<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Reports on the
Funds................ 1
Funds'
Financial
Statements........... F1
Portfolio holdings and views of
the Funds' managers described in
this annual report are as of the
date of the report, unless
otherwise noted, and are subject
to change.
</TABLE>
<PAGE>
GT GLOBAL
VARIABLE AMERICA FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 6.60% -0.60%
5 Years 15.39% 15.17%
Life of Fund 15.34% 15.25%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 8.09%
5 Years 17.02%
Life of Fund 16.96%
</TABLE>
PERFORMANCE
The Fund's performance fluctuated considerably during a very volatile market.
Like the entire mid-cap stock market, the Fund was hard hit during a deep
sell-off in August. However, the Fund rallied significantly between October 8,
when many markets hit their low for 1998, and the close of the fiscal year. The
Fund's total return for the fiscal year ending December 31, 1998, was 8.09%.
Comparatively, the Russell Midcap Index had a return of 10.10% for the same
period.
MARKET REVIEW
As the fiscal year opened, concern about Asia's financial difficulties was
widespread. The midsize company stocks in which the Fund invests were especially
out of favor as uneasy investors sought the relative safety of blue chip stocks.
Markets rallied in the spring as investors seemed to shrug off Asian worries.
For the first half of the fiscal year, the Fund produced solid returns. The
latter half of the fiscal year was even more volatile. A much-noted summer rally
took many stock indexes to all-time highs by mid-July, but mid-cap stocks did
not really participate.
In August, another wave of concern washed over markets. Its causes were
multiple: the seemingly intractable Asian downturn, a default on Russian
government debt, the collapse of some highly leveraged hedge funds, and
recognition that domestic corporate profit growth was slipping after several
years of robust growth. The market downturn that ensued eventually involved even
the very large, very liquid stocks that were chiefly responsible for the U.S.
market's earlier rise.
Late in the fiscal year amid evidence of a possible credit crunch both here and
abroad, the Federal Reserve Board (the Fed) shifted its focus from inflation
fighting to providing liquidity and supporting markets. In three steps, it
lowered the short-term target federal funds rate from 5.50% to 4.75%, and equity
markets rallied in response. In the short run at least, the Fed appeared to have
assured investors that it would intervene to forestall a recession.
Mid-cap stocks finished the year lower than their large-cap counterparts. The
tumble in mid-cap markets this fiscal year offered a great buying opportunity
for the Fund, as many growth-oriented stocks were available at a significant
discount.
OUTLOOK
We are optimistic that the United States will avoid a recession in 1999. The
economy is likely to experience annual gross domestic product growth in the 1.5%
to 2.0% range, so low inflation and low interest rates should continue. The
challenge will be earnings. With global markets in or near recession and the
U.S. economy expanding more slowly, companies will find it harder to produce
earnings growth. There is clearly added risk until the Asian and Latin American
situations stabilize.
We believe there are several reasons for optimism about mid-cap stocks.
Valuations of the stocks in the mid-cap sector are significantly lower than in
the large-cap sector. These mid-cap stocks also offer some refuge because they
tend to have less international exposure. In addition, smaller-company stocks
historically do better than large-company stocks when the Fed eases monetary
policy, and we were encouraged to note that this was true after the Fed began
lowering interest rates in 1998. Although this is much too short a period in
which to identify a market trend, from the Fed's first interest rate cut
September 29 through the December 31 close of the fiscal year, mid-caps did
outperform large-caps. Of course, a favorable environment for smaller-company
stocks bodes well for the Fund.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global America Fund Russell Midcap Index
<S> <C> <C>
2/10/93 $10,000 $10,000
12/93 $11,467 $11,513
12/94 $13,632 $11,196
12/95 $17,090 $15,061
12/96 $20,260 $18,209
12/97 $23,276 $22,219
12/98 $25,159 $25,451
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the Russell Midcap Index for the same period. 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. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The Russell Midcap Index is composed of the capitalization-weighted average
price of 800 selected common stocks of medium-size domestic companies. Its
performance includes the effect of reinvested dividends and is measured in U.S.
dollars.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
1
<PAGE>
GT GLOBAL
VARIABLE EMERGING MARKETS FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: July 5, 1994
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -37.77% -42.51%
Life of Fund -10.09% -10.49%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -36.90%
Life of Fund -8.83%
</TABLE>
PERFORMANCE
The Fund faced a very challenging environment during 1998. Asia continued to
deteriorate; short periods of optimism were overshadowed by poor earnings
reports and by concerns about the slow pace of bank reform in Japan. Then a new
shock to the world's markets came in August, when Russia attempted to stabilize
its banking system by floating the ruble and suspending repayment of much of its
foreign debt.
Concerns about the Asian and Russian financial crises caused investors to turn
away from emerging markets in droves. Latin America, in particular, suffered
from investor flight and the associated increase in interest rates.
Results for the fiscal year ended December 31, 1998 were quite disappointing.
Total return was -36.90%, compared to the MSCI Emerging Markets Free Index's
return of -27.52% and the -21.84% return of the IFC Investable Composite.
MARKET REVIEW
During 1998, we attempted to concentrate the portfolio in the markets and stocks
where we were most confident about the growth and valuation outlook. We
deliberately reduced the breadth of holdings, drastically reducing our exposure
to Russia and eliminating exposure to such highly unstable markets as Pakistan,
Sri Lanka, the Philippines, Thailand, and Malaysia.
We favored Latin America, based on our belief in the region's long-term
potential. Unfortunately, Latin America remained in the doldrums for the last
half of the year, despite a substantial aid package from the International
Monetary Fund. In contrast, many Asian markets made a surprise (though
short-lived) comeback during the fall. Our overweighting in Latin American and
underweighting in Asia contributed to the Fund's relatively disappointing
numbers.
In Brazil, we focused on a number of privatization candidates. Many of the
larger utilities in Brazil appear undervalued given the strong medium-term
growth prospects for the economy. We also emphasized oil and natural resource
stocks because they benefit from U.S. dollar revenues and from privatization
efforts, which should encourage greater operating efficiency.
Our second largest country allocation was to Mexico, which we believe will show
relatively stable economic growth into 1999. We focused on blue chips as well as
stocks that stand to benefit from the large devaluation of the peso.
One of the advantages of a global emerging markets portfolio is its diversity.
We were able to find opportunities in some of the world's smaller markets. For
instance, Egypt has demonstrated relatively strong growth, falling interest
rates, a decline in inflation, and attractive valuations. We also raised our
weighting in Greece, which has made major strides in economic and fiscal reform
in hopes of gaining admittance to Europe's Economic and Monetary Union (EMU).
OUTLOOK
Although we expect growth to be disappointing over the next year, we believe
that emerging markets continue to offer a long-term investment option for the
most aggressive investors. The fundamentals driving growth in emerging markets
are still there: consumption, industrialization, a maturing financial services
industry, and continuing investment in infrastructure.
Emerging markets potentially can offer earnings growth rates that exceed those
in developed countries, often at considerably discounted valuations. However,
there are also many more risks and uncertainties associated with this type of
investment. We urge you to read your Fund's prospectus for more information
about its objectives, strategies, and risks.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global
Variable Emerging IFC Investable MSCI Emerging
Markets Fund Composite Index Markets Free Index
<S> <C> <C> <C>
6/30/94 $10,000 $10,000 $10,000
12/94 $10,012 $10,308 $10,273
6/95 $ 9,398 $ 9,561 $ 9,936
12/95 $ 9,257 $ 9,440 $ 9,739
6/96 $11,614 $10,590 $10,777
12/96 $12,133 $10,324 $10,326
6/97 $13,899 $11,987 $12,159
12/97 $10,464 $ 8,803 $ 9,129
6/98 $ 8,596 $ 7,421 $ 7,408
12/98 $ 6,603 $ 6,867 $ 6,819
</TABLE>
The chart above shows the performance of the Fund since inception (7/5/94)
compared to the various indexes for the same period. 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. Please note that results for the
IFCI Composite Index are for the period 6/30/94 to 12/31/98. Past performance is
no guarantee of comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI Emerging Markets Free Index is a group of unmanaged securities from
emerging markets tracked by Morgan Stanley Capital International. A "free" index
includes only securities available to non-domestic investors. The IFC Investable
Composite index is a market value-weighted average of the performance of the
securities listed on the exchange of 29 countries. It includes the effect of
reinvested dividends and is measured in U.S. dollars.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
2
<PAGE>
GT GLOBAL
VARIABLE EUROPE FUND
TOTAL RETURN THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 14.37% 8.37%
5 Years 12.07% 11.82%
Life of Fund 14.60% 14.51%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 15.98%
5 Years 13.65%
Life of Fund 16.21%
</TABLE>
PERFORMANCE
While 1998 was indeed a roller-coaster year for most world markets, Europe was
still one of the best places to be invested. For the fiscal year ended
December 31, 1998, the Fund's total return was 15.98%. In comparison, the Morgan
Stanley Capital International (MSCI) Europe Index returned 28.53%.
Despite the lag in the Fund's return relative to the index, the Fund made
tremendous strides toward the close of the reporting period. From the market low
on October 8 to the end of the fiscal year, the Fund returned 31.83%. In
comparison, the MSCI Europe Index returned 25.77% over the same period.
MARKET REVIEW
Europe was the relative calm spot during a stormy year throughout much of the
world. Weaker demand from Asia continued to affect corporate profits around the
globe. In August, Russia devalued the ruble and suspended repayment of much of
its foreign debt, creating another round of losses, particularly in the
financial industry. But while the waters did get a little choppy in Europe,
overall the region was spared catastrophe.
European companies continued to show superior earnings growth compared to their
U.S. counterparts. At the same time, their shares are available at cheaper
prices, making them an excellent value for investors. Even though Europe was
affected by the summer's global downturn, the major long-term themes driving
growth in the region have sheltered it somewhat from the extreme losses felt in
other parts of the world. A third-quarter sell-off by nervous investors put a
damper on returns, but the global markets almost completely recovered during the
fourth quarter.
In early December, markets soared when the countries preparing to enter Europe's
Economic and Monetary Union (EMU) participated in a coordinated interest-rate
cut. Ten of the 11 EMU countries cut rates to 3%. The Bank of Italy cut its rate
to 3.5%. The United Kingdom, which is not participating in the EMU launch, also
cut rates significantly. The interest-rate cuts were executed in hopes of
aligning monetary policy among nations in the EMU.
OUTLOOK
With the introduction of the euro, early 1999 may exhibit a certain degree of
volatility. For instance, markets could react to possible tension between
politicians wanting further interest-rate cuts and the European Central Bank
wanting to be cautious. There is also some question about how strong the euro
should be relative to the U.S. dollar, and there may be some volatility in
currency markets as a result. However, we expect most of the wrinkles to be
ironed out within the first quarter of 1999.
Another important influence on the markets early in 1999 will be the
announcements of corporate earnings for the fourth quarter of 1998 and outlooks
for 1999. These should indicate whether global financial difficulties are having
a protracted influence, or whether corporate earnings are more resilient than
expected. We expect a significant number of earnings disappointments, especially
from large multinational companies, but it is possible that the market will be
more positively affected by further interest rate cuts than by earnings reports.
What makes Europe so exciting right now is the change in attitude toward
entrepreneurship and investing. With more people bringing their ideas to the
marketplace and more citizens becoming shareholders, Europe may be on its way to
becoming one of the economic powerhouses of the 21st century.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable MSCI
Europe Fund Europe Index
<S> <C> <C>
2/10/93 $10,000 $10,000
6/93 $10,842 $10,845
12/93 $12,775 $12,953
6/94 $12,399 $12,611
12/94 $12,699 $13,297
6/95 $13,033 $15,040
12/95 $13,926 $16,240
6/96 $16,916 $17,319
12/96 $18,139 $19,743
6/97 $20,144 $22,596
12/97 $20,886 $24,520
6/98 $26,706 $31,060
12/98 $24,223 $31,037
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Europe Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but no charges and
expenses of the separate account. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI Europe Index is a group of unmanaged European securities tracked by
Morgan Stanley Capital International.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
3
<PAGE>
GT GLOBAL
VARIABLE GLOBAL GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception Date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 11.14% 5.14%
5 Years 4.26% 3.92%
Life of Fund 4.96% 4.83%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 12.69%
5 Years 5.72%
Life of Fund 6.43%
</TABLE>
PERFORMANCE
Despite tumultuous events in the global marketplace, the Fund stayed in line
with its primary objective of preserving capital while providing a steady flow
of income. The Fund's total return for the year ended December 31, 1998 was
12.69%. Comparatively, the J.P. Morgan Global Government Bond index, the Fund's
benchmark, had a return of 15.31% over the 12-month period.
