Co.: .......................... KOR -- -- 1.1
Consumer Electronics
GDR (+) ......................................... -- 500 26,000 --
New -- GDR Non-voting (+) ....................... -- 98 4,943 --
Lucas Industries PLC .............................. UK 8,900 26,680 0.9
Auto Parts
--------
371,150
--------
Materials/Basic Industries (7.5%)
Nippon Steel Co ................................... JPN 15,000 48,855 1.6
Metals-Steel
European Vinyls Corp. International N.V.(**)....... NETH 1,000 46,611 1.5
Misc. Materials & Components
RWE AG ............................................ GER 100 34,756 1.2
Misc. Materials & Components
TPI Polene Co., Ltd. (Foreign) .................... THAI 5,000 34,043 1.1
Chemicals
Sumitomo Metal Mining Co .......................... JPN 10,000 26,080 0.9
Metals-Steel
NTS Steel Groups Co., Ltd. (Foreign) .............. THAI 12,000 23,465 0.8
Metals-Steel
SA Iron & Steel Industrial Corp., Ltd. (ISCOR)..... SAFR 10,000 11,360 0.4
Metals-Steel
--------
225,170
--------
Consumer Non-Durables (6.8%)
Hoya Corp ......................................... JPN 2,000 59,004 2.0
Other Consumer Goods
Salomon S.A ....................................... FR 100 45,253 1.5
Recreation
Polygram .......................................... NETH 600 35,442 1.2
Recreation
Reliance Industries Ltd. -- 144A GDR(+)(**)(***)... IND 1,800 32,184 1.1
Textiles & Apparel
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-50
<PAGE> 68
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets(*)
------------------ ------- ------ ------------ ---------
<S> <C> <C> <C> <C>
Nestle S.A. -- Registered ................... SWTZ 30 $ 31,251 1.0
Food
----------
203,134
----------
Energy (6.1%)
British Petroleum Co., PLC ............... UK 8,052 57,688 1.9
Oil
Elf Aquitaine ............................ FR 750 55,432 1.8
Oil
Norsk Hydro AS -- ADR (+) ................ NOR 1,200 50,100 1.7
Electrical & Gas Utilities
BBC Brown Boveri AG (Bearer) ............. SWTZ 20 20,712 0.7
Energy Equipment & Services
----------
183,932
----------
Capital Goods (6.0%)
Canon, Inc ............................... JPN 3,000 48,855 1.6
Office Equipment
Telefonaktiebolaget LM Ericsson "B" Free.. SWDN 2,400 47,871 1.6
Telecom Equipment
Allgon AB "B" Free ....................... SWDN 2,000 47,595 1.6
Telecom Equipment
Nokia AB "K" ............................. FIN 600 35,699 1.2
Telecom Equipment
----------
180,020
----------
Multi-Industry/Miscellaneous (3.6%)
Barlow Ltd ............................... SAFR 6,500 66,600 2.2
Conglomerate
Valmet Corp. "A" ......................... FIN 1,800 40,689 1.4
Conglomerate
----------
107,289
----------
Technology (3.4%)
Kyocera Corp ............................. JPN 1,000 82,370 2.7
Semiconductors
Hosiden Electronics ...................... JPN 2,000 21,005 0.7
Computers & Peripherals
----------
103,375
----------
Health Care (2.1%)
SmithKline Beecham PLC "A" ............... UK 7,000 63,343 2.1
Pharmaceuticals
---------- ----
Total Equity Investments (cost $2,751,145) .. 2,786,385 93.0
---------- ----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-51
<PAGE> 69
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Short-Term Investments Market Value Assets(*)
---------------------- ------------ ---------
<S> <C> <C>
Repurchase Agreement (5.2%)
United States (5.2%)
Dated June 30, 1995 with State Street Bank and Trust Company, due July
3, 1995, for an effective yield of 6.10% collateralized by $120,000 United
States Treasury Bond, 9.875% due 11/15/15 (market value of
collateral is $163,326, including accrued interest). (cost $157,027) ........ $ 157,027 5.2
----------- -----
Total Investments (cost $2,908,172) (++) ......................................... 2,943,412 98.2
Other Assets and Liabilities ..................................................... 54,365 1.8
----------- -----
Net Assets ....................................................................... $ 2,997,777 100.0
=========== =====
</TABLE>
-----------------
* Percentages indicated are based on net assets of $2,997,777.
** Non-income producing security.
*** 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.
+ U.S. currency denominated.
++ For Federal income tax purposes, cost is $2,911,528 and appreciation
(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 178,697
Unrealized depreciation: (146,813)
---------
Net unrealized appreciation: $ 31,884
=========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
================================================================================
The Fund's Portfolio of Investments at June 30, 1995, was concentrated in the
following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets(*)
-------------------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD) ............. 1.8 1.8
Finland (FIN/FIM) ................ 2.6 2.6
France (FR/FRF) .................. 10.7 10.7
Germany (GER/DEM) ................ 1.2 1.2
Hong Kong (HK/HKD) ............... 2.8 2.8
India (IND/INR) .................. 1.1 1.1
Ireland (IRE/IEP) ................ 1.2 1.2
Italy (ITLY/ITL) ................. 2.0 2.0
Japan (JPN/JPY) .................. 19.8 19.8
Korea (KOR/KRW) .................. 2.2 2.2
Malaysia (MAL/MYR) ............... 3.4 3.4
Netherlands (NETH/NLG) ........... 5.1 5.1
Norway (NOR/NOK) ................. 1.7 1.7
Philippines (PHIL/PHP) ........... 1.4 1.4
Singapore (SING/SGD) ............. 2.8 2.8
South Africa (S AFR/ZAR) ......... 2.6 2.6
Spain (SPN/ESP) .................. 1.5 1.5
Sweden (SWDN/SEK) ................ 6.1 6.1
Switzerland (SWTZ/CHF) ........... 1.7 1.7
Thailand (THAI/THB) .............. 5.9 5.9
United Kingdom (UK/GBP) .......... 15.4 15.4
United States (US/USD) ........... 7.0 7.0
---- --- -----
Total ............................ 93.0 7.0 100.0
==== === =====
</TABLE>
----------------
(*) Percentages indicated are based on net assets of $2,997,777.
The accompanying notes are an integral part of the financial statements.
F-52
<PAGE> 70
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
Forward Foreign Currency Contracts Outstanding
June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
Contracts to Buy: (U.S. Dollars) Price Date (Depreciation)
----------------- -------------- -------- -------- --------------
<S> <C> <C> <C> <C>
Deutsche Marks ........................................................ 72,438 1.45543 08/03/95 $ 3,729
------- -------
Total Contracts to Buy (Payable amount $68,709) ....................... 72,438 3,729
------- -------
The value of Contracts to Buy as a Percentage of Net Assets is 2.42%.
Contracts to Sell:
Deutsche Marks ........................................................ 144,876 1.37248 08/03/95 849
French Francs ......................................................... 45,314 4.95000 08/04/95 (870)
French Francs ......................................................... 21,751 5.08825 08/04/95 (997)
French Francs ......................................................... 70,812 4.96615 08/16/95 (1,564)
Japanese Yen .......................................................... 248,011 82.00000 08/10/95 6,867
Japanese Yen .......................................................... 178,476 85.61500 08/31/95 (3,273)
Netherland Guilders ................................................... 64,712 1.59740 08/15/95 (2,111)
Netherland Guilders ................................................... 64,712 1.60070 08/15/95 (2,240)
Swedish Krona ......................................................... 69,918 7.50080 08/22/00 (1,859)
Swiss Francs .......................................................... 78,507 1.20510 08/17/95 (3,824)
------- -------
Total Contracts to Sell (Receivable amount $978,067) .................. 987,089 (9,022)
------- -------
The Value of Contracts to Sell as a Percentage of Net Assets is 32.93%
Total Open Forward Foreign Currency Contracts, Net ......................................................... $(5,293)
=======
</TABLE>
-------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F-53
<PAGE> 71
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
-----------------------------
VARIABLE VARIABLE GLOBAL
STRATEGIC GOVERNMENT
INCOME FUND INCOME FUND
----------- ---------------
<S> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $22,939,638 $10,313,801
=========== ===========
At value................................................................... $22,518,911 $10,478,080
Repurchase agreement, at value and cost (Note 1)........................... 807,137 165,028
U.S. and foreign currencies................................................ 1,654 207
Receivable for Fund shares sold............................................ 13,328 30
Receivable for securities sold............................................. -- 7,878
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... 13,924 --
Dividends and dividend tax reclaims receivable............................. -- --
Interest and interest tax reclaims receivable.............................. 565,524 229,842
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 62,808 60,263
Unamortized organizational expenses (Note 1)............................... 16,421 16,421
Other receivables.......................................................... -- --
Cash held as collateral for securities loaned (Note 1)..................... -- --
----------- -----------
Total assets............................................................... 23,999,707 10,957,749
----------- -----------
Liabilities:
Due to custodian........................................................... -- --
Payable for Fund shares repurchased........................................ 5,389 40,001
Payable for securities purchased........................................... 34,751 --
Payable for forward foreign currency contracts -- closed (Note 1).......... -- 36,821
Payable for open forward foreign currency contracts, net (Note 1).......... 34,344 19,178
Payable for investment management and administration fees (Note 2)......... 29,615 13,617
Payable for Trustees' fees and expenses (Note 2)........................... 1,477 1,477
Distribution payable (Note 1).............................................. -- --
Other accrued expenses 21,921 24,019
Collateral for securities loaned (Note 1).................................. -- --
----------- -----------
Total liabilities.......................................................... 127,497 135,113
----------- -----------
Net assets.................................................................... $23,872,210 $10,822,636
=========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $27,930,692 $11,400,340
Undistributed/Accumulated net investment income (loss)..................... 130,690 6,088
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ (3,743,153) (733,481)
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. (25,292) (14,590)
Net unrealized appreciation (depreciation) of investments.................. (420,727) 164,279
----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $23,872,210 $10,822,636
=========== ===========
Shares outstanding............................................................ 2,098,866 949,731
=========== ===========
Net asset value per share..................................................... $ 11.37 $ 11.40
=========== ===========
<CAPTION>
G.T. GLOBAL:
----------------------------
VARIABLE U.S. VARIABLE
GOVERNMENT LATIN AMERICA
INCOME FUND FUND
------------- -------------
<S> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $ 3,542,869 $21,634,268
=========== ===========
At value................................................................... $ 3,671,695 $19,982,082
Repurchase agreement, at value and cost (Note 1)........................... 376,064 --
U.S. and foreign currencies................................................ 221 813,672
Receivable for Fund shares sold............................................ 5,000 537,749
Receivable for securities sold............................................. -- 281,756
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... -- --
Dividends and dividend tax reclaims receivable............................. -- 117,487
Interest and interest tax reclaims receivable.............................. 54,343 --
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 48,826 113,160
Unamortized organizational expenses (Note 1)............................... 16,421 16,421
Other receivables.......................................................... -- --
Cash held as collateral for securities loaned (Note 1)..................... -- 1,243,100
----------- -----------
Total assets............................................................... 4,172,570 23,105,427
----------- -----------
Liabilities:
Due to custodian........................................................... -- 9,966
Payable for Fund shares repurchased........................................ 5,000 511,143
Payable for securities purchased........................................... -- 402,228
Payable for forward foreign currency contracts -- closed (Note 1).......... -- --
Payable for open forward foreign currency contracts, net (Note 1).......... -- --
Payable for investment management and administration fees (Note 2)......... 4,474 35,561
Payable for Trustees' fees and expenses (Note 2)........................... 1,477 1,477
Distribution payable (Note 1).............................................. -- --
Other accrued expenses 30,547 31,463
Collateral for securities loaned (Note 1).................................. -- 1,243,100
----------- -----------
Total liabilities.......................................................... 41,498 2,234,938
----------- -----------
Net assets.................................................................... $ 4,131,072 $20,870,489
=========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $ 4,080,379 $27,602,886
Undistributed/Accumulated net investment income (loss)..................... 7,444 417,821
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ (85,577) (5,492,567)
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. -- (5,465)
Net unrealized appreciation (depreciation) of investments.................. 128,826 (1,652,186)
----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $ 4,131,072 $20,870,489
=========== ===========
Shares outstanding............................................................ 360,360 1,623,417
=========== ===========
Net asset value per share..................................................... $ 11.46 $ 12.86
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-54
<PAGE> 72
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE
GROWTH & COMMUNICATIONS EMERGING
INCOME FUND FUND MARKETS FUND
----------- -------------- ------------
<S> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $25,473,344 $33,159,520 $ 7,973,976
=========== =========== ===========
At value................................................................... $27,068,333 $38,779,012 $ 8,037,042
Repurchase agreement, at value and cost (Note 1)........................... 381,065 3,254,551 --
U.S. and foreign currencies................................................ 173,441 64,551 159,059
Receivable for Fund shares sold............................................ 33,874 304,216 59,928
Receivable for securities sold............................................. 267,926 2,066,473 349,885
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... -- -- --
Dividends and dividend tax reclaims receivable............................. 103,801 40,964 15,569
Interest and interest tax reclaims receivable.............................. 220,672 -- --
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 58,224 26,259 27,014
Unamortized organizational expenses (Note 1)............................... 16,421 20,711 --
Other receivables.......................................................... -- -- --
