GT GLOBAL VARIABLE INVESTMENT SERIES, 497, 1995-06-28

GT GLOBAL VARIABLE INVESTMENT SERIES
497, 1995-06-28

Previous: INSURED MUNICIPALS INCOME TRUST 117TH INSURED MULTI SERIES, 485BPOS, 1995-06-28

Next: MUNIYIELD CALIFORNIA INSURED FUND II INC, NSAR-A, 1995-06-28

<PAGE> 1

G. T. G L O B A L V A R I A B L E
[LOGO] I N V E S T M E N T F U N D S

SUPPLEMENT TO PROSPECTUS DATED MARCH 1, 1995

- --------------------------------------------------------------------------------

The following information supersedes and replaces the description of the Fund's
portfolio management team contained in the section of the Fund's Prospectus
entitled "Management":

"The investment professionals primarily responsible for the portfolio management
of the Fund are as follows:

MONEY MARKET FUND

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
- ----------------------- --------------------------- -----------------------------------------------
<S> <C> <C>
Gary Kreps Overall supervision Chief Investment Officer--Global Fixed Income
San Francisco since Fund inception Investments for G.T. Capital since 1992. From
in 1993 1988 to 1992, Mr. Kreps was the Senior Vice
President for Global Fixed Income of Putnam
Management Co. (Boston).

Jeffrey W. Gorman Portfolio Manager Portfolio Manager for G.T. Capital since May
San Francisco since 1995 1995; Money Market Analyst and Trader for G.T.
Capital since April 1994; Investment Operations
Specialist for G.T. Capital from February 1993
to April 1994; Financial Services
Representative for G.T. Capital from June 1992
to February 1993; prior thereto, a student at
the University of California at Berkeley.

Joyce Ng Assistant Research Analyst Assistant Research Analyst--Global Fixed Income
San Francisco since 1995 for G.T. Capital since January 1995; Senior
Financial Analyst for G.T. Capital from April
1994 to January 1995; Pricing Analyst for G.T.
Capital from October 1990 to March 1994; Mutual
Fund Accountant for G.T. Capital from January
1990 to September 1990."
</TABLE>

June 23, 1995
<PAGE> 2

G.T. GLOBAL

VARIABLE

INVESTMENT

FUNDS
PROSPECTUS
March 1, 1995
<PAGE> 3

- --------------------------------------------------------------------------------
----------------------------------
G. T. G L O B A L V A R I A B L E
[LOGO] I N V E S T M E N T F U N D S

PROSPECTUS -- MARCH 1, 1995

- --------------------------------------------------------------------------------

The G.T. GLOBAL VARIABLE INVESTMENT FUNDS (individually a "Fund"; collectively,
the "Funds") are mutual funds that are offered for investment exclusively to
separate accounts that fund certain variable annuity contracts ("VA Contracts")
offered by certain life insurance companies ("Participating Insurance
Companies").

The Funds' investment manager, G.T. CAPITAL MANAGEMENT, INC. ("G.T. Capital"),
is a part of the G.T. Group, a leading international investment advisory
organization with offices throughout the world that long has emphasized global
investment.
The G.T. Global Variable Investment Funds currently include:

- -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

- -G.T. Global: Variable Infrastructure Fund

- -G.T. Global: Variable Natural Resources Fund

- -G.T. Global: Variable Telecommunications Fund

- -G.T. Global: Variable Emerging Markets Fund

- -G.T. Global: Variable Growth & Income Fund

- -G.T. Global: Variable Global Government
Income Fund

- -G.T. Global: Variable Strategic Income Fund

- -G.T. Global: Variable U.S. Government
Income Fund

- - G.T. Global: Money Market Fund

EACH OF THE FOLLOWING FUNDS IS CLASSIFIED AS A "DIVERSIFIED" INVESTMENT COMPANY
UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED ("1940 ACT"): G.T. GLOBAL:
VARIABLE NEW PACIFIC FUND ("NEW PACIFIC FUND"), G.T. GLOBAL: VARIABLE EUROPE
FUND ("EUROPE FUND"), G.T. GLOBAL: VARIABLE AMERICA FUND ("AMERICA FUND"), G.T.
GLOBAL: VARIABLE INFRASTRUCTURE FUND ("INFRASTRUCTURE FUND"), G.T. GLOBAL:
VARIABLE NATURAL RESOURCES FUND ("NATURAL RESOURCES FUND"), G.T. GLOBAL:
VARIABLE TELECOMMUNICATIONS FUND ("TELECOMMUNICATIONS FUND"), G.T. GLOBAL:
VARIABLE INTERNATIONAL FUND ("INTERNATIONAL FUND"), G.T. GLOBAL: VARIABLE
EMERGING MARKETS FUND ("EMERGING MARKETS FUND"), G.T. GLOBAL: VARIABLE U.S.
GOVERNMENT INCOME FUND ("U.S. GOVERNMENT INCOME FUND") AND G.T. GLOBAL: MONEY
MARKET FUND ("MONEY MARKET FUND"). EACH OF THE FOLLOWING FUNDS IS CLASSIFIED AS
A "NON-DIVERSIFIED" INVESTMENT COMPANY UNDER THE 1940 ACT: G.T. GLOBAL: VARIABLE
LATIN AMERICA FUND ("LATIN AMERICA FUND"), G.T. GLOBAL: VARIABLE GROWTH & INCOME
FUND ("GROWTH & INCOME FUND"), G.T. GLOBAL: VARIABLE STRATEGIC INCOME FUND
("STRATEGIC INCOME FUND") AND G.T. GLOBAL: VARIABLE GLOBAL GOVERNMENT INCOME
FUND ("GLOBAL GOVERNMENT INCOME FUND").

THE STRATEGIC INCOME FUND MAY INVEST UP TO 50% OF ITS ASSETS IN LOWER RATED AND
COMPARABLE UNRATED DEBT SECURITIES WHOSE CREDIT QUALITY IS GENERALLY CONSIDERED
THE EQUIVALENT OF DEBT SECURITIES COMMONLY KNOWN AS "JUNK BONDS." INVESTMENTS OF
THIS TYPE ARE SUBJECT TO A GREATER RISK OF LOSS OF PRINCIPAL AND INTEREST.
INVESTORS SHOULD CAREFULLY CONSIDER THE RISKS ASSOCIATED WITH AN INVESTMENT IN
THE STRATEGIC INCOME FUND.

THIS PROSPECTUS CONCISELY SETS FORTH INFORMATION ABOUT THE FUNDS THAT AN
INVESTOR SHOULD KNOW BEFORE INVESTING THROUGH THE VA CONTRACTS. THIS PROSPECTUS,
IN ADDITION TO THE VA CONTRACTS PROSPECTUS, SHOULD BE READ CAREFULLY AND
RETAINED FOR FUTURE REFERENCE. A STATEMENT OF ADDITIONAL INFORMATION, DATED
MARCH 1, 1995, HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE
"SEC") AND IS INCORPORATED HEREIN BY REFERENCE. THE STATEMENT OF ADDITIONAL
INFORMATION, WHICH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, IS
AVAILABLE WITHOUT CHARGE BY WRITING TO THE FUNDS AT 50 CALIFORNIA STREET, 27TH
FLOOR, SAN FRANCISCO, CALIFORNIA 94111, OR BY CALLING (800) 824-1580.
- --------------------------------------------------------------------------------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED ON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

FUND SHARES ARE AVAILABLE AS A POOLED FUNDING VEHICLE FOR VARIABLE ANNUITY
CONTRACTS OFFERED BY PARTICIPATING INSURANCE COMPANIES. THIS
PROSPECTUS SHOULD BE ACCOMPANIED BY THE PROSPECTUS FOR SUCH
CONTRACTS.

AN INVESTMENT IN THE G.T. GLOBAL: MONEY MARKET FUND IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE
G.T. GLOBAL: MONEY MARKET FUND WILL BE ABLE TO MAINTAIN A STABLE
NET ASSET VALUE OF $1.00 PER SHARE.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 1
<PAGE> 4

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAGE
<S> <C>
General Information...................................................................... 3
Financial Highlights..................................................................... 4
Investment Objectives and Policies....................................................... 7
Risk Factors............................................................................. 24
Currency, Options and Futures Strategies................................................. 31
How to Invest............................................................................ 33
Calculation of Net Asset Value........................................................... 34
Dividends, Other Distributions and Federal Income Taxation............................... 34
Management............................................................................... 36
Other Information........................................................................ 44
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 2
<PAGE> 5

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

GENERAL INFORMATION
- --------------------------------------------------------------------------------

Each G.T. Global Variable Investment Fund is organized as a separate series of
either G.T. Global Variable Investment Series or G.T. Global Variable Investment
Trust. (G.T. Global Variable Investment Series and G.T. Global Variable
Investment Trust are referred to herein collectively as the "Companies," and may
be referred to singularly as a "Company"). Each Company is registered with the
Securities and Exchange Commission ("SEC") as an open-end management investment
company. See "Other Information." Each Fund is treated as a separate entity for
certain matters under the 1940 Act and for other purposes, including federal
income tax purposes. A shareholder of one Fund is not deemed to be a shareholder
of any other Fund.

The G.T. Global Variable Investment Funds are mutual funds that serve as funding
vehicles for the VA Contracts offered by Participating Insurance Companies
through separate accounts. Shares of the Funds may be offered to separate
accounts of Participating Insurance Companies and serve as the underlying
investments for VA Contracts ("shared funding"). Due to differences in tax
treatment or other considerations, the interests of various VA Contract holders
might at some time be in conflict. The Companies currently do not foresee any
such conflict. However, the Companies' Board of Trustees intends to monitor
events to identify any material irreconcilable conflict that may arise and to
determine what action, if any, should be taken in response to such conflict. If
such a conflict were to occur, one or more Participating Insurance Companies'
separate accounts might be required to withdraw all or a substantial portion of
its investments in one or more Funds. This might disrupt a Fund's orderly
portfolio management to the potential detriment of VA Contract holders.

The following Funds are organized as series of G.T. Global Variable Investment
Series:

- - G.T. Global: Variable New Pacific Fund
- - G.T. Global: Variable Europe Fund
- - G.T. Global: Variable America Fund
- - G.T. Global: Variable International Fund
- - G.T. Global: Money Market Fund
The following Funds are organized as series of G.T. Global Variable Investment
Trust:

- - G.T. Global: Variable Latin America Fund
- - G.T. Global: Variable Infrastructure Fund
- - G.T. Global: Variable Natural Resources Fund
- - G.T. Global: Variable Telecommunications Fund
- - G.T. Global: Variable Growth & Income Fund
- - G.T. Global: Variable Strategic Income Fund
- - G.T. Global: Variable Emerging Markets Fund
- - G.T. Global: Variable Global Government Income Fund
- - G.T. Global: Variable U.S. Government Income Fund

The VA Contracts are described in a separate prospectus issued by each
Participating Insurance Company for which the Companies assume no
responsibility. Individual VA Contract holders are not the "shareholders" of
either Company or any Fund. Rather, each Participating Insurance Company and its
separate accounts are the shareholders (the "shareholders"). In accordance with
current law, shareholder voting rights will be passed on to VA Contract holders.
As described below, for certain matters Company shareholders vote together as a
group; as to other matters, they vote separately by Fund.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 3
<PAGE> 6

- --------------------------------------------------------------------------------
------------------------------------------------
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 for the periods shown. This
information is supplemented by the financial statements and accompanying notes
appearing in the Statement of Additional Information. The financial statements
and notes for fiscal year ended December 31, 1994 have been audited by Coopers &
Lybrand, L.L.P. independent accountants, whose report thereon appears in the
Statement of Additional Information.

G.T. GLOBAL VARIABLE INVESTMENT SERIES+

<TABLE>
<CAPTION>
JULY 5, 1994
(COMMENCEMENT
OF OPERATIONS)
TO
DECEMBER 31, YEAR ENDED FEBRUARY 10, 1993 (COMMENCEMENT OF
1994*** DECEMBER 31, 1994** OPERATIONS) TO DECEMBER 31, 1993*
-------------- ---------------------------------------------- -------------------------------------------------
G.T. GLOBAL: G.T. GLOBAL: G.T. GLOBAL:
-------------- ---------------------------------------------- -------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE MONEY VARIABLE VARIABLE VARIABLE MONEY
INTERNATIONAL NEW PACIFIC EUROPE AMERICA MARKET NEW PACIFIC EUROPE AMERICA MARKET
FUND FUND FUND FUND FUND FUND FUND FUND FUND
-------------- ----------- -------- ------- ------- ----------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value,
beginning
of period..... $12.00 $ 16.07 $ 15.33 $ 13.75 $ 1.00 $ 12.00 $ 12.00 $12.00 $ 1.00
Income from
investment
operations
Net
investment
income... 0.06 0.08 0.16 0.48 0.03 0.04 0.05 1.11 0.03
Net gains
or losses
on securities
(both realized
and
unrealized) (0.76) (2.08) (0.25) 2.08 0.00 4.03 3.28 0.64 0.00
------ -------- -------- ------- ------- --------- --------- -------- ------
Total from
investment
operations... (0.70) (2.00) (0.09) 2.56 0.03 4.07 3.33 1.75 0.03
------ -------- -------- ------- ------- --------- --------- -------- ------
Less
distributions
Dividends (from
net investment
income)... (0.05) (0.06) (0.00) (0.50) (0.03) (0.00) (0.00) (0.00) (0.03)
Distributions
(from capital
gain)... (0.00) (0.00) (0.02) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
In excess of
capital gains.. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Return of
Capital... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
------ -------- -------- ------- ------- --------- --------- -------- ------
Total
distributions... (0.05) (0.06) (0.02) (0.50) (0.03) (0.00) (0.00) (0.00) (0.03)
------ -------- -------- ------- ------- --------- --------- -------- ------
Net asset
value, end
of period..... $11.25 $ 14.01 $ 15.22 $ 15.81 $ 1.00 $ 16.07 $ 15.33 $13.75 $ 1.00
====== =========== ======== ======= ======= ========== ======== ======= ======
Total
returns++... (5.81)%(b) (12.47)% (0.59)% 18.88% 3.48% 33.9%(b) 27.8%(b) 14.7%(b) 2.6%(b)
Ratios/supplemental
data
Net assets,
end of period
(in 000's)... $2,229 $19,39 1 $ 15,020 $15,257 $19,474 $ 7,945 $ 5,410 $1,700 $3,775
Ratio of net
investment
income to
average net
assets... 3.33%(a) .83% 1.48% 1.83% 3.70% 0.9%(a) 1.1%(a) 14.1%(a) 2.9%(a)
Ratio of
expenses to
average net
assets... 0.69%(a) 1.25% 1.25% .98% 0.75% 0.6%(a) 0.7%(a) 0.00%(a) 0.2%(a)
Portfolio
turnover... 17%(a) 30% 61% 139% N/A 15%(a) 27%(a) 831%(a) N/A
------ -------- -------- ------- ------- --------- --------- -------- ------
</TABLE>

- ------------

(a) Annualized.
(b) Not annualized.
* Includes reimbursement by G.T. Capital Management, Inc. for New Pacific Fund,
Europe Fund, America Fund and Money Market Fund operating expenses for the
fiscal year ended December 31, 1993 of $0.03, $0.03, $0.10 and $0.01,
respectively. Without such reimbursement, the expense ratios would have been
1.3%, 1.4%, 1.3%, and 1.0%, respectively, and the ratio of net investment
income to average net assets would have been 0.3%, 0.4%, 12.8% and 2.1%,
respectively. Without assumption of expenses by G.T. Capital, the expense
ratios would have been 3.6%, 4.6%, 6.5% and 5.7%, respectively, and the ratio
of net investment income to average net assets would have been (2.0)%,
(2.8)%, 7.6% and (2.6)%, respectively.
** Includes reimbursement by G.T. Capital Management, Inc. for New Pacific
Fund, Europe Fund, America Fund and Money Market Fund operating expenses for
the fiscal year ended December 31, 1994, of $0.03, $0.04, $0.28 and $0.00,
respectively. Without such reimbursement, the expense ratios would have been
1.60%, 1.66%, 2.05%, and .81%, respectively, and the ratio of net investment
income to average net assets would have been .48%, 1.07%, .76% and 3.64%,
respectively.
*** Including reimbursement by G.T. Capital Management, Inc. of International
Fund operating expenses of $20,158. Without such reimbursement, the expenses
ratio would have been 6.58% and the ratio of net investment income to
average net assets would have been
(2.56%).
+ The G.T. Global: Variable International Fund commenced operations on July 5,
1994.
++ Total returns do not include initial sales charges.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 4
<PAGE> 7

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

G.T. GLOBAL VARIABLE INVESTMENT TRUST+
<TABLE>
<CAPTION>
JULY 5, 1994
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31,
1994** YEAR ENDED DECEMBER 31, 1994
----------- ---------------------------------------------------
G.T. GLOBAL: G.T. GLOBAL: VARIABLE
VARIABLE ---------------------------------------------------
----------- GLOBAL
EMERGING LATIN GROWTH & STRATEGIC GOVERNMENT
MARKETS AMERICA INCOME INCOME INCOME
FUND FUND FUND FUND FUND
----------- ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 12.00 $ 17.68 $ 13.77 $ 14.57 $ 12.53
Income from investment operations
Net investment income*..................... 0.07 0.11 0.46 1.71 0.77
Net gains or losses on securities (both
realized and unrealized)................. (0.05) 1.49 (0.85) (4.17) (1.85)
------ ------- --------- --------- -----------
Total from investment operations.............. 0.02 1.60 (0.39) (2.46) (1.08)
------ ------- --------- --------- -----------
Less distributions
Dividends (from net investment income)..... (0.07) (0.04) (0.39) (0.79) (0.73)
Distributions (from capital gain).......... (0.00) (0.07) (0.00) (0.45) (0.00)
In excess of capital gains................. (0.06) (0.00) (0.00) (0.00) (0.00)
Return of Capital.......................... (0.00) (0.00) (0.00) (0.05) (0.09)
------ ------- --------- --------- -----------
------ ------- --------- --------- -----------
Total distributions.................... (0.13) (0.11) (0.39) (1.29) (0.82)
------ ------- --------- --------- -----------
Net asset value, end of period................ $ 11.89 $ 19.17 $ 12.99 $ 10.82 $ 10.63
======= ======= ======= ======== ===========
Total returns++............................... 0.12%(b) 9.14% (2.85)% (17.09)% (8.70)%
Ratios/supplemental data
Net assets, end of period (in 000's)....... $ 7,267 $26,631 $25,580 $ 23,367 $ 9,654
Ratio of net investment income to average
net assets*.............................. 4.1%(a) .82% 3.69% 7.58% 6.89%
Ratio of expenses to average net assets*... 0.0%(a) 1.25% 1.25% 1.00% 1.00%
Portfolio turnover......................... 117%(a) 185% 53% 313% 350%
------ ------- --------- --------- -----------