MARKET REVIEW
Problems in Asia at the start of the reporting period left us cautious as we
approached the new year. As a result, the majority of our portfolio was
allocated toward high-grade government debt offered by more industrialized
countries. While the Fund can allocate a limited portion of its assets to
lower-rated bonds of foreign governments and corporations, instability in Asia
and other emerging markets kept our exposure to this area limited. Paring back
our exposure to emerging markets proved to be a prudent strategy as Asia's
economic problems re-emerged again in May after a hiatus from market activity in
the first quarter of 1998.
By August, the effects of the Asian crisis had spread to Russia, Eastern Europe,
and Latin America. Investor aspirations for positive returns were replaced with
the goal of preserving capital. The result was a global sell-off as investors
retreated from all forms of investment risk and invested in relatively safer
government bonds of industrialized countries. As the Fund was already heavily
weighted in lower-risk U.S. and European government securities, this surge in
demand proved very beneficial for the Fund. At the same time, the Fund had
limited exposure to the lesser-developed countries hurt by this flight from
risk, and performance was left largely unhindered by the negative events in the
global marketplace.
OUTLOOK
Equity and non-industrialized fixed-income markets around the world suffered
serious setbacks in the months leading up to the close of the reporting period.
However, in the final weeks of October, a series of rate cuts in the United
States and Europe reliquified the markets, instilling a newfound confidence in
the global marketplace. While the rate cuts are providing temporary relief, we
believe the economic crises stemming from the Asian markets require more
complicated solutions.
We will continue to limit our exposure to the emerging market sectors. While the
Fund may invest in those regions, their recent instability make most investment
opportunities there unsuitable for the Fund's investment objective.
U.S. government securities will most likely continue to be a staple of the
Fund's portfolio. However, positive growth and inflationary trends are making
Europe an increasingly attractive realm for asset allocation. With the formation
of the European Economic Monetary Union and the introduction of the euro,
management will have to adjust its investment approach to Europe. Now that
interest rate trends will be correlated among member countries, the investment
landscape has changed substantially. Instead of judging the direction of
interest rates in each individual country, management will have to anticipate
interest rates for the region as a whole while at the same time assessing an
individual country's ability to service its debt.
Ultimately, we will stay true to our discipline and endeavor to provide
stability and a steady stream of income for our shareholders.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Government JP Morgan Global
Income Fund Government Bond Index
<S> <C> <C>
2/10/93 $10,000 $10,000
12/93 $10,925 $11,091
12/94 $9,975 $11,233
12/95 $11,556 $13,403
12/96 $12,269 $13,992
12/97 $12,805 $14,188
12/98 $14,431 $16,361
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the J.P. Morgan Global Government Bond Index for the same time period. 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. Past
performance is no guarantee of future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The J.P. Morgan Global Government Bond Index is a market-value-weighted average
of government bonds from 13 major developed bond markets. It includes the effect
of reinvested coupons and is measured in U.S. dollars.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
4
<PAGE>
GT GLOBAL
VARIABLE GROWTH & INCOME FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 17.94% 11.94%
5 Years 11.08% 10.82%
Life of Fund 12.18% 12.08%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 19.60%
Life of Fund 13.76%
</TABLE>
PERFORMANCE
The Fund turned in an outstanding total return of 19.60% over the fiscal year
ending December 31, 1998. Total return over the same period was 24.34% for the
Morgan Stanley Capital International (MSCI) World Index and 15.31% for the
J.P. Morgan Global Government Bond Index.
In the first part of the year, the Fund invested heavily in blue-chip stocks and
enjoyed the bull market run-up in the United States and Europe. When markets
turned turbulent over the summer, we increased the Fund's holdings in U.S.
Treasury, German and U.K. bonds. As of December 31, 1998, 26.92% of the
portfolio consisted of government bonds.
We also increased our exposure in consumer franchises such as Cadbury Schweppes
PLC, a British confection and beverage company whose products include the
Cadbury chocolates brand. In addition, the Fund increased its investment in
long-time holding Bristol-Myers Squibb Co., a U.S. health and personal care
company with household-name brands such as Clairol and Excedrin.
During the summer, we reduced the Fund's financial holdings, especially in
European banks with exposure in emerging markets.
MARKET REVIEW
The bull market in the United States and Europe climbed in the first part of
the year, then came to an abrupt halt in the summer. Major indexes that
reached all-time highs in July plummeted in August. A number of events
converged to create the sharp downturn. Currency devaluations occurred in
Thailand, Malaysia, Indonesia, and Korea. A lingering recession gripped
Japan. Crippled by overwhelming debt, Russia suspended repayment of much of
its foreign debt. As Russia created a floating exchange rate for the ruble,
its currency valuation plummeted. Fears of a global credit crunch spread to
Latin America, as investors worried that Brazil could not sustain its
exchange rate in light of the country's increasing debt.
The one bright spot throughout the turmoil was the government bond market. In
the unsettled stock-market environment, investors worldwide flocked to U.S.
Treasury issues because of their relative safety and liquidity. Treasury
securities rose in price, sending their yields to historic lows.
By the end of the year, stock markets stabilized then rallied. In a move felt
around the world, the Federal Reserve Board (the Fed) reassured markets by
lowering the short-term target federal funds rate three times.
In late October, the Group of Seven countries - the United States, Japan,
Germany, France, Great Britain, Italy, and Canada - agreed with a plan to allow
the International Monetary Fund to provide $90 billion in loans to financially
troubled countries such as Brazil.
OUTLOOK
We're cautious about the prospects for worldwide earnings growth over the next
two years. The problems in Asia, Russia and Latin America will not disappear
overnight. We expect slower growth, continuing low inflation and weak commodity
prices. Corporate earnings growth will be harder to sustain, and we expect them
to be modest in 1999.
The real problem for international markets is the unsettling issue of currency
fluctuation.
Although we expect the markets to remain volatile, the Fund's investment
discipline helps it weather market uncertainties. We emphasize high-quality
blue-chip stocks with above-average dividend yields and AA or better-rated
government bonds. The Fund also is globally well diversified. We believe our
investment strategy positions the Fund to grow in value while providing a stable
income stream.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Variable Growth & MSCI JP Morgan Global
Income Fund World Index Government Bond Index
<S> <C> <C> <C>
2/10/93 $10,000 $10,000 $10,000
6/93 $10,437 $11,506 $10,630
12/93 $11,775 $12,270 $11,091
6/94 $11,278 $12,745 $11,052
12/94 $11,439 $12,954 $11,233
6/95 $12,059 $12,175 $12,981
12/95 $13,211 $15,716 $13,403
6/96 $13,694 $16,868 $13,247
12/96 $15,368 $17,915 $13,992
6/97 $16,674 $20,715 $13,840
12/97 $17,825 $20,823 $14,188
6/98 $20,570 $24,332 $14,652
12/98 $21,361 $24,939 $16,361
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
various indexes for the same period. 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. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI World Index is a group of unmanaged global securities tracked by Morgan
Stanley Capital International.
The J.P. Morgan Global Government Bond Index is a market value-weighted average
of government bonds from 13 major developed bond markets. It includes the effect
of reinvested coupons and is measured in U.S. dollars.
Indexes are unmanaged, not available for direct investment and do not include
the effects of sales charges and professional management fees.
5
<PAGE>
GT GLOBAL
VARIABLE INFRASTRUCTURE FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: January 31, 1995
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 4.89% -1.10%
Life of Fund 10.14% 9.56%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 6.58%
Life of Fund 11.69%
</TABLE>
PERFORMANCE
International investors endured a difficult year, including a major
correction in world equity markets during August. For the fiscal year ending
December 31, 1998, the Fund reported a total annual return of 6.34%. The MSCI
World Index had a total return of 24.34% over the same period.
During the first half of 1998, the Fund reported strong performance because of
its heavy weightings in European and U.S. stocks. Its good performance ended
quickly with the market's decline in July.
The Fund's weakness near the end of the reporting period stems from its exposure
to cyclically sensitive companies such as airlines, machinery makers, industrial
components manufacturers, and construction and engineering firms. Infrastructure
companies were hit hard by investors' fears that the credit crunch in emerging
markets could spread to Europe and the United States, possibly halting growth.
We decreased our exposure in the weakest economies, mostly in emerging markets.
We also lessened our exposure to companies with significant sales to emerging
markets such as airlines, long-haul freight, and commodity-oriented companies.
We re-deployed these assets into utility stocks because of their defensive
characteristics during volatile, uncertain markets. Utilities, energy, and gas
production companies represented a major portion of the portfolio's total assets
at the end of the fiscal year. Top utility holdings included Enron Corp., a U.S.
gas producer and distributor, and U.S. utilities Dominion Resources, Houston
Industries, and AES. Other main holdings include European utilities Endesa S.A.
of Spain and Telecom Italia of Italy. We expect to retain this high
concentration in utility stocks as long as uncertainty prevails throughout most
of the other infrastructure sectors.
MARKET REVIEW
The first half of the reporting period saw strong performance from the U.S. and
European stock markets. But beginning in July, markets fell as fears of a global
credit crunch spread from emerging markets to the developed markets of the
United States and Europe. Other factors adding to the market decline included a
Russian default on government debt, the Asian financial crisis, and the collapse
of some highly leveraged hedge funds. Near the end of the fiscal year, the
Federal Reserve Board (the Fed) addressed concerns about credit by lowering the
short-term target federal funds rate three times. Equity markets rallied in
response.
OUTLOOK
The Fund takes a conservative approach to infrastructure investing throughout
the world. We search for areas where capital spending is strongest. Therefore,
we have been avoiding emerging market equities in favor of Europe and North
America, where we see robust infrastructure spending. The Fund's current asset
mix by geography is North America, 47.15%; Europe, 41.23%; Asia, 3.10%, and
Latin America, .96%.
We expect the Asian crises to continue to cripple many emerging market
economies. We will remain underweight in these markets until we see definitive
signs of a re-acceleration of infrastructure spending. Barring any significant
unforeseen change in the economic outlook for much of Europe and North America,
we expect to retain a high weighting in these regions with a relatively
conservative bias toward utilities and other high-quality, conservative growth
companies.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable MSCI
Infrastructure Fund World Index
<S> <C> <C>
1/31/95 $10,000 $10,000
6/95 $11,025 $11,107
12/95 $11,058 $12,314
6/96 $13,033 $13,217
12/96 $13,809 $14,038
6/97 $14,926 $16,231
12/97 $14,500 $16,316
6/98 $16,018 $19,066
12/98 $15,418 $20,361
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
various indexes for the same period. 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. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI World Index is a group of unmanaged global securities tracked by Morgan
Stanley Capital International.
Indexes are unmanaged, not available for direct investment and do not include
the effects of sales charges and professional management fees.
Investing in a single-sector mutual fund may involve greater risk and potential
reward than investing in a more diversified fund.
6
<PAGE>
GT GLOBAL
VARIABLE INTERNATIONAL FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: July 5, 1994
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -1.87% -7.76%
Life of Fund 0.20% -0.24%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -0.64%
Life of Fund 1.60%
</TABLE>
PERFORMANCE
Falling world markets and record volatility created a challenging environment
for the GT Global Variable International Fund. Pressures from the Asian
financial crisis, plummeting commodity prices, currency devaluations around the
world, and the Russian government's default on a substantial portion of its
foreign debt all converged in mid-year. Nervous investors abandoned riskier
investments and fled to such safe havens as U.S. Treasuries. Investor flight was
most dramatic in emerging markets, but few world markets were spared. As a
result, many of the gains enjoyed from booming European and U.S. markets early
in 1998 were reversed during the summer and early fall.
Unfortunately, the Fund did not escape this turmoil; it took quite a beating
during summer's global sell-off. The Fund's holdings in the United States and
Europe were hit particularly hard during that period. While developed markets
staged a recovery later in the fall, many emerging markets continued to be
extremely volatile. The Fund had a relatively small exposure to emerging
markets, but the poor performance of these stocks had a disproportionate
influence on performance.
As a result of these difficulties, the Fund's total return for the fiscal year
ended December 31, 1998 was -0.64%. In comparison, the EAFE Index had a return
of 20.00% for the same period.
MARKET REVIEW
Our strategy during this period was to focus primarily on stocks with strong,
sustainable earnings growth. We sought companies with good products and healthy
consumer demand, as well as companies that stood to benefit from lower long-term
interest rates.
Our sector allocations remained relatively stable during the last half of 1998.
We continued to favor financials, focusing on asset quality as a key determinant
for selection. European banks were especially attractive, as the banking
industry has been consolidating in anticipation of European Economic and
Monetary Union (EMU). The European telecommunications industry also offered good
opportunities, largely as a result of deregulation. For instance, Telecom Italia
has made some strong competitive moves by expanding its services to consumers.
Industries we avoided include commodity manufacturing companies, capital goods
companies and basic industries because they are generally less successful in a
falling interest-rate environment.
We increased our weighting in continental Europe to take advantage of bargain
prices after summer's declines. However, a few of these selections proved
disappointing; their prices continued to drop, contributing to the Fund's
underperformance.