Cash held as collateral for securities loaned (Note 1)..................... 572,765 4,051,475 --
----------- ----------- -----------
Total assets............................................................... 28,896,522 48,608,212 8,648,497
----------- ----------- -----------
Liabilities:
Due to custodian........................................................... -- -- 90,772
Payable for Fund shares repurchased........................................ 5,901 312,072 10,000
Payable for securities purchased........................................... 293,545 618,800 608,307
Payable for forward foreign currency contracts -- closed (Note 1).......... -- -- --
Payable for open forward foreign currency contracts, net (Note 1).......... 220,732 30,792 --
Payable for investment management and administration fees (Note 2)......... 46,333 52,968 13,199
Payable for Trustees' fees and expenses (Note 2)........................... 1,477 1,477 1,477
Distribution payable (Note 1).............................................. -- -- --
Other accrued expenses 19,565 63,669 23,714
Collateral for securities loaned (Note 1).................................. 572,765 4,051,475 --
----------- ----------- -----------
Total liabilities.......................................................... 1,160,318 5,131,253 747,469
----------- ----------- -----------
Net assets.................................................................... $27,736,204 $43,476,959 $ 7,901,028
=========== =========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $27,360,352 $36,253,686 $ 8,870,075
Undistributed/Accumulated net investment income (loss)..................... 276,045 47,882 80,686
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ (1,284,379) 1,586,707 (1,114,003)
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. (210,803) (30,808) 1,204
Net unrealized appreciation (depreciation) of investments.................. 1,594,989 5,619,492 63,066
----------- ----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $27,736,204 $43,476,959 $ 7,901,028
=========== =========== ===========
Shares outstanding............................................................ 2,056,766 2,773,463 707,685
=========== =========== ===========
Net asset value per share..................................................... $ 13.49 $ 15.68 $ 11.16
=========== =========== ===========
<CAPTION>
G.T. GLOBAL:
-------------------------------------------
VARIABLE VARIABLE VARIABLE
INFRASTRUCTURE NATURAL AMERICA
FUND RESOURCES FUND FUND
-------------- -------------- -----------
<S> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $ 518,496 $ 646,705 $27,220,390
=========== =========== ===========
At value................................................................... $ 545,169 $ 664,629 $31,920,022
Repurchase agreement, at value and cost (Note 1)........................... 12,002 123,021 2,662,451
U.S. and foreign currencies................................................ 189 155 985
Receivable for Fund shares sold............................................ 6,034 300 152,522
Receivable for securities sold............................................. 12,797 -- 252,401
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... -- -- --
Dividends and dividend tax reclaims receivable............................. 1,037 877 20,656
Interest and interest tax reclaims receivable.............................. -- -- --
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 33,406 31,469 48,038
Unamortized organizational expenses (Note 1)............................... -- -- 16,421
Other receivables.......................................................... -- 37 --
Cash held as collateral for securities loaned (Note 1)..................... -- -- --
----------- ----------- -----------
Total assets............................................................... 610,634 820,488 35,073,496
----------- ----------- -----------
Liabilities:
Due to custodian........................................................... -- -- --
Payable for Fund shares repurchased........................................ -- -- 125
Payable for securities purchased........................................... 3,998 214,204 951,501
Payable for forward foreign currency contracts -- closed (Note 1).......... -- -- --
Payable for open forward foreign currency contracts, net (Note 1).......... -- -- --
Payable for investment management and administration fees (Note 2)......... 1,373 945 38,431
Payable for Trustees' fees and expenses (Note 2)........................... 1,167 1,167 1,410
Distribution payable (Note 1).............................................. -- -- --
Other accrued expenses 28,863 28,463 29,935
Collateral for securities loaned (Note 1).................................. -- -- --
----------- ----------- -----------
Total liabilities.......................................................... 35,401 244,779 1,021,402
----------- ----------- -----------
Net assets.................................................................... $ 575,233 $ 575,709 $34,052,094
=========== =========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $ 535,922 $ 550,107 $27,918,527
Undistributed/Accumulated net investment income (loss)..................... 3,137 3,425 240,597
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ 9,498 4,306 1,193,338
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. 3 (53) --
Net unrealized appreciation (depreciation) of investments.................. 26,673 17,924 4,699,632
----------- ----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $ 575,233 $ 575,709 $34,052,094
=========== =========== ===========
Shares outstanding............................................................ 43,488 43,365 1,756,499
=========== =========== ===========
Net asset value per share..................................................... $ 13.23 $ 13.28 $ 19.39
=========== =========== ===========
<CAPTION>
G.T. GLOBAL:
-------------------------
VARIABLE VARIABLE
NEW PACIFIC EUROPE
FUND FUND
----------- -----------
<S> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $19,747,955 $12,884,823
=========== ===========
At value................................................................... $19,711,271 $14,569,871
Repurchase agreement, at value and cost (Note 1)........................... 506,086 381,065
U.S. and foreign currencies................................................ 38,196 305,840
Receivable for Fund shares sold............................................ 12,656 10,092
Receivable for securities sold............................................. -- --
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... -- --
Dividends and dividend tax reclaims receivable............................. 55,656 109,848
Interest and interest tax reclaims receivable.............................. 2,942 --
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 66,985 53,688
Unamortized organizational expenses (Note 1)............................... 16,421 16,421
Other receivables.......................................................... 252 810
Cash held as collateral for securities loaned (Note 1)..................... 1,335,813 1,278,516
----------- -----------
Total assets............................................................... 21,746,278 16,726,151
----------- -----------
Liabilities:
Due to custodian........................................................... -- --
Payable for Fund shares repurchased........................................ 39,094 10,015
Payable for securities purchased........................................... -- --
Payable for forward foreign currency contracts -- closed (Note 1).......... -- --
Payable for open forward foreign currency contracts, net (Note 1).......... -- 103,268
Payable for investment management and administration fees (Note 2)......... 35,323 21,385
Payable for Trustees' fees and expenses (Note 2)........................... 1,410 1,410
Distribution payable (Note 1).............................................. -- --
Other accrued expenses 29,684 26,816
Collateral for securities loaned (Note 1).................................. 1,335,813 1,278,516
----------- -----------
Total liabilities.......................................................... 1,441,324 1,441,410
----------- -----------
Net assets.................................................................... $20,304,954 $15,284,741
=========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $21,304,397 $15,007,053
Undistributed/Accumulated net investment income (loss)..................... 169,988 164,326
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ (1,132,473) (1,471,298)
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. (274) (100,388)
Net unrealized appreciation (depreciation) of investments.................. (36,684) 1,685,048
----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $20,304,954 $15,284,741
=========== ===========
Shares outstanding............................................................ 1,463,288 988,956
=========== ===========
Net asset value per share..................................................... $ 13.88 $ 15.46
=========== ===========
<CAPTION>
G.T. GLOBAL:
---------------------------
MONEY VARIABLE
MARKET INTERNATIONAL
FUND FUND
----------- -------------
<S> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost......................................................... $13,831,145 $ 2,751,145
=========== ===========
At value................................................................... $13,831,145 $ 2,786,385
Repurchase agreement, at value and cost (Note 1)........................... 1,869,316 157,027
U.S. and foreign currencies................................................ 260 28,909
Receivable for Fund shares sold............................................ 244,782 4,834
Receivable for securities sold............................................. -- --
Receivable for forward foreign currency contracts --
closed (Note 1).......................................................... -- --
Dividends and dividend tax reclaims receivable............................. -- 15,633
Interest and interest tax reclaims receivable.............................. 12,204 --
Reimbursement from G.T. Capital Management, Inc. (Note 2).................. 59,478 42,374
Unamortized organizational expenses (Note 1)............................... 16,421 --
Other receivables.......................................................... -- --
Cash held as collateral for securities loaned (Note 1)..................... -- 97,851
----------- -----------
Total assets............................................................... 16,033,606 3,133,013
----------- -----------
Liabilities:
Due to custodian........................................................... -- --
Payable for Fund shares repurchased........................................ 245,741 --
Payable for securities purchased........................................... -- --
Payable for forward foreign currency contracts -- closed (Note 1).......... -- --
Payable for open forward foreign currency contracts, net (Note 1).......... -- 5,293
Payable for investment management and administration fees (Note 2)......... 12,010 5,765
Payable for Trustees' fees and expenses (Note 2)........................... 1,410 1,410
Distribution payable (Note 1).............................................. 67,481 --
Other accrued expenses 32,953 24,917
Collateral for securities loaned (Note 1).................................. -- 97,851
----------- -----------
Total liabilities.......................................................... 359,595 135,236
----------- -----------
Net assets.................................................................... $15,674,011 $ 2,997,777
=========== ===========
Net assets consist of:
Paid in capital (Note 4)................................................... $15,674,011 $ 3,251,730
Undistributed/Accumulated net investment income (loss)..................... -- 34,785
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................................ -- (319,320)
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies............................. -- (4,658)
Net unrealized appreciation (depreciation) of investments.................. -- 35,240
----------- -----------
Total -- representing net assets applicable to capital shares outstanding.. $15,674,011 $ 2,997,777
=========== ===========
Shares outstanding............................................................ 15,674,011 282,093
=========== ===========
Net asset value per share..................................................... $ 1.00 $ 10.63
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-55
<PAGE> 73
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
----------------------------------------------------------
VARIABLE VARIABLE GLOBAL VARIABLE U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN AMERICA
INCOME FUND INCOME FUND INCOME FUND FUND
----------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment income (Note 1):
Dividends....................................................... $ -- $ -- $ -- $ 225,660
Interest........................................................ 1,222,123 411,912 123,458 377,058
---------- ---------- -------- ---------
Total investment income*........................................ 1,222,123 411,912 123,458 602,718
---------- ---------- -------- ---------
Expenses:
Investment management and administration fees
(Note 2)...................................................... 82,818 38,170 13,911 140,686
Audit fees...................................................... 9,050 9,050 9,050 9,050
Custodian and fund accounting fees (Note 1)..................... 13,100 29,086 7,671 22,503
Legal fees...................................................... 3,101 3,284 3,101 3,101
Printing and postage expenses................................... 18,100 18,100 18,100 18,100
Registration fees............................................... 1,810 1,810 1,810 1,810
Trustees' fees and expenses (Note 2)............................ 1,810 1,810 1,810 1,810
Amortization of organizational expenses (Note 1)................ 3,106 3,106 3,106 3,106
---------- ---------- -------- ---------
Total expenses.................................................. 132,895 104,416 58,559 200,166
---------- ---------- -------- ---------
Expenses reimbursed by G.T. Capital Management,
Inc. (Note 2)............................................... (22,085) (52,968) (40,013) (69,926)
Other expense reductions (Notes 1 & 5)........................ -- -- -- (3,345)
---------- ---------- -------- ---------
Total net expenses after reimbursement and reductions........... 110,810 51,448 18,546 126,895
---------- ---------- -------- ---------
Net investment income (loss)....................................... 1,111,313 360,464 104,912 475,823
---------- ---------- -------- ---------
Net realized and unrealized gain (loss) on investments
and foreign currencies (Note 1):
Net realized gain (loss) on investments......................... 105,402 678,464 (13,037) (5,463,776)
Net realized gain (loss) on foreign currency transactions....... (231,005) (242,716) -- 14,896
---------- ---------- -------- ---------
Net realized gain (loss) during the period................. (125,603) 435,748 (13,037) (5,448,880)
---------- ---------- -------- ---------
Net change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign currencies... (6,945) (18,183) -- (6,330)
Net change in unrealized appreciation (depreciation) of
investments................................................... 1,039,471 278,339 236,728 (603,038)
---------- ---------- -------- ---------
Net unrealized appreciation (depreciation) during the
period................................................... 1,032,526 260,156 236,728 (609,368)
