<PAGE> 1
A VARIABLE ANNUITY
ISSUED BY
GENERAL AMERICAN
LIFE INSURANCE
COMPANY
[COVER PHOTO GOES HERE]
GT GLOBAL
ALLOCATOR
ANNUAL REPORT
December 31, 1995
[G.T. LOGO]
<PAGE> 2
G.T. GLOBAL
ALLOCATOR
TABLE OF CONTENTS
A Message from the Presidents
Reports on the Funds...........1
Divisions'
Financial Statements.........D-1
Funds'
Financial Statements.........F-1
<PAGE> 3
Dear GT Global Allocator Contract Owners, February 21, 1996
GT Global is pleased to present the 1995 Annual Report for the GT Global
Allocator, a variable annuity contract issued by General American Life
Insurance Co., for the period ended December 31, 1995.
During 1995, we witnessed a marked divergence in performance between developed
and emerging stock markets. Spurred on by low inflation, lower bond yields, and
higher productivity, many developed-country stock markets reached new highs.
These countries' stock markets, in general, enjoyed strong gains. Emerging
markets, however, continued to demonstrate weakness. For example, the
devaluation of the Mexican peso on December 20, 1994, called into question the
stability of their economic foundations. Despite some governments' encouraging
adherence to strict monetary and fiscal measures, economies across Latin America
suffered from the effects of low domestic savings rates and the flight of
domestic and foreign capital, resulting in market volatility and weak economic
growth. Nevertheless, we consider their longer-term horizon to be positive as we
believe they will continue their commitment to economic reform.
We also saw global bond markets rally as many central banks cut interest rates
in the face of weak economic growth and strong disinflationary trends. In the
U.S., 1995 marked a near record rally in the bond market.
While market returns may prove uncertain, our commitment to provide you with
product value backed by quality service has not changed. In fact, in 1995 we
worked diligently to improve our product offering and now have a number of
special new features to serve you better. They include:
- Immediate or cumulative withdrawals with no surrender fee*
- Dollar Cost Averaging Program
- Interest Sweep Program
- Pre-authorized Check deduction
- Increased death benefit age from age 75 to 80
- Reset of annual death benefit up to age 80
- Personal Portfolio Rebalancing Program
For complete information about these product features and how to take advantage
of them, please see the GT Global Allocator prospectus or contact your financial
advisor.
Regardless of short-term market changes, we urge you to remember to invest for
the long term, understand your own risk tolerance and work with an investment
professional to plan your portfolio accordingly.
As a final note, GT Global and the Funds' investment advisor, G.T. Capital, have
made some changes. Along with a new logo, G.T. Capital's name has changed, and
GT Global's has a significant addition--"A member of Liechtenstein Global
Trust." These new signatures affirm GT Global and the Fund's investment advisor,
now called LGT Asset Management, as part of Liechtenstein Global Trust, a
worldwide financial services organization entrusted with over $45 billion in
assets for a global clientele.
Thank you for your investment in GT Global Variable Investment Funds. We
appreciate the opportunity to help you meet your investment needs.
DAVID A. MINELLA RICHARD A. LIDDY
President CEO
GT Global, Inc. General American Life Insurance Company
- ---------------
* Certain conditions apply. Withdrawals prior to age 59 1/2 may be subject to a
tax penalty, and taxed at a rate in effect at that time.
1
<PAGE> 4
GT GLOBAL
VARIABLE STRATEGIC INCOME FUND
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 19.50%.
Total return for the J.P. Morgan Global Government Bond Index(1) over the same
period was 19.32%, and 27.54% for the J.P. Morgan EMBI (Brady) Index(2). During
the first half of the year, because of its emerging markets holdings, the Fund's
performance was adversely affected in the aftermath of the Mexican peso crisis.
Moreover, we expected the dollar to recover in early 1995 and therefore employed
foreign currency hedges, as provided for in the prospectus. However, the dollar
did not recover as quickly as anticipated and the Fund suffered accordingly from
being hedged, when the dollar weakened.
In the first three months of 1995, U.S. Treasuries, German Bunds, Japanese
Government Bonds, the deutschemark and the yen benefited from a flight to
quality in the wake of the Mexican devaluation. The Federal Reserve's July
interest rate cut caused a rally in U.S. bonds and prompted European central
banks to follow suit.
While some remnants of the crisis remain, for example, recessions in Mexico and
Argentina, by the end of December 1995, many emerging economies' bond markets
had recovered virtually all the losses suffered as a result of the peso
devaluation.
Looking ahead, as core European economic factors and government policy result in
lower yields, we foresee a potential investor shift to peripheral markets in
search of higher yields. While there is no question emerging markets have been
volatile, we believe they continue to provide considerable value and good growth
potential in light of improving fundamentals, above-average valuation and a
benign global financial environment.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Strategic Income Saloman Br World Government JPM Global Government JPM EMBI
<S> <C> <C> <C> <C>
2/10/93 10,000 10,000 10,000 10,000
10,008 10,209 10,126 10,118
10,078 10,366 10,281 10,646
10,082 10,555 10,498 10,860
10,143 10,622 10,604 11,229
10,521 10,630 10,581 11,622
10,871 10,635 10,611 12,106
11,459 10,950 10,930 12,349
11,502 11,065 11,060 12,511
12,168 11,060 11,041 13,565
11,986 10,979 10,962 13,429
12,755 11,092 11,055 14,249
12,842 11,196 11,144 14,288
11,553 11,073 11,071 13,099
10,506 11,022 11,055 11,601
10,396 11,014 11,068 11,606
10,569 10,923 10,971 12,408
10,447 11,052 11,129 11,409
10,482 11,156 11,218 11,689
10,856 11,127 11,179 12,524
11,053 11,183 11,260 12,647
10,975 11,350 11,440 12,289
10,878 11,207 11,283 12,414
10,575 11,233 11,314 11,588
10,487 11,461 11,552 11,187
10,438 11,756 11,847 10,604
10,579 12,354 12,551 10,304
11,130 12,551 12,784 11,411
11,584 12,901 13,143 12,416
11,615 12,982 13,221 12,657
11,614 13,043 13,252 12,666
11,614 12,681 12,796 12,965
11,884 12,966 13,082 13,411
11,946 13,093 13,180 13,274
12,233 13,239 13,329 13,738
12/31/95 12,637 13,403 13,468 14,779
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers World Government Bond Index and the J.P. Morgan EMBI and
Global Government Bond indices for the same period, using available index data.
It assumes a hypothetical $10,000 initial investment in the Fund and reflects
all Fund expenses but not charges and expenses of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the indices are unmanaged, do not incur expenses and are not available for
investment. Past performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 19.50% 17.86%
Life of Fund* 26.37 21.36
</TABLE>
+The GT Global Variable Strategic Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 11.86% and 17.36% for one year (6% surrender charge) and Life of Fund
(4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
(2) The J.P. Morgan EMBI (Brady) Index is an arithmetic average, weighted by
market value, of Brady bonds from nine emerging bond markets. It includes the
effect of reinvested coupons and is measured in U.S. dollars. The Fund has
changed benchmarks from indices provided by Salomon Brothers to indices provided
by J.P. Morgan. We consider the J.P. Morgan indices a better reflection of the
investment opportunities because they use weightings based on liquidity.
2
<PAGE> 5
GT GLOBAL
VARIABLE GLOBAL GOVERNMENT INCOME FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Global Government Income JPM Global Government Bond Salomon Br World Government Bond
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 10,209 10,126
9,935 10,366 10,281
9,952 10,555 10,498
10,011 10,622 10,604
10,239 10,630 10,581
10,319 10,635 10,611
10,664 10,950 10,930
10,642 11,065 11,060
10,820 11,060 11,041
10,707 10,979 10,962
10,925 11,092 11,055
11,030 11,196 11,144
10,511 11,073 11,071
10,228 11,022 11,055
10,049 11,014 11,068
9,846 10,923 10,971
10,023 11,052 11,129
10,084 11,156 11,218
9,999 11,127 11,179
10,034 11,183 11,260
10,227 11,350 11,440
10,162 11,207 11,283
9,975 11,233 11,314
10,078 11,461 11,552
10,309 11,756 11,847
10,626 12,354 12,551
10,877 12,551 12,784
11,112 12,901 13,143
11,076 12,982 13,221
11,089 13,043 13,252
10,887 12,681 12,796
11,067 12,966 13,082
11,196 13,093 13,180
11,376 13,239 13,329
12/31/95 11,556 13,403 13,468
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers World Government Bond Index and the J.P. Morgan Global
Government Bond Index for the same time period, using available index data. It
assumes a hypothetical $10,000 initial investment in the Fund and reflects all
Fund expenses but not charges and expenses of the separate account. Investors
should note that the Fund is a professionally managed portfolio while the
indices are unmanaged, do not incur expenses and are not available for
investment. Past performance is no guarantee of future results.
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 15.85%,
and total return for the J.P. Morgan Global Government Bond Index(1) over the
same period was 19.32%. The Fund underperformed the index primarily because of
currency movements, particularly by the Japanese yen and, to a lesser degree,
the German mark. We expected the dollar to rebound at the beginning of the year
and therefore underweighted the yen and European currencies accordingly. For a
substantial part of 1995, the Fund was also underweighted in U.S. long bonds and
overweighted in German long bonds. These weightings negatively affected relative
performance because, even though both markets rallied, U.S. bond prices rose
more than Germany's.
The three major bond markets, (the U.S., Germany and Japan) rose strongly in
1995, supporting rallies across other bond markets. Rallies in the major markets
were prompted by their respective central banks cutting interest rates on the
back of weak economic growth and falling inflation.
We expect a benign economic environment (low or falling inflation, slowing or
weak economies and central banks with a bias toward lower rates) in the U.S.,
Japan and Germany to provide the main support for bond markets in 1996. In our
view, European markets in general appear to offer better value. We believe
markets such as Spain and Italy, although historically volatile, have a great
deal of potential if their monetary and fiscal policies remain favorable. The
longer-term outlook for Japanese bonds is deteriorating as Japanese authorities
attempt to reflate the economy by using both fiscal and monetary policies. For
the moment, however, we believe deflation and low short-term rates mean Japanese
bond yields should not rise significantly for a while.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 15.85% 14.26%
Life of Fund* 15.56 11.06
</TABLE>
+The GT Global Variable Global Government Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset
Management had not reimbursed these expenses, the Fund's performance would have
been lower. Please see "Management" in the Fund prospectus for information
about the expense limitation. The performance of the Division reflects the 1.4%
annual charges but not the surrender charge, which starts at 6% and declines to
0%. The cumulative total returns for the Division, which reflect the applicable
surrender charge, would be 8.26% and 7.06% for one year (6% surrender charge)
and Life of Fund (4% surrender charge), respectively.
*The Fund began operations on February 10, 1993.
(1) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested coupons and is measured in U.S. dollars. The
Fund has changed benchmarks from indices provided by Salomon Brothers to indices
provided by J.P. Morgan. We consider the J.P. Morgan indices a better reflection
of the investment opportunities because they use weightings based on liquidity.
3
<PAGE> 6
GT GLOBAL
VARIABLE U.S. GOVERNMENT INCOME FUND
REPORT ON THE FUND
The Fund's total return for the 12 month period ended December 31, 1995, was
14.73%, and total return for the J.P. Morgan U.S. Government Bond Index(1) over
the same period was 17.34%. The Fund's underperformance relative to the index
was primarily due to the Fund's lower average maturity. At the start of 1995, we
believed that the U.S. economy would continue its strong growth and the Fed
would raise rates to contain inflationary pressures. Accordingly, we implemented
a defensive strategy, lowering the average maturity of the Fund. However, as the
economy slowed in the first few months of the year, the bond market rallied,
which meant that longer maturity bonds benefited more than bonds of shorter
maturity. In the second quarter of the year, we extended the maturity of the
Fund's investments and performance more closely approximated the index.
The U.S. economy slowed in 1995 as a result of the increase in short-term
interest rates throughout 1994. As inflation stabilized and inflationary
pressures subsided, the Federal Reserve cut short-term interest rates in July
and again in December 1995. Interest rate expectations have changed considerably
as the economy has slowed. At the start of 1996, the market was expecting
short-term rates to fall below 5.0% by mid-year, compared to its forecast at the
start of 1995, which called for a rise to 8.5%. On the back of market
expectations, long bond yields had fallen from over 8.0% to approximately 6.0%
as of late January 1996.
We perceive the current U.S. economy to be quite weak and inflation to be
stable, leading us to conclude that the Fed will probably continue to cut the
Fed Funds rate. However, we also think today's bond market has already priced in
expected declines in interest rates, meaning a drop in bond yields from current
levels could only occur if the economy continues to weaken and expectations for
short-term interest rates fall to 4.0%. Though we believe interest rates will
fall, the magnitude of their decline may not be more than what is currently
priced into the market. We believe the U.S. economy may well bounce back later
in 1996, as a result of the current easing in monetary policy. Moreover, the
possibility of stronger economic growth in Japan and Europe later in the year,
which could boost U.S. exports, should not be disregarded.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable U.S. Government Income U.S. Government Bond JPM U.S. Government Bond
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 10,193 10,124
9,932 10,228 10,151
9,973 10,313 10,239
9,977 10,289 10,223
10,188 10,499 10,451
10,286 10,550 10,513
10,933 10,765 10,745
10,916 10,810 10,794
10,992 10,845 10,821
10,656 10,743 10,703
10,638 10,790 10,751
10,891 10,926 10,898
10,444 10,710 10,672
10,110 10,500 10,425
9,994 10,418 10,345
9,963 10,412 10,337
9,963 10,397 10,317
10,107 10,568 10,495
10,125 10,581 10,499
9,980 10,456 10,354
9,953 10,449 10,344
9,925 10,418 10,319
9,971 10,477 10,389
10,129 10,660 10,592
10,296 10,884 10,812
10,343 10,956 10,876
10,446 11,090 11,016
10,805 11,502 11,464
10,880 11,594 11,552
10,832 11,563 11,512
10,947 11,686 11,641
11,034 11,790 11,746
11,168 11,956 11,929
11,304 12,134 12,122
12/31/95 11,440 12,294 12,291
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Salomon Brothers and J.P. Morgan U.S. Government Bond indices for the same
period using available index data. It assumes a hypothetical $10,000 initial
investment in the Fund and reflects all Fund expenses but not expenses and
charges of the separate account. Investors should note that the Fund is a
professionally managed portfolio while the indices are unmanaged, do not incur
expenses and are not available for investment. Past performance is no guarantee
of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
-------------------
<S> <C> <C>
One Year 14.73% 13.15%
Life of Fund* 14.40 9.86
</TABLE>
+The GT Global Variable U.S. Government Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 7.15% and 5.86% for one year (6% surrender charge), and Life of Fund
(4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The J.P. Morgan U.S. Government Bond Index is a market capitalization
weighted index of U.S. Treasury issues with remaining maturities of at least one
year. All returns are calculated with reinvested coupons and are expressed in
U.S. dollar terms. The Fund has changed its benchmark from Salomon Brothers
indices to J.P. Morgan indices for consistency within the GT Global Income
Funds.
4
<PAGE> 7
GT GLOBAL
VARIABLE LATIN AMERICA FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
Variable Latin America MSCI EMG Latin America
<S> <C> <C>
2/10/93 10,000 10,000
10,008 9,892
9,983 10,617
10,017 10,112
10,167 10,268
10,017 10,938
10,358 11,256
10,875 12,224
11,192 12,382
12,000 12,832
12,767 13,722
14,733 15,509
17,058 17,941
16,658 17,351
15,708 16,118
14,075 14,901
14,285 15,750
13,731 14,692
14,779 15,971
17,766 18,560
18,688 19,309
18,395 18,359
18,395 17,840
16,080 14,938
13,765 13,231
12,070 11,235
10,820 10,855
12,498 12,469
12,339 12,712
12,630 12,923
13,102 13,377
13,190 13,541
12,817 13,410
11,658 12,301
11,736 12,519
12/31/95 12,198 12,916
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Latin America Index for the same period using
available index data. It assumes a hypothetical $10,000 initial investment in
the Fund and reflects all Fund expenses but not expenses and charges of the
separate account. Investors should note that the Fund is a professionally
managed portfolio while the index is unmanaged, does not incur expenses and is
not available for investment. Past performance is no guarantee of future
results.
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was -24.14%.
Total return for the Morgan Stanley Capital International (MSCI) Emerging
Markets Global Latin America Index(1) over the same period was -13.53%. The
Fund's underperformance relative to the index during the period was due to its
overweighted position in Mexico, underweighted positions in Argentina and
Brazil, and its overweighted position in smaller Latin American companies which
significantly underperformed over the period.
Throughout the region, stock markets fell dramatically in the first two months
of the year. While they recovered strongly thereafter, by the end of 1995, few
had recovered to pre-peso devaluation levels of December 1994. Argentina's stock
market was the only exception among the major markets and the best performer
during 1995, with the Merval Index up 14.1% in dollar terms, despite that
country's ongoing recession. The Brazilian stock market, as measured by the
Bovespa Index, fell 13.9% over the period. Profit margins of many private sector
companies were significantly eroded by rising wages and a weak pricing
environment. On the other hand, Brazilian inflation, at less than 25% last year,
saw its lowest level in more than 20 years, thanks to a strong currency and high
interest rates. Mexican stocks fell by 21% in U.S. dollar terms, largely on the
back of a weaker peso.
The medium-term outlook for stock markets in the region is mixed. Assuming a
continued benign international interest-rate environment, particularly in the
United States, foreign capital inflows could potentially support an ongoing
rally in Latin markets. Because of their exchange rate regimes, Brazil and
Argentina, for example, are very sensitive to changes in U.S. interest rates.
Over the longer term, we continue to believe that, owing to inflation pressures,
these two countries are likely to face the choice between slower growth and
devaluation, neither of which is positive for equities. Mexico, on the other
hand, has already made this choice and, we believe, is likely to see improved
economic performance if confidence can be restored and institutions that promote
domestic savings can be created.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
One Year -24.14% -25.17%
Life of Fund* 21.98 17.18
</TABLE>
+The GT Global Variable Latin America Fund serves as the underlying investment
vehicle for the corresponding Division available in the GT Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be -29.66% and 13.18% for one year (6% surrender charge) and
Life of Fund (4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Emerging Markets Global Latin America Index is an arithmetic
average, weighted by market value, of companies listed in Argentina, Brazil,
Chile, Colombia, Mexico, Peru and Venezuela. The index, measured in U.S.
dollars, has an aggregate market capitalization of $216 billion and includes the
effect of reinvested dividends.
5
<PAGE> 8
GT GLOBAL
VARIABLE GROWTH & INCOME FUND
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 15.49%.
Total return for the Morgan Stanley Capital International (MSCI) World Index(1)
over the same period was 21.32%, while the total return for the J.P. Morgan
Global Government Bond Index(2) was 19.32%. Over the year the Fund maintained a
lower weighting in the U.S. stock market than the MSCI benchmark (approximately
14.9% for the Fund versus 23.90% for the MSCI World Index). Since the U.S. was
the best-performing major stock market for the year, the Fund's performance
suffered accordingly. In addition, we expected the U.S. dollar to recover in
early 1995 and employed foreign currency hedges, as provided for in the
prospectus. The dollar did not recover as quickly as anticipated, and thus the
Fund did not benefit from currency gains when the dollar weakened.
Most major markets have responded positively to the combination of moderating
economic growth and modest inflation. Throughout 1995, the U.S. bond market was
the leading performer among the major markets, as long bond yields declined
below 6.0%, and the U.S. technology sector shot up as well. Elsewhere, the
Japanese Nikkei Index recovered from lows of 14,500 in July 1995 to nearly
20,000 at the end of December, primarily as a result of monetary authorities
reducing short-term interest rates to the historic low level of 0.5%. European
stocks and bonds appreciated over the period with many of their bond markets
outperforming the U.S. at times. Their equities markets, however, continued to
lag as many of their economies remain overregulated and sluggish compared to
the U.S.
The outlook generally remains positive for financial markets. We believe the
current structure of the portfolio, with its emphasis on what we consider
undervalued assets, could potentially begin to deliver more competitive
performance. Furthermore, the Fund could benefit if the U.S. market begins to
lag the rest of the world after several years of strong gains.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Growth & Income Fund MSCI World Index Salomon Bros. World
Govt Bond Index JPM Global Government Bond Index
<S> <C> <C> <C> <C>
2/10/93 10,000 10,000 10,000 10,000
10,008 10,102 10,126 10,209
10,228 10,689 10,281 10,366
10,261 11,187 10,498 10,555
10,361 11,447 10,604 10,622
10,437 11,352 10,581 10,630
10,673 11,588 10,611 10,635
11,145 12,121 10,930 10,950
11,155 11,899 11,060 11,065
11,460 12,229 11,041 11,060
11,333 11,539 10,962 10,979
11,775 12,106 11,055 11,092
12,135 12,906 11,144 11,196
11,639 12,741 11,071 11,073
11,312 12,194 11,055 11,022
11,467 12,573 11,068 11,014
11,355 12,608 10,971 10,923
11,278 12,575 11,129 11,052
11,573 12,816 11,218 11,156
11,721 13,204 11,179 11,127
11,455 12,860 11,260 11,183
11,796 13,228 11,440 11,350
11,394 12,656 11,283 11,207
11,439 12,781 11,314 11,233
11,360 12,592 11,552 11,461
11,580 12,778 11,847 11,756
11,590 13,396 12,551 12,354
11,821 13,866 12,784 12,551
12,114 13,987 13,143 12,901
12,059 13,986 13,221 12,982
12,417 14,688 13,252 13,043
12,166 14,363 12,796 12,681
12,471 14,785 13,082 12,966
12,597 14,555 13,180 13,093
12,813 15,063 13,329 13,239
12/31/95 13,211 15,506 13,468 13,403
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index and the Salomon Brothers World Government Bond Index for
the same time period using available index data. It assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses but not
expenses and changes of the separate account. Investors should note that the
Fund is a professionally managed portfolio while the indices are unmanaged, do
not incur expenses and are not available for investment. Past performance is no
guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 15.49% 13.89%
Life of Fund* 32.11 26.90
</TABLE>
+The GT Global Variable Growth & Income Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the
expense limitation. The performance of the Division reflects the 1.4% annual
charges but not the surrender charge, which starts at 6% and declines to 0%. The
cumulative total returns for the Division, which reflect the applicable
surrender charge, would be 7.89% and 22.90% for one year (6% surrender charge)
and Life of Fund (4% surrender charge), respectively.
*The Fund began operations on February 10, 1993.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,579 securities listed on major world stock exchanges -- the
U.S., Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
(2) The J.P. Morgan Global Government Bond Index is an arithmetic average,
weighted by market value, of government bonds from 13 major bond markets. It
includes the effect of reinvested dividends and is measured in U.S. dollars. The
Fund has changed benchmarks from indices provided by Salomon Brothers to indices
provided by J.P. Morgan. We consider the J.P. Morgan indices a better reflection
of the investment opportunities because they use weightings based on liquidity.
6
<PAGE> 9
GT GLOBAL
VARIABLE TELECOMMUNICATIONS FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Telecommunications Fund MSCI Telecommunications Index
MSCI World Index
<S> <C> <C> <C>
10/18/93 10,000 10,000 10,000
10,008 9,995 10,020
9,942 9,469 9,455
10,892 9,640 9,919
11,358 10,078 10,575
11,033 9,421 10,440
10,167 9,138 9,991
10,402 9,449 10,302
10,485 9,517 10,330
10,226 9,485 10,303
10,928 9,783 10,501
11,662 10,105 10,819
11,562 9,830 10,537
11,871 10,062 10,838
11,370 9,390 10,370
11,670 9,382 10,473
11,529 9,610 10,317
11,337 9,622 10,470
11,345 9,829 10,977
11,662 9,975 11,361
12,422 10,147 11,461
13,422 10,334 11,459
14,552 10,600 12,035
14,920 10,863 11,769
15,399 11,533 12,114
14,166 11,420 11,926
14,423 11,519 12,342
12/31/95 14,432 11,903 12,705
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World and Telecommunications indices for the same period, using
available index data. It assumes a hypothetical $10,000 initial investment in
the Fund and reflects all Fund expenses but not charges and expenses of the
separate account. Investors should note that the Fund is a professionally
managed portfolio while the indices are unmanaged, do not incur expenses and are
not available for investment. Past performance is no guarantee of future
results.
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 23.66%.
Total return for the Morgan Stanley Capital International (MSCI) World Index(1)
over the investment period was 21.32% and the MSCI Telecommunications Index(2)
posted a return of 26.88%. The Fund underperformed the more relevant
Telecommunications Index primarily as a result of the Fund's higher weighting in
emerging market stocks.
The year saw markedly different performance between the service and equipment
sides of the telecommunications coin. Telecommunications service companies were
weak in the emerging markets and flat at best in most of the developed world.
U.S. service stocks did reasonably well as investors sought dividend returns in
an environment of declining interest rates. In contrast, equipment manufacturers
were having a banner year. Among the strongest equipment areas were data
networking, cellular infrastructure and handset and digital switch-producing
companies, some of which doubled or even tripled in value.
Although uncertainties remain, we anticipate an increase in global privatization
and expect to see substantial regulatory changes in the European and U.S.
telecom sectors, with higher usage, lower prices and ultimately higher
valuations for companies that learn to compete. In the past we have discussed
our optimism about the impact of new technologies on the way people around the
world will live their lives. We strongly believe that many equipment companies'
sales will continue to benefit from increased services competition and
infrastructure development around the world, and new fast-growing markets such
as the Internet and wireless communications. Finally, while the potential for
surprises cannot be ruled out, we believe the most attractive long-term
investment opportunity remains the considerable potential for providing services
to those parts of the world that have inadequate telephone infrastructure,
primarily Asia, Latin America and eastern Europe.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 23.66% 21.95%
Life of Fund* 44.32 39.94
</TABLE>
+The GT Global Variable Telecommunications Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 15.95% for one year (6% surrender charge), and 35.94% for the Life of
Fund (4% surrender charge).
* The Fund began operations on October 18, 1993.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,579 securities listed on major world stock exchanges -- the
U.S., Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
(2) The MSCI Telecommunications Index is an arithmetic average, weighted by
market value, of the performance of 28 securities listed on 22 major stock
exchanges. It includes the effect of reinvested dividends and is measured in
U.S. dollars.
7
<PAGE> 10
GT GLOBAL
VARIABLE EMERGING MARKETS FUND
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was -7.54%.
Total return for the Morgan Stanley Capital International (MSCI) Emerging
Markets Global Index(1) over the same period was -9.20%. In an environment where
the majority of emerging markets suffered declines, the Fund outperformed the
index because of the Fund's country diversification; individual country
weightings were kept relatively low. At the same time, by focusing on individual
stock selection, the Fund had relatively high individual stock weightings.
The Fund increased its Asian exposure during the second half of the year as
declining economic growth throughout Latin America suggested earnings growth
would also be poor. Although several Asian countries maintained interest rates
at a relatively high level, their positive earnings outlook made them more
attractive.
In an effort to reduce portfolio risk, our strategy has continued to be one of
country diversification, paying particular attention to countries that are not
highly correlated with the U.S. stock market, combined with fairly large
positions in individual stocks. This means in effect, that we have maintained a
defensive strategy in country selection and a more aggressive stance in stock
selection.
As we wrote in the Fund's June 1995 Semiannual Report, the environment of low
inflation globally over the first half of the year, favorable for many of the
emerging markets, led to lower interest rates. Interest rates continued to trend
downward over the second half, and we anticipate further cuts in 1996. Although
Fund strategies are always subject to change, if this remains the case, we
expect to remain close to fully invested.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Emerging Markets Fund MSCI Emerging Markets Global Index
<S> <C> <C>
07/05/94 10,000 10,000
10,025 10,552
10,408 11,636
11,358 11,952
11,400 11,661
10,917 11,115
10,012 10,535
9,095 9,381
8,337 9,214
8,135 9,343
8,867 9,535
9,406 9,870
9,398 9,846
9,886 9,995
9,381 9,664
9,356 9,771
9,103 9,446
8,724 9,210
12/31/95 9,257 9,566
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Emerging Markets Global Index for the same period using available index
data. It assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses but not charges and expenses of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the index is unmanaged, does not incur expenses and is not available for
investment. Past performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year -7.54% -8.83%
Life of Fund* -7.43 -9.33
</TABLE>
+The GT Global Variable Emerging Markets Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be -14.30% for one year (6% surrender charge) and -13.87% for the Life of
Fund (4% surrender charge).
* The Fund began operations on July 5, 1994.
(1) The MSCI Emerging Markets Global Index is an arithmetic average, weighted by
market value, of the performance of securities listed on 23 emerging market
stock exchanges. The index, measured in U.S. dollars, has an aggregate market
capitalization of $893 billion and includes the effect of reinvested dividends.
8
<PAGE> 11
GT GLOBAL
VARIABLE INFRASTRUCTURE FUND
REPORT ON THE FUND
The Fund's total return since inception on January 31, 1995, was 10.58%, and
total return for the Morgan Stanley Capital International (MSCI) World Index(1)
over the same period was 23.14%. Over the 11 months, the Fund maintained a
weighting of 30% to 45% in emerging market stocks, which fell substantially in
value in the aftermath of this December 1994 Mexican peso devaluation, compared
to less than a 5% index weighting for this area. It is also important to note
that the index is designed to represent the performance of all world markets and
does not reflect the Fund's concentration in the infrastructure industry.
Traditionally, given the importance of infrastructure, the prevailing view has
been that the state must play a dominant role in building and managing
infrastructure systems. Recently, however, we have seen that private companies
can often provide good access to capital and better management skills to some of
these projects, including, for instance, the ongoing privatization of the
Canadian National Railroad. This project reflects the efforts of the Canadian
authorities to increase the efficiency of their transportation systems.
Similarly Mexico, having auctioned off several seaports to the private sector
this year, has announced plans to privatize its railways in 1996. In addition to
these examples of privatization, the controlling stake in SPT, the Czech
telecommunications company, has been sold to Dutch and Swiss telephone
companies. Finally, in Indonesia, under an innovative scheme, major global
telecommunications companies have agreed to make investments in the nation's
telephone network in return for a share of the revenues.(2)
We view infrastructure as critical to economic development. However, the ebb and
flow of political sensitivities in various countries will continue to be a
factor that could slow infrastructure development in some regions. On the other
hand, since many of these countries do not have enough internal resources to
make the investments they desire, we believe there will be a strong need to
attract foreign capital.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Infrastructure Fund MSCI World Index
<S> <C> <C>
1/31/95 10,000 10,000
9,942 10,148
9,967 10,639
10,467 11,012
10,742 11,108
11,025 11,107
11,550 11,665
11,250 11,407
11,225 11,741
10,700 11,559
10,900 11,962
12/31/95 11,058 12,314
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index for the same period using available index data. It assumes
a hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
Life of Fund* 10.58% 9.18%
</TABLE>
+The GT Global Variable Infrastructure Fund serves as the underlying investment
vehicle for the corresponding Division available in the GT Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed all Fund expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be 3.18% for Life of Fund (6% surrender charge).
* The Fund began operations on January 31, 1995.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,579 securities listed on the major world stock
exchanges -- the U.S., Europe, Canada, Australia, New Zealand and the Far East.
It includes the effect of reinvested dividends and is measured in U.S. dollars.
(2) Of course, there can be no assurance that the Fund will participate in or
benefit from the projects/privatizations mentioned in this report.
9
<PAGE> 12
GT GLOBAL
VARIABLE NATURAL RESOURCES FUND
REPORT ON THE FUND
The Fund's total return since inception on January 31, 1995, was 22.20%. During
the same period the Morgan Stanley Capital International (MSCI) World Index(1)
returned 23.14%. It is important to note that the index is designed to represent
the performance of all world markets and does not reflect the Fund's
concentration in natural resources.
World economic growth declined modestly during 1995, due primarily to a moderate
decline in growth in the United States. In the latter half of 1995, the United
States, Germany and Japan reduced interest rates, which we expect will spur an
increase in economic activity over the long run. Growth in the Asian regional
economies continued to accelerate, representing a significant proportion of
global demand for natural resources. While profits in forest products,
chemicals, mining and steel industries increased substantially, investors were
unwilling to pay for them, fearing they might be peak cyclical earnings. Energy
stocks increased, not because of higher oil prices but, rather, because they are
considered defensive industries, which have generally provided more stable
returns.
We anticipate a modest outlook for world growth, making commodity selection
important in 1996. As fundamentals, such as increasing demand, begin to reassert
themselves, we expect many metals prices to resume their upward trend. We
continue to expect companies involved in forest products (other than lumber) and
chemicals to generate strong cash flows over the next few years, primarily as a
result of high prices. While some companies need to reduce debt, others are
looking to expand their operations to maintain growth. Accordingly, we believe
share buybacks and takeover activity should also continue throughout 1996.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Natural Resources Fund MSCI World Index
<S> <C> <C>
1/31/95 10,000 10,000
10,050 10,148
10,375 10,639
10,683 11,012
10,750 11,108
11,067 11,107
11,867 11,665
11,717 11,407
11,650 11,741
11,358 11,559
11,767 11,962
12/31/95 12,220 12,314
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index for the same period using available index data. It assumes
a hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
------------------
<S> <C> <C>
Life of Fund* 22.20% 20.58%
</TABLE>
+The GT Global Variable Natural Resources Fund serves as the underlying
investment vehicle for the corresponding Division available in the GT Global
Allocator variable annuity contract issued by General American Life Insurance
Co. During the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total return for the Division, which reflects the applicable surrender charge,
would be 14.58% for Life of Fund (6% surrender charge).
* The Fund began operations on January 31, 1995.
(1) The MSCI World Index is an arithmetic average, weighted by market value, of
the performance of 1,579 securities listed on major world stock exchanges -- the
U.S., Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
10
<PAGE> 13
GT GLOBAL
VARIABLE AMERICA FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable America Fund S&P Midcap 400 Index Russell 2000 Index
<S> <C> <C> <C>
2/10/93 10,000 10,000 10,000
10,008 9,910 9,852
9,908 10,252 10,171
9,525 9,984 9,891
10,150 10,438 10,329
9,817 10,491 10,393
9,992 10,470 10,537
10,308 10,903 10,992
10,417 11,018 11,302
11,108 11,054 11,593
11,225 10,809 11,215
11,467 11,311 11,598
11,650 11,574 11,962
12,033 11,410 11,918
12,275 10,881 11,291
12,502 10,962 11,358
12,675 10,859 11,230
12,666 10,485 10,851
12,640 10,840 11,029
13,365 11,407 11,644
13,485 11,194 11,604
13,511 11,317 11,557
13,339 10,806 11,090
13,632 10,905 11,387
13,761 11,019 11,243
14,442 11,597 11,711
14,986 11,798 11,912
15,606 12,035 12,177
16,003 12,325 12,386
17,028 12,827 13,029
17,968 13,496 13,779
18,135 13,746 14,064
18,222 14,079 14,315
17,555 13,717 13,675
18,012 14,316 14,250
12/31/95 17,090 14,280 14,626
</TABLE>
The chart above shows the performance of the Fund since inception compared to
Standard & Poor's Midcap 400 Index and the Russell 2000 Index for approximately
the same period, using available index data. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Investors should note that the Fund is a
professionally managed portfolio while the indices are unmanaged, do not incur
expenses and are not available for investment. Past performance is no guarantee
of future results.
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 25.37%.
Total return of the Standard & Poor's Midcap 400 Index(1) over the same period
was 30.94%, while the total return for the Russell 2000 Index(2) was 37.58%. The
Fund's underperformance relative to the indices resulted largely from an
increase in the Fund's allocation of technology stocks in the fourth quarter of
1995.
Overall, the market performed well in 1995 due to large gains across many
different market sectors. Although earnings gains were strong during the year,
most of the year's gains were attributable to the large decline in long-term
interest rates and the prospects for continued low inflation. With such
prominent macroeconomic trends in place, in the second half of the year the
market exhibited elements of a "throw money at anything that's moving"
mentality, with many of the year's best performers being companies that were
already at very high valuations.