<CAPTION>
YEAR ENDED DECEMBER 31, 1994
---------------------------------------------------
G.T. GLOBAL: VARIABLE
---------------------------------------------------
U.S. GOVERNMENT
INCOME TELECOMMUNICATIONS
FUND FUND
-------------- ------------------
<S> <C> <C>
Net asset value, beginning of period.......... $ 12.23 $ 13.07
Income from investment operations
Net investment income*..................... 0.63 0.01
Net gains or losses on securities (both
realized and unrealized)................. (1.39) 0.92
----------- -------
Total from investment operations.............. (0.76) 0.93
----------- -------
Less distributions
Dividends (from net investment income)..... (0.62) (0.02)
Distributions (from capital gain).......... (0.06) (0.00)
In excess of capital gains................. (0.00) (0.00)
Return of Capital.......................... (0.00) (0.00)
----------- -------
----------- -------
Total distributions.................... (0.68) (0.02)
----------- -------
Net asset value, end of period................ $ 10.79 13.98
=========== ==========
Total returns++............................... (6.27)% 7.15%
Ratios/supplemental data
Net assets, end of period (in 000's)....... $ 2,415 $36,029
Ratio of net investment income to average
net assets*.............................. 5.53% 0.31%
Ratio of expenses to average net assets*... 0.38% 1.25%
Portfolio turnover......................... 34% 81%
----------- -------
</TABLE>

- ------------
(a) Annualized.
(b) Not annualized.
* Includes reimbursement by G.T. Capital Management, Inc. for Latin America
Fund, Growth & Income Fund, Strategic Income Fund, Global Government Income
Fund, U.S. Government Income Fund and Telecommunications Fund operating
expenses for the fiscal year ended December 31, 1994 of $0.04, $0.03, $0.04,
$0.08, $0.48 and $0.01, respectively. Without such reimbursement, the expense
ratios would have been 1.58%, 1.49%, 1.15%, 1.68%, 4.63% and 1.49%,
respectively, and the ratio of net investment income to average net assets
would have been 0.49%, 3.45%, 7.43%, 6.21%, 1.29% and 0.07%, respectively.
** Includes reimbursement by G.T. Capital Management, Inc. of Emerging Markets
Fund operating expenses of $42,738. Without such reimbursement, the expense
ratio would have been 4.30% and the ratio of net investment income to average
net assets would have been (.20)%.
+ Prior to January 31, 1995, the G.T. Global: Variable Infrastructure Fund and
G.T. Global: Variable Natural Resources Fund had not yet commenced
operations. The G.T. Global: Variable Emerging Markets Fund commenced
operations on July 5, 1994.
++ Total returns do not include sales charges.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 5
<PAGE> 8

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

G.T. GLOBAL VARIABLE INVESTMENT TRUST+

<TABLE>
<CAPTION>
OCTOBER 18, 1993
(COMMENCEMENT OF
FEBRUARY 10, 1993 (COMMENCEMENT OF OPERATIONS) TO
OPERATIONS) TO DECEMBER 31, 1993 DECEMBER 31, 1993
------------------------------------------------------ ---------------
G.T. GLOBAL: VARIABLE
-----------------------------------------------------------------------
GLOBAL U.S.
LATIN GROWTH & STRATEGIC GOVERNMENT GOVERNMENT
AMERICA INCOME INCOME INCOME INCOME TELECOMMUNICATIONS
FUND FUND FUND FUND FUND FUND
------ -------- ------ --------- --------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $12.00
Income from investment operations
Net investment income*.............. 0.04 0.31 0.61 0.57 0.53 0.04
Net gains or losses on securities
(both realized and unrealized).... 5.64 1.79 2.57 0.52 0.23 1.03
------- --------- --------- ----------- ----------- ------
Total from investment operations....... 5.68 2.10 3.18 1.09 0.76 1.07
------- --------- --------- ----------- ----------- ------
Less distributions
Dividends (from net investment
income)........................... (0.00) (0.28) (0.61) (0.56) (0.53) (0.00)
Distributions (from capital gain)... (0.00) (0.05) (0.00) (0.00) (0.00) (0.00)
In excess of capital gains.......... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
------- --------- --------- ----------- ----------- ------
Total distributions............. (0.00) (0.33) (0.61) (0.56) (0.53) (0.00)
------- --------- --------- ----------- ----------- ------
Net asset value, end of period......... $17.68 $ 13.77 $ 14.57 $ 12.53 $ 12.23 $13.07
======= ========= ========= =========== =========== ======
Total returns(b)....................... 47.3% 17.8% 27.5% 9.5% 6.4% 8.9%
Ratios/supplemental data
Net assets, end of period (in
000's)............................ $8,240 $11,677 $18,089 $ 6,136 $ 974 $7,903
Ratio of net investment income to
average net assets*(a)............ 1.0% 3.2% 6.6% 6.1% 5.3% 2.5%
Ratio of expenses to average net
assets*(a)........................ 0.7% 0.6% 0.5% 0.5% 0.0% 0.9%
Portfolio turnover(a)............... 78% 17% 245% 298% 81% 20%
------- --------- --------- ----------- ----------- ------
</TABLE>

- ------------

(a) Annualized.
(b) Not annualized.
* Includes reimbursement by G.T. Capital Management, Inc. for Latin America
Fund, Growth & Income Fund, Strategic Income Fund, Global Government Income
Fund, U.S. Government Income Fund and Telecommunications Fund operating
expenses for the fiscal year ended December 31, 1993 of $0.02, $0.05, $0.03,
$0.06, $0.19 and $0.003, respectively. Without such reimbursement, the
expense ratios would have been 1.3%, 1.2%, 0.9%, 1.1%, 1.9% and 1.1%,
respectively, and the ratio of net investment income to average net assets
would have been 0.4%, 2.7%, 6.3%, 5.5%, 3.4% and 2.3%, respectively. Without
assumption of expenses by G.T. Capital, the expense ratio would have been
4.2%, 2.8%, 1.9%, 4.2%, 12.3% and 1.8%, respectively, and the ratio of net
investment income to average net assets would have been (2.5)%, 1.1%, 5.2%,
2.4%, (6.9)% and 1.6%, respectively.
+ Prior to January 31, 1995, the G.T. Global: Variable Infrastructure Fund and
G.T. Global: Variable Natural Resources Fund had not yet commenced
operations. The G.T. Global: Variable Emerging Markets Fund commenced
operations on July 5, 1994.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 6
<PAGE> 9

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVES AND POLICIES
- --------------------------------------------------------------------------------

Each Fund has its own investment objective(s) and investment policies. The
objective(s) and policies of each Fund determine the types of securities in
which that Fund may invest, and will affect both the investment return and the
degree of risk to which that Fund is subject. There can be no assurance that any
Fund will achieve its investment objective(s).

GLOBAL GROWTH FUNDS

The investment objective of each of the New Pacific Fund, the Europe Fund, the
International Fund, and the America Fund (collectively, "Global Growth Funds")
listed below is long-term growth of capital. Each Global Growth Fund seeks this
objective by investing, under normal circumstances, at least 80% of its assets
in equity securities of issuers domiciled in that Fund's "Primary Investment
Area." Equity securities in which the Global Growth Funds may invest include
common stocks, preferred stocks and warrants to acquire such securities.

The Primary Investment Areas of the Global Growth Funds are as follows:

NEW PACIFIC FUND -- Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the
Philippines, Singapore, South Korea, Taiwan and Thailand.

EUROPE FUND -- Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland, Turkey and the United Kingdom.

INTERNATIONAL FUND -- all countries listed for each other Global Growth Fund,
and Argentina, Brazil, Canada, Chile, Japan, Mexico, and Venezuela, but not the
United States.

AMERICA FUND -- the United States.

Each Global Growth Fund may invest up to 20% of its assets in the securities of
issuers domiciled outside of the relevant Primary Investment Area. Such
investments may include, for example (a) securities of issuers in countries that
are linked by tradition, economic markets, cultural similarities or geography to
the countries in the Primary Investment Area, and (b) securities of issuers
located elsewhere in the world which have operations in the relevant Primary
Investment Area or which stand to benefit from political and economic events in
the Primary Investment Area.

In managing the Global Growth Funds, G.T. Capital seeks to identify those
countries and industries where economic and political factors, including
currency movements, are likely to produce above-average growth rates. G.T.
Capital further attempts to identify those companies in such countries and
industries that are best positioned and managed to take advantage of these
economic and political factors. G.T. Capital intends to invest in such countries
and industries only after balancing the potential for growth of selected
companies in each market relative to the risks of investing in each such
country. Among the factors to be considered are that several of the markets
included in the relevant countries of the New Pacific Fund, the Europe Fund and
the International Fund are so-called developing markets, i.e., less developed
and more prone to uncertainty, instability and risk than the other markets in
which those Funds invest. Under ordinary circumstances, the assets of the
International Fund are invested in the equity securities of issuers domiciled in
at least three different countries. The America Fund currently expects to invest
a majority of its assets in the securities of mid and small-sized companies. In
selecting securities for inclusion in the America Fund's portfolio, the Fund's
managers initially focus on companies with a total equity market capitalization
of $2 billion or less.

Up to 20% of each Global Growth Fund's assets may be invested in convertible
bonds and debt securities. The Global Growth Funds will limit their purchases of
debt securities to obligations rated no lower than investment grade, i.e., rated
no lower than Baa by Moody's Investors Service, Inc. ("Moody's") or BBB by
Standard & Poor's Ratings Group ("S&P"), or if unrated determined by G.T.
Capital to be of equivalent quality. See "Description of Debt Ratings" in the
Statement of Additional Information for a full description of S&P's and Moody's
ratings. The Global Growth Funds may also use instruments (including forward
currency contracts) often referred to as "derivatives." See "Currency, Options
and Futures Strategies."

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 7
<PAGE> 10

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

Because the development of the world's economies and stock markets is rapidly
evolving, from time to time the Board of Trustees may redefine a Global Growth
Fund's Primary Investment Area. For example, on July 5, 1994, Japan was
eliminated from the Primary Investment Area of the New Pacific Fund.

INFRASTRUCTURE FUND

The INFRASTRUCTURE FUND'S investment objective is long-term capital growth. The
Infrastructure Fund seeks its objective by investing primarily in equity
securities of companies throughout the world that design, develop or provide
products and services significant to a country's infrastructure. The
Infrastructure Fund invests in infrastructure companies which, in the opinion of
G.T. Capital, have potential for above average, long-term growth in sales and
earnings on a sustained basis.

At least 65% of the Infrastructure Fund's total assets normally will be invested
in common stocks and preferred stocks and warrants to acquire such securities
issued by infrastructure companies. An "infrastructure" company is an entity in
which (i) at least 50% of either the revenues or earnings was derived from
infrastructure activities, or (ii) at least 50% of the assets was devoted to
such activities, based on the company's most recent fiscal year. The remainder
of the Infrastructure Fund's assets may be invested in debt securities issued by
infrastructure companies and/or equity and debt securities of companies outside
of the infrastructure industries which, in the opinion of G.T. Capital, stand to
benefit from developments in the infrastructure industries.

The Infrastructure Fund will not invest more than 20% of its total assets in
debt securities rated below investment grade. Investment in non-investment grade
securities involves a high degree of risk and can be speculative. These debt
securities are the equivalent of high yield, high risk bonds, commonly known as
"junk bonds." See "Risk Factors" for a complete discussion.

The Infrastructure Fund may invest substantially in securities denominated in
one or more currencies. Under normal conditions, the Infrastructure Fund invests
in the securities of issuers located in at least three different countries,
including the United States. Investments in securities of issuers in any one
country, other than the United States, will represent no more than 50% of the
Fund's assets. The Infrastructure Fund may also use instruments (including
forward currency contracts) often referred to as "derivatives." See "Currency,
Options and Futures Strategies."

In analyzing companies for investment by the Infrastructure Fund, G.T. Capital
ordinarily looks for several of the following characteristics: above-average per
share earnings growth; high return on invested capital; a healthy balance sheet;
sound financial and accounting policies and overall financial strength; strong
competitive advantages; effective research and product development and
marketing; development of new technologies; efficient service; pricing
flexibility; strong management; and general operating characteristics which will
enable the companies to compete successfully in their respective markets.

For purposes of the Infrastructure Fund's policy of investing at least 65% of
its total assets in the securities of infrastructure companies, the companies in
which the Infrastructure Fund will principally invest will be those engaged in
designing, developing or providing the following products and services:
electricity production; oil, gas, and coal exploration, development, production
and distribution; water supply, including water treatment facilities; nuclear
power and other alternative energy sources; transportation, including the
construction or operation of transportation systems; steel, concrete, or similar
types of products; communications equipment and services (including equipment
and services for both data and voice transmission); mobile communications and
cellular radio/paging; emerging technologies combining telephone, television
and/or computer systems; and other products and services which, in G.T.
Capital's judgment, constitute services significant to the development of a
country's infrastructure. In addition, long-term growth rates of certain foreign
countries' economies may be substantially higher than those of the U.S. economy.
An integral aspect of the foreign countries' economies may be the development or
improvement of their infrastructure.

G.T. Capital believes that a country's infrastructure is one key to the
long-term success of that country's economy. G.T. Capital believes that adequate
energy, transportation, water, and communications systems are essential elements
for long-term economic growth. G.T. Capital believes that many developing
nations, especially

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 8
<PAGE> 11

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

in Asia and Latin America, plan to make significant expenditures to the
development of their infrastructure in the coming years, which is expected to
facilitate increased levels of services and manufactured goods.

In the developed countries of North America, Europe, Japan and the south
Pacific, G.T. Capital expects that the replacement and upgrade of transportation
and communications systems should stimulate growth in the industries of those
countries. In G.T. Capital's view, deregulation of telecommunications and
electric and gas utilities in many countries is promoting significant changes in
these industries.

G.T. Capital believes that strong economic growth in developing countries and
infrastructure replacement, upgrade, and deregulation in more developed
countries provide an environment for favorable investment opportunities in
infrastructure companies worldwide.

NATURAL RESOURCES FUND

The NATURAL RESOURCES FUND'S investment objective is long-term capital growth.
The Natural Resources Fund seeks its objective by investing primarily in equity
securities of companies throughout the world that own, explore or develop
natural resources and other basic commodities, or supply goods and services to
such companies. The Natural Resources Fund expects to invest in those natural
resource companies which include those that own, explore or develop energy
sources, ferrous and non-ferrous metals, strategic metals and precious metals,
chemicals, forest products, foodstuffs, refined products, such as steel, and
other basic commodities, which, in G.T. Capital's opinion, historically have
been produced and marketed profitably during periods of improving supply and
demand fundamentals and rising inflation. The Natural Resources Fund invests in
natural resource companies which, in the opinion of G.T. Capital, have potential
for above average, long-term growth in sales and earnings.

At least 65% of the Natural Resources Fund's total assets will normally be
invested in common stock and preferred stock, and warrants to acquire such
securities, issued by natural resource companies. A "natural resource" company
is an entity in which (i) at least 50% of either the revenues or earnings was
derived from natural resource activities, or (ii) at least 50% of the assets was
devoted to such activities, based upon the company's most recent fiscal year.
The remainder of the Natural Resources Fund's assets may be invested in debt
securities issued by natural resource companies and/or equity and debt
securities of companies outside of the natural resource industries which, in the
opinion of G.T. Capital, stand to benefit from developments in the natural
resource industries.

The Natural Resources Fund will not invest more than 20% of its total assets in
debt securities rated below investment grade. Investment in non-investment grade
debt securities involves a high degree of risk and can be speculative. These
debt securities are the equivalent of high yield, high risk bonds, commonly
known as "junk bonds." See "Risk Factors" for a more complete discussion.

The Natural Resources Fund may invest substantially in securities denominated in
one or more currencies. Under normal conditions, the Natural Resources Fund
invests in the securities of issuers located in at least three different
countries, including the United States. Investments in securities of issuers in
any one country, other than the United States, will represent no more than 50%
of the Fund's assets. The Natural Resources Fund may also use instruments
(including forward currency contracts) often referred to as "derivatives." See
"Currency, Options and Futures Strategies."

The Natural Resources Fund may invest in securities of companies in those
natural resource industries and commodity groups which, in G.T. Capital's
opinion, may perform well during periods of rising inflation. In analyzing such
companies for possible investment by the Natural Resources Fund, G.T. Capital
ordinarily looks for several of the following characteristics: above-average per
share earnings growth; high return on invested capital; a healthy balance sheet;
sound financial and accounting policies and overall financial strength; strong
competitive advantages; development of new technologies; efficient service;
strong management; and general operating characteristics which will enable the
companies to compete successfully in their respective markets.

The natural resource industries are comprised of a variety of companies. For
purposes of the Natural Resources Fund's policy of investing of at least 65% of
its total assets in the securities of natural resource companies, the companies
in which the Natural Resources Fund will principally invest will be those which
own, explore or develop: energy

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 9
<PAGE> 12

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

sources (such as oil, gas and coal); ferrous and non-ferrous metals (such as
iron, aluminum, copper, nickel, zinc and lead), strategic metals (such as
uranium and titanium) and precious metals (such as gold, silver and platinum);
chemicals; forest products (such as timber, coated and uncoated tree sheet, pulp
and newsprint); other basic commodities (such as foodstuffs); refined products
(such as chemicals and steel) and service companies that sell to these producers
and refiners; and other products and services which, in G.T. Capital's opinion
are significant to the ownership and development of natural resources and other
basic commodities.

G.T. Capital will allocate the Natural Resources Fund's investments among those
natural resource companies depending on its assessment of their long-term growth
potential. In assessing these companies' long-term growth potential, G.T.
Capital will evaluate, among other factors, their capabilities for expanded
exploration and production, superior exploration programs and production
techniques and facilities, current inventories, expected production and demand
levels, and the potential to accumulate new resources.

G.T. Capital believes that the liberalization of formerly socialist economies
will bring about dramatic changes in both the supply and demand for natural
resources. In addition, rapid industrialization in developing countries of Asia
and Latin America are generating new demands for industrial materials which are
affecting world commodities markets. G.T. Capital believes these changes are
likely to create investment opportunities which benefit from new sources of
supply and/or from changes in commodities prices.

G.T. Capital believes that investments in natural resource industries offer an
opportunity to protect wealth against the capital-eroding effects of inflation.
During periods of accelerating inflation or currency uncertainty, worldwide
investment demand for natural resources, particularly precious metals, tends to
increase, and during periods of disinflation or currency stability, it tends to
decrease. G.T. Capital believes that rising commodity prices and increasing
worldwide industrial production may favorably affect share prices of natural
resource companies, and investments in such companies can offer excellent
opportunities to offset the effects of inflation.

TELECOMMUNICATIONS FUND
The TELECOMMUNICATIONS FUND seeks long-term growth of capital as its investment
objective. In seeking that objective, the Telecommunications Fund normally
invests at least 65% of its total assets in common and preferred stocks and
warrants to acquire such stocks issued by telecommunications companies. A
"telecommunications company" is an entity which (i) derives at least 50% of
either its revenues or earnings from telecommunications activities, or (ii)
devotes at least 50% of its assets to telecommunications activities, based on
the company's most recent fiscal year.

Up to 35% of the Telecommunications Fund's assets may be invested in debt
securities issued by telecommunications companies, and/or in equity and debt
securities of companies outside of the telecommunications industry which, in the
opinion of G.T. Capital, stand to benefit from developments in the
telecommunications industry. G.T. Capital will allocate the Telecommunications
Fund's assets among securities of countries and in currency denominations and
industry sectors where opportunities for meeting the Fund's investment objective
are expected to be the most attractive. The Telecommunications Fund may invest
substantially in securities denominated in one or more currencies. Under normal
conditions, the Telecommunications Fund invests in the securities of issuers
located in at least three different countries, including the United States.
Investments in securities of issuers in any one country, other than the United
States, will represent no more than 40% of the Fund's assets. The
Telecommunications Fund may also use instruments (including forward currency
contracts) often referred to as "derivatives." See "Currency, Options and
Futures Strategies."