We reduced our weightings in emerging markets and the Asia-Pacific area. The
move was beneficial in Latin America, but in Asia it meant that we missed out on
some opportunities that came from a surprise rally in the fall.
OUTLOOK
We expect a certain amount of volatility to continue through early 1999. While
fundamentals are still in place for strong growth in Europe and in the United
States, global turmoil could put a dent in corporate profits.
Smaller markets are likely to remain weak. Brazil's devaluation of its currency
in mid-January caused steep drops in Latin American markets; we will remain
cautious in the region until there are clear signs of stabilization. In Asia, we
think the outlook will start to improve in the latter half of 1999, but as of
the close of the reporting period, most Asian economies were still
deteriorating.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable EAFE
International Fund Index
<S> <C> <C>
7/5/94 $10,000 $10,000
12/94 $9,419 $9,921
6/95 $8,913 $10,195
12/95 $9,313 $11,067
6/96 $9,843 $11,584
12/96 $10,106 $11,771
6/97 $10,925 $13,109
12/97 $10,806 $12,013
6/98 $11,949 $13,945
12/98 $10,737 $14,179
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the EAFE Index for the same period. 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. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The Morgan Stanley Capital International Europe, Australasia, and the Far East
(EAFE)-Registered Trademark- Index is a market value-weighted average of the
performance of 1,106 securities listed on 20 major world stock exchanges. It
includes the effect of reinvested dividends and is measured in U.S. dollars.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
7
<PAGE>
GT GLOBAL
VARIABLE LATIN AMERICA FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -42.52% -45.96%
5 Years -8.78% -9.15%
Life of Fund -1.43% -1.60%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -41.71%
5 Years -7.51%
Life of Fund -0.04%
</TABLE>
PERFORMANCE
1998 was a very difficult and volatile year for investors in emerging markets.
The Fund took advantage of a market recovery early in 1998, but the upward trend
was quickly reversed during the summer as a result of the Russian government's
debt problems.
In the wake of the Asian and Russian crises, investors began to re-evaluate the
riskiness of all emerging markets. Negative sentiment led to massive outflows of
capital in Latin America. With the additional stress of falling commodity prices
and uncertain fiscal reform efforts, Latin American markets ended 1998 with some
of the world's worst performance results.
Such difficulties hurt the Fund's return significantly. For the fiscal year
ended December 31, 1998, total return was -41.71%. The MSCI Emerging Free Latin
America Index had a total return of -35.11% and the IFC Investable Latin America
Fund returned -35.54% for the same period.
MARKET REVIEW
Our largest allocation was to Brazil. Thanks to an aid package from the
International Monetary Fund, the risk perception for the region improved
slightly in the third quarter. Rate cuts in developed markets and a strong U.S.
market aided a recovery in Latin American markets in November.
However, the Brazilian Congress surprised investors early in December when it
voted against a key fiscal reform measure. The credibility of the whole reform
program was hurt by the move. In reaction, interest-rate sensitive stocks lost
much of the ground they'd gained just a few weeks earlier. The Fund focused its
investments in utilities and telecommunications companies, which are defensive
in a downturn.
Our second largest country allocation was to Mexico. Compared to other Latin
American markets, Mexico performed much better during the last quarter of 1998,
especially in December when it acted as a safe haven for investors fleeing
Brazil.
Chile's economy is slowing decisively. The outlook for Pacific Rim demand has
improved, although the timetable for recovery is still uncertain. Falling copper
prices remain a concern. On the positive side, electric utilities and banks
provided a few good opportunities for the Fund.
Although Argentina's prospects looked good from a top-down point of view, there
were few attractive choices in the country's very narrow stock market. Oil
stocks, which have been poor performers, make up around 40% of the market.
Banking stocks drove performance in November but gave up much of their gains in
December.
Our investments in Peru, Venezuela and Colombia were extremely limited. Peru's
economy has been slow to recover from the effects of the El Nino weather
pattern, which ravaged the fishing industry. Government reconstruction spending
has also been slow to materialize. Venezuela has been very hard hit by the
global economic downturn due to its dependence on oil prices. Colombian markets
are extremely illiquid and the macroeconomic outlook is unclear.
OUTLOOK
We have not lost hope for the region. However, the near- to mid-term outlook
depends very much on global events and trends. The overall level of world
economic growth, and the impact it has on commodity prices, will be extremely
important.
It's also essential for emerging markets as a whole to begin recovery and win
back investor confidence. For now, all eyes will be on Brazil for some
indication that reform is being taken seriously.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global MSCI EMF
Variable Latin Latin America IFC Investable
America Fund Index Latin America Index
<S> <C> <C> <C>
1/31/93 $10,000 $10,000 $10,000
6/93 $10,017 $10,296 $11,068
12/93 $14,733 $15,520 $16,560
6/94 $13,731 $14,980 $15,059
12/94 $16,080 $15,621 $15,010
6/95 $10,923 $13,654 $12,401
12/95 $10,550 $13,616 $12,481
6/96 $12,205 $16,005 $14,447
12/96 $12,921 $16,639 $14,629
6/97 $15,994 $23,425 $20,464
12/97 $14,798 $21,901 $18,911
6/98 $11,598 $17,565 $15,326
12/98 $9,974 $14,303 $12,191
</TABLE>
The chart above shows the performance of the Fund since inception (2/10/93)
compared to the various indexes for the same period. 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. Please note that results for both
indexes are for the period 1/31/93 to 12/31/98. Past performance is no guarantee
of comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI Emerging Markets Latin America and IFC Investable Latin America indexes
are market value-weighted averages of companies listed in Argentina, Brazil,
Chile, Colombia, Mexico, Peru and Venezuela. Both indexes are measured in U.S.
dollars and include the effect of reinvested dividends. Indexes are unmanaged,
not available for direct investment and do not include sales charges and
professional management fees.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
8
<PAGE>
GT GLOBAL MONEY MARKET FUND
PERFORMANCE
The Fund's total return for the year ended December 31, 1998, was 5.22%. The
Fund's SEC (Securities and Exchange Commission) seven-day yield was 4.28% at the
end of the reporting period. Because the Fund invests only in short-term debt
obligations with remaining maturities of 13 months or less, its performance
generally reflects the level of short-term interest rates.
MARKET REVIEW
Throughout the first half of the year, markets were influenced by anticipation
that the Federal Reserve Board (the Fed) would raise interest rates in light of
the continued feverish growth of the U.S. economy. In late July testimony before
Congress, Fed Chairman Alan Greenspan intimated that the potential threat of
inflation could lead the Fed to raise interest rates.
Market sentiment shifted over the summer amid myriad financial troubles in
Japan, Asia and Latin America; Russia's effective default on its government
debt; and the widely noted collapse of several hedge funds. In the fall, when
the threat of a global credit crunch loomed, the Fed finally lowered interest
rates to pump liquidity and confidence into the markets and demonstrated that it
would intervene to forestall a recession in the U.S.
In the unsettled market environment, investors flocked to Treasury issues
because of their relative safety and liquidity. As the prices of Treasuries
rose, their yields fell to historic lows. For example, the yield of the
benchmark 30-year Treasury bond fell from 5.92% at the beginning of 1998 to
4.71% on October 5, its lowest level since the issue came into existence in
1977. As a result, the spread between Treasury issues and high-yield bonds
reached its widest point ever.
In an attempt to calm the nerves of investors who were shifting their money from
equity markets to any security considered liquid-a worldwide flight to
quality-the Fed cut the federal funds rate by 0.25% on September 29. Few people
were assuaged by the action. Two weeks later, in an unusual inter-meeting move,
the Fed lowered the federal funds rate and the discount rate by 0.25%, and a
fierce market rally ensued. Both rates were lowered by 0.25% again in November.
By the close of the fiscal year, markets were enjoying relative equilibrium. At
their final policy meeting of 1998, the Fed opted to leave interest rates alone
for the time being.
OUTLOOK
At the close of the fiscal year, the consumer price index was on track to record
its smallest annual increase since 1986, when the index rose just 1.1%. The U.S.
economy exceeded many forecasts and grew by 3.3% during the third quarter. And
while the Fed appears to have adopted a "wait and see" attitude as inflation
sits at its lowest point in more than a decade, some analysts expect more rate
cuts in the coming year as the U.S. economy continues to slow and world markets
continue to recover and stabilize.
After offering some disappointments as the year came to a close, corporate
profits in the U.S. are expected to be mixed and unemployment on the rise in
1999. After experiencing the market's roller-coaster ride in 1998, many analysts
also believe that high volatility may be here to stay, as companies prepare to
compete in this new, uncertain environment.
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. We do not use
derivatives in the management of the Fund.
9
<PAGE>
GT GLOBAL
VARIABLE NATURAL RESOURCES FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: January 31, 1995
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -33.93% -37.89%
Life of Fund 4.45% 3.77%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -33.01%
Life of Fund 5.94%
</TABLE>
PERFORMANCE
We have been in a very challenging environment during 1998. The Fund has
suffered from worldwide deflationary trends, as well as from the poor
performance of natural resources companies following the decline in commodity
prices. In this trying environment, the Fund returned a disappointing -33.01%
for the 12-month period ended December 31, 1998.
During the same period, the Morgan Stanley Capital International (MSCI) World
Index returned 24.34%. However, because the index is designed to represent the
performance of all markets, it does not reflect the Fund's concentration in
natural resources industries.
MARKET REVIEW
Troubles in world markets began with the second wave of "Asian contagion."
Crippled by devalued currencies and billions in bad loans, Asian companies
glutted the global commodity markets with their inventories to produce
desperately needed revenues. At the same time, a strong U.S. dollar drove down
demand for dollar-priced commodities. The combination of increased supply and
weakened demand was disastrous for natural resources companies around the globe,
whose share prices are predominantly influenced by the commodity markets. At the
close of the fiscal year, global markets were showing signs of recovery led by a
late rally in the U.S. market. However, relief has not yet reached the commodity
markets, where prices remained depressed.
Given these unsettling conditions, the Fund has taken a defensive position in
developed countries and had minimal exposure to emerging markets. As of December
31, the Fund had 69.40% of its net assets in the United States. The balance was
invested in continental Europe, Canada, the United Kingdom, and South Korea. Our
holdings in Canada were decreased to 8.30% due to a weakening Canadian economy
and a substantial decline in the value of the Canadian dollar.
OUTLOOK
We are optimistic that markets worldwide have performed a turnaround, coming
back from steep declines in the summer. Investors are being reassured by news
that foreign governments are taking positions to stave off a global recession.
However, as economic growth seems to be decelerating, low inflation and low
interest rates are likely for the near future.
Given that natural resources companies tend to move opposite of most financial
assets and that they generally do better during times of inflation, we will
continue to focus on risk control in 1999. Along these lines, we have
diversified the Fund's portfolio for better defense against battered commodity
prices by purchasing positions in a variety of commodity types. These include
cement, gypsum and gravel manufacturers, who have remained relatively unaffected
by the recent market turbulence. In this deflationary environment, we are also
moving away from riskier investments in smaller, high-growth companies and
investing in the more stable and predictable large caps. For example, we have
holdings in some integrated oil companies that are better positioned to weather
continuing weak market conditions due to their huge size and diverse business
operations.
We remain focused on our disciplined, earnings-driven stock selection process,
looking at the underlying fundamentals of individual companies, not the overall
market. Low commodity prices worldwide will continue to exert significant
downward pressure on earnings of natural resources companies, increasing the
risks and uncertainties of this type of investment. We will continue to focus on
finding the best growth prospects in these challenging times.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable MSCI
Natural Resources Fund World Index
<S> <C> <C>
1/31/95 $10,000 $10,000
6/95 $11,067 $11,107
12/95 $12,220 $12,314
6/96 $15,407 $13,217
12/96 $18,471 $14,038
6/97 $16,560 $16,231
12/97 $18,710 $16,316
6/98 $15,076 $19,066
12/98 $12,534 $20,361
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index for the same period. It assumes a hypothetical $10,000
initial investment in the Funds and reflect all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI World Index is a market value-weighted average of the performance of
1,571 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.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
Investing in a single-sector mutual fund may involve greater risk and potential
reward than investing in a more diversified fund.
10
<PAGE>
GT GLOBAL
VARIABLE NEW PACIFIC FUND(1)
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -15.73% -20.78%
5 Years -11.70% -12.05%
Life of Fund -5.65% -5.81%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -14.54%
5 Years -10.46%
Life of Fund -4.32%
</TABLE>
PERFORMANCE
Throughout 1998, Asia's markets were characterized by sharp movements in stock
prices. Slight gains at the first of the year were overshadowed by a deep
downturn in the summer. The decline was essentially a flight-to-quality
phenomenon spurred by worldwide currency troubles and Russia's foreign debt
default.
Relief came in the fall, when the Federal Reserve Board (the Fed) made a series
of rate cuts to help calm investors' nerves. These moves, a stronger yen and
falling interest rates across Asia gave investors courage to return to the
region. The magnitude of response was actually much stronger than expected.