Following the large gains of 1995, there are many questions about what to expect
in 1996. We do not believe the market is at excessive valuation levels, given
the environment of low interest rates and low inflation. Consequently, we are
not overly concerned by its all-time high level. More worrisome is the potential
for the economy to be more sluggish in 1996 than is generally expected. We
anticipate that a combination of high consumer debt levels, slowing or no growth
from our major trading partners, and the continued confusion over the federal
budget in Washington, may have a depressing impact on overall growth in 1996.
Such an environment, however, is not necessarily bad for growth stock investing,
as the more dominant companies can often continue to grow through such a
sluggish period.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 25.37% 23.63%
Life of Fund 70.90 64.09
</TABLE>
+The GT Global Variable America Fund serves as the underlying investment vehicle
for the corresponding Division available in the GT Global Allocator variable
annuity contract issued by General American Life Insurance Co. During the
period, LGT Asset Management, the Fund's investment manager and administrator,
reimbursed a portion of the Fund's expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual annuity
charges but not the surrender charge, which starts at 6% and declines to 0%. The
cumulative total returns for the Division, which reflect the applicable
surrender charge would be 17.63% and 60.09% for one year (6% surrender charge)
and Life of Fund (4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The S&P Midcap 400 Index comprises the market value-weighted average price
of 400 selected common stocks of medium-size domestic companies. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
(2) The Russell 2000 Index comprises 2,000 U.S.-domiciled common stocks designed
to measure small company stock performance. The index represents roughly 10% of
the U.S. stock market, and market capitalization of index companies ranged from
$104 million to $746 million as of June 1995. It includes the effect of
reinvested dividends and is measured in U.S. dollars.
11
<PAGE> 14
GT GLOBAL
VARIABLE NEW PACIFIC FUND
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was -0.21%.
Total return for the Morgan Stanley Capital International (MSCI) Pacific
ex-Japan Index(1) over the same period was 13.4%. The Fund's underperformance
relative to the index was primarily a result of its underweighted positions in
Australia and Hong Kong, which significantly outperformed other regional
markets, and its overemphasis on small stocks, which lagged substantially over
the period.
In the early part of the year, cautious sentiment extending from 1994's bear
market was compounded by the Mexican crisis, leading to a widespread selloff
across all emerging markets. While it did not take long for investors to realize
that economic conditions in Asian countries are considerably different from
those in Mexico, most of the ASEAN economies displayed features of late-cycle
overheating, including rampant domestic consumption, strong import of capital
goods and deteriorating current account balances. Such macro concerns are also
why ASEAN markets have lagged Hong Kong, which was the best-performing market in
the region in 1995.
We believe that falling interest rates in the U.S. will continue to drive
Southeast Asian markets and, most importantly, in view of Wall Street's
spectacular performance over the past year, the outlook for fund flows into the
region is favorable. Investors may well decide the U.S. market has peaked and
begin looking elsewhere. Most Asian economies, in our opinion, should continue
to show reasonable growth and healthy corporate earnings prospects. Some ASEAN
countries, however, are likely to be faced with proactive tightening by
authorities during the course of the year. We feel that until investors are
convinced that sufficient steps have been taken to cool those countries'
overheated economies, their performance may continue to lag.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable New Pacific Fund MSCI Pacific ex-Japan Index
<S> <C> <C>
2/10/93 10,000 10,000
10,008 10,540
10,308 10,719
10,833 11,268
11,258 11,700
10,892 11,345
11,308 11,746
11,692 12,633
11,808 12,877
12,425 14,960
11,992 14,513
13,392 17,527
13,425 17,046
12,900 16,216
11,808 14,494
12,174 15,167
12,417 15,668
11,990 14,974
12,425 15,763
13,262 16,822
13,019 16,381
12,960 16,645
11,940 15,311
11,722 15,075
10,526 13,774
10,818 15,061
10,869 15,219
11,028 15,421
11,638 16,468
11,655 16,157
12,243 16,824
11,773 16,379
11,714 16,590
11,319 16,298
11,134 16,443
12/31/95 11,697 17,090
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Pacific ex-Japan Index for the same period, using available index data.
It assumes a hypothetical $10,000 initial investment in the Fund and reflects
all Fund expenses but not charges and expenses of the separate account.
Investors should note that the Fund is a professionally managed portfolio while
the index is unmanaged, does not incur expenses and is not available for
investment. Past performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year -0.21% -1.60%
Life of Fund* 16.97 12.35
</TABLE>
+The GT Global Variable New Pacific Fund serves as the underlying investment
vehicle for the corresponding Division available in the GT Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the
expense limitation. The performance of the Division reflects the 1.4% annual
charges but not the surrender charge, which starts at 6% and declines to 1%. The
cumulative total returns of the Division, which reflect the applicable surrender
charge, would be -7.50% and 8.35% for one year (6% surrender charge), and Life
of Fund (4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Pacific ex-Japan Index is an arithmetic average total return,
weighted by market value, of the performance of 204 securities listed on five
major Pacific Rim stock exchanges (Australia, Hong Kong, Malaysia, New Zealand
and Singapore). It includes the effect of reinvested dividends and is measured
in U.S. dollars.
12
<PAGE> 15
GT GLOBAL
VARIABLE EUROPE FUND
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable Europe Fund MSCI Europe
<S> <C> <C>
2/10/93 10,000 10,000
10,008 10,164
10,133 10,690
10,525 10,930
10,858 11,051
10,842 10,893
11,183 10,934
11,875 11,897
11,958 11,864
12,400 12,362
12,075 12,099
12,775 13,011
13,708 13,677
13,158 13,196
12,758 12,826
13,083 13,361
12,557 12,798
12,399 12,667
12,950 13,335
13,225 13,763
12,891 13,221
13,292 13,802
12,674 13,277
12,699 13,357
12,457 13,257
12,290 13,562
11,907 14,197
12,466 14,656
12,783 14,961
13,033 15,107
13,598 15,900
13,362 15,291
13,842 15,758
13,673 15,689
13,699 15,806
12/31/95 13,926 16,313
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Europe Index for the same period using available index data. It assumes
a hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was 9.66%.
Total return for the Morgan Stanley Capital International (MSCI) Europe Index(1)
over the same period was 22.1%. The Fund's underperformance relative to the
index was primarily due to the unexpected weakness of the U.S. dollar. In
anticipation of a rebound in the dollar, the Fund employed foreign currency
hedges, as provided for in the prospectus. However, the dollar did not recover
as quickly as anticipated and the Fund suffered accordingly. Moreover, we
underestimated the flight to defensive earnings (companies which have generally
provided more stable returns) and were underweighted in these types of companies
relative to our other holdings. This limited our participation in the powerful
liquidity rally that resulted in Switzerland being the best-performing market in
U.S. dollar terms in 1995. Finally, the Fund's performance was undermined by its
bias toward telecommunication companies in the latter part of the year.
In 1995, European growth and inflation were lower than generally expected,
providing support to financial markets through interest rate cuts. French bank
rates reached their lowest level in 23 years, while the Swiss National Bank
lowered its intervention rate to 1.5%. Against this background, companies that
could provide visible earnings growth were rewarded. Blue-chip companies tended
to outperform their less liquid peers and economically sensitive shares
reflected disappointing volume growth and downward pressure on commodity prices.
Looking forward, we believe the downward shift in the European yield curve could
provide a favorable environment for bond and equity markets. Although there is
still a risk of earnings disappointments, markets may be driven higher by a
possible drop in both short and long rates. Whereas in 1995 there was a clear
investor preference for defensive earnings, we expect that 1996 has the
potential to include a broader group of winners.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
----------------------
<S> <C> <C>
One Year 9.66% 8.14%
Life of Fund* 39.26 33.76
</TABLE>
+The GT Global Variable Europe Fund serves as the underlying investment vehicle
for the corresponding Division available in the GT Global Allocator variable
annuity contract issued by General American Life Insurance Co. During the
period, LGT Asset Management, the Fund's investment manager and administrator,
reimbursed a portion of Fund expenses. If LGT Asset Management had not
reimbursed these expenses, the Fund's performance would have been lower. Please
see "Management" in the Fund prospectus for information about the expense
limitation. The performance of the Division reflects the 1.4% annual charges but
not the surrender charge, which starts at 6% and declines to 0%. The cumulative
total returns for the Division, which reflect the applicable surrender charge,
would be 2.14% and 29.76% for one year (6% surrender charge) and Life of Fund
(4% surrender charge), respectively.
* The Fund began operations on February 10, 1993.
(1) The MSCI Europe Index is an arithmetic average, weighted by market value, of
the performance of 591 securities listed on 14 major European stock exchanges.
It includes the effect of reinvested dividends and is measured in U.S. dollars.
13
<PAGE> 16
GT GLOBAL
VARIABLE INTERNATIONAL FUND
REPORT ON THE FUND
The Fund's total return for the 12 months ended December 31, 1995, was -1.14%.
Total return for the Morgan Stanley Capital International Europe, Australia, Far
East (MSCI-EAFE) Index(1) over the same period was 11.55%. The Fund's
concentration in smaller, less liquid stocks in Japan, which were badly hit in
the selloff at the beginning of the year, hurt the Fund's performance relative
to the index. Similarly, smaller stocks in Europe performed poorly as investors
sought refuge in larger, safer companies. In addition, we expected the dollar to
recover in early 1995 and employed foreign currency hedges, as provided for in
the prospectus. When the dollar finally strengthened against the yen, it
declined against the European currencies, contributing to a loss on the forward
currency contracts, to the detriment of the Fund relative to the index.
The Mexican financial crisis caused a steep decline in most emerging markets in
the first two months of 1995, as investors reassessed the risks of investing in
these emerging markets in the face of rising U.S. interest rates. From March
onward, it became apparent that the U.S. economy was slowing and that interest
rates could begin to decline; bonds rose accordingly. The improving sentiment in
bond markets spilled over into the stock markets, and a general recovery in
world financial markets occurred during the summer. As 1995 drew to a close,
most developed countries looked forward to lower inflation and low or falling
interest rates. These positives outweighed concerns that slower economic growth
might hurt the prospects for corporate profits. World stock markets, therefore,
ended the year with modest gains in most countries.
Looking ahead, with economic growth slowing and inflation pressures continuing
to abate in most of the industrialized world, we believe central banks are
likely to cut interest rates further. At some stage, we think the improvement in
liquidity may bring about a recovery in economic growth and corporate profits.
This prospect has provided support to stock markets, since we see few investors
who believe there is anything on the horizon to cause longer-term concern.
PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
GT Global Variable International Fund MSCI-EAFE Index
<S> <C> <C>
7/5/94 10,000 10,000
10,025 10,045
10,217 10,285
9,800 9,963
10,083 10,297
9,625 9,805
9,420 9,868
8,817 9,492
8,599 9,467
8,557 10,060
8,792 10,441
8,750 10,319
8,913 10,141
9,374 10,775
9,240 10,367
9,391 10,572
9,081 10,290
9,089 10,579
12/31/95 9,313 11,008
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI EAFE Index for the same period, using available index data. It assumes
a hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not charges and expenses of the separate account. Investors should
note that the Fund is a professionally managed portfolio while the index is
unmanaged, does not incur expenses and is not available for investment. Past
performance is no guarantee of future results.
TOTAL RETURN
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Fund Division+
-------------------
<S> <C> <C>
One Year -1.14% -2.51%
Life of Fund* -6.87 -8.85
</TABLE>
+The GT Global Variable International Fund serves as the underlying investment
vehicle for the corresponding Division available in the GT Global Allocator
variable annuity contract issued by General American Life Insurance Co. During
the period, LGT Asset Management, the Fund's investment manager and
administrator, reimbursed a portion of Fund expenses. If LGT Asset Management
had not reimbursed these expenses, the Fund's performance would have been lower.
Please see "Management" in the Fund prospectus for information about the
expense limitation. The performance of the Division reflects the 1.4% annual
charges but not the surrender charge, which starts at 6% and declines to 0%. The
cumulative total return for the Division, which reflects the applicable
surrender charge, would be -8.36% and -13.41% for one year (6% surrender charge)
and Life of Fund (5% surrender charge), respectively.
* The Fund began operations on July 5, 1994.
(1) The MSCI-EAFE Index is an arithmetic average, weighted by market value, of
the performance of 1,112 securities listed on 20 major stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
14
<PAGE> 17
GT GLOBAL
MONEY MARKET FUND
REPORT ON THE FUND
The GT Global Money Market Fund's investment objective is to maximize current
income consistent with liquidity and conservation of capital.
The Fund's total return for the 12 months ended December 31, 1995, was 5.26%; as
of December 31, 1995, the Fund's SEC seven-day yield was 5.23%. Because it
invests only in short-term debt obligations with remaining maturities of 13
months or less, the Fund's performance generally reflects the level of
short-term interest rates.
In 1995, we witnessed the end of a tightening cycle and a turn toward declining
interest rates as economic growth moderated to sustainable levels and
inflationary expectations declined significantly. Over the 12 months, the
Federal Funds rate fell from 6.00% in February 1995, to 5.50% at the end of
December 1995, confirming market expectations of easing monetary conditions. By
mid-January 1996, the market seemed to indicate that further easing could be
expected in the year if a Federal budget agreement capable of reducing the
fiscal deficit could be reached. However, we believe that current economic
signals are strong enough to indicate a slowdown in the U.S. economy and warrant
further cuts in the Fed Funds rate, regardless of what happens to the budget.
With this in mind, the Fund intends to invest a portion of its holdings in
longer short-term instruments to lock in yields. A large portion of assets,
however, will be held in instruments with remaining maturities under 30 days,
due to the high liquidity requirement of the Fund.
The Fund's strategy remains conservative. We continue to invest in commercial
paper of large issuers, rated in the highest categories by S&P or Moody's, or of
equivalent quality, and U.S. Treasury and Agency obligations.
THE GT GLOBAL ALLOCATOR
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------------
INVESTMENT OBJECTIVE GT GLOBAL VARIABLE INVESTMENT FUNDS
- ---------------------------------------------------------------------------------------------------------
INCOME High current income GT Global Variable Global Govt. Income Fund
Capital appreciation GT Global Variable Strategic Income Fund
GT Global Variable U.S. Govt. Income Fund
- ---------------------------------------------------------------------------------------------------------
GROWTH & INCOME Long-term capital appreciation GT Global Variable Growth & Income Fund
Current income
- ---------------------------------------------------------------------------------------------------------
GROWTH: GEOGRAPHIC Long-term capital appreciation GT Global Variable New Pacific Fund
GT Global Variable Europe Fund
GT Global Variable Latin America Fund
GT Global Variable America Fund
GT Global Variable International Fund
- ---------------------------------------------------------------------------------------------------------
GROWTH: THEME Long-term capital appreciation GT Global Variable Telecommunications Fund
GT Global Variable Natural Resources Fund
GT Global Variable Infrastructure Fund
- ---------------------------------------------------------------------------------------------------------
GROWTH: AGGRESSIVE Long-term capital appreciation GT Global Variable Emerging Markets Fund
- ---------------------------------------------------------------------------------------------------------
MONEY MARKET Maximum current income GT Global Money Market Fund
Conservation of capital
- ---------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE> 18
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 19
GT GLOBAL
ALLOCATOR
DIVISIONS'
FINANCIAL
STATEMENTS
<PAGE> 20
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 21
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Directors and Contractholders
General American Life Insurance Company:
We have audited the statements of assets and liabilities, including the schedule
of investments and condensed financial information, of the Money Market,
Variable Strategic Income, Variable Global Government Income, and Variable U.S.
Government Income Divisions of General American Separate Account Twenty-eight
and of the Variable New Pacific, Variable Europe, Variable America, Variable
Growth & Income, Variable Latin America, Variable Telecommunications, Variable
International Growth, Variable Emerging Markets, Variable Natural Resources, and
Variable Infrastructure Divisions of General American Separate Account
Twenty-nine as of December 31, 1995, the related statements of operations,
changes in net assets and condensed financial information for the periods
presented. These financial statements and condensed financial information are
the responsibility of management of Separate Accounts Twenty-eight and
Twenty-nine. Our responsibility is to express an opinion on these financial
statements and condensed financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and condensed
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned at December 31, 1995 by correspondence with GT Global Variable Investment
Funds. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of the Money Market, Variable Strategic Income, Variable Global
Government Income, and Variable U.S. Government Income Divisions of General
American Separate Account Twenty-eight and of the Variable New Pacific, Variable
Europe, Variable America, Variable Growth & Income, Variable Latin America,
Variable Telecommunications, Variable International Growth, Variable Emerging
Markets, Variable Natural Resources and Variable Infrastructure Divisions of
General American Separate Account Twenty-nine as of December 31, 1995, the
results of their operations, changes in their net assets and the condensed
financial information for all periods presented, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
St. Louis, Missouri
January 28, 1996
<PAGE> 22
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 23
---------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT
STATEMENTS OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE GLOBAL VARIABLE U.S.
MONEY STRATEGIC GOVERNMENT GOVERNMENT
MARKET INCOME INCOME INCOME
DIVISION DIVISION DIVISION DIVISION
----------- ----------- --------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments in GT Global Variable Investment Funds,
at market value (see Schedule of Investments):.............. $13,765,803 $25,211,257 $11,918,883 $5,975,880
Receivable from General American Life Insurance Company....... 1,078,126 86,156 0 0
Dividend receivable from GT Global Financial Services,
Inc. ....................................................... 63,553 0 0 0
----------- ----------- ----------- ----------
Total assets.................................................. 14,907,482 25,297,413 11,918,883 5,975,880
----------- ----------- ----------- ----------
Liability:
Payable to General American Life Insurance Company............ 0 0 12,093 15,353
----------- ----------- ----------- ----------
Total net assets.............................................. $14,907,482 $25,297,413 $11,906,790 $5,960,527
=========== =========== =========== ==========
Total net assets represented by:
Individual variable annuity contracts cash value invested in
Separate Account............................................ $14,907,482 $25,297,413 $11,906,790 $5,740,807
General American Life Insurance Company seed money cash
value....................................................... 0 0 0 219,720
----------- ----------- ----------- ----------
Total net assets.............................................. $14,907,482 $25,297,413 $11,906,790 $5,960,527
=========== =========== =========== ==========
Total individual units held..................................... 1,158,210 1,737,045 893,418 435,451
Total seed money units held..................................... 0 0 0 16,666
Individual unit value........................................... $ 12.87 $ 14.56 $ 13.33 $ 13.18
Cost of investments............................................. $13,765,803 $23,805,951 $11,593,316 $5,867,795
</TABLE>
See accompanying notes to the financial statements.
---------
D-1
<PAGE> 24
---------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT
STATEMENTS OF OPERATIONS
For the year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE GLOBAL VARIABLE U.S.
MONEY STRATEGIC GOVERNMENT GOVERNMENT
MARKET INCOME INCOME INCOME
DIVISION DIVISION DIVISION DIVISION
------------ ----------- --------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividend income and capital gains distributions.............. $ 812,845 $ 1,988,808 $ 720,954 $ 233,771
Expenses:
Mortality, expense and administrative charges................ (222,901) (325,900) (151,543) (63,474)
------------ ----------- ----------- -----------
Net investment income........................................ 589,944 1,662,908 569,411 170,297
------------ ----------- ----------- -----------
Net realized gain (loss) on investments:
Proceeds from sales.......................................... 128,368,085 16,612,256 8,008,732 15,437,209
Cost of investments sold..................................... 128,368,085 20,227,107 8,616,419 15,195,862
------------ ----------- ----------- -----------
Net realized gain (loss) on investments...................... 0 (3,614,851) (607,687) 241,347
------------ ----------- ----------- -----------
Net unrealized gain (loss) on investments:
Unrealized (loss) on investments, beginning of period........ 0 (4,293,669) (1,125,758) (17,130)
Unrealized gain on investments, end of period................ 0 1,405,306 325,567 108,085
------------ ----------- ----------- -----------
Net unrealized gain on investments........................... 0 5,698,975 1,451,325 125,215
------------ ----------- ----------- -----------
Net gain on investments...................................... 0 2,084,124 843,638 366,562
------------ ----------- ----------- -----------
Net increase in net assets resulting from operations......... $ 589,944 $ 3,747,032 $ 1,413,049 $ 536,859
============ =========== =========== ===========
</TABLE>
See accompanying notes to the financial statements.
---------
D-2
<PAGE> 25
---------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1995 and 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE
MONEY MARKET DIVISION STRATEGIC INCOME DIVISION
--------------------------- --------------------------
1995 1994 1995 1994
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Operations:
Net investment income.......................................... $ 589,944 $ 239,881 $ 1,662,908 $ 2,178,260
Net realized (loss) on investments............................. 0 0 (3,614,851) (976,465)
Net unrealized gain (loss) on investments...................... 0 0 5,698,975 (5,660,691)
------------ ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................... 589,944 239,881 3,747,032 (4,458,896)
------------ ----------- ----------- -----------
Deposits into Separate Account................................. 10,769,393 26,105,644 2,989,136 18,785,977
Transfers (from) Separate Account.............................. (12,838,342) (5,168,252) (2,608,659) (6,184,807)
Withdrawals from Separate Account.............................. (3,110,109) (5,357,023) (2,137,433) (2,774,821)
------------ ----------- ----------- -----------
Net deposits into (withdrawals from) Separate Account.......... (5,179,058) 15,580,369 (1,756,956) 9,826,349
------------ ----------- ----------- -----------
Increase (decrease) in net assets.............................. (4,589,114) 15,820,250 1,990,076 5,367,453
Net assets, beginning of period................................ 19,496,596 3,676,346 23,307,337 17,939,884
------------ ----------- ----------- -----------
Net assets, end of period...................................... $ 14,907,482 $19,496,596 $25,297,413 $23,307,337
============ =========== =========== ===========
</TABLE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE GLOBAL VARIABLE U.S.
GOVERNMENT INCOME DIVISION GOVERNMENT INCOME DIVISION
--------------------------- --------------------------
1995 1994 1995 1994
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Operations:
Net investment income.......................................... $ 569,411 $ 542,186 $ 170,297 $ 77,888
Net realized gain (loss) on investments........................ (607,687) (227,866) 241,347 (157,816)
Net unrealized gain (loss) on investments...................... 1,451,325 (1,202,426) 125,215 (15,613)
------------ ----------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................... 1,413,049 (888,106) 536,859 (95,541)
------------ ----------- ----------- -----------
Deposits into Separate Account................................. 1,998,263 9,205,605 2,187,551 1,981,181
Transfers to (from) Separate Account........................... (126,814) (2,684,992) 1,369,582 110,378
Withdrawals from Separate Account.............................. (995,738) (2,025,502) (525,767) (470,050)
------------ ----------- ----------- -----------
Net deposits into Separate Account............................. 875,711 4,495,111 3,031,366 1,621,509
------------ ----------- ----------- -----------
Increase in net assets......................................... 2,288,760 3,607,005 3,568,225 1,525,968
Net assets, beginning of period................................ 9,618,030 6,011,025 2,392,302 866,334
------------ ----------- ----------- -----------
Net assets, end of period...................................... $ 11,906,790 $ 9,618,030 $ 5,960,527 $ 2,392,302
============ =========== =========== ===========
</TABLE>
See accompanying notes to the financial statements.
---------
D-3
<PAGE> 26
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE VARIABLE
NEW PACIFIC EUROPE AMERICA
DIVISION DIVISION DIVISION
----------- ----------- -----------
<S> <C> <C> <C>
Assets:
Investments in GT Global Variable Investment Funds,
at market value (see Schedule of Investments):.................. $22,782,344 $15,617,326 $38,073,225
Receivable from General American Life Insurance Company........... 0 0 0
----------- ----------- -----------
Total assets...................................................... 22,782,344 15,617,326 38,073,225
----------- ----------- -----------
Liability:
Payable to General American Life Insurance Company................ 42,686 51,617 546,932
----------- ----------- -----------
Total net assets.................................................. $22,739,658 $15,565,709 $37,526,293
=========== =========== ===========
Total net assets represented by:
Individual variable annuity contracts cash value invested in
Separate Account................................................ $22,739,658 $15,565,709 $37,500,504
Individual variable annuity contracts in payment period........... 0 0 25,789
----------- ----------- -----------
Total net assets.................................................. $22,739,658 $15,565,709 $37,526,293
=========== =========== ===========
Total individual units held......................................... 1,686,639 969,727 1,905,750
Individual unit value............................................... $ 13.48 $ 16.05 $ 19.69
Cost of investments................................................. $22,053,958 $15,329,191 $38,818,586
</TABLE>
See accompanying notes to the financial statements.
---------
D-4
<PAGE> 27
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & VARIABLE TELECOM- INTERNATIONAL EMERGING NATURAL VARIABLE
INCOME LATIN AMERICA MUNICATIONS GROWTH MARKETS RESOURCES INFRASTRUCTURE
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION
----------- -------------- ------------ -------------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C>
$30,722,899 $19,490,161 $50,808,355 $3,976,109 $8,803,830 $1,242,578 $1,473,538
0 0 0 0 1,147 0 8,322
----------- ----------- ----------- ---------- ---------- ---------- ----------
30,722,899 19,490,161 50,808,355 3,976,109 8,804,977 1,242,578 1,481,860
----------- ----------- ----------- ---------- ---------- ---------- ----------
235,317 88,654 115,738 546,871 0 1,300 0
----------- ----------- ----------- ---------- ---------- ---------- ----------
$30,487,582 $19,401,507 $50,692,617 $3,429,238 $8,804,977 $1,241,278 $1,481,860
=========== =========== =========== ========== ========== ========== ==========
$30,487,582 $19,401,507 $50,657,363 $3,429,238 $8,804,977 $1,241,278 $1,481,860
0 0 35,254 0 0 0 0
----------- ----------- ----------- ---------- ---------- ---------- ----------
$30,487,582 $19,401,507 $50,692,617 $3,429,238 $8,804,977 $1,241,278 $1,481,860
=========== =========== =========== ========== ========== ========== ==========
2,002,051 1,379,710 3,018,624 313,509 809,276 85,786 113,105
$ 15.23 $ 14.06 $ 16.79 $ 10.94 $ 10.88 $ 14.47 $ 13.10
$28,451,951 $20,706,067 $42,042,413 $3,993,400 $8,793,434 $1,253,701 $1,485,319
</TABLE>
See accompanying notes to the financial statements.
---------
D-5
<PAGE> 28
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF OPERATIONS
For the period ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE VARIABLE
NEW PACIFIC EUROPE AMERICA
DIVISION DIVISION DIVISION
----------- ----------- -----------
<S> <C> <C> <C>
Investment income:
Dividend income and capital gains distributions................... $ 89,700 $ 153,925 $ 605,026
Expenses:
Mortality, expense and administrative charges..................... (283,673) (214,740) (447,929)
----------- ----------- -----------
Net investment income (loss)...................................... (193,973) (60,815) 157,097
----------- ----------- -----------
Net realized gain (loss) on investments:
Proceeds from sales............................................... 72,793,859 31,061,979 29,953,338
Cost of investments sold.......................................... 74,402,481 30,420,170 23,817,583
----------- ----------- -----------
Net realized gain (loss) on investments........................... (1,608,622) 641,809 6,135,755
----------- ----------- -----------
Net unrealized gain (loss) on investments:
Unrealized gain (loss) on investments, beginning of period........ (1,348,912) (348,343) 619,171
Unrealized gain (loss) on investments, end of period.............. 728,386 288,135 (745,361)
----------- ----------- -----------
Net unrealized gain (loss) on investments......................... 2,077,298 636,478 (1,364,532)
----------- ----------- -----------
Net gain (loss) on investments.................................... 468,676 1,278,287 4,771,223
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations... $ 274,703 $ 1,217,472 $ 4,928,320
=========== =========== ===========
</TABLE>
- ------------------
* The Variable Natural Resources Division and the Variable Infrastructure
Division commenced operations January 31, 1995.
See accompanying notes to the financial statements.
---------
D-6
<PAGE> 29
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF OPERATIONS
For the period ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & VARIABLE TELECOM- INTERNATIONAL EMERGING NATURAL VARIABLE
INCOME LATIN AMERICA MUNICATIONS GROWTH MARKETS RESOURCES INFRASTRUCTURE
DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION* DIVISION*
---------- ------------- ----------- ------------- ----------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
$ 817,419 $ 2,979,778 $1,045,934 $ 33,461 $ 88,365 $ 61,072 $ 0
(392,330) (273,950) (617,741) (41,969) (103,685) (6,754) (8,272)
---------- ----------- ---------- ----------- ----------- ---------- --------
425,089 2,705,828 428,193 (8,508) (15,320) 54,318 (8,272)
---------- ----------- ---------- ----------- ----------- ---------- --------
5,142,435 22,593,431 6,584,232 11,154,648 6,235,244 1,159,227 532,977
4,939,521 31,325,100 5,066,652 11,219,407 7,479,001 1,117,107 497,139
---------- ----------- ---------- ----------- ----------- ---------- --------
202,914 (8,731,669) 1,517,580 (64,759) (1,243,757) 42,120 35,838
---------- ----------- ---------- ----------- ----------- ---------- --------
(792,989) (773,943) 2,580,877 (86,474) (687,996) 0 0
2,270,948 (1,215,906) 8,765,942 (17,291) 10,396 (11,123) (11,781)
---------- ----------- ---------- ----------- ----------- ---------- --------
3,063,937 (441,963) 6,185,065 69,183 698,392 (11,123) (11,781)
---------- ----------- ---------- ----------- ----------- ---------- --------
3,266,851 (9,173,632) 7,702,645 4,424 (545,365) 30,997 24,057
---------- ----------- ---------- ----------- ----------- ---------- --------
$3,691,940 $(6,467,804) $8,130,838 $ (4,084) $ (560,685) $ 85,315 $ 15,785
========== =========== ========== =========== =========== ========== ========
</TABLE>
See accompanying notes to the financial statements.
---------
D-7
<PAGE> 30
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 1995 and the period ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE NEW PACIFIC
DIVISION VARIABLE EUROPE DIVISION VARIABLE AMERICA DIVISION
-------------------------- -------------------------- --------------------------
1995 1994 1995 1994 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss)......... $ (193,973) $ (164,703) $ (60,815) $ (161,063) $ 157,097 $ 35,617
Net realized gain (loss) on
investments........................ (1,608,622) 135,981 641,809 345,378 6,135,755 383,586
Net unrealized gain (loss) on
investments........................ 2,077,298 (2,218,530) 636,478 (683,796) (1,364,532) 443,084
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.......... 274,703 (2,247,252) 1,217,472 (499,481) 4,928,320 862,287
----------- ----------- ----------- ----------- ----------- -----------
Deposits into Separate Account....... 3,610,697 16,465,784 1,602,275 12,652,934 9,612,392 9,793,371
Transfers to (from) Separate
Account............................ 1,060,224 682,064 (1,000,779) 124,656 10,537,113 5,449,159
Withdrawals from Separate Account.... (1,530,691) (3,377,871) (1,193,369) (2,616,101) (2,731,105) (2,509,306)
----------- ----------- ----------- ----------- ----------- -----------
Net deposits into (withdrawals from)
Separate Account................... 3,140,230 13,769,977 (591,873) 10,161,489 17,418,400 12,733,224
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets.... 3,414,933 11,522,725 625,599 9,662,008 22,346,720 13,595,511
Net assets, beginning of period...... 19,324,725 7,802,000 14,940,110 5,278,102 15,179,573 1,584,062
----------- ----------- ----------- ----------- ----------- -----------
Net assets, end of period............ $22,739,658 $19,324,725 $15,565,709 $14,940,110 $37,526,293 $15,179,573
=========== =========== =========== =========== =========== ===========
</TABLE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE
VARIABLE NATURAL VARIABLE
EMERGING MARKETS RESOURCES INFRASTRUCTURE
DIVISION** DIVISION*** DIVISION***
-------------------------- ----------- --------------
1995 1994 1995 1995
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss)....... $ (15,320) $ 45,748 $ 54,318 $ (8,272)
Net realized gain (loss) on
investments...................... (1,243,757) 92,507 42,120 35,838
Net unrealized gain (loss) on
investments...................... 698,392 (687,996) (11,123) (11,781)
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets
resulting from operations........ (560,685) (549,741) 85,315 15,785
----------- ----------- ----------- -----------
Deposits into Separate Account..... 3,361,077 6,973,126 432,320 934,944
Transfers to (from) Separate
Account.......................... (104,693) 2,540,709 828,362 634,407
Withdrawals from Separate
Account.......................... (736,190) (2,118,626) (104,719) (103,276)
----------- ----------- ----------- -----------
Net deposits into Separate
Account.......................... 2,520,194 7,395,209 1,155,963 1,466,075
----------- ----------- ----------- -----------
Increase in net assets............. 1,959,509 6,845,468 1,241,278 1,481,860
Net assets, beginning of period.... 6,845,468 0 0 0
----------- ----------- ----------- -----------
Net assets, end of period.......... $ 8,804,977 $ 6,845,468 $ 1,241,278 $ 1,481,860
=========== =========== =========== ===========
</TABLE>
- ------------------
* The Variable International Growth Division commenced operations July 12,
1994.
** The Variable Emerging Markets Division commenced operations July 6, 1994.
*** The Variable Natural Resources Division and the Variable Infrastructure
Division commenced operations January 31, 1995.
See accompanying notes to the financial statements.
---------
D-8
<PAGE> 31
-------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended December 31, 1995 and the period ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VARIABLE
INTERNATIONAL
VARIABLE VARIABLE VARIABLE GROWTH
GROWTH & INCOME DIVISION LATIN AMERICA DIVISION TELECOMMUNICATIONS DIVISION DIVISION*
----------------------------- ----------------------------- ----------------------------- -------------
1995 1994 1995 1994 1995 1994 1995
----------- ----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 425,089 $ 348,417 $ 2,705,828 $ (193,665) $ 428,193 $ (308,735) $ (8,508)
202,914 128,962 (8,731,669) 2,505,931 1,517,580 170,763 (64,759)
3,063,937 (1,330,107) (441,963) (2,279,969) 6,185,065 2,027,155 69,183
----------- ----------- ----------- ----------- ----------- ----------- ----------
3,691,940 (852,728) (6,467,804) 32,297 8,130,838 1,889,183 (4,084)
----------- ----------- ----------- ----------- ----------- ----------- ----------
2,987,675 18,229,782 3,938,984 21,910,069 7,406,448 29,801,164 1,134,850
850,154 272,795 (2,665,686) 558,243 2,141,926 2,002,590 726,150
(2,559,842) (3,671,967) (1,934,144) (4,055,755) (2,951,598) (5,616,777) (358,943)
----------- ----------- ----------- ----------- ----------- ----------- ----------
1,277,987 14,830,610 (660,846) 18,412,557 6,596,776 26,186,977 1,502,057
----------- ----------- ----------- ----------- ----------- ----------- ----------
4,969,927 13,977,882 (7,128,650) 18,444,854 14,727,614 28,076,160 1,497,973
25,517,655 11,539,773 26,530,157 8,085,303 35,965,003 7,888,843 1,931,265
----------- ----------- ----------- ----------- ----------- ----------- ----------
$30,487,582 $25,517,655 $19,401,507 $26,530,157 $50,692,617 $35,965,003 $3,429,238
=========== =========== =========== =========== =========== =========== ==========
<CAPTION>
1994
----------
<S> <C>
$ 874
(30,763)
(86,474)
----------
(116,363)
----------
2,245,552
548,312
(746,236)
----------
2,047,628
----------
1,931,265
0
----------
$1,931,265
==========
</TABLE>
See accompanying notes to the financial statements.
---------
D-9
<PAGE> 32
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT AND
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
NOTES TO
FINANCIAL STATEMENTS
December 31, 1995
- --------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION
General American Separate Account Twenty-eight and General American Separate
Account Twenty-nine (the Separate Accounts) commenced operations on February 10,
1993, and are registered under the Investment Company Act of 1940 (1940 Act) as
unit investment trusts. The Separate Accounts receive purchase payments from
individual variable annuity contracts issued by General American Life Insurance
Company (General American) which may be qualified or non-tax qualified.
Separate Account Twenty-eight is divided into four divisions and Separate
Account Twenty-nine is divided into ten divisions. Each division invests
exclusively in shares of a single fund of GT Global Variable Investment Funds
(the Funds), an open-end diversified management investment company. Separate
Account Twenty-eight invests in the Money Market, Variable Strategic Income,
Variable Global Government Income, and Variable U.S. Government Income Funds.