The telecommunications industry is comprised of a variety of sectors, ranging
from companies concentrating on established technologies to those primarily
engaged in emerging or developing technologies. The characteristics of companies
focusing on the same technology will vary among countries depending upon the
extent to which the technology is established in the particular country. G.T.
Capital will allocate the Telecommunications Fund's investments among these
sectors depending upon its assessment of their relative long-term growth
potentials.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 10
<PAGE> 13

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

For purposes of the Telecommunications Fund's policy of investing at least 65%
of its total assets in the securities of telecommunications companies, the
companies in which the Fund will invest are those engaged in designing,
developing or providing the following products and services: communications
equipment and services (including equipment and services for both data and voice
transmission); electronic components and equipment; broadcasting (including
television and radio, satellite, microwave and cable television and
narrowcasting); computer equipment, mobile communications and cellular
radio/paging; electronic mail; local and wide area networking and linkage of
word and data processing systems; publishing and information systems; videotext
and teletext; and emerging technologies combining telephone, television and/or
computer systems.

The Telecommunications Fund expects that, from time to time, a significant
portion of its assets may be invested in the securities of domestic issuers.
Telecommunications, however, is a global industry with significant, growing
markets outside of the United States. A sizeable proportion of the companies
which comprise the telecommunications industry are headquartered outside of the
United States. The communication and use of information using existing and
developing technology increasingly is permeating global civilization.

For these reasons, G.T. Capital believes that a portfolio comprised only of
securities of U.S. issuers does not provide the greatest potential for return
from a telecommunications investment. G.T. Capital uses its financial expertise
in markets located throughout the world and the substantial global resources of
the G.T. Group in attempting to identify those countries and telecommunications
companies then providing the greatest potential for long-term capital
appreciation. In this fashion, G.T. Capital and the Telecommunications Fund seek
to enable shareholders to capitalize on the substantial investment opportunities
and the potential for long-term growth of capital presented by the global
telecommunications industry.

LATIN AMERICA FUND

The LATIN AMERICA FUND'S investment objective is capital appreciation. In
seeking that objective, the Latin America Fund normally invests at least 65% of
its total assets in a broad range of securities of Latin American issuers.
Consistent with its investment objective and policies, the Latin America Fund
may invest in common stock, preferred stock, rights, warrants and securities
convertible into common stock, and other substantially similar forms of equity
with comparable risk characteristics, as well as bonds, notes, debentures or
other forms of indebtedness that may be developed in the future. These
securities may be listed on securities exchanges, traded in various
over-the-counter ("OTC") markets or have no organized market.

Up to 35% of the Latin America Fund's total assets may be invested in a
combination of equity and debt securities of U.S. issuers. In evaluating
investments in securities of U.S. issuers, G.T. Capital will consider, among
other things, the issuer's Latin American business activities and the impact
that developments in Latin America may have on the issuer's results. The Latin
America Fund may invest up to 50% of its assets in debt securities. There are no
credit quality limitations placed on the debt securities in which the Latin
America Fund may invest, and some or all of such debt securities may be the
equivalent of high yield, high risk bonds, commonly known as "junk bonds." The
Latin America Fund may also use instruments (including forward currency
contracts) often referred to as "derivatives." See "Currency, Options and
Futures Strategies."

The Latin America Fund purchases equity and debt securities in seeking its
objective of capital appreciation. Capital appreciation in debt securities may
arise as a result of a favorable change in relative foreign exchange rates, in
relative interest rate levels, or in the credit worthiness of issuers. The
receipt of income from such debt securities is incidental to the Latin America
Fund's objective of capital appreciation.

The Latin America Fund defines securities of Latin American issuers as the
following: (a) securities of companies organized under the laws of a Latin
American country or for which the principal trading market is in Latin America;
(b) securities issued or guaranteed by the government of a country in Latin
America, its agencies or instrumentalities, or municipalities, or the central
bank of such country; (c) U.S. dollar-denominated securities or securities
denominated in a Latin American currency issued by companies to finance
operations in Latin America; (d) securities of companies that derive at least
50% of their revenues from either goods

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 11
<PAGE> 14

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

or services produced in Latin America or sales made in Latin America; and (e)
securities of Latin American issuers, as defined herein, in the form of
depositary shares. For purposes of the foregoing definition, the Latin America
Fund's purchases of securities issued by companies outside of Latin America to
finance their Latin American operations will be limited to securities the
performance of which is materially related to such company's Latin American
activities. For purposes of this Prospectus, unless otherwise indicated, the
Latin America Fund defines Latin America to consist of the following countries:
Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador, El Salvador, French Guiana, Guatemala,
Guyana, Haiti, Honduras, Jamaica, Mexico, the Netherlands Antilles, Nicaragua,
Panama, Paraguay, Peru, Suriname, Trinidad and Tobago, Uruguay and Venezuela.

The extent of the Latin America Fund's holdings in any Latin American country
will vary from time to time, based upon G.T. Capital's judgment as to where the
greatest investment opportunities then lie. In allocating investments among the
various Latin American markets, G.T. Capital looks principally at the stage of
industrialization, potential for productivity gains through economic
deregulation, the impact of financial liberalization and monetary conditions and
the political outlook in each country. Under current market conditions the Latin
America Fund intends to invest primarily in securities issued by companies and
governments in Mexico, Chile, Brazil, and Argentina, which currently have the
most developed capital markets in Latin America. The Latin America Fund may
invest more than 25% of its assets in any of these four countries but does not
expect to invest more than 50% of its total assets in any one country. The
portion of the Latin America Fund's total assets invested directly in Chile may
be less than the portions invested in other Latin American countries at present.
Due to onerous repatriation restrictions, investment by the Fund in Chile for
practical purposes is limited to investment in other investment funds which
purchase securities of Chilean issuers. The Fund's investment in Chile will not
likely exceed 15% of its total assets. The Latin America Fund's investment in
Latin American debt securities may consist substantially of Brady Bonds and
other sovereign debt securities issued by Latin American governments. "Sovereign
debt securities" are those debt securities issued by Latin American governments,
and other emerging market governments, that are traded in the markets of
developed countries or groups of developed countries. See "Investment Objectives
and Policies -- Other Investment Information."

EMERGING MARKETS FUND

The EMERGING MARKETS FUND'S investment objective is long-term growth of capital.
Under normal circumstances, the Emerging Markets Fund seeks its objective by
investing at least 65% of its total assets in equity securities of companies in
emerging markets. The Emerging Markets Fund may invest in the following types of
equity securities: common stock, preferred stock, securities convertible into
common stock and rights and warrants to acquire such securities and
substantially similar forms of equity with comparable risk characteristics.
These securities may be listed on securities exchanges, traded in various
over-the-counter ("OTC") markets, or have no organized market.

For purposes of the Emerging Markets Fund's operations, "emerging markets" will
consist of all countries determined by G.T. Capital to have developing or
emerging economies and markets. These countries generally include every country
in the world except the United States, Canada, Japan, Australia, New Zealand and
most countries located in Western Europe. See "Investment Objectives and
Policies" in the Statement of Additional Information for a complete list of all
the countries which the Emerging Markets Fund does not consider to be emerging
markets.

The Emerging Markets Fund will focus its investments in those emerging markets
which G.T. Capital believes have strongly developing economies and in which the
markets are becoming more sophisticated. For purposes of the Emerging Markets
Fund's policy of normally investing at least 65% of its total assets in equity
securities of issuers in emerging markets, the Emerging Markets Fund will
consider investment in the following emerging markets:

<TABLE>
<S> <C>
Algeria Malaysia
Argentina Mexico
Bolivia Morocco
Botswana Nicaragua
Brazil Nigeria
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 12
<PAGE> 15

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

<TABLE>
<S> <C>
Chile Pakistan
China Panama
Colombia Peru
Costa Rica Philippines
Czech Republic Poland
Ecuador Portugal
Egypt Russia
Finland Singapore
Greece Slovakia
Hong Kong South Korea
Hungary Sri Lanka
India Taiwan
Indonesia Thailand
Israel Turkey
Ivory Coast Uruguay
Jamaica Venezuela
Jordan Zimbabwe
Kenya
</TABLE>

Although the Emerging Markets Fund considers each of the above-listed countries
eligible for investment pursuant to the above described 65% of total assets
investment policy, the Emerging Markets Fund will not be invested in all such
markets at all times. Moreover, investing in some of those markets currently may
not be desirable or feasible, due to the lack of adequate custody arrangements
for the Emerging Markets Fund's assets, overly burdensome repatriation and
similar restrictions, the lack of organized and liquid securities markets,
unacceptable political risks or for other reasons.

As used in this Prospectus, a company in an emerging market is an entity: (i)
for which the principal securities trading market is an emerging market, as
defined above; (ii) that (alone or on a consolidated basis) derives 50% or more
of its total revenue from either goods produced, sales made or services
performed in emerging markets; or (iii) organized under the laws of, and with a
principal office in, an emerging market.

In managing the Emerging Markets Fund, G.T. Capital seeks to identify those
countries and industries where economic and political factors, including
currency movements, are likely to produce above-average growth rates. G.T.
Capital then seeks to invest in those companies in such countries and industries
that are best positioned and managed to take advantage of these economic and
political factors. The assets of the Emerging Markets Fund ordinarily will be
invested in the securities of issuers in at least three different emerging
markets. The Emerging Markets Fund may invest up to 15% of its net assets in
illiquid securities.

The Emerging Markets Fund may invest up to 35% of its total assets in a
combination of (i) debt securities of government or corporate issuers in
emerging markets; (ii) equity and debt securities of issuers in developed
countries, including the United States; (iii) securities of issuers in emerging
markets not included in the list of emerging markets above, if investing therein
becomes feasible and desirable subsequent to the date of this Prospectus; and
(iv) cash and money market instruments. In evaluating investments in securities
of issuers in developed markets, G.T. Capital will consider, among other things,
the business activities of the issuer in emerging markets and the impact that
developments in emerging markets are likely to have on the issuer.

Capital appreciation in debt securities in which the Emerging Markets Fund
invests may arise as a result of favorable changes in relative foreign exchange
rates, in relative interest rate levels and/or in the creditworthiness of
issuers. The receipt of income from debt securities owned by the Emerging
Markets Fund is incidental to the Emerging Markets Fund's objective of long-term
growth of capital.

The Emerging Markets Fund may invest in debt securities of both governmental and
corporate issuers in emerging markets. Emerging market debt securities often are
rated below investment grade. "Investment grade" debt securities are those rated
within the four highest ratings categories of S&P or Moody's or, if unrated,
determined by G.T. Capital to be of comparable quality. Securities rated BBB by
S&P and Baa by Moody's are investment grade debt securities but may have
speculative characteristics. Many emerging market debt securities are not rated
by U.S. ratings agencies. See "Risk Factors."

The Emerging Markets Fund will not invest more than 20% of its total assets in
debt securities rated below investment grade. Investment in non-investment grade
debt securities involves a high degree of risk and can be speculative. These
debt securities are the equivalent of high yield, high risk bonds, commonly
known as "junk bonds." See "Risk Factors" for a more complete discussion. The
Emerging Markets Fund may also use instruments (including forward currency
contracts) often referred to as "derivatives." See "Currency, Options and
Futures Strategies."

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 13
<PAGE> 16

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

If the rating of any of the Emerging Markets Fund's investments drops below a
minimum rating considered acceptable by G.T. Capital for investment by the
Emerging Markets Fund, the Fund will dispose of any such security as soon as
practicable and consistent with the best interests of the Emerging Markets Fund
and its shareholders.

GROWTH & INCOME FUND

The investment objectives of the GROWTH & INCOME FUND are long-term capital
appreciation together with current income. In seeking those objectives, the
Growth & Income Fund normally invests at least 65% of its assets in a
combination of blue-chip equity securities and high quality government bonds.
The Growth & Income Fund considers an equity security to be "blue chip" if: (i)
during the issuer's most recent fiscal year the security offered an above
average dividend yield relative to the latest reported dividend yield on the
Morgan Stanley Capital International World Index; and (ii) the total equity
market capitalization of the issuer is at least $1 billion. Government bonds are
deemed to be high quality if at the time of the Fund's investment they are rated
within one of the two highest ratings categories of Moody's or S&P, i.e., rated
Aaa or Aa by Moody's or AAA or AA by S&P, or, if unrated, are determined by G.T.
Capital to be of comparable quality.

Up to 35% of the Growth & Income Fund's assets may be invested in other equity
securities and investment grade government and corporate debt obligations which
G.T. Capital believes will assist the Fund in achieving its objectives.

The equity securities in which the Growth & Income Fund may invest include
common stocks, preferred stocks, and warrants to acquire such stocks and other
equity securities. Government bonds that the Fund may purchase include debt
obligations issued or guaranteed by the U.S. or foreign governments (including
foreign states, provinces or municipalities) or their agencies, authorities or
instrumentalities. Such government securities also may include debt obligations
of supranational entities organized or supported by several national
governments, such as the World Bank and the Asian Development Bank. The debt
obligations held by the Growth & Income Fund may include debt obligations
convertible into equity securities or having attached warrants or rights to
purchase equity securities.

The Growth & Income Fund currently contemplates that it will invest principally
in securities of issuers in the United States, Canada, Japan, Mexico, the
Western European nations, New Zealand and Australia. The Growth & Income Fund
may invest substantially in securities denominated in more than one currency.
Under normal market conditions, the Growth & Income Fund invests in the
securities of issuers located in at least three different countries. Investments
in securities of issuers in any one country, other than the United States, will
represent no more than 40% of the Fund's assets. The Growth & Income Fund may
purchase securities of an issuer located in one country but denominated in the
currency of another country (or a multinational currency unit).

G.T. Capital allocates the Growth & Income Fund's assets among securities of
issuers located in countries where opportunities for meeting the Fund's
investment objectives are expected to be the most attractive. The relative
proportions of equity and debt securities held by the Growth & Income Fund at
any one time will vary, and will depend upon G.T. Capital's assessment of global
political and economic conditions and the relative strengths and weaknesses of
the world equity and debt markets. To enable the Growth & Income Fund to respond
to general economic changes and market conditions around the world, the Fund is
authorized to invest up to 100% of its assets in either equity securities or
debt securities.

The Growth & Income Fund may invest up to 5% of its assets in a combination of
securities purchased on a when-issued basis or with respect to which it has
entered into forward commitment agreements. The Growth & Income Fund may also
use instruments (including forward currency contracts) often referred to as
"derivatives." See "Currency, Options and Future Strategies."

STRATEGIC INCOME FUND

The STRATEGIC INCOME FUND seeks high current income as its primary investment
objective and capital appreciation as its secondary investment objective.

The Strategic Income Fund allocates its assets among debt securities of issuers
located in three separate investment areas: (1) the United States, (2) developed
foreign countries, and (3) emerging markets. The Strategic Income Fund will
select particular debt securities in each sector based on their relative
investment

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 14
<PAGE> 17

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

merits. Within each area, the Strategic Income Fund selects debt securities from
those issued by governments, their agencies and instrumentalities; central
banks; and commercial banks and other corporate entities. Debt securities in
which the Strategic Income Fund may invest include bonds, notes, debentures, and
other similar instruments. The Strategic Income Fund normally invests at least
50% of its total assets in U.S. and foreign debt and other fixed income
securities that, at the time of purchase, are rated at least investment grade by
Moody's or S&P, or, if unrated, are determined by G.T. Capital to be of
comparable quality. No more than 50% of the Strategic Income Fund's assets may
be invested in securities rated below investment grade, which involve a high
degree of risk and are predominantly speculative. These debt securities are the
equivalent of high yield, high risk bonds, commonly known as "junk bonds." See
"Risk Factors." Consistent with the foregoing, the Strategic Income Fund may
invest in securities that are in default as to payment of principal and/or
interest.

For purposes of the Strategic Income Fund's operations, "emerging markets"
consist of all countries determined by G.T. Capital to have developing or
emerging economies and markets. These countries generally are expected to
include every country in the world except the United States, Canada, Japan,
Australia, New Zealand and most countries in Western Europe. The Strategic
Income Fund currently considers investment in the following emerging markets:

<TABLE>
<S> <C>
Algeria Malaysia
Argentina Mexico
Bolivia Morocco
Botswana Nicaragua
Brazil Nigeria
Chile Pakistan
China Panama
Colombia Peru
Costa Rica Philippines
Czech Republic Poland
Ecuador Portugal
Egypt Russia
Finland Singapore
Greece Slovakia
Hong Kong South Korea
Hungary Sri Lanka
India Taiwan
Indonesia Thailand
Israel Turkey
Ivory Coast Uruguay
Jamaica Venezuela
Jordan Zimbabwe
Kenya
</TABLE>

The Strategic Income Fund's investments in emerging market securities may
consist substantially of Brady Bonds and other sovereign debt securities issued
by emerging market governments. "Sovereign debt securities" are those debt
securities issued by emerging market governments that are traded in the markets
of developed countries or groups of developed countries ("Sovereign Debt"). G.T.
Capital may invest in debt securities of emerging market issuers that it
determines to be suitable investments for the Strategic Income Fund without
regard to ratings. Currently, substantially all emerging market debt securities
are of below investment grade quality. Because the Strategic Income Fund's
investment in debt securities rated below investment grade is limited to 50% of
its total assets, its investment in emerging market debt securities is therefore
effectively limited to 50% of its assets as well.

The Strategic Income Fund also may consider making carefully selected
investments in debt securities rated below investment grade of corporate issuers
in the United States and in developed foreign markets, subject to the overall
50% limitation. See "Risk Factors" for a more complete description of the risks
associated with investment in emerging market debt securities. The Strategic
Income Fund also may invest in bank loan participations and assignments, which
are fixed and floating rate loans arranged through private negotiations between
foreign entities. See "Other Investment Information -- Loan Participations and
Assignments." The Strategic Income Fund may also use instruments (including
forward currency contracts) often referred to as "derivatives." See "Currency,
Options and Futures Strategies."

GLOBAL GOVERNMENT
INCOME FUND

The GLOBAL GOVERNMENT INCOME FUND primarily seeks high current income. The
Fund's secondary objectives are capital appreciation and protection of principal
through active management of the maturity structure and currency exposure. The
Global Government Income Fund normally invests at least 65% of its total assets
in debt obligations issued or guaranteed by the U.S. or

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 15
<PAGE> 18

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

foreign governments (including foreign states, provinces or municipalities) or
their agencies, authorities or instrumentalities. For purposes of this policy,
the Global Government Income Fund considers debt obligations of supranational
entities organized or supported by several national governments, such as the
World Bank and the Asian Development Bank, to be "government securities." The
Global Government Income Fund also may purchase debt obligations of U.S. or
foreign companies and financial institutions.

The Global Government Income Fund currently contemplates that it will invest
principally in obligations of the United States, Canada, Japan, the Western
European nations, New Zealand and Australia, as well as in multinational
currency units. Under normal market conditions, the Global Government Income
Fund invests in the securities of issuers located in at least three different
countries. Investments in securities of issuers in any one country, other than
the United States, will represent no more than 40% of the Fund's total assets.
The Global Government Income Fund does not invest in a foreign currency or in
securities denominated in a foreign currency if such currency is not at the time
of investment considered by G.T. Capital to be fully exchangeable into U.S.
dollars (or a multinational currency unit) without legal restriction. The Global
Government Income Fund may purchase securities of an issuer located in one
country but denominated in the currency of another country (or a multinational
currency unit).

The Global Government Income Fund invests primarily in high quality government
securities, i.e., those securities rated in the two highest ratings categories
of Moody's or S&P, or, if unrated, determined by G.T. Capital to be of
comparable quality.