Asia's markets experienced a dramatic upward reversal, led by
interest-rate-sensitive sectors. The rally was short-lived, however, with most
of the gain concentrated in the first half of October. While the upswing was
good news for the region, it was bad news for the Fund, which had been more
defensively positioned in early October.
Total return for the fiscal year ended December 31, 1998, was -14.54%. In
comparison, the Morgan Stanley Capital International (MSCI) Pacific ex-Japan
Index returned -6.64% over the same period.
MARKET REVIEW
During the fourth quarter, we increased the Fund's exposure to such
interest-rate-sensitive sectors as land development and finance. We concentrated
on opportunities in Hong Kong, Singapore, and Australia, where the banking
systems are sounder than in other parts of the region. While we focused on
financials to take advantage of the current lower interest-rate environment, we
also maintained our exposure to stocks that are more defensive, such as
utilities and telecommunications companies.
These moves, as well as our macroeconomic analysis, led us to increase our
positions in Hong Kong, Korea and Taiwan. Of all the countries in the region,
Korea has made some of the most impressive steps toward reform. In particular,
the government has been very strict about rehabilitating its banks. We believe
Korea will continue to encourage further corporate and financial reform in 1999.
We reduced our allocation to India, where political uncertainty and weak
government finances have hurt market performance.
OUTLOOK
Lower inflation and falling interest rates across Asia helped the region make
some important strides toward recovery in 1998. These improvements boosted
investor confidence late in the year and should support equity markets in the
near term. However, they may not be sufficient for a real economic recovery. The
global easing in interest rates has not entirely removed the threat of weak
external demand. Furthermore, Japan's recovery depends very much on the strength
of policy implementation. The rehabilitation of the banking systems in the
region is still in its primary stage.
Asia must still undergo what is likely to be a very long and painful period of
recovery. However, the ingredients for growth are still there. Asia is still the
lowest-cost, most efficient manufacturing region in the world, boasting
brand-new production infrastructure, high workforce productivity, and advanced
production techniques. For the aggressive, long-term investor, the Fund offers
exposure to this region's potential.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable MSCI Pacific
New Pacific Fund ex-Japan Index
<S> <C> <C>
2/10/93 $10,000 $10,000
6/93 $10,892 $11,328
12/93 $13,392 $17,475
6/94 $11,990 $14,907
12/94 $11,722 $14,983
6/95 $11,655 $16,030
12/95 $11,697 $16,925
6/96 $13,785 $18,500
12/96 $15,320 $20,402
6/97 $15,091 $20,725
12/97 $9,022 $14,081
6/98 $7,259 $11,688
12/98 $7,710 $13,146
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI Pacific ex-Japan Index. Results for the index are for the period
1/31/93- 12/31/98. 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. Past performance is no guarantee of future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
(1) On July 5, 1994, the Fund eliminated Japan from its primary investment area.
The MSCI Pacific ex-Japan Index is a market value-weighted average of the
performance of 205 securities listed on five major Pacific Rim stock exchanges.
It includes the effect of reinvested dividends and is measured in U.S. dollars.
Indexes are unmanaged, not available for direct investment and do not include
the effect of sales charges and professional management fees.
11
<PAGE>
GT GLOBAL
VARIABLE STRATEGIC INCOME FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year -1.98% -7.86%
5 Years 3.65% 3.31%
Life of Fund 7.21% 7.09%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year -0.61%
5 Years 5.11%
Life of Fund 8.72%
</TABLE>
PERFORMANCE
Bond markets, particularly non-investment grade, endured a bumpy ride during
this volatile year, but the Fund managed to recover some of its previous losses
and finish the fiscal year near positive territory. For the fiscal year ended
December 31, 1998, the Fund posted a total return of -0.61%. Comparatively, the
J.P. Morgan Global Government Bond Index had a return of 15.31% for the fiscal
year, and the J.P. Morgan Emerging Markets Bond Index (Brady) returned -14.35%
for the same period.
After paring our emerging market weighting, we added more U.S. investment-grade
bonds, U.K. gilts (government bonds) and German bonds. We believe the economic
fundamentals of those countries remain strong and provide a good measure of
liquidity, safety and diversification. We increased the Fund's exposure to U.S.
corporate bonds because we believe they are an attractive asset class at current
spread levels.
MARKET REVIEW
Hard hit by internal economic and political strife and Japan's extensive
financial problems, many emerging markets struggled to maintain currency value
and avoid recession. Japan's banking system was seriously hindered by a
proliferation of bad loans, causing a major withdrawal of funding from
Asia-perhaps the biggest destabilizing factor in Asia this year. With Russia's
bond default in August, the crisis continued to spread to other emerging
markets, including Latin America. Investor sentiment in the face of this global
instability caused a capital flight to safe havens as preservation of capital
quickly became the leading investment objective. Investors began pulling their
money out of nearly any market that was perceived to be risky, and demand for
U.S. investment-grade bonds soared in due course.
Markets in the U.S. were at first largely unaffected by overseas economic
uncertainty because of continued domestic growth, low inflation, and high
consumer confidence. However, as the crisis in Asia grew and concerns about a
slowing economy spread, U.S. markets began to stutter. Russia's woes and the
collapse of several hedge funds were the last straw, and equity markets plunged
in response to investors' "flight to quality and liquidity." Investment-grade
bond markets jumped as a result, with the spread between U.S. Treasury
securities and high-yield bonds at its widest ever while investors fled to
high-quality bonds. The yield on the 30-year U.S. government bond fell from
5.95% at the beginning of 1998 to 4.71% on October 5-its lowest level since the
issue came into existence in 1977. A series of three rate cuts by the Federal
Reserve Board (the Fed) helped calm U.S. markets as the year came to a close.
OUTLOOK
Events have offered some positive developments that may improve attitudes about
foreign markets. Japan has proposed initiatives to address the multitude of bad
loans in the commercial banking system by providing public funds to shore up
problem institutions. The U.S. Congress passed funding for the International
Monetary Fund (IMF), and talks to extend credit to Brazil have helped to improve
the emerging market debt outlook. Additional funding requests from other
sovereign entities may be coming as the IMF has more resources to lend to
nations in need. We remain optimistic about the income potential of overseas
market debt.
The major long-term themes driving growth in Europe have sheltered it somewhat
from the extreme losses felt in other parts of the world. The strict budgets and
tough financial standards required for admittance to European Economic and
Monetary Union (EMU) have helped Europe's governments clean up their books.
Interest rates have dropped and inflation has lessened. We will be watching
Europe closely in 1999 to see how the introduction of the euro affects the
region as 11 bond markets are consolidated into one.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable JP Morgan Global JP Morgan
Strategic Income Fund Government Bond Index EMBI (Brady)
<S> <C> <C> <C>
2/10/93 $10,000 $10,000 $10,000
12/93 $12,754 $11,092 $14,250
12/94 $10,575 $11,239 $11,587
12/95 $12,637 $13,403 $14,779
12/96 $15,364 $13,093 $19,820
12/97 $16,462 $14,189 $23,081
12/98 $16,361 $16,362 $24,489
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the J.P. Morgan Global Government Bond Index and the J.P. Morgan Emerging
Markets Bond Index (Brady) for the same period. 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. Past performance is no guarantee
of future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The J.P. Morgan Global Government Bond Index is a market value-weighted average
of government bonds from 13 major bond markets. It includes the effect of
reinvested coupons and is measured in U.S. dollars.
The J.P. Morgan Emerging Markets Bond Index (Brady) tracks total returns for
traded external debt Brady bonds in the emerging markets. Brady bonds are
foreign bonds collateralized by U.S. Treasury bonds.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
12
<PAGE>
GT GLOBAL
VARIABLE TELECOMMUNICATIONS FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception date: October 18, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 20.42% 14.42%
5 Years 15.58% 15.36%
Life of Fund 16.77% 16.67%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 22.11%
5 Years 17.21%
Life of Fund 18.41%
</TABLE>
PERFORMANCE
Despite an extremely volatile stock market and much concern among investors, the
Fund finished the reporting period with a big push forward. For the fiscal year
ended December 31, 1998, the Fund posted a total return of 22.11%.
Comparatively, the MSCI World Index had a return of 24.34% for the fiscal year,
and the MSCI Telecommunications Index had a return of 49.78% for the same
period.
Companies that did particularly well for the Fund include Finland's Nokia,
Germany's Mannesmann, Italy's Telecom Italia, and NTL from the United Kingdom.
Also contributing to the Fund's success were companies from the United States
such as Tele-Communications, MCI WorldCom, America Online, and SBC
Communications.
MARKET REVIEW
After setting records in the first half of 1998, markets succumbed to the "Asian
contagion" in July, which cast doubts on the sustainability of the long economic
expansion in the United States and the boom in Europe's stock markets. Russia's
bond default in August contributed to a market downturn that eventually involved
even the very large, very liquid stocks that were chiefly responsible for the
U.S. market's earlier rise. Many overseas markets were devastated.
Fortunately, an October rally in the U.S. stock market halted the downturn,
buoyed by better-than-expected earnings reports from some companies and two
back-to-back interest rate reductions by the Federal Reserve Board (the Fed). A
third Fed rate cut in November helped keep the market rally going for the most
part through the end of 1998.
The major long-term themes driving growth in Europe sheltered it somewhat from
the extreme losses felt in other parts of the world. Many of the continent's
telephone markets are now open to competition, and we believe this will lead to
continued growth as new companies face less risk in going head-to-head with
former monopolies.
Because of the ongoing difficulties in the emerging markets and investors'
shunning of investments in smaller growth companies, we put a greater emphasis
on conservative, established telecommunications service and equipment companies.
We continue to believe, however, that global deregulation and innovations in
technology favor a new generation of telecommunications companies because there
will be an increase in competition via new products and services.
Holdings in wireless services and equipment, especially in Europe, were
increased to take advantage of ongoing positive earnings in that industry. Lower
calling prices and increased competition continue to help drive domestic and
international growth in wireless communications. Holdings in Russia and Latin
America were reduced because of economic difficulties there, while increases
were made in holdings in the United Kingdom, Germany and France.
OUTLOOK
The stock market as a whole has handily recovered from its lows in 1998. Strong
gains in markets overseas have contributed to the U.S. market's comeback, as has
anticipation of future interest rate cuts by the Fed.
We remain optimistic that wireless services, especially in Europe, will continue
to see upside surprises in subscriber additions and revenues. Now that the euro
has been introduced in Europe, we will also be watching that region closely to
see how European companies perform in the wake of increased competition and
tougher financial standards.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable MSCI MSCI Telecommunications
Telecommunications Fund World Index Index
<S> <C> <C> <C>
10/18/93 $10,000 $10,000 $10,000
12/93 $10,892 $9,899 $9,645
12/94 $11,670 $10,452 $9,386
12/95 $14,432 $12,680 $11,910
12/96 $17,224 $14,454 $12,923
12/97 $19,731 $16,800 $16,246
12/98 $24,093 $20,528 $24,527
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the MSCI World Index and the MSCI Telecommunications Index for the same period.
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. Past
performance is no guarantee of future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI World Index is a group of unmanaged global securities listed on major
world stock exchanges tracked by Morgan Stanley Capital International.
The MSCI Telecommunications Index is a market value-weighted average of the
performance of securities listed on 10 major stock exchanges. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
Investing in a single-sector mutual fund involves greater risk and potential
reward than investing in a more diversified fund.
An investment cannot be made in any index listed. Unless otherwise indicated,
index results include reinvested dividends and do not reflect sales charges.
13
<PAGE>
GT GLOBAL
VARIABLE U.S. GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH DECEMBER 31, 1998
Inception Date: February 10, 1993
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 7.55% .55%
5 Years 3.90% 3.56%
Life of Fund 4.17% 4.03%
<CAPTION>
FUND PERFORMANCE
AVERAGE ANNUALIZED
<S> <C>
1 Year 9.06%
5 Years 5.36%
Life of Fund 5.64%
</TABLE>
PERFORMANCE
Despite an environment rife with turmoil and volatility, the GT Global Variable
U.S. Government Income Fund stayed in line with its primary objective of
providing a steady flow of income while preserving capital. For the fiscal year
ended December 31, 1998, the Fund's total return was 9.06%.
MARKET REVIEW
In general, the reporting period was a tumultuous one as the Asian economic
crisis that began in the latter half of 1997 spent 1998 intermittently wreaking
havoc in both equity and fixed income markets. Certainly this was most evident
in August and September when a combination of factors stemming from
Asia--including the recession in Japan, currency and debt struggles in Russia,
and the near collapse of the hedge fund Long-Term Capital--resulted in a
fear-driven global flight from all forms of investment risk.