---------- ---------- -------- ---------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................... 906,923 695,904 223,691 (6,058,248)
---------- ---------- -------- ---------
Net increase (decrease) in net assets resulting from operations.... $2,018,236 $1,056,368 328,603 $ (5,582,425)
========== ========== ======== ============
* Net of foreign withholding taxes of.............................. $ 6,129 $ 142 $ -- $ 29,025
</TABLE>
** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
F-56
<PAGE> 74
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
----------------------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE- VARIABLE
GROWTH & COMMUNICATIONS EMERGING INFRASTRUCTURE
INCOME FUND FUND MARKETS FUND FUND**
----------- -------------- ------------ --------------
<S> <C> <C> <C> <C>
Investment income (Note 1):
Dividends....................................................... $ 343,145 $ 220,907 $ 73,640 $ 2,078
Interest........................................................ 409,431 54,027 53,000 2,776
----------- ---------- ----------- --------
Total investment income*........................................ 752,576 274,934 126,640 4,854
----------- ---------- ----------- --------
Expenses:
Investment management and administration fees
(Note 2)...................................................... 142,523 199,257 45,761 1,373
Audit fees...................................................... 9,050 9,050 8,430 7,500
Custodian and fund accounting fees (Note 1)..................... 18,100 18,200 30,100 6,000
Legal fees...................................................... 3,380 2,715 2,715 2,250
Printing and postage expenses................................... 18,100 18,100 18,100 15,000
Registration fees............................................... 1,810 1,810 1,810 1,500
Trustees' fees and expenses (Note 2)............................ 1,810 1,810 1,810 1,500
Amortization of organizational expenses (Note 1)................ 3,106 3,106 -- --
----------- ---------- ----------- --------
Total expenses.................................................. 197,879 254,048 108,726 35,123
----------- ---------- ----------- --------
Expenses reimbursed by G.T. Capital Management,
Inc. (Note 2)............................................... (33,909) (22,814) (61,978) (33,406)
Other expense reductions (Notes 1 & 5)........................ (2,148) (11,281) (794) --
----------- ---------- ----------- --------
Total net expenses after reimbursement and reductions........... 161,822 219,953 45,954 1,717
----------- ---------- ----------- --------
Net investment income (loss)....................................... 590,754 54,981 80,686 3,137
----------- ---------- ----------- --------
Net realized and unrealized gain (loss) on investments
and foreign currencies (Note 1):
Net realized gain (loss) on investments......................... (282,154) 2,331,316 (1,023,674) 9,474
Net realized gain (loss) on foreign currency transactions....... (726,989) (692,407) (10,380) 24
----------- ---------- ----------- --------
Net realized gain (loss) during the period................. (1,009,143) 1,638,909 (1,034,054) 9,498
----------- ---------- ----------- --------
Net change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign currencies... (237,455) (60,600) 1,398 3
Net change in unrealized appreciation (depreciation) of
investments................................................... 2,060,011 3,873,108 584,319 26,673
----------- ---------- ----------- --------
Net unrealized appreciation (depreciation) during the
period................................................... 1,822,556 3,812,508 585,717 26,676
----------- ---------- ----------- --------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................... 813,413 5,451,417 (448,337) 36,174
----------- ---------- ----------- --------
Net increase (decrease) in net assets resulting from operations.... $ 1,404,167 $5,506,398 $ (367,651) $ 39,311
=========== ========== =========== ========
* Net of foreign withholding taxes of.............................. $ 48,744 $ 44,813 $ 5,841 $ 261
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
---------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
NATURAL RE- AMERICA NEW PACIFIC EUROPE
SOURCES FUND** FUND FUND FUND
-------------- -------- ----------- ---------
<S> <C> <C> <C> <C>
Investment income (Note 1):
Dividends....................................................... $ 1,893 $ 64,298 $ 221,003 $ 224,639
Interest........................................................ 2,667 290,649 65,562 27,271
-------- ---------- --------- -----------
Total investment income*........................................ 4,560 354,947 286,565 251,910
-------- ---------- --------- -----------
Expenses:
Investment management and administration fees
(Note 2)...................................................... 945 91,807 96,818 72,742
Audit fees...................................................... 7,500 9,050 9,050 9,050
Custodian and fund accounting fees (Note 1)..................... 4,000 13,531 17,963 7,860
Legal fees...................................................... 2,250 3,100 3,101 3,100
Printing and postage expenses................................... 15,000 18,100 18,100 18,100
Registration fees............................................... 1,500 1,810 1,810 1,810
Trustees' fees and expenses (Note 2)............................ 1,500 1,810 1,810 1,810
Amortization of organizational expenses (Note 1)................ -- 3,106 3,106 3,106
-------- ---------- --------- -----------
Total expenses.................................................. 32,695 142,314 151,758 117,578
-------- ---------- --------- -----------
Expenses reimbursed by G.T. Capital Management,
Inc. (Note 2)............................................... (31,469) (19,645) (30,487) (26,651)
Other expense reductions (Notes 1 & 5)........................ (91) -- (4,745) (4,098)
-------- ---------- --------- -----------
Total net expenses after reimbursement and reductions........... 1,135 122,669 116,526 86,829
-------- ---------- --------- -----------
Net investment income (loss)....................................... 3,425 232,278 170,039 165,081
-------- ---------- --------- -----------
Net realized and unrealized gain (loss) on investments
and foreign currencies (Note 1):
Net realized gain (loss) on investments......................... 4,014 1,222,850 (595,843) (570,107)
Net realized gain (loss) on foreign currency transactions....... 292 -- (108,564) (719,057)
-------- ---------- --------- -----------
Net realized gain (loss) during the period................. 4,306 1,222,850 (704,407) (1,289,164)
-------- ---------- --------- -----------
Net change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign currencies... (53) -- 380 (217,796)
Net change in unrealized appreciation (depreciation) of
investments................................................... 17,924 4,217,936 741,010 1,679,316
-------- ---------- --------- -----------
Net unrealized appreciation (depreciation) during the
period................................................... 17,871 4,217,936 741,390 1,461,520
-------- ---------- --------- -----------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................... 22,177 5,440,786 36,983 172,356
-------- ---------- --------- -----------
Net increase (decrease) in net assets resulting from operations.... $ 25,602 $5,673,064 $ 207,022 $ 337,437
======== ========== ========= ===========
* Net of foreign withholding taxes of.............................. $ 200 $ -- $ 35,978 $ 34,936
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
-------------------------
MONEY VARIABLE
MARKET INTERNATIONAL
FUND FUND
-------- -------------
<S> <C> <C>
Investment income (Note 1):
Dividends....................................................... $ -- $ 37,571
Interest........................................................ 492,454 13,793
-------- ---------
Total investment income*........................................ 492,454 51,364
-------- ---------
Expenses:
Investment management and administration fees
(Note 2)...................................................... 41,091 14,415
Audit fees...................................................... 9,050 13,050
Custodian and fund accounting fees (Note 1)..................... 18,100 6,104
Legal fees...................................................... 2,715 2,715
Printing and postage expenses................................... 18,100 18,100
Registration fees............................................... 1,810 1,810
Trustees' fees and expenses (Note 2)............................ 1,810 1,810
Amortization of organizational expenses (Note 1)................ 3,106 --
-------- ---------
Total expenses.................................................. 95,782 58,004
-------- ---------
Expenses reimbursed by G.T. Capital Management,
Inc. (Note 2)............................................... (34,145) (39,981)
Other expense reductions (Notes 1 & 5)........................ -- (4)
Total net expenses after reimbursement and reductions........... 61,637 18,019
-------- ---------
Net investment income (loss)....................................... 430,817 33,345
-------- ---------
Net realized and unrealized gain (loss) on investments
and foreign currencies (Note 1):
Net realized gain (loss) on investments......................... -- (192,058)
Net realized gain (loss) on foreign currency transactions....... -- (115,913)
-------- ---------
Net realized gain (loss) during the period................. -- (307,971)
-------- ---------
Net change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign currencies... -- (10,792)
Net change in unrealized appreciation (depreciation) of
investments................................................... -- 172,150
-------- ---------
Net unrealized appreciation (depreciation) during the
period................................................... -- 161,358
-------- ---------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................... -- (146,613)
-------- ---------
Net increase (decrease) in net assets resulting from operations.... $430,817 $(113,268)
======== =========
* Net of foreign withholding taxes of.............................. $ -- $ 7,192
</TABLE>
** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
F-57
<PAGE> 75
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------------------------
VARIABLE VARIABLE GLOBAL
STRATEGIC GOVERNMENT
INCOME FUND INCOME FUND
------------ ---------------
<S> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 1,111,313 $ 360,464
Net realized gain (loss) on investments and foreign currency transactions . . (125,603) 435,748
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (6,945) (18,183)
Net change in unrealized appreciation (depreciation) of investments . . . . . 1,039,471 278,339
------------ -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . 2,018,236 1,056,368
------------ -----------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (980,623) (354,376)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 14,156,803 4,236,219
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (14,689,622) (3,769,178)
------------ -----------
Net increase (decrease) from capital share transactions . . . . . . . . . . . (532,819) 467,041
------------ -----------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . 504,794 1,169,033
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,367,416 9,653,603
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,872,210 $10,822,636
============ ===========
<CAPTION>
G.T. GLOBAL:
-----------------------------
VARIABLE U.S. VARIABLE
GOVERNMENT LATIN AMERICA
INCOME FUND FUND
------------- -------------
<S> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 104,912 $ 475,823
Net realized gain (loss) on investments and foreign currency transactions . . (13,037) (5,448,880)
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . -- (6,330)
Net change in unrealized appreciation (depreciation) of investments . . . . . 236,728 (603,038)
------------ ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . 328,603 (5,582,425)
------------ ------------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (97,468) (225,408)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- (2,769,692)
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 13,585,780 22,085,557
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (12,100,588) (19,268,879)
------------ ------------
Net increase (decrease) from capital share transactions . . . . . . . . . . . 1,485,192 2,816,678
------------ ------------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . 1,716,327 (5,760,847)
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,414,745 26,631,336
------------ ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,131,072 $ 20,870,489
============ ============
</TABLE>
================================================================================
For the year ended December 31, 1994
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------------------------
VARIABLE VARIABLE GLOBAL
STRATEGIC GOVERNMENT
INCOME FUND INCOME FUND
------------ ---------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 1,761,766 $ 636,934
Net realized gain (loss) on investments and foreign currency transactions . . (3,861,004) (1,287,732)
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (72,024) (15,202)
Net change in unrealized appreciation (depreciation) of investments . . . . . (1,980,697) (103,152)
------------ -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . (4,151,959) (769,152)
------------ -----------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (1,533,744) (604,061)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . (877,393) --
In excess of net realized gain on investments -- --
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (93,845) (69,860)
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 26,867,913 11,332,658
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (14,932,250) (6,371,492)
------------ -----------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . 11,935,663 4,961,166
------------ -----------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 5,278,722 3,518,093
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,088,694 6,135,510
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,367,416 $ 9,653,603
============ ===========
<CAPTION>
G.T. GLOBAL:
-----------------------------
VARIABLE U.S. VARIABLE
GOVERNMENT LATIN AMERICA
INCOME FUND FUND
------------- -------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 93,354 $ 167,407
Net realized gain (loss) on investments and foreign currency transactions . . (71,665) 2,726,006
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (101,640) (1,004)
Net change in unrealized appreciation (depreciation) of investments . . . . . -- (2,572,849)
----------- ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . (79,951) 319,560
----------- ------------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (94,526) (33,315)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . (9,966) (58,519)
In excess of net realized gain on investments -- --
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 4,795,207 37,598,809
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (3,169,722) (19,435,079)
----------- ------------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . 1,625,485 18,163,730
----------- ------------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 1,441,042 18,391,456
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973,703 8,239,880
----------- ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,414,745 $ 26,631,336
=========== ============
</TABLE>
------------
* The Variable International and Variable Emerging Markets Funds did not
commence operations until July 5, 1994.
** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
F-58
<PAGE> 76
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
--------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE
GROWTH & COMMUNICATIONS EMERGING
INCOME FUND FUND MARKETS FUND*
----------- -------------- -------------
<S> <C> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 590,754 $ 54,981 $ 80,686
Net realized gain (loss) on investments and foreign currency transactions . . (1,009,143) 1,638,909 (1,034,054)
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (237,455) (60,600) 1,398
Net change in unrealized appreciation (depreciation) of investments . . . . . 2,060,011 3,873,108 584,319
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . 1,404,167 5,506,398 (367,651)
----------- ----------- -----------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (401,898) (80,457) --
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- (965,478) --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 4,994,302 9,268,902 6,464,902
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (3,840,605) (6,280,933) (5,462,848)
Net increase (decrease) from capital share transactions . . . . . . . . . . . 1,153,697 2,987,969 1,002,054
----------- ----------- -----------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . 2,155,966 7,448,432 634,403
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,580,238 36,028,527 7,266,625
----------- ----------- -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,736,204 $43,476,959 $ 7,901,028
=========== =========== ===========
<CAPTION>
G.T. GLOBAL:
----------------------------------------------
VARIABLE VARIABLE VARIABLE
INFRASTRUCTURE NATURAL RE- AMERICA
FUND** SOURCES FUND** FUND
-------------- -------------- --------
<S> <C> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 3,137 $ 3,425 $ 232,278
Net realized gain (loss) on investments and foreign currency transactions . . 9,498 4,306 1,222,850
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . 3 (53) --
Net change in unrealized appreciation (depreciation) of investments . . . . . 26,673 17,924 4,217,936
--------- ---------- ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . 39,311 25,602 5,673,064
--------- ---------- ------------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . -- -- (117,889)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- -- (488,399)
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 686,461 1,167,198 28,224,098
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (250,539) (717,091) (14,496,046)
Net increase (decrease) from capital share transactions . . . . . . . . . . . 435,922 450,107 13,728,052
--------- ---------- ------------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . 475,233 475,709 18,794,828
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000 15,257,266
--------- ---------- ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 575,233 $ 575,709 $ 34,052,094
========= ========== ============
<CAPTION>
G.T. GLOBAL:
-------------------------
VARIABLE VARIABLE
NEW PACIFIC EUROPE
FUND FUND
----------- --------
<S> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 170,039 $ 165,081
Net realized gain (loss) on investments and foreign currency transactions . . (704,407) (1,289,164)
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . 380 (217,796)
Net change in unrealized appreciation (depreciation) of investments . . . . . 741,010 1,679,316
------------ -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . 207,022 337,437
------------ -----------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (75,348) (154,451)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 43,083,846 8,750,796
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (42,301,797) (8,669,528)
Net increase (decrease) from capital share transactions . . . . . . . . . . . 782,049 81,268
------------ -----------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . 913,723 264,254
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,391,231 15,020,487
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,304,954 $15,284,741
============ ===========
<CAPTION>
G.T. GLOBAL:
------------------------
MONEY VARIABLE
MARKET INTERNATIONAL
FUND FUND*
------ -------------
<S> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 430,817 $ 33,345
Net realized gain (loss) on investments and foreign currency transactions . . -- (307,971)
Net change in unrealized appreciation (depreciation) on translation
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . -- (10,792)
Net change in unrealized appreciation (depreciation) of investments . . . . . -- 172,150
------------ -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . 430,817 (113,268)
------------ -----------
Distributions to shareholders: (Note 1)
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (430,817) --
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- (4,195)
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 67,699,176 9,086,747
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (71,498,887) (8,200,427)
Net increase (decrease) from capital share transactions . . . . . . . . . . . (3,799,711) 886,320
------------ -----------
Total increase (decrease) in net assets. . . . . . . . . . . . . . . . . . . . . (3,799,711) 768,857
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,473,722 2,228,920
------------ -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,674,011 $ 2,997,777
============ ===========
</TABLE>
================================================================================
For the year ended December 31, 1994
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
--------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE
GROWTH & COMMUNICATIONS EMERGING
INCOME FUND FUND MARKETS FUND*
----------- -------------- -------------
<S> <C> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 778,934 $ 73,852 $ 40,749
Net realized gain (loss) on investments and foreign currency transactions . . (310,777) 913,277 (45,847)
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (4,932) 29,242 (194)
Net change in unrealized appreciation (depreciation) of investments . . . . . (1,038,064) 1,222,998 (521,253)
----------- ------------ -----------
Net increase (decrease) in net assets resulting from operations . . . . . . . (574,839) 2,239,369 (526,545)
----------- ------------ -----------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (644,305) (31,627) (40,749)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- -- --
In excess of net realized gain on investments -- -- (34,465)
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 21,823,916 36,093,905 11,452,183
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (6,701,077) (10,175,735) (3,583,799)
----------- ------------ -----------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . 15,122,839 25,918,170 7,868,384
----------- ------------ -----------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 13,903,695 28,125,912 7,266,625
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,676,543 7,902,615 --
----------- ------------ -----------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,580,238 $ 36,028,527 $ 7,266,625
=========== ============ ===========
<CAPTION>
G.T. GLOBAL:
---------------------------------------------
VARIABLE VARIABLE VARIABLE
INFRASTRUCTURE NATURAL RE- AMERICA
FUND** SOURCES FUND** FUND
-------------- -------------- --------
<S> <C> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . -- -- $ 126,208
Net realized gain (loss) on investments and foreign currency transactions . . -- -- 480,878
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . -- -- --
Net change in unrealized appreciation (depreciation) of investments . . . . . -- -- 365,915
-------------- -------------- ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . -- -- 973,001
-------------- -------------- ------------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . -- -- (136,601)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- -- --
In excess of net realized gain on investments -- -- --
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . -- -- 21,471,531
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . -- -- (8,750,561)
-------------- -------------- ------------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . -- -- 12,720,970
-------------- -------------- ------------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- 13,557,370
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- 1,699,896
-------------- -------------- ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- $ 15,257,266
============== ============== ============
<CAPTION>
G.T. GLOBAL:
----------------------------
VARIABLE VARIABLE
NEW PACIFIC EUROPE
FUND FUND
----------- --------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 129,772 $ 186,123
Net realized gain (loss) on investments and foreign currency transactions . . (441,437) (212,500)
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . (28,748) 101,790
Net change in unrealized appreciation (depreciation) of investments . . . . . (1,706,578) (402,308)
------------ ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . (2,046,991) (326,895)
------------ ------------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (51,590) (1,710)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . -- (12,542)
In excess of net realized gain on investments -- --
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 40,348,942 21,078,341
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (26,803,641) (11,126,870)
------------ ------------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . 13,545,301 9,951,471
------------ ------------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 11,446,720 9,610,324
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,944,511 5,410,163
------------ ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,391,231 $ 15,020,487
============ ============
<CAPTION>
G.T. GLOBAL:
---------------------------
MONEY VARIABLE
MARKET INTERNATIONAL
FUND FUND*
------ -------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 387,604 $ 11,394
Net realized gain (loss) on investments and foreign currency transactions . . -- (7,154)
Net change in unrealized appreciation (depreciation) on translation . . . . .
of assets and liabilities in foreign currencies . . . . . . . . . . . . . . -- 6,134
Net change in unrealized appreciation (depreciation) of investments . . . . . -- (136,910)
------------ ------------
Net increase (decrease) in net assets resulting from operations . . . . . . . 387,604 (126,536)
------------ ------------
Distributions to shareholders: (Note 1). . . . . . . . . . . . . . . . . . . . .