Separate Account Twenty-nine invests in the Variable New Pacific, Variable
Europe, Variable America, Variable Growth & Income, Variable Latin America,
Variable Telecommunications, Variable International Growth, Variable Emerging
Markets, Variable Natural Resources and Variable Infrastructure Funds.
Contractholders have the option of directing their deposits into one or all of
the Divisions as well as a fixed account of General American, which is not
generally subject to regulation under the Securities Act of 1933 or the 1940
Act. The unit values for the Separate Accounts for all divisions began at $12.00
on February 10, 1993, except the following Divisions of Separate Account
Twenty-nine which began at $12.00: the Variable Telecommunications Division on
October 18, 1993, the Variable International Growth Division on July 12, 1994,
the Variable Emerging Markets Division on July 6, 1994 and the Variable Natural
Resources and Variable Infrastructure Divisions on January 31, 1995.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Separate Accounts in the preparation of financial statements. The policies
followed are in conformity with generally accepted accounting principles.
(A) INVESTMENTS
The Separate Accounts' investments in the GT Global Variable Funds are valued
daily on the respective shares held and based on the net asset values as
reported to General American by the Funds at the close of each business day. The
specific identification method is used in determining the cost of shares sold on
withdrawals by the Separate Accounts. Share transactions are recorded on the
trade date, which is the same as the settlement date.
(B) FEDERAL INCOME TAXES
Under current Federal income tax law, the investment income and capital gains
from sales of investments of the Separate Accounts are not taxable. Therefore,
no Federal income tax expense has been provided.
(C) DIVIDEND REINVESTMENT
Dividends received from the underlying mutual funds are recorded on the
ex-dividend date and immediately reinvested on the pay date.
(D) USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
NOTE 3 -- CONTRACT CHARGES
Mortality and Expense Assurance Charge: General American assumes the mortality
and expense risks and provides certain administrative services related to
operating the Separate Accounts, for which the Separate Accounts are charged an
annual fee of 1.25% based on the values at the end of each valuation period.
Mortality and expense charges for Separate Accounts Twenty-eight and Twenty-nine
totaled $2,816,840 for the period ended December 31, 1995.
Surrender Charge: Under Separate Account contractual arrangements, General
American is entitled to collect payment for sales charges. Contracts are subject
to a deferred sales charge contingent upon surrender of the contract or a
greater than 10% partial withdrawal of funds on deposit. The sales charge is 6%
the first contract year, decreasing by 1% each subsequent year. The contingent
deferred sales charge will be waived in the event of annuitization after the
third year or on death if the date of issue is prior to the annuitant's 75th
birthday. Sales charges as a result of surrenders are disclosed in Note 6.
---------
D-10
<PAGE> 33
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT AND
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
Account Fee and Administrative Charges: General American has the responsibility
for the administration of the contract. As reimbursement for account
administrative expenses, on the last day of the contract year, General American
deducts an account fee. For contracts with accumulated values less than $20,000,
the fee is the lesser of $30 or 2% of the accumulated value for contract years
ending prior to December 31, 1999. Thereafter, the account fee may be adjusted
annually. The account fee is waived for contracts with accumulated values of
$20,000 or more. General American charges $25 for each transfer in excess of
twelve (12) during the Contract Year, excluding transfers made under the Dollar
Cost Averaging program and reserves the right to charge a fee to cover the
expenses for special handling. Account fees are disclosed in Note 6. General
American also provides certain administrative services for which it charges an
administrative charge to the Separate Accounts at an annual rate of 0.15% at the
end of each valuation period. Administrative charges for Separate Account
Twenty-eight and Twenty-nine totaled $338,021 for the period ended December 31,
1995.
Premium Taxes: In states which charge premium taxes, the taxes are withdrawn
from the purchase payment or the accumulated value of the contract. Premium
taxes are disclosed in Note 6.
NOTE 4 -- PURCHASES AND SALES OF GT GLOBAL VARIABLE INVESTMENT FUND SHARES
During the period ended December 31, 1995, cost of purchases and proceeds from
sales of GT Global Variable Investment Fund shares were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
SEPARATE ACCOUNT TWENTY-EIGHT
----------------------------------
Money Market Fund $122,694,302 $128,368,085
Variable Strategic Income Fund 16,600,599 16,612,256
Variable Global Government Income Fund 9,453,283 8,008,732
Variable U.S. Government Income Fund 18,489,833 15,437,209
SEPARATE ACCOUNT TWENTY-NINE
---------------------------------
Variable New Pacific Fund $ 75,742,824 $ 72,793,859
Variable Europe Fund 30,303,819 31,061,979
Variable America Fund 48,061,845 29,953,338
Variable Growth & Income Fund 7,026,932 5,142,435
Variable Latin America Fund 25,042,050 22,593,431
Variable Telecommunications Fund 13,779,478 6,584,232
Variable International Growth Fund 13,201,209 11,154,648
Variable Emerging Markets Fund 8,684,921 6,235,244
Variable Natural Resources Fund 2,370,808 1,159,227
Variable Infrastructure Fund 1,982,458 532,977
</TABLE>
---------
D-11
<PAGE> 34
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT AND
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
NOTE 5 -- ACCUMULATION UNIT ACTIVITY
The following is a summary of the accumulation unit activity for the years ended
December 31, 1995 and 1994 for Separate Account Twenty-eight (in thousands):
<TABLE>
<CAPTION>
VARIABLE VARIABLE
GLOBAL U.S.
VARIABLE GOVERNMENT GOVERNMENT
MONEY MARKET STRATEGIC INCOME INCOME
DIVISION INCOME DIVISION DIVISION DIVISION
----------------- ----------------- ------------- -------------
1995 1994 1995 1994 1995 1994 1995 1994
------ ------ ------ ------ ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Individual units held:
Deposits......................................... 856 2,130 229 1,392 158 751 176 166
Transfers........................................ (1,022) (426) (214) (480) (11) (224) 113 9
Withdrawals...................................... (248) (435) (164) (213) (79) (166) (42) (39)
Outstanding units, beginning of period........... 1,572 303 1,886 1,187 825 464 188 52
------- ------- ------- ------- ----- ----- ----- -----
Outstanding units, end of period................. 1,158 1,572 1,737 1,886 893 825 435 188
======= ======= ======= ======= ===== ===== ===== =====
General American Life Insurance Company seed money:
Deposits......................................... 0 0 0 0 0 0 0 0
Transfers........................................ 0 0 0 0 0 0 0 0
Withdrawals...................................... 0 0 0 0 0 0 0 0
Outstanding units, beginning of period........... 0 0 0 0 0 0 17 17
------- ------- ------- ------- ----- ----- ----- -----
Outstanding units, end of period................. 0 0 0 0 0 0 17 17
======= ======= ======= ======= ===== ===== ===== =====
</TABLE>
The following is a summary of the accumulation unit activity for the years ended
December 31, 1995 and 1994 for all Divisions except the Variable International
Growth Division which shows the unit activity for the year ended December 31,
1995 and the period from July 12, 1994 through December 31, 1994; the Variable
Emerging Markets Division which shows the unit activity for the year ended
December 31, 1995 and the period from July 6, 1994 through December 31, 1994;
the Variable Natural Resources Division and the Variable Infrastructure Division
which shows the unit activity for the period January 31, 1995 through December
31, 1995 for Separate Account Twenty-nine (in thousands). There was no activity
in Separate Account Twenty-nine relating to General American Life Insurance
Company seed money.
<TABLE>
<CAPTION>
VARIABLE NEW VARIABLE VARIABLE VARIABLE GROWTH & VARIABLE LATIN
PACIFIC DIVISION EUROPE DIVISION AMERICA DIVISION INCOME DIVISION AMERICA DIVISION
--------------------- --------------------- --------------------- --------------------- ---------------------
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
--------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Individual
units
held:
Deposits... 276 1,103 107 828 510 641 216 1,335 267 1,121
Transfers... 118 40 (65) 2 583 357 63 17 (168) 27
Withdrawals... (117) (225) (79) (172) (140) (162) (185) (271) (131) (199)
Outstanding
units,
beginning
of
period... 1,410 492 1,007 349 953 117 1,908 827 1,412 463
------- ------- ------- ------- ------- ----- ------- ------- ------- -------
Outstanding
units,
end of
period... 1,687 1,410 970 1,007 1,906 953 2,002 1,908 1,380 1,412
======= ======= ======= ======= ======= ===== ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
VARIABLE VARIABLE
VARIABLE VARIABLE NATURAL INFRA-
TELECOMMUNICATIONS INTERNATIONAL VARIABLE EMERGING RESOURCES STRUCTURE
DIVISION GROWTH DIVISION MARKETS DIVISION DIVISION DIVISION
--------------------- --------------------- --------------------- --------- ---------
1995 1994 1995 1994 1995 1994 1995 1995
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Individual
units
held:
Deposits... 487 2,281 106 190 312 537 32 72
Transfers... 115 150 70 45 (9) 198 61 49
Withdrawals... (195) (424) (34) (63) (68) (161) (7) (8)
Outstanding
units,
beginning
of
period... 2,612 605 172 0 574 0 0 0
------- ------- ----- ----- ----- ----- ---- -----
Outstanding
units,
end of
period... 3,019 2,612 314 172 809 574 86 113
======= ======= ===== ===== ===== ===== ==== =====
</TABLE>
---------
D-12
<PAGE> 35
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT
NOTE 6 -- SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT
Deposits into the Separate Account are used to purchase shares in GT Global
Variable Investment Funds. Net deposits represent the amounts available for
investment in such shares after deduction of premium taxes, administrative
costs, and surrender charges.
For the year ended December 31, 1995 and the period ended December 31, 1994.
<TABLE>
<CAPTION>
MONEY MARKET VARIABLE STRATEGIC
DIVISION INCOME DIVISION
--------------------------- ---------------------------
1995 1994 1995 1994
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Total gross deposits............................................. $10,798,707 $ 26,110,989 $ 2,995,532 $ 18,797,879
Transfers between fund divisions and General American............ (12,838,342) (5,168,252) (2,608,659) (6,184,807)
Surrenders and withdrawals....................................... (3,059,601) (5,321,689) (2,090,617) (2,760,455)
----------- ------------ ----------- ------------
Total gross deposits, transfers, and surrenders between fund
divisions.................................................. (5,099,236) 15,621,048 (1,703,744) 9,852,617
----------- ------------ ----------- ------------
Deductions:
Premium taxes.................................................. 0 0 (16) (8,811)
Account Fees................................................... (29,314) (5,345) (6,380) (3,091)
Surrender charges.............................................. (50,508) (35,334) (46,816) (14,366)
----------- ------------ ----------- ------------
Total deductions............................................. (79,822) (40,679) (53,212) (26,268)
----------- ------------ ----------- ------------
Net deposits into (deductions from) Separate Account............. $(5,179,058) $ 15,580,369 $(1,756,956) $ 9,826,349
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
VARIABLE GLOBAL VARIABLE U.S.
GOVERNMENT INCOME GOVERNMENT INCOME
DIVISION DIVISION
-------------------------- ---------------------------
1995 1994 1995 1994
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Total gross deposits.............................................. $ 2,001,213 $ 9,206,570 $ 2,189,649 $ 1,981,343
Transfers between fund divisions and General American............. (126,814) (2,684,992) 1,369,582 110,378
Surrenders and withdrawals........................................ (981,723) (2,019,176) (517,308) (470,034)
----------- ----------- ----------- ------------
Total gross deposits, transfers, and surrenders between fund
divisions................................................... 892,676 4,502,402 3,041,923 1,621,687
----------- ----------- ----------- ------------
Deductions:
Premium taxes................................................... 0 (125) (2) (107)
Account Fees.................................................... (2,950) (840) (2,096) (55)
Surrender charges............................................... (14,015) (6,326) (8,459) (16)
----------- ----------- ----------- ------------
Total deductions.............................................. (16,965) (7,291) (10,557) (178)
----------- ----------- ----------- ------------
Net deposits into Separate Account................................ $ 875,711 $ 4,495,111 $ 3,031,366 $ 1,621,509
=========== =========== =========== ============
</TABLE>
---------
D-13
<PAGE> 36
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
NOTE 6 -- SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT
Deposits into the Separate Account are used to purchase shares in GT Global
Variable Investment Funds. Net deposits represent the amounts available for
investment in such shares after deduction of premium taxes, administrative
costs, and surrender charges.
For the period ended December 31, 1995 and the period ended December 31, 1994.
<TABLE>
<CAPTION>
VARIABLE
NEW PACIFIC DIVISION VARIABLE EUROPE DIVISION VARIABLE AMERICA DIVISION
--------------------------- --------------------------- ----------------------------
1995 1994 1995 1994 1995 1994
----------- ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Total gross deposits.......... $ 3,625,120 $ 16,469,934 $ 1,607,354 $ 12,656,048 $ 9,630,823 $ 9,795,891
Transfers between fund
divisions and
General American............ 1,060,224 682,064 (1,000,779) 124,656 10,537,113 5,449,159
Surrenders and withdrawals.... (1,494,877) (3,371,059) (1,162,758) (2,613,681) (2,670,026) (2,506,292)
----------- ------------ ----------- ------------ ------------ ------------
Total gross deposits,
transfers, and
surrenders between fund
divisions............... 3,190,467 13,780,939 (556,183) 10,167,023 17,497,910 12,738,758
----------- ------------ ----------- ------------ ------------ ------------
Deductions:
Premium taxes............... (488) (1,198) (22) (1,715) (6) (1,161)
Account Fees................ (13,935) (2,952) (5,057) (1,399) (18,425) (1,359)
Surrender charges........... (35,814) (6,812) (30,611) (2,420) (61,079) (3,014)
----------- ------------ ----------- ------------ ------------ ------------
Total deductions.......... (50,237) (10,962) (35,690) (5,534) (79,510) (5,534)
----------- ------------ ----------- ------------ ------------ ------------
Net deposits into (deductions
from)
Separate Account............ $ 3,140,230 $ 13,769,977 $ (591,873) $ 10,161,489 $ 17,418,400 $ 12,733,224
=========== ============ =========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VARIABLE
VARIABLE NATURAL VARIABLE
EMERGING MARKETS RESOURCES INFRASTRUCTURE
DIVISION** DIVISION*** DIVISION***
-------------------------- ----------- --------------
1995 1994 1995 1995
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Total gross deposits......... $ 3,363,325 $ 6,973,499 $ 432,775 $ 935,004
Transfers between fund
divisions and
General American........... (104,693) 2,540,709 828,362 634,407
Surrenders and withdrawals... (726,356) (2,118,115) (104,551) (102,860)
----------- ----------- ----------- --------------
Total gross deposits,
transfers, and
surrenders between fund
divisions.............. 2,532,276 7,396,093 1,156,586 1,466,551
----------- ----------- ----------- --------------
Deductions:
Premium taxes.............. (5) (18) 0 0
Account Fees............... (2,243) (355) (455) (60)
Surrender charges.......... (9,834) (511) (168) (416)
----------- ----------- ----------- --------------
Total deductions......... (12,082) (884) (623) (476)
----------- ----------- ----------- --------------
Net deposits into Separate
Account.................... $ 2,520,194 $ 7,395,209 $ 1,155,963 $ 1,466,075
=========== =========== =========== ============
</TABLE>
- ------------------
* The Variable International Growth Division commenced operations July 12,
1994.
** The Variable Emerging Markets Division commenced operations July 6, 1994.
*** The Variable Natural Resources Division and the Variable Infrastructure
Division commenced operations January 31, 1995.
---------
D-14
<PAGE> 37
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
NOTE 6 -- SUMMARY OF GROSS AND NET DEPOSITS INTO SEPARATE ACCOUNT (CONTINUED)
For the period ended December 31, 1995 and the period ended December 31, 1994.
<TABLE>
<CAPTION>
VARIABLE GROWTH & VARIABLE LATIN VARIABLE VARIABLE INTERNATIONAL
INCOME DIVISION AMERICA DIVISION TELECOMMUNICATIONS DIVISION GROWTH DIVISION*
---------------------------- ---------------------------- ---------------------------- ---------------------------
1995 1994 1995 1994 1995 1994 1995 1994
----------- ------------ ----------- ------------ ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,997,409 $ 18,242,080 $ 3,946,085 $ 21,924,154 $ 7,440,798 $ 29,809,737 $ 1,136,543 $ 2,245,577
850,154 272,795 (2,665,686) 558,243 2,141,926 2,002,590 726,150 548,312
(2,495,073) (3,657,960) (1,896,475) (4,045,368) (2,885,630) (5,602,519) (350,536) (746,236)
----------- ------------ ----------- ------------ ----------- ------------ ----------- -----------
1,352,490 14,856,915 (616,076) 18,437,029 6,697,094 26,209,808 1,512,157 2,047,653
----------- ------------ ----------- ------------ ----------- ------------ ----------- -----------
0 (9,332) (22) (8,440) (26) (2,784) 0 0
(9,734) (2,966) (7,079) (5,645) (34,324) (5,789) (1,693) (25)
(64,769) (14,007) (37,669) (10,387) (65,968) (14,258) (8,407) 0
----------- ------------ ----------- ------------ ----------- ------------ ----------- -----------
(74,503) (26,305) (44,770) (24,472) (100,318) (22,831) (10,100) (25)
----------- ------------ ----------- ------------ ----------- ------------ ----------- -----------
$ 1,277,987 $ 14,830,610 $ (660,846) $ 18,412,557 $ 6,596,776 $ 26,186,977 $ 1,502,057 $ 2,047,628
=========== ============ =========== ============ =========== ============ =========== ===========
</TABLE>
---------
D-15
<PAGE> 38
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT AND
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
SCHEDULE OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
SEPARATE ACCOUNT TWENTY-EIGHT:
GT Global Money Market Fund 13,765,803 $13,765,803
GT Global Variable Strategic Income Fund 2,125,738 25,211,257
GT Global Variable Global Government Income Fund 1,035,524 11,918,883
GT Global Variable U.S. Government Income Fund 509,019 5,975,880
SEPARATE ACCOUNT TWENTY-NINE:
GT Global Variable New Pacific Fund 1,636,663 22,782,344
GT Global Variable Europe Fund 945,359 15,617,326
GT Global Variable America Fund 1,956,486 38,073,225
GT Global Variable Growth & Income Fund 2,108,641 30,722,899
GT Global Variable Latin America Fund 1,569,256 19,490,161
GT Global Variable Telecommunications Fund 3,013,544 50,808,355
GT Global Variable International Growth Fund 361,136 3,976,109
GT Global Variable Emerging Markets Fund 809,176 8,803,830
GT Global Variable Natural Resources Fund 89,523 1,242,578
GT Global Variable Infrastructure Fund 111,043 1,473,538
</TABLE>
See accompanying independent auditors' report.
---------
D-16
<PAGE> 39
---------------------------------------------------------------------------
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-EIGHT AND
GENERAL AMERICAN SEPARATE ACCOUNT TWENTY-NINE
TABLE 1
CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL UNITS
ACCUMULATION ACCUMULATION OUTSTANDING,
UNIT VALUE: UNIT VALUE: END OF PERIOD
BEGINNING OF PERIOD* END OF PERIOD (IN THOUSANDS)
-------------------- ------------- --------------
<S> <C> <C> <C> <C>
SEPARATE ACCOUNT TWENTY-EIGHT:
Money Market Division 1995 12.40 12.87 1,158
1994 12.15 12.40 1,572
1993 12.00 12.15 303
Variable Strategic Income
Division 1995 12.36 14.56 1,737
1994 15.11 12.36 1,886
1993 12.00 15.11 1,187
Variable Global Government
Income Division 1995 11.66 13.33 893
1994 12.95 11.66 825
1993 12.00 12.95 464
Variable U.S. Government Income
Division 1995 11.65 13.18 452
1994 12.61 11.65 205
1993 12.00 12.61 69
SEPARATE ACCOUNT TWENTY-NINE:
Variable New Pacific Division 1995 13.70 13.48 1,687
1994 15.87 13.70 1,410
1993 12.00 15.87 492
Varible Europe Division 1995 14.84 16.05 970
1994 15.14 14.84 1,007
1993 12.00 15.14 349
Variable America Division 1995 15.93 19.69 1,906
1994 13.59 15.93 953
1993 12.00 13.59 117
Variable Growth & Income
Division 1995 13.37 15.23 2,002
1994 13.96 13.37 1,908
1993 12.00 13.96 827
Variable Latin America Division 1995 18.79 14.06 1,380
1994 17.46 18.79 1,412
1993 12.00 17.46 463
Variable Telecommunications
Division 1995 13.77 16.79 3,019
1994 13.03 13.77 2,612
1993 12.00 13.03 605
Variable International Growth
Division 1995 11.22 10.94 314
1994 12.00 11.22 172
Variable Emerging Markets
Division 1995 11.93 10.88 809
1994 12.00 11.93 574
Variable Natural Resources
Division 1995 12.00 14.47 86
Variable Infrastructure
Division 1995 12.00 13.10 113
</TABLE>
- ------------------
* At inception of Separate Account on February 10, 1993, except for the Variable
Telecommunications Division, which commenced operations on October 18, 1993;
the Variable International Growth Division, which commenced operations on July
12, 1994; the Variable Emerging Markets Division, which commenced operations
on July 6, 1994; and the Variable Natural Resources Division and Variable
Infrastructure Division which commenced operations on January 31, 1995.
See accompanying independent auditors' report.
---------
D-17
<PAGE> 40
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 41
G.T. GLOBAL
ALLOCATOR
FUNDS'
FINANCIAL
STATEMENTS
<PAGE> 42
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 43
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of the GT Global Variable Investment
Trust comprising the following Funds: GT Global Variable Strategic Income Fund,
GT Global Variable Global Government Income Fund, GT Global Variable U.S.
Government Income Fund, GT Global Variable Latin America Fund, GT Global
Variable Growth & Income Fund, GT Global Variable Telecommunications Fund, GT
Global Variable Emerging Markets Fund, GT Global Variable Infrastructure Fund,
GT Global Variable Natural Resources Fund; and GT Global Variable Investment
Series comprising the following Funds: GT Global Variable America Fund, GT
Global Variable New Pacific Fund, GT Global Variable Europe Fund, GT Global
Money Market Fund and GT Global Variable International Fund (collectively, "the
Funds"):
We have audited the accompanying statements of assets and liabilities of the
Funds, including the portfolios of investments, as of December 31, 1995, the
related statements of operations for the periods indicated herein, and the
related statements of changes in net assets and financial highlights for each of
the periods indicated herein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of the
Funds as of December 31, 1995, the results of their operations for the periods
indicated herein, and the changes in their net assets and the financial
highlights for each of the periods indicated herein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 21, 1996
<PAGE> 44
(THIS PAGE INTENTIONALLY LEFT BLANK)
<PAGE> 45
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ --------- ------------ ------------ --------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (85.9%)
- --------------------------------------------------
Argentina (6.1%)
----------------
Republic of Argentina:
Discount Bond, 6.5625% due 3/31/23 +.............................. USD 1,000,000 $ 652,500 2.6
Par Bond, 5% due 3/31/23 ++....................................... USD 800,000 454,000 1.8
BOCON Pre 2, 5.9766% due 4/1/01 // +.............................. USD 250,000 243,750 1.0
Floating Rate Bond, 6.8125% due 3/31/05 +......................... USD 250,000 177,031 0.7
Australia (1.7%)
----------------
Australian Government, 7.5% due 7/15/05........................... AUD 600,000 426,250 1.7
Brazil (4.5%)
-------------
Republic of Brazil:
Par Z-L Bond, 4.25% due 4/15/24 ++................................ USD 840,000 443,625 1.8
C Bond, 4% due 4/15/14 - 144A (Effective rate at period end is
6.2825%, including "payment-in-kind" bonds.) // ++............. USD 530,604 302,776 1.2
Discount Bond, 6.8125% due 4/15/24 +.............................. USD 400,000 245,750 1.0
Debt Conversion Bond Series L, 6.875% due 4/15/12 +............... USD 200,000 114,500 0.5
Bulgaria (3.5%)
---------------
Bulgaria:
Past Due Interest Bond (IAB), 6.75% due 7/28/11 - 144A + #........ USD 829,186 384,017 1.5
Discount Bond Series A, 6.75% due 7/28/24 - EURO +................ USD 700,000 373,188 1.5
Discount Bond Series A, 6.75% due 7/28/24 - 144A + #.............. USD 250,000 133,281 0.5
Canada (0.3%)
-------------
Canadian Government, 8.75% due 12/1/05............................ CAD 100,000 81,861 0.3
Denmark (2.8%)
--------------
Kingdom of Denmark, 7% due 12/15/04............................... DKK 3,937,000 705,057 2.8
Ecuador (3.6%)
--------------
Ecuador:
Discount Bond, 6.8125% due 2/28/25 - EURO +....................... USD 750,000 380,625 1.5
Par Bond, 3% due 2/28/25 - EURO ++................................ USD 1,000,000 363,125 1.4
Past Due Interest Bond, 3% due 2/27/15 - EURO (Effective rate at
period end is 4.28%, including "payment-in-kind"
bonds.) // +................................................... USD 510,743 171,737 0.7
France (4.9%)
-------------
French O.A.T.:
7.25% due 4/25/06................................................. FRF 3,640,000 774,901 3.1
7.5% due 4/25/05.................................................. FRF 2,160,000 468,269 1.8
Germany (5.4%)
--------------
Deutschland Republic, 6.25% due 1/4/24............................ DEM 2,110,000 1,372,846 5.4
Ireland (0.9%)
--------------
Irish Gilts, 6.25% due 10/18/04................................... IEP 160,000 236,800 0.9
Italy (6.9%)
------------
Italian Buoni Poliennali del Tesoro (BTPS):
8.5% due 4/1/04................................................... ITL 1,270,000,000 712,041 2.8
9.5% due 1/1/05................................................... ITL 450,000,000 266,167 1.1
8.5% due 1/1/04................................................... ITL 440,000,000 247,677 1.0
Republic of Italy, 5.125% due 7/29/03............................... JPY 46,000,000 501,788 2.0
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-1
<PAGE> 46
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ --------- ------------ ------------ --------
<S> <C> <C> <C> <C>
Mexico (4.6%)
-------------
United Mexican States:
Discount Bond Series B, 6.7656% due 12/31/19 + (t)................ USD 750,000 $ 540,000 2.1
Par Bond Series A, 6.25% due 12/31/19 (t)......................... USD 500,000 326,563 1.3
Par Bond, 6.63% due 12/31/19 (t).................................. FRF 1,500,000 164,127 0.6
Petroleos Mexicanos (PEMEX), 8.625% due 12/1/23 - 144A #.......... USD 200,000 150,000 0.6
New Zealand (2.8%)
------------------
New Zealand Government:
8% due 2/15/01.................................................... NZD 360,000 241,619 1.0
6.5% due 2/15/00.................................................. NZD 375,000 237,352 0.9
8% due 11/15/06................................................... NZD 340,000 234,815 0.9
Nigeria (2.5%)
--------------
Central Bank of Nigeria:
Par Bond, 6.25% due 11/15/20 ++ (t)............................... USD 1,250,000 615,625 2.4
5.092% due 1/5/10 ++.............................................. USD 100,000 37,063 0.1
Philippines (2.5%)
------------------
Central Bank of the Philippines:
Par Bond Series B, 6.25% due 12/1/17 ++........................... USD 550,000 409,750 1.6
Debt Conversion Bond Series B, 6.5% due 12/1/09 +................. USD 250,000 215,313 0.9
Poland (4.4%)
-------------
Poland:
Past Due Interest Bond, 3.75% due 10/27/14 - 144A ++ #............ USD 999,000 650,599 2.6
Discount Bond, 6.875% due 10/27/24 - 144A + #..................... USD 384,000 290,880 1.1
Par Bond, 2.75% due 10/27/24 - 144A ++ #.......................... USD 384,000 183,360 0.7
Par Bond, 2.75% due 10/27/24 - EURO ++............................ USD 16,000 7,640 0.0
Portugal (1.7%)
---------------
Portuguese Government Bond, 11.875% due 2/23/05................... PTE 56,000,000 420,731 1.7
Russia (1.2%)
-------------
Ministry Finance of Russia, 3% due 5/14/99........................ USD 500,000 305,313 1.2
South Africa (0.6%)
-------------------
Republic of South Africa, 12% due 2/28/05......................... ZAR 600,000 146,384 0.6
Spain (3.8%)
------------
Kingdom of Spain:
10% due 2/28/05................................................... ESP 58,000,000 485,334 1.9
5.75% due 3/23/02................................................. JPY 42,000,000 477,282 1.9
Sweden (3.8%)
-------------
Swedish Government, 13% due 6/15/01............................... SEK 5,300,000 962,457 3.8
United States (14.0%)
---------------------
United States Treasury Note:
6.25% due 5/31/00................................................. USD 1,400,000 1,447,633 5.7
7.75% due 11/30/99................................................ USD 680,000 736,950 2.9
6.5% due 8/15/05.................................................. USD 230,000 244,734 1.0
United States Treasury Bond, 6.875% due 8/15/25..................... USD 1,000,000 1,122,500 4.4
Venezuela (3.4%)
----------------
Republic of Venezuela, Par Bond Series A, 6.75% due 3/31/20 (t)... USD 1,500,000 859,688 3.4
-----------
Total Government & Government Agency Obligations (cost $20,712,667)..... 21,747,274
-----------
Sovereign Debt (3.4%)
- ---------------------
Morocco (2.4%)
--------------
Kingdom of Morocco, Tranche A Loan Agreement, 6.5938%
due 1/1/09 +...................................................... USD 910,000 611,975 2.4
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-2
<PAGE> 47
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ --------- --------- ------------ --------
<S> <C> <C> <C> <C>
Russia (1.0%)
-------------
Bank for Foreign Economic Affairs (Vnesheconombank) Loan
Agreement ** (d).................................................. DEM 1,000,000 $ 264,576 1.0
-----------
Total Sovereign Debt (cost $916,315).................................... 876,551
-----------
Corporate Bonds (0.8%)
- ----------------------
Brazil (0.8%)
-------------
Banco BCN - BCN Leasing, 11% due 6/9/97 - 144A (cost $200,000) #.... USD 200,000 198,250 0.8
Supranational Bonds (0.7%)
- --------------------------
International Bank of Reconstruction & Development, 4.5%
due 6/20/00 (cost $229,878)....................................... JPY 17,500,000 188,735 0.7
----------- ----
Total Fixed Income Investments (cost $22,058,860)....................... 23,010,810 90.8
----------- ----
<CAPTION>
Underlying
Nominal
Options Amount
- ------- ------------
<S> <C> <C> <C> <C>
Call Option on Japanese Government Bond, 4.9% due 6/20/03, strike
114.406, expires 3/12/96 (cost $18,133)............................. JPY 150,000,000 5,741 0.0
<CAPTION>
Principal
Short-Term Investments Amount
- ---------------------- ------------
<S> <C> <C> <C> <C>
Treasury Bills (1.9%)
- ---------------------
Mexico (1.9%)
Mexican Cetes:...................................................... MXN -- -- 1.9
Effective yield 50.06%, due 2/22/96............................... -- 2,075,870 251,413 --
Effective yield 48.10%, due 3/28/96............................... -- 952,330 110,799 --
Effective yield 45.50%, due 9/26/96............................... -- 1,100,000 106,609 --
----------- ----
Total Short-Term Investments (cost $493,524)............................ 468,821 1.9
----------- ----
Repurchase Agreement
- --------------------
Dated December 29, 1995, with State Street Bank and Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$1,155,000 U.S. Treasury Notes, 6% due 8/31/97 (market value of
collateral is $1,192,123, including accrued interest). (cost
$1,164,538)......................................................... 1,164,538 4.6
----------- ----
Total Investments (cost $23,735,055) @.................................. 24,649,910 97.3
Other Assets and Liabilities............................................ 694,974 2.7
----------- ----
Net Assets.............................................................. $25,344,884 100.0
=========== ====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $25,344,884.
+ The coupon rate shown on floating rate note represents the rate at period end.
(d) Non-income producing security.
** Underlying loan agreement currently in default.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
// Bond pays stated or additional interest with "payment-in-kind" (PIK) bonds.
++ The coupon rate shown on step-up coupon bond represents the rate at period end.
(t) Issued with detachable warrants or value recovery rights. The current market value of each warrant or right is
zero.
@ For Federal income tax purposes, cost is $23,931,295 and appreciation (depreciation) is as follows:
Unrealized appreciation: $1,229,742
Unrealized depreciation: (511,127)
----------
Net unrealized appreciation: $ 718,615
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-3
<PAGE> 48
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
--------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Contracts to Buy:
- -----------------
Australian Dollars.............................................. 277,607 1.32674 01/18/96 $ (3,910)
British Pounds.................................................. 69,642 0.65067 02/21/96 483
British Pounds.................................................. 687,635 0.63788 01/16/96 (6,856)
Canadian Dollars................................................ 243,154 1.37780 02/20/96 2,190
Canadian Dollars................................................ 172,112 1.38171 02/20/96 2,033
Canadian Dollars................................................ 40,282 1.37580 02/20/96 305
Canadian Dollars................................................ 102,532 1.37535 03/18/96 739
Danish Kroner................................................... 27,025 5.58040 01/16/96 145
Deutsche Marks.................................................. 76,796 1.44535 01/24/96 690
Deutsche Marks.................................................. 303,695 1.40715 01/24/96 (5,441)
Deutsche Marks.................................................. 209,445 1.38179 01/24/96 (7,665)
Deutsche Marks.................................................. 349,075 1.39266 01/24/96 (9,951)
Deutsche Marks.................................................. 510,727 1.42920 02/29/96 (48)
Italian Lira.................................................... 232,631 1,608.63103 01/26/96 2,622
Italian Lira.................................................... 122,971 1,610.70002 01/26/96 1,542
Japanese Yen.................................................... 214,332 100.07340 03/01/96 (4,696)
Japanese Yen.................................................... 294,062 100.13000 03/18/96 (5,548)
New Zealand Dollars............................................. 24,129 1.53953 02/29/96 96
Spanish Pesetas................................................. 119,097 123.28000 02/07/96 1,478
Swedish Krona................................................... 365,705 6.66278 01/05/96 1,442
Swedish Krona................................................... 92,668 6.64000 01/05/96 50
--------- --------
Total Contracts to Buy (Payable amount $4,565,622).............. 4,535,322 (30,300)
--------- --------
The value of Contracts to Buy as a Percentage of Net Assets is
17.89%.
<CAPTION>
Contracts to Sell:
- -----------------
<S> <C> <C> <C> <C>
Australian Dollars.............................................. 185,443 1.35007 01/18/96 (638)
Australian Dollars.............................................. 277,607 1.35007 01/18/96 (955)
British Pounds.................................................. 247,616 0.64677 02/21/96 (232)
Danish Kroner................................................... 493,653 5.43600 01/16/96 10,394
Danish Kroner................................................... 234,215 5.48110 01/16/96 2,964
Deutsche Marks.................................................. 216,426 1.43100 01/24/96 206
Deutsche Marks.................................................. 37,700 1.43958 01/24/96 (189)
Deutsche Marks.................................................. 181,519 1.43680 01/24/96 (561)
Deutsche Marks.................................................. 123,834 1.44173 02/29/96 (1,065)
Deutsche Marks.................................................. 258,862 1.44460 02/29/96 (2,736)
French Francs................................................... 208,864 4.96960 03/04/96 (3,612)
French Francs................................................... 169,344 5.01220 03/04/96 (4,346)
French Francs................................................... 733,072 4.96700 03/04/96 (12,315)
French Francs................................................... 339,959 4.97820 03/13/96 (6,505)
Irish Punts..................................................... 248,102 0.62393 01/29/96 324
Italian Lira.................................................... 238,604 1,628.90001 01/26/96 (5,625)
Italian Lira.................................................... 219,648 1,637.27600 01/26/96 (6,275)
New Zealand Dollars............................................. 228,250 1.54083 02/29/96 (1,100)
New Zealand Dollars............................................. 244,554 1.54536 02/29/96 (1,891)
Portuguese Escudos.............................................. 426,624 148.90000 02/21/96 3,195
Spanish Pesetas................................................. 19,713 122.99997 02/07/96 (200)
Spanish Pesetas................................................. 243,121 123.15000 02/07/96 (2,764)
Spanish Pesetas................................................. 246,407 123.25500 02/07/96 (3,009)
Swedish Krona................................................... 140,955 6.72850 01/05/96 (1,927)
Swedish Krona................................................... 242,464 6.69158 01/05/96 (1,996)
Swedish Krona................................................... 132,566 6.80770 01/05/96 (3,334)
Swedish Krona................................................... 316,432 7.03330 01/05/96 (17,858)
--------- --------
Total Contracts to Sell (Receivable amount $6,593,504).......... 6,655,554 (62,050)
--------- --------
The value of Contracts to Sell as a Percentage of Net Assets is
26.26%.