Consistent with its investment objectives, the Global Government Income Fund may
invest up to 35% of its assets in a combination of: (a) foreign government
securities that are not high quality but are rated at least investment grade by
S&P or Moody's, or if unrated, determined by G.T. Capital to be of equivalent
quality; (b) corporate debt obligations of U.S. or foreign issuers rated at
least investment grade by Moody's or S&P, including debt obligations convertible
into equity securities or having attached warrants or rights to purchase equity
securities; and (c) common and preferred stock, and warrants to acquire such
stocks, provided that the Fund will not invest more than 20% of its total assets
in such securities. In addition, the Global Government Income Fund may invest in
debt obligations convertible into equity securities or having attached warrants
or rights to purchase equity securities.

The U.S. government securities in which the Global Government Income Fund may
invest include direct obligations of the U.S. Treasury (such as Treasury bills,
notes and bonds) and obligations issued or guaranteed by U.S. government
agencies and instrumentalities, including securities that are supported by the
full faith and credit of the United States (such as Government National Mortgage
Association ("GNMA") certificates), securities that are supported by the right
of the issuer to borrow from the U.S. Treasury (such as securities of the
Federal Home Loan Banks) and securities that are supported primarily or solely
by the creditworthiness of the issuer (such as securities of the Federal
National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage
Corporation ("FHLMC"), the Student Loan Marketing Association ("SLMA") and the
Tennessee Valley Authority ("TVA")). The Global Government Income Fund may also
use instruments (including forward currency contracts) often referred to as
"derivatives." See "Currency, Options and Futures Strategies."

G.T. Capital allocates the Global Government Income Fund's assets among
securities of countries and in currency denominations where opportunities for
meeting the Fund's investment objectives are expected to be the most attractive.
G.T. Capital selects securities of particular issuers on the basis of its views
as to the best values then currently available in the marketplace. Such values
are a function of yield, maturity, issue classification and quality
characteristics, coupled with expectations regarding the local and world
economies, movements in the general level and term of interest rates, currency
values, political developments, and variations of the supply of funds available
for investment in the world bond market relative to the demands placed upon it.

U.S. GOVERNMENT INCOME FUND

The investment objective of the U.S. GOVERNMENT INCOME FUND is a high level of
current income, consistent with the preservation

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 16
<PAGE> 19

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

of capital. The U.S. Government Income Fund normally invests at least 65% of its
total assets in U.S. government securities including: direct obligations of the
U.S. Treasury (such as Treasury bills, notes and bonds); and obligations issued
or guaranteed by U.S. government agencies and instrumentalities, including
securities that are supported by the full faith and credit of the United States
(such as GNMAs), securities that are supported by the right of the issuer to
borrow from the U.S. Treasury (such as securities of the Federal Home Loan
Banks) and securities supported primarily or solely by the creditworthiness of
the issuer (such as securities of FNMA, FHLMC, SLMA and TVA).

The U.S. Government Income Fund may invest in mortgage-related securities, such
as collateralized mortgage obligations ("CMOs"), fixed-rate mortgage obligations
and adjustable rate mortgage obligations ("ARMs"). These securities are issued
or guaranteed by GNMA, FNMA or FHLMC, among others.

Treasury bills, notes and bonds and other obligations backed by the "full faith
and credit" pledge of the U.S. government historically have involved little risk
of loss of principal if held to maturity. While not backed by the full faith and
credit of the U.S. government, mortgage-related securities issued or guaranteed
by FNMA or FHLMC are high quality investments having minimal credit risks. All
securities in which the U.S. Government Income Fund invests, however, are
subject to variations in market value due to interest rate fluctuations.

A number of U.S. government agencies or government-sponsored organizations also
sell their own debt securities. These agencies typically are created by Congress
to fulfill a specific function, such as providing credit to home buyers or
farmers; for example, Federal Home Loan Banks, Federal Farm Credit Banks, and
SLMA. Some of these obligations are backed by the full faith and credit of the
U.S. government, as noted above, and some are supported primarily or solely by
the creditworthiness of the issuing agency, such as those issued by TVA. These
securities traditionally offer somewhat higher yields than U.S. Treasury
securities having similar maturities but may have greater principal risk.

The Resolution Funding Corporation ("Refcorp") issues bonds whose interest
payments are guaranteed by U.S. Treasury zero-coupon securities. The amount and
maturity date of the Refcorp bonds are the same as the amount and maturity date
of the corresponding U.S. Treasury zero-coupon bonds held in a separate custody
account at the Federal Reserve Bank of New York. Upon maturity, the Refcorp
bonds will be repaid from the proceeds of those U.S. Treasury zero-coupon bonds
maturing on the same date.

Consistent with its investment objective, the U.S. Government Income Fund may
invest up to 35% of its total assets in a combination of: foreign government
securities that are at least of investment grade quality and any U.S. government
securities that are rated below "high quality" but are rated at least investment
grade by Moody's or S&P, or if unrated determined by G.T. Capital to be of
equivalent quality. For purposes of this policy, the U.S. Government Income Fund
considers debt obligations of supranational entities organized or supported by
several national governments, such as the World Bank and the Asian Development
Bank, to be "foreign government securities." The U.S. Government Income Fund may
purchase securities that are issued by the government of one country but
denominated in the currency of another country (or a multinational currency
unit). The U.S. Government Income Fund will not invest in a security denominated
in a foreign currency if such currency is not at the time of investment
considered by G.T. Capital to be fully exchangeable into U.S. dollars (or a
multinational currency unit) without legal restriction. The U.S. Government
Income Fund may also use instruments (including forward currency contracts)
often referred to as "derivatives." See "Currency, Options and Futures
Strategies."

MONEY MARKET FUND

The investment objective of the MONEY MARKET FUND is maximum current income
consistent with liquidity and conservation of capital. The Money Market Fund
seeks this objective by investing in high quality, U.S. dollar-denominated money
market instruments, i.e., debt obligations with remaining maturities of 13
months or less.

The Money Market Fund seeks to maintain a net asset value of $1.00 per share. To
do so, the Money Market Fund will maintain a dollar-weighted average maturity of
90 days or less and will purchase only instruments having remaining maturities
of 13 months or less.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 17
<PAGE> 20

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

The Money Market Fund invests only in high quality, U.S. dollar-denominated
money market instruments determined by G.T. Capital to present minimal credit
risks in accordance with procedures established by the Board of Trustees. To be
considered high quality, a security must be rated in accordance with applicable
rules in one of the two highest rating categories for short-term securities by
at least two nationally recognized statistical rating organizations
("NRSROs")(or one, if only one NRSRO has rated the security); or, if the issuer
has no applicable short-term rating, determined by G.T. Capital to be of
equivalent credit quality.

High quality securities are divided into "first tier" and "second tier"
securities. The Money Market Fund will invest only in first tier securities.
First tier securities have received the highest rating for short-term debt from
at least two NRSROs, i.e., rated not lower than A-1 by S&P or P-1 by Moody's (or
one, if only one such NRSRO has rated the security), or, if unrated, determined
to be of equivalent quality as described above. If a security has been assigned
different ratings by different NRSROs, at least two NRSROs must have assigned
the higher rating in order for G.T. Capital to determine the security's
eligibility for purchase by the Fund.

The rating criteria of S&P and Moody's, two NRSROs which are currently rating
instruments of the type the Money Market Fund may purchase, are more fully
described in the "Description of Debt Ratings" in the Statement of Additional
Information.

The Money Market Fund may invest in the following types of money market
instruments:

Obligations issued or guaranteed by the U.S. and foreign governments, their
agencies and instrumentalities. These include direct obligations of the U.S.
Treasury, such as Treasury bills and notes; obligations backed by the full faith
and credit of the U.S. government, such as those issued by the GNMA; obligations
supported primarily or solely by the creditworthiness of the issuer, such as
securities of the FNMA, the FHLMC and the TVA; and similar U.S. dollar-
denominated instruments of foreign governments, their agencies, authorities and
instrumentalities.

Obligations of U.S. and non-U.S. banks, including certificates of deposit,
bankers' acceptances and similar instruments, when such banks have total assets
at the time of purchase equal to at least $1 billion.

Interest-bearing deposits in U.S. commercial and savings banks having total
assets of $1 billion or less, in principal amounts at each such bank not greater
than are insured by an agency of the U.S. government, provided that the
aggregate amount of such deposits (including interest earned) does not exceed 5%
of the Money Market Fund's assets.

Commercial paper and other short-term debt obligations of U.S. and foreign
companies, rated at least A-1 by S&P or Prime-1 by Moody's, or, if not rated,
determined to be of equivalent quality by G.T. Capital, provided that any
outstanding intermediate- or long-term debt of the issuer is rated at least AA
by S&P or Aa by Moody's. See the "Description of Debt Ratings" in the Statement
of Additional Information. These instruments may include corporate bonds and
notes (corporate obligations that mature, or that may be redeemed, in one year
or less). These corporate obligations include variable rate master notes, which
are redeemable upon notice and permit investment of fluctuating amounts at
varying rates of interest pursuant to direct arrangements with the issuer of the
instrument.

Repurchase agreements secured by any of the foregoing.

In managing the Money Market Fund, G.T. Capital may employ a number of
professional money management techniques, including varying the composition of
the Fund's investments and the average weighted maturity of the Fund's
securities within the limitations described above. Determinations to use such
techniques will be based on G.T. Capital's identification and assessment of the
relative values of various money market instruments and the future of interest
rate patterns, economic conditions and shifts in fiscal and monetary policy.
G.T. Capital also may seek to improve the Money Market Fund's income by
purchasing or selling securities in order to take advantage of yield disparities
that regularly occur in the market. For example, frequently there are yield
disparities between different types of money market instruments, and market
conditions from time to time result in similar securities trading at different
prices.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 18
<PAGE> 21

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

OTHER INVESTMENT INFORMATION

INVESTMENT IN ILLIQUID SECURITIES. Each Fund, other than the Money Market Fund,
may invest up to 15% of its net assets in illiquid securities. The Money Market
Fund may invest up to 10% of its net assets in illiquid securities. Repurchase
agreements maturing in more than seven days are considered illiquid securities.
G.T. Capital believes, in the case of the Infrastructure Fund, the Natural
Resources Fund, the Telecommunications Fund and the Latin America Fund, that
carefully selected investments in joint ventures, cooperatives, partnerships
and state enterprises, private placements, and other similar vehicles which are
illiquid (collectively, "Special Situations") could enable the Infrastructure
Fund, the Natural Resources Fund, the Telecommunications Fund and the Latin
America Fund to achieve capital appreciation substantially exceeding the
appreciation the Fund would realize if it did not make such investments.
However, in order to limit investment risk, the Infrastructure Fund, the
Natural Resources Fund, the Telecommunications Fund and the Latin America Fund
are permitted to invest no more than 5% of their respective total assets in
Special Situations, and no more than 15% of their respective net assets in
Special Situations and other illiquid investments. See "Risk Factors" in the
Statement of Additional Information.

BRADY BONDS. The Latin America Fund and the Strategic Income Fund may invest in
"Brady Bonds," which are debt restructurings that provide for the exchange of
cash and loans for newly issued bonds. Brady Bonds have been issued by the
countries of, among others, Argentina, Brazil, Costa Rica, Mexico, Nigeria,
Poland, Uruguay, Venezuela and the Philippines. In addition, Peru and Panama
have announced intentions to issue Brady Bonds. Approximately $136 billion in
principal amount of Brady Bonds has been issued as of the date of this
Prospectus, the largest proportion having been issued by Brazil, Argentina and
Mexico. Brady Bonds issued by such countries may be rated below investment
grade. As of the date of this Prospectus, the Funds are not aware of the
occurrence of any payment defaults on Brady Bonds. Investors should recognize,
however, that Brady Bonds have been issued only recently, and, accordingly, do
not have a long payment history. Brady Bonds may be collateralized or
uncollateralized, are issued in various currencies (primarily the U.S. dollar)
and are actively traded in the secondary market for Latin American debt. The
Salomon Brothers Brady Bond Index provides a benchmark that can be used to
compare returns of emerging market Brady Bonds with returns in other bond
markets, e.g., the U.S. bond market.

The Strategic Income Fund may invest in either collateralized or
uncollateralized Brady Bonds. U.S. dollar-denominated, collateralized Brady
Bonds, which may be fixed rate par bonds or floating rate discount bonds, are
collateralized in full as to principal by U.S. Treasury zero coupon bonds having
the same maturity as the bonds. Interest payments on such bonds generally are
collateralized by cash or securities in an amount that, in the case of fixed
rate bonds, is equal to at least one year of rolling interest payments or, in
the case of floating rate bonds, initially is equal to at least one year's
rolling interest payments based on the applicable interest rate at that time and
is adjusted at regular intervals thereafter.

PRIVATIZATIONS. The governments of some foreign countries have been engaged in
programs of selling part or all of their stakes in government owned or
controlled enterprises ("privatizations"). In certain foreign countries, the
ability of foreign entities such as the Funds to participate in privatizations
may be limited by local law, or the terms on which the Funds may be permitted to
participate may be less advantageous than those for local investors. There can
be no assurance that foreign governments will continue to sell companies
currently owned or controlled by them or that privatization programs will be
successful. G.T. Capital believes that privatizations may offer opportunities
for significant capital appreciation and intends to invest assets of the
Infrastructure Fund, the Natural Resources Fund, the Telecommunications Fund,
the Emerging Markets Fund, and the Latin America Fund, respectively, in
privatizations in appropriate circumstances.

TEMPORARY DEFENSIVE INVESTMENT STRATEGIES. Each Fund retains the flexibility to
respond promptly to changes in market and economic conditions. Accordingly, in
the interest of preserving shareholders' capital and consistent with each Fund's
investment objective(s), G.T. Capital may employ a temporary defensive
investment strategy if it determines such a strategy to be warranted due to
market

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 19
<PAGE> 22

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

conditions. Under a defensive strategy, a Fund may hold cash (U.S. dollars,
foreign currencies or multinational currency units) and/or invest any portion or
all of its assets in debt securities or high quality money market instruments
issued by corporations or the U.S. or a foreign government. In addition, for
temporary defensive purposes, such as during times of international political or
economic uncertainty, most or all of a Fund's investments may be made in the
United States and denominated in U.S. dollars. To the extent a Fund adopts a
temporary defensive position, it will not be invested so as to achieve directly
its investment objective.

In addition, pending investment of proceeds from new sales of shares of a Fund
or to meet its ordinary daily cash needs, a Fund may hold cash (U.S. dollars,
foreign currencies or multinational currency units) and may invest any portion
or all of its assets in foreign or domestic high quality money market
instruments. Money market instruments in which a Fund may invest include, but
are not limited to, U.S. or foreign government securities; high grade commercial
paper; bank certificates of deposit; bankers' acceptances; and repurchase
agreements related to any of the foregoing. High grade commercial paper refers
to commercial paper rated A-1 by S&P or P-1 by Moody's or, if not rated,
determined by G.T. Capital to be of comparable quality to commercial paper so
rated.

LOAN PARTICIPATIONS AND ASSIGNMENTS. The Strategic Income Fund may invest in
fixed and floating rate loans ("Loans") arranged through private negotiations
between a foreign entity and one or more financial institutions ("Lenders"). The
majority of the Strategic Income Fund's investments in Loans in emerging markets
is expected to be in the form of participations in Loans ("Participations") and
assignments of portions of Loans ("Assignments") from third parties.
Participations typically will result in the Strategic Income Fund's having a
contractual relationship only with the Lender, not with the borrowing
government. The Strategic Income Fund will have the right to receive payments of
principal, interest and any fees to which it is entitled only from the Lender
selling the Participation and only upon receipt by the Lender of the payments
from the borrower. In connection with purchasing Participations, the Strategic
Income Fund generally will have no right to enforce compliance by the borrower
with the terms of the loan agreement relating to the loan ("Loan Agreement"),
nor any rights of set-off against the borrower, and the Fund may not directly
benefit from any collateral supporting the Loan in which it has purchased the
Participation. As a result, the Strategic Income Fund will assume the credit
risk of both the borrower and the Lender that is selling the Participation. In
the event of the insolvency of the Lender selling a Participation, the Strategic
Income Fund may be treated as a general creditor of the Lender and may not
benefit from any set-off between the Lender and the borrower. The Strategic
Income Fund will acquire Participations only if the Lender interpositioned
between the Fund and the borrower is determined by G.T. Capital to be
creditworthy. When the Strategic Income Fund purchases Assignments from Lenders,
the Fund will acquire direct rights against the borrower on the Loan. However,
because Assignments are arranged through private negotiations between potential
assignees and potential assignors, the rights and obligations acquired by the
Strategic Income Fund as the purchaser of an Assignment may differ from, and be
more limited than, those held by the assigning Lender.

The Strategic Income Fund may have difficulty disposing of Assignments and
Participations. Because there is no liquid market for such securities, the
Strategic Income Fund anticipates that such securities could be sold only to a
limited number of institutional investors. The lack of a liquid secondary market
will have an adverse impact on the value of such securities and on the Strategic
Income Fund's ability to dispose of particular Assignments or Participations
when necessary to meet the Fund's liquidity needs or in response to a specific
economic event, such as a deterioration in the creditworthiness of the borrower.
The lack of a liquid secondary market for Assignments and Participations also
may make it more difficult for the Fund to assign a value to those securities
for purposes of valuing the Strategic Income Fund's holdings and calculating its
net asset value. The Strategic Income Fund's investment in illiquid securities,
including Assignments and Participations, is limited to 15% of its net assets.

BORROWING AND LENDING. From time to time, it may be advantageous for the Funds
to borrow money rather than sell existing securities to meet

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 20
<PAGE> 23

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

redemption requests. Accordingly, a Fund may borrow from banks or (except for
the Money Market Fund) may borrow through reverse repurchase agreements in
connection with meeting requests for the redemption of shares of the Fund. Each
Fund also may borrow up to 5% of its total assets for temporary or emergency
purposes other than to meet redemptions by its investors. The Funds (except for
the Strategic Income Fund) will not borrow for leveraging purposes, nor will the
Funds (except for the Infrastructure Fund, the Natural Resources Fund, the
Telecommunications Fund, the Emerging Markets Fund and the Latin America Fund)
purchase securities while borrowings
are outstanding. The Infrastructure Fund,
the Natural Resources Fund, the Telecommunications Fund, the Emerging Markets
Fund and the Latin America Fund may each purchase additional securities when
outstanding borrowings represent no more than 5% of its assets. See "Investment
Objectives and Policies" in the Statement of Additional Information.

The Strategic Income Fund is authorized to borrow money from banks in an amount
up to 33 1/3% of its total assets, (including the amount borrowed), less all
liabilities and indebtedness other than the borrowing and may use the proceeds
of such borrowings for investment purposes. Borrowings create leverage, a
speculative factor. The Strategic Income Fund will borrow only when G.T. Capital
believes that such borrowings will benefit the Fund, after taking into account
considerations such as the costs of the borrowing and the likely investment
returns on the securities purchased with the borrowed monies.

Borrowing by the Strategic Income Fund will create an opportunity for increased
net income but, at the same time, will involve special risk considerations. For
example, leveraging might exaggerate changes in the net asset value of the
Strategic Income Fund's shares and in the yield on the Fund's portfolio.
Although the principal of such borrowings will be fixed, the Strategic Income
Fund's assets may change in value during the time the borrowing is outstanding.
To the extent the income derived from the assets obtained with borrowed funds
exceeds the interest and other expenses that the Strategic Income Fund will have
to pay, the Fund's net income will be greater than if borrowing were not used.
Conversely, if the income from the assets obtained with borrowed funds is not
sufficient to cover the cost of borrowing, the net income of the Strategic
Income Fund will be less than if borrowing were not used, and therefore the
amount available for distribution to shareholders as dividends will be reduced.
The Strategic Income Fund expects that some of its borrowings may be made on a
secured basis. In such situations, the Strategic Income Fund's custodian will
segregate the pledged assets for the benefit of the lender or arrangements will
be made with a suitable subcustodian, which may include the lender.