From net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . (387,604) (9,954)
From net realized gain on investments . . . . . . . . . . . . . . . . . . . . --
In excess of net realized gain on investments -- --
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested. . . . . . . . . . . . . . . 75,875,884 4,426,908
Decrease from capital shares repurchased. . . . . . . . . . . . . . . . . . . (60,177,597) (2,061,498)
------------ ------------
Net increase from capital share transactions. . . . . . . . . . . . . . . . . 15,698,287 2,365,410
------------ ------------
Total increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 15,698,287 2,228,920
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,775,435 --
------------ ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,473,722 $ 2,228,920
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-59
<PAGE> 77
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
G.T. GLOBAL:
-------------------------------------------------------------
VARIABLE STRATEGIC INCOME FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................... $ 10.82 $ 14.57 $ 12.00
------- ------- -------
Net investment income (loss)................................ 0.54(a) 1.71(b) 0.61(c)
Net realized and unrealized gain (loss) on investments...... 0.49 (4.17) 2.57
------- ------- -------
Net increase(decrease) resulting from operations.......... 1.03 (2.46) 3.18
------- ------- -------
Distributions to shareholders:
From net investment income.................................. (0.48) (0.79) (0.61)
From net realized gain on investments....................... -- (0.45) --
In excess of net realized gain on investments............... -- -- --
Return of capital........................................... -- (0.05) --
------- ------- -------
Total distributions....................................... (0.48) (1.29) (0.61)
Net asset value, end of period................................. $ 11.37 $ 10.82 $ 14.57
======= ======= =======
Total investment return........................................ 9.84% (17.09)% 27.5%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's)........................... $23,872 $23,367 $18,089
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++)..................................... 10.05% 7.58% 6.6%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 9.85% 7.43% 6.3%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 5.2%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).. 1.00% 1.00% 0.5%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 1.20% 1.15% 0.9%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 1.9%
Portfolio turnover (++)........................................ 245% 313% 245%
=====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
-------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.......................... $ 12.99 $ 13.77 $ 12.00
------- ------- -------
Net investment income (loss)............................... 0.29(a) 0.46(b) 0.31(c)
Net realized and unrealized gain (loss) on investments..... 0.41 (0.85) 1.79
------- ------- -------
Net increase(decrease) resulting from operations......... 0.70 (0.39) 2.10
------- ------- -------
Distributions to shareholders:
From net investment income................................. (0.20) (0.39) (0.28)
From net realized gain on investments...................... -- -- (0.05)
In excess of net realized gain on investments.............. -- -- --
Return of capital.......................................... -- -- --
------- ------- -------
Total distributions...................................... (0.20) (0.39) (0.33)
Net asset value, end of period................................ $ 13.49 $ 12.99 $ 13.77
======= ======= =======
Total investment return....................................... 5.42% (2.85)% 17.8%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's).......................... $27,736 $25,580 $11,677
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 4.50% 3.69% 3.2%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 4.23% 3.45% 2.7%
Without expenses assumed by G.T. Capital (d) (++).......... --% --% 1.1%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 1.23% 1.25% 0.6%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 1.50% 1.49% 1.2%
Without expenses assumed by G.T. Capital (d) (++).......... --% --% 2.8%
Portfolio turnover (++)....................................... 79% 53% 17%
</TABLE>
(a) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.01 for the Variable Strategic Income Fund, $0.06 for the
Variable Global Government Income Fund, $0.11 for the Variable U.S.
Government Income Fund, $0.04 for the Variable Latin America Fund, $0.02 for
the Variable Growth & Income Fund, $0.01 for the Variable Telecommunications
Fund, $0.09 for the Variable Emerging Markets Fund, $0.77 for the Variable
Infrastructure Fund, and $0.73 for the Variable Natural Resources Fund (Note
2).
(b) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.04 for the Variable Strategic Income Fund, $0.08 for the
Variable Global Government Income Fund, $0.48 for the Variable U.S.
Government Income Fund, $0.04 for the Variable Latin America Fund, $0.03 for
the Variable Growth & Income Fund, $0.01 for the Variable Telecommunications
Fund, and $0.07 for the Variable Emerging Markets Fund(Note 2).
(c) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.03 for the Variable Strategic Income Fund, $0.06 for the
Variable Global Government Income Fund, $0.19 for the Variable U.S.
Government Income Fund, $0.02 for the Variable Latin America Fund, $0.05 for
the Variable Growth & Income Fund, and $0.00 for the Variable
Telecommunications Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F-60
<PAGE> 78
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
--------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
--------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................... $ 10.63 $ 12.53 $ 12.00
--------- --------- --------
Net investment income (loss)................................ 0.39(a) 0.77(b) 0.57(c)
Net realized and unrealized gain (loss) on investments...... 0.77 (1.85) 0.52
--------- --------- --------
Net increase(decrease) resulting from operations.......... 1.16 (1.08) 1.09
--------- --------- --------
Distributions to shareholders:
From net investment income.................................. (0.39) (0.73) (0.56)
From net realized gain on investments....................... -- -- --
In excess of net realized gain on investments............... -- -- --
Return of capital........................................... -- (0.09) --
--------- --------- --------
Total distributions....................................... (0.39) (0.82) (0.56)
Net asset value, end of period................................. $ 11.40 $ 10.63 $ 12.53
========= ========= ========
Total investment return........................................ 11.04% (8.70)% 9.5%
========= ========= ========
Ratios and supplemental data:
Net assets, end of period (in 000's)........................... $ 10,823 $ 9,654 $ 6,136
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++)..................................... 7.08% 6.89% 6.1%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 6.03% 6.21% 5.5%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 2.4%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).. 1.00% 1.00% 0.5%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 2.05% 1.68% 1.1%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 4.2%
Portfolio turnover (++)........................................ 433% 350% 298%
<CAPTION>
G.T. GLOBAL:
-------------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................... $ 10.79 $ 12.23 $ 12.00
--------- --------- ---------
Net investment income (loss)................................ 0.32(a) 0.63(b) 0.53(c)
Net realized and unrealized gain (loss) on investments...... 0.65 (1.39) 0.23
--------- --------- ---------
Net increase(decrease) resulting from operations.......... 0.97 (0.76) 0.76
--------- --------- ---------
Distributions to shareholders:
From net investment income.................................. (0.30) (0.62) (0.53)
From net realized gain on investments....................... -- (0.06) --
In excess of net realized gain on investments............... -- -- --
Return of capital........................................... -- -- --
--------- --------- ---------
Total distributions....................................... (0.30) (0.68) (0.53)
Net asset value, end of period................................. $ 11.46 $ 10.79 $ 12.23
========= ========= =========
Total investment return........................................ 9.11% (6.27)% 6.4%
========= ========= =========
Ratios and supplemental data:
Net assets, end of period (in 000's)........................... $ 4,131 $ 2,415 $ 974
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++)..................................... 5.62% 5.53% 5.3%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 3.48% 1.29% 3.4%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% (6.9)%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).. 1.00% 0.38% 0.0%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 3.14% 4.63% 1.9%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 12.3%
Portfolio turnover (++)........................................ 272% 34% 81%
<CAPTION>
G.T. GLOBAL:
-------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER, 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........................... $ 19.17 $ 17.68 $ 12.00
--------- --------- ---------
Net investment income (loss)................................ 0.30(a) 0.11(b) 0.04(c)
Net realized and unrealized gain (loss) on investments...... (4.45) 1.49 5.64
--------- --------- ---------
Net increase(decrease) resulting from operations.......... (4.15) 1.60 5.68
--------- --------- ---------
Distributions to shareholders:
From net investment income.................................. (0.16) (0.04) --
From net realized gain on investments....................... (2.00) (0.07) --
In excess of net realized gain on investments............... -- -- --
Return of capital........................................... -- -- --
--------- --------- ---------
Total distributions....................................... (2.16) (0.11) --
Net asset value, end of period................................. $ 12.86 $ 19.17 $ 17.68
========= ========= =========
Total investment return........................................ (21.45)% 9.14% 47.3%
========= ========= =========
Ratios and supplemental data:
Net assets, end of period (in 000's)........................... $ 20,870 $ 26,631 $ 8,240
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++)..................................... 4.60% 0.82% 1.0%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 3.89% 0.49% 0.4%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% (2.5)%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).. 1.22% 1.25% 0.7%
Without reimbursement by G.T. Capital and expense
reductions (++)............................................ 1.93% 1.58% 1.3%
Without expenses assumed by G.T. Capital (d) (++)........... --% --% 4.2%
Portfolio turnover (++)........................................ 190% 185% 78%
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
-----------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND*
-----------------------------------------------------------
SIX MONTHS -
ENDED JUNE 30, YEAR ENDED OCTOBER 18, 1993
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER, 31, 1993
---------------- ----------------- ---------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.......................... $ 13.98 $ 13.07 $ 12.00
--------- -------- ---------
Net investment income (loss)............................... 0.02(a) 0.01(b) 0.04(c)
Net realized and unrealized gain (loss) on investments..... 2.07 0.92 1.03
--------- -------- ---------
Net increase(decrease) resulting from operations......... 2.09 0.93 1.07
--------- -------- ---------
Distributions to shareholders:
From net investment income................................. (0.03) (0.02) --
From net realized gain on investments...................... (0.36) -- --
In excess of net realized gain on investments.............. -- -- --
Return of capital.......................................... -- -- --
--------- -------- ---------
Total distributions...................................... (0.39) (0.02) --
Net asset value, end of period................................ $ 15.68 $ 13.98 $ 13.07
========= ======== =========
Total investment return....................................... 15.01% 7.15% 8.9%
========= ======== =========
Ratios and supplemental data:
Net assets, end of period (in 000's).......................... $ 43,477 $ 36,029 $ 7,903
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 0.30% 0.31% 2.5%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 0.11% 0.07% 2.3%
Without expenses assumed by G.T. Capital (d) (++).......... --% --% 1.6%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 1.18% 1.25% 0.9%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 1.37% 1.49% 1.1%
Without expenses assumed by G.T. Capital (d) (++).......... --% --% 1.8%
Portfolio turnover (++)....................................... 76% 81% 20%
<CAPTION>
G.T. GLOBAL:
-----------------------------------
VARIABLE EMERGING MARKETS FUND (**)
-----------------------------------
SIX MONTHS
ENDED JUNE 30, JULY 5, 1994 TO
1995 (UNAUDITED) DECMBER 31, 1994
---------------- ----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.......................... $11.89 $ 12.00
------ ---------
Net investment income (loss)............................... 0.12(a) 0.07(b)
Net realized and unrealized gain (loss) on investments..... (0.85) (0.05)
------ ---------
Net increase(decrease) resulting from operations......... (0.73) 0.02
------ ---------
Distributions to shareholders:
From net investment income................................. -- (0.07)
From net realized gain on investments...................... -- --
In excess of net realized gain on investments.............. -- (0.06)
Return of capital.......................................... -- --
------ ---------
Total distributions...................................... -- (0.13)
Net asset value, end of period................................ $11.16 $ 11.89
====== =========
Total investment return....................................... (6.14)% 0.12%
====== =========
Ratios and supplemental data:
Net assets, end of period (in 000's).......................... $7,901 $ 7,267
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 2.54% 4.10%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 0.53% (0.20)%
Without expenses assumed by G.T. Capital (d) (++).......... --% --%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5) (++).................................... 1.23% 0.00%
Without reimbursement by G.T. Capital and expense
reductions (++)........................................... 3.24% 4.30%
Without expenses assumed by G.T. Capital (d) (++).......... --% --%
Portfolio turnover (++)....................................... 203% 117%
<CAPTION>
G.T. GLOBAL:
--------------------------------------------------------------------------
VARIABLE INFRASTRUCTURE FUND*** VARIABLE NATURAL RESOURCES FUND***
---------------------------------- -------------------------------------
JANUARY 31,1995 JANUARY 31,1995
TO JUNE 30, 1995 (UNAUDITED) TO JUNE 30, 1995 (UNAUDITED)
---------------------------------- -------------------------------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................... $ 12.00 $ 12.00
--------- ---------
Net investment income (loss)........................ 0.07(a) 0.08(a)
Net realized and unrealized gain (loss) on
investments........................................ 1.16 1.20
--------- ---------
Net increase(decrease) resulting from operations.. 1.23 1.28
--------- ---------
Distributions to shareholders:
From net investment income.......................... -- --
From net realized gain on investments............... -- --
In excess of net realized gain on investments....... -- --
Return of capital................................... -- --
--------- ---------
Total distributions............................... -- --
Net asset value, end of period......................... $ 13.23 $ 13.28
========= =========
Total investment return................................ 10.25% 10.67%
========= =========
Ratios and supplemental data:
Net assets, end of period (in 000's)................... $ 575 $ 576
Ratio of net investment income (loss) to average
net assets:
With reimbursement by G.T. Capital and expense
reductions (Notes 1, 2, & 5) (++).................. 2.28% 3.51%
Without reimbursement by G.T. Capital and expense
reductions (++).................................... (22.04)% (28.83)%
Without expenses assumed by G.T.