Total Open Forward Foreign Currency Contracts, Net....................................................... $(92,350)
========
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-4
<PAGE> 49
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ --------- ------------- ------------ --------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (88.6%)
- --------------------------------------------------
Australia (4.1%)
- ------------------
Australian Government:
7% due 4/15/00................................................... AUD 400,000 $ 290,304 2.4
12% due 11/15/01................................................. AUD 225,000 198,963 1.7
Austria (4.7%)
- ----------------
Republic of Austria, 3.75% due 2/3/09.............................. JPY 57,000,000 565,858 4.7
Canada (5.0%)
- ---------------
Canadian Government, 8.75% due 12/1/05............................. CAD 725,000 593,493 5.0
Denmark (4.9%)
- ----------------
Kingdom of Denmark, 9% due 11/15/00................................ DKK 2,900,000 581,202 4.9
France (6.9%)
- ---------------
French Treasury Bond (BTAN), 7% due 10/12/00....................... FRF 2,730,000 583,950 4.9
French O.A.T., 6% due 10/25/25..................................... FRF 1,400,000 237,724 2.0
Germany (10.3%)
- -----------------
Deutschland Republic, 6.25% due 1/4/24............................. DEM 1,890,000 1,229,706 10.3
Italy (9.9%)
- --------------
Italian Buoni Poliennali del Tesoro (BTPS):
10.5% due 9/1/05................................................. ITL 1,480,000,000 928,945 7.8
9.5% due 12/1/99................................................. ITL 415,000,000 255,785 2.1
New Zealand (2.0%)
- --------------------
New Zealand Government, 8% due 11/15/06............................ NZD 345,000 238,268 2.0
South Africa (2.9%)
- ---------------------
Republic of South Africa, 12% due 2/28/05.......................... ZAR 1,420,000 346,441 2.9
Spain (6.0%)
- --------------
Kingdom of Spain:
10% due 2/28/05.................................................. ESP 44,000,000 368,185 3.1
12.25% due 3/25/00............................................... ESP 37,900,000 343,335 2.9
Sweden (8.0%)
- ---------------
Swedish Government:
13% due 6/15/01.................................................. SEK 4,600,000 835,340 7.0
10.25% due 5/5/03................................................ SEK 700,000 116,398 1.0
United Kingdom (6.4%)
- -----------------------
United Kingdom Treasury, 8.5% due 12/7/05.......................... GBP 459,480 766,870 6.4
United States (17.5%)
- -----------------------
United States Treasury Note, 7.875% due 11/15/04................... USD 1,811,000 2,096,799 17.5
-----------
Total Government & Government Agency Obligations (cost $10,283,450).... 10,577,566
-----------
Supranational Bond (2.9%)
- -------------------------
International Bank of Reconstruction & Development, 4.75%
due 12/20/04 (cost $381,505)..................................... JPY 32,000,000 352,403 2.9
----------- -----
Total Fixed Income Investments (cost $10,664,955)...................... 10,929,969 91.5
----------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-5
<PAGE> 50
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
Principal Market % of Net
Short-Term Investments Currency Amount Value Assets
- --------------------- --------- ------------- ------------ --------
<S> <C> <C> <C> <C>
Treasury Bills (2.0%)
- ---------------------
Mexico (2.0%)
- ---------------
Mexican Cetes:..................................................... MXN -- -- 2.0
Effective yield 50.69%, due 2/22/96.............................. -- 1,037,930 $ 125,600 --
Effective yield 38.32%, due 1/18/96.............................. -- 850,000 108,428 --
----------- -----
Total Short-Term Investments (cost $250,619)........................... 234,028 2.0
----------- -----
<CAPTION>
Repurchase Agreement
- --------------------
<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank and Trust Company,
due January 2, 1996, for an effective yield of 5.55%,
collateralized by $385,000 U.S. Treasury Notes, 6% due 8/31/97
(market value of collateral is $397,374, including accrued
interest). (cost $389,180)......................................... 389,180 3.2
----------- -----
Total Investments (cost $11,304,754) @................................. 11,553,177 96.7
Other Assets and Liabilities........................................... 390,569 3.3
----------- -----
Net Assets............................................................. $11,943,746 100.0
=========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $11,943,746.
@ For Federal income tax purposes, cost is $11,322,742 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 379,852
Unrealized depreciation: (149,417)
--------
Net unrealized appreciation: $ 230,435
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-6
<PAGE> 51
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
--------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Contracts to Buy:
- -----------------
Australian Dollars.............................................. 91,792 1.35369 01/18/96 $ 560
Australian Dollars.............................................. 22,298 1.34409 01/18/96 (22)
British Pounds.................................................. 58,985 0.64331 01/16/96 (85)
British Pounds.................................................. 19,403 0.63788 01/16/96 (193)
British Pounds.................................................. 30,952 0.65104 02/21/96 232
Canadian Dollars................................................ 142,084 1.38171 02/20/96 1,678
Canadian Dollars................................................ 23,231 1.37765 02/20/96 207
Deutsche Marks.................................................. 150,102 1.44535 01/24/96 1,349
Deutsche Marks.................................................. 300,204 1.40712 01/24/96 (5,385)
Deutsche Marks.................................................. 209,445 1.38179 01/24/96 (7,665)
Deutsche Marks.................................................. 440,765 1.42920 02/29/96 (41)
French Francs................................................... 126,898 4.93335 01/31/96 1,222
Italian Lira.................................................... 37,855 1,629.00000 01/11/96 1,022
Italian Lira.................................................... 28,391 1,601.02010 01/11/96 284
Italian Lira.................................................... 116,718 1,610.69996 01/26/96 1,464
Japanese Yen.................................................... 296,286 102.44000 03/01/96 503
Japanese Yen.................................................... 231,617 100.07340 03/01/96 (5,075)
Japanese Yen.................................................... 196,041 100.13000 03/18/96 (3,699)
Spanish Pesetas................................................. 119,096 123.28000 02/07/96 1,478
Swedish Krona................................................... 362,239 6.66278 01/05/96 1,429
Swedish Krona................................................... 101,710 6.64000 01/05/96 54
--------- --------
Total Contracts to Buy (Payable amount $3,116,795).............. 3,106,112 (10,683)
--------- --------
The value of Contracts to Buy as a Percentage of Net Assets is
26.01%
<CAPTION>
Contracts to Sell:
- -----------------
<S> <C> <C> <C> <C>
Australian Dollars.............................................. 133,786 1.32675 01/18/96 1,883
Australian Dollars.............................................. 228,180 1.35007 01/18/96 (785)
British Pounds.................................................. 3,104 0.63355 01/16/96 52
British Pounds.................................................. 26,388 0.65028 01/16/96 (245)
British Pounds.................................................. 131,546 0.64309 02/21/96 629
British Pounds.................................................. 239,878 0.64677 02/21/96 (224)
Canadian Dollars................................................ 245,352 1.35418 02/20/96 2,032
Canadian Dollars................................................ 36,620 1.36755 02/20/96 (58)
Danish Kroner................................................... 221,603 5.48110 01/16/96 2,804
Danish Kroner................................................... 120,062 5.50000 01/16/96 1,102
Deutsche Marks.................................................. 117,537 1.44173 02/29/96 (1,011)
Deutsche Marks.................................................. 244,869 1.44460 02/29/96 (2,588)
French Francs................................................... 373,529 4.92000 01/31/96 (2,594)
French Francs................................................... 208,767 4.97000 01/31/96 (3,536)
French Francs................................................... 81,907 4.96700 03/04/96 (1,376)
French Francs................................................... 158,716 4.97820 03/13/96 (3,037)
French Francs................................................... 133,125 4.96540 03/18/96 (2,220)
Italian Lira.................................................... 157,729 1,588.47000 01/11/96 (345)
Italian Lira.................................................... 56,782 1,600.45012 01/11/96 (548)
Italian Lira.................................................... 91,483 1,609.60005 01/11/96 (1,398)
Italian Lira.................................................... 78,864 1,634.54994 01/11/96 (2,391)
Italian Lira.................................................... 20,338 1,606.51975 01/26/96 (202)
Italian Lira.................................................... 157,279 1,640.29199 01/26/96 (4,774)
Spanish Pesetas................................................. 262,834 121.82250 02/07/96 (156)
Spanish Pesetas................................................. 19,713 122.99997 02/07/96 (200)
Spanish Pesetas................................................. 208,090 123.15000 02/07/96 (2,366)
(continued on next page)
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-7
<PAGE> 52
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
Contracts to Sell: (U.S. Dollars) Price Date (Depreciation)
- ----------------- --------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Swedish Krona................................................... 22,603 6.58100 01/05/96 $ 190
Swedish Krona................................................... 80,716 6.70930 01/05/96 (876)
Swedish Krona................................................... 245,299 6.69158 01/05/96 (2,019)
Swedish Krona................................................... 132,566 6.80770 01/05/96 (3,334)
Swedish Krona................................................... 512,318 7.03330 01/05/96 (28,904)
--------- --------
Total Contracts to Sell (Receivable amount $4,695,088).......... 4,751,583 (56,495)
--------- --------
The value of Contracts to Sell as a Percentage of Net Assets is
39.78%.
Total Open Forward Foreign Currency Contracts, Net....................................................... $(67,178)
========
</TABLE>
- ------------------
See Note 1 to the financial statements.
================================================================================
SHORT FUTURES CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Expiration Market
Date Par Value Currency Value
---------- --------- -------- --------
<S> <C> <C> <C> <C>
Description
- -----------
US 30-year Treasury Bond (face $237,625).................................... 03/20/96 200,000 USD $242,250
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-8
<PAGE> 53
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ -------- --------- ------------ --------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (52.0%)
- --------------------------------------------------
United States (52.0%)
---------------------
United States Treasury Note:
7.625% due 2/15/25.................................................... USD 700,000 $ 852,031 14.2
5.75% due 10/31/00.................................................... USD 600,000 609,000 10.2
Tennessee Valley Authority Series A, 6.375% due 6/15/05................. USD 600,000 623,438 10.4
Sallie Mae, 7.5% due 3/8/00............................................. USD 350,000 375,047 6.2
Federal Home Loan Mortgage Corp., 7.125% due 7/21/99.................... USD 350,000 368,320 6.1
Federal National Mortgage Association:
7.85% due 9/10/98..................................................... USD 100,000 106,063 1.8
6.80% due 1/10/03..................................................... USD 90,000 95,330 1.6
Financial Assistance Corp., 9.375% due 7/21/03.......................... USD 75,000 91,102 1.5
----------
Total Government & Government Agency Obligations (cost $2,982,428).......... 3,120,331
----------
Supranational Bonds (9.4%)
- --------------------------
International Bank of Reconstruction & Development, 5.25% due 9/16/03... USD 350,000 339,780 5.7
Asian Development Bank, 8% due 4/30/01.................................. USD 200,000 220,747 3.7
----------
Total Supranational Bonds (cost $516,093)................................... 560,527
---------- -------
Total Fixed Income Investments (cost $3,498,521)............................ 3,680,858 61.4
---------- -------
<CAPTION>
Short-Term Investments
- ----------------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (16.5%)
- --------------------------------------------------
United States (16.5%)
---------------------
Federal Farm Credit Bank, effective yield 5.91% due 3/22/96 (cost
$987,738).............................................................. USD 1,000,000 987,577 16.5
<CAPTION>
Repurchase Agreement
- --------------------
<S> <C> <C> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company,
due January 2, 1996, for an effective yield of 5.55%, collateralized by
$1,225,000 U.S. Treasury Notes, 6.1% due 5/15/98 (market value of
collateral is $1,258,600, including accrued interest). (cost
$1,232,570)............................................................. 1,232,570 20.6
---------- -------
Total Investments (cost $5,718,829) @....................................... 5,901,005 98.5
Other Assets and Liabilities................................................ 91,440 1.5
---------- -------
Net Assets.................................................................. $5,992,445 100.0
========== =======
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $5,992,445.
@ For Federal income tax purposes, cost is $5,719,892 and appreciation (depreciation) is as follows:
Unrealized appreciation: $184,001
Unrealized depreciation: (2,888)
--------
Net unrealized appreciation: $181,113
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-9
<PAGE> 54
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Materials/Basic Industry (19.6%)
- ---------------------------------
Apasco S.A. ............................................................. MEX 140,000 $ 574,545 2.9
Cement
Cia de Minas Buenaventura "C"............................................ PERU 67,768 439,019 2.2
Metals-Non-Ferrous
Kimberly-Clark de Mexico, S.A. de C.V. "A"............................... MEX 28,000 423,273 2.1
Paper/Packaging
Companhia Siderurgica Nacional S.A. ..................................... BRZL 17,650,000 363,281 1.8
Metals-Steel
Cementos Argos S.A. ..................................................... COL 58,700 355,578 1.8
Cement
Industrias Penoles S.A. "CP"............................................. MEX 85,000 353,247 1.8
Metals-Non-Ferrous
Grupo Mexico S.A. "B" (d)................................................ MEX 82,000 347,169 1.8
Metals-Non-Ferrous
Angel Estrada y Cia S.A. (d)............................................. ARG 93,000 339,416 1.7
Paper/Packaging
Caemi Mineracao e Metalurgia S.A. Preferred.............................. BRZL 7,390,000 296,604 1.5
Metals-Steel
Grupo Industrial Durango, S.A. de C.V. "A" -- ADR (d) (a)................ MEX 28,450 188,481 0.9
Forest Products
Grupo Simec, S.A. de C.V. -- ADR (d) (a)................................. MEX 19,200 120,000 0.6
Metals-Steel
Venezolana de Cementos, S.A.C.A. "A"..................................... VENZ 60,000 73,816 0.4
Cement
Siderurgica Venezolana Sivensa (Sivensa) -- ADR (a)..................... VENZ 15,000 27,450 0.1
Metals-Steel
-----------
3,901,879
-----------
Services (16.0%)
- ----------------
Telecomunicacoes Brasileiras S.A. (Telebras) -- ADR (a).................. BRZL 12,000 568,500 2.9
Telephone Networks
Telefonica de Argentina S.A. "B" -- ADR (a).............................. ARG 16,000 436,000 2.2
Telephone Networks
CPT Telefonica De Peru "B"............................................... PERU 193,649 416,766 2.1
Telephone Networks
Grupo Televisa, S.A. de C.V. -- GDR (d) (a).............................. MEX 18,000 405,000 2.0
Broadcasting & Publishing
Lojas Americanas S.A. Preferred (d)...................................... BRZL 16,600,000 389,503 2.0
Retailers-Other
Ceteco Holding N.V. ..................................................... NETH 11,000 352,335 1.8
Retailers-Other
Santa Isabel S.A. -- ADR (d) (a)......................................... CHLE 14,100 338,400 1.7
Retailers-Food
Grupo Situr, S.A. de C.V. "B" (d)........................................ MEX 416,000 132,904 0.7
Leisure & Tourism
Grupo Marti S.A. (d)..................................................... MEX 218,000 75,875 0.4
Retailers-Other
Gran Cadena de Almacenes Colombianos S.A. -- 144A ADR # (a).............. COL 3,300 37,950 0.2
Retailers-Other
-----------
3,153,233
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-10
<PAGE> 55
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Finance (15.0%)
- ---------------
First Financial Caribbean Corp. ......................................... US 33,000 $ 618,750 3.1
Other Financial
Administradora de Fondos de Pensiones Provida S.A. -- ADR (a)............ CHLE 21,200 585,650 3.0
Other Financial
Banco Bradesco S.A. Preferred............................................ BRZL 58,781,950 514,198 2.6
Banks-Money Center
Banco Ganadero S.A. -- ADR (a)........................................... COL 33,400 434,200 2.2
Banks-Money Center
Grupo Financiero Banamex Accival, S.A. de C.V. "B" (d)................... MEX 240,000 402,701 2.0
Banks-Money Center
Banco LatinoAmericano de Exportaciones S.A. (Bladex) "E" (a)............. PAN 7,700 358,050 1.8
Other Financial
Grupo Financiero Serlin S.A. -- ADR (d) (a).............................. MEX 16,500 55,689 0.3
Banks-Money Center
-----------
2,969,238
-----------
Consumer Non-Durables (12.5%)
- -----------------------------
Companhia Tecidos Norte de Mina Preferred (d)............................ BRZL 1,560,000 521,766 2.6
Textiles & Apparel
Grupo Modelo S.A. "C".................................................... MEX 98,400 466,442 2.4
Beverages-Alcoholic
Companhia Cervejaria Brahma Preferred.................................... BRZL 915,000 376,669 1.9
Beverages-Alcoholic
Bavaria.................................................................. COL 134,610 366,933 1.9
Beverages-Alcoholic
Panamerican Beverages, Inc. "A" (a)...................................... MEX 10,800 345,600 1.7
Beverages-Non alcoholic
Industrias J B Duarte S.A. Preferred..................................... BRZL 215,600,000 155,315 0.8
Food
Cerveceria San Juan Common............................................... PERU 104,071 90,044 0.5
Beverages-Alcoholic
Ekco S.A. "CP" (d)....................................................... MEX 656,000 86,899 0.4
Household Products
Inversiones Aledo........................................................ VENZ 472,885 62,851 0.3
Food
-----------
2,472,519
-----------
Energy (9.1%)
- -------------
Enron Global Power & Pipelines L.L.C. ................................... US 20,000 497,500 2.5
Energy Source
Chilectra S.A. -- ADR (a)................................................ CHLE 8,300 410,850 2.1
Electrical & Gas Utilities
YPF S.A. -- ADR (a)...................................................... ARG 18,000 389,250 2.0
Oil
C.A. La Electricidad de Caracas.......................................... VENZ 479,500 328,202 1.7
Electrical & Gas Utilities
Industrias Ventane....................................................... VENZ 664,215 131,295 0.7
Gas Production & Distribution
Compania Boliviana de Energia Electrica (a).............................. BOL 700 23,275 0.1
Electrical & Gas Utilities
-----------
1,780,372
-----------
Multi Industry/Miscellaneous (3.8%)
- -----------------------------------
Alfa, S.A. de C.V........................................................ MEX 31,000 398,571 2.0
Conglomerate
Grupo Sidek, S.A. de C.V. -- ADR (d) (a)................................. MEX 157,300 353,925 1.8
Conglomerate
-----------
752,496
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-11
<PAGE> 56
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE LATIN AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ----------- ------------ --------
<S> <C> <C> <C> <C>
Consumer Durables (1.5%)
- ------------------------
Refrigeracao Parama S.A. Preferred....................................... BRZL 145,000,000 $ 289,493 1.5
Appliances & Household
----------- ----
Total Equity Investments (cost $16,180,920)................................ 15,319,230 77.5
----------- ----
<CAPTION>
No. of
Rights
-----------
<S> <C> <C> <C> <C>
Rights (0.0%)
- -------------
Banco Bradesco S.A. Preferred Rights, expire 1/24/96 (d) (cost $0)....... BRZL 1,374,440 2,263 0.0
Banks-Money Center
<CAPTION>
Principal
Short-Term Investments Currency Amount
- ---------------------- ------- -----------
<S> <C> <C> <C> <C>
Treasury Bills (12.4%)
- ----------------------
Mexico (12.4%)
- --------------
Mexican Cetes:........................................................... MXN -- -- 12.4
Effective yield 25.91%, due 1/18/96.................................... -- 13,738,960 1,762,714 --
Effective yield 61.61%, due 2/1/96..................................... -- 5,531,150 682,141 --
----------- ----
Total Short-Term Investments (cost $3,137,118)............................. 2,444,855 12.4
----------- ----
Repurchase Agreement
- --------------------
Dated December 29, 1995 with State Street Bank & Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$1,705,000 U.S. Treasury Notes, 6% due 8/31/97 (market value of
collateral is $1,759,800, including accrued interest). (cost
$1,724,797)............................................................ 1,724,797 8.7
----------- ----
Total Investments (cost $21,042,835) @..................................... 19,491,145 98.6
Other Assets and Liabilities............................................... 279,701 1.4
----------- ----
Net Assets................................................................. $19,770,846 100.0
=========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $19,770,846.
(a) U.S. currency denominated.
(d) Non-income producing security.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $21,171,991 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 1,694,978
Unrealized depreciation: (3,375,824)
-----------
Net unrealized depreciation: $(1,680,846)
===========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
---------
F-12
<PAGE> 57
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE LATIN AMERICA FUND
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
-----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS).............................. 5.9 5.9
Bolivia (BOL/BOL)................................ 0.1 0.1
Brazil (BRZL/BRL)................................ 17.6 17.6
Chile (CHLE/CLP)................................. 6.8 6.8
Colombia (COL/COP)............................... 6.1 6.1
Mexico (MEX/MXN)................................. 23.8 12.4 36.2
Netherlands (NETH/NLG)........................... 1.8 1.8
Panama (PAN/PND)................................. 1.8 1.8
Peru (PERU/PES).................................. 4.8 4.8
United States (US/USD)........................... 5.6 10.1 15.7
Venezuela (VENZ/VEB)............................. 3.2 3.2
---- ---- -----
Total............................................ 77.5 22.5 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $19,770,846.
==============================================================================
SHORT FUTURES CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Expiration No. of Market
Date Contracts Currency Value
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Description
- -----------
Brazilian Real Currency Futures, strike rate 0.9782 (face $2,555,750)... 01/31/96 25 USD $2,553,500
</TABLE>
- ------------------
See Note 1 to the Financial Statements.
The accompanying notes are an integral part of the financial statements.
---------
F-13
<PAGE> 58
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ -------- ------- ------------ -------
<S> <C> <C> <C> <C>
Finance (22.9%)
- ----------------
Swiss Bank Corp. -- Bearer........................................... SWTZ 1,569 $ 641,213 2.1
Banks-Money Center
National Australia Bank Ltd.......................................... AUSL 66,674 599,417 2.0
Banks-Money Center
Union Bank of Switzerland -- Bearer.................................. SWTZ 477 517,353 1.7
Banks-Money Center
CS Holding AG -- Registered.......................................... SWTZ 4,625 474,539 1.5
Banks-Money Center
Fortis Amev N.V...................................................... NETH 5,920 397,352 1.3
Other Financial
AEGON N.V............................................................ NETH 7,640 338,686 1.1
Insurance-Life
First Tennessee National Corp. ...................................... US 5,400 326,700 1.1
Banks-Regional
Mercury Asset Management Group PLC................................... UK 20,211 272,837 0.9
Investment Management
Internationale Nederlanden Groep N.V. ............................... NETH 3,995 267,397 0.9
Other Financial
Generale de Banque S.A. ............................................. BEL 754 267,271 0.9
Banks-Money Center
American General Corp................................................ US 7,400 258,075 0.8
Insurance-Life
ABN AMRO Holding N.V. ............................................... NETH 5,398 246,375 0.8
Banks-Regional
National Westminster Bank PLC........................................ UK 22,700 228,551 0.7
Banks-Money Center
Bank of Montreal..................................................... CAN 8,000 181,645 0.6
Banks-Regional
General Accident PLC................................................. UK 16,970 171,386 0.6
Insurance-Property-Casualty
Deutsche Bank AG..................................................... GER 3,500 165,908 0.5
Banks-Money Center
MAI PLC:............................................................. UK -- -- 0.5
Other Financial
Common............................................................. -- 22,500 106,195 --
Convertible Preferred, 5.9% till 12/31/49.......................... -- 31,196 54,822 --
Sun Hung Kai Properties Ltd.......................................... HK 18,400 150,517 0.5
Real Estate
Banco Popular Espanol S.A. .......................................... SPN 710 130,991 0.4
Banks-Money Center
Commercial Union PLC................................................. UK 13,382 130,475 0.4
Insurance-Multi-Line
Dresdner Bank AG..................................................... GER 4,540 121,265 0.4
Banks-Money Center
Henderson Investment Ltd. ........................................... HK 129,000 105,943 0.3
Real Estate
M & G Group PLC...................................................... UK 5,000 97,733 0.3
Investment Management
Banco de Santander S.A. ............................................. SPN 1,915 96,184 0.3
Banks-Money Center
Kredietbank N.V. .................................................... BEL 315 86,221 0.3
Banks-Regional
Amoy Properties Ltd. ................................................ HK 78,000 77,677 0.3
Real Estate
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-14
<PAGE> 59
-----------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ ------
<S> <C> <C> <C> <C>
Sparebanken NOR (Union Bank of Norway)............................... NOR 3,000 $ 77,540 0.2
Banks-Regional
Hopewell Holdings.................................................... HK 114,000 65,610 0.2
Real Estate
Societe Generale Paris............................................... FR 475 58,774 0.2
Banks-Money Center
Lloyds Abbey Life PLC................................................ UK 7,000 48,905 0.2
Insurance-Life
Gerrard & National Holdings PLC...................................... UK 7,080 48,805 0.2
Securities Broker
UAP Compagnie........................................................ FR 1,316 34,424 0.1
Insurance-Multi-Line
Sedgwick Group PLC................................................... UK 17,000 31,936 0.1
Insurance-Multi-Line
Realty Development Corp., Ltd. "A"................................... HK 10,000 31,557 0.1
Real Estate
Commerzbank AG....................................................... GER 130 30,734 0.1
Banks-Money Center
Henderson Land Development Co., Ltd. ................................ HK 5,000 30,135 0.1
Real Estate
Compagnie Financiere de Paribas S.A. ................................ FR 524 28,774 0.1
Other Financial
IKB Deutsche Industriebank AG........................................ GER 122 22,972 0.1
Banks-Regional
-----------
7,022,894
-----------
Energy (10.8%)
- --------------
Elektrowatt AG....................................................... SWTZ 1,910 699,366 2.3
Electrical & Gas Utilities
Electrabel S.A. ..................................................... BEL 1,880 450,024 1.5
Electrical & Gas Utilities
Royal Dutch Petroleum Co. ........................................... NETH 2,678 374,879 1.2
Oil
Mobil Corp........................................................... US 2,900 324,800 1.1
Oil
Exxon Corp. ......................................................... US 4,000 320,500 1.0
Oil
Reunies Electrobel & Tractebel S.A. ................................. BEL 763 315,214 1.0
Electrical & Gas Utilities
Pacific Gas and Electric Co.......................................... US 9,550 270,981 0.9
Electrical & Gas Utilities
Groupe Bruxelles Lambert S.A.:....................................... BEL -- -- 0.5
Oil
Common............................................................. -- 1,050 145,843 --
VVPR............................................................... -- 17 2,361 --
Elf Aquitaine........................................................ FR 1,920 141,678 0.5
Oil
Shell Transport & Trading Co., PLC................................... UK 6,530 86,327 0.3
Oil
British Gas PLC...................................................... UK 21,000 82,813 0.3
Gas Production & Distribution
Union Electrica Fenosa S.A. ......................................... SPN 5,000 30,103 0.1
Electrical & Gas Utilities
Iberdrola S.A. ...................................................... SPN 2,000 18,309 0.1
Electrical & Gas Utilities
-----------
3,263,198
-----------
Materials/Basic Industry (7.6%)
- -------------------------------
Broken Hill Proprietary Co., Ltd..................................... AUSL 40,241 568,080 1.9
Misc. Materials & Commodities
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-15
<PAGE> 60
--------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ --------- -------- ------------ --------
<S> <C> <C> <C> <C>
Solvay S.A. "A"...................................................... BEL 751 $ 406,015 1.3
Chemicals
Amcor Ltd............................................................ AUSL 56,200 396,686 1.3
Paper/Packaging
Akzo Nobel N.V. ..................................................... NETH 3,069 355,648 1.2
Chemicals
Monsanto Co. ........................................................ US 2,900 355,250 1.2
Chemicals
RWE AG............................................................... GER 480 174,071 0.6
Misc. Materials & Commodities
BASF AG.............................................................. GER 100 22,282 0.1
Chemicals
-----------
2,278,032
-----------
Consumer Non-Durables (6.1%)
- ----------------------------
Philip Morris Cos., Inc.............................................. US 3,700 334,850 1.1
Food
Avon Products, Inc. ................................................. US 4,000 301,500 1.0
Personal Care/Cosmetics
Universal Corp....................................................... US 12,200 297,375 1.0
Tobacco
Noble China (d)...................................................... CAN 67,900 273,530 0.9
Beverages-Alcoholic
Brown-Forman Corp. "B"............................................... US 6,200 226,300 0.7
Beverages-Alcoholic
Fleming Cos., Inc. .................................................. US 8,800 181,500 0.6
Food
Booker PLC........................................................... UK 13,800 77,774 0.3
Food
Bass PLC............................................................. UK 6,600 73,624 0.2
Beverages-Alcoholic
Associated British Foods Group PLC................................... UK 8,400 48,123 0.2
Food
Dairy Farm International Holdings Ltd. (a)........................... HK 36,000 33,120 0.1
Food
-----------
1,847,696
-----------
Services (6.0%)
- ---------------
Telecom Corporation of New Zealand Ltd. ............................. NZ 109,160 470,825 1.5
Telephone Networks
Dun & Bradstreet Corp. .............................................. US 4,800 310,800 1.0
Broadcasting & Publishing
McGraw-Hill, Inc. ................................................... US 3,490 304,066 1.0
Broadcasting & Publishing
Royal PTT Nederland N.V. ............................................ NETH 5,915 215,312 0.7
Telephone Networks
Tele Danmark AS "B".................................................. DEN 2,570 140,282 0.5
Telephone Networks
THORN EMI PLC........................................................ UK 5,500 129,494 0.4
Leisure & Tourism
British Telecommunications PLC....................................... UK 19,546 107,425 0.3
Telephone Networks
Cathay Pacific Airways............................................... HK 57,000 86,989 0.3
Transportation-Airlines
Granada PLC, Convertible Preferred, 7.5% till 4/30/03................ UK 23,482 80,388 0.3
Leisure & Tourism
-----------
1,845,581
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-16
<PAGE> 61
---------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ---------- -------- ----------- -------
<S> <C> <C> <C> <C>
Capital Goods (4.1%)
- --------------------
General Electric PLC................................................. UK 51,900 $ 286,050 0.9
Aerospace/Defense
Mannesmann AG........................................................ GER 770 245,247 0.8
Machinery & Engineering
Siemens AG........................................................... GER 427 233,765 0.8
Telecom Equipment
Lockheed Martin Corp. ............................................... US 2,726 215,354 0.7
Aerospace/Defense
Rolls-Royce PLC...................................................... UK 42,548 124,850 0.4
Aerospace/Defense
BICC PLC............................................................. UK 17,200 73,703 0.2
Industrial Components
Thomson CSF S.A...................................................... FR 3,275 73,075 0.2
Aerospace/Defense
Trafalgar House PLC:................................................. UK -- -- 0.1
Machinery & Engineering
Convertible Preferred, 6% due 1/31/49.............................. -- 44,800 38,234 --
Common............................................................. -- 4,800 2,068 --
-----------
1,292,346
-----------
Health Care (2.8%)
- ------------------
Bristol Myers Squibb Co.............................................. US 6,000 515,250 1.7
Pharmaceuticals
Bayer AG............................................................. GER 1,250 329,957 1.1
Pharmaceuticals
-----------
845,207
-----------
Multi Industry/Miscellaneous (1.8%)
- -----------------------------------
VEBA AG.............................................................. GER 5,400 229,347 0.7
Conglomerate
Pacific Dunlop Ltd. ................................................. AUSL 85,000 198,938 0.6
Multi-Industry
Hutchison Whampoa.................................................... HK 24,000 146,197 0.5
Conglomerate
-----------
574,482
-----------
Consumer Durables (1.1%)
- ------------------------
GKN PLC.............................................................. UK 28,600 345,900 1.1
Auto Parts
Technology (0.4%)
- -----------------
Alcatel Alsthom Compagnie Generale d'Electricite..................... FR 1,290 111,389 0.4
Telecom Technology
----------- -----
Total Equity Investments (cost $16,627,956)............................ 19,426,725 63.6
----------- -----
<CAPTION>
Principal
Fixed Income Investments Currency Amount
- ------------------------ -------- -----------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (30.4%)
- --------------------------------------------------
Canada (0.7%)
-------------
Canadian Government, 8.75% due 12/1/05............................. CAD 250,000 204,653 0.7
Denmark (1.1%)
--------------
Kingdom of Denmark, 8% due 3/15/06................................. DKK 1,700,000 322,881 1.1
Germany (7.9%)
--------------
Deutschland Republic:
6.75% due 4/22/03................................................ DEM 1,500,000 1,106,772 3.6
6.25% due 1/4/24................................................. DEM 1,070,000 696,183 2.3
Treuhandanstalt, 6.375% due 7/1/99................................. DEM 500,000 369,586 1.2
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-17
<PAGE> 62
----------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
Principal % of Net
Fixed Income Investments Currency Amount Market Value Assets
- ------------------------ -------- ---------- ------------ -------
<S> <C> <C> <C> <C>
Bundesschatzanweisungen, 6.875% due 12/2/98........................ DEM 350,000 $ 261,371 0.8
Italy (2.8%)
------------
Italian Buoni Poliennali del Tesoro (BTPS):
8.5% due 8/1/04.................................................. ITL 1,100,000,000 613,328 2.0
10.5% due 4/15/98................................................ ITL 370,000,000 235,096 0.8
New Zealand (1.3%)
------------------
New Zealand Government, 8% due 4/15/04............................. NZD 600,000 410,505 1.3
Spain (1.3%)
---------------
Kingdom of Spain, 8% due 5/30/04................................... ESP 55,000,000 411,241 1.3
Sweden (2.3%)
--------------
Swedish Government, 6% due 2/9/05.................................. SEK 5,500,000 704,164 2.3
United Kingdom (4.4%)
---------------------
United Kingdom Treasury:
6% due 8/10/99................................................... GBP 375,000 569,654 1.9
6.75% due 11/26/04............................................... GBP 70,000 104,060 0.3
Conversion, 9.5% due 4/18/05..................................... GBP 375,000 660,624 2.2
United States (8.6%)
--------------------
United States Treasury Note:
7.25% due 5/15/04................................................ USD 1,060,000 1,176,600 3.8
7.5% due 2/15/05................................................. USD 250,000 283,438 0.9
6.5% due 8/15/05................................................. USD 105,000 111,727 0.4
United States Treasury Bond:
6.25% due 8/15/23................................................ USD 645,000 660,521 2.2
6.875% due 8/15/25............................................... USD 350,000 392,875 1.3
-----------
Total Government & Government Agency Obligations (cost $8,508,745)..... 9,295,279
-----------
Corporate Bonds (4.3%)
- ----------------------
Germany (1.9%)
--------------
Siemens Capital Corp., 8% due 6/24/02 (t).......................... USD 180,000 244,800 0.8
Commerzbank AG, Convertible Bond, 8.4% due 12/31/00 +.............. DEM 187,000 193,664 0.6
Deutsche Bank AG, 9% due 12/31/02 (t).............................. DEM 175,000 143,403 0.5
IKB Deutsche Industriebank, 6.45% due 3/31/06...................... DEM 1,500 1,014 0.0
United Kingdom (2.4%)
---------------------
Daily Mail & General Trust, Convertible Bond, 5.75% due 9/26/03.... GBP 167,000 333,170 1.1
Land Securities PLC, Convertible Bond, 9.375% due 7/31/04.......... GBP 140,000 245,397 0.8
Elf Enterprises Finance PLC, 8.75% due 6/27/06..................... GBP 65,000 100,346 0.3
Reckitt & Colman Capital, Convertible Bond, 9.5% due 3/31/05....... GBP 22,000 55,504 0.2
-----------
Total Corporate Bonds (cost $1,265,830)................................ 1,317,298
----------- -----
Total Fixed Income Investments (cost $9,774,575)....................... 10,612,577 34.7
----------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-18
<PAGE> 63
-----------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
No. of % of Net
Warrants (0.0%) Country Warrants Market Value Assets
- ---------------- ------- --------- ------------ -------
<S> <C> <C> <C> <C>
Henderson Investment Warrants, expire 3/31/96 (d) (cost $0).......... HK 9,400 $ 145 0.0
Investment Management
<CAPTION>
Repurchase Agreement
- ---------------------
<S> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company,
due January 2, 1996, for an effective yield of 5.55%,
collateralized by $190,000 U.S. Treasury Notes, 6% due 8/31/97
(market value of collateral is $196,107, including accrued
interest). (cost $191,089)......................................... 191,089 0.6
----------- -----
Total Investments (cost $26,593,620) @................................. 30,230,536 98.9
Other Assets and Liabilities........................................... 334,865 1.1
----------- -----
Net Assets............................................................. $30,565,401 100.0
=========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $30,565,401.