In a matter of weeks aspirations for total returns were replaced with those of
preservation of capital. Investors abandoned riskier securities, causing equity
and nongovernment bond markets around the world to tumble. The only
beneficiaries of this volatile investment environment were the government bond
markets in the United States and the industrialized nations in Europe. As these
securities are backed by the full faith and credit of their governments, they
were viewed as a safe haven throughout this time of unrest. As these are the
types of securities targeted by the Fund, we were able to reap some benefits
during this time of market turbulence.
Markets eventually rebounded after a series of interest rate cuts by the Federal
Reserve Board (the Fed). However the effects of the market sell-off left many
investors wary. As investors had watched the value of riskier securities
plummet, many saw fit to diversify their assets by adding a relatively more
stable asset in their portfolio, like the GT Global Variable U.S. Government
Income Fund, to dampen market volatility.
OUTLOOK
While it appeared at the mid-point of this year that the robust economic growth
might result in an increase in the federal funds rate, it soon became apparent
that Asia's economic struggles and their effects on the global marketplace would
not allow for such action. Instead, the Fed cut short-term rates by 0.75% in the
final months of 1998 to enhance worldwide liquidity. In addition, the Fed has
made it clear that it would not hesitate to lower rates again if need dictates.
Uncertainty still remains regarding Japan and the emerging markets of Asia and
Latin America, specifically in China and Brazil. As in 1998, the devaluation of
a currency or a similar economic crisis could result in investors rushing back
into the U.S. Treasury market and additional rate cuts.
On the domestic front, most analysts expect a slowdown in U.S. economic growth
and a continuation of relatively low inflation. Historically, these conditions
have proven beneficial for bond investors. Regardless of what the coming year
may bring, GT Global Variable U.S. Government Income Fund will strive to tailor
the portfolio to market conditions as they change throughout the coming year. In
doing so, the Fund will endeavor to provide the same stability and level of
income it has in the past.
PERFORMANCE SUMMARY
[CHART]
<TABLE>
<CAPTION>
GT Global Variable JP Morgan
U.S. Government U.S. Government
Income Fund Bond Index
<S> <C> <C>
2/10/93 $10,000 $10,000
12/93 $10,638 $10,792
12/94 $9,971 $10,479
12/95 $11,440 $12,296
12/96 $11,695 $12,658
12/97 $12,666 $13,924
12/98 $13,813 $15,351
</TABLE>
The chart above shows the performance of the Fund since inception, compared to
the J.P. Morgan U.S. Government Bond Index for the same time period. 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. Past performance
is no guarantee of future results.
MARKET VOLATILITY CAN SIGNIFICANTLY IMPACT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The J.P. Morgan U. S. Government Bond Index is a market-value-weighted index of
U. S. Treasury issues with remaining maturities of at least one year. It
includes the effect of reinvested coupons and is measured in U.S. dollars.
Indexes are unmanaged, not available for direct investment and do not include
the effects of sales charges and professional management fees.
14
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
2
<PAGE>
GT GLOBAL
ALLOCATOR
FUNDS'
FINANCIAL
STATEMENTS
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
2
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (59.7%)
Algeria (1.0%)
Algeria Tranche 1 Loan Assignment, 6.625% due 9/4/06+ .... USD 500,000 $ 225,000 1.0
Argentina (2.9%)
Republic of Argentina:
11% due 12/4/05 - 144A{.} .............................. USD 180,000 179,550 0.8
11% due 10/9/06 ........................................ USD 134,000 132,828 0.6
Discount Bond, 6.0625% due 3/31/23+ .................... USD 150,000 111,188 0.5
Global Bond, 11.375% due 1/30/17 ....................... USD 110,000 110,275 0.5
I.O. Strip, 12.11% due 4/10/05 ......................... USD 115,000 104,938 0.5
Brazil (0.9%)
Brazil Floating Rate Discount Note, 6.125% due
4/15/24+ ................................................ USD 325,000 194,188 0.9
Bulgaria (1.9%)
Republic of Bulgaria:
Discounted Bond Series A, 6.6875% due 7/28/24 -
Euro+ ................................................. USD 397,000 278,893 1.3
Front Loaded Interest Reduction Bond Series A, 2.5%
(2.75% at 7/99) due 7/28/12++ ......................... USD 218,000 124,941 0.6
Canada (1.0%)
Canadian Government, 6% due 6/1/08 ....................... CAD 300,000 212,294 1.0
Colombia (0.9%)
Republic of Colombia:
8.625% due 4/1/08 ...................................... USD 179,000 153,045 0.7
7.27% due 6/15/03 - 144A{.} ............................ USD 55,000 47,025 0.2
Denmark (2.4%)
Kingdom of Denmark, 7% due 11/10/24 ...................... DKK 2,600,000 523,432 2.4
Germany (14.2%)
Deutschland Republic:
6% due 1/5/06 .......................................... DEM 2,180,000 1,491,100 6.8
6.5% due 7/4/27 ........................................ DEM 920,000 690,147 3.1
6.5% due 10/14/05 ...................................... DEM 700,000 489,672 2.2
6% due 7/4/07 .......................................... DEM 670,000 463,844 2.1
Greece (1.7%)
Hellenic Republic:
8.8% due 6/19/07 ....................................... GRD 50,000,000 198,849 0.9
9.2% due 3/21/02 ....................................... GRD 50,000,000 184,616 0.8
Italy (4.3%)
Italian Government, 7.25% due 11/1/26 .................... ITL 780,000,000 634,596 2.9
Italian Buoni Poliennali Del Tesoro (BTPS), 8.5% due
1/1/04 .................................................. ITL 420,000,000 313,022 1.4
Ivory Coast (1.2%)
Ivory Coast:
1.9% due 3/29/18 ....................................... FRF 3,851,250 186,034 0.8
2% due 3/29/18 ......................................... USD 296,250 87,564 0.4
Korea (1.1%)
Korea Republic Restructured Debt, 8.281% due 4/8/00 ...... USD 250,000 239,375 1.1
Mexico (0.6%)
United Mexican States, 9.875% due 1/15/07 ................ USD 131,000 129,526 0.6
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
Netherlands (1.1%)
Netherlands Government Bond, 5.5% due 1/15/28 ............ NLG 400,000 $ 236,184 1.1
Peru (1.7%)
Republic of Peru, Past Due Interest Bond, 4.00% (4.50% at
7/99) due 3/7/17++ ...................................... USD 584,000 369,380 1.7
Russia (0.2%)
Bank for Foreign Economic Affairs (Venesheconombank)
Principal Loans, 6.625% due 12/15/20+ ................... USD 667,458 43,385 0.2
Russian Ministry of Finance #6, due 5/14/06 GDR -
144A{.} ................................................. USD 9,000 653 --
Turkey (0.4%)
Republic of Turkey, 12% due 12/15/08 ..................... USD 96,000 95,520 0.4
United Kingdom (10.0%)
United Kingdom Treasury, 9% due 10/13/08 ................. GBP 970,000 2,200,798 10.0
United States (12.2%)
United States Treasury:
6.375% due 8/15/27{./} ................................. USD 1,660,000 1,909,225 8.7
4.25% due 11/15/03 ..................................... USD 300,000 296,227 1.3
4.75% due 11/15/08 ..................................... USD 170,000 171,381 0.8
Federal National Mortgage Association, 7.25% due
6/20/02 ................................................. NZD 550,000 298,589 1.4
-----------
Total Government & Government Agency Obligations (cost
$13,455,718) ................................................ 13,127,284
-----------
Corporate Bonds (26.7%)
Argentina (1.9%)
Telefonica de Argentina, 9.125% due 5/7/08 - Reg S{c} .... USD 245,000 226,652 1.0
YPF S.A., 10% due 11/2/28 ................................ USD 95,000 97,969 0.4
Supercanal Holdings S.A., 11.5% due 5/15/05 - Reg S{c} ... USD 100,000 57,500 0.3
Mastellone Hermanos S.A., 11.75% due 4/1/08 - 144A{.} .... USD 53,000 42,798 0.2
Brazil (0.2%)
Banco Hipotecario Espana, 10% due 4/17/03 - 144A{.} ...... USD 53,000 48,760 0.2
Cayman Islands (0.5%)
Nacional Financiera SNC, 8.649% due 12/1/00 - Euro 144A+
{.} ..................................................... USD 105,000 106,050 0.5
Colombia (0.1%)
Financiera Energia Nacional, 9.375% due 6/15/06 - Reg
S{c} .................................................... USD 30,000 25,200 0.1
Germany (0.6%)
Bayerische Landesbank NY, 5.875% due 12/1/08 ............. USD 140,000 143,163 0.6
Jamaica (0.1%)
Mechala Group Jamaica, 12.75% due 12/30/99 - Reg S{c} .... USD 44,000 30,800 0.1
Mexico (4.1%)
Petroleos Mexicanos:
8.85% due 9/15/07 - 144A{.} ............................ USD 180,000 162,000 0.7
9.375% due 12/2/08 - 144A{.} ........................... USD 130,000 129,675 0.6
9.25% due 3/30/18 - 144A{.} ............................ USD 160,000 128,800 0.6
Banco Nacional Comercio Exte., 8% due 7/18/02 - Reg
S{c} .................................................... USD 153,000 149,940 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Corporate Bonds (Continued)
Monterrey Power, S.A. de C.V., 9.625% due 11/15/09 -
144A{.} ................................................. USD 193,000 $ 148,610 0.7
Dine, S.A. de C.V., 8.75% due 10/15/07 - 144A{.} ......... USD 90,000 72,450 0.3
Grupo Industrial Durango, S.A., 12.625% due 8/1/03 ....... USD 50,000 44,125 0.2
Cemex Valenciana, 9.66% due 12/29/49 ..................... USD 40,000 36,200 0.2
Grupo Azucarero Mexico, 11.5% due 1/15/05 - Reg S{c} ..... USD 50,000 19,000 0.1
Netherlands (0.6%)
TPSA Finance BV, 7.75% due 12/10/08 - 144A{.} ............ USD 126,000 124,268 0.6
Russia (0.2%)
Lukinter Finance BV Convertible, 3.5% due 5/6/02 -
144A{.} ................................................. USD 94,000 34,310 0.2
Mosenergo Finance BV, 8.375% due 10/9/02 - 144A{.} ....... USD 67,000 11,725 --
United Kingdom (0.4%)
Colt Telecom Group PLC, 7.625% due 7/31/08 ............... DEM 150,000 89,058 0.4
United States (18.0%)
Comcast Cable Communications, 6.2% due 11/15/08 .......... USD 300,000 305,994 1.4
Xerox Corp., 5.5% due 11/15/03 ........................... USD 300,000 300,834 1.4
Ford Motor Credit Corp., 5.25% due 6/16/08 ............... DEM 320,000 200,895 0.9
Unisys Corp., 7.875% due 4/1/08 .......................... USD 150,000 159,938 0.7
Chase Manhattan Corp., 6.25% due 1/15/06 ................. USD 152,000 157,318 0.7
Lenfest Communications, 8.25% due 2/15/08 - 144A{.} ...... USD 150,000 157,125 0.7
Lin Television Corp., 8.375% due 3/1/08 - 144A{.} ........ USD 150,000 151,313 0.7
General Motors Acceptance Corp., 6.625% due 10/15/05 ..... USD 143,000 150,998 0.7
Engle Homes, Inc., 9.25% due 2/1/08 ...................... USD 150,000 150,750 0.7
Hollywood Casino Corp., 12.75% due 11/1/03 ............... USD 125,000 133,750 0.6
Riddell Sports, Inc., 10.5% due 7/15/07 .................. USD 135,000 128,242 0.6
Smithfield Foods, Inc., 7.625% due 2/15/08 ............... USD 125,000 126,250 0.6
Graham Packaging/GPC Capital, 8.75% due 1/15/08 -
144A{.} ................................................. USD 125,000 125,625 0.6
Trump Atlantic Association Funding, Inc., 11.25% due
5/1/06 .................................................. USD 135,000 118,800 0.5
Cendant Corp., 7.75% due 12/1/03 ......................... USD 100,000 101,216 0.5