Capital (d) (++)................................... --% --%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense
reductions (Notes 1, 2, & 5) (++).................. 1.25% 1.16%
Without reimbursement by G.T. Capital and expense
reductions (++).................................... 25.57% 33.50%
Without expenses assumed by G.T. Capital (d) (++)... --% --%
Portfolio turnover (++)................................ 90% 195%
</TABLE>
---------------
(d) During the period ended December 31, 1993, G.T. Capital voluntarily assumed
certain expenses for the Funds (Note 2).
+ Not annualized for periods less than one year.
++ Annualized for periods less than one year.
* The Variable Telecommunications Fund did not commence operations until
October 18, 1993.
** The Variable Emerging Markets Fund did not commence operations until July 5,
1994.
*** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
F-61
<PAGE> 79
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------
VARIABLE AMERICA FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 15.81 $ 13.75 $12.00
------- ------- ------
Net investment income (loss)..................................... 0.08 (a) 0.48 (b) 1.11 (c)
Net realized and unrealized gain (loss) on investments........... 3.86 2.08 0.64
------- ------- ------
Net increase(decrease) resulting from operations............... 3.94 2.56 1.75
------- ------- ------
Distributions to shareholders:
From net investment income....................................... (0.07) (0.50) --
From net realized gain on investments............................ (0.29) -- --
------- ------- ------
Total distributions............................................ (0.36) (0.50) --
Net asset value, end of period...................................... $ 19.39 $ 15.81 $13.75
======= ======= ======
Total investment return +........................................... 24.92% 18.88% 14.7%
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $34,052 $15,257 $1,700
======= ======= ======
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 1.90% 1.83% 14.1%
Without reimbursement by G.T. Capital and expense reductions++... 1.74% 0.76% 12.8%
Without expenses assumed by G.T. Capital (d)++................... --% --% 7.6%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 1.00% 0.98% 0.0%
Without reimbursement by G.T. Capital and expense reductions++... 1.16% 2.05% 1.3%
Without expenses assumed by G.T. Capital (d)++................... --% --% 6.5%
Portfolio turnover rate++........................................... 57% 139% 831%
</TABLE>
================================================================================
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------
VARIABLE INTERNATIONAL FUND*
-----------------------------------
SIX MONTHS JULY 5, 1994, TO
ENDED JUNE 30, DECEMBER 31, 1994
1995 (UNAUDITED) 1994
---------------- -----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $11.25 $12.00
====== ======
Net investment income (loss)..................................... 0.12 (a) 0.06 (b)
Net realized and unrealized gain (loss) on investments........... (0.72) (0.76)
------ ------
Net increase(decrease) resulting from operations............... (0.60) (0.70)
------ ------
Distributions to shareholders:
From net investment income....................................... -- (0.05)
From net realized gain on investments............................ (0.02) --
------ ------
Total distributions............................................ (0.02) (0.05)
Net asset value, end of period...................................... $10.63 $11.25
====== ======
Total investment return +........................................... (5.38)% (5.81)%
====== ======
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $2,998 $2,229
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions........
(Notes 1, 2, & 5)++............................................ 2.31% 3.33%
Without reimbursement by G.T. Capital and expense reductions++... (0.46)% (2.56)%
Without expenses assumed by G.T. Capital (d)++................... --% --%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions........
(Notes 1, 2, & 5)++............................................ 1.25% 0.69%
Without reimbursement by G.T. Capital and expense reductions++... 4.02% 6.58%
Without expenses assumed by G.T. Capital (d)++................... --% --%
Portfolio turnover rate++........................................... 134% 17%
</TABLE>
-------------------------
(a) Includes reimbursement by G.T. Capital Management Inc. of Fund operating
expenses of $0.01 for the Variable America Fund, $0.02 for the Variable New
Pacific Fund, $0.03 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.14 for the Variable International Fund (Note 2).
(b) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.28 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.04 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.11 for the Variable International Fund (Note 2).
(c) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.10 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.03 for the Variable Europe Fund, and $0.01 for the Money
Market Fund (Note 2).
(d) During the period ended December 31, 1993, G.T. Capital voluntarily assumed
certain expenses for the Funds (Note 2).
+ Not annualized for periods less than one year.
++ Annualized for periods less than one year.
* The Variable International Fund did not commence operations until July 5,
1994.
The accompanying notes are an integral part of the financial statements.
F-62
<PAGE> 80
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
---------------------------------------------------------------------
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------
VARIABLE NEW PACIFIC FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 14.01 $ 16.07 $12.00
------- ------- ------
Net investment income (loss)..................................... 0.11 (a) 0.08 (b) 0.04 (c)
Net realized and unrealized gain (loss) on investments........... (0.19) (2.08) 4.03
------- ------- ------
Net increase(decrease) resulting from operations............... (0.08) (2.00) 4.07
------- ------- ------
Distributions to shareholders:
From net investment income....................................... ($0.05) (0.06) --
From net realized gain on investments............................ -- -- --
------- ------- ------
Total distributions............................................ (0.05) (0.06) --
Net asset value, end of period...................................... $ 13.88 $ 14.01 $16.07
======= ======= ======
Total investment return +........................................... (0.57)% (12.47)% 33.9%
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $20,305 $19,391 $7,945
======= ======= ======
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 1.76% 0.83% 0.9%
Without reimbursement by G.T. Capital and expense reductions++... 1.39% 0.48% 0.3%
Without expenses assumed by G.T. Capital (d)++................... --% --% (2.0)%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 1.20% 1.25% 0.6%
Without reimbursement by G.T. Capital and expense reductions++... 1.57% 1.60% 1.3%
Without expenses assumed by G.T. Capital (d)++................... --% --% 3.6%
Portfolio turnover rate++........................................... 33% 30% 15%
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------
VARIABLE EUROPE FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM-
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 15.22 $ 15.33 $12.00
------- ------- ------
Net investment income (loss)..................................... 0.17 (a) 0.16 (b) 0.05 (c)
Net realized and unrealized gain (loss) on investments........... 0.23 (0.25) 3.28
------- ------- ------
Net increase(decrease) resulting from operations............... 0.40 (0.09) 3.33
------- ------- ------
Distributions to shareholders:
From net investment income....................................... (0.16) -- --
From net realized gain on investments............................ -- (0.02) --
------- ------- ------
Total distributions............................................ (0.16) (0.02) --
Net asset value, end of period...................................... $ 15.46 $ 15.22 $15.33
======= ======= ======
Total investment return +........................................... 2.63% (0.59)% 27.8%
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $15,285 $15,020 $5,410
======= ======= ======
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 2.26% 1.48% 1.1%
Without reimbursement by G.T. Capital and expense reductions++... 1.84% 1.07% 0.4%
Without expenses assumed by G.T. Capital (d)++................... --% --% (2.8)%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 1.19% 1.25% 0.7%
Without reimbursement by G.T. Capital and expense reductions++... 1.61% 1.66% 1.4%
Without expenses assumed by G.T. Capital (d)++................... --% --% 4.6%
Portfolio turnover rate++........................................... 85% 61% 27%
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL:
------------
MONEY MARKET FUND
-------------------------------------------------------------
SIX MONTHS FEBRUARY 10, 1993 (COM
ENDED JUNE 30, YEAR ENDED MENCEMENT OF OPERATIONS)
1995 (UNAUDITED) DECEMBER 31, 1994 TO DECEMBER, 31, 1993
---------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 1.00 $ 1.00 $ 1.00
------- ------- ------
Net investment income (loss)..................................... 0.03 (a) 0.03 (b) 0.03 (c)
Net realized and unrealized gain (loss) on investments........... -- -- --
------- ------- ------
Net increase(decrease) resulting from operations............... 0.03 0.03 0.03
------- ------- ------
Distributions to shareholders:
From net investment income....................................... (0.03) (0.03) (0.03)
From net realized gain on investments............................ -- -- --
------- ------- ------
Total distributions............................................ (0.03) (0.03) (0.03)
Net asset value, end of period...................................... $ 1.00 $ 1.00 $ 1.00
======= ======= ======
Total investment return +........................................... 2.64% 3.48% 2.6%
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $15,674 $19,474 $3,775
======= ======= ======
Ratio of net investment income (loss) to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 5.22% 3.70% 2.9%
Without reimbursement by G.T. Capital and expense reductions++... 4.81% 3.64% 2.1%
Without expenses assumed by G.T. Capital (d)++................... --% --% (2.6)%
Ratio of expenses to average net assets:
With reimbursement by G.T. Capital and expense reductions
(Notes 1, 2, & 5)++............................................ 0.75% 0.75% 0.2%
Without reimbursement by G.T. Capital and expense reductions++... 1.16% 0.81% 1.0%
Without expenses assumed by G.T. Capital (d)++................... --% --% 5.7%
Portfolio turnover rate++........................................... N/A N/A N/A
</TABLE>
-------------------------
(a) Includes reimbursement by G.T. Capital Management Inc. of Fund operating
expenses of $0.01 for the Variable America Fund, $0.02 for the Variable New
Pacific Fund, $0.03 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.14 for the Variable International Fund (Note 2).
(b) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.28 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.04 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.11 for the Variable International Fund (Note 2).
(c) Includes reimbursement by G.T. Capital Management, Inc. of Fund operating
expenses of $0.10 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.03 for the Variable Europe Fund, and $0.01 for the Money
Market Fund (Note 2).
(d) During the period ended December 31, 1993, G.T. Capital voluntarily assumed
certain expenses for the Funds (Note 2).
+ Not annualized for periods less than one year.
++ Annualized for periods less than one year.
* The Variable International Fund did not commence operations until July 5,
1994.
The accompanying notes are an integral part of the financial statements.
F-63
<PAGE> 81
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO
FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Variable Investment Series and G.T. Global Variable Investment Trust
("Companies") were organized as Massachusetts business trusts on May 26, 1992
and September 17, 1992, respectively. The Companies are registered under the
Investment Company Act of 1940, as amended ("1940 Act") as open-end management
investment companies. The G.T. Global Variable Investment Series operates as a
series company currently issuing five classes of shares of beneficial interest:
G.T. Global: Variable New Pacific Fund (formerly G.T. Global:Variable Pacific
Fund), G.T. Global: Variable Europe Fund, G.T. Global: Variable America Fund,
G.T. Global: Variable International Fund and G.T. Global: Money Market Fund.
G.T. Global Variable Investment Trust operates as a series company currently
issuing nine classes of shares of beneficial interest: G.T. Global: Variable
Latin America Fund, G.T. Global: Variable Growth & Income Fund, G.T. Global:
Variable Strategic Income Fund, G.T. Global: Variable Global Government Income
Fund, G.T. Global: Variable U.S. Government Income Fund, G.T. Global: Variable
Emerging Markets Fund, G.T. Global: Variable Telecommunications Fund, G.T.