(d) Non-income producing security.
(a) U.S. currency denominated.
+ The coupon rate shown on floating rate note represents the rate at period end.
(t) Issued with detachable warrants or value recovery rights. The current market value of each warrant or right is
zero.
@ For Federal income tax purposes, cost is $26,605,056 and appreciation (depreciation) is as follows:
Unrealized appreciation: $4,234,758
Unrealized depreciation: (609,278)
----------
Net unrealized appreciation: $3,625,480
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-19
<PAGE> 64
----------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE GROWTH & INCOME FUND
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
--------------------------------------------
Fixed Income,
Rights & Short-Term
Country (Country Code/Currency Code) Equity Warrants & Other Total
------------------------------------ ------ ------------- ----------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD)................ 5.8 5.8
Belgium (BEL/BEF)................... 5.5 5.5
Canada (CAN/CAD).................... 1.5 0.7 2.2
Denmark (DEN/DKK)................... 0.5 1.1 1.6
France (FR/FRF)..................... 1.5 1.5
Germany (GER/DEM)................... 5.2 9.8 15.0
Hong Kong (HK/HKD).................. 2.4 2.4
Italy (ITLY/ITL).................... 2.8 2.8
Netherlands (NETH/NLG).............. 7.2 7.2
New Zealand (NZ/NZD)................ 1.5 1.3 2.8
Norway (NOR/NOK).................... 0.2 0.2
Spain (SPN/ESP)..................... 0.9 1.3 2.2
Sweden (SWDN/SEK)................... 2.3 2.3
Switzerland (SWTZ/CHF).............. 7.6 7.6
United Kingdom (UK/GBP)............. 8.9 6.8 15.7
United States (US/USD).............. 14.9 8.6 1.7 25.2
---- ---- --- -----
Total 63.6 34.7 1.7 100.0
==== ==== === =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $30,565,401.
===================================================================
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
--------------- -------- --------- --------------
<S> <C> <C> <C> <C>
Contracts to Sell:
- -----------------
Deutsche Marks........................................................ 1,504,197 1.42738 02/29/96 $ 2,059
French Francs......................................................... 40,939 4.91125 02/06/96 (216)
French Francs......................................................... 179,584 4.88280 02/16/96 67
Netherland Guilders................................................... 644,995 1.58000 02/15/96 6,904
Swiss Francs.......................................................... 462,477 1.12168 02/20/96 10,029
--------- --------
Total Contracts to Sell (Receivable amount $2,851,035)................ 2,832,192 18,843
--------- --------
The value of Contracts to Sell as a Percentage of Net Assets is 9.27%.
Total Open Forward Foreign Currency Contracts, Net......................................................... $ 18,843
========
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-20
<PAGE> 65
--------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------ ------------ -------
<S> <C> <C> <C> <C>
Services (51.0%)
- ----------------
Call-Net Enterprises, Inc. "B" (d)....................................... CAN 233,000 $ 2,133,228 4.2
Telephone-Long Distance
Tele Danmark AS -- ADR (a)............................................... DEN 72,500 2,002,813 3.9
Telephone Networks
Tel-Save Holdings, Inc. (d).............................................. US 125,000 1,734,375 3.4
Telephone-Long Distance
WinStar Communications, Inc. (d)......................................... US 100,000 1,712,500 3.4
Wireless Communications
Telefonica de Espana -- ADR (a).......................................... SPN 40,000 1,675,000 3.3
Telephone Networks
IntelCom Group, Inc. (d)................................................. US 125,000 1,546,875 3.0
Telephone-Regional/Local
Stet Di Risp............................................................. ITLY 757,000 1,545,522 3.0
Telephone Networks
DDI Corp. ............................................................... JPN 187 1,449,612 2.9
Wireless Communications
Centennial Cellular Corp. "A" (d)........................................ US 71,500 1,224,438 2.4
Wireless Communications
Vodafone Group PLC -- ADR (a)............................................ UK 30,000 1,057,500 2.1
Wireless Communications
SPT Telecom (d).......................................................... CZCH 11,000 1,039,721 2.0
Telephone Networks
WorldCom, Inc. (d)....................................................... US 28,144 992,076 2.0
Telephone-Long Distance
Telecomunicacoes Brasileiras S.A. (Telebras) -- ADR (a).................. BRZL 20,876 989,001 2.0
Telephone Networks
Royal PTT Nederland N.V. ................................................ NETH 22,343 813,310 1.6
Telephone Networks
United International Holdings, Inc. "A" (d).............................. US 55,000 811,250 1.6
Cable Television
Century Telephone Enterprises, Inc. ..................................... US 25,500 809,625 1.6
Telephone-Regional/Local
CellStar Corp. (d)....................................................... US 30,000 780,000 1.5
Wholesale & International Trade
Telephone and Data Systems, Inc. ........................................ US 19,200 758,400 1.5
Wireless Communications
PT Indonesia Satellite (Indosat) -- ADR (a).............................. INDO 20,000 730,000 1.4
Telephone-Long Distance
Philippine Long Distance Telephone Co. -- ADR (a)........................ PHIL 10,000 541,250 1.1
Telephone-Long Distance
Brightpoint, Inc. (d).................................................... US 25,000 353,125 0.7
Wholesale & International Trade
Pakistan Telecommunications Co., Ltd. -- 144A GDR # (d) (a).............. PAK 3,300 280,500 0.6
Telephone Networks
Total Access Communication Public Co., Ltd. -- 144A # (d) (a)............ THAI 39,600 257,400 0.5
Wireless Communications
Gilat Satellite Networks Ltd. (d)........................................ US 10,000 252,500 0.5
Telecom-Other
Grupo Iusacell, S.A. de C.V. "D" -- ADR (d) (a).......................... MEX 22,000 176,000 0.3
Wireless Communications
Matav (Hungarian Telecommunications Co., Ltd.) // (d).................... HGRY 1,000 150,095 0.3
Telephone Networks
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-21
<PAGE> 66
------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ ------
<S> <C> <C> <C> <C>
Wireless One, Inc. (d)................................................... US 5,000 $ 82,500 0.2
Wireless Communications
-----------
25,898,616
-----------
Capital Goods (28.5%)
- ---------------------
DSC Communications Corp. (d)............................................. US 66,100 2,437,438 4.8
Telecom Equipment
Mannesmann AG............................................................ GER 6,740 2,146,703 4.2
Machinery & Engineering
Spectrian Corp. (d)...................................................... US 80,000 1,780,000 3.5
Telecom Equipment
Nokia AB Preferred -- ADR (a)............................................ FIN 37,000 1,438,375 2.8
Telecom Equipment
Dialogic Corp. (d)....................................................... US 35,000 1,347,500 2.7
Telecom Equipment
Pairgain Technologies, Inc. (d).......................................... US 20,000 1,095,000 2.2
Telecom Equipment
Glenayre Technologies, Inc. (d).......................................... US 16,000 996,000 2.0
Telecom Equipment
BroadBand Technologies, Inc. (d)......................................... US 50,000 812,500 1.6
Telecom Equipment
Benefon Oy (d)........................................................... FIN 25,000 621,218 1.2
Telecom Equipment
Microwave Power Devices, Inc. (d)........................................ US 50,000 556,250 1.1
Telecom Equipment
Allgon AB "B" Free....................................................... SWDN 33,000 457,470 0.9
Telecom Equipment
PCS Wireless, Inc. (d)................................................... CAN 200,000 257,819 0.5
Telecom Equipment
Unitech Industries, Inc. // (d).......................................... US 100,000 215,625 0.4
Telecom Equipment
Champion Technology Holdings............................................. HK 1,889,849 197,980 0.4
Telecom Equipment
Cincinnati Microwave, Inc. (d)........................................... US 25,000 112,500 0.2
Telecom Equipment
-----------
14,472,378
-----------
Technology (6.8%)
- -----------------
DSP Communications, Inc. (d)............................................. US 50,000 2,181,250 4.3
Telecom Technology
Cisco Systems, Inc. (d).................................................. US 17,000 1,268,625 2.5
Networking
-----------
3,449,875
-----------
Consumer Durables (2.2%)
- ------------------------
Three-Five Systems, Inc. (d)............................................. US 61,800 1,042,875 2.1
Consumer Electronics
Audiovox Corp. "A" (d)................................................... US 6,000 32,625 0.1
Consumer Electronics
-----------
1,075,500
-----------
Materials/Basic Industry (1.4%)
- -------------------------------
PT Bakrie and Brothers................................................... INDO 400,000 726,795 1.4
Building Materials & Components
Consumer Non-Durables (0.0%)
- -------------------------------
Bavaria.................................................................. COL 3,000 8,178 0.0
Beverages -- Alcoholic
-----------
Total Equity Investments (cost $41,446,599)................................ 45,631,342 89.9
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-22
<PAGE> 67
-------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
<TABLE>
<CAPTION>
% of Net
Market Value Assets
------------ --------
<S> <C> <C>
Repurchase Agreement
- --------------------
Dated December 29, 1995, with State Street Bank & Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$4,250,000 U.S. Treasury Notes, 6.125% due 5/15/98 (market value of
collateral is $4,366,571, including accrued interest). (cost
$4,278,978).......................................................... $ 4,278,978 8.4
----------- -----
Total Investments (cost $45,725,577) @................................... 49,910,320 98.3
Other Assets and Liabilities............................................. 867,755 1.7
----------- -----
Net Assets............................................................... $50,778,075 100.0
=========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $50,778,075.
(d) Non-income producing security.
(a) U.S. currency denominated.
// Restricted securities. At December 31, 1995, the fund owned the following restricted securities constituting 0.7%
of net assets which may not be publicly sold without registration under the Securities Act of 1933 (Note 1).
Additional information on the restricted securities is as follows:
</TABLE>
<TABLE>
<CAPTION>
Fair Value
Acquisition Acquisition Per Share at
Date Shares Cost 12/31/95
----------- ------- ----------- -------------
<S> <C> <C> <C> <C>
Unitech Industries, Inc............................. 08/24/95 100,000 $ 1,200,000 $ 2.16
Matav............................................... 07/20/94 1,000 $ 247,819 $150.10
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $45,757,682 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 8,704,830
Unrealized depreciation: (4,552,192)
-----------
Net unrealized appreciation: $ 4,152,638
===========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
---------
F-23
<PAGE> 68
------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
-------------------------------------------------- ------ ----------- -----
<S> <C> <C> <C>
Brazil (BRZL/BRL)................................. 2.0 2.0
Canada (CAN/CAD).................................. 4.7 4.7
Czech Republic (CZCH/SK).......................... 2.0 2.0
Denmark (DEN/DKK)................................. 3.9 3.9
Finland (FIN/FIM)................................. 4.0 4.0
Germany (GER/DEM)................................. 4.2 4.2
Hong Kong (HK/HKD)................................ 0.4 0.4
Hungary (HGRY/HUF)................................ 0.3 0.3
Indonesia (INDO/IDR).............................. 2.8 2.8
Italy (ITLY/ITL).................................. 3.0 3.0
Japan (JPN/JPY)................................... 2.9 2.9
Mexico (MEX/MXN).................................. 0.3 0.3
Netherlands (NETH/NLG)............................ 1.6 1.6
Pakistan (PAK/PKR)................................ 0.6 0.6
Philippines(PHIL/PHP)............................. 1.1 1.1
Spain (SPN/ESP)................................... 3.3 3.3
Sweden (SWDN/SEK)................................. 0.9 0.9
Thailand (THAI/THB)............................... 0.5 0.5
United Kingdom (UK/GBP)........................... 2.1 2.1
United States (US/USD)............................ 49.3 10.1 59.4
---- ---- -----
Total............................................. 89.9 10.1 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $50,778,075.
========================================================================
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Date Date (Depreciation)
--------------- ------------ --------- --------------
<S> <C> <C> <C> <C>
Contracts to Sell:
- -----------------
Deutsche Marks.................................................. 97,741 1.37500 01/24/96 $ 4,077
Deutsche Marks.................................................. 979,477 1.42738 02/29/96 1,341
Italian Lira.................................................... 882,124 1,613.30000 02/16/96 (9,726)
Japanese Yen.................................................... 106,281 101.50000 02/09/96 1,108
Japanese Yen.................................................... 275,154 99.00000 02/14/96 9,694
Japanese Yen.................................................... 121,966 98.95800 02/14/96 4,351
Japanese Yen.................................................... 146,655 99.80000 02/29/96 3,646
Netherland Guilders............................................. 375,725 1.58068 02/15/96 3,858
Netherland Guilders............................................. 250,484 1.58000 02/15/96 2,681
--------- -------
Total Contracts to Sell (Receivable amount $3,256,637).......... 3,235,607 $21,030
--------- -------
The value of Contracts to Sell as a percentage of Net Assets is
6.37%
Total Open Forward Foreign Currency Contracts, Net........................................................ $21,030
=======
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-24
<PAGE> 69
-------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ --------
<S> <C> <C> <C> <C>
Finance (22.8%)
- ---------------
Administradora de Fondos de Pensiones Provida S.A. -- ADR (a)............ CHLE 18,800 $ 519,350 5.8
Other Financial
Peregrine Investment Holdings Ltd. ...................................... HK 305,000 394,465 4.4
Investment Management
First Financial Caribbean Corp. ......................................... US 19,500 365,625 4.1
Other Financial
Banco de Colombia -- 144A GDR # (a)...................................... COL 44,800 224,000 2.5
Banks-Money Center
PT Lippo Securities -- Foreign........................................... INDO 616,500 215,937 2.4
Securities Broker
Robinson's Land Corp. "B" (d)............................................ PHIL 1,400,000 197,634 2.2
Real Estate
House of Investments, Inc. .............................................. PHIL 606,000 129,477 1.4
Other Financial
----------
2,046,488
----------
Multi Industry/Miscellaneous (20.3%)
- ------------------------------------
BHI Corp. (a)............................................................ BLZ 19,000 299,250 3.3
Conglomerate
Jardine Matheson Holding Ltd. (a)........................................ HK 39,400 269,890 3.0
Conglomerate
Corticeira Amorim, S.A. ................................................. PORT 22,650 261,626 2.9
Miscellaneous
John Keells Holdings Ltd. -- ADR (a)..................................... LUX 48,400 217,800 2.4
Conglomerate
Malbak Ltd. ............................................................. SAFR 25,000 173,206 1.9
Conglomerate
Harvard Investment Co. Growth Fund....................................... CZCH 4,833 121,455 1.4
Country Funds
Mahindra & Mahindra Ltd. -- GDR (d) (a).................................. IND 8,000 102,960 1.1
Miscellaneous
Pakistan Investment Fund, Inc. .......................................... US 19,000 99,750 1.1
Country Funds
Aboitiz Equity Ventures, Inc. (d)........................................ PHIL 500,000 95,383 1.1
Conglomerate
Grasim Industries Ltd. -- 144A GDR Tranche 2 # (d) (a)................... IND 4,000 78,000 0.9
Miscellaneous
Harvardsky Dividendovy Investment Fund................................... CZCH 2,500 57,293 0.6
Country Funds
Czeske Energeticke Zavody (CEZ AS) (d)................................... CZCH 1,500 54,237 0.6
Miscellaneous
----------
1,830,850
----------
Consumer Non-Durables (12.5%)
- -----------------------------
Noble China (d).......................................................... CAN 91,800 369,809 4.1
Beverages-Alcoholic
Mantex -- ADR (a)........................................................ VENZ 50,000 225,000 2.5
Textiles & Apparel
Amway Asia Pacific Ltd. (a).............................................. HK 6,300 224,438 2.5
Household Products
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-25
<PAGE> 70
--------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EMERGING MARKETS FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ -------
<S> <C> <C> <C> <C>
South African Breweries Ltd. ............................................ SAFR 5,000 $ 183,153 2.0
Beverages-Alcoholic
Companhia Cervejaria Brahma Preferred.................................... BRZL 300,000 123,498 1.4
Beverages-Alcoholic
----------
1,125,898
----------
Services (11.1%)
- ----------------
Ceteco Holding N.V. ..................................................... NETH 9,000 288,274 3.2
Retailers-Other
Dickson Concepts International Ltd. ..................................... HK 250,000 232,799 2.6
Wholesale & International Trade
Pakistan Telecommunications Co., Ltd. -- 144A GDR # (d) (a).............. PAK 2,300 195,500 2.2
Telephone Networks
Wah Kwong Shipping Holdings Ltd. ........................................ HK 134,500 193,087 2.2
Transportation-Shipping
SPT Telecom (d).......................................................... CZCH 900 85,068 0.9
Telephone Networks
----------
994,728
----------
Materials/Basic Industry (6.0%)
- -------------------------------
Siderurgica Venezolana Sivensa (Sivensa) -- ADR (a)...................... VENZ 156,000 285,480 3.2
Metals-Steel
SA Iron & Steel Industrial Corp., Ltd. (ISCOR)........................... SAFR 150,000 134,998 1.5
Metals-Steel
Venezolana de Pulpa Y Papel -- 144A GDR # (a)............................ VENZ 56,000 112,000 1.2
Forest Products
Indo Gulf Fertilizer & Chemical -- GDR (a)............................... IND 7,500 9,000 0.1
Chemicals
----------
541,478
----------
Health Care (5.8%)
- ------------------
PT Darya Varia Laboratoria............................................... INDO 286,000 519,658 5.8
----------
Pharmaceuticals
Energy (4.2%)
- -------------
Compania Boliviana de Energia Electrica (a).............................. BOL 10,800 359,100 4.0
Electrical & Gas Utilities
Czech Power Co. -- GDR (d) (a)........................................... CZCH 500 17,750 0.2
Electrical & Gas Utilities
----------
376,850
----------
Consumer Durables (4.1%)
- ------------------------
Singer Co. N.V. (a)...................................................... HK 9,300 259,238 2.9
Appliances & Household
Tata Engineering and Locomotive Co. Ltd. -- GDR (a)...................... IND 8,000 105,040 1.2
Automobiles
----------
364,278
----------
Capital Goods (1.3%)
- --------------------
Hindalco Industries Ltd. -- 144A GDR # (d) (a)........................... IND 3,500 116,375 1.3
Industrial Components
---------- -----
Total Equity Investments (cost $7,723,035)................................. 7,916,603 88.1
---------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-26
<PAGE> 71
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EMERGING MARKETS FUND
<TABLE>
<CAPTION>
% of Net
Repurchase Agreement Market Value Assets
- -------------------- ------------ --------
<S> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due
January 2, 1996 for an effective yield of 5.55%, collateralized by
$1,020,000 U.S. Treasury Notes, 6.125% due 5/15/98 (market value of
collateral is $1,047,977, including accrued interest. (cost
$1,027,475)............................................................ $1,027,475 11.5
---------- -----
Total Investments (cost $8,750,510)........................................ 8,944,078 99.6
Other Assets and Liabilities............................................... 38,683 0.4
---------- -----
Net Assets................................................................. $8,982,761 100.0
========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $8,982,761.
(a) U.S. currency denominated.
(d) Non-income producing security.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $8,764,187 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 729,513
Unrealized depreciation: (549,622)
---------
Net unrealized appreciation $ 179,891
=========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
==============================================================================
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
-------------------------------------------------- ------ ----------- -----
<S> <C> <C> <C>
Belize (BLZ/BZD).................................. 3.3 3.3
Bolivia (BOL/BOL)................................. 4.0 4.0
Brazil (BRZL/BRL)................................. 1.4 1.4
Canada (CAN/CAD).................................. 4.1 4.1
Chile (CHLE/CLP).................................. 5.8 5.8
Colombia (COL/COP)................................ 2.5 2.5
Czech Republic (CZCH/CSK)......................... 3.7 3.7
Hong Kong (HK/HKD)................................ 17.6 17.6
India (IND/INR)................................... 4.6 4.6
Indonesia (INDO/IDR).............................. 8.2 8.2
Luxembourg (LUX/LUF).............................. 2.4 2.4
Netherlands (NETH/NLG)............................ 3.2 3.2
Pakistan (PAK/PKR)................................ 2.2 2.2
Philippines (PHIL/PHP)............................ 4.7 4.7
Portugal (PORT/PTE)............................... 2.9 2.9
South Africa (SAFR/ZAR)........................... 5.4 5.4
United States (US/USD)............................ 5.2 11.9 17.1
Venezuela (VENZ/VEB).............................. 6.9 6.9
---- ---- -----
Total............................................. 88.1 11.9 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $8,982,761.
The accompanying notes are an integral part of the financial statements.
---------
F-27
<PAGE> 72
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ --------
<S> <C> <C> <C> <C>
Energy (21.8%)
- ---------------
Korea Electric Power Corp. -- ADR (a)....................................... KOR 1,800 $ 48,150 3.0
Electrical & Gas Utilities
Compania Boliviana de Energia Electrica (a)................................. BOL 1,200 39,900 2.5
Electrical & Gas Utilities
Capex S.A. ................................................................. ARG 5,000 36,496 2.3
Electrical & Gas Utilities
EVN Energie-Versorgung Niederoesterreich AG................................. ASTRI 260 35,738 2.2
Electrical & Gas Utilities
Empresa Nacional de Electridad S.A. -- ADR (a).............................. SPN 600 34,350 2.2
Electrical & Gas Utilities
Companhia Energetica de Minas Gerais (Cemig) -- ADR (d) (a)................. BRZL 1,489 32,572 2.1
Electrical & Gas Utilities
Enron Global Power & Pipelines L.L.C. ...................................... US 1,300 32,338 2.0
Electrical & Gas Utilities
Consolidated Electric Power Asia Ltd. ...................................... HK 14,000 25,440 1.6
Electrical & Gas Utilities
Edison S.p.A. .............................................................. ITLY 5,000 21,438 1.4
Electrical & Gas Utilities
Chilgener S.A. -- ADR (a)................................................... CHLE 700 17,500 1.1
Electrical & Gas Utilities
MetroGas S.A. -- ADR (a).................................................... ARG 1,500 14,625 0.9
Electrical & Gas Utilities
AES China Generating Co., Ltd. "A" (d)...................................... US 1,000 8,000 0.5
Electrical & Gas Utilities
--------
346,547
--------
Capital Goods (18.6%)
- ----------------------
Nokia AB Preferred -- ADR (a)............................................... FIN 1,300 50,536 3.2
Telecom Equipment
Mannesmann AG............................................................... GER 140 44,590 2.8
Machinery & Engineering
ASEA AB "B" Free............................................................ SWDN 400 38,936 2.4
Electrical Plant/Equipment
Caterpillar, Inc. .......................................................... US 600 35,250 2.2
Machinery & Engineering
Fluor Corp. ................................................................ US 500 33,000 2.1
Construction
Allgon AB "B" Free.......................................................... SWDN 2,000 27,725 1.7
Telecom Equipment
DSC Communications Corp. (d)................................................ US 600 22,125 1.4
Telecom Equipment
United Engineers Ltd. ...................................................... MAL 3,000 19,140 1.2
Construction
E.R.G. Ltd. ................................................................ AUSL 11,121 13,303 0.8
Electrical Plant/Equipment
BroadBand Technologies, Inc. (d)............................................ US 500 8,125 0.5
Telecom Equipment
C & P Homes, Inc. (d)....................................................... PHIL 5,300 3,893 0.3
Construction
--------
296,623
--------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-28
<PAGE> 73
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ -------
<S> <C> <C> <C> <C>
Services (18.2%)
- ----------------
ABC Rail Products Corp. (d)................................................. US 2,100 $ 46,463 2.9
Transportation-Road & Rail
Vodafone Group PLC -- ADR (a)............................................... UK 1,200 42,300 2.7
Wireless Communications
DDI Corp. .................................................................. JPN 5 38,760 2.4
Wireless Communications
Telefonica de Espana -- ADR (a)............................................. SPN 800 33,500 2.1
Telephone Networks
SPT Telecom (d)............................................................. CZCH 350 33,082 2.1
Telephone Networks
PT Indonesia Satellite (Indosat) -- ADR (a)................................. INDO 900 32,850 2.1
Telephone-Long Distance
Stet Di Risp................................................................ ITLY 8,700 17,762 1.1
Telephone Networks
Philippine Long Distance Telephone Co. -- ADR (a)........................... PHIL 300 16,238 1.0
Telephone Networks
Canadian National Railway Co. (d) (a)....................................... CAN 1,000 15,000 0.9
Transportation-Road & Rail
Pakistan Telecommunications Co., Ltd. -- 144A GDR # (d) (a)................. PAK 100 8,500 0.5
Telephone Networks
International Container Terminal Services (ICTS) (d)........................ PHIL 9,025 4,735 0.3
Transportation-Shipping
PST Vans, Inc. (d).......................................................... US 300 1,388 0.1
Transportation-Road & Rail
--------
290,578
--------
Materials/Basic Industry (12.0%)
- --------------------------------
La Cementos Nacional, C.A. -- 144A GDR # (a)................................ ECDR 220 37,400 2.4
Cement
Giant Cement Holding, Inc. (d).............................................. US 3,000 34,500 2.2
Cement
Siam Cement Co., Ltd. -- Foreign............................................ THAI 500 27,720 1.7
Cement
Lone Star Industries, Inc. ................................................. US 1,100 27,500 1.7
Cement
PT Bakrie and Brothers...................................................... INDO 10,000 18,170 1.1
Building Materials & Components
Northwest Pipe Co. (d)...................................................... US 1,500 16,477 1.0
Metals-Steel
Hylsamex, S.A. de C.V. -- 144A ADR # (d) (a)................................ MEX 700 14,875 0.9
Metals-Steel
PT Semen Cibinong -- Foreign................................................ INDO 5,000 12,478 0.8
Cement
Grupo Simec, S.A. de C.V. -- ADR (d) (a).................................... MEX 500 3,125 0.2
Metals-Steel
--------
192,245
--------
Technology (4.4%)
- -----------------
DSP Communications, Inc. (d)................................................ US 1,600 69,800 4.4
Telecom Technology
Multi Industry/Miscellaneous (2.3%)
- -----------------------------------
General Electric Co. ....................................................... US 500 36,000 2.3
Conglomerate
Consumer Durables (1.8%)
- -------------------------
Three-Five Systems, Inc. (d)................................................ US 1,700 28,688 1.8
Consumer Electronics
--------- -----
Total Equity Investments (cost $1,248,231).................................... 1,260,481 79.1
--------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-29
<PAGE> 74
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
<TABLE>
<CAPTION>
% of Net
Repurchase Agreement Market Value Assets
- -------------------- ------------ -------
<S> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due January
2, 1996, for an effective yield of 5.55%, collateralized by $290,000 U.S.
Treasury Notes, 6.125% due 5/15/98 (market value of collateral is
$297,954, including accrued interest). (cost $292,135).................... $ 292,135 18.3
-------- -----
Total Investments (cost $1,540,366) @......................................... 1,552,616 97.4
Other Assets and Liabilities.................................................. 41,602 2.6
-------- -----
Net Assets.................................................................... $1,594,218 100.0
========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $1,594,218.
(d) Non-income producing security.
(a) U.S. currency denominated.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $1,542,802 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 90,647
Unrealized depreciation: (80,833)
---------
Net unrealized appreciation: $ 9,814
=========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
===========================================================================
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ----------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS)............................... 3.2 3.2
Australia (AUSL/AUD).............................. 0.8 0.8
Austria (ASTRI/ATS)............................... 2.2 2.2
Bolivia (BOL/BOL)................................. 2.5 2.5
Brazil (BRZL/BRL)................................. 2.1 2.1
Canada (CAN/CAD).................................. 0.9 0.9
Chile (CHLE/CLP).................................. 1.1 1.1
Czech Republic (CZCH/CSK)......................... 2.1 2.1
Ecuador (ECDR/ECS)................................ 2.4 2.4
Finland (FIN/FIM)................................. 3.2 3.2
Germany (GER/DEM)................................. 2.8 2.8
Hong Kong (HK/HKD)................................ 1.6 1.6
Indonesia (INDO/IDR).............................. 4.0 4.0
Italy (ITLY/ITL).................................. 2.5 2.5
Japan (JPN/JPY)................................... 2.4 2.4
Korea (KOR/KRW)................................... 3.0 3.0
Malaysia (MAL/MYR)................................ 1.2 1.2
Mexico (MEX/MXN).................................. 1.1 1.1
Pakistan (PAK/PKR)................................ 0.5 0.5
Philippines (PHIL/PHP)............................ 1.6 1.6
Spain (SPN/ESP)................................... 4.3 4.3
Sweden (SWDN/SEK)................................. 4.1 4.1
Thailand (THAI/THB)............................... 1.7 1.7
United Kingdom (UK/GBP)........................... 2.7 2.7
United States (US/USD)............................ 25.1 20.9 46.0
---- ---- ----
Total............................................. 79.1 20.9 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $1,594,218.
The accompanying notes are an integral part of the financial statements.
---------
F-30
<PAGE> 75
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ------------ --------
<S> <C> <C> <C> <C>
Materials/Basic Industry (41.6%)
- ---------------------------------
Diamond Fields Resources, Inc. (d).......................................... CAN 3,200 $ 60,353 4.4
Metals-Non-Ferrous
PT Tambang Timah:........................................................... INDO -- -- 3.8
Metals-Non-Ferrous
144A GDR # (d) (a)........................................................ -- 3,300 40,095 --
Reg. S GDR (d) // (a).................................................... -- 1,000 12,150 --
Cabot Corp. ................................................................ US 800 43,100 3.2
Chemicals
UCAR International, Inc. (d)................................................ US 1,200 40,500 3.0
Metals-Non-Ferrous
SGL Carbon AG (d)........................................................... GER 500 38,706 2.8
Metals-Non-Ferrous
Cytec Industries (d)........................................................ US 600 37,425 2.7
Chemicals
Anglovaal Ltd.:............................................................. SAFR -- -- 2.7
Misc. Materials & Commodities
"N"....................................................................... -- 600 24,365 --
Common.................................................................... -- 300 12,841 --
Cameco Corp................................................................. CAN 1,000 37,171 2.7
Metals-Non-Ferrous
Agrium, Inc................................................................. CAN 2,400 36,036 2.6
Chemicals
USG Corp. (d)............................................................... US 1,200 36,000 2.6
Building Materials & Components
Potash Corporation of Saskatchewan, Inc. (a)................................ CAN 500 35,438 2.6
Metals-Non-Ferrous
Mississippi Chemical Corp. ................................................. US 1,500 34,875 2.6
Chemicals
Ashanti Goldfields Co., Ltd. -- GDR (a)..................................... SAFR 1,500 30,375 2.2
Gold
J&L Specialty Steel, Inc. .................................................. US 1,100 20,625 1.5
Metals-Steel
Acacia Resources Ltd. (d)................................................... AUSL 8,000 14,384 1.1
Gold
Asia Pulp & Paper Co., Ltd. -- ADR (d) (a).................................. INDO 1,400 11,375 0.8
Forest Products
Delta Gold Ltd. (d)......................................................... AUSL 1,700 4,118 0.3
Gold
---------
569,932
---------
Energy (32.1%)
- ---------------
Input/Output, Inc. (d)...................................................... US 900 51,975 3.8
Energy Equipment & Services
Chesapeake Energy Corp. (d)................................................. US 1,500 49,875 3.7
Energy Sources
Seagull Energy Corp. (d).................................................... US 1,900 42,275 3.1
Energy Sources
Total Compagnie Francaise des Petroles S.A. -- ADR (a)...................... FR 1,114 37,876 2.8
Oil
Reading & Bates Corp. (d)................................................... US 2,500 37,500 2.8
Energy Equipment & Services
Saga Petroleum AS "A"....................................................... NOR 2,800 37,402 2.7
Oil
Sonat Offshore Drilling Co. ................................................ US 800 35,800 2.6
Energy Equipment & Services
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-31
<PAGE> 76
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------ ------- ----------- ------
<S> <C> <C> <C> <C>
Alberta Energy Co., Ltd. ................................................... CAN 2,200 $ 35,249 2.6
Energy Sources
Mobil Corp. ................................................................ US 300 33,600 2.5
Oil
Anadarko Petroleum Corp. ................................................... US 600 32,475 2.4
Oil
British Petroleum Co., PLC -- ADR (a)....................................... UK 250 25,531 1.9
Oil
Norsk Hydro AS -- ADR (a)................................................... NOR 300 12,563 0.9
Oil
Ente Nazionale Idrocarburi (ENI) S.p.A. -- ADR (d) (a)...................... ITLY 100 3,425 0.3
Oil
---------
435,546
---------
Capital Goods (7.8%)
- ---------------------
Harnischfeger Industries, Inc............................................... US 1,400 46,550 3.4
Machinery & Engineering
Rauma Oy -- ADR (d) (a)..................................................... FIN 1,900 35,863 2.6
Machinery & Engineering
Valmet Corp. "A"............................................................ FIN 1,000 24,848 1.8
Machinery & Engineering
---------
107,261
--------- -----
Total Equity Investments (cost $1,051,696).................................... 1,112,739 81.5
--------- -----
Repurchase Agreement
- --------------------
Dated December 29, 1995, with State Street Bank and Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$195,000 U.S. Treasury Notes, 8.125% due 5/15/96 (market value of
collateral is $200,349, included accrued interest). (cost $192,089)....... 192,089 14.1
--------- -----
Total Investments (cost $1,243,785) @......................................... 1,304,828 95.6
Other Assets and Liabilities.................................................. 60,119 4.4
--------- -----
Net Assets.................................................................... $1,364,947 100.0
========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $1,364,947.
(a) U.S. currency denominated.
(d) Non-Income producing security.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration.
// Restricted security -- At December 31, 1995, the Fund owned the following restricted security constituting 0.9% of
net assets which may not be publicly sold without registration under the Securities Act of 1933 (Note 1). Additional
information on the restricted security is as follows:
</TABLE>
<TABLE>
<CAPTION>
Fair Value
Acquisition Acquisition Per Share at
Date Shares Cost 12/31/95
------------ ------- ------------ -------------
<S> <C> <C> <C> <C> <C>
PT Tambang Timah -- Reg S............................... 11/24/95 1,000 $11,700 $12.15
@ For Federal income tax purposes, cost is $1,244,847 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 79,779
Unrealized depreciation: (19,798)
--------
Net unrealized appreciation: $ 59,981
========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
---------
F-32
<PAGE> 77
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------- ------ ----------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD).............................. 1.4 1.4
Canada (CAN/CAD).................................. 14.9 14.9
Finland (FIN/FIM)................................. 4.4 4.4
France (FR/FRF)................................... 2.8 2.8
Germany (GER/DEM)................................. 2.8 2.8
Indonesia (INDO/IDR).............................. 4.6 4.6
Italy (ITLY/ITL).................................. 0.3 0.3
Norway (NOR/NOK).................................. 3.6 3.6
South Africa (SAFR/ZAR)........................... 4.9 4.9
United Kingdom (UK/GBP)........................... 1.9 1.9
United States (US/USD)............................ 39.9 18.5 58.4
---- ---- -----
Total 81.5 18.5 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $1,364,947.
The accompanying notes are an integral part of the financial statements.