United Stationers Supply, 8.375% due 4/15/08 - 144A{.} ... USD 100,000 100,250 0.5
Drypers Corp. Series B, 10.25% due 6/15/07 ............... USD 90,000 87,750 0.4
Loews Cineplex Entertainment, 8.875% due 8/1/08 -
144A{.} ................................................. USD 75,000 77,813 0.4
Circus Circus Enterprise, 9.25% due 12/1/05 .............. USD 75,000 77,794 0.3
Fisher Scientific International, 9% due 2/1/08 ........... USD 75,000 75,000 0.3
Chancellor Media Corp., 8.125% due 12/15/07 - 144A{.} .... USD 75,000 74,813 0.3
PSINET, Inc., 10% due 2/15/05 ............................ USD 75,000 74,625 0.3
Viasystems, Inc., 9.75% due 6/1/07 ....................... USD 75,000 70,125 0.3
U.S. Filter Corp., 4.5% due 12/15/01 ..................... USD 73,000 69,168 0.3
Niagara Mohawk Power, 7.375% due 7/1/03 .................. USD 65,000 66,632 0.3
Penn National Gaming, Inc., 10.625% due 12/15/04 -
144A{.} ................................................. USD 55,000 58,025 0.3
Duane Reade, Inc., 9.25% due 2/15/08 ..................... USD 55,000 56,925 0.3
Eagle Family Foods, 8.75% due 1/15/08 - 144A{.} .......... USD 60,000 56,850 0.3
Norampac, Inc., 9.5% due 2/1/08 - 144A{.} ................ USD 55,000 56,100 0.3
Allbritton Communication, 8.875% due 2/1/08 - 144A{.} .... USD 55,000 55,000 0.2
International Home Foods, 10.375% due 11/1/06 ............ USD 50,000 54,375 0.2
Revlon Consumer Products, 8.625% due 2/2/08 - 144A{.} .... USD 55,000 50,875 0.2
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Corporate Bonds (Continued)
Syratech Corp., 11% due 4/15/07{.} ....................... USD 60,000 $ 48,900 0.2
Salton/Maxim Housewares, 10.75% due 12/15/05 - 144A{.} ... USD 45,000 45,506 0.2
Park Place Entertainment, 7.875% due 12/15/05 -
144A{.} ................................................. USD 45,000 45,281 0.2
Healthsouth Corp., 3.25% due 4/1/03 ...................... USD 50,000 42,750 0.2
Delco Remy International, Inc., 8.625% due 12/15/07 ...... USD 40,000 41,200 0.2
BTI Telecommunications Corp., 10.5% due 9/15/07 -
144A{.} ................................................. USD 55,000 40,975 0.2
Hayes Lemmerz International, Inc., 8.25% due 12/15/05 -
144A{.} ................................................. USD 40,000 40,000 0.2
Pillowtex Corp., 9% due 12/15/07 - 144A{.} ............... USD 25,000 25,875 0.1
ACME Metal, Inc., 10.875% due 12/15/07 - 144A(::) {.} .... USD 45,000 6,075 --
-----------
Total Corporate Bonds (cost $6,120,826) ...................... 5,896,783
-----------
Mortgage Backed (7.2%)
Denmark (1.4%)
Realkredit Danmark, 6% due 10/1/26 ....................... DKK 1,904,000 298,991 1.4
United States (5.8%)
Government National Mortgage Association TBA Pass Thru
Pool, due 1/15/29{*} .................................... USD 1,300,000 1,288,625 5.8
-----------
Total Mortgage Backed (cost $1,540,127) ...................... 1,587,616
-----------
Structured Notes (0.5%)
Korea (0.5%)
Fixed Rate Trust Certificate 13.55% due 2/15/02 (Issued by
a newly created Delaware Business Trust, collateralized
by triple A paper. This trust certificate has a credit
risk component linked to the value of a referenced
security: Korean Development[::] (Cost $130,000) ........ USD 130,000 102,700 0.5
----------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $21,246,671) ............ 20,714,383 94.1
----------- -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Republic of Argentina Global Bond Warrants, 11% due 12/3/99
(cost $0) ................................................. ARG 180 8,640 --
----------- -----
GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
<CAPTION>
PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (5.9%)
United States (5.9%)
GE Capital, effective yield 5.25%, due 1/21/99 ........... USD 1,300,000 1,296,136 5.9
-----------
Total Commercial Paper - Discounted (cost $1,296,136) ........ 1,296,136
----------- -----
TOTAL SHORT-TERM INVESTMENTS (cost $1,296,136) ............... 1,296,136 5.9
----------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998 with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $695,000 U.S. Treasury Notes, 7.75% due
12/31/99 (market value of collateral is $715,633, including
accrued interest)(cost $698,000) ......................... $ 698,000 3.2
----------- -----
TOTAL INVESTMENTS (cost $23,240,807) * ...................... 22,717,159 103.2
Other Assets and Liabilities ................................. (695,314) (3.2)
----------- -----
NET ASSETS ................................................... $22,021,845 100.0
----------- -----
----------- -----
</TABLE>
- --------------
[::] Certain events may cause the contract to terminate prior to date
shown.
{.} 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.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
+ The coupon rate shown on floating rate note represents the rate at
period end.
(::) Valued in good faith at fair value using procedures approved by the
Board of Directors (See Note 1 of Notes to Financial Statements).
++ The coupon rate shown on step-up coupon bond represents the rate at
period end.
{*} Purchased on a forward commitment basis.
{./} All or part of the Fund's holdings in this security is segregated
as collateral for when issued or derivative instruments.
* For Federal income tax purposes, cost is $23,399,273 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 629,172
Unrealized depreciation: (1,311,286)
-------------
Net unrealized depreciation: $ (682,114)
-------------
-------------
</TABLE>
Abbreviation:
GDR--Global Depositary Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
(U.S. CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- ------------ ------------ -------- ------------
<S> <C> <C> <C> <C>
Canadian Dollars........................ 209,194 1.54785 3/18/99 $ (2,455)
French Francs........................... 161,647 5.45470 3/18/99 3,348
------------ ------------
Total Contracts to Sell (Receivable
amount $371,734)................... 370,841 893
------------ ------------
THE VALUE OF CONTRACTS TO SELL AS PERCENTAGE OF NET ASSETS IS 1.68%.
Total Open Forward Foreign Currency
Contracts.......................... $ 893
------------
------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (81.1%)
Canada (1.8%)
Canadian Government, 6% due 6/1/08 ........................ CAD 230,000 $ 162,759 1.8
Denmark (10.6%)
Kingdom of Denmark Bullet, 6% due 11/15/09 ................ DKK 5,200,000 933,025 10.6
Germany (10.8%)
Deutschland Republic:
6% due 7/4/07 ........................................... DEM 1,020,000 706,150 8.0
6.5% due 10/14/05 ....................................... DEM 250,000 174,883 2.0
6% due 1/5/06 ........................................... DEM 105,000 71,819 0.8
Greece (3.6%)
Hellenic Republic:
8.8% due 6/19/07 ........................................ GRD 50,000,000 198,849 2.3
9.2% due 3/21/02 ........................................ GRD 30,000,000 110,769 1.3
Italy (9.3%)
Italian Buoni Poliennali del Tesoro (BTPS):
7.25% due 1/1/26 ........................................ ITL 610,000,000 496,287 5.6
8.5% due 1/1/04 ......................................... ITL 440,000,000 327,928 3.7
Netherlands (1.8%)
Netherlands Government Bond, 5.5% due 1/15/28 ............. NLG 275,000 162,376 1.8
United Kingdom (9.3%)
United Kingdom Treasury, 9% due 10/13/08 .................. GBP 360,000 816,791 9.3
United States (32.8%)
United States Treasury:
5.625% due 5/15/08 ...................................... USD 1,515,000 1,617,055 18.4
6.375% due 8/15/27{./} .................................. USD 740,000 851,405 9.7
4.75% due 11/15/08 ...................................... USD 280,000 282,275 3.2
Federal National Mortgage Association, 6.375% due
8/15/07 .................................................. AUD 200,000 129,119 1.5
Uruguay (1.1%)
Republic of Uruguay, 7.875% due 7/15/27 - 144A{.} ......... USD 100,000 98,000 1.1
----------
Total Government & Government Agency Obligations (cost
$7,015,142) .................................................. 7,139,490
----------
Corporate Bonds (10.0%)
Germany (2.0%)
Bayerische Landesbank NY, 5.875% due 12/1/08 .............. USD 100,000 102,259 1.2
Kredit Fuer Wiederaufbau International Finance, 7.25% due
7/16/07 .................................................. AUD 100,000 67,831 0.8
Tunisia (2.3%)
Banque Centrais de Tunisie, 8.25% due 9/19/27 ............. USD 250,000 207,049 2.3
United Kingdom (4.3%)
SBC Jersey, 8.75% due 6/20/05 ............................. GBP 200,000 380,552 4.3
United States (1.4%)
Ford Motor Credit Corp., 5.25% due 6/16/08 ................ DEM 190,000 119,282 1.4
----------
Total Corporate Bonds (cost $882,222) ......................... 876,973
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Mortgage Backed (6.5%)
Denmark (2.8%)
Realkredit Danmark, 6% due 10/1/26 ........................ DKK 1,596,000 $ 250,624 2.8
United States (3.7%)
Government National Mortgage Association TBA Pass Thru
Pool, due 1/15/29{*} ..................................... USD 275,000 272,594 3.1
Federal Home Loan Mortgage Association Pool #E62449, 8.5%
due 3/1/10 ............................................... USD 48,446 50,217 0.6
----------
Total Mortgage Backed (cost $553,986) ......................... 573,435
---------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $8,451,350) .............. 8,589,898 97.6
---------- -----
<CAPTION>
PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (3.1%)
United States (3.1%)
General Electric Capital Corp., effective yield 5.25%, due
1/21/99
(cost $274,133) .......................................... USD 275,000 274,133 3.1
---------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $130,000 U.S. Treasury Bonds, 6.75% due
8/15/26 (market value of collateral is $158,681, including
accrued interest).(cost $151,000) ......................... 151,000 1.7
---------- -----
TOTAL INVESTMENTS (cost $8,876,483) * ........................ 9,015,031 102.4
Other Assets and Liabilities .................................. (214,340) (2.4)
---------- -----
NET ASSETS .................................................... $8,800,691 100.0
---------- -----
---------- -----
</TABLE>
- --------------
{.} 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.
{./} All or part of the Fund's holdings in this security is segregated
as collateral for when-issued securities. See Note 1 to the
financial statements.
{*} Purchased on a forward commitment basis.
* For Federal income tax purposes, cost is $8,876,483 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 287,545
Unrealized depreciation: (148,997)
-------------
Net unrealized appreciation: $ 138,548
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACT OUTSTANDING
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE CONTRACT DELIVERY UNREALIZED
CONTRACT TO SELL: (U.S. DOLLARS) PRICE DATE DEPRECIATION
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Canadian Dollars........................ 156,896 1.54785 3/18/99 $ (1,842)
-------------- --------------
Total Contract to Sell (Receivable
amount $155,054)..................... 156,896 (1,842)
-------------- --------------
THE VALUE OF CONTRACT TO SELL AS
PERCENTAGE OF NET ASSETS IS 1.78%.