Each Fund (except the Money Market Fund) is authorized to make loans of its
securities to broker/dealers or to other institutional investors. The borrower
must maintain with the lending Fund's custodian collateral consisting of cash,
U.S. government securities or other liquid, high grade debt securities equal to
at least the value of the borrowed securities, plus any accrued interest. A Fund
will receive any interest paid on the loaned securities and a fee and/or a
portion of the interest earned on the collateral. Each Fund will limit its loans
of securities to an aggregate of 30% of the value of its total assets, measured
at the time any such loan is made. The risks in lending portfolio securities, as
with other extensions of secured credit, consist of possible delay in receiving
additional collateral or in recovery of the securities or possible loss of
rights in the collateral should the borrower fail financially. See "Investment
Objectives and Policies" in the Statement of Additional Information.

INVESTMENT IN OTHER INVESTMENT COMPANIES OR VEHICLES. With respect to certain
countries, investments by a Fund currently may be made only by acquiring shares
of other investment companies with local government approval to invest in those
countries. Pursuant to the Investment Company Act of 1940, as amended (the "1940
Act"), each Fund (except the Money Market Fund) may invest up to 10% of its
total assets in the aggregate in shares of other investment companies, and up to
5% of its total assets in any one investment company, but may purchase no more
than 3% of the voting stock of the acquired investment company, all as of the
time such shares are purchased. Investment in other investment companies or
vehicles may be the most practical or only manner in which a Fund can
participate in certain securities markets. Such investment may involve the
payment of

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 21
<PAGE> 24

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

substantial premiums above the value of such issuers' portfolio securities, and
is subject to limitations under the 1940 Act and market availability. There can
be no assurance that investment companies or other vehicles for investing in
certain countries will be available for investment. A Fund will not invest in
such vehicles or funds unless, in the judgment of G.T. Capital, the potential
benefits of such investment justify the payment of any applicable premium or
sales charge. As a shareholder in an investment company, a Fund would bear its
ratable share of that investment company's expenses, including its advisory and
administration fees. At the same time, a Fund would continue to pay its own
management fees and other expenses. See "Investment Objectives and Policies" in
the Statement of Additional Information.

WHEN-ISSUED AND FORWARD COMMITMENT SECURITIES. The Funds may purchase debt
securities on a "when-issued" basis and may purchase or sell such securities on
a "forward commitment" basis in order to hedge against anticipated changes in
interest rates and prices. The price of the securities, which is generally
expressed in yield terms, is fixed at the time the commitment is made, but
delivery and payment for the securities take place at a later date. When-issued
securities and forward commitments may be sold prior to the settlement date, but
a Fund will enter into when-issued and forward commitments only with the
intention of actually receiving or delivering the securities, as the case may
be. No income accrues on securities which have been purchased pursuant to a
forward commitment or on a when-issued basis prior to delivery to the Fund. If a
Fund disposes of the right to acquire a when-issued security prior to its
acquisition or disposes of its right to deliver or receive against a forward
commitment, it may incur a gain or loss. At the time a Fund enters into a
transaction on a when-issued or forward commitment basis, a segregated account
consisting of cash or high grade liquid debt securities equal to the value of
the when-issued or forward commitment securities will be established and
maintained at the Funds' custodian bank and will be marked to market daily.
There is a risk that the securities purchased on a when-issued or forward
commitment basis may not be delivered and that the Fund may incur a loss or miss
an opportunity to make an alternative investment as a result.

REPURCHASE AGREEMENTS. Repurchase agreements are transactions in which a Fund
purchases a security from a bank or recognized securities dealer and
simultaneously commits to resell that security to the bank or dealer at an
agreed-upon price, date and market rate of interest unrelated to the coupon rate
or maturity of the purchased security. Although repurchase agreements carry
certain risks not associated with direct investments in securities, including
possible decline in the market value of the underlying securities and delays and
costs to the Fund if the other party to the repurchase agreement becomes
bankrupt, the Funds intend to enter into repurchase agreements only with banks
and dealers believed by G.T. Capital to present minimal credit risks in
accordance with guidelines approved by the Companies' Boards of Trustees. G.T.
Capital reviews and monitors the creditworthiness of such institutions under the
Board's general supervision. See "Investment Objectives and
Policies -- Repurchase Agreements" in the Statement of Additional Information.

The Funds will invest only in repurchase agreements collateralized at all times
in an amount at least equal to the repurchase price plus accrued interest. To
the extent that the proceeds from any sale of such collateral upon a default in
the obligation to repurchase were less than the repurchase price, a Fund would
suffer a loss. If the financial institution that is party to a repurchase
agreement petitions for bankruptcy or otherwise becomes subject to bankruptcy or
other liquidation proceedings, there may be restrictions on a Fund's ability to
sell the collateral and the Fund could suffer a loss. However, with respect to
financial institutions whose bankruptcy or liquidation proceedings are subject
to the U.S. Bankruptcy Code, the Funds intend to comply with provisions under
the U.S. Bankruptcy Code that would allow them immediately to resell such
collateral. The Funds will not enter into a repurchase agreement with a maturity
of more than seven days if, as a result, more than 15% (10% with respect to the
Money Market Fund) of the value of their respective net assets would be invested
in such repurchase agreements and other illiquid securities.

STRIPPED MORTGAGE SECURITIES. The U.S. Government Income Fund may invest in
"stripped" mortgage securities which are derivative multi-class mortgage
securities. The stripped mortgage

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 22
<PAGE> 25

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

securities in which the U.S. Government Income Fund may invest are issued or
guaranteed by agencies or instrumentalities of the U.S. government. Stripped
mortgage securities have greater market volatility than other types of mortgage
securities in which the U.S. Government Income Fund may invest.

Stripped mortgage securities are usually structured with two classes that
receive different proportions of the interest and principal distributions on a
pool of mortgage assets. A common type of stripped mortgage security will have
one class receiving some of the interest and most of the principal from the
mortgage assets, while the other class will receive most of the interest and the
remainder of the principal. In the most extreme case, one class will receive all
of the interest (the interest-only or "IO" class), while the other class will
receive all of the principal (the principal-only or "PO" class). The yield to
maturity on an IO class is extremely sensitive not only to changes in prevailing
interest rates but also to the rate of principal payments (including
prepayments) on the related underlying mortgage assets, and a rapid rate of
principal payments may have a material adverse effect on the yield to maturity
of certain mortgage securities held by the U.S. Government Income Fund. If the
underlying mortgage assets experience greater than anticipated prepayments of
principal, the U.S. Government Income Fund may fail to fully recoup its initial
investment in these securities even if the securities are rated in the highest
rating categories, AAA or Aaa, by S&P or Moody's, respectively.

ZERO COUPON SECURITIES. The Strategic Income Fund and the U.S. Government
Income Fund may invest in certain zero coupon securities that are "stripped"
U.S. Treasury notes and bonds. The Strategic Income Fund also may invest in zero
coupon and other deep discount securities issued by foreign governments and
domestic and foreign corporations, including certain Brady Bonds and other
foreign debt securities and in payment-in-kind securities. Zero coupon
securities pay no interest to holders prior to maturity, and payment-in-kind
securities pay interest in the form of additional securities. However, a portion
of the original issue discount on zero coupon securities and the "interest" on
payment-in-kind securities are included in the investing Fund's income.
Accordingly, to continue to qualify for tax treatment as a regulated investment
company and to avoid a certain excise tax (see "Taxes" in the Statement of
Additional Information), the Strategic Income Fund or the U.S. Government Income
Fund may be required to distribute as a dividend an amount that is greater than
the total amount of cash it actually receives. These distributions must be made
from the Funds' respective cash assets or, if necessary, from the proceeds of
sales of portfolio securities. The Strategic Income Fund and the U.S. Government
Income Fund will not be able to purchase additional income-producing securities
with cash used to make such distributions, and their respective current incomes
ultimately may be reduced as a result. Zero coupon and payment-in-kind
securities usually trade at a deep discount from their face or par value and are
subject to greater fluctuations of market value in response to changing interest
rates than are debt obligations of comparable maturities that make current
distributions of interest in cash.

OTHER INFORMATION. The investment objective(s) of each Fund may not be changed
without the approval by holders of a "majority of the outstanding voting
securities" of such Fund. As defined in the 1940 Act and as used in this
Prospectus, a "majority of the outstanding voting securities" of a Fund means
the lesser of (i) 67% or more of the outstanding shares of the Fund, represented
at a shareholders' meeting at which more than 50% of the outstanding shares of
the Fund are represented at the meeting in person or by proxy or (ii) more than
50% of the outstanding shares of the Fund. In addition, certain investment
limitations have been adopted by each Fund and may not be changed without the
approval by holders of a "majority of the outstanding voting securities" of the
Fund. A complete description of these limitations is included in the Statement
of Additional Information. Unless specifically noted, the investment policies
described in this Prospectus and in the Statement of Additional Information are
not fundamental policies and may be changed by the Board of Trustees of the
relevant Company, without the approval of "a majority of the outstanding voting
securities" of the respective Funds, provided that any such policies as so
amended do not conflict with the fundamental investment limitations of such
Funds. See "Investment Limitations" in the Statement of Additional Information.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 23
<PAGE> 26

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

PORTFOLIO TURNOVER. G.T. Capital does not regard portfolio turnover as a
limiting factor and will buy or sell securities for the Funds as necessary in
response to market conditions to meet the respective Funds' objectives. The
Funds engage in portfolio trading when G.T. Capital concludes that the sale of a
security owned by a Fund and/or the purchase of another security of better value
can enhance principal and/or increase income. A security may be sold to avoid
any prospective decline in market value, or a security may be purchased in
anticipation of a market rise. Consistent with each Fund's investment
objective(s), a security also may be sold and a comparable security purchased in
order to take advantage of what is believed to be a disparity in the normal
yield and price relationship between the two securities. Although the Funds
generally do not intend to trade for short-term profits, the securities in each
Fund's portfolio will be sold whenever G.T. Capital believes it is appropriate
to do so, without regard to the length of time a particular security may have
been held (except to the extent necessary to avoid non-compliance with the
"Short-Short Limitation" described in "Taxes" in the Statement of Additional
Information).

G.T. Capital anticipates that: (i) the annual portfolio turnover rates of the
New Pacific Fund, the Europe Fund, the Infrastructure Fund, the Natural
Resources Fund, the Telecommunications Fund, the International Fund, the
Emerging Markets Fund, and the Money Market Fund will not exceed 100%; (ii) such
turnover rates of the Latin America Fund, the America Fund, the Growth & Income
Fund, and the U.S. Government Income Fund may exceed 100%; and (iii) the annual
portfolio turnover rates of the Strategic Income Fund and the Global Government
Income Fund are likely to exceed 100%. The portfolio turnover rate is calculated
by dividing the lesser of sales or purchases of securities by the respective
Funds' average month-end portfolio value, excluding short-term investments. This
calculation excludes purchases and sales of debt securities having a maturity on
the date of purchase of one year or less. High turnover involves correspondingly
greater transaction costs in the form of dealer spreads or brokerage commissions
and other costs that a Fund will bear directly, and could result in the
realization of net capital gains which would be taxable when distributed to
shareholders. See "Execution of Portfolio Transactions" in the Statement of
Additional Information.

- --------------------------------------------------------------------------------

RISK FACTORS
- --------------------------------------------------------------------------------

The net asset value of each Fund (other than the Money Market Fund) will
fluctuate, reflecting changes in the market value of its investments. There can
be no assurance, however, that the Money Market Fund will be able to maintain a
stable net asset value of $1.00 per share. The value of debt securities held by
a Fund generally varies inversely with movements in interest rates. In addition,
the various investment policies of each Fund present certain specific risks.
These risks are described below.

GENERAL RISKS OF FOREIGN INVESTING. All of the Funds (to a lesser extent the
America Fund) are authorized to invest in foreign securities. Foreign investing
entails certain risks not associated with investing in the securities of U.S.
issuers. Foreign securities generally will not be registered with, nor will the
issuers thereof be subject to the reporting requirements of, the SEC.
Accordingly, there may be less publicly available information about foreign
securities and issuers than is available about U.S. securities and issuers.
Foreign companies generally are not subject to uniform accounting, auditing and
financial reporting standards, practices and requirements comparable to those
applicable to U.S. companies. Securities of some foreign companies are less
liquid and their prices may be more volatile than securities of comparable U.S.
companies. In addition, certain costs attributable to foreign investing, such as
custody charges, are higher than those attributable to domestic investing. The
respective Funds' net investment income from foreign issuers may be subject to
non-U.S. withholding taxes, thereby reducing the respective Funds' net
investment income.

In addition, with respect to some foreign countries, there is the possibility of
expropriation

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 24
<PAGE> 27

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

or confiscatory taxation, limitations on the removal of funds or other assets of
the Funds, political or social instability, or diplomatic or economic
developments which could affect the Funds' investments in those countries.
Moreover, individual foreign economies may differ favorably or unfavorably from
the U.S. economy in such respects as growth of gross national product, rates of
inflation, rates of savings and capital reinvestment, resource self-sufficiency
and balance of payments positions. G.T. Capital will rely on its worldwide
financial and investment expertise to attempt to limit these risks. See "Risk
Factors" in the Statement of Additional Information.

Because the Funds (except the Money Market Fund) may invest substantially, and
the America Fund to a lesser extent, in securities denominated in currencies
other than the U.S. dollar, and because most of the Funds may hold foreign
currencies, such Funds will be affected favorably or unfavorably by exchange
control regulations or changes in the exchange rates between such currencies and
the U.S. dollar. Changes in currency exchange rates will influence the value of
the securities held by the Funds and, as a result, the value of the Funds'
shares, and also may affect the value of dividends and interest earned by the
Funds and gains and losses realized by the Funds. Exchange rates are determined
by the forces of supply and demand in the foreign exchange markets. These forces
are affected by the international balance of payments and other economic and
financial conditions, government intervention, speculation and other factors. If
the currency in which a security is denominated appreciates against the U.S.
dollar, the dollar value of the security will increase. Conversely, a decline in
the exchange rate of the currency would adversely affect the value of the
security expressed in U.S. dollars.

SPECIAL RISKS OF A GLOBAL THEME FUND. The Infrastructure Fund, the Natural
Resources Fund and the Telecommunications Fund concentrate their investments in
a specific industry. Accordingly, the value of the securities held by the
Infrastructure Fund, the Natural Resources Fund and the Telecommunications Fund
and, as a result, the share price of each Fund, may be more volatile than those
of investment companies that do not concentrate their investments in a specific
industry and, thus, each fund individually should not be considered a complete
investment program.

The net asset value of Infrastructure Fund shares will be susceptible to factors
affecting the infrastructure industries. In both the U.S. and foreign countries,
these industries may be subject to greater political, environmental and other
governmental regulation than many other industries. The nature of such
regulation continues to evolve in both the United States and foreign countries,
and changes in governmental policies and the need for regulatory approvals may
have a material effect on the products and services of this industry. Electric,
gas, water and most telecommunications companies in the United States, for
example, are subject to both federal and state regulation affecting permitted
rates of return and the kinds of services that may be offered. Changes in
prevailing interest rates may also affect the Infrastructure Fund's share values
because prices of equity and debt securities of infrastructure companies often
tend to increase when interest rates decline and decrease when interest rates
rise. In addition, many infrastructure companies, including coal, steel, and
other types of companies, have historically been subject to the risks attendant
to increases in fuel and other operating costs, high interest costs on borrowed
funds, costs associated with compliance with environmental and other safety
regulations and changes in the regulatory climate. Such governmental regulation
may also hamper the development of new technologies, and it is impossible to
predict the direction, type or effect of any future regulation. Further
competition is intense for many infrastructure companies. As a result, many of
these companies may be adversely affected in the future and such companies may
be subject to increased share price volatility. In addition, many companies have
diversified into oil and gas exploration and development, therefore returns may
be more sensitive to energy prices. Other infrastructure companies, such as
water supply companies, are in a highly fragmented industry due to local
ownership. Generally these companies are mature and are experiencing little or
no growth.

The net asset value of Natural Resources Fund shares will be susceptible to
factors affecting the natural resource industries. In both the U.S. and foreign
countries, for example, these industries may be subject to greater political,
environmental and other governmental regulation than other industries. The
nature of such regulation continues to evolve in both the U.S. and foreign
countries, and changes in governmental policies

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 25
<PAGE> 28

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

and the need for regulatory approvals may have a material effect on the products
and services of natural resource companies. For example, the exploration,
development and distribution of coal, oil and gas in the United States are
subject to significant federal and state regulation, which may affect rates of
return on such investments and the kinds of services that may be offered. In
addition, many natural resource companies historically have been subject to
significant costs associated with compliance with environmental and other safety
regulations and changes in the regulatory climate. Such governmental regulations
may also hamper the development of new technologies, and it is impossible to
predict the direction, type or effect of any future regulation. Further,
competition is intense for many natural resource companies. As a result, many of
these companies may be adversely affected in the future and the value of the
securities issued by such companies may be subject to increased share price
volatility.

The value of the securities held in the portfolio of the Natural Resources Fund
will fluctuate in response to stock market developments, as well as market
conditions for the particular natural resources with which the issuer is
involved. The price of the commodity will fluctuate due to changes in worldwide
levels of inventory, and changes, perceived or actual, in production and
consumption. The values of natural resources may fluctuate directly with respect
to various stages of the inflationary cycle and perceived inflationary trends
and are subject to numerous factors, including national and international
politics. The Natural Resources Fund's investments in precious metals are
subject to many risks, including substantial price fluctuations over short
periods of time. Further, the Natural Resources Fund's investments in companies
are expected to be subject to irregular fluctuations in earnings, because these
companies are affected by changes in the availability of money, the level of
interest rates, and other factors.

The net asset value of Telecommunications Fund shares will be susceptible to
factors affecting the telecommunications industry. This industry may be subject
to greater governmental regulation than many other industries, and changes in
governmental policies and the need for regulatory approvals may have a material
effect on the products and services of the industry. Telephone operating
companies in the United States, for example, are subject to both federal and
state regulations affecting permitted rates of return and the kinds of services
that may be offered. In addition, government regulation in certain foreign
countries may include interest rate controls, credit controls and price
controls. In some cases foreign governments have taken steps to nationalize the
operations of certain financial services companies, including banks. Certain
types of companies in which the Telecommunications Fund might invest are engaged
in fierce competition for a share of the market for their products. In recent
years, these have been companies providing goods and services such as private
and local area networks and telephone set equipment. Moreover, the investment
flexibility of the Telecommunications Fund may be restricted by the necessity of
satisfying certain diversification requirements in order to maintain the
qualification of the Fund as a regulated investment company within the meaning
of the Internal Revenue Code of 1986, as amended ("Code").

While the holdings of the Telecommunications Fund, the Infrastructure Fund and
the Natural Resources Fund normally will include securities of established
suppliers of traditional products and services, each of these Funds may invest
in smaller companies which can benefit from the development of new products and
services. These smaller companies may present greater opportunities for capital
appreciation, but may involve greater risks than large, established issuers.
Such smaller companies may have limited product lines, markets or financial
resources, and their securities may trade less frequently and in more limited
volume than the securities of larger, more established companies. As a result,
the prices of the securities of such smaller companies may fluctuate to a
greater degree than the prices of the securities of other issuers.