Global: Variable Infrastructure Fund, and G.T. Global: Variable Natural
Resources Fund. (The classes of shares of beneficial interest for the two
companies are referred to herein collectively as the "Funds.") Each of the Funds
is classified as a diversified management investment company; except for G.T.
Global: Variable Latin America Fund, G.T. Global: Variable Growth & Income Fund,
G.T. Global: Variable Strategic Income Fund and G.T. Global: Variable Global
Government Income Fund, which are each registered as a non-diversified
management investment company under the 1940 Act.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete 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 in
which such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by G.T. Capital Management,
Inc. ("G.T. Capital") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when G.T.
Capital deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with a maturity of 60
days or less are valued at amortized cost adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of each of
the Companies' Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Companies' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds 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 Funds 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 Funds do 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 and 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
Funds'
F-64
<PAGE> 82
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
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 Funds, it is the
Funds' 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 Funds
under each agreement at its maturity. G.T. Capital is responsible for
determining that the value of these underlying securities remains at least equal
to the resale price.
(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 Funds as an unrealized gain or loss. When the
Forward Contract is closed, the Funds record a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. Forward Contracts involve market risk in excess of the
amounts shown in the Funds' "Statements of Assets and Liabilities." The Funds
could be exposed to risk if the counterparties are unable to meet the terms of
the contracts or if the value of the currency changes unfavorably. The Funds 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 a 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 a 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. A 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 set aside cash, U.S. government securities
or other liquid, high grade debt securities in an amount not less than the
exercise price or otherwise provide adequate cover at all times while the put
option is outstanding. The Funds may use options to manage their exposure to the
stock or bond markets and to fluctuations in currency values or interest rates.
The premium paid by a 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 a Fund has purchased expires on the stipulated
expiration date, the Fund would realize a loss in the amount of the cost of the
option. If a Fund enters into a closing sale transaction, the Fund would realize
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If a 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 a 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 a
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 Funds may use futures contracts to manage its exposure to the stock or bond
markets 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
F-65
<PAGE> 83
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
sold is determined on a first-in, first-out basis, unless otherwise specified.
Dividends are recorded on the ex-dividend date. Interest income is recorded on
the accrual basis. Where a high level of uncertainty exists as to its
collection, income is recorded net of all withholding tax with any rebate
recorded when received. A 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) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. For the
Money Market Fund, dividends are declared daily and paid monthly from net
investment income. The Variable Strategic Income Fund, Variable Global
Government Income Fund and Variable U.S. Government Income Fund declare and pay
dividends from net investment income, if any, monthly. The Variable Growth &
Income Fund declares and pays dividends from net investment income, if any,
quarterly. The Variable Latin America Fund, Variable Telecommunications Fund,
Variable New Pacific Fund, Variable Europe Fund, Variable Emerging Markets Fund,
Variable International Fund, Variable America Fund, Variable Infrastructure
Fund, and Variable Natural Resources Fund declare and pay dividends from net
investment income, if any, annually. With respect to each Fund, dividends from
net realized capital gains, if any, are normally declared and paid annually.
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.
(I) TAXES
It is the policy of the Funds to continue 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 Funds 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, and unrealized appreciation of securities held, or for
excise tax on income and capital gains. The following funds have capital loss
carryforwards:
<TABLE>
<CAPTION>
Capital Loss Expires in
G.T. Global Funds Carryforward Year
----------------- ------------ ----
<S> <C> <C>
Variable Strategic Income $3,286,925 2002
Variable Global Government Income 1,196,724 2002
Variable U.S. Government Income 71,665 2002
Variable Growth and Income 221,307 2002
Variable New Pacific Fund 415,778 2002
12,228 2001
Variable Europe Fund 69,767 2002
Variable International Fund 7,253 2002
</TABLE>
(J) DEFERRED ORGANIZATIONAL EXPENSES
Costs incurred by G.T. Global Variable Investment Series and Trust in connection
with their organization, which aggregated $125,333 and $188,000, respectively,
are being amortized on a straight-line basis for a five year period. While G.T.
Capital has advanced certain of the Companies' organizational costs incurred to
date, the Companies may reimburse G.T. Capital for the amount of these advances.
In the event that G.T. Capital redeems any of the initial 2,083.333 shares of
each of the Variable New Pacific Fund, Variable Europe Fund and Variable America
Fund; or the initial 25,000 shares of the Money Market Fund; or the initial
1,666.667 shares of each of the Variable Strategic Income Fund, Variable
Government Income Fund, Variable U.S. Government Income Fund, Variable Latin
America Fund and the Variable Growth & Income Fund; or the initial 1.000 share
of the Variable Telecommunications Fund, within the five year amortization
period, the respective Fund's unamortized organizational expenses allocable to
the shares redeemed will be deducted from G.T. Capital's redemption proceeds.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Funds' investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) INDEXED SECURITIES
The Funds 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 Funds are 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. At the end of the period, restricted
securities (excluding 144A issues) are shown at the end of the Portfolio of
Investments.
F-66
<PAGE> 84
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
(N) PORTFOLIO SECURITIES LOANED
At June 30, 1995 stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the Fund:
<TABLE>
<CAPTION>
JUNE 30, 1995 SIX MONTHS ENDED
--------------------------------------- JUNE 30, 1995
AGGREGATE VALUE ----------------
ON LOAN CASH COLLATERAL FEES RECEIVED
--------------- --------------- ----------------
<S> <C> <C> <C>
G.T. GLOBAL:
Variable Strategic Income Fund . . . . . . . . . . . $ -- $ -- $ --
Variable Global Government Income Fund . . . . . . . -- -- --
Variable U.S. Government Income Fund . . . . . . . . -- -- --
Variable Latin America Fund . . . . . . . . . . . . . 895,163 1,243,100 1,044
Variable Growth and Income Fund . . . . . . . . . . . 532,616 572,765 2,148
Variable Telecommunications Fund . . . . . . . . . . 3,839,630 4,051,475 10,168
Variable Emerging Markets Fund . . . . . . . . . . . -- -- --
Variable Infrastructure Fund . . . . . . . . . . . . -- -- --
Variable Natural Resources Fund . . . . . . . . . . . -- -- --
Variable America Fund . . . . . . . . . . . . . . . . -- -- --
Variable New Pacific Fund . . . . . . . . . . . . . . 1,248,444 1,335,813 4,533
Variable Europe Fund . . . . . . . . . . . . . . . . 1,195,157 1,278,516 4,098
Money Market Fund . . . . . . . . . . . . . . . . . . -- -- --
Variable International Fund . . . . . . . . . . . . . 93,077 97,851 4
</TABLE>
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. Fees received from
securities loaned were used to reduce the Funds' custodian fees.
2. RELATED PARTIES
G.T. Capital is the Funds' investment manager and administrator. For these
services, the Money Market Fund pays G.T. Capital an investment management and
administration fee at the annualized rate of 0.50% of that Fund's average daily
net assets. The Variable Strategic Income Fund, Variable Global Government
Income Fund, Variable U.S. Government Income Fund and Variable America Fund each
pays G.T. Capital an investment management and administration fee at the
annualized rate of 0.75% of the Fund's average daily net assets. The Variable
Growth & Income Fund, Variable Latin America Fund, Variable Telecommunications
Fund, Variable New Pacific Fund, Variable Emerging Markets Fund, Variable
International Fund, Variable Europe Fund, Variable Infrastructure Fund, and
Variable Natural Resources Fund each pays G.T. Capital an investment management
and administration fee at the annualized rate of 1.00% of its average daily net
assets. All fees are computed daily and paid monthly.
G.T. Capital has undertaken to limit the total operating expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary items) of each of the
Variable New Pacific Fund, the Variable Europe Fund, the Variable Latin America
Fund, the Variable Telecommunications Fund, Variable Emerging Markets Fund,
Variable International Fund, Variable Infrastructure Fund, Variable Natural
Resources Fund, and the Variable Growth & Income Fund to 1.25% of their
respective average daily net assets. In addition, G.T. Capital has undertaken to
limit the total operating expenses (exclusive of brokerage commissions,
interest, taxes and extraordinary items) of each of the Variable Strategic
Income Fund, the Variable Global Government Income Fund, the Variable U.S.
Government Income Fund, and the Variable America Fund to 1.00% of their
respective net assets. Likewise, G.T. Capital has undertaken to limit the total
operating expenses (exclusive of brokerage commissions, interest, taxes and
extraordinary items) of the Money Market Fund to .75% of its net assets. From
time to time, G.T. Capital in its sole discretion may waive its fees and/or
voluntarily assume certain Fund expenses.
All general expenses of the Companies and joint expenses of the Funds are
allocated among the Funds on a basis deemed fair and equitable.
G.T. Global Financial Services, Inc. ("G.T. Global"), an affiliate of G.T.
Capital, is the Funds' distributor. G.T. Global Investor Services, Inc. ("G.T.
Services"), an affiliate of G.T. Capital and G.T. Global, is the Funds' transfer
agent.
F-67
<PAGE> 85
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
G.T. Global is the principal underwriter of the Variable Annuity Contracts.
Underwriting commissions retained by G.T. Global are as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995
----------------
<S> <C>
G.T. GLOBAL:
Variable Strategic Income Fund . . . . . . . . . . . $15,675
Variable Global Government Income Fund . . . . . . . 9,023
Variable U.S. Government Income Fund . . . . . . . . 4,720
Variable Latin America Fund . . . . . . . . . . . . . 29,515
Variable Growth and Income Fund . . . . . . . . . . . 10,111
Variable Telecommunications Fund . . . . . . . . . . 33,022
Variable Emerging Markets Fund . . . . . . . . . . . 27,091
Variable Infrastructure Fund . . . . . . . . . . . . 1,089
Variable Natural Resources Fund . . . . . . . . . . . 293
Variable America Fund . . . . . . . . . . . . . . . . 39,298
Variable New Pacific Fund . . . . . . . . . . . . . . 17,548
Variable Europe Fund . . . . . . . . . . . . . . . . 10,239
Money Market Fund . . . . . . . . . . . . . . . . . . 65,410
Variable International Fund . . . . . . . . . . . . . 1,376
</TABLE>
The Companies pay each of their Trustees who is not an employee, officer or
director of G.T. Capital, G.T. Global or G.T. Services $5,000 per year.