Total Open Forward Foreign Currency
Contract............................. $ (1,842)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (65.9%)
United States Treasury:
7.625% due 2/15/25 ........................................ USD 1,050,000 $1,381,511 18.7
9.25% due 2/15/16 ......................................... USD 600,000 861,680 11.7
5.625% due 5/15/08 ........................................ USD 300,000 320,209 4.3
Federal Home Loan Mortgage Corp., 5.75% due 7/15/03 ......... USD 1,300,000 1,335,607 18.1
Tennessee Valley Authority Series A, 6.375% due 6/15/05 ..... USD 400,000 423,250 5.7
Student Loan Marketing Assoc., 7.5% due 3/8/00 .............. USD 350,000 360,406 4.9
Federal National Mortgage Association, 6.8% due 1/10/03 ..... USD 90,000 95,446 1.3
Financial Assistance Corp., 9.375% due 7/21/03 .............. USD 75,000 87,843 1.2
----------
Total Government & Government Agency Obligations (cost
$4,719,931) .................................................. 4,865,952
----------
Mortgage Backed (26.1%)
Federal National Mortgage Association:
Pool #398668, 6.5% due 9/1/27 ............................. USD 308,167 310,383 4.2
Pool #363939, 7% due 3/1/04 ............................... USD 124,630 127,317 1.7
Pool #356801, 6% due 12/1/08 .............................. USD 106,578 107,045 1.5
Mortgage Index Amortizing Trust, 6.682% due 8/25/04 ......... USD 500,000 501,206 6.8
FHLM Corporation Gold Pool #E72223, 6% due 9/1/13 ........... USD 494,634 496,335 6.7
Government National Mortgage Association:
Pool # 780523, 7.5% due 3/15/08 ........................... USD 219,072 227,013 3.1
Federal Home Loan Mortgage Corp. Series 1462 PL due
7/15/21 .................................................... USD 155,000 158,426 2.1
----------
Total Mortgage Backed (cost $1,911,230) ....................... 1,927,725
----------
Supranational Bonds (7.7%)
International Bank of Reconstruction & Development, 5.25% due
9/16/03 .................................................... USD 350,000 352,625 4.8
Asian Development Bank, 8% due 4/30/01 ...................... USD 200,000 210,806 2.9
----------
Total Supranational Bonds (cost $529,321) ..................... 563,431
---------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $7,160,482) .............. 7,357,108 99.7
---------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $30,000 U.S. Treasury Bonds, 8.88% due
8/15/17 (market value of collateral is $43,177, including
accrued interest) (cost $40,000) .......................... 40,000 0.5
---------- -----
TOTAL INVESTMENTS (cost $7,200,482) * ........................ 7,397,108 100.2
Other Assets and Liabilities .................................. (15,937) (0.2)
---------- -----
NET ASSETS .................................................... $7,381,171 100.0
---------- -----
---------- -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $7,200,482 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 212,935
Unrealized depreciation: (16,309)
-------------
Net unrealized appreciation: $ 196,626
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Telephone (20.7%)
Telecomunicacoes Brasileiras S.A. - Telebras: ............... BRZL -- -- 8.2
Preferred - ADR{\/} ....................................... -- 5,740 $ 417,226 --
Common .................................................... -- 8,793 393,043 --
Carso Global Telecom "A1"-/- ................................ MEX 96,300 324,891 3.3
Nortel Inversora S.A. - ADR{\/} ............................. ARG 19,400 310,400 3.1
Telecomunicacoes de Sao Paulo S.A. - TELESP: ................ BRZL -- -- 2.2
Common-/- ................................................. -- 1,428 122,940 --
Preferred ................................................. -- 736 100,375 --
Telefonica de Argentina S.A. - ADR{\/} ...................... ARG 4,300 120,131 1.2
Tele Centro Sul Participacoes S.A. - ADR{\/}-/- ............. BRZL 2,500 104,531 1.1
Telesp Participacoes S.A.-/- ................................ BRZL 7,365 94,495 1.0
Tele Norte Leste Participacoes S.A. - Preferred-/- .......... BRZL 5,165 64,563 0.6
----------
2,052,595
----------
Electric Companies (15.3%)
Enersis S.A. - ADR{\/} ...................................... CHLE 11,800 304,588 3.1
Companhia Energetica de Minas Gerais (CEMIG) - ADR{\/} ...... BRZL 12,583 239,538 2.4
Companhia de Eletricidade do Estado da Bahia - COELBA ....... BRZL 4,960 168,303 1.7
Companhia Paranaense de Energia (Copel): .................... BRZL -- -- 1.7
ADR{\/} ................................................... -- 13,673 97,420 --
Common .................................................... -- 11,938 68,189 --
C.A. La Electricidad de Caracas - ADR{\/} ................... VENZ 7,153 152,001 1.5
Eletricidade de Sao Paulo S.A. .............................. BRZL 2,900 134,454 1.4
Gener S.A. - ADR{\/} ........................................ CHLE 7,764 124,224 1.3
Empresa Nacional de Electricidad S.A. - ADR{\/} ............. CHLE 9,100 103,513 1.0
Light - Servicos de Eletricidade S.A. ....................... BRZL 572 69,582 0.7
Companhia Paulista de Forca e Luz-/- ........................ BRZL 430 30,969 0.3
Empresa Bandeirante de Energia S.A.-/- ...................... BRZL 1,336 14,381 0.1
C.A. La Electridad de Caracas ............................... VENZ 14,348 6,199 0.1
----------
1,513,361
----------
Beverages-Alcoholic (8.1%)
Fomento Economico Mexicano, S.A. de C.V. - ADR{\/} .......... MEX 18,100 481,913 4.9
Compania Cervecerias Unidas S.A. - ADR{\/} .................. CHLE 10,300 198,275 2.0
Quilmes Industrial S.A. (Quinsa) - ADR{\/} .................. LUX 13,300 123,856 1.2
Cerveceria Backus & Johnston S.A. ........................... PERU 6,244 2,058 --
----------
806,102
----------
Manufacturing-Diversified (6.8%)
Grupo Carso S.A. de C.V. "A1"-/- ............................ MEX 83,800 284,412 2.9
Desc S.A. de C.V. - ADR{\/} ................................. MEX 8,070 154,843 1.6
Alpha, S.A. de C.V. "A" ..................................... MEX 42,200 112,533 1.1
Grupo Industrial Saltillo, S.A. de C.V. "B" ................. MEX 34,200 85,327 0.9
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS ......... BRZL 15,300 33,817 0.3
----------
670,932
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Banks-Regional (6.3%)
Uniao de Bancos Brasileiros S.A. (Unibanco) Units{\/}{=} .... BRZL 7,525,500 $ 217,299 2.2
Banco de Galicia y Buenos Aires S.A. de C.V. - ADR{\/} ...... ARG 11,543 203,447 2.0
Bansud S.A. "B"-/- .......................................... ARG 22,700 97,476 1.0
Banco de A. Edwards - ADR{\/} ............................... CHLE 5,777 63,547 0.6
Banco Latinoamericano de Exportaciones, S.A. "E"{\/} ........ PAN 2,713 45,104 0.5
----------
626,873
----------
Financial-Diversified (6.1%)
Administradora de Fondos de Peniones Provida S.A. -
ADR{\/} .................................................... CHLE 13,181 177,120 1.8
Quinenco S.A. - ADR{\/} ..................................... CHLE 14,800 118,400 1.2
Grupo Financiero Banorte, S.A. de C.V. "B"-/- ............... MEX 132,000 113,333 1.1
Grupo Financiero Banamex Accival, S.A. de C.V. (Banacci)
"B"-/- ..................................................... MEX 83,980 110,107 1.1
Credicorp Ltd. - ADR{\/}-/- ................................. PERU 9,640 86,760 0.9
----------
605,720
----------
Oil & Gas-Exploration & Production (4.3%)
Petroleo Brasileiro S.A. (Petrobras) Preferred .............. BRZL 3,347 379,541 3.8
Harken Energy Corp.-/- ...................................... US 27,890 54,037 0.5
----------
433,578
----------
Construction-Cement & Aggregates (3.8%)
Apasco, S.A. de C.V. ........................................ MEX 54,100 190,716 1.9
Corporacion GEO, S.A. de C.V. "B"-/- ........................ MEX 26,000 72,222 0.7
Grupo Cementos de Chihuahua, S.A. de C.V. "B" ............... MEX 128,500 61,654 0.6
Corporacion Venezolana de Cementos S.A.C.A.: ................ VENZ -- -- 0.5
"A" ....................................................... -- 45,516 29,860 --
"B" ....................................................... -- 30,088 20,005 --
Companhia Cimento Portland Itau-/- .......................... BRZL 68 7,740 0.1
----------
382,197
----------
Entertainment (2.8%)
Grupo Televisa S.A. - GDR{\/}-/- ............................ MEX 11,400 281,438 2.8
----------
Paper & Forest Products (2.7%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" .................. MEX 64,700 205,864 2.1
Votorantim Celulose e Papel S.A.-/- ......................... BRZL 5,700 61,341 0.6
----------
267,205
----------
Iron & Steel (2.5%)
Companhia Vale de Rio Doce "A" - Preferred .................. BRZL 17,000 218,129 2.2
Caemi Mineracao E Metalurgia S.A. - Preferred ............... BRZL 1,356 27,502 0.3
----------
245,631
----------
Chemicals (2.3%)
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ........... CHLE 6,800 229,075 2.3
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Metal Mining (2.3%)
Industrias Penoles S.A. (CP) ................................ MEX 58,600 $ 177,576 1.8
Grupo Mexico S.A. "B" ....................................... MEX 23,100 51,333 0.5
----------
228,909
----------
Banks-Major Regional (2.0%)
Banco Rio de La Plata S.A. - ADR{\/} ........................ ARG 15,100 196,300 2.0
----------
Investment Management (1.8%)
Itausa - Investimentos Itau S.A. - Preferred ................ BRZL 317,325 176,000 1.8
----------
Telecommunications-Long Distance (1.6%)
Embratel Participacoes S.A. - Preferred-/- .................. BRZL 11,800 161,176 1.6
----------
Water Utilities (1.4%)
Companhia de Saneamento Basico do Estado de Sao Paulo -
SABESP ..................................................... BRZL 1,832 138,772 1.4
----------
Retail-Department Stores (1.4%)
Controladora Comercial Mexicana, S.A. de C.V. - UBC[.]-/- ... MEX 176,500 124,798 1.3
El Puerto de Liverpool, S.A. de C.V. ........................ MEX 4,661 6,356 0.1
----------
131,154
----------
Telecommunications-Cellular / Wireless (1.2%)
Telesp Celular S.A.: ........................................ BRZL -- -- 0.6
"B" - Preferred ........................................... -- 663 29,129 --
Common-/- ................................................. -- 1,183 26,693 --
Telepar Celular S.A. "B" - Preferred ........................ BRZL 530 33,340 0.3
Telerj Celular S.A. "B" - Preferred-/- ...................... BRZL 1,370 32,327 0.3
----------
121,489
----------
Land Development (1.1%)
IRSA Inversiones y Representaciones S.A. - GDR{\/} .......... ARG 4,089 113,713 1.1
----------
Textiles-Specialty (1.1%)
Companhia de Tecidos Norte de Minas - Preferred ............. BRZL 1,056 113,642 1.1
----------
Foods (1.0%)
Grupo Industrial Maseca, S.A. de C.V. "B" ................... MEX 128,600 103,919 1.0
----------
Beverages-Non-Alcoholic (0.9%)
Pepsi-Gemex S.A. - GDR{\/} .................................. MEX 11,200 87,500 0.9
----------
Oil & Gas-Refining & Marketing (0.8%)
Companhia Brasileira de Petroleo Ipiranga - Preferred ....... BRZL 14,594 80,944 0.8
----------
Retail-Food Chains (0.8%)
Supermercados Unimarc S.A. - ADR{\/} ........................ CHLE 18,900 79,144 0.8
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Metal Fabricators (0.6%)
Sanluis Corp., S. A. de C.V.-/- ............................. MEX 39,700 $ 57,344 0.6
----------
Lodging Hotels (0.5%)
Grupo Posadas S.A.: ......................................... MEX -- -- 0.5
"A"-/- .................................................... -- 48,400 20,533 --
"L"-/- .................................................... -- 68,100 28,891 --
----------
49,424
----------
Power Producers-Independent (0.2%)
Centrais Geradoras do Sul do Brasil S.A.: ................... BRZL -- -- 0.2
Preferred-/- .............................................. -- 10,158 12,613 --
Common-/- ................................................. -- 8,442 11,042 --
----------
23,655
----------
Airlines (0.2%)
Cintra S.A.-/- .............................................. MEX 35,600 20,353 0.2
---------- -----
TOTAL EQUITY INVESTMENTS (cost $15,614,394) ................... 9,998,145 100.6
---------- -----
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Corporate Bonds (0.0%)
Brazil (0.0%)
Companhia Vale do Rio Doce - Non Convertible (Cost $0) .... BRL 20,000 -- --
---------- -----
TOTAL INVESTMENTS (cost $15,614,394)* ......................... 9,998,145 100.6
Other Assets and Liabilities .................................. (62,888) (0.6)
---------- -----
NET ASSETS .................................................... $9,935,257 100.0
---------- -----
---------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{=} Each unit represents one preferred share of Unibanco and one
preferred "B" share of Unibanco Holdings.
[.] Each unit represents three "B" shares and one "C" share.
* For Federal income tax purposes, cost is $15,773,062 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 231,661
Unrealized depreciation: (6,006,578)
-------------
Net unrealized depreciation: $ (5,774,917)
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
Ltd--Limited
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS{D}
------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ------------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) .................. 10.4 10.4
Brazil (BRZL/BRL) .................... 39.0 39.0
Chile (CHLE/CLP) ..................... 14.1 14.1
Luxembourg (LUX/LUF) ................. 1.2 1.2
Mexico (MEX/MXN) ..................... 31.9 31.9
Panama (PAN/PND) ..................... 0.5 0.5
Peru (PERU/PES) ...................... 0.9 0.9
United States (US/USD) ............... 0.5 (0.6) (0.1)
Venezuela (VENZ/VEB) ................. 2.1 2.1
------ ----- -----
Total ............................... 100.6 (0.6) 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $9,935,257.