---------
F-33
<PAGE> 78
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Shares Market Value Assets
- ------------------ --------- ------------ --------
<S> <C> <C> <C>
Technology (32.1%)
- ------------------
Integrated Device Technology, Inc. (d).............................................. 91,500 $ 1,178,059 3.1
Semiconductors
LAM Research Corp. (d).............................................................. 24,500 1,120,875 3.0
Semiconductors
Applied Materials, Inc. (d)......................................................... 28,400 1,118,250 3.0
Semiconductors
National Semiconductor Corp. (d).................................................... 48,000 1,068,000 2.8
Semiconductors
Komag, Inc. (d)..................................................................... 22,300 1,028,588 2.7
Computers & Peripherals
Read-Rite Corporation (d)........................................................... 42,200 981,150 2.6
Computers & Peripherals
Micron Technology, Inc.............................................................. 24,400 966,850 2.6
Semiconductors
BMC Software Inc. (d)............................................................... 17,600 752,400 2.0
Software
Seagate Technology (d).............................................................. 15,700 745,750 2.0
Computers & Peripherals
Cirrus Logic, Inc. (d).............................................................. 37,100 732,725 1.9
Semiconductors
Compuware Corporation............................................................... 27,200 503,200 1.3
Software
Dallas Semiconductor Corp. (d)...................................................... 23,700 491,775 1.3
Semiconductors
Excalibur Technologies Corp. (d).................................................... 13,000 474,500 1.3
Software
Conner Peripherals, Inc. (d)........................................................ 14,700 308,700 0.8
Computers & Peripherals
Western Digital Corp. (d)........................................................... 16,500 294,938 0.8
Computers & Peripherals
Quantum Corp. (d)................................................................... 12,200 196,725 0.5
Computers & Peripherals
MEMC Electronic Materials, Inc. (d)................................................. 4,600 150,075 0.4
Semiconductors
----------
12,112,560
----------
Services (15.4%)
- ----------------
Michaels Stores, Inc. (d)........................................................... 85,800 1,179,750 3.1
Retailers-Other
AnnTaylor Stores, Inc. (d).......................................................... 86,100 882,525 2.3
Retailers-Apparel
Sports Authority, Inc. (d).......................................................... 40,500 825,188 2.2
Leisure & Tourism
United Video Satellite Group, Inc. "A" (d).......................................... 26,300 710,100 1.9
Cable Television
Kelly Services, Inc. 'A'............................................................ 22,800 632,700 1.7
Consumer Services
Younkers, Inc. (d).................................................................. 24,600 624,225 1.7
Retailers-Apparel
Proffitt's, Inc. (d)................................................................ 12,900 338,625 0.9
Retailers-Other
Rio Hotel and Casino, Inc. (d)...................................................... 21,800 258,875 0.7
Leisure & Tourism
Friedman's Inc. "A" (d)............................................................. 12,500 240,625 0.6
Retailers-Other
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-34
<PAGE> 79
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Shares Market Value Assets
- ------------------ ------ ------------ ---------
<S> <C> <C> <C>
Buckle Inc. (d)..................................................................... 5,800 $ 102,950 0.3
Retailers-Apparel
-----------
5,795,563
-----------
Finance (13.6%)
- ---------------
RFS Hotel Investors, Inc............................................................ 53,200 817,950 2.2
Real Estate Investment Trust
H&R Block, Inc...................................................................... 18,500 749,250 2.0
Consumer Finance
KeyCorp............................................................................. 20,500 743,125 2.0
Banks-Regional
Equity Inns Inc..................................................................... 62,100 714,150 1.9
Real Estate Investment Trust
Leader Financial Corp............................................................... 17,600 657,800 1.7
Savings & Loans
Signet Banking Corp................................................................. 25,200 598,500 1.6
Banks-Regional
ADVANTA Corp. "B"................................................................... 11,700 425,588 1.1
Consumer Finance
Mid-America Apartment Communities, Inc.............................................. 9,100 225,225 0.6
Real Estate
Trans Financial, Inc................................................................ 10,100 180,538 0.5
Banks-Regional
------------
5,112,126
------------
Health Care (6.2%)
- ------------------
Coventry Corp. (d).................................................................. 56,800 1,171,500 3.1
Health Care Services
Health Systems International, Inc. "A" (d).......................................... 24,700 793,488 2.1
Health Care Services
Abaxis, Inc. (d).................................................................... 39,400 275,800 0.7
Medical Technology & Supplies
GranCare, Inc. (d).................................................................. 8,400 121,800 0.3
Health Care Services
----------
2,362,588
----------
Consumer Non-Durables (3.7%)
- ----------------------------
V F Corporation..................................................................... 11,900 627,725 1.7
Textiles & Apparel
Haggar Corp......................................................................... 29,500 531,000 1.4
Textiles & Apparel
Varsity Spirit Corp................................................................. 14,850 207,900 0.6
Textiles & Apparel
-----------
1,366,625
----------
Consumer Durables (3.4%)
- ------------------------
Eaton Corp.......................................................................... 16,000 858,000 2.3
Auto Parts
Syratech Corp. (d).................................................................. 12,900 259,612 0.7
Appliances & Household
Lifetime Hoan Corp. (d)............................................................. 15,730 145,503 0.4
Appliances & Household
----------
1,263,115
-----------
Materials/Basic Industry (1.5%)
- -------------------------------
Georgia Gulf Corp................................................................... 18,200 559,650 1.5
Chemicals
----------
Total Equity Investments (cost $27,993,546)........................................... 28,572,227 75.9
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-35
<PAGE> 80
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE AMERICA FUND
<TABLE>
<CAPTION>
% of Net
Repurchase Agreements Market Value Assets
- --------------------- ------------ --------
<S> <C> <C>
Dated December 29, 1995, with Merrill Lynch, due January 2, 1996, for an effective
yield of 5.60%, collateralized by $7,030,000 U.S. Treasury Notes, due 10/31/97
(market value of collateral is $7,150,092, including accrued interest). (cost
$7,003,267) ...................................................................... $ 7,003,267 18.6
Dated December 29, 1995, with State Street Bank & Trust Company, due January 2,
1996, for an effective yield of 5.55%, collateralized by $4,240,000 U.S. Treasury
Notes, 6.125% due 5/15/98 (market value of collateral is $4,356,296, including
accrued interest). (cost $4,267,973).............................................. 4,267,973 11.3
---------- -------
Total Repurchase Agreements........................................................... 11,271,240 29.9
---------- -------
Total Investments (cost $39,264,786) @................................................ 39,843,467 105.8
Other Assets and Liabilities.......................................................... (2,200,489) (5.8)
---------- -------
Net Assets............................................................................ $37,642,978 100.0
=========== =======
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $37,642,978.
(d) Non-income producing security.
@ For Federal income tax purposes, cost is $39,464,665 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 2,887,352
Unrealized depreciation: (2,508,550)
-----------
Net unrealized appreciation: $ 378,802
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-36
<PAGE> 81
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ --------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Finance (36.2%)
- ---------------
HSBC Holdings PLC........................................................ HK 80,000 $ 1,210,551 5.3
Banks-Money Center
New World Development Co., Ltd. ......................................... HK 246,000 1,072,193 4.7
Real Estate
Straits Steamship Land Ltd. ............................................. SING 220,000 743,706 3.2
Real Estate
Henderson Land Development Co., Ltd. .................................... HK 100,000 602,690 2.6
Real Estate
National Australia Bank Ltd. ............................................ AUSL 60,200 541,214 2.3
Banks-Money Center
Westpac Banking Corp., Ltd.:............................................. AUSL -- -- 2.2
Banks-Regional
Common................................................................. -- 110,000 487,109 --
Convertible Preferred, 6.5% till 6/30/98............................... -- 2,800 15,915 --
Thai Farmers Bank, Ltd. -- Foreign....................................... THAI 45,000 453,932 2.0
Banks-Regional
United Overseas Bank Ltd. -- Foreign..................................... SING 46,000 442,433 1.9
Banks-Money Center
Henderson Investment Ltd. ............................................... HK 500,000 410,631 1.8
Real Estate
Ayala Land, Inc. "B"..................................................... PHIL 312,500 381,534 1.7
Real Estate
Development Bank of Singapore -- Foreign................................. SING 30,000 373,409 1.6
Banks-Money Center
Bangkok Bank Co., Ltd. -- Foreign........................................ THAI 30,000 364,575 1.6
Banks-Money Center
Siam Commercial Bank PLC -- Foreign...................................... THAI 25,000 329,627 1.4
Banks-Money Center
DCB Holdings Bhd. ....................................................... MAL 75,000 218,573 0.9
Banks-Regional
PT Lippo Bank -- Foreign................................................. INDO 120,000 185,201 0.8
Banks-Money Center
Siam City Bank Ltd. -- Foreign........................................... THAI 140,000 161,239 0.7
Banks-Regional
Hang Seng Bank........................................................... HK 16,030 143,569 0.6
Banks-Money Center
Bank of East Asia, Ltd. ................................................. HK 38,161 136,959 0.6
Banks-Money Center
Cheung Kong (Holdings) Ltd. ............................................. HK 10,000 60,916 0.3
Real Estate
------------
8,335,976
------------
Services (20.0%)
- ----------------
China Hong Kong Photo Products Holdings, Ltd. ........................... HK 2,000,000 1,131,661 4.9
Wholesale & International Trade
Guangnan Holdings........................................................ HK 2,300,000 751,099 3.3
Wholesale & International Trade
Waterfront Philippines, Inc. (d) ........................................ PHIL 4,000,000 686,761 3.0
Leisure & Tourism
Goldlion Holdings Ltd. .................................................. HK 630,000 460,360 2.0
Retailers-Apparel
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-37
<PAGE> 82
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ --------- ---------- ------------ --------
<S> <C> <C> <C> <C>
Telecom Corporation of New Zealand Ltd. ................................. NZ 100,000 $ 431,316 1.9
Telephone Networks
Cathay Pacific Airways................................................... HK 250,000 381,531 1.7
Transportation-Airlines
News Corp., Ltd.:........................................................ AUSL -- -- 1.3
Broadcasting & Publishing
Common................................................................. -- 40,269 214,824 --
Preferred.............................................................. -- 20,164 94,236 --
International Container Terminal Services (ICTS) (d)..................... PHIL 437,500 229,516 1.0
Transportation-Shipping
AAPC Ltd. ............................................................... AUSL 235,500 127,732 0.6
Leisure & Tourism
Philippine Long Distance Telephone Co. -- ADR (a)........................ PHIL 1,500 81,188 0.3
Telephone-Long Distance
------------
4,590,224
------------
Multi Industry/Miscellaneous (11.0%)
- ------------------------------------
Hutchison Whampoa........................................................ HK 250,000 1,522,892 6.6
Conglomerate
Swire Pacific Ltd. "A"................................................... HK 50,000 387,998 1.7
Multi-Industry
Citic Pacific Ltd. ...................................................... HK 100,000 342,085 1.5
Conglomerate
Korea Fund, Inc. (a)..................................................... KOR 12,672 278,784 1.2
Country Funds
------------
2,531,759
------------
Materials/Basic Industry (9.2%)
- -------------------------------
PT Semen Gresik -- Foreign............................................... INDO 214,000 599,650 2.6
Cement
Western Mining Corporation Holdings Ltd. ................................ AUSL 66,000 423,687 1.8
Metals-Non-Ferrous
Carter Holt Harvey Ltd. ................................................. NZ 150,000 323,487 1.4
Forest Products
Broken Hill Proprietary Co., Ltd. ....................................... AUSL 20,865 294,550 1.3
Misc. Materials & Commodities
Siam Cement Co., Ltd. -- Foreign......................................... THAI 5,000 277,204 1.2
Cement
Royal Ceramic Industry -- Foreign (d).................................... THAI 100,000 156,871 0.7
Building Materials & Components
PT Ekadharma Tape Industries............................................. INDO 66,000 40,455 0.2
Chemicals
------------
2,115,904
------------
Consumer Durables (8.1%)
- ------------------------
Gadek (Malaysia) Bhd. ................................................... MAL 150,000 767,958 3.3
Automobiles
Samsung Electronics Co.:................................................. KOR -- -- 2.3
Consumer Electronics
GDR (d) (a)............................................................ -- 7,000 409,500 --
New-GDR Non-voting (d) (a)............................................. -- 1,385 81,023 --
New-144A GDR # (d) (a)................................................. -- 432 41,472 --
GDR 1/2 Voting (d) (a)................................................ -- 110 10,560 --
New-GDR (d) (a)........................................................ -- 84 8,064 --
Leading Spirit Holding Co. .............................................. HK 1,650,000 453,473 2.0
Appliances & Household
Hyundai Motor Co. -- 144A GDR # (d) (a).................................. KOR 8,000 116,000 0.5
Automobiles
------------
1,888,050
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-38
<PAGE> 83
-----------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NEW PACIFIC FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ -------- ------ ------------ --------
<S> <C> <C> <C> <C>
Capital Goods (2.2%)
- --------------------
E.R.G. Ltd. ............................................................. AUSL 323,529 $ 387,014 1.7
Electrical Plant/Equipment
International Engineering PLC -- Foreign................................. THAI 24,000 122,955 0.5
Telecom Equipment
United Engineers Ltd., Convertible Unsecured Loan Stock, 4% expires
5/22/99................................................................ MAL 21,000 11,744 0.0
Construction
United Engineers Ltd. ................................................... MAL 300 1,914 0.0
Construction
----------
523,627
----------
Energy (2.1%)
- -------------
Oil Search Ltd. ......................................................... AUSL 560,000 482,651 2.1
Oil
Consumer Non-Durables (1.0%)
- ----------------------------
China Foods Holdings Ltd. (d)............................................ HK 1,322,000 220,561 1.0
Food
----------- -------
Total Equity Investments (cost $19,787,950)................................ 20,688,752 89.8
----------- -------
<CAPTION>
No. of
Warrants
--------
<S> <C> <C> <C> <C>
Warrants (0.3%)
- ---------------
Development & Commercial Bank Warrants, expire 12/28/99 (d).............. MAL 37,500 37,216 0.2
Banks-Money Center
Guangnan Holdings Warrants, expire 12/31/96 (d).......................... HK 230,000 23,500 0.1
Wholesale & International Trade
Leading Spirit Holding Co. Warrants, expire 12/31/97 (d)................. HK 150,000 0 0.0
Appliances & Household
-------- -----
Total Warrants (cost $20,964).............................................. 60,716 0.3
-------- -----
Repurchase Agreement
- --------------------
Dated December 29, 1995, with State Street Bank & Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$1,940,000 U.S. Treasury Notes, 6.125% due 5/15/98 (market value of
collateral is $1,993,211, including accrued interest). (cost
$1,950,902)............................................................ 1,950,902 8.5
----------- -------
Total Investments (cost $21,759,816) @..................................... 22,700,370 98.6
Other Assets and Liabilities............................................... 324,414 1.4
------------ -------
Net Assets................................................................. $23,024,784 100.0
============ =======
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $23,024,784.
(a) U.S. currency denominated.
(d) Non-income producing security.
# Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $21,759,816 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 2,286,637
Unrealized depreciation: (1,346,083)
-----------
Net unrealized appreciation: $ 940,554
===========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
---------
F-39
<PAGE> 84
------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE NEW PACIFIC FUND
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
--------------------------------------------
Fixed Income,
Rights & Short-Term
Country (Country Code/Currency Code) Equity Warrants & Other Total
------------------------------------ ------ ------------- ----------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD)................ 13.3 13.3
Hong Kong (HK/HKD).................. 40.6 0.1 40.7
Indonesia (INDO/IDR)................ 3.6 3.6
Korea (KOR/KRW)..................... 4.0 4.0
Malaysia (MAL/MYR).................. 4.2 0.2 4.4
New Zealand (NZ/NZD)................ 3.3 3.3
Philippines (PHIL/PHP).............. 6.0 6.0
Singapore (SING/SGD)................ 6.7 6.7
Thailand (THAI/THB)................. 8.1 8.1
United States (US/USD).............. 9.9 9.9
---- ---- ---- -----
Total............................... 89.8 0.3 9.9 100.0
==== ==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $23,024,784.
The accompanying notes are an integral part of the financial statements.
---------
F-40
<PAGE> 85
-------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ -------- ------ ------------ --------
<S> <C> <C> <C> <C>
Services (23.3%)
- ----------------
Canal Plus.............................................................. FR 2,700 $ 506,926 3.2
Broadcasting & Publishing
Telecom Italia Mobile S.p.A............................................. ITLY 221,000 389,016 2.5
Telephone Networks
Wolters Kluwer CVA...................................................... NETH 4,065 385,282 2.5
Broadcasting & Publishing
Vodafone Group PLC...................................................... UK 100,740 361,294 2.3
Wireless Communications
Elsevier N.V............................................................ NETH 24,000 320,679 2.1
Broadcasting & Publishing
Reuters Holdings PLC.................................................... UK 33,000 302,026 1.9
Broadcasting & Publishing
British Airport Authority PLC........................................... UK 40,000 301,195 1.9
Transportation-Airlines
EMAP PLC................................................................ UK 36,200 300,683 1.9
Broadcasting & Publishing
National Express Group PLC.............................................. UK 52,000 291,445 1.9
Transportation-Road & Rail
Granada Group PLC....................................................... UK 25,502 255,376 1.6
Leisure & Tourism
Tesco PLC............................................................... UK 52,100 240,238 1.5
Retailers-Food
----------
3,654,160
----------
Consumer Non-Durables (18.6%)
- -----------------------------
De Rigo S.p.A. -- ADR (a)............................................... ITLY 40,000 910,000 5.8
Textiles & Apparel
Gucci Group -- NY Registered Shares (a)................................. ITLY 13,600 528,700 3.4
Textiles & Apparel
Industrie Natuzzi S.p.A. -- ADR (a)..................................... ITLY 9,850 446,944 2.9
Household Products
Polygram................................................................ NETH 7,000 372,378 2.4
Recreation
Adidas AG (d)........................................................... GER 6,715 355,442 2.3
Textiles & Apparel
B.A.T. Industries PLC................................................... UK 18,470 162,734 1.0
Tobacco
Nutricia Vereenigde Bedrijven N.V....................................... NETH 1,560 126,429 0.8
Food
----------
2,902,627
----------
Finance (10.8%)
- ---------------
Cetelem Group........................................................... FR 2,550 479,282 3.1
Consumer Finance
M & G Group PLC......................................................... UK 17,000 332,293 2.1
Investment Management
Invesco PLC............................................................. UK 74,000 291,244 1.9
Investment Management
National Westminster Bank PLC........................................... UK 21,336 214,818 1.4
Banks-Money Center
Lloyds TSB Group PLC.................................................... UK 40,560 208,436 1.3
Banks-Regional
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-41
<PAGE> 86
--------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------ ------------ ------
<S> <C> <C> <C> <C>
Fokus Banken AS (d)..................................................... NOR 23,600 $ 127,778 0.8
Banks-Money Center
UNI Storebrand AS "A" (d)............................................... NOR 5,300 29,324 0.2
Insurance-Multi-Line
----------
1,683,175
----------
Health Care (10.1%)
- -------------------
Ciba-Geigy AG -- Registered............................................. SWTZ 716 630,577 4.0
Pharmaceuticals
Amersham International PLC.............................................. UK 35,000 481,990 3.1
Pharmaceuticals
SmithKline Beecham PLC "A".............................................. UK 30,928 340,923 2.2
Pharmaceuticals
Bayer AG................................................................ GER 450 118,784 0.8
Pharmaceuticals
----------
1,572,274
----------
Technology (9.3%)
- -----------------
Austria Mikro Systeme International AG.................................. ASTRI 3,132 508,220 3.3
Semiconductors
Nera AS................................................................. NOR 12,460 405,761 2.6
Telecom Technology
Group Axime (d)......................................................... FR 4,440 342,342 2.2
Computers & Peripherals
Benefon Oy (d).......................................................... FIN 7,745 192,453 1.2
Telecom Technology
----------
1,448,776
----------
Capital Goods (8.9%)
- --------------------
Olivetti Group (d)...................................................... ITLY 488,000 395,326 2.5
Office Equipment
Mannesmann AG........................................................... GER 1,003 319,457 2.0
Machinery & Engineering
Nokia AB "A"............................................................ FIN 7,400 286,036 1.8
Telecom Equipment
SGS-Thomson Microelectronics N.V. -- ADR (d) (a)........................ FR 6,935 279,134 1.8
Electrical Plant/Equipment
Altran Technologies SA.................................................. FR 815 118,845 0.8
Machinery & Engineering
----------
1,398,798
----------
Consumer Durables (5.0%)
- ------------------------
Hoganas AB "B".......................................................... SWDN 15,200 444,331 2.8
Auto Parts
Kiekert AG (d).......................................................... GER 5,780 343,438 2.2
Auto Parts
----------
787,769
----------
Materials/Basic Industry (4.2%)
- -------------------------------
Pilkington PLC:......................................................... UK -- -- 2.5
Building Materials & Components
Common................................................................ -- 97,300 305,148 --
New................................................................... -- 24,325 76,287 --
Hoechst AG.............................................................. GER 1,000 271,288 1.7
Chemicals
----------
652,723
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-42
<PAGE> 87
------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EUROPE FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------- ------- ------ ------------ -------
<S> <C> <C> <C> <C>
Multi Industry/Miscellaneous (2.5%)
- -----------------------------------
Assystem (d)............................................................ FR 5,400 $ 393,279 2.5
Multi-Industry
---------- ----
Total Equity Investments (cost $12,515,270)............................... 14,493,581 92.7
---------- ----
<CAPTION>
Underlying
Nominal
Options (1.4%) Currency Amount
- -------------- -------- ------------
<S> <C> <C> <C> <C>
Italian Government Bond Call Option, strike 95.48, expires 8/16/96...... ITL 71,600 227,674 1.4
----------- ----
Government & Government Agency Obligations (cost $159,778)
Total Investments (cost $12,675,048) @.................................... 14,721,255 94.1
Other Assets and Liabilities.............................................. 919,622 5.9
----------- -----
Net Assets................................................................ $15,640,877 100.0
-========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $15,640,877.
(a) U.S. currency denominated.
(d) Non-income producing security.
@ For Federal income tax purposes, cost is $12,675,048 and appreciation (depreciation) is as follows:
Unrealized appreciation: $2,362,529
Unrealized depreciation: (316,322)
----------
Net unrealized appreciation: $2,046,207
==========
</TABLE>
============================================================================
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets
----------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ----------- -----
<S> <C> <C> <C>
Austria (ASTRI/ATS)............................... 3.3 3.3
Finland (FIN/FIM)................................. 3.0 3.0
France (FR/FRF)................................... 13.6 13.6
Germany (GER/DEM)................................. 9.0 9.0
Italy (ITLY/ITL).................................. 17.1 1.4 18.5
Netherlands (NETH/NLG)............................ 7.8 7.8
Norway (NOR/NOK).................................. 3.6 3.6
Sweden (SWDN/SEK)................................. 2.8 2.8
Switzerland (SWTZ/CHF)............................ 4.0 4.0
United Kingdom (UK/GBP)........................... 28.5 28.5
Other............................................. 5.9 5.9
---- ---- -----
Total............................................. 92.7 7.3 100.0
==== ==== =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $15,640,877.
The accompanying notes are an integral part of the financial statements.
---------
F-43
<PAGE> 88
---------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE EUROPE FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
(U.S. Dollars) Price Date (Depreciation)
-------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Contracts to Sell:
- -----------------
Deutsche Marks........................................................ 314,832 1.42738 02/29/96 $ 431
French Francs......................................................... 614,083 4.91125 01/02/96 (3,240)
Netherland Guilders................................................... 250,483 1.58000 02/15/96 2,681
Netherland Guilders................................................... 231,698 1.58068 02/15/96 2,379
Swiss Francs.......................................................... 340,312 1.12168 02/20/96 7,380
--------- --------
Total Contracts to Sell (Receivable amount $1,761,039)................ 1,751,408 9,631
--------- --------
The value of Contracts to Sell as a Percentage of Net Assets is
11.20%.
Total Open Forward Foreign Currency Contracts, Net......................................................... $ 9,631
========
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-44
<PAGE> 89
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Principal % of Net
Short-Term Investments Yield Date Amount Market Value Assets
- ---------------------- --------- --------- --------- ------------ --------
<S> <C> <C> <C> <C> <C>
Commercial Paper -- Discounted (53.9%)
- --------------------------------------
Minnesota Mining & Manufacturing Co. .......................... 5.70% 19-Jan-96 750,000 $ 747,887 5.0
PHH Corp ...................................................... 5.77% 26-Jan-96 750,000 747,042 5.0
General Electric Capital Corp. ................................ 5.72% 12-Feb-96 650,000 645,723 4.3
AIG Funding Inc. .............................................. 5.77% 08-Jan-96 600,000 599,329 4.0
E.I. DuPont de Nemours & Co. .................................. 5.78% 12-Jan-96 600,000 598,944 4.0
Hanson Finance PLC. ........................................... 5.80% 17-Jan-96 600,000 598,480 4.0
Toronto Dominion Holdings USA, Inc. ........................... 5.72% 24-Jan-96 600,000 597,849 4.0
Merrill Lynch & Co., Inc. ..................................... 5.86% 04-Jan-96 500,000 499,756 3.4
Ford Motor Credit Co. ......................................... 5.78% 05-Jan-96 500,000 499,682 3.4
AT&T Corp. .................................................... 5.79% 05-Jan-96 500,000 499,679 3.4
Philip Morris Cos., Inc. ...................................... 5.91% 05-Jan-96 500,000 499,672 3.4
Bellsouth Capital Funding Corp. ............................... 5.66% 09-Jan-96 500,000 499,372 3.4
Ameritech Corp. ............................................... 5.61% 09-Feb-96 500,000 496,978 3.3
Procter & Gamble Co. .......................................... 5.66% 13-Feb-96 500,000 496,656 3.3
----------- --------
Total Commercial Paper -- Discounted (amortized cost
$8,027,049).................................................... 8,027,049 53.9
----------- --------
Government & Government Agency Obligations (14.2%)
- --------------------------------------------------
Sallie Mae..................................................... 5.80% 19-Jul-96 600,000 599,550 4.0
Federal National Mortgage Association.......................... 5.73% 20-Sep-96 600,000 599,415 4.0
Federal Home Loan Mortgage Corp. .............................. 5.50% 12-Mar-96 600,000 593,586 4.0
Federal Home Loan Bank......................................... 5.76% 02-Oct-96 330,000 329,768 2.2
----------- --------
Total Government & Government Agency Obligations
(amortized cost $2,122,319).................................... 2,122,319 14.2
----------- --------
Treasury Bills (13.1%)
- ----------------------
United States Treasury Bill.................................... 5.47% 04-Apr-96 1,000,000 986,096 6.6
United States Treasury Bill.................................... 5.58% 19-Sep-96 1,000,000 961,428 6.5
----------- --------
Total Treasury Bills (amortized cost $1,947,524)................. 1,947,524 13.1
----------- --------
Repurchase Agreement
- --------------------
Dated December 29, 1995, with State Street Bank & Trust
Company, due January 2, 1996, for an effective yield of
5.55%, collateralized by $1,725,000 U.S. Treasury Notes, 6%
due 8/31/97 (market value of collateral is $1,780,443,
including accrued interest). (cost $1,740,805)............... 1,740,805 11.7
----------- --------
Total Short-Term Investments (cost $13,837,697) @................ 13,837,697 92.9
Other Assets and Liabilities..................................... 1,052,895 7.1
----------- --------
Net Assets....................................................... $14,890,592 100.0
=========== ========
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $14,890,592.
@ For Federal income tax purposes, cost is $13,837,697.
The accompanying notes are an integral part of the financial statements.
---------
F-45
<PAGE> 90
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ --------- --------- ------------ --------
<S> <C> <C> <C> <C>
Finance (19.3%)
- ----------------
Invesco PLC............................................................... UK 20,500 $ 80,682 2.2
Investment Management
Nichiei Co., Ltd. ........................................................ JPN 1,000 74,612 2.0
Investment Management
Axa Group................................................................. FR 1,000 67,492 1.8
Insurance -- Multi-Line
M & G Group PLC........................................................... UK 3,400 66,459 1.8
Investment Management
Barclays PLC.............................................................. UK 5,000 57,367 1.6
Banks-Money Center
Societe Generale de Paris................................................. FR 441 54,567 1.5
Banks-Money Center
Peregrine Investment Holdings Ltd. ....................................... HK 40,000 51,733 1.4
Investment Management
Bangkok Bank Co., Ltd. -- Foreign......................................... THAI 4,000 48,610 1.3
Banks-Money Center
Anglo-Irish Bank Corp. PLC................................................ IRE 44,186 43,562 1.2
Banks-Money Center
Sparbanken Sverige AB "A"................................................. SWDN 3,000 38,198 1.0
Investment Management
House of Investments, Inc. ............................................... PHIL 173,000 36,963 1.0
Other Financial
National Australia Bank Ltd. ............................................. AUSL 4,000 35,961 1.0
Banks-Money Center
Westpac Banking Corp., Ltd. .............................................. AUSL 7,000 30,998 0.8
Banks-Regional
TA Enterprise Bhd. ....................................................... MAL 20,000 24,260 0.7
Investment Management
-------
711,464
-------
Services (18.6%)
- ----------------
Wolters Kluwer CVA........................................................ NETH 800 75,824 2.1
Broadcasting & Publishing
British Airport Authority PLC............................................. UK 10,000 75,297 2.1
Transportation-Airlines
Dixons Group PLC.......................................................... UK 10,700 74,174 2.0
Retailers-Apparel
Fast Retailing Co., Ltd. ................................................. JPN 1,400 69,593 1.9
Retailers-Apparel
IHC Caland N.V. .......................................................... NETH 1,850 62,375 1.7
Transportation-Shipping
DDI Corp. ................................................................ JPN 7 54,264 1.5
Wireless Communications
Vodafone Group PLC........................................................ UK 15,000 53,796 1.5
Wireless Communications
Club Mediterrannee........................................................ FR 672 53,738 1.5
Leisure & Tourism
Compass Group PLC......................................................... UK 7,000 53,144 1.4
Restaurants
Autobacs Seven Co., Ltd. ................................................. JPN 500 41,570 1.1
Retailers-Other
Telecom Corporation of New Zealand Ltd. -- ADR (a)........................ NZ 500 34,688 0.9
Telephone Networks
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-46
<PAGE> 91
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ ------- ------- ----------- -------
<S> <C> <C> <C> <C>
Telecom Italia:........................................................... ITLY -- -- 0.9
Telephone Networks
Mobile Di Risp S.p.A. .................................................... -- 20,000 $ 21,073 --
Di Risp................................................................... -- 7,900 9,654 --
-------
679,190
-------
Capital Goods (17.3%)
- ---------------------
Nokia AB "K".............................................................. FIN 2,920 115,556 3.2
Telecom Equipment
Murata Manufacturing Co., Ltd. ........................................... JPN 2,000 73,643 2.0
Electrical Plant/Equipment
Unitech PLC............................................................... UK 8,700 66,050 1.8
Electrical Plant/Equipment
Bouygues.................................................................. FR 600 60,534 1.7
Construction
Autopistas del Mare "R"................................................... SPN 4,600 59,942 1.6
Construction
Canon, Inc. .............................................................. JPN 3,000 54,360 1.5
Office Equipment
Kurita Water Industries................................................... JPN 2,000 53,295 1.5
Electrical Plant/Equipment
L.M. Ericsson Telephone Co. .............................................. SWDN 2,640 51,714 1.4
Telecom Equipment
Allgon AB "B" Free........................................................ SWDN 3,000 41,588 1.1
Telecom Equipment
NBM-Amstelland N.V. ...................................................... NETH 2,300 35,040 1.0
Construction
Valmet Corp. "A".......................................................... FIN 800 19,879 0.5
Machinery & Engineering
-------
631,601
-------
Consumer Non-Durables (9.7%)
- ----------------------------
Hoya Corp. ............................................................... JPN 3,000 103,198 2.8
Other Consumer Goods
Nutricia Vereenigde Bedrijven N.V. ....................................... NETH 725 58,757 1.6
Food
Salomon S.A. ............................................................. FR 100 58,288 1.6
Recreation
Amway Japan Ltd. ......................................................... JPN 1,300 54,922 1.5
Household Products
Giordano International Ltd. .............................................. HK 54,000 46,094 1.3
Textiles & Apparel
Polygram.................................................................. NETH 600 31,918 0.9
Recreation
-------
353,177
-------
Technology (8.0%)
- -----------------
Koei Co., Ltd. ........................................................... JPN 2,500 86,725 2.4
Software
Kyocera Corp. ............................................................ JPN 1,000 74,322 2.0
Semiconductors
Bowthorpe PLC............................................................. UK 10,000 65,207 1.8
Computers & Peripherals
Nera AS................................................................... NOR 2,000 65,130 1.8
Telecom Technology
-------
291,384
-------
Materials/Basic Industry (7.8%)
- -------------------------------
Tostem Corp. ............................................................. JPN 3,000 99,709 2.7
Building Materials & Components
Broken Hill Proprietary Co., Ltd. ........................................ AUSL 5,580 78,773 2.1
Misc. Materials & Commodities
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-47
<PAGE> 92
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Equity Investments Country Shares Market Value Assets
- ------------------ --------- --------- ------------ --------
<S> <C> <C> <C> <C>
S.A. Iron & Steel Industrial Corp., Ltd. -- ADR (a)....................... SAFR 4,750 $ 42,513 1.2
Metals-Steel
RWE AG.................................................................... GER 100 36,265 1.0
Misc. Materials & Commodities
TPI Polene Co., Ltd. -- Foreign........................................... THAI 5,000 29,786 0.8
Chemicals
---------
287,046
---------
Consumer Durables (7.7%)
- ------------------------
Suzuki Motor Co., Ltd. ................................................... JPN 8,000 89,147 2.4
Automobiles
Kiekert AG (d)............................................................ GER 1,180 70,114 1.9
Auto Parts
Toyota Motor Corp. ....................................................... JPN 3,000 63,663 1.7
Automobiles
Samsung Electronics Co.:.................................................. KOR -- -- 1.0
Consumer Electronics
GDR (d) (a)............................................................. -- 500 29,250 --
New-GDR Non-Voting (d) (a).............................................. -- 98 5,733 --
New-144A GDR # (d) (a).................................................. -- 10 960 --
GDR 1/2 Voting (d) (a).................................................. -- 6 576 --
New-GDR Voting (d) (a).................................................. -- 1 96 --
Hyundai Motor Co. -- GDR (d) (a).......................................... KOR 1,700 24,650 0.7
Automobiles
---------
284,189
---------
Health Care (2.7%)
- ------------------
Sandoz AG -- Registered................................................... SWTZ 60 54,976 1.5
Pharmaceuticals
SmithKline Beecham PLC "A"................................................ UK 4,102 45,217 1.2
Pharmaceuticals
---------
100,193
---------
Multi Industry/Miscellaneous (2.7%)
- -----------------------------------
Keppel Corp., Ltd......................................................... SING 6,000 53,465 1.5
Conglomerate
Hutchison Whampoa......................................................... HK 7,000 42,641 1.2
Conglomerate
---------
96,106
---------
Energy (0.9%)
- --------------
British Petroleum Co., PLC................................................ UK 4,000 33,442 0.9
Oil
--------- ----
Total Equity Investments (cost $3,293,599).................................. 3,467,792 94.7
--------- ----
Rights (0.0%)
- -------------
TPI Polene Co., Ltd. Rights, expire 1/26/96 (d) (cost $0)................. THAI 250 1,390 0.0
Chemicals
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-48
<PAGE> 93
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INTERNATIONAL FUND
<TABLE>
<CAPTION>
% of Net
Repurchase Agreement Market Value Assets
- -------------------- ------------ --------
<S> <C> <C>
Dated December 29, 1995, with State Street Bank & Trust Company, due
January 2, 1996, for an effective yield of 5.55%, collateralized by
$430,000 U.S. Treasury Notes, 6.125% due 5/15/98 (market value of
collateral is $441,794, including accrued interest). (cost $432,200).... $ 432,200 11.8
---------- -----
Total Investments (cost $3,725,799) @....................................... 3,901,382 106.5
Other Assets and Liabilities................................................ (238,782) (6.5)
---------- -----
Net Assets.................................................................. $3,662,600 100.0
========== =====
</TABLE>
- ------------------
<TABLE>
<S> <C>
* Percentages indicated are based on net assets of $3,662,600.
(d) Non-income producing security.
(a) U.S. currency denominated.
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers.