SPECIAL RISKS OF EMERGING MARKETS. The Latin America Fund and the Emerging
Markets Fund concentrate their investments in emerging markets. Most of the
other Funds also may invest a portion of their assets in emerging markets.
Investing in emerging markets involves risks relating to potential political and
economic instability within such markets and the risks of expropriation,
nationalization, confiscation of assets and property or the imposition of
restrictions on foreign investment and on repatriation of capital invested. In
the event of such expropriation, nationalization or other

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 26
<PAGE> 29

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

confiscation in any emerging market, the Funds could lose their entire
investment in that market.

The net asset value of the Funds that invest in emerging markets will fluctuate,
reflecting fluctuations in the market value of their portfolio positions and
their net currency exposure. There is no assurance that these Funds will achieve
their investment objectives.

G.T. Capital believes that the issuers of securities in emerging markets often
have sales and earnings growth rates which exceed those in developed countries
and that such growth rates may in turn be reflected in more rapid share price
appreciation. Accordingly, G.T. Capital believes that investing in equity
securities in emerging markets may enable Funds investing in such markets to
achieve results superior to those produced by mutual funds with similar
objectives that invest solely in equity securities of issuers domiciled in the
U.S. and/or in other developed markets.

Nonetheless, investing in the Funds that invest in emerging markets entails a
substantial degree of risk. Because of the special risks associated with
investing in emerging markets, an investment in such Funds should be considered
speculative. Investors are strongly advised to consider carefully the special
risks involved in emerging markets, which are in addition to the usual risks of
investing in developed markets around the world.

Economies in individual emerging markets may differ favorably or unfavorably
from the U.S. economy in the following respects: growth of gross national
product, rates of inflation, currency depreciation, capital reinvestment,
resource self-sufficiency and balance of payments positions. Many emerging
markets have experienced substantial, and in some periods extremely high, rates
of inflation for many years. Inflation and rapid fluctuations in inflation rates
have had and may continue to have very negative effects on the economies and
securities markets of certain countries with emerging markets.

Economies in emerging markets generally are dependent heavily upon international
trade and, accordingly, have been and may continue to be affected adversely by
trade barriers, exchange controls, managed adjustments in relative currency
values and other protectionist measures imposed or negotiated by the countries
with which they trade. These economies also have been and may continue to be
affected adversely by economic conditions in the countries in which they trade.

The securities markets of emerging countries are substantially smaller, less
developed, less liquid and more volatile than the securities markets of the
United States and other developed countries. Disclosure and regulatory standards
in many respects are less stringent than in more developed markets. There also
may be a lower level of monitoring and regulation of emerging markets and the
activities of investors in such markets, and enforcement of existing regulations
has been extremely limited.

In addition, brokerage commissions, custodial services and other costs relating
to investment in foreign markets, particularly emerging markets, generally are
more expensive than in the United States. Such markets have different settlement
and clearance procedures. In certain markets there have been times when
settlements have been unable to keep pace with the volume of securities
transactions, making it difficult to conduct such transactions.

The inability of a Fund to make intended securities purchases due to settlement
problems could cause the Fund to miss attractive investment opportunities.
Inability to dispose of a portfolio security caused by settlement problems could
result either in losses to the Fund due to subsequent declines in value of the
portfolio security or, if the Fund has entered into a contract to sell the
security, in possible liability to the purchaser.

The risk also exists that an emergency situation may arise in one or more
emerging markets as a result of which trading of securities may cease or may be
substantially curtailed and prices for a Fund's investments in such markets may
not be readily available. Section 22(e) of the 1940 Act permits a registered
investment company to suspend redemption of its shares for any period, during
which an emergency exists, as determined by the SEC. Accordingly, if a Fund
believes that circumstances dictate, it will promptly apply to the SEC for a
determination that such an emergency exists within the meaning of Section 22(e)
of the 1940 Act. During the period commencing from a Fund's identification of
such conditions until the date of SEC action, the Fund's investments in the
affected markets will be valued at fair value determined in good faith by or
under the direction of the relevant Company's Board of Trustees.

LOWER QUALITY DEBT SECURITIES. There are no credit quality limitations placed
on the debt securities in which the Latin America Fund may

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 27
<PAGE> 30

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

invest. In addition, the Infrastructure Fund, the Natural Resources Fund and the
Emerging Markets Fund may each invest up to 20% of its total assets, the
Telecommunications Fund may invest up to 5% of its assets, and the Strategic
Income Fund may invest up to 50% of its assets, in debt securities rated below
investment grade. Such investments involve a high degree of risk. However, the
Infrastructure Fund and the Natural Resources Fund will not invest in securities
in default as to principal and interest.

Investment grade debt securities include those rated at least BBB by S&P or at
least Baa by Moody's, as well as unrated securities determined by G.T. Capital
to be of comparable quality. Moody's considers securities rated Baa to have
speculative characteristics. Debt securities rated below investment grade, i.e.,
rated BB, B, CCC, CC and C by S&P or Ba, B, Caa, Ca or C by Moody's are regarded
by S&P and Moody's, on balance, as predominantly speculative with respect to
capacity to pay interest and repay principal in accordance with the terms of the
obligation. BB indicates the lowest degree of speculation and C the highest
degree of speculation. While such debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties or major
risk exposures to adverse conditions. Similarly, debt securities rated Ba and
below by Moody's are regarded by Moody's as speculative. Debt rated C by Moody's
or S&P is the lowest rated debt that is not in default as to principal or
interest, and such issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing. Such securities are
also generally considered to be subject to greater risk than securities with
higher ratings with regard to a deterioration of general economic conditions.
These debt securities are the equivalent of high yield, high risk bonds,
commonly known as "junk bonds."

Ratings of debt securities represent the rating agency's opinion regarding their
quality and are not a guarantee of quality. Credit ratings attempt to evaluate
the safety of principal and interest payments and do not evaluate the risks of
fluctuations in market value. Also, rating agencies may fail to make timely
changes in credit ratings in response to subsequent events, so that an issuer's
current financial condition may be better or worse than the rating indicates.

The market values of lower rated debt securities tend to reflect individual
developments of the issuer to a greater extent than do higher rated securities,
which react primarily to fluctuations in the general level of interest rates,
tend to be more sensitive to economic conditions and generally have more
volatile prices than higher rated securities. Issuers of lower rated debt
securities are often highly leveraged and may not have available to them more
traditional methods of financing. For example, during an economic downturn or a
sustained period of rising interest rates, highly leveraged issuers of lower
rated debt securities may experience financial stress. During such periods, such
issuers may not have sufficient revenues to meet their interest payment
obligations. The issuer's ability to service its debt obligations may also be
adversely affected by specific developments affecting the issuer, such as the
issuer's inability to meet specific projected business forecasts or the
unavailability of additional financing.

Similarly, certain emerging market governments that issue lower quality debt
securities are among the largest debtors to commercial banks, foreign
governments and supranational organizations such as the World Bank, and may not
be able or willing to make principal and/or interest repayments as they come
due. The risk of loss due to default by the issuer is significantly greater for
the holders of lower rated debt securities because such securities are generally
unsecured and are often subordinated to other creditors of the issuer.

Lower rated debt securities frequently have call or buy-back features which
would permit an issuer to call or repurchase the security from a Fund. If an
issuer exercises these provisions in a declining interest rate market, a Fund
may have to replace the security with a lower yielding security, resulting in a
decreased return for investors. In addition, a Fund may have difficulty
disposing of such lower rated securities because there may be no established
retail secondary market for many of these securities. The lack of a liquid
secondary market may have an adverse impact on market price and may make it more
difficult for a Fund to obtain accurate market quotations for purposes of
valuing the securities held by such Fund. Adverse publicity and investor
perceptions, whether or not based on fundamental analysis, may also decrease the
values and liquidity of lower rated securities, especially in a thinly traded
market. The Infrastructure Fund, the Natural Resources Fund, the
Telecommunications Fund and the

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 28
<PAGE> 31

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

Strategic Income Fund may also acquire lower rated securities during an initial
underwriting or which are sold without registration under applicable securities
laws. Such securities involve special considerations and risks.

Factors having an adverse effect on the market value of lower rated securities
or their equivalents, to the extent a Fund has invested in such securities, will
adversely impact the Fund's net asset value. In addition to the factors noted
above, such factors may include: (i) potential adverse publicity; (ii)
heightened sensitivity to general economic conditions; and (iii) likely adverse
impact of a major economic recession. The Funds may also incur additional
expenses to the extent they are required to seek recovery upon a default in the
payment of principal or interest on its holdings, and the Funds may have limited
legal recourse in the event of a default. Debt securities issued by governments
in emerging markets can differ from debt obligations issued by private entities
in that remedies from defaults generally must be pursued in the courts of the
defaulting government, and legal recourse is therefore somewhat diminished.
Political conditions, in terms of a government's willingness to meet the terms
of its debt obligations, also are of considerable significance. There can be no
assurance that the holders of commercial bank debt may not contest payments to
the holders of debt securities issued by governments in emerging markets in the
event of default by the governments under commercial bank loan agreements.

As of December 31, 1994, the Strategic Income Fund had 74.4% of its total net
assets in debt securities that received a rating from Moody's and 20.2% of its
total net assets in debt securities that were not so rated. In addition, the
Strategic Income Fund had 5.4% of its total net assets in cash and cash items.
The Strategic Income Fund had the following percentages of its total net assets
invested in rated securities: Aaa (including cash and cash items)--41.3%,
Aa--6.9%, A--6.5%, Baa--0.8%, Ba--10.8%, B--13.5%, Caa--0%, Ca--0%, C--0%. It
should be noted that this information reflects the composition of the Fund's
assets as of December 31, 1994 and is not necessarily representative of its
assets at any time after that date.

G.T. Capital attempts to minimize the speculative risks associated with
investments in lower quality securities through credit analysis and by carefully
monitoring current trends in interest rates, political developments and other
factors. Nonetheless, investors should carefully review the investment
objective(s) and policies of each Fund and consider their ability to assume the
investment risks involved before making an investment. See "Description of Debt
Ratings" in the Statement of Additional Information.

SOVEREIGN DEBT. The Latin America Fund, the Emerging Markets Fund, and the
Strategic Income Fund may invest in Sovereign Debt. Investments in Sovereign
Debt involve special risks. The issuer of the debt or the governmental
authorities that control the repayment of the debt may be unable or unwilling to
repay principal or interest when due in accordance with the terms of such debt,
and a Fund may have limited legal recourse in the event of a default. Periods of
economic uncertainty may result in the volatility of market prices of Sovereign
Debt and, in turn, a Fund's net asset value, to a greater extent than the
volatility inherent in domestic fixed income securities.

Sovereign Debt differs from debt obligations issued by private entities in that,
generally, remedies for defaults must be pursued in the courts of the defaulting
party. Legal recourse is therefore somewhat limited. Political conditions,
especially a sovereign entity's willingness to meet the terms of its debt
obligations, are of considerable significance. Also, there can be no assurance
that the holders of commercial bank loans to the same sovereign entity may not
contest payments to the holders of Sovereign Debt in the event of default under
commercial bank loan agreements.

A sovereign debtor's willingness or ability to repay principal and pay interest
in a timely manner may be affected by, among other factors, its cash flow
situation, the extent of its foreign reserves, the availability of sufficient
foreign exchange on the date a payment is due, the relative size of the debt
service burden to the sovereign debtor's economy as a whole, the sovereign
debtor's policy toward principal international lenders and the political
constraints to which the sovereign debtor may be subject. Sovereign debtors may
default on their Sovereign Debt. Sovereign debtors also may be dependent on
expected disbursements from foreign governments, multilateral agencies and
others abroad to reduce principal and interest arrearages on their debt. The
commitment on the part of these governments, agencies and

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 29
<PAGE> 32

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

others to make such disbursements may be conditioned on a sovereign debtor's
implementation of economic reforms and/or economic performance and the timely
service of such debtor's obligations. Failure to implement such reforms, achieve
such levels of economic performance or repay principal or interest when due, may
result in the cancellation of such third parties' commitments to lend funds to
the sovereign debtor, which may further impair such debtor's ability or
willingness to timely service its debts.

The occurrence of political, social or diplomatic changes in one or more of the
countries issuing Sovereign Debt could adversely affect a Fund's investments.
The countries issuing such instruments are faced with social and political
issues, and some of them have experienced high rates of inflation in recent
years and have extensive internal debt. Among other effects, high inflation and
internal debt service requirements may adversely affect the cost and
availability of future domestic sovereign borrowing to finance governmental
programs, and may have other adverse social, political and economic
consequences. Political changes or a deterioration of a country's domestic
economy or balance of trade may affect the willingness of countries to service
their Sovereign Debt. Although G.T. Capital intends to manage the respective
Funds' investments in a manner that will minimize the exposure to such risks,
there can be no assurance that adverse political changes will not cause a Fund
to suffer a loss of interest or principal on any of its holdings.

In recent years, some of the emerging market countries in which the Funds may
invest have encountered difficulties in servicing their Sovereign Debt. Some of
these countries have withheld payments of interest on and/or principal of
Sovereign Debt. These difficulties have also led to agreements to restructure
external debt obligations -- in particular, commercial bank loans -- typically
by rescheduling principal payments, reducing interest rates and extending new
credits to finance interest payments on existing debt. In the future, holders of
Sovereign Debt may be requested to participate in similar rescheduling of such
debt. Certain emerging market countries are among the largest debtors to
commercial banks and foreign governments. Currently, Brazil, Mexico and
Argentina are the largest debtors among developing countries. At times certain
emerging market countries have declared moratoria on the payment of principal
and interest on external debt; such a moratorium is currently in effect in
certain emerging market countries. There is no bankruptcy proceeding by which a
creditor may collect in whole or in part Sovereign Debt on which an emerging
market government has defaulted.

The ability of emerging market governments to make timely payments on their
Sovereign Debt is likely to be influenced strongly by a country's balance of
trade and its access to trade and other international credits. A country whose
exports are concentrated in a few commodities could be vulnerable to a decline
in the international prices of one or more of such commodities. Increased
protectionism on the part of a country's trading partners could also adversely
affect its exports. Such events could diminish a country's trade account
surplus, if any. To the extent that a country receives payment for its exports
in currencies other than hard currencies, its ability to make hard currency
payments could be affected.

Investors should also be aware that certain Sovereign Debt instruments in which
the Funds may invest involve great risk. Sovereign Debt issued by emerging
market issuers generally is deemed to be the equivalent in terms of quality to
securities rated below investment grade by Moody's and S&P. Such securities are
regarded as predominantly speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the obligations
and involve major risk exposure to adverse conditions. Some of such Sovereign
Debt, which may not be paying interest currently or may be in payment default,
may be comparable to securities rated D by S&P or C by Moody's. A Fund may have
difficulty disposing of and valuing certain Sovereign Debt obligations because
there may be a limited trading market for such securities. Because there is no
liquid secondary market for many of these securities, the Funds anticipate that
such securities could be sold only to a limited number of dealers or
institutional investors.

ARMS. ARMs differ from conventional bonds in that principal is repaid over the
life of the ARM rather than at maturity. The holder of an ARM, (e.g., the U.S.
Government Income Fund) receives not only monthly scheduled payments of
principal and interest, but also may receive unscheduled principal payments
representing prepayments on the underlying mortgages. An investor, therefore,
may have to reinvest the

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 30
<PAGE> 33

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

periodic payments and any unscheduled prepayments of principal it receives, at a
rate of interest which is lower than the rate on the ARMs held by it. For this
reason, ARMs may be less effective than other types of U.S. government
securities as a means of "locking in" long-term interest rates.

The market value of ARMs, like other U.S. government securities, will generally
vary inversely with changes in market interest rates, declining when interest
rates rise and rising when interest rates decline. ARMs have less risk of price
decline during periods of rapidly rising rates than other investments of
comparable maturities. However, they will also have less potential for capital
appreciation due to the likelihood of increased prepayments of mortgages as
interest rates decline. In addition, to the extent ARMs are purchased at a
premium, mortgage foreclosures and unscheduled principal prepayments will result
in some loss of the holder's principal investment to the extent of the premium
paid. On the other hand, if ARMs are purchased at a discount, both a scheduled
payment of principal and an unscheduled prepayment of principal will increase
current and total returns and will accelerate the recognition of income which,
when distributed to shareholders, will be taxable as ordinary income.

RISKS OF THE MONEY MARKET FUND. In periods of declining interest rates the
Money Market Fund's yield will tend to be somewhat higher than prevailing market
rates; conversely, in periods of rising interest rates, the Money Market Fund's
yield will tend to be somewhat lower than those rates. Also, when interest rates
are falling, the net new money flowing into the Money Market Fund from the sale
of its shares and reinvestment of dividends likely will be invested by the Fund
in instruments producing lower yields than the balance of the securities held by
the Fund, thereby reducing the Fund's yield. The opposite generally will be true
in periods of rising interest rates. The Money Market Fund is designed to
provide maximum current income consistent with the liquidity and safety afforded
by investment in high quality money market instruments; the Money Market Fund's
yield may be lower than that produced by funds investing directly in lower
quality and/or longer-term securities.

- --------------------------------------------------------------------------------

CURRENCY, OPTIONS AND
FUTURES STRATEGIES
- --------------------------------------------------------------------------------

Each Fund (except the Money Market Fund) may employ certain risk management
practices involving the use of forward currency contracts, options contracts and
futures contracts to attempt to hedge its portfolio, i.e., reduce the overall
level of investment risk normally associated with the Fund. These instruments
are often referred to as "derivatives," which may be defined as financial
instruments whose performance is derived, at least in part, from the performance
of another asset (such as a security, currency, or an index of securities). The
Funds may enter into such investments up to the full value of their portfolio
assets. There can be no assurance that such risk management practices will
succeed. These hedging techniques are described below and are further detailed
in the Statement of Additional Information.

To attempt to increase return, the Growth & Income Fund, the Strategic Income
Fund, the Global Government Income Fund and the U.S. Government Income Fund may
write covered call options on securities they hold. This strategy will be
employed only when, in the opinion of G.T. Capital, the size of the premium the
Fund receives for writing the option is adequate to compensate the Fund against
the risk that appreciation in the underlying security may not be fully realized
if the option is exercised. Each of these Funds is also authorized to write
covered put options to attempt to enhance return.

To attempt to hedge against adverse movements in exchange rates between
currencies, each Fund (except the Money Market Fund) may enter into forward
currency contracts for the purchase or sale of a specified currency at a
specified future date. Such contracts may involve the purchase or sale of a
foreign currency against the U.S. dollar or may involve two foreign currencies.
Each such Fund may enter into forward currency contracts either with respect to
specific transactions or with respect to specific securities held by the Fund.
For example, when a Fund anticipates making a purchase or sale of a security, it
may enter into a

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 31
<PAGE> 34

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

forward currency contract in order to set the rate (either relative to the U.S.
dollar or another currency) at which a currency exchange transaction related to
the purchase or sale will be made. Further, when G.T. Capital believes that a
particular currency may decline compared to the U.S. dollar or another currency,
each such Fund may enter into a forward contract to sell the currency G.T.
Capital expects to decline in an amount approximating the value of some or all
of the Fund's securities denominated in a foreign currency. Each such Fund also
may write covered call options and purchase put and call options on currencies
to hedge against movements in exchange rates.