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund, for the period ended June 30, 1995:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
G.T. GLOBAL:
Variable Strategic Income Fund . . . . . . . $7,005,916 $20,005,183
Variable Global Government Income Fund . . . 4,461,930 16,570,848
Variable U.S. Government Income Fund . . . . 3,279,174 217,250
Variable Latin America Fund . . . . . . . . . -- 16,382,958
Variable Growth & Income Fund . . . . . . . . 1,591,124 11,106,314
Variable Telecommunications Fund . . . . . . -- 13,375,807
Variable Emerging Markets Fund . . . . . . . -- 8,545,149
Variable Infrastructure Fund . . . . . . . . -- 602,516
Variable Natural Resources Fund . . . . . . . -- 666,042
Variable America Fund . . . . . . . . . . . . -- 15,296,950
Variable New Pacific Fund . . . . . . . . . . -- 5,011,779
Variable Europe Fund . . . . . . . . . . . . -- 6,311,722
Money Market Fund . . . . . . . . . . . . . -- --
Variable International Fund . . . . . . . . . -- 2,523,438
<CAPTION>
SALES
------------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
G.T. GLOBAL:
Variable Strategic Income Fund . . . . . . . $6,810,434 $18,795,058
Variable Global Government Income Fund . . . 2,770,613 17,566,857
Variable U.S. Government Income Fund . . . . 3,214,910 --
Variable Latin America Fund . . . . . . . . . -- 16,577,294
Variable Growth & Income Fund . . . . . . . . 570,538 8,685,788
Variable Telecommunications Fund . . . . . . -- 15,091,138
Variable Emerging Markets Fund . . . . . . . -- 5,879,560
Variable Infrastructure Fund . . . . . . . . -- 93,494
Variable Natural Resources Fund . . . . . . . -- 150,493
Variable America Fund . . . . . . . . . . . . -- 4,487,639
Variable New Pacific Fund . . . . . . . . . . -- 2,809,946
Variable Europe Fund . . . . . . . . . . . . -- 5,856,523
Money Market Fund . . . . . . . . . . . . . -- --
Variable International Fund . . . . . . . . . -- 1,669,068
</TABLE>
F-68
<PAGE> 86
G.T. GLOBAL
VARIABLE INVESTMENT FUNDS
The Funds' written options activity for the period ended June 30, 1995, was as
follows:
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
UNDERLYING
PRINCIPAL AMOUNT PREMIUMS
---------------- --------
<S> <C> <C>
Options outstanding at December 31, 1994 .................................................. $ -- $ --
Options written during the period ended June 30, 1995...................................... 1,000,000 8,750
Options cancelled in closing purchase transactions ........................................ -- --
Options expired prior to exercise ......................................................... (1,000,000) (8,750)
Options exercised ......................................................................... -- --
----------- -------
Options outstanding at June 30, 1995 ...................................................... $ -- $ --
=========== =======
</TABLE>
G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME FUND
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
UNDERLYING NOMINAL
AMOUNT IN USD PREMIUMS
------------------ --------
<S> <C> <C>
Options outstanding at December 31, 1994 .................................................. $ -- $ --
Options written during the period ended June 30, 1995 ..................................... 980,000 4,508
Options cancelled in closing purchase transactions (Realized loss of $11,564) ............. (980,000) (4,508)
Options expired prior to exercise ......................................................... -- --
Options exercised ......................................................................... -- --
---------- -------
Options outstanding at June 30, 1995 ...................................................... $ -- $ --
========== =======
</TABLE>
4. CAPITAL SHARES
At June 30, 1995, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
Shares sold...................................................... 1,194,405 $ 13,176,179 1,978,885 $ 24,363,028
Shares issued in connection with reinvestment of distributions... 90,722 980,624 217,861 2,504,885
---------- ------------ ---------- ------------
1,285,127 14,156,803 2,196,746 26,867,913
Shares repurchased............................................... (1,345,155) (14,689,622) (1,279,651) (14,932,250)
---------- ------------ ---------- ------------
Net increase (decrease).......................................... (60,028) $ (532,819) 917,095 $ 11,935,663
========== ============ ========== ============
G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME FUND
Shares sold...................................................... 403,380 $ 3,881,843 929,187 $ 10,658,737
Shares issued in connection with reinvestment of distribution.... 32,118 354,376 60,221 673,921
---------- ------------ ---------- ------------
435,498 4,236,219 989,408 11,332,658
Shares repurchased............................................... (393,494) (3,769,178) (571,500) (6,371,492)
---------- ------------ ---------- ------------
Net increase..................................................... 42,004 $ 467,041 417,908 $ 4,961,166
========== ============ ========== ============
G.T. GLOBAL: VARIABLE U.S. GOVERNMENT INCOME FUND
Shares sold...................................................... 1,219,528 $ 13,488,313 423,487 $ 4,690,715
Shares issued in connection with reinvestmentf distributions..... 8,772 97,467 9,399 104,492
---------- ------------ ---------- ------------
1,228,300 13,585,780 432,886 4,795,207
Shares repurchased............................................... (1,091,771) (12,100,588) (288,661) (3,169,722)
---------- ------------ ---------- ------------
Net increase..................................................... 136,529 $ 1,485,192 144,225 $ 1,625,485
========== ============ ========== ============
G.T. GLOBAL: VARIABLE LATIN AMERICA FUND
Shares sold...................................................... 1,287,265 $ 19,094,289 1,888,080 $ 37,506,975
Shares issued in connection with reinvestment of distributions... 236,651 2,991,268 5,690 91,834
---------- ------------ ---------- ------------
1,523,916 22,085,557 1,893,770 37,598,809
Shares repurchased............................................... (1,289,843) (19,268,879) (970,532) (19,435,079)
---------- ------------ ---------- ------------
Net increase..................................................... 234,073 $ 2,816,678 923,238 $ 18,163,730
========== ============ ========== ============
G.T. GLOBAL: VARIABLE GROWTH & INCOME FUND
Shares sold...................................................... 349,366 $ 4,592,404 1,577,747 $ 21,179,611
Shares issued in connection with reinvestment of distributions... 30,307 401,898 49,422 644,305
---------- ------------ ---------- ------------
379,673 4,994,302 1,627,169 21,823,916
Shares repurchased............................................... (292,847) (3,840,605) (505,030) (6,701,077)
---------- ------------ ---------- ------------
Net increase..................................................... 86,826 $ 1,153,697 1,122,139 $ 15,122,839
========== ============ ========== ============
G.T. GLOBAL: VARIABLE TELECOMMUNICATIONS FUND
Shares sold...................................................... 580,465 $ 8,222,967 2,738,401 $ 36,062,278
Shares issued in connection with reinvestment of distributions... 68,050 1,045,935 2,609 31,627
---------- ------------ ---------- ------------
648,515 9,268,902 2,741,010 36,093,905
Shares repurchased............................................... (451,434) (6,280,933) (769,197) (10,175,735)
---------- ------------ ---------- ------------
Net increase..................................................... 197,081 $ 2,987,969 1,971,813 $ 25,918,170
========== ============ ========== ============
</TABLE>
F-69
<PAGE> 87
G.T. GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
JULY 5, 1994
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
G.T. GLOBAL: VARIABLE EMERGING MARKETS FUND
Shares sold........................................................ 608,339 $ 6,464,902 880,133 $ 11,376,969
Shares issued in connection with reinvestment of distributions..... -- -- 5,988 75,214
----------- ------------ ----------- ------------
608,339 6,464,902 886,121 11,452,183
Shares repurchased................................................. (512,008) (5,462,848) (274,767) (3,583,799)
----------- ------------ ----------- ------------
Net increase....................................................... 96,331 $ 1,002,054 611,354 $ 7,868,384
=========== ============ =========== ============
<CAPTION>
JANUARY 31, 1995
(COMMENCEMENT OF
OPERATIONS) TO
JUNE 30, 1995 (UNAUDITED)
--------------------------
SHARES AMOUNT
----------- ------------
<S> <C> <C>
G.T. GLOBAL: VARIABLE INFRASTRUCTURE FUND
Shares sold........................................................ 55,201 $ 686,461
Shares repurchased................................................. (20,046) (250,539)
----------- ------------
Net increase....................................................... 35,155 $ 435,922
=========== ============
G.T. GLOBAL: VARIABLE NATURAL RESOURCES FUND
Shares sold........................................................ 92,103 $ 1,167,198
Shares repurchased................................................. (57,071) (717,091)
----------- ------------
Net increase....................................................... 35,032 $ 450,107
=========== ============
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 (UNAUDITED) DECEMBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
G.T. GLOBAL: VARIABLE AMERICA FUND
Shares sold........................................................ 1,584,076 $ 27,617,810 1,410,056 $ 21,334,929
Shares issued in connection with reinvestment of distributions..... 31,220 606,288 9,566 136,602
----------- ------------ ----------- ------------
1,615,296 28,224,098 1,419,622 21,471,531
Shares repurchased................................................. (824,007) (14,496,046) (578,009) (8,750,561)
----------- ------------ ----------- ------------
Net increase....................................................... 791,289 $ 13,728,052 841,613 $ 12,720,970
=========== ============ =========== ============
G.T. GLOBAL: VARIABLE NEW PACIFIC FUND
Shares sold........................................................ 3,233,022 $ 43,008,498 2,682,038 $ 40,297,352
Shares issued in connection with reinvestment of distributions..... 5,429 75,348 3,541 51,590
----------- ------------ ----------- ------------
3,238,451 43,083,846 2,685,579 40,348,942
Shares repurchased................................................. (3,159,350) (42,301,797) (1,795,774) (26,803,641)
----------- ------------ ----------- ------------
Net increase....................................................... 79,101 $ 782,049 889,805 $ 13,545,301
=========== ============ =========== ============
G.T. GLOBAL: VARIABLE EUROPE FUND
Shares sold........................................................ 570,602 $ 8,596,345 1,354,348 $ 21,064,089
Shares issued in connection with reinvestment of distributions..... 9,965 154,451 927 14,252
----------- ------------ ----------- ------------
580,567 8,750,796 1,355,275 21,078,341
Shares repurchased................................................. (578,577) (8,669,528) (721,304) (11,126,870)
----------- ------------ ----------- ------------
Net increase....................................................... 1,990 $ 81,268 633,971 $ 9,951,471
=========== ============ =========== ============
G.T. GLOBAL: MONEY MARKET FUND
Shares sold........................................................ 67,268,359 $ 67,268,359 75,553,997 $ 75,553,997
Shares issued in connection with reinvestment of distributions..... 430,817 430,817 321,887 321,887
----------- ------------ ----------- ------------
67,699,176 67,699,176 75,875,884 75,875,884
Shares repurchased................................................. (71,498,887) (71,498,887) (60,177,597) (60,177,597)
----------- ------------ ----------- ------------
Net increase (decrease)............................................ (3,799,711) $ (3,799,711) 15,698,287 $ 15,698,287
=========== ============ =========== ============
<CAPTION>
JULY 5, 1994
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS)
JUNE 30, 1995 (UNAUDITED) TO DECEMBER 31, 1994
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
G.T. GLOBAL: VARIABLE INTERNATIONAL FUND
Shares sold........................................................ 869,194 $ 9,082,552 371,362 $ 4,416,954
Shares issued in connection with reinvestment of distributions..... 396 4,195 885 9,954
----------- ------------ ----------- ------------
869,590 9,086,747 372,247 4,426,908
Shares repurchased................................................. (785,669) (8,200,427) (174,075) (2,061,498)
----------- ------------ ----------- ------------
Net increase....................................................... 83,921 $ 886,320 198,172 $ 2,365,410
=========== ============ =========== ============
</TABLE>
5. EXPENSE REDUCTIONS
G.T. Capital has directed certain portfolio trades to brokers who paid a portion
of the Funds' expenses. For the period ended June 30, 1995, the Funds' expenses
was reduced by $4,511 under these arrangements.
F-70
<PAGE> 88
[G.T. LOGO]
G.T. GLOBAL FINANCIAL SERVICES
FIFTY CALIFORNIA STREET, 27TH FLOOR
SAN FRANCISCO, CA 94111
VARSR508_B
August 1995
cover photo goes here
Bowne of San Francisco - Phone (415) 362-2300 - FAX (415) 362-2424
BPX/F21201 - Proof 12 - 8/22/95 - 11:30