@ For Federal income tax purposes, cost is $3,738,358 and appreciation (depreciation) is as follows:
Unrealized appreciation: $ 298,113
Unrealized depreciation: (135,089)
---------
Net unrealized appreciation: $ 163,024
=========
</TABLE>
Abbreviations:
ADR -- American Depository Receipt
GDR -- Global Depository Receipt
================================================================================
The Fund's Portfolio of Investments at December 31, 1995, was concentrated in
the following countries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
---------------------------
Short-Term
Country (Country Code/Currency Code) Equity & Other Total
------------------------------------ ------ ---------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD).............................. 3.9 3.9
Finland (FIN/FIM)................................. 3.7 3.7
France (FR/FRF)................................... 8.1 8.1
Germany (GER/DEM)................................. 2.9 2.9
Hong Kong (HK/HKD)................................ 3.9 3.9
Ireland (IRE/IEP)................................. 1.2 1.2
Italy (ITLY/ITL).................................. 0.9 0.9
Japan (JPN/JPY)................................... 27.0 27.0
Korea (KOR/KRW)................................... 1.7 1.7
Malaysia (MAL/MYR)................................ 0.7 0.7
Netherlands (NETH/NLG)............................ 7.3 7.3
New Zealand (NZ/NZD).............................. 0.9 0.9
Norway (NOR/NOK).................................. 1.8 1.8
Philippines (PHIL/PHP)............................ 1.0 1.0
Singapore (SING/SGD).............................. 1.5 1.5
South Africa (SAFR/ZAR)........................... 1.2 1.2
Spain (SPN/ESP)................................... 1.6 1.6
Sweden (SWDN/SEK)................................. 3.5 3.5
Switzerland (SWTZ/CHF)............................ 1.5 1.5
Thailand (THAI/THB)............................... 2.1 2.1
United Kingdom (UK/GBP)........................... 18.3 18.3
United States (US/USD)............................ 5.3 5.3
---- --- -----
Total............................................. 94.7 5.3 100.0
==== === =====
</TABLE>
- ------------------
* Percentages indicated are based on net assets of $3,662,600.
The accompanying notes are an integral part of the financial statements.
---------
F-49
<PAGE> 94
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT GLOBAL VARIABLE INTERNATIONAL FUND
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Unrealized
Market Value Contract Delivery Appreciation
Contracts to Sell: (U.S. Dollars) Price Date (Depreciation)
- ------------------ -------------- --------- -------- --------------
<S> <C> <C> <C> <C>
French Francs........................................................ 61,408 4.91125 02/06/96 $ (324)
French Francs........................................................ 70,405 4.88280 02/16/96 26
Japanese Yen......................................................... 203,786 101.50000 02/09/96 2,125
Japanese Yen......................................................... 151,237 98.95800 02/14/96 5,395
Japanese Yen......................................................... 41,956 99.00001 02/14/96 1,478
Japanese Yen......................................................... 146,655 99.80001 02/29/96 3,646
Japanese Yen......................................................... 32,319 100.04699 03/12/96 665
Netherland Guilders.................................................. 62,621 1.58068 02/15/96 643
Swedish Krona........................................................ 82,517 6.60950 02/22/96 697
Swiss Francs......................................................... 52,506 1.15258 03/19/96 (449)
------- -------
Total Contracts to Sell (Receivable amount $919,312)................. 905,410 13,902
------- -------
The value of Contracts to Sell as a Percentage of Net Assets is
24.72%.
Total Open Forward Foreign Currency Contracts, Net....................................................... $ 13,902
=======
</TABLE>
- ------------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
---------
F-50
<PAGE> 95
(THIS PAGE INTENTIONALLY LEFT BLANK)
---------
F-51
<PAGE> 96
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------
VARIABLE
VARIABLE VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN AMERICA
INCOME FUND INCOME FUND INCOME FUND FUND
----------- --------------- ----------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments in securities (Note 1):
At identified cost............................................ $22,570,517 $10,915,574 $4,486,259 $19,318,038
=========== =========== ========== ===========
At value...................................................... $23,485,372 $11,163,997 $4,668,435 $17,766,348
Repurchase agreements, at value and cost (Note 1)............. 1,164,538 389,180 1,232,570 1,724,797
U.S. currency................................................. 469 650 58 117
Foreign currencies............................................ 248,687 9,438 -- 258,356
Receivable for Fund shares sold............................... 140,578 7,085 -- 18,803
Receivable for securities sold................................ -- 1,016,659 -- 104,423
Receivable for forward foreign currency contracts -- closed
(Note 1).................................................... -- -- -- --
Receivable for open forward foreign currency contracts, net
(Note 1).................................................... -- -- -- --
Dividends and dividend tax reclaims receivable................ -- -- -- 17,753
Interest and interest tax reclaims receivable................. 710,011 355,806 63,674 --
Reimbursement receivable from LGT Asset Management, Inc. (Note
2).......................................................... -- 38,141 47,020 7,204
Unamortized organizational costs (Note 1)..................... 13,264 13,264 13,264 13,264
Other receivables............................................. 4,509 19,860 -- 25,250
Cash held as collateral for securities loaned (Note 1)........ 599,961 367,840 -- 1,447,200
----------- ----------- ---------- -----------
Total assets.................................................. 26,367,389 13,381,920 6,025,021 21,383,515
----------- ----------- ---------- -----------
Liabilities:
Payable for Fund shares repurchased........................... 26,193 5,000 8,340 83,221
Payable for securities purchased.............................. 244,090 958,355 -- 29,922
Payable for forward foreign currency contracts -- closed (Note
1).......................................................... 31 14,416 -- --
Payable for open forward foreign currency contracts, net (Note
1).......................................................... 92,350 67,178 -- --
Payable for custodian fees (Note 1)........................... 3,791 2,599 916 4,441
Payable for fund accounting fees (Note 2)..................... 534 252 126 401
Payable for investment management and administration fees
(Note 2).................................................... 33,275 -- -- --
Payable for printing and postage expenses..................... 9,669 9,542 10,645 9,642
Payable for professional fees................................. 10,550 9,321 10,117 10,439
Payable for registration and filing fees...................... 347 607 607 608
Payable for Trustees' fees and expenses (Note 2).............. 1,714 2,416 1,825 1,726
Distribution payable (Note 1)................................. -- -- -- --
Other accrued expenses........................................ -- 648 -- 25,069
Collateral for securities loaned (Note 1)..................... 599,961 367,840 -- 1,447,200
----------- ----------- ---------- -----------
Total liabilities............................................. 1,022,505 1,438,174 32,576 1,612,669
----------- ----------- ---------- -----------
Net assets...................................................... $25,344,884 $11,943,746 $5,992,445 $19,770,846
=========== =========== ========== ===========
Net assets consist of:
Paid in capital (Note 4)...................................... $28,372,215 $12,383,353 $5,801,060 $27,124,256
Undistributed/Accumulated net investment income (loss)........ 230,962 36,751 10,272 619,523
Accumulated net realized gain (loss) on investments and
foreign currency transactions............................... (4,079,601) (654,105) (1,063) (6,415,793)
Net unrealized appreciation (depreciation) on translation of
assets
and liabilities in foreign currencies....................... (93,547) (66,051) -- (7,700)
Net unrealized appreciation (depreciation) of investments,
including futures........................................... 914,855 243,798 182,176 (1,549,440)
----------- ----------- ---------- -----------
Total -- representing net assets applicable to capital shares
outstanding................................................. $25,344,884 $11,943,746 $5,992,445 $19,770,846
=========== =========== ========== ===========
Shares outstanding.............................................. 2,137,820 1,037,688 510,243 1,592,435
=========== =========== ========== ===========
Net asset value per share....................................... $ 11.86 $ 11.51 $ 11.74 $ 12.42
=========== =========== ========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-52
<PAGE> 97
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF ASSETS
AND LIABILITIES
December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------------------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & COMMUNICATIONS EMERGING INFRASTRUCTURE NATURAL AMERICA NEW PACIFIC
INCOME FUND FUND MARKETS FUND FUND RESOURCES FUND FUND FUND
------------ --------------- ------------- --------------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
$26,402,531 $41,446,599 $ 7,723,035 $1,248,231 $1,051,696 $27,993,546 $19,808,914
=========== =========== =========== ========== ========== =========== ===========
$30,039,447 $45,631,342 $ 7,916,603 $1,260,481 $1,112,739 $28,572,227 $20,749,468
191,089 4,278,978 1,027,475 292,135 192,089 11,271,240 1,950,902
485 812 859 61 996 714 791
230,506 844 9,345 16,690 93,215 -- 1,921,566
9,063 61,911 13,602 10,000 -- 37,420 10,556
-- 1,408,766 93,365 21,236 -- -- 297,675
-- -- -- -- -- -- 2,015
18,843 21,030 -- -- -- -- --
74,583 60,178 10,929 701 743 27,382 69,951
327,678 -- -- -- -- -- --
-- -- 2,075 43,239 40,401 -- --
13,264 17,554 -- -- -- 13,264 13,264
-- -- -- -- 22,656 -- --
2,681,946 767,000 -- 17,422 -- -- 814,000
----------- ----------- ----------- ---------- ---------- ----------- -----------
33,586,904 52,248,415 9,074,253 1,661,965 1,462,839 39,922,247 25,830,188
----------- ----------- ----------- ---------- ---------- ----------- -----------
205,424 118,728 2,500 -- -- 539,497 25,740
-- 250,000 63,746 27,571 75,698 1,576,023 1,900,084
-- -- -- -- -- -- --
-- -- -- -- -- -- --
5,322 2,867 2,135 1,280 407 2,940 2,366
646 2,139 180 32 31 826 469
106,698 275,976 -- -- -- 138,403 40,636
10,087 9,684 10,874 9,320 9,820 9,493 9,600
9,531 10,700 10,095 10,814 10,128 10,010 10,601
360 360 360 340 340 590 312
1,489 1,553 1,602 968 1,468 1,487 1,596
-- -- -- -- -- -- --
-- 31,333 -- -- -- -- --
2,681,946 767,000 -- 17,422 -- -- 814,000
----------- ----------- ----------- ---------- ---------- ----------- -----------
3,021,503 1,470,340 91,492 67,747 97,892 2,279,269 2,805,404
----------- ----------- ----------- ---------- ---------- ----------- -----------
$30,565,401 $50,778,075 $ 8,982,761 $1,594,218 $1,364,947 $37,642,978 $23,024,784
=========== =========== =========== ========== ========== =========== ===========
$27,912,383 $40,306,223 $10,145,241 $1,559,483 $1,313,252 $31,793,105 $23,680,318
344,740 70,025 -- 7,607 -- 522,417 314,449
(1,349,273) 6,196,073 (1,355,973) 15,019 (9,948) 4,748,775 (1,912,687)
20,635 21,011 (75) (141) 600 -- 2,150
3,636,916 4,184,743 193,568 12,250 61,043 578,681 940,554
----------- ----------- ----------- ---------- ---------- ----------- -----------
$30,565,401 $50,778,075 $ 8,982,761 $1,594,218 $1,364,947 $37,642,978 $23,024,784
=========== =========== =========== ========== ========== =========== ===========
2,097,824 3,010,510 825,657 120,130 98,358 1,934,541 1,654,052
=========== =========== =========== ========== ========== =========== ===========
$ 14.57 $ 16.87 $ 10.88 $ 13.27 $ 13.88 $ 19.46 $ 13.92
=========== =========== =========== ========== ========== =========== ===========
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
----------- ----------- --------------
<S> <C> <C>
$12,675,048 $12,096,892 $3,293,599
=========== =========== ==========
$14,721,255 $12,096,892 $3,469,182
-- 1,740,805 432,200
-- 71 511
630,281 -- 192,226
4,485 1,140,467 2,329
409,185 -- 130,663
-- -- --
9,631 -- 13,902
42,907 -- 7,555
36 20,948 --
-- 16,933 45,766
13,264 13,264 --
-- -- --
560,213 -- 71,769
----------- ----------- ----------
16,391,257 15,029,380 4,366,103
----------- ----------- ----------
34,944 48,472 545,030
115,504 -- 64,302
-- -- --
-- -- --
5,998 2,198 1,741
346 651 79
12,397 -- --
9,851 8,845 9,657
9,909 10,145 9,415
590 440 312
628 132 1,198
-- 67,905 --
-- -- --
560,213 -- 71,769
----------- ----------- ----------
750,380 138,788 703,503
----------- ----------- ----------
$15,640,877 $14,890,592 $3,662,600
=========== =========== ==========
$14,269,234 $14,890,592 $3,825,896
151,677 -- --
(839,050) -- (352,402)
12,809 -- 13,523
2,046,207 -- 175,583
----------- ----------- ----------
$15,640,877 $14,890,592 $3,662,600
=========== =========== ==========
946,839 14,890,622 332,563
=========== =========== ==========
$ 16.52 $ 1.00 $ 11.01
=========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-53
<PAGE> 98
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------
VARIABLE
VARIABLE VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN AMERICA
INCOME FUND INCOME FUND INCOME FUND FUND
----------- --------------- ----------- -------------
<S> <C> <C> <C> <C>
Investment income (Note 1):
Dividends..................................................... $ -- $ -- $ -- $ 361,161
Interest...................................................... 2,452,031 867,199 289,380 686,448
Other......................................................... 1,600 -- -- --
---------- ---------- -------- -----------
Total investment income *..................................... 2,453,631 867,199 289,380 1,047,609
---------- ---------- -------- -----------
Expenses:
Investment management and administration fees (Note 2)........ 173,720 81,039 33,749 205,457
Amortization of organizational costs (Note 1)................. 6,263 6,263 6,263 6,263
Audit fees.................................................... 37,350 31,250 31,750 37,250
Custodian fees (Note 1)....................................... 28,175 21,728 2,670 55,082
Fund accounting fees (Note 2)................................. 5,848 2,726 1,197 5,098
Legal fees.................................................... 6,361 5,805 5,477 7,475
Printing and postage expenses................................. 25,640 24,589 25,675 24,865
Registration and filing fees.................................. 650 650 650 650
Trustees' fees and expenses (Note 2).......................... 3,650 3,650 3,650 3,650
Other expenses................................................ 600 1,413 4,006 70
---------- ---------- -------- -----------
Total expenses................................................ 288,257 179,113 115,087 345,860
---------- ---------- -------- -----------
Expenses reimbursed by LGT Asset Management, Inc. (Note
2)......................................................... (56,631) (71,061) (70,086) (89,040)
Other expense reductions (Notes 1 & 5)...................... -- -- -- (14,669)
---------- ---------- -------- -----------
Total net expenses after reimbursement and reductions......... 231,626 108,052 45,001 242,151
---------- ---------- -------- -----------
Net investment income........................................... 2,222,005 759,147 244,379 805,458
---------- ---------- -------- -----------
Net realized and unrealized gain (loss) on investments and
foreign currencies (Note 1):
Net realized gain (loss) on investments....................... (91,900) 973,908 71,394 (6,228,909)
Net realized gain (loss) on foreign currency transactions..... (370,151) (458,271) -- (271,353)
---------- ---------- -------- -----------
Net realized gain (loss) during the year.................. (462,051) 515,637 71,394 (6,500,262)
---------- ---------- -------- -----------
Net change in unrealized appreciation (depreciation) on
translation of
assets and liabilities in foreign currencies................ (75,200) (69,644) -- (8,565)
Net change in unrealized appreciation (depreciation) of
investments, including futures.............................. 2,375,053 357,858 290,078 (500,292)
---------- ---------- -------- -----------
Net unrealized appreciation (depreciation) during the
year..................................................... 2,299,853 288,214 290,078 (508,857)
---------- ---------- -------- -----------
Net realized and unrealized gain (loss) on investments and
foreign currencies............................................ 1,837,802 803,851 361,472 (7,009,119)
---------- ---------- -------- -----------
Net increase (decrease) in net assets resulting from
operations.................................................... $4,059,807 $1,562,998 $605,851 $(6,203,661)
========== ========== ======== ===========
- ------------------
* Net of foreign withholding taxes of.......................... $ 6,129 $ 703 $ -- $ 40,134
** The Variable Infrastructure and Variable Natural Resources Funds did not commence operations until January
31, 1995.
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-54
<PAGE> 99
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------------------------------------------------------------------
VARIABLE
VARIABLE VARIABLE TELE- VARIABLE VARIABLE VARIABLE VARIABLE NEW
GROWTH & COMMUNICATIONS EMERGING INFRASTRUCTURE NATURAL AMERICA PACIFIC
INCOME FUND FUND MARKETS FUND FUND** RESOURCES FUND** FUND FUND
----------- -------------- ------------ -------------- ---------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 625,259 $ 368,360 $ 139,301 $ 7,488 $ 60,959 $ 218,369 $ 457,755
791,948 224,144 68,520 9,369 7,003 619,031 131,251
-- -- -- -- 3,143 47 --
----------- ---------- ----------- -------- -------- ---------- ----------
1,417,207 592,504 207,821 16,857 71,105 837,447 589,006
----------- ---------- ----------- -------- -------- ---------- ----------
277,913 434,684 76,146 6,836 5,918 236,272 204,362
6,263 6,263 -- -- -- 6,263 6,263
36,250 35,450 36,950 16,700 16,000 24,050 35,313
35,626 28,008 17,961 10,844 6,556 22,981 39,820
7,020 11,040 1,923 180 163 8,095 5,100
7,011 5,475 5,475 3,010 3,010 5,876 6,361
25,270 24,797 27,475 19,075 19,575 25,835 25,931
651 650 650 340 340 650 650
3,452 3,650 2,450 1,640 2,140 3,650 3,650
1,864 63 -- -- 14 284 1,850
----------- ---------- ----------- -------- -------- ---------- ----------
401,320 550,080 169,030 58,625 53,716 333,956 329,300
----------- ---------- ----------- -------- -------- ---------- ----------
(53,927) (6,725) (73,847) (50,077) (46,319) (18,927) (73,848)
(6,201) (20,876) (5,533) (174) (631) -- (22,615)
----------- ---------- ----------- -------- -------- ---------- ----------
341,192 522,479 89,650 8,374 6,766 315,029 232,837
----------- ---------- ----------- -------- -------- ---------- ----------
1,076,015 70,025 118,171 8,483 64,339 522,418 356,169
----------- ---------- ----------- -------- -------- ---------- ----------
53,219 6,847,299 (1,303,135) 15,019 (8,040) 4,769,966 (1,407,977)
(1,126,256) (588,487) (17,275) (876) 468 -- (103,271)
----------- ---------- ----------- -------- -------- ---------- ----------
(1,073,037) 6,258,812 (1,320,410) 14,143 (7,572) 4,769,966 (1,511,248)
----------- ---------- ----------- -------- -------- ---------- ----------
(6,017) (8,781) 119 (141) 600 -- 2,804
4,101,938 2,438,359 714,821 12,250 61,043 96,985 1,718,248
----------- ---------- ----------- -------- -------- ---------- ----------
4,095,921 2,429,578 714,940 12,109 61,643 96,985 1,721,052
----------- ---------- ----------- -------- -------- ---------- ----------
3,022,884 8,688,390 (605,470) 26,252 54,071 4,866,951 209,804
----------- ---------- ----------- -------- -------- ---------- ----------
$ 4,098,899 $8,758,415 $ (487,299) $ 34,735 $118,410 $5,389,369 $ 565,973
=========== ========== =========== ======== ======== ========== ==========
$ 75,628 $ 57,943 $ 9,519 $ 499 $ 272 $ -- $ 56,032
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
---------- -------- -------------
<S> <C> <C>
$ 312,925 $ -- $ 55,826
41,523 938,185 15,397
-- -- --
---------- -------- ---------
354,448 938,185 71,223
---------- -------- ---------
152,847 79,561 32,608
6,263 6,263 --
34,750 28,250 36,250
27,622 11,017 11,255
3,874 4,026 816
5,875 6,675 5,475
26,121 26,887 25,828
650 650 650
2,650 2,150 2,150
1,921 2,217 --
---------- -------- ---------
262,573 167,696 115,032
---------- -------- ---------
(71,515) (48,354) (74,272)
(8,230) -- --
---------- -------- ---------
182,828 119,342 40,760
---------- -------- ---------
171,620 818,843 30,463
---------- -------- ---------
30,329 -- (286,294)
(700,534) -- (28,047)
---------- -------- ---------
(670,205) -- (314,341)
---------- -------- ---------
(104,599) -- 7,389
2,040,475 -- 312,493
---------- -------- ---------
1,935,876 -- 319,882
---------- -------- ---------
1,265,671 -- 5,541
---------- -------- ---------
$1,437,291 $818,843 $ 36,004
========== ======== =========
$ 46,006 $ -- $ 9,470
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-55
<PAGE> 100
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------
VARIABLE
VARIABLE VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN AMERICA
INCOME FUND INCOME FUND INCOME FUND FUND
------------ --------------- ------------ -------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income....................................... $ 2,222,005 $ 759,147 $ 244,379 $ 805,458
Net realized gain (loss) on investments and foreign currency
transactions.............................................. (462,051) 515,637 71,394 (6,500,262)
Net change in unrealized appreciation (depreciation) on
translation of assets
and liabilities in foreign currencies..................... (75,200) (69,644) -- (8,565)
Net change in unrealized appreciation (depreciation) of
investments............................................... 2,375,053 357,858 290,078 (500,292)
------------ ------------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations................................................ 4,059,807 1,562,998 605,851 (6,203,661)
------------ ------------- ------------ ------------
Distributions to shareholders: (Note 1)
From net investment income.................................. (1,991,043) (722,396) (234,899) (221,575)
From net realized gain on investments....................... -- -- -- (2,769,692)
In excess of net realized gain on investments............... -- -- -- --
Return of capital........................................... -- -- -- --
------------ ------------- ------------ ------------
Total distributions......................................... (1,991,043) (722,396) (234,899) (2,991,267)
------------ ------------- ------------ ------------
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested............ 24,191,843 12,649,938 20,665,939 38,533,313
Decrease from capital shares repurchased.................... (24,283,139) (11,200,397) (17,459,191) (36,198,875)
------------ ------------- ------------ ------------
Net increase (decrease) from capital share transactions..... (91,296) 1,449,541 3,206,748 2,334,438
------------ ------------- ------------ ------------
Total increase (decrease) in net assets....................... 1,977,468 2,290,143 3,577,700 (6,860,490)
Net assets:
Beginning of period......................................... 23,367,416 9,653,603 2,414,745 26,631,336
------------ ------------- ------------ ------------
End of period............................................... $ 25,344,884 $ 11,943,746 $ 5,992,445 $ 19,770,846
============ ============= ============ ============
</TABLE>
===============================================================================
For the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------
VARIABLE
VARIABLE VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN AMERICA
INCOME FUND INCOME FUND INCOME FUND FUND
------------ --------------- ------------ -------------
<S> <C> <C> <C> <C>
Increase in net assets
Operations:
Net investment income (loss)................................ $ 1,761,766 $ 636,934 $ 93,354 $ 167,407
Net realized gain (loss) on investments and foreign currency
transactions.............................................. (3,861,004) (1,287,732) (71,665) 2,726,006
Net change in unrealized appreciation (depreciation) on
translation
of assets and liabilities in foreign currencies........... (72,024) (15,202) (101,640) (1,004)
Net change in unrealized appreciation (depreciation) of
investments............................................... (1,980,697) (103,152) -- (2,572,849)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets resulting from
operations................................................ (4,151,959) (769,152) (79,951) 319,560
------------ ------------ ----------- ------------
Distributions to shareholders: (Note 1)
From net investment income.................................. (1,533,744) (604,061) (94,526) (33,315)
From net realized gain on investments....................... (877,393) -- (9,966) (58,519)
In excess of net realized gain on investments............... -- -- -- --
Return of capital........................................... (93,845) (69,860) -- --
Capital share transactions: (Note 4)
Increase from capital shares sold and reinvested............ 26,867,913 11,332,658 4,795,207 37,598,809
Decrease from capital shares repurchased.................... (14,932,250) (6,371,492) (3,169,722) (19,435,079)
------------ ------------ ----------- ------------
Net increase from capital share transactions................ 11,935,663 4,961,166 1,625,485 18,163,730
------------ ------------ ----------- ------------
Total increase in net assets.................................. 5,278,722 3,518,093 1,441,042 18,391,456
Net assets:
Beginning of period......................................... 18,088,694 6,135,510 973,703 8,239,880
------------ ------------ ----------- ------------
End of period............................................... $ 23,367,416 $ 9,653,603 $ 2,414,745 $ 26,631,336
============ ============ =========== ============
</TABLE>
- ------------------
* The Variable International and Variable Emerging Markets Funds did not
commence operations until July 5, 1994.
** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
The accompanying notes are an integral part of the financial statements.
---------
F-56
<PAGE> 101
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
- ------------------------------------------------------------------------------------------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & COMMUNICATIONS EMERGING INFRASTRUCTURE NATURAL AMERICA NEW PACIFIC
INCOME FUND FUND MARKETS FUND* FUND** RESOURCES FUND** FUND FUND
----------- -------------- ------------- -------------- ---------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,076,015 $ 70,025 $ 118,171 $ 8,483 $ 64,339 $ 522,418 $ 356,169
(1,073,037) 6,258,812 (1,320,410) 14,143 (7,572) 4,769,966 (1,511,248)
(6,017) (8,781) 119 (141) 600 -- 2,804
4,101,938 2,438,359 714,821 12,250 61,043 96,985 1,718,248
----------- ------------ ------------ ---------- ----------- ------------ ------------
4,098,899 8,758,415 (487,299) 34,735 118,410 5,389,369 565,973
----------- ------------ ------------ ---------- ----------- ------------ ------------
(818,464) (80,457) (73,785) -- (62,702) (117,889) (90,012)
-- (965,478) -- -- -- (488,398) --
-- -- -- -- (4,775) -- --
-- -- (16,304) -- -- -- --
----------- ------------ ------------ ---------- ----------- ------------ ------------
(818,464) (1,045,935) (90,089) -- (67,477) (606,287) (90,012)
----------- ------------ ------------ ---------- ----------- ------------ ------------
11,374,376 24,234,343 12,813,354 2,285,935 3,154,100 73,573,562 95,990,038
(9,669,648) (17,197,275) (10,519,830) (826,452) (1,940,086) (55,970,932) (92,832,446)
----------- ------------ ------------ ---------- ----------- ------------ ------------
1,704,728 7,037,068 2,293,524 1,459,483 1,214,014 17,602,630 3,157,592
----------- ------------ ------------ ---------- ----------- ------------ ------------
4,985,163 14,749,548 1,716,136 1,494,218 1,264,947 22,385,712 3,633,553
25,580,238 36,028,527 7,266,625 100,000 100,000 15,257,266 19,391,231
----------- ------------ ------------ ---------- ----------- ------------ ------------
$30,565,401 $ 50,778,075 $ 8,982,761 $1,594,218 $ 1,364,947 $ 37,642,978 $ 23,024,784
=========== ============ ============ ========== =========== ============ ============
<CAPTION>
- ----
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND*
------------ ------------- -------------
<S> <C> <C>
$ 171,620 $ 818,843 $ 30,463
(670,205) -- (314,341)
(104,599) -- 7,389
2,040,475 -- 312,493
------------ ------------- ------------
1,437,291 818,843 36,004
------------ ------------- ------------
(154,451) (818,843) (30,792)
-- -- (5,018)
-- -- --
-- -- --
------------ ------------- ------------
(154,451) (818,843) (35,810)
------------ ------------- ------------
39,895,470 179,670,442 15,020,503
(40,557,920) (184,253,572) (13,587,017)
------------ ------------- ------------
(662,450) (4,583,130) 1,433,486
------------ ------------- ------------
620,390 (4,583,130) 1,433,680
15,020,487 19,473,722 2,228,920
------------ ------------- ------------
$ 15,640,877 $ 14,890,592 $ 3,662,600
============ ============= ============
</TABLE>
================================================================================
For the year ended December 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------------------------------------------------
VARIABLE VARIABLE TELE- VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & COMMUNICATIONS EMERGING INFRASTRUCTURE NATURAL AMERICA NEW PACIFIC
INCOME FUND FUND MARKETS FUND* FUND** RESOURCES FUND** FUND FUND
----------- -------------- ------------- -------------- ---------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 778,934 $ 73,852 $ 40,749 -- -- $ 126,208 $ 129,772
(310,777) 913,277 (45,847) -- -- 480,878 (441,437)
(4,932) 29,242 (194) -- -- -- (28,748)
(1,038,064) 1,222,998 (521,253) -- -- 365,915 (1,706,578)
----------- ------------ ------------ ---------- ----------- ----------- ------------
(574,839) 2,239,369 (526,545) -- -- 973,001 (2,046,991)
----------- ------------ ------------ ---------- ----------- ----------- ------------
(644,305) (31,627) (40,749) -- -- (136,601) (51,590)
-- -- -- -- -- -- --
-- -- (34,465) -- -- -- --
-- -- -- -- -- -- --
21,823,916 36,093,905 11,452,183 -- -- 21,471,531 40,348,942
(6,701,077) (10,175,735) (3,583,799) -- -- (8,750,561) (26,803,641)
----------- ------------ ------------ ---------- ----------- ----------- ------------
15,122,839 25,918,170 7,868,384 -- -- 12,720,970 13,545,301
----------- ------------ ------------ ---------- ----------- ----------- ------------
13,903,695 28,125,912 7,266,625 -- -- 13,557,370 11,446,720
11,676,543 7,902,615 -- -- -- 1,699,896 7,944,511
----------- ------------ ------------ ---------- ----------- ----------- ------------
$25,580,238 $ 36,028,527 $ 7,266,625 -- -- $15,257,266 $ 19,391,231
=========== ============ ============ ========== =========== =========== ============
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND*
------------ ------------- -------------
<S> <C> <C>
$ 186,123 $ 387,604 $ 11,394
(212,500) -- (7,154)
101,790 -- 6,134
(402,308) -- (136,910)
------------ ------------ -----------
(326,895) 387,604 (126,536)
------------ ------------ -----------
(1,710) (387,604) (9,954)
(12,542) --
-- -- --
-- -- --
21,078,341 75,875,884 4,426,908
(11,126,870) (60,177,597) (2,061,498)
------------ ------------ -----------
9,951,471 15,698,287 2,365,410
------------ ------------ -----------
9,610,324 15,698,287 2,228,920
5,410,163 3,775,435 --
------------ ------------ -----------
$ 15,020,487 $ 19,473,722 $ 2,228,920
============ ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
---------
F-57
<PAGE> 102
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------
VARIABLE STRATEGIC INCOME FUND
-----------------------------------------------------------------
FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- -----------------------
- -
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............................. $ 10.82 $ 14.57 $ 12.00
------- ------- -------
Net investment income (loss)..................................... 1.07(a) 1.71(b) 0.61
Net realized and unrealized gain (loss) on investments........... 0.93 (4.17) 2.57
------- ------- -------
Net increase (decrease) resulting from operations.............. 2.00 (2.46) 3.18
------- ------- -------
Distributions to shareholders:
From net investment income....................................... (0.96) (0.79) (0.61)
From net realized gain on investments............................ -- (0.45) --
In excess of net realized gain on investments.................... -- -- --
Return of capital................................................ -- (0.05) --
------- ------- -------
Total distributions............................................ (0.96) (1.29) (0.61)
Net asset value, end of period.................................... $ 11.86 $ 10.82 $ 14.57
======= ======= =======
Total investment return + (e)..................................... 19.50% (17.09)% 27.5%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's).............................. $25,345 $23,367 $18,089
Ratio of net investment income (loss) to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++........................................... 9.59% 7.58% 6.6%
Without reimbursement by LGT and expense reductions ++........... 9.35% 7.43% 6.3%
Without expenses assumed by LGT (d) ++........................... --% --% 5.2%
Ratio of expenses to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++.......................................... 1.00% 1.00% 0.5%
Without reimbursement by LGT and expense reductions ++........... 1.24% 1.15% 0.9%
Without expenses assumed by LGT (d) ++........................... --% --% 1.9%
Portfolio turnover ++............................................. 193% 313% 245%
</TABLE>
==================================================================
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
----------------------------------------------------------------
FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- ------------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............................. $ 12.99 $ 13.77 $ 12.00
------- ------- -------
Net investment income (loss)..................................... 0.52(a) 0.46(b) 0.31(c)
Net realized and unrealized gain (loss) on investments........... 1.46 (0.85) 1.79
------- ------- -------
Net increase (decrease) resulting from operations.............. 1.98 (0.39) 2.10
------- ------- -------
Distributions to shareholders:
From net investment income....................................... (0.40) (0.39) (0.28)
From net realized gain on investments............................ -- -- (0.05)
In excess of net realized gain on investments.................... -- -- --
Return of capital................................................ -- -- --
------- ------- -------
Total distributions............................................ (0.40) (0.39) (0.33)
Net asset value, end of period.................................... $ 14.57 $ 12.99 $ 13.77
======= ======= =======
Total investment return+ (e)...................................... 15.49% (2.85)% 17.8%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in 000's).............................. $30,565 $25,580 $11,677
Ratio of net investment income (loss) to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++........................................... 3.87% 3.69% 3.2%
Without reimbursement by LGT and expense reductions ++........... 3.66% 3.45% 2.7%
Without expenses assumed by LGT (d) ++........................... --% --% 1.1%
Ratio of expenses to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++........................................... 1.23% 1.25% 0.6%
Without reimbursement by LGT and expense reductions ++........... 1.44% 1.49% 1.2%
Without expenses assumed by LGT (d) ++........................... --% --% 2.8%
Portfolio turnover ++............................................. 73% 53% 17%
</TABLE>
- ------------------
(a) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.03 for the Variable Strategic Income Fund, $0.07 for the
Variable Global Government Income Fund, $0.14 for the Variable U.S.
Government Income Fund, $0.06 for the Variable Latin America Fund, $0.03 for
the Variable Growth & Income Fund, $0.00 for the Variable Telecommunications
Fund, $0.09 for the Variable Emerging Markets Fund, $0.42 for the Variable
Infrastructure Fund, and $0.47 for the Variable Natural Resources Fund
(Note 2).
(b) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.04 for the Variable Strategic Income Fund, $0.08 for the
Variable Global Government Income Fund,
$0.48 for the Variable U.S. Government Income Fund, $0.04 for the Variable
Latin America Fund, $0.03 for the Variable Growth & Income Fund, $0.01 for
the Variable Telecommunications Fund, and
$0.07 for the Variable Emerging Markets Fund (Note 2).
(c) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.03 for the Variable Strategic Income Fund, $0.06 for the
Variable Global Government Income Fund, $0.19 for the Variable U.S.
Government Income Fund, $0.02 for the Variable Latin America Fund, $0.05 for
the Variable Growth & Income Fund, and $0.00 for the Variable
Telecommunications Fund (Note 2).