In addition, each Fund (except the Money Market Fund) may write covered call
options and purchase put and call options on equity and debt securities to hedge
against the risk of fluctuations in the prices of securities held by the Fund or
which G.T. Capital intends to purchase for the Fund. Each such Fund, except for
the Strategic Income Fund, the Global Government Income Fund and the U.S.
Government Income Fund, also may write covered call options and buy put and call
options on stock indices. Such stock index options serve to hedge against
overall fluctuations in the securities markets generally, rather than
anticipated increases or decreases in the value of a particular security.

Further, each such Fund, except for the Strategic Income Fund, the Global
Government Income Fund and the U.S. Government Income Fund, may sell stock index
futures contracts and may purchase put options or write covered call options on
such futures contracts to protect against a general stock market decline that
could adversely affect the value of securities held by the Fund. Such Funds also
may buy stock index futures contracts and purchase call options on such
contracts to hedge against a general stock market or market sector advance and
thereby attempt to lessen the cost of future securities acquisitions. Such
Funds, (including the Strategic Income Fund, the Global Government Income Fund
and the U.S. Government Income Fund), may use interest rate futures contracts
and options thereon to hedge debt securities held by it against changes in the
general level of interest rates. Each Fund may write only "covered" call
options. Each Fund will also "cover" stock index options and options on futures
contracts that it writes.

SWAPS, CAPS, FLOORS AND COLLARS. The Strategic Income Fund may enter into
interest rate, currency and index swaps, and purchase or sell related caps,
floors and collars and other derivative instruments. The Strategic Income Fund
expects to enter into these transactions primarily to preserve a return or
spread on a particular investment or portion of its portfolio, to protect
against currency fluctuations as a duration management technique or to protect
against any increase in the price of securities the Fund anticipates purchasing
at a later date. The Strategic Income Fund intends to use these transactions as
hedges and not as speculative investments and will not sell interest rate caps
or floors if it does not own securities or other instruments providing the
income the Strategic Income Fund may be obligated to pay. Interest rate swaps
involve the exchange by the Strategic Income Fund with another party of their
respective commitments to pay or receive interest (for example, an exchange of
floating rate payments for fixed rate payments) with respect to a notional
amount of principal.

A currency swap is an agreement to exchange cash flows on a notional amount
based on changes in the values of the reference indices. The purchase of an
interest rate cap entitles the purchaser to receive payments on a notional
principal amount from the party selling the cap to the extent that a specified
index exceeds a predetermined interest rate. The purchase of an interest rate
floor entitles the purchaser to receive payments of interest on a notional
principal amount from the party selling the interest rate floor to the extent
that a specified index falls below a predetermined interest rate or amount. A
collar is a combination of a cap and a floor that preserves a certain return
with a predetermined range of interest rates or values.

The Strategic Income Fund enters into interest rate protection transactions only
with banks and recognized securities dealers believed by G.T. Capital to present
minimal credit risks in accordance with guidelines established by the Company's
Board of Trustees. If there is a default by the other party to such a
transaction, the Strategic Income Fund will have to rely on its contractual
remedies (which may be limited by bankruptcy, insolvency or similar laws)
pursuant to the agreements related to the transaction. The swap market has grown
substantially in recent years, with a large number of banks and investment
banking firms acting both as principals and as agents utilizing standardized
swap documentation. Caps, collars and floors are more recent

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 32
<PAGE> 35

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

innovations for which documentation is less standardized, and, accordingly, are
less liquid than swaps.

INDEXED COMMERCIAL PAPER. The Strategic Income Fund also may invest without
limitation in commercial paper which is indexed to certain specific foreign
currency exchange rates. The terms of such commercial paper provide that its
principal amount is adjusted upwards or downwards (but not below zero) at
maturity to reflect changes in the exchange rate between two currencies while
the obligation is outstanding. The Fund will purchase such commercial paper with
the currency in which it is denominated and, at maturity, will receive interest
and principal payments thereon in that currency, but the amount of principal
payable by the issuer at maturity will change in proportion to the change (if
any) in the exchange rate between the two specified currencies between the date
the instrument is issued and the date the instrument matures. While such
commercial paper entails the risk of loss of principal, the potential for
realizing gains as a result of changes in foreign currency exchange rates
enables the Strategic Income Fund to hedge (or cross-hedge) against a decline in
the U.S. dollar value of investments denominated in foreign currencies while
providing an attractive money market rate of return. The Strategic Income Fund
will purchase such commercial paper for hedging purposes only, not for
speculation. The staff of the SEC is currently considering whether the purchase
of this type of commercial paper by mutual funds such as the Strategic Income
Fund would result in the issuance of a "senior security" within the meaning of
the 1940 Act. The Strategic Income Fund believes that such investments do not
involve the creation of such a senior security but, nevertheless, has
undertaken, pending the resolution of this issue by the SEC staff, to establish
a segregated account with respect to its investments in this type of commercial
paper and to maintain in such account cash not available for investment or U.S.
government securities or liquid, high grade debt securities having a value equal
to the aggregate, outstanding principal amount of the commercial paper of this
type that is held by the Strategic Income Fund.

Although the Funds might not employ any of the foregoing strategies, the use of
forward currency contracts, options and futures would involve certain investment
risks and transaction costs to which they might not otherwise be subject. These
risks include: dependence on G.T. Capital's ability to predict movements in the
prices of individual securities, fluctuations in the general securities markets
and movements in interest rates and currency markets; imperfect correlation
between movements in the prices of currencies, options, futures contracts or
options thereon and movements in the price of the currency or security hedged or
used for cover; the fact that skills and techniques needed to trade options,
futures contracts and options thereon or to use forward currency contracts are
different from those needed to select the securities in which the Funds invest;
lack of assurance that a liquid secondary market will exist for any particular
option, futures contract or option thereon at any particular time, which may
cause a Fund to purchase or sell a portfolio security at a disadvantageous time,
which, in turn, may cause an increase in that Fund's rate of portfolio turnover;
and the possible need to defer closing out of certain options, futures contracts
and options thereon in order for a Fund to qualify or continue to qualify for
the beneficial tax treatment afforded regulated investment companies under the
Code. See "Taxes" in the Statement of Additional Information.

- --------------------------------------------------------------------------------

HOW TO INVEST
- --------------------------------------------------------------------------------

Shares of the Funds currently are offered to separate accounts established by
the Participating Insurance Companies for funding variable annuity contracts
("Separate Accounts") pursuant to the insurance laws of their respective
jurisdictions.

The owners of such contracts may allocate premium payments among the general
accounts of the Participating Insurance Companies and the divisions of the
Separate Accounts which correspond to the Funds. Individuals may not pay
variable annuity premiums directly to the Funds. These Separate Accounts are
registered with the SEC as unit investment trusts, each having a prospectus of
its own.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 33
<PAGE> 36

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

Shares of the Funds are offered and redeemed at their respective net asset
values without the addition of any sales load or redemption charge next
determined following receipt by a Separate Account of premium payments,
surrender requests under policies, loan payments, transfer requests, and similar
or related transactions. The Funds do not issue share certificates. See
"Calculation of Net Asset Value."

- --------------------------------------------------------------------------------

CALCULATION OF NET ASSET VALUE
- --------------------------------------------------------------------------------

Each Fund calculates its net asset value as of the close of normal trading on
the New York Stock Exchange ("NYSE") (currently 4:00 p.m. Eastern Time, unless
weather, equipment failure or other factors contribute to an earlier closing
time) each Business Day. Net asset value per share is computed by determining
the value of each Fund's assets (the securities it holds plus any cash or other
assets, including interest and dividends accrued but not yet received),
subtracting all the Fund's liabilities (including accrued expenses), and
dividing the result by the total number of shares outstanding at such time.

Equity securities are valued at the last sale price on the exchange or in the
principal OTC 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. Fixed income securities and debt securities
generally are valued at the mean of representative quoted bid or asked prices.
Short-term debt investments are amortized to maturity based on their cost,
adjusted for foreign exchange translation.

Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by or under direction of the respective
Company's Board of Trustees. Securities quoted in foreign currencies will be
valued in U.S. dollars based on the prevailing exchange rates on that day. Each
Fund's portfolio securities, from time to time, may be listed primarily on
foreign exchanges or OTC dealer markets which may trade on days when the NYSE is
closed (such as Saturday). As a result, the net asset value of a Fund may be
affected significantly by such trading on days when shareholders have no access
to that Fund.

The Money Market Fund uses the amortized cost method of valuing its investments,
pursuant to which the market value of an instrument is approximated by
amortizing the difference between the acquisition cost and value at maturity of
the instrument on a straight-line basis over its remaining life. All cash,
receivables and current payables are carried at their face value.

The Money Market Fund intends to use its best efforts to maintain its net asset
value at $1.00 per share. There can be no assurance that the Money Market Fund
will be able to maintain a stable $1.00 per share price. The value of each share
of the Money Market Fund is computed by dividing the Fund's net assets by the
number of its outstanding shares. "Net assets" equal the value of the Money
Market Fund's investments and other assets, less its liabilities.

- --------------------------------------------------------------------------------

DIVIDENDS, OTHER DISTRIBUTIONS
AND FEDERAL INCOME TAXATION
- --------------------------------------------------------------------------------

The Money Market Fund declares dividends from net investment income on each day
the Fund determines its net asset value, payable to shareholders of record as of
the close of regular trading on the NYSE on the preceding business day.
Dividends are usually paid on the last calendar day of each month. The Fund's
net investment income consists of accrued interest and earned discount
(including both original issue and market discounts), less amortization of
market premium and applicable expenses, and is calculated immediately prior to
the determination of net asset value per share. The Fund generally distributes
to its shareholders any net short-term capital gain annually after the end of
its fiscal year on December 31 but may make earlier distributions of that gain
if necessary to maintain its net asset value per share at $1.00 or to avoid

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 34
<PAGE> 37

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

income or excise taxes. The Fund does not expect to realize long-term capital
gain.

The Strategic Income Fund, the Global Government Income Fund and the U.S.
Government Income Fund declare and pay dividends from net investment income, if
any, monthly.

The Growth & Income Fund declares and pays dividends from net investment income,
if any, and net short-term capital gains, if any, quarterly.

Each other Fund declares and pays dividends from net investment income, if any,
annually, and all Funds also annually distribute to their shareholders all of
their net short-term capital gain (the excess of net long-term capital gain over
net short-term capital loss), if any, and any net gains from foreign currency
transactions. Dividends and other distributions from a Fund are paid in
additional shares of that Fund at net asset value per share, unless the transfer
agent is instructed otherwise. See the applicable VA Contract prospectus for
information regarding the federal income tax treatment of distributions to the
Separate Accounts.

Each Fund intends to qualify for treatment as a regulated investment company
("RIC") under Subchapter M of the Code. In each taxable year that a Fund so
qualifies, the Fund (but not its shareholders) will be relieved of federal
income tax on that part of its investment company taxable income (consisting
generally of net investment income, net gains from certain foreign currency
transactions and net short-term capital gain), and net capital gain that is
distributed to Fund shareholders. Each Fund will distribute to its shareholders
at least 90% of its investment company taxable income.

Fund shares are offered only to Separate Accounts established to fund variable
annuity contracts. Under the Code, no tax is imposed on an insurance company
with respect to income of a qualifying separate account properly allocable to
the value of eligible variable annuity or variable life insurance contracts. See
the applicable VA Contract prospectus for a discussion of the federal income tax
status of (1) the Separate Accounts that purchase and hold shares of the Funds
and (2) the holders of VA Contracts funded through those accounts.

Each Fund intends to comply with the diversification requirements imposed by
section 817(h) of the Code and the regulations thereunder. These requirements,
which are in addition to the diversification requirements imposed on the Funds
by the 1940 Act and Subchapter M of the Code, place certain limitations on the
amount of assets of each Separate Account -- and, because section 817(h) and
those regulations treat each Fund's assets as assets of the related Separate
Accounts -- that can be invested in securities of a single issuer.

Specifically, the regulations provide in part that, except as permitted by the
"safe harbor" described below, as of the end of each calender quarter or within
30 days thereafter, no more than 55% of the total assets of a Fund may be
invested in the securities of any one issuer. For this purpose, all securities
of the same issuer are consolidated, and, while each U.S. government agency and
instrumentality is considered a separate issuer, a particular foreign government
and its agencies, instrumentalities and political subdivisions are all
considered to be the same issuer. Section 817(h) provides, as a safe harbor,
that adequate diversification will exist for a separate account if the
diversification requirements under Subchapter M are satisfied and no more than
55% of the value of the separate account's total assets are cash and cash items,
government securities and securities of other RICs. Failure of a Fund to satisfy
the section 817(h) requirements would result in treatment of the VA Contract
holders other than as described in the applicable VA Contract prospectus.

The foregoing is only a summary of some of the important federal income tax
considerations generally affecting the Funds and the Separate Accounts. See the
Statement of Additional Information for a more detailed discussion.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 35
<PAGE> 38

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

- --------------------------------------------------------------------------------

MANAGEMENT
- --------------------------------------------------------------------------------

Each Company's Board of Trustees has overall responsibility for the operation of
the Funds organized as series of that Company. Pursuant to such responsibility,
the Board of each Company has approved contracts with various financial
organizations to provide, among other things, day to day management services
required by its Funds.

INVESTMENT MANAGEMENT AND ADMINISTRATION SERVICES FOR THE FUNDS. Services
provided by G.T. Capital as each Fund's investment manager and administrator
include, but are not limited to, determining the composition of each securities
portfolio and placing orders to buy, sell or hold particular securities;
furnishing corporate officers and clerical staff; providing office space,
services and equipment; and supervising all matters relating to each Fund's
operation. 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 America Fund, the Strategic Income
Fund, the Global Government Income Fund and the U.S. Government Income 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. Each other Fund
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. These rates are higher than those paid by most mutual
funds.

G.T. Capital, organized in 1973, provides investment management and/or
administration services to all the other G.T. Global Mutual Funds as well as to
other institutional, corporate and individual clients. The offices of G.T.
Capital are located at 50 California Street, San Francisco, California 94111.

G.T. Capital is the U.S. member of the G.T. Group, an international investment
advisory organization established in 1969 for the purpose of rendering
international portfolio management services to both institutional and individual
clients. Since the G.T. Group was established, it has gained a reputation as a
leader in identifying and investing in emerging and established markets around
the world. As of January 3, 1995, aggregate assets under G.T. Group management
exceeded $22 billion, of which more than $19.6 billion was invested in the
securities of non-U.S. issuers.

In addition to the San Francisco office, the G.T. Group maintains fully staffed
investment offices in London, Hong Kong, Tokyo, Toronto, Singapore and Sydney.
Many of G.T. Capital's investment managers are natives of the countries in which
they invest, and have the advantage of being close to the financial markets they
follow. G.T. Capital's experienced management team is situated to react quickly
to changes in foreign markets which are in time zones different from those in
the United States.

G.T. Capital and the other companies in the G.T. Group are subsidiaries of BIL
GT Group Limited ("BIL GT Group"), a financial services holding company. BIL GT
Group in turn is controlled by the Prince of Liechtenstein Foundation, which
serves as the parent organization for the various business enterprises of the
Princely Family of Liechtenstein. Its principal business address is Harrengasse
12, FL-9490, Vaduz, Liechtenstein.

In managing the Funds, G.T. Capital employs a team approach, taking advantage of
the resources of its various investment offices around the world in seeking to
achieve the Funds' objectives. In addition, in managing the Funds these
individuals utilize the research and related work of other members of G.T.
Capital's investment staff.

The investment professionals primarily responsible for the portfolio management
of each Fund are as follows:

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 36
<PAGE> 39

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

NEW PACIFIC FUND
--------------------

EUROPE FUND
---------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Serge Selfslagh Security selection for Portfolio Manager for G.T.
London Continental Europe Management PLC (London) and G.T.
since 1993 Capital since 1993. Prior
thereto, Mr. Selfslagh was a
Portfolio Manager for Schroeder
Investment Management (London)
and its U.S. affiliate SCMI.
Roger Yates Security selection for Portfolio Manager for G.T. Capital
London the UK since 1994 since 1994. Portfolio Manager of
G.T. Management PLC (London)
since 1994. Prior thereto, Mr.
Yates was an Investment Manager
for Morgan General Asset
Management.
</TABLE>

LATIN AMERICA FUND
------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Soraya M. Betterton Portfolio manager (asset Portfolio Manager for G.T.
San Francisco allocation and security Capital.
selection) since Fund
inception in 1993
Andrew Boczek Assistant portfolio Analyst for G.T. Capital since
San Francisco manager since 1993 1993; prior thereto, analyst for
Montgomery Asset Management, and
student at University of Chicago
Graduate School of Business
(where he received a Masters of
Business Administration).
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 37
<PAGE> 40

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

EMERGING MARKETS FUND
----------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
James M. Bogin Portfolio manager since Portfolio Manager for G.T. Capital
San Francisco Fund inception in 1994 since 1993; From 1989 to 1993,
Mr. Bogin was a Fund Manager at
Nomura Investment Management Co.
(Tokyo).
Christine Myers Assistant portfolio Portfolio Manager for G.T.
Hong Kong manager since Fund Management Ltd. (Hong Kong) and
inception in 1994 G.T. Capital since 1992; From
1991 to 1992, Ms. Myers was an
Investment Analyst for G.T.
Management Ltd. Prior thereto,
she was an Analyst for the Bank
of England.
</TABLE>

AMERICA FUND
-----------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Kevin L. Wenck Portfolio manager since Portfolio Manager for G.T. Global
San Francisco Fund inception in 1993 since 1991. Prior thereto Mr.
Wenck was a Portfolio Manager of
Matuschka & Co (Greenwich, CT).
Richard M. Parower Investment analyst since Investment Analyst for G.T.
San Francisco 1993 Capital since 1993. From 1991 to
1993, Mr. Parower was a student
at Columbia University Graduate
School of Business (where he
received a Masters of Business
Administration). In 1991 he was
an Analyst for Cowen Asset
Management (New York). Prior
thereto, Mr. Parower was an
Analyst at Matuschka & Co.
(Greenwich, CT).
Jeanne M. Kraus Research analyst since Analyst of G.T. Capital since
1993 1991. From 1989 to 1991, Ms.
Kraus was an Assistant at
Massachusetts Financial
Services.
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 38
<PAGE> 41

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

INFRASTRUCTURE FUND
-----------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
David L. Sherry Co-Portfolio manager Investment Analyst for G.T.
San Francisco since its inception Capital since 1993. From 1992 to
in 1995 1993, Mr. Sherry was Senior
Securities Analyst for Franklin
Resources, Inc. (San Mateo, CA).
From 1990 to 1992, he was a
student at University of
California at Los Angeles
Graduate School of Business
(where he received a Masters of
Business Administration). Prior
thereto, he was an Assistant
Treasurer with Brown Brothers
Harriman (NY).
Michael Mahoney Co-Portfolio manager Portfolio Manager for G.T. Capital
San Francisco since its inception in since 1993. From 1991 to 1993,
1995 Mr. Mahoney was an Investment
Analyst of G.T. Capital. From
1989 to 1991, he was a student
at Stanford Graduate School of
Business (where he received a
Masters of Business
Administration). Prior thereto,
he was a Management Consultant
of Bain & Co., management
consulting (Boston).
</TABLE>

NATURAL RESOURCES FUND
----------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Charles A. Wall Portfolio manager since Portfolio Manager for G.T.
Sydney its inception in 1995 Management (Australia) Ltd.
since 1992. Prior thereto, Mr.
Wall was a Portfolio Manager for
Baring Securities (Sydney).
Derek H. Webb Assistant portfolio Analyst for G.T. Capital
San Francisco manager since its Management, Inc. since 1992.
inception in 1995 From 1990 to 1992, Mr. Webb was
a student of the University of
Pennsylvania, Wharton School of
Business. During 1989, he was
Vice President, Citicorp
Investment Bank of Los Angeles.
Prior thereto, he was a Bond
Trader, Trust Co. of the West
(Los Angeles).
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 39
<PAGE> 42

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

TELECOMMUNICATIONS FUND
-------------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Michael J. Mahoney Portfolio manager since Portfolio Manager for G.T. Capital
San Francisco Fund inception in 1993 since 1993. From 1991 to 1993,
Mr. Mahoney was an Investment
Analyst of G.T. Capital. From
1989 to 1991, he was a student
at Stanford University Graduate
School of Business (where he
received a Masters of Business
Administration). Prior thereto,
he was a Management Consultant
of Bain & Co., management
consulting (Boston).
David L. Sherry Assistant portfolio Analyst of G.T. Capital since
San Francisco manager since Fund 1993. From 1992 to 1993, Mr.
inception in 1993 Sherry was Senior Securities
Analyst for Franklin Resources,
Inc. (San Mateo, CA). From 1990
to 1992, he was a student at
University of California at Los
Angeles Graduate School of
Business (where he received a
Masters of Business
Administration). Prior thereto
he was an Assistant Treasurer
with Brown Brothers Harriman
(NY).
</TABLE>

GROWTH & INCOME FUND
----------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Gary Kreps Overall supervision and Chief Investment Officer -- Global
San Francisco asset allocation of Fixed Income Investments for
established market debt G.T. Capital since 1992. Prior
investments since Fund thereto, Mr. Kreps was the
inception in 1993. Senior Vice President for Global
Fixed Income of Putnam
Management Co. (Boston).
Paul Murray-John Portfolio manager Portfolio Manager for G.T. Capital
London (established market since 1994; Trader of G.T.
debt selection) since Management PLC (London) since
1994 1993. From 1992 to 1993, Mr.
Murray-John was an Analyst,
Bloomberg, L.P. Prior thereto,
he was Fund Manager for Robert
Fleming & Co.
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 40
<PAGE> 43

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

STRATEGIC INCOME FUND
--------------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
Gary Kreps Overall supervision since Chief Investment Officer -- Global
San Francisco Fund inception in 1993 Fixed Income for G.T. Capital
since 1992. Prior thereto, Mr.
Kreps was Senior Vice President
for Global Fixed Income of
Putnam Management Co. (Boston).
Simon Nocera Co-Portfolio manager Portfolio Manager and Economist of
San Francisco (asset allocation and G.T. Capital since 1992.
emerging market debt From 1991 to 1992, Mr. Nocera
selection) since Fund was an Economist for Putnam
inception in 1993 Management Company (Boston).
Prior thereto, he was an
Economist for the International
Monetary Fund
(Washington, D.C.).
Nikos G. Pappayliou Co-Portfolio manager Trader -- Global Fixed Income
San Francisco (established market Investments for G.T. Capital
debt selection) since since 1992. From 1991 to 1992,
1994 Mr. Pappayliou was European
Fixed Income Arbitrageur for
Swiss Bank (London). Prior
thereto, he was Fixed Income
Arbitrageur for Credit Lyonnais
(Paris).
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 41
<PAGE> 44

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

INTERNATIONAL FUND
----------------------

<TABLE>
<CAPTION>
RESPONSIBILITIES FOR BUSINESS EXPERIENCE
NAME/OFFICE THE FUND LAST FIVE YEARS
------------ ------------------ -------------------
<S> <C> <C>
F. Christian Wignall Overall supervision and Chief Investment Officer -- Global
San Francisco asset allocation since Equities for G.T. Capital.
Fund inception in 1994
Michael Lindsell Portfolio manager since Chief Investment Officer -- Japan
Tokyo 1994 for G.T. Management (Japan) Ltd
as well as Portfolio Manager for
G.T. Capital since 1992. Prior
thereto Mr. Lindsell was a
Director of Warburg Asset
Management (Tokyo, Japan).
Malcolm Tulloch Portfolio manager since Portfolio Manager for G.T.
London 1994 Management PLC (London) as well
as Portfolio Manager for G.T.
Capital since 1994. Prior
thereto, Mr. Tulloch was
Managing Director of Tulloch
Research (London, England).
Soraya M. Betterton Security selection for Portfolio Manager for G.T.
San Francisco Canada and Latin Capital.
America since Fund
inception in 1994
Nicholas W. Andrews Security selection for Portfolio Manager for G.T.
Sydney Australia and New Management (Australia) Ltd. and
Zealand since Fund G.T. Capital since 1991. Prior
inception in 1994 thereto Mr. Andrews was an
Investment Analyst for Legal and
General Life of Australia
(Sydney).
Peter Eadon-Clarke Security selection for Chief Investment Officer for G.T.
Hong Kong Asian countries Management (Asia) Ltd. as well
(excluding Japan) since as Portfolio Manager of G.T.
Fund inception in 1994 Capital since 1992. Prior
thereto Mr. Eadon-Clarke was an
Associate Director of Wardley
Investment Services (Hong Kong).
Roger Yates Security selection for Portfolio Manager for G.T. Capital
London the UK since 1994. since 1994. Portfolio Manager
for G.T. Management PLC (London)
since 1994. Prior thereto, Mr.
Yates was an Investment Manager
for Morgan General Asset
Management.
Serge Selfslagh Security selection for Portfolio Manager for G.T.
London Continental Europe Management PLC (London) and G.T.
since Fund inception in Capital since 1993. Prior
1994 thereto Mr. Selfslagh was a
Portfolio Manager for Schroeder
Investment Management (London)
and its U.S. affiliate SCMI.
</TABLE>

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 42
<PAGE> 45

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

U.S. GOVERNMENT INCOME FUND
-------------------------------------

GLOBAL GOVERNMENT INCOME FUND
----------------------------------------

MONEY MARKET FUND
------------------------

In placing securities orders for the Funds, G.T. Capital seeks to obtain the
best net results. G.T. Capital has no agreement or commitment to place orders
with any broker-dealer. Commissions or discounts in foreign securities exchanges
or OTC markets often are fixed and generally are higher than those in U.S.
securities exchanges or markets. Debt securities generally are traded on a "net"
basis with a dealer acting as principal for its own account without a stated
commission, although the price of the security usually includes a profit to the
dealer. U.S. and foreign government securities and money market instruments
generally are traded in the OTC markets. In underwritten offerings, securities
usually are purchased at a fixed price which includes an amount of compensation
to the underwriter. On occasion, securities may be

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 43
<PAGE> 46

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

purchased directly from an issuer, in which case no commissions are paid and no
discounts obtained. Broker/dealers may receive commissions on futures, currency
and options transactions. Brokerage transactions for the Funds may be executed
through any of the BIL GT Group affiliates.

FUND EXPENSES. Each Fund pays all of its respective expenses not assumed by
G.T. Capital and other agents. These expenses include, in addition to the
advisory and brokerage fees discussed above, legal and audit expenses, custodian
and transfer agent fees, Trustees fees, organizational fees, fidelity bond and
other insurance premiums, taxes, extraordinary expenses and expenses of reports
and prospectuses sent to existing investors. Certain of these expenses, such as
custodial fees and brokerage fees, generally are higher for non-U.S. securities.

G.T. Capital has undertaken to limit the total operating expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary items) of each of the
New Pacific Fund, the Europe Fund, the International Fund, the Emerging Markets
Fund, the Latin America Fund, the Infrastructure Fund, the Natural Resources
Fund, the Telecommunications Fund, and the Growth & Income Fund to 1.25% of
their respective 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 America Fund, the Strategic Income
Fund, the Global Government Income Fund, and the U.S. Government Income 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.

During the fiscal period ended December 31, 1994, G.T. Capital in its sole
discretion had undertaken to waive or reimburse the total operating expenses
(exclusive of brokerage commissions, interest, taxes and extraordinary items) of
each of the Emerging Markets Fund and the International Fund until the total
assets of each Fund reach $2 million; thereafter G.T. Capital had undertaken to
limit such operating expenses (exclusive of brokerage commissions, interest,
taxes and extraordinary items) to an annual rate of 1.25% of each Fund's average
daily net assets.
During the fiscal period January 31, 1995 through December 31, 1995, G.T.
Capital in its sole discretion has undertaken to waive or reimburse the total
operating expenses (exclusive of brokerage commissions, interest, taxes and
extraordinary items) of each of the Infrastructure Fund and the Natural
Resources Fund until the total assets of each Fund reach $2 million; thereafter
G.T. Capital has undertaken to limit such operating expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary items) to an annual
rate of 1.25% of each Fund's average daily 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 each Company
and joint expenses of the Funds (see "Other Information") are allocated among
the Funds on a basis deemed fair and equitable.

- --------------------------------------------------------------------------------

OTHER INFORMATION
- --------------------------------------------------------------------------------

DIVERSIFICATION STANDARDS. Each of the following Funds is classified as a
"diversified" investment company under the 1940 Act: the New Pacific Fund, the
Europe Fund, the America Fund, the Infrastructure Fund, the Natural Resources
Fund, the Telecommunications Fund, the U.S. Government Income Fund, the
International Fund, the Emerging Markets Fund, and the Money Market Fund. This
means that with respect to 75% of each Fund's total assets, no more than 5% will
be invested in the securities of any one issuer, and each Fund will purchase no
more than 10% of the voting securities of any one issuer.

Each of the following Funds is classified as a "non-diversified" investment
company under the 1940 Act: the Latin America Fund, the Growth & Income Fund,
the Strategic Income Fund and the Global Government Income Fund. Each such Fund,
however, intends to continue to qualify as a

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 44
<PAGE> 47

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

regulated investment company for federal income tax purposes. This means, in
general, that more than 5% of the Fund's total assets may be invested in
securities of one issuer but only if, at the close of each quarter of the Fund's
taxable year, the aggregate amount of such holdings does not exceed 50% of the
value of its total assets and no more than 25% of the value of its total assets
is invested in the securities of a single issuer.

Because each such Fund is permitted to invest a greater proportion of its assets
in the securities of a smaller number of issuers, each such Fund may be subject
to greater investment and credit risk with respect to its portfolio than a Fund
that is more broadly diversified.

ORGANIZATION. Each of G.T. Global Variable Investment Trust and G.T. Global
Variable Investment Series is organized as a Massachusetts business trust and is
registered with the SEC as an open-end management investment company. Each
Company and each Fund of each Company, except the Telecommunications Fund, the
Emerging Markets Fund, the International Fund, the Infrastructure Fund and the
Natural Resources Fund, commenced operations on February 10, 1993. The
Telecommunications Fund commenced operations on October 18, 1993. The Emerging
Markets Fund and the International Fund commenced operations on July 5, 1994.
The Infrastructure Fund and the Natural Resources Fund commenced operations on
January 31, 1995. The fiscal year end for each Company is December 31.

From time to time, each Company's Board of Trustees may, in its discretion,
establish additional series and issue shares of additional series of the
Company's shares of beneficial interest. Shares of the Funds are entitled to one
vote per share (with proportional voting for fractional shares). Shareholders
have no preemptive or conversion rights.

On any matter submitted to a vote of shareholders, shares of each Fund will be
voted by that Fund's shareholders individually when the matter affects the
specific interest of that Fund only. The shares of all Funds of a Company will
be voted in the aggregate on other matters, such as the election of Trustees and
ratification of that Company's Board of Trustees' selection of the Company's
independent accountants. In accordance with current law, the Funds anticipate
that when a Participating Insurance Company issues a VA Contract that invests in
a Company, VA Contract holders will be asked for instructions on how to vote,
and shares will be voted by a Participating Insurance Company in accordance with
the voting instructions received. For further information on voting rights, see
the VA Contract prospectus.

The Companies normally will not hold annual meetings of shareholders, except as
required under the 1940 Act. Either Company would be required to hold a
shareholders meeting in the event that at any time less than a majority of that
Company's Trustees holding office had been elected by shareholders. Trustees
shall continue to hold office until their successors are elected and have
qualified. Fund shares do not have cumulative voting rights, which means that
the holders of a majority of the shares of all of a Company's Funds in the
aggregate voting for the election of Trustees can elect all the Trustees. A
Trustee may be removed upon a majority vote of the shareholders qualified to
vote in the election. Shareholders holding 10% of a Company's outstanding voting
shares may call a meeting of shareholders for the purpose of voting upon the
question of removal of any Trustee or for any other purpose. The 1940 Act
requires each Company to assist shareholders in calling such a meeting.

Pursuant to each Company's Declaration of Trust, each Company may issue an
unlimited number of shares for each of its Funds. Each share of a Fund
represents an interest in that Fund only, has no par value, represents an equal
proportionate interest in the Fund with other shares of the Fund and is entitled
to such dividends and other distributions out of the income earned and gain
realized on the assets belonging to the Fund as may be declared by the Board of
Trustees.

Effective July 5, 1994, the name of "G.T. Global: Variable Pacific Fund" was
changed to "G.T. Global: Variable New Pacific Fund" and its investment policy
was revised by the Board of Trustees to remove Japan from the Fund's Primary
Investment Area.

Currently, owners of VA Contracts issued by the Participating Insurance
Companies for which shares of one or more Funds are the investment vehicle will
receive from such Participating Insurance Company unaudited semi-annual
financial statements and audited year-end financial statements certified by the
Fund's independent public auditors. Each report will

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 45
<PAGE> 48

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

show the investments owned by the Fund and the market values thereof as
determined by the Trustees and will provide other information about the Fund and
its operations.

PERFORMANCE INFORMATION. The Funds, from time to time, may include information
on their investment results and/or comparisons of their investment results to
various unmanaged indices or results of other mutual funds or groups of mutual
funds whose shares are offered to insurance company separate accounts, in
advertisements, sales literature or reports furnished to present or
prospective shareholders.

In such materials, each Fund may quote its average annual total return
("Standardized Return"). Standardized Return shows percentage rates reflecting
the average annual change in the value of an assumed investment in the Fund at
the end of a one-year period and at the end of five-and ten-year periods. If a
one-, five-and/or ten-year period has not yet elapsed, data will be provided as
of the end of a shorter period corresponding to the life of the Fund.
Standardized Return assumes the reinvestment of all dividends and other
distributions at net asset value on the reinvestment date as established by the
Board of Trustees.

In addition, in order to more completely represent each Fund's performance or
more accurately compare such performance to other measures of investment return,
each Fund also may include in advertisements, sales literature and shareholder
reports other total return performance data ("Non-Standardized Return").
Non-Standardized Return reflects percentage rates of return encompassing all
elements of return (i.e., income and capital appreciation or depreciation); it
assumes reinvestment of all dividends and other distributions. Non-Standardized
Return may be quoted for the same or different periods as those for which
Standardized Return is quoted; it may consist of an aggregate or average annual
percentage rate of return, actual year-by-year rates or any combination thereof.

The Strategic Income Fund, the Global Government Income Fund and the U.S.
Government Income Fund also may refer in advertising and promotional materials
to their respective yields, which will fluctuate over time. A Fund's yield shows
the rate of income that it earns on its investments, expressed as a percentage
of the public offering price of its shares. A Fund calculates yield by
determining the interest income it earned from its portfolio investments for a
specified thirty-day period (net of expenses), dividing such income by the
average number of shares outstanding, and expressing the result as an annualized
percentage based on the public offering price at the end of that thirty-day
period. Yield accounting methods differ from the methods used for other
accounting purposes; accordingly, a Fund's yield may not equal the dividend
income actually paid to investors or the income reported in the Fund's financial
statements.

From time to time the Money Market Fund may advertise its "yield" and "effective
yield" in advertisements or promotional materials. Both yield figures are based
on historical earnings and are not intended to indicate future performance. It
can be expected that these yields will fluctuate substantially. The "yield" of
the Money Market Fund refers to the income generated by an investment in the
Fund over a seven-day period (which period will be stated in the advertisement).
This income is then "annualized." That is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The "effective yield" is
calculated similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of this assumed
reinvestment. The Statement of Additional Information describes the methods used
to calculate the Money Market Fund's yield and effective yield.

In addition to "yield" and "effective yield," advertisements or promotional
materials also may include other performance data of the Money Market Fund which
may consist of (1) the actual return or total income (including realized net
short-term capital gain, if any) generated by a hypothetical investment in the
Fund year-by-year since the commencement of the Fund's operations, (2) the
compounded return or total income generated by a hypothetical investment in the
Fund year by year for the same period, assuming reinvestment of all dividends
and any other distributions, and (3) the cumulative return (or overall change in
account value) of a hypothetical investment in the Fund year by year

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 46
<PAGE> 49

- --------------------------------------------------------------------------------
------------------------------------------------
G.T. GLOBAL VARIABLE INVESTMENT FUNDS

over the same period, also assuming reinvestment of all dividends and any other
distributions.

Each Fund's performance data will reflect past performance and will not
necessarily be indicative of future results. The Fund's investment results will
vary from time to time depending upon market conditions, the composition of its
portfolio and its operating expenses. Yield and performance information of any
Fund will not be compared with such information for funds that offer their
shares directly to the public, because Fund data do not reflect charges imposed
by a Participating Insurance Company on the VA Contracts. The effective yield
and total return for a Fund should be distinguished from the rate of return of a
corresponding division of a separate account of such Participating Insurance
Company, which rate will reflect the deduction of additional charges, including
mortality and expense risk charges, and will therefore be lower. Accordingly,
performance figures for a Fund will only be advertised if comparable performance
figures for the corresponding division of the separate account are included in
the advertisement. VA Contract holders should consult their Participating
Insurance Company's VA Contract prospectus for further information. Each Fund's
results also should be considered relative to the risks associated with its
investment objectives and policies.

Calculations of a Fund's yield or performance information may reflect any
undertaking that may be in effect. See "Management" and "Investment Results" in
the Statement of Additional Information.

Each Fund's annual report contains additional information with respect to its
performance. The annual report is available to investors upon request and free
of charge.

TRANSFER AGENT. Reporting and general transfer agent functions for the Funds
and servicing of the Separate Accounts are performed by G.T. Global Investor
Services, Inc., an affiliate of G.T. Capital and a subsidiary of BIL GT Group.
G.T. Global Investor Services, Inc. maintains its offices at 50 California
Street, San Francisco, California 94111.

CUSTODIAN AND ACCOUNTING AGENT. State Street Bank and Trust Company, 225
Franklin Street, Boston, Massachusetts 02110, is custodian of each Fund's assets
and serves as each Fund's accounting agent.

COUNSEL. The law firm of Kirkpatrick & Lockhart, 1800 M Street, N.W.,
Washington, D.C. 20036-5891, acts as counsel to the Companies. Kirkpatrick &
Lockhart also acts as counsel to G.T. Capital, and G.T. Global Financial
Services, Inc. in connection with other matters.

INDEPENDENT ACCOUNTANTS. The Companies' and the Funds' independent accountants
are Coopers & Lybrand L.L.P., One Post Office Square, Boston Massachusetts
02109. Coopers & Lybrand L.L.P. conducts an annual audit of the Funds, assists
in the preparation of the Funds' federal and state income tax returns and
consults with the Companies and the Funds as to matters of accounting,
regulatory filings, and federal and state income taxation.

- --------------------------------------------------------------------------------

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND IN THE FUNDS'
OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFER OF THE FUNDS' SHARES,
AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM, SUCH
OFFERING MAY NOT LAWFULLY BE MADE.

- --------------------------------------------------------------------------------
---------------------

Prospectus Page 47