---------
F-58
<PAGE> 103
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL GT GLOBAL
--------------------------------------------------------------- --------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND VARIABLE U.S. GOVERNMENT INCOME FUND
--------------------------------------------------------------- --------------------------------------------------------------
FEBRUARY 10, 1993 (COM- FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993 DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- ------------------------ ----------------- ----------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10.63 $ 12.53 $12.00 $ 10.79 $ 12.23 $12.00
------ ------ ------ ------- ------ ------
0.79(a) 0.77(b) 0.57(c) 0.62(a) 0.63(b) 0.53(c)
0.84 (1.85) 0.52 0.93 (1.39) 0.23
------ ------ ------ ------- ------ ------
1.63 (1.08) 1.09 1.55 (0.76) 0.76
------ ------ ------ ------- ------ ------
(0.75) (0.73) (0.56) (0.60) (0.62) (0.53)
-- -- -- -- (0.06) --
-- -- -- -- -- --
-- (0.09) -- -- -- --
------ ------ ------ ------- ------ ------
(0.75) (0.82) (0.56) (0.60) (0.68) (0.53)
$ 11.51 $ 10.63 $12.53 $ 11.74 $ 10.79 $12.23
======= ======= ====== ======= ======= ======
15.85% (8.70)% 9.5% 14.73% (6.27)% 6.4%
======= ======= ====== ======= ======= ======
$11,944 $ 9,654 $6,136 $5,992 $ 2,415 $ 974
7.03% 6.89% 6.1% 5.43% 5.53% 5.3%
6.37% 6.21% 5.5% 3.87% 1.29% 3.4%
--% --% 2.4% --% --% (6.9)%
1.00% 1.00% 0.5% 1.00% 0.38% 0.0%
1.66% 1.68% 1.1% 2.56% 4.63% 1.9%
--% --% 4.2% --% --% 12.3%
394% 350% 298% 186% 34% 81%
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
-----------------------------------------------------------------
FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- ------------------------
<S> <C> <C> <C>
$ 19.17 $ 17.68 $12.00
------ ------ ------
0.51(a) 0.11(b) 0.04(c)
(5.10) 1.49 5.64
------ ------ ------
(4.59) 1.60 5.68
------ ------ ------
(0.16) (0.04) --
(2.00) (0.07) --
-- -- --
-- -- --
------ ------ ------
(2.16) (0.11) --
$ 12.42 $ 19.17 $17.68
======= ======= ======
(24.14)% 9.14% 47.3%
======= ======= ======
$19,771 $26,631 $8,240
4.43% 0.82% 1.0%
3.92% 0.49% 0.4%
--% --% (2.5)%
1.18% 1.25% 0.7%
1.69% 1.58% 1.3%
--% --% 4.2%
140% 185% 78%
</TABLE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL GT GLOBAL
------------------------------------------------------------ -----------------------------------------
VARIABLE TELECOMMUNICATIONS FUND* VARIABLE EMERGING MARKETS FUND**
------------------------------------------------------------ -----------------------------------------
YEAR ENDED YEAR ENDED OCTOBER 18, 1993 YEAR ENDED JULY 5, 1994 TO
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993 DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- ----------------- -------------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 13.98 $ 13.07 $12.00 $ 11.89 $ 12.00
------ ------ ------ ------ ------
0.02(a) 0.01(b) 0.04(c) 0.14(a) 0.07(b)
3.26 0.92 1.03 (1.04) (0.05)
------ ------ ------ ------ ------
3.28 0.93 1.07 (0.90) 0.02
------ ------ ------ ------ ------
(0.03) (0.02) -- (0.09) (0.07)
(0.36) -- -- -- --
-- -- -- -- (0.06)
-- -- -- (0.02) --
------ ------ ------ ------ ------
(0.39) (0.02) -- (0.11) (0.13)
$ 16.87 $ 13.98 $13.07 $ 10.88 $ 11.89
======= ======= ====== ======= =======
23.66% 7.15% 8.9% (7.54)% 0.12%
======= ======= ====== ======= =======
$50,778 $36,029 $7,903 $ 8,983 $ 7,267
0.16% 0.31% 2.5% 1.55% 4.10%
0.10% 0.07% 2.3% 0.51% (0.20)%
--% --% 1.6% --% --%
1.20% 1.25% 0.9% 1.18% 0.00%
1.26% 1.49% 1.1% 2.22% 4.30%
--% --% 1.8% --% --%
70% 81% 20% 210% 117%
<CAPTION>
GT GLOBAL
-------------------------------------------------------
VARIABLE INFRASTRUCTURE VARIABLE NATURAL RESOURCES
FUND*** FUND***
------------------------ ----------------------------
JANUARY 31, 1995 JANUARY 31, 1995
TO DECEMBER 31, 1995 TO DECEMBER 31, 1995
------------------------ ----------------------------
<S> <C> <C>
$12.00 $12.00
------ ------
0.07(a) 0.73(a)
1.20 1.91
------ ------
1.27 2.64
------ ------
-- (0.71)
-- --
-- (0.05)
-- --
------ ------
-- (0.76)
$13.27 $13.88
====== ======
10.58% 22.20%
====== ======
$1,594 $1,365
1.36% 10.87%
(6.65)% 2.94%
--% --%
1.34% 1.14%
9.35% 9.07%
--% --%
38% 875%
</TABLE>
- ------------------
(d) During the period ended December 31, 1993, LGT voluntarily assumed certain
expenses for the Funds (Note 2).
(e) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
* The Variable Telecommunications Fund did not commence operations until
October 18, 1993.
** The Variable Emerging Markets Fund did not commence operations until July 5,
1994.
*** The Variable Infrastructure and Variable Natural Resources Funds did not
commence operations until January 31, 1995.
---------
F-59
<PAGE> 104
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding,
total investment return, ratios and supplemental data. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------
VARIABLE AMERICA FUND
-----------------------------------------------------------------
FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- -----------------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............................. $ 15.81 $ 13.75 $12.00
------ ------ ------
Net investment income (loss)..................................... 0.21(a) 0.48(b) 1.11(c)
Net realized and unrealized gain (loss) on investments........... 3.80 2.08 0.64
------ ------ ------
Net increase (decrease) resulting from operations.............. 4.01 2.56 1.75
------ ------ ------
Distributions to shareholders:
From net investment income....................................... (0.07) (0.50) --
From net realized gain on investments............................ (0.29) -- --
------ ------ ------
Total distributions............................................ (0.36) (0.50) --
Net asset value, end of period.................................... $ 19.46 $ 15.81 $13.75
======= ======= ======
Total investment return + (e)..................................... 25.37% 18.88% 14.7%
======= ======== ======
Ratios and supplemental data:
Net assets, end of period (in 000's).............................. $37,643 $15,257 $1,700
Ratio of net investment income (loss) to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++............................................ 1.66% 1.83% 14.1%
Without reimbursement by LGT and expense reductions ++........... 1.60% 0.76% 12.8%
Without expenses assumed by LGT (d) ++........................... --% --% 7.6%
Ratio of expenses to average net assets:
With reimbursement by LGT and expense reductions
(Notes 1, 2, & 5) ++............................................ 1.00% 0.98% 0.0%
Without reimbursement by LGT and expense reductions ++........... 1.06% 2.05% 1.3%
Without expenses assumed by LGT (d) ++........................... --% --% 6.5%
Portfolio turnover rate ++........................................ 79% 139% 831%
</TABLE>
================================================================================
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------
VARIABLE INTERNATIONAL FUND*
----------------------------------------
YEAR ENDED JULY 5, 1994, TO
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period..................................... $11.25 $12.00
------ ------
Net investment income (loss)............................................. 0.09(a) 0.06(b)
Net realized and unrealized gain (loss) on investments.................. (0.22) (0.76)
------ ------
Net increase (decrease) resulting from operations..................... (0.13) (0.70)
------ ------
Distributions to shareholders:
From net investment income.............................................. (0.09) (0.05)
From net realized gain on investments................................... (0.02) --
------ ------
Total distributions................................................... (0.11) (0.05)
Net asset value, end of period............................................ $11.01 $11.25
====== ======
Total investment return + (e)........................................... (1.14)% (5.81)%
====== ======
Ratios and supplemental data:
Net assets, end of period (in 000's)..................................... $3,663 $2,229
Ratio of net investment income (loss) to average net assets:
With reimbursement by LGT and expense reductions (Notes 1, 2, & 5) ++... 0.93% 3.33%
Without reimbursement by LGT and expense reductions ++.................. (1.35)% (2.56)%
Without expenses assumed by LGT (d) ++.................................. --% --%
Ratio of expenses to average net assets:
With reimbursement by LGT and expense reductions (Notes 1, 2, & 5) ++... 1.25% 0.69%
Without reimbursement by LGT and expense reductions ++.................. 3.53% 6.58%
Without expenses assumed by LGT (d) ++.................................. --% --%
Portfolio turnover rate ++............................................... 107% 17%
</TABLE>
- ------------------
(a) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.01 for the Variable America Fund, $0.04 for the Variable New
Pacific Fund, $0.08 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.22 for the Variable International Fund (Note 2).
(b) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.28 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.04 for the Variable Europe Fund, $0.00 for the Money Market
Fund, and $0.11 for the Variable International Fund (Note 2).
(c) Includes reimbursement by LGT Asset Management, Inc. of Fund operating
expenses of $0.10 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, $0.03 for the Variable Europe Fund, and $0.01 for the Money
Market Fund (Note 2).
---------
F-60
<PAGE> 105
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL GT GLOBAL
- --------------------------------------------------------------- -----------------------------------------------------------------
VARIABLE NEW PACIFIC FUND VARIABLE EUROPE FUND
- --------------------------------------------------------------- -----------------------------------------------------------------
FEBRUARY 10, 1993 (COM- FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993 DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
- ----------------- ----------------- ------------------------ ----------------- ----------------- ------------------------
<S> <C> <C> <C> <C> <C>
$ 14.01 $ 16.07 $12.00 $ 15.22 $ 15.33 $12.00
------- ------- ------ ------- ------- ------
0.20(a) 0.08(b) 0.04(c) 0.18(a) 0.16(b) 0.05(c)
(0.23) (2.08) 4.03 1.28 (0.25) 3.28
------- ------- ------ ------- ------- ------
(0.03) (2.00) 4.07 1.46 (0.09) 3.33
------- ------- ------ ------- ------- ------
(0.06) (0.06) -- (0.16) -- --
-- -- -- -- (0.02) --
------- ------- ------ ------- ------- ------
(0.06) (0.06) -- (0.16) (0.02) --
$ 13.92 $ 14.01 $16.07 $ 16.52 $ 15.22 $15.33
======= ======= ====== ======= ======= ======
(0.21)% (12.47)% 33.9% 9.66% (0.59)% 27.8%
======= ======= ====== ======= ======= ======
$23,025 $19,391 $7,945 $15,641 $15,020 $5,410
1.27% 0.83% 0.9% 1.12% 1.48% 1.1%
1.74% 0.48% 0.3% 0.60% 1.07% 0.4%
--% --% (2.0)% --% --% (2.8)%
1.14% 1.25% 0.6% 1.20% 1.25% 0.7%
1.61% 1.60% 1.3% 1.72% 1.66% 1.4%
--% --% 3.6% --% --% 4.6%
67% 30% 15% 123% 61% 27%
<CAPTION>
GT GLOBAL
----------------------------------------------------------------
MONEY MARKET FUND
----------------------------------------------------------------
FEBRUARY 10, 1993 (COM-
YEAR ENDED YEAR ENDED MENCEMENT OF OPERATIONS)
DECEMBER 31, 1995 DECEMBER 31, 1994 TO DECEMBER 31, 1993
----------------- ----------------- ------------------------
<S> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00
------- ------- ------
0.05(a) 0.03(b) 0.03(c)
-- -- --
------- ------- ------
0.05 0.03 0.03
------- ------- ------
(0.05) (0.03) (0.03)
-- -- --
------- ------- ------
(0.05) (0.03) (0.03)
$ 1.00 $ 1.00 $ 1.00
======= ======= ======
5.26% 3.48% 2.6%
======= ======= ======
$14,891 $19,474 $3,775
5.15% 3.70% 2.9%
4.85% 3.64% 2.1%
--% --% (2.6)%
0.75% 0.75% 0.2%
1.05% 0.81% 1.0%
--% --% 5.7%
N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ------------------
(d) During the period ended December 31, 1993, LGT voluntarily assumed certain
expenses for the Funds (Note 2).
(e) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of these
charges would reduce the total return figures for all periods shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
* The Variable International Fund did not commence operations until July 5,
1994.
---------
F-61
<PAGE> 106
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO
FINANCIAL STATEMENTS
December 31, 1995
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Variable Investment Series and GT Global Variable Investment Trust
("Companies") were organized as Massachusetts business trusts on May 26, 1992
and September 17, 1992, respectively. The Companies are registered under the
Investment Company Act of 1940, as amended ("1940 Act") as open-end management
investment companies. The GT Global Variable Investment Series operates as a
series company currently issuing five classes of shares of beneficial interest:
GT Global Variable New Pacific Fund, GT Global Variable Europe Fund, GT Global
Variable America Fund, GT Global Variable International Fund and GT Global Money
Market Fund. GT Global Variable Investment Trust operates as a series company
currently issuing nine classes of shares of beneficial interest: GT Global
Variable Latin America Fund, GT Global Variable Growth & Income Fund, GT Global
Variable Strategic Income Fund, GT Global Variable Global Government Income
Fund, GT Global Variable U.S. Government Income Fund, GT Global Variable
Emerging Markets Fund, GT Global Variable Telecommunications Fund, GT Global
Variable Infrastructure Fund, and GT Global Variable Natural Resources Fund.
(The classes of shares of beneficial interest for the two companies are referred
to herein collectively as the "Funds.") Each of the Funds is classified as a
diversified management investment company; except for GT Global Variable Latin
America Fund, GT Global Variable Growth & Income Fund, GT Global Variable
Strategic Income Fund and GT Global Variable Global Government Income Fund,
which are each registered as a non-diversified management investment company
under the 1940 Act.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and,
therefore, the financial statements may include certain estimates made by
management.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by LGT Asset Management, Inc.
("LGT", formerly known as G.T. Capital Management, Inc.) to be the primary
market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when LGT
deems it appropriate, prices obtained for the day of valuation from a bond
pricing service will be used. Short-term investments with a maturity of 60 days
or less are valued at amortized cost adjusted for foreign exchange translation
and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of each of
the Companies' Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Companies' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Funds after translation
to U.S. dollars based on the exchange rates on that day. The cost of each
security is determined using historical exchange rates. Income and withholding
taxes are translated at prevailing exchange rates when earned or incurred.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
---------
F-62
<PAGE> 107
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Funds, it is the
Funds' policy to always receive, as collateral, United States government
securities or other high quality debt securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Funds
under each agreement at its maturity. LGT is responsible for determining that
the value of these underlying securities remains at least equal to the resale
price.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Funds as an unrealized gain or loss. When the
Forward Contract is closed, the Funds record a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. Forward Contracts involve market risk in excess of the
amounts shown in the Funds' "Statements of Assets and Liabilities." The Funds
could be exposed to risk if the counterparties are unable to meet the terms of
the contracts or if the value of the currency changes unfavorably. The Funds may
enter into Forward Contracts in connection with planned purchases or sales of
securities or to hedge against adverse fluctuations in exchange rates between
currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When a Fund writes a call or put option, an amount equal to the premium received
is included in the Fund's "Statement of Assets and Liabilities" as an asset and
an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if a Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received. A Fund can write options only on a
covered basis, which, for a call, requires that the Fund hold the underlying
securities and, for a put, requires the Fund to set aside cash, U.S. government
securities or other liquid, high grade debt securities in an amount not less
than the exercise price or otherwise provide adequate cover at all times while
the put option is outstanding. The Funds may use options to manage their
exposure to the stock or bond markets and to fluctuations in currency values or
interest rates.
The premium paid by a Fund for the purchase of a call or put option is included
in the Fund's "Statement of Assets and Liabilities" as an investment and
subsequently "marked-to-market" to reflect the current market value of the
option. If an option which a Fund has purchased expires on the stipulated
expiration date, the Fund would realize a loss in the amount of the cost of the
option. If a Fund enters into a closing sale transaction, the Fund would realize
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If a Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If a Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract a
Fund is required to pledge to the broker an amount of cash or securities
---------
F-63
<PAGE> 108
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
equal to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
A Fund may use futures contracts to manage its exposure to the stock or bond
markets and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED
INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to the collection of withholding tax rebate,
income is recorded net of all withholding tax with any rebate recorded when
received. A Fund may trade securities on other than normal settlement terms.
This may increase the risk if the other party to the transaction fails to
deliver and causes the Fund to subsequently invest at less advantageous prices.
(H) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by the Fund on the ex-date. For the
Money Market Fund, dividends are declared daily and paid monthly from net
investment income. The Variable Strategic Income Fund, Variable Global
Government Income Fund and Variable U.S. Government Income Fund declare and pay
dividends from net investment income, if any, monthly. The Variable Growth &
Income Fund declares and pays dividends from net investment income, if any,
quarterly. The Variable Latin America Fund, Variable Telecommunications Fund,
Variable New Pacific Fund, Variable Europe Fund, Variable Emerging Markets Fund,
Variable International Fund, Variable America Fund, Variable Infrastructure
Fund, and Variable Natural Resources Fund declare and pay dividends from net
investment income, if any, annually. With respect to each Fund, dividends from
net realized capital gains, if any, are normally declared and paid annually.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund and timing
differences.
(I) TAXES
It is the policy of the Funds to continue to meet the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended ("Code"). It is also the intention of the Funds to make
distributions sufficient to avoid imposition of any excise tax under Section
4982 of the Code. Therefore, no provision has been made for Federal taxes on
income, capital gains, and unrealized appreciation of securities held, or for
excise tax on income and capital gains. The following funds have capital loss
carryforwards:
<TABLE>
<CAPTION>
Capital Loss Expires in
GT Global Funds Carryforward Year
- --------------------------------------- ----------
<S> <C> <C>
Variable Strategic Income $3,286,925 2002
820,482 2003
Variable Global Government
Income 1,174,971 2002
Variable Latin America 6,286,637 2003
Variable Growth and Income 221,353 2002
1,207,812 2003
Variable Emerging Markets 1,143,261 2003
Variable New Pacific 12,288 2001
430,871 2002
1,467,506 2003
Variable Europe 75,636 2002
758,843 2003
Variable International 271,119 2003
</TABLE>
(J) DEFERRED ORGANIZATIONAL EXPENSES
Costs incurred by GT Global Variable Investment Series and Trust in connection
with their organization, which aggregated $125,333 and $188,000, respectively,
are being amortized on a straight-line basis for a five year period. While LGT
has advanced certain of the Companies' organizational costs incurred to date,
the Companies may reimburse LGT for the amount of these advances. In the event
that LGT redeems any of the initial 2,083.333 shares of each of the Variable New
Pacific Fund, Variable Europe Fund and Variable America Fund; or the initial
25,000 shares of the Money Market Fund; or the initial 1,666.667 shares of each
of the Variable Strategic Income Fund, Variable Government Income Fund, Variable
U.S. Government Income Fund, Variable Latin America Fund and the Variable Growth
& Income Fund; or the initial 1.000 share of the Variable Telecommunications
Fund, within the five year amortization period, the respective Fund's
unamortized organizational expenses allocable to the shares redeemed will be
deducted from LGT's redemption proceeds.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and
---------
F-64
<PAGE> 109
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
currency transactions that are not inherent in investments of domestic origin.
The Funds' investments in emerging market countries may involve greater risks
than investments in more developed markets and the prices of such investments
may be volatile. These risks of investing in foreign and emerging markets may
include foreign currency exchange rate fluctuations, perceived credit risk,
adverse political and economic developments and possible adverse foreign
government intervention.
(L) INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(M) RESTRICTED SECURITIES
Certain of the Funds are permitted to invest in a limited amount of privately
placed restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the end of
the period, restricted securities (excluding 144A issues) are shown at the end
of the Portfolio of Investments for each Fund, if any.
(N) PORTFOLIO SECURITIES LOANED
At December 31, 1995, stocks with an aggregate value listed below were on loan
to brokers. The loans were secured by cash collateral received by the Fund:
<TABLE>
<CAPTION>
DECEMBER 31, 1995 YEAR/PERIOD ENDED
--------------------------------- DECEMBER 31, 1995
AGGREGATE VALUE -----------------
ON LOAN CASH COLLATERAL FEES RECEIVED
--------------- --------------- -----------------
<S> <C> <C> <C>
GT GLOBAL
Variable Strategic Income Fund......................................... $ 562,655 $ 599,961 $ --
Variable Global Government Income Fund................................. 357,643 367,840 --
Variable U.S. Government Income Fund................................... -- -- --
Variable Latin America Fund............................................ 1,304,075 1,447,200 7,044
Variable Growth and Income Fund........................................ 2,512,975 2,681,946 4,092
Variable Telecommunications Fund....................................... 751,013 767,000 14,920
Variable Emerging Markets Fund......................................... -- -- --
Variable Infrastructure Fund........................................... 15,767 17,422 --
Variable Natural Resources Fund........................................ -- -- --
Variable America Fund.................................................. -- -- --
Variable New Pacific Fund.............................................. 573,172 814,000 20,311
Variable Europe Fund................................................... 530,737 560,213 278
Money Market Fund...................................................... -- -- --
Variable International Fund............................................ 66,769 71,769 --
</TABLE>
For international securities, cash collateral is received by the Funds against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Funds against loaned securities in an amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. Fees received from
securities loaned were used to reduce the Funds' custodian fees.
2. RELATED PARTIES
LGT (LGT Asset Management, Inc., formerly known as G.T. Capital Management,
Inc.) is the Funds' investment manager and administrator. For these services,
the Money Market Fund pays LGT an investment management and administration fee
at the annualized rate of 0.50% of that Fund's average daily net assets. The
Variable Strategic Income Fund, Variable Global Government Income Fund, Variable
U.S. Government Income Fund and Variable America Fund each pays LGT an
investment management and administration fee at the annualized rate of 0.75% of
the Fund's average daily net assets. The Variable Growth & Income Fund, Variable
Latin America Fund, Variable Telecommunications Fund, Variable New Pacific Fund,
Variable Emerging Markets Fund, Variable International Fund, Variable Europe
Fund, Variable Infrastructure Fund, and Variable Natural Resources Fund each
pays LGT 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.
LGT has undertaken to limit the total operating expenses (exclusive of brokerage
commissions, interest, taxes and extraordinary items) of each of the Variable
New Pacific Fund, the Variable Europe Fund, the Variable Latin America Fund, the
Variable Telecommunications Fund, Variable Emerging Markets Fund, Variable
International Fund, Variable Infrastructure Fund, Variable Natural Resources
Fund, and the Variable Growth & Income Fund to 1.25% of their respective average
daily net assets. In addition, LGT has undertaken to limit the total operating
---------
F-65
<PAGE> 110
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
expenses (exclusive of brokerage commissions, interest, taxes and extraordinary
items) of each of the Variable Strategic Income Fund, the Variable Global
Government Income Fund, the Variable U.S. Government Income Fund, and the
Variable America Fund to 1.00% of their respective average daily net assets.
Likewise, LGT 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 average daily net assets. From time to time, LGT in
its sole discretion may waive its fees and/or voluntarily assume certain Fund
expenses.
All general expenses of the Companies and joint expenses of the Funds are
allocated among the Funds on a basis deemed fair and equitable.
GT Global, Inc. ("GT Global", formerly known as G.T. Global Financial Services,
Inc.), an affiliate of LGT, is the Funds' distributor. GT Global Investor
Services, Inc. ("GT Services"), an affiliate of LGT and GT Global, is the Funds'
transfer agent.
GT Global is the principal underwriter of the Variable Annuity Contracts.
Underwriting commissions retained by GT Global are as follows:
<TABLE>
<CAPTION>
YEAR/PERIOD ENDED
DECEMBER 31, 1995
-----------------
<S> <C>
GT GLOBAL
Variable Strategic Income Fund............................................................................... $21,536
Variable Global Government Income Fund....................................................................... 14,502
Variable U.S. Government Income Fund......................................................................... 8,999
Variable Latin America Fund.................................................................................. 33,816
Variable Growth & Income Fund................................................................................ 16,929
Variable Telecommunications Fund............................................................................. 61,145
Variable Emerging Markets Fund............................................................................... 33,867
Variable Infrastructure Fund................................................................................. 4,309
Variable Natural Resources Fund.............................................................................. 1,945
Variable America Fund........................................................................................ 58,480
Variable New Pacific Fund.................................................................................... 22,629
Variable Europe Fund......................................................................................... 13,066
Money Market Fund............................................................................................ 91,141
Variable International Fund.................................................................................. 3,374
</TABLE>
Effective July 1, 1995, LGT has assumed the role of pricing and accounting agent
for the Funds. The monthly fee for these services to LGT is a percentage, not to
exceed 0.03% annually, of each of the Funds' average daily net assets. The
annual fee rate is derived by applying 0.03% to the first $5 billion of assets
of all registered mutual funds advised by LGT ("GT Funds") and 0.02% to the
assets in excess of $5 billion and dividing the result by the aggregate assets
of the GT Funds. For the period ended December 31, 1995, fund accounting fees
paid to LGT are as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1995
-----------------
<S> <C>
GT GLOBAL
Variable Strategic Income Fund............................................................................... $2,523
Variable Global Government Income Fund....................................................................... 1,197
Variable U.S. Government Income Fund......................................................................... 567
Variable Latin America Fund.................................................................................. 2,080
Variable Growth & Income Fund................................................................................ 3,066
Variable Telecommunications Fund............................................................................. 5,248
Variable Emerging Markets Fund............................................................................... 884
Variable Infrastructure Fund................................................................................. 124
Variable Natural Resources Fund.............................................................................. 109
Variable America Fund........................................................................................ 4,066
Variable New Pacific Fund.................................................................................... 2,215
Variable Europe Fund......................................................................................... 1,673
Money Market Fund............................................................................................ 1,633
Variable International Fund.................................................................................. 386
</TABLE>
The Companies pay each of their Trustees who is not an employee, officer or
director of LGT, GT Global or GT Services $5,000 per year.
---------
F-66
<PAGE> 111
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund, for the year/period ended December 31,
1995:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
GT GLOBAL
Variable Strategic Income Fund.................................................................. $11,501,057 $30,863,502
Variable Global Government Income Fund.......................................................... 9,478,278 30,781,156
Variable U.S. Government Income Fund............................................................ 6,230,989 217,250
Variable Latin America Fund..................................................................... -- 24,734,706
Variable Growth & Income Fund................................................................... 3,087,404 19,986,655
Variable Telecommunications Fund................................................................ -- 29,912,113
Variable Emerging Markets Fund.................................................................. -- 16,580,240
Variable Infrastructure Fund.................................................................... -- 1,464,730
Variable Natural Resources Fund................................................................. -- 4,468,111
Variable America Fund........................................................................... -- 31,633,117
Variable New Pacific Fund....................................................................... -- 15,203,522
Variable Europe Fund............................................................................ -- 17,456,628
Money Market Fund............................................................................... -- --
Variable International Fund..................................................................... -- 4,596,400
</TABLE>
<TABLE>
<CAPTION>
SALES
------------------------------
U.S. GOVERNMENT OTHER ISSUES
--------------- ------------
<S> <C> <C>
GT GLOBAL
Variable Strategic Income Fund.................................................................. $11,465,215 $30,347,033
Variable Global Government Income Fund.......................................................... 8,531,882 30,747,779
Variable U.S. Government Income Fund............................................................ 5,317,980 --
Variable Latin America Fund..................................................................... -- 26,769,130
Variable Growth & Income Fund................................................................... 570,538 18,078,696
Variable Telecommunications Fund................................................................ -- 27,856,893
Variable Emerging Markets Fund.................................................................. -- 13,876,496
Variable Infrastructure Fund.................................................................... -- 231,362
Variable Natural Resources Fund................................................................. -- 3,408,441
Variable America Fund........................................................................... -- 16,747,582
Variable New Pacific Fund....................................................................... -- 11,878,821
Variable Europe Fund............................................................................ -- 18,113,420
Money Market Fund............................................................................... -- --
Variable International Fund..................................................................... -- 3,105,340
</TABLE>
The Funds' written options activity for the year/period ended December 31, 1995,
was as follows:
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
UNDERLYING
PRINCIPAL AMOUNT PREMIUMS
---------------- --------
<S> <C> <C>
Options outstanding at December 31, 1994........................................................... $ -- $ --
Options written during the year ended December 31, 1995............................................ 1,000,000 8,750
Options cancelled in closing purchase transactions................................................. -- --
Options expired prior to exercise.................................................................. (1,000,000) (8,750 )
Options exercised.................................................................................. -- --
----------- -------
Options outstanding at December 31, 1995........................................................... $ -- $ --
=========== =======
</TABLE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
COVERED CALL OPTIONS WRITTEN
<TABLE>
<CAPTION>
UNDERLYING
NOMINAL AMOUNT PREMIUMS
-------------- --------
<S> <C> <C>
Options outstanding at December 31, 1994............................................................. $ -- $ --
Options written during the year ended December 31, 1995.............................................. 980,000 4,508
Options cancelled in closing purchase transactions (Realized loss of $11,564)........................ (980,000) (4,508 )
Options expired prior to exercise.................................................................... -- --
Options exercised.................................................................................... -- --
--------- -------
Options outstanding at December 31, 1995............................................................. $ -- $ --
========= =======
</TABLE>
---------
F-67
<PAGE> 112
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
4. CAPITAL SHARES
At December 31, 1995, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
CAPITAL SHARE TRANSACTIONS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
---------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
------------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
Shares sold......................................................... 1,985,281 $ 22,200,799 1,978,885 $ 24,363,028
Shares issued in connection with reinvestment of distributions...... 179,542 1,991,044 217,861 2,504,885
---------- ------------ ---------- ------------
2,164,823 24,191,843 2,196,746 26,867,913
Shares repurchased.................................................. (2,185,897) (24,283,139) (1,279,651) (14,932,250)
---------- ------------ ---------- ------------
Net increase (decrease)............................................. (21,074) $ (91,296) 917,095 $ 11,935,663
========== ============ ========== ============
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
Shares sold......................................................... 1,119,737 $ 11,927,543 929,187 $ 10,658,737
Shares issued in connection with reinvestment of distributions...... 64,913 722,395 60,221 673,921
---------- ------------ ---------- ------------
1,184,650 12,649,938 989,408 11,332,658
Shares repurchased.................................................. (1,054,689) (11,200,397) (571,500) (6,371,492)
---------- ------------ ---------- ------------
Net increase........................................................ 129,961 $ 1,449,541 417,908 $ 4,961,166
========== ============ ========== ============
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
Shares sold......................................................... 1,824,240 $ 20,431,040 423,487 $ 4,690,715
Shares issued in connection with reinvestment of distributions...... 18,588 234,899 9,399 104,492
---------- ------------ ---------- ------------
1,842,828 20,665,939 432,886 4,795,207
Shares repurchased.................................................. (1,556,416) (17,459,191) (288,661) (3,169,722)
---------- ------------ ---------- ------------
Net increase........................................................ 286,412 $ 3,206,748 144,225 $ 1,625,485
========== ============ ========== ============
GT GLOBAL VARIABLE LATIN AMERICA FUND
Shares sold......................................................... 2,569,344 $ 35,542,045 1,888,080 $ 37,506,975
Shares issued in connection with reinvestment of distributions...... 236,651 2,991,268 5,690 91,834
---------- ------------ ---------- ------------
2,805,995 38,533,313 1,893,770 37,598,809
Shares repurchased.................................................. (2,602,904) (36,198,875) (970,532) (19,435,079)
---------- ------------ ---------- ------------
Net increase........................................................ 203,091 $ 2,334,438 923,238 $ 18,163,730
========== ============ ========== ============
GT GLOBAL VARIABLE GROWTH & INCOME FUND
Shares sold......................................................... 776,808 $ 10,555,910 1,577,747 $ 21,179,611
Shares issued in connection with reinvestment of distributions...... 59,956 818,466 49,422 644,305
---------- ------------ ---------- ------------
836,764 11,374,376 1,627,169 21,823,916
Shares repurchased.................................................. (708,880) (9,669,648) (505,030) (6,701,077)
---------- ------------ ---------- ------------
Net increase........................................................ 127,884 $ 1,704,728 1,122,139 $ 15,122,839
========== ============ ========== ============
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
Shares sold......................................................... 1,453,558 $ 23,188,408 2,738,401 $ 36,062,278
Shares issued in connection with reinvestment of distributions...... 68,050 1,045,935 2,609 31,627
---------- ------------ ---------- ------------
1,521,608 24,234,343 2,741,010 36,093,905
Shares repurchased.................................................. (1,087,480) (17,197,275) (769,197) (10,175,735)
---------- ------------ ---------- ------------
Net increase........................................................ 434,128 $ 7,037,068 1,971,813 $ 25,918,170
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
JULY 5, 1994
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1994
--------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
Shares sold.......................................................... 1,173,549 $ 12,723,265 880,133 $ 11,376,969
Shares issued in connection with reinvestment of distributions....... 8,331 90,089 5,988 75,214
----------- ------------ ----------- ------------
1,181,880 12,813,354 886,121 11,452,183
Shares repurchased................................................... (967,577) (10,519,830) (274,767) (3,583,799)
----------- ------------ ----------- ------------
Net increase......................................................... 214,303 $ 2,293,524 611,354 $ 7,868,384
=========== ============ =========== ============
</TABLE>
---------
F-68
<PAGE> 113
---------------------------------------------------
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
JANUARY 31, 1995
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1995
--------------------------
SHARES AMOUNT
----------- ------------
<S> <C> <C>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
Shares sold.......................................................... 174,610 $ 2,285,935
Shares repurchased................................................... (62,813) (826,452)
----------- -----------
Net increase......................................................... 111,797 $ 1,459,483
=========== ===========
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
Shares sold.......................................................... 228,814 $ 3,086,623
Shares issued in connection with reinvestment of distribution........ 4,976 67,477
----------- -----------
233,790 3,154,100
Shares repurchased................................................... (143,765) (1,940,086)
----------- -----------
Net increase......................................................... 90,025 $ 1,214,014
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
GT GLOBAL VARIABLE AMERICA FUND
Shares sold........................................................ 3,800,437 $ 72,967,274 1,410,056 $ 21,334,929
Shares issued in connection with reinvestment of distributions..... 31,220 606,288 9,566 136,602
----------- ------------ ----------- ------------
3,831,657 73,573,562 1,419,622 21,471,531
Shares repurchased................................................. (2,862,326) (55,970,932) (578,009) (8,750,561)
----------- ------------ ----------- ------------
Net increase....................................................... 969,331 $ 17,602,630 841,613 $ 12,720,970
=========== ============ =========== ============
GT GLOBAL VARIABLE NEW PACIFIC FUND
Shares sold........................................................ 7,058,585 $ 95,900,026 2,682,038 $ 40,297,352
Shares issued in connection with reinvestment of distributions..... 6,484 90,012 3,541 51,590
----------- ------------ ----------- ------------
7,065,069 95,990,038 2,685,579 40,348,942
Shares repurchased................................................. (6,795,204) (92,832,446) (1,795,774) (26,803,641)
----------- ------------ ----------- ------------
Net increase....................................................... 269,865 $ 3,157,592 889,805 $ 13,545,301
=========== ============ =========== ============
GT GLOBAL VARIABLE EUROPE FUND
Shares sold........................................................ 2,497,482 $ 39,741,019 1,354,348 $ 21,064,089
Shares issued in connection with reinvestment of distributions..... 9,965 154,451 927 14,252
----------- ------------ ----------- ------------
2,507,447 39,895,470 1,355,275 21,078,341
Shares repurchased................................................. (2,547,574) (40,557,920) (721,304) (11,126,870)
----------- ------------ ----------- ------------
Net increase (decrease)............................................ (40,127) $ (662,450) 633,971 $ 9,951,471
=========== ============ =========== ============
GT GLOBAL MONEY MARKET FUND
Shares sold........................................................ 178,846,705 $178,851,599 75,553,997 $ 75,553,997
Shares issued in connection with reinvestment of distributions..... 823,767 818,843 321,887 321,887
----------- ------------ ----------- ------------
179,670,472 179,670,442 75,875,884 75,875,884
Shares repurchased................................................. (184,253,572) (184,253,572) (60,177,597) (60,177,597)
----------- ------------ ----------- ------------
Net increase (decrease)............................................ (4,583,100) $ (4,583,130) 15,698,287 $ 15,698,287
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
JULY 5, 1994
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1994
--------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
GT GLOBAL VARIABLE INTERNATIONAL FUND
Shares sold.......................................................... 1,403,934 $ 14,984,693 371,362 $ 4,416,954
Shares issued in connection with reinvestment of distributions....... 3,283 35,810 885 9,954
----------- ------------ ----------- ------------
1,407,217 15,020,503 372,247 4,426,908
Shares repurchased................................................... (1,272,826) (13,587,017) (174,075) (2,061,498)
----------- ------------ ----------- ------------
Net increase......................................................... 134,391 $ 1,433,486 198,172 $ 2,365,410
=========== ============ =========== ===========
</TABLE>
5. EXPENSE REDUCTIONS
GT Capital has directed certain portfolio trades to brokers who paid a portion
of the Funds' expenses. For the year/period ended December 31, 1995, the Funds'
expenses were reduced by $32,284 under these arrangements.
FEDERAL TAX INFORMATION (UNAUDITED):
Pursuant to Section 852 of the Internal Revenue Code, the following Funds made
capital gain designations for the fiscal year ended December 31, 1995:
<TABLE>
<S> <C>
GT GLOBAL FUNDS:
---------------
Variable Latin America $212,380
Variable Telecommunications 27,361
Variable America 16,400
Variable International 2,394
</TABLE>
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F-69
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UNAUTHORIZED USE WITHOUT EXPRESS WRITTEN PERMISSION FROM G.T. GLOBAL IS
PROHIBITED.
<PAGE> 116
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