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (18.7%)
UBS A.G. ................................................... SWTZ 5,386 $ 1,655,179 3.0
BANKS-MONEY CENTER
First Tennessee National Corp. ............................. US 33,400 1,271,288 2.3
BANKS-REGIONAL
American General Corp. ..................................... US 11,950 932,100 1.7
INSURANCE - LIFE
ING Groep N.V. ............................................. NETH 14,138 861,890 1.6
OTHER FINANCIAL
First Union Corp. .......................................... US 14,000 851,375 1.5
BANKS-REGIONAL
Royal & Sun Alliance Insurance Group PLC ................... UK 98,531 803,596 1.5
INSURANCE - MULTI-LINE
Commonwealth Bank of Australia ............................. AUSL 50,000 709,135 1.3
BANKS-MONEY CENTER
National Australia Bank Ltd. ............................... AUSL 45,000 677,816 1.2
BANKS-MONEY CENTER
CGU PLC .................................................... UK 37,916 592,948 1.1
INSURANCE - MULTI-LINE
Lloyds TSB Group PLC ....................................... UK 41,571 590,692 1.1
BANKS-MONEY CENTER
National Westminister Bank PLC ............................. UK 27,000 520,058 0.9
BANKS-MONEY CENTER
Credit Suisse Group ........................................ SWTZ 3,320 519,808 0.9
BANKS-MONEY CENTER
IKB Deutsche Industriebank AG .............................. GER 19,890 410,595 0.6
BANKS-REGIONAL
Fortis AG: ................................................. BELG -- -- --
OTHER FINANCIAL
CVG-/- ................................................... -- 1,932 8,667 --
Strip VVPR-/- ............................................ -- 1,932 112 --
------------
10,405,259
------------
Consumer Non-Durables (17.1%)
Cadbury Schweppes PLC ...................................... UK 92,255 1,571,515 2.8
FOODS
Bestfoods .................................................. US 18,800 1,001,100 1.8
FOOD
Avon Products, Inc. ........................................ US 22,200 982,350 1.8
PERSONAL CARE/COSMETICS
Brown-Forman Corp. "B" ..................................... US 12,855 972,963 1.7
BEVERAGES - ALCOHOLIC
Philip Morris Cos., Inc. ................................... US 16,450 880,075 1.6
TOBACCO AND FOOD
Anheuser-Busch Cos., Inc. .................................. US 12,582 825,694 1.5
BEVERAGES - ALCOHOLIC
Pernod Ricard .............................................. FR 12,570 816,336 1.5
BEVERAGES - ALCOHOLIC
Diageo PLC ................................................. UK 69,151 786,067 1.4
BEVERAGES - ALCOHOLIC
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Reckitt & Colman PLC ....................................... UK 53,816 $ 711,917 1.3
HOUSEHOLD PRODUCTS
Foster's Brewing Group Ltd. ................................ AUSL 230,000 622,464 1.1
BEVERAGES - ALCOHOLIC
Kellogg Co. ................................................ US 9,634 328,760 0.6
FOOD
------------
9,499,241
------------
Energy (15.0%)
Texas Utilities Co. ........................................ US 37,000 1,727,438 3.1
ELECTRIC & GAS UTILITIES
Mobil Corp. ................................................ US 19,800 1,725,075 3.1
ENERGY SOURCES
Royal Dutch Petroleum Co. .................................. NETH 24,160 1,202,726 2.2
OIL
Southern Co. ............................................... US 40,000 1,162,500 2.1
ELECTRIC & GAS UTILITIES
Electrabel S.A. ............................................ BELG 2,280 996,469 1.8
ELECTRIC & GAS UTILITIES
Reunies Electrobel & Tractebel S.A. ........................ BELG 3,815 736,499 1.3
ELECTRIC COMPANIES
RWE AG ..................................................... GER 8,170 447,379 0.8
ENERGY EQUIPMENT & SERVICES
Elf Aquitaine .............................................. FR 2,980 344,410 0.6
OIL
------------
8,342,496
------------
Services (12.4%)
Bell Atlantic Corp. ........................................ US 16,000 909,000 1.6
TELEPHONE - REGIONAL/LOCAL
McGraw-Hill, Inc. .......................................... US 8,880 904,650 1.6
BROADCASTING & PUBLISHING
Deutsche Telekom A.G. ...................................... GER 25,000 822,132 1.5
TELEPHONE NETWORKS
Telecom Corporation of New Zealand Ltd. .................... NZ 173,200 751,315 1.4
TELEPHONE NETWORKS
Koninklijke KPN N.V. ....................................... NETH 15,005 750,969 1.3
TELEPHONE NETWORKS
Dun & Bradstreet Corp. ..................................... US 18,800 593,375 1.1
BROADCASTING & PUBLISHING
Swisscom AG-/- ............................................. SWTZ 1,414 592,084 1.1
TELEPHONE NETWORKS
EMI Group PLC .............................................. UK 87,790 586,511 1.1
LEISURE & TOURISM
Telecom Italia S.p.A. ...................................... ITL 60,000 511,890 0.9
TELEPHONE NETWORKS
TABCORP Holdings Ltd. ...................................... AUSL 46,600 285,332 0.5
LEISURE & TOURISM
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
TNT Post Group N.V.-/- ..................................... NETH 5,915 $ 190,532 0.3
TRNASPORTATION - SHIPPING
------------
6,897,790
------------
Health Care (5.6%)
Bristol-Myers Squibb Co. ................................... US 18,450 2,468,841 4.5
PHARMACEUTICALS
American Home Products Corp. ............................... US 11,000 619,438 1.1
PHARMACEUTICALS
------------
3,088,279
------------ -----
TOTAL EQUITY INVESTMENTS (cost $27,292,544) .................. 38,233,065 68.8
------------ -----
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (26.6%)
Germany (9.0%)
Deutschland Republic:
6.25% due 04/26/06 ..................................... DEM 3,120,000 2,174,532 3.9
6.25% due 01/04/24 ..................................... DEM 2,450,000 1,770,966 3.2
8.25% due 09/20/01 ..................................... DEM 1,600,000 1,081,173 1.9
United Kingdom (3.4%)
United Kingdom Treasury, 8.75% due 8/25/17 ............... GBP 730,000 1,872,987 3.4
United States (14.2%)
United States Treasury:
5.5% due 02/15/08 ...................................... USD 3,245,000 3,437,396 6.2
6% due 02/15/26 ........................................ USD 2,169,000 2,366,509 4.3
5.625% due 02/28/01 .................................... USD 2,040,000 2,084,085 3.7
------------
Total Government & Government Agency Obligations (cost
$13,997,283) ................................................ 14,787,648
------------
Corporate Bonds (0.0%)
Germany (0.0%)
IKB Deutshe Industriebank AG (Banks-Major Regional) ...... DEM 1,500 1,026 --
------------
Total Corporate Bonds (cost $869) ............................ 1,026
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $13,998,152) ............ 14,788,674 26.6
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
Societe Generale Banque Put Warrants due 11/30/99 Tractebel
(cost $0) ................................................. BEL 763 110 --
------------ -----
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated December 31,1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $1,700,000 U.S. Treasury Bonds, 6.25% due
8/15/23 (market value of collateral is $1,938,530,
including accrued interest). (cost $1,896,000) ........... $ 1,896,000 3.4
------------ -----
TOTAL INVESTMENTS (cost $43,186,696) * ...................... 54,917,849 98.8
Other Assets and Liabilities ................................. 662,412 1.2
------------ -----
NET ASSETS ................................................... $ 55,580,261 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security
* For Federal income tax purposes, cost is $43,209,387 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 12,087,442
Unrealized depreciation: (378,980)
-------------
Net unrealized appreciation: $ 11,708,462
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 4.1 4.1
Belgium (BELG/BEL) ................... 3.1 3.1
France (FR/FRF) ...................... 2.1 2.1
Germany (GER/DEM) .................... 2.9 9.0 11.9
Italy (ITLY/ITL) ..................... 0.9 0.9
Netherlands (NETH/NLG) ............... 5.4 5.4
New Zealand (NZ/NZD) ................. 1.4 1.4
Switzerland (SWTZ/CHF) ............... 5.0 5.0
United Kingdom (UK/GBP) .............. 11.2 3.4 14.6
United States (US/USD) ............... 32.7 14.2 4.6 51.5
------ ----- ----- -----
Total ............................... 68.8 26.6 4.6 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $55,580,261.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACT OUTSTANDING
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET VALUE CONTRACT DELIVERY UNREALIZED
CONTRACT TO SELL: (U.S. DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
British Pounds.......................... 3,646,456 1.6588 1/29/99 $ 2,904
-------------- --------------
Total Contract to Sell (Receivable
amount $3,649,360)................... 3,646,456 2,904
-------------- --------------
THE VALUE OF CONTRACT TO SELL AS
PERCENTAGE OF NET ASSETS IS 6.56%.
Total Open Forward Foreign Currency
Contract............................. $ 2,904
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Telephone (31.9%)
SBC Communications ........................................ US 41,700 $ 2,236,162 3.2
Cable & Wireless PLC -ADR{\/} ............................. UK 60,000 2,205,000 3.2
Telecom Italia S.p.A. ..................................... ITLY 350,200 2,203,715 3.2
NTL Inc.{\/}-/- ........................................... UK 33,132 1,869,888 2.7
GTE Corp. ................................................. US 27,300 1,841,044 2.7
Vodafone Group PLC ........................................ UK 80,900 1,312,210 1.9
Orange PLC-/- ............................................. UK 96,200 1,116,725 1.6
Swisscom AG-/- ............................................ SWTZ 2,593 1,085,767 1.5
Bell Atlantic Corp. ....................................... US 15,200 863,550 1.2
Telefonica de Espana ...................................... SPN 17,750 788,362 1.1
BCE Inc. .................................................. CAN 19,034 719,685 1.0
Carso Global Telecom 'A1'-/- .............................. MEX 185,900 627,177 0.9
SPT Telecom-/- ............................................ CZCH 40,704 622,604 0.9
BellSouth Corp. ........................................... US 12,000 598,500 0.9
Magyar Tavkozlesi Rt. -ADR{\/} ............................ HGRY 100,000 571,999 0.8
France Telecom S.A.-/- .................................... FR 7,175 569,943 0.8
ICG Communications, Inc.-/- ............................... US 24,900 535,350 0.8
Deutsche Telekom AG ....................................... GER 16,000 526,164 0.8
SmarTone Telecommunications Holdings Ltd. ................. HK 149,500 414,897 0.6
Orckit Communications Ltd.{\/}-/- ......................... ISRL 19,200 310,800 0.4
Telecom Corporation of New Zealand Ltd. ................... NZ 133,500 291,306 0.4
Nippon Telegraph & Telephone Corp. ........................ JPN 350 270,136 0.4
NetCom ASA-/- ............................................. NOR 7,250 188,951 0.3
MetroNet Communications Corp. "B"{\/}-/- .................. CAN 5,500 184,250 0.3
Energis PLC-/- ............................................ UK 5,350 119,141 0.2
Telebras Receipts-/- ...................................... BRZL 1,240 55,431 0.1
------------
22,128,757
------------
Communications Equipment (12.9%)
Nokia Oyj A.B. "A"{\/} .................................... FIN 23,700 2,854,369 4.1
ECI Telecommunications Ltd.{\/} ........................... ISRL 47,700 1,699,313 2.4
Lucent Technologies, Inc. ................................. US 9,800 1,078,000 1.6
Tellabs, Inc.-/- .......................................... US 14,000 959,875 1.4
Tekelec-/- ................................................ US 45,800 758,563 1.1
British Telecom PLC ....................................... UK 42,700 642,571 0.9
General Instrument Corp.-/- ............................... US 17,900 607,481 0.9
Teleglobe, Inc. ........................................... CAN 9,800 352,288 0.5
------------
8,952,460
------------
Telecommunications (Cellular/Wireless) (11.0%)
Millicom International Cellular S.A.{\/}-/- ............... LUX 45,000 1,569,375 2.3
AirTouch Communications, Inc.-/- .......................... US 19,100 1,377,588 2.0
NTT Mobile Communications-/- .............................. JPN 180 740,839 1.1
Sprint Corp.-/- ........................................... US 26,100 603,563 0.9
Helsingin Puhelin Oyj (Helsinki Telphone Corp.) ........... FIN 8,750 520,209 0.7
Nextel Communications, Inc. "A"-/- ........................ US 21,800 515,025 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Telecommunications (Continued)
Western Wireless Corp. "A"-/- ............................. US 22,500 $ 495,000 0.7
Grupo Iusacell S.A. "L" -ADR{\/}-/- ....................... MEX 64,700 460,988 0.7
Hellenic Telecommunication Organization S.A. .............. GREC 14,761 393,127 0.6
ICO Global Communications (Holdings) Ltd.-/- .............. US 29,800 324,075 0.5
Mitec Telecom, Inc.-/- .................................... CAN 43,900 172,157 0.2
STET Hellas Telecommunications S.A. -ADR{\/}-/- ........... GREC 4,740 153,458 0.2
Microcell Telecommunications, Inc. "B"{\/}-/- ............. CAN 24,000 142,500 0.2
Sonera Group Oyj-/- ....................................... FIN 5,000 88,295 0.1
Panafon S.A.-/- ........................................... GREC 2,700 72,391 0.1
Clearnet Communications, Inc. "A"{\/}-/- .................. CAN 3,800 30,875 --
------------
7,659,465
------------
Telecommunications (Long Distance) (9.0%)
MCI WorldCom, Inc.-/- ..................................... US 30,936 2,219,658 3.2
Tel-Save Holdings, Inc.-/- ................................ US 85,000 1,423,750 2.0
WinStar Communications, Inc.-/- ........................... US 24,600 959,400 1.4
Koninklijke KPN N.V. ...................................... NETH 15,000 750,718 1.1
Esat Telecom Group PLC-ADR{\/}-/- ......................... IRE 14,700 565,950 0.8
Global Crossing Ltd.-/- ................................... BDA 7,500 338,438 0.5
------------
6,257,914
------------
Broadcasting (8.4%)
Tele-Communications, Inc. "A"-/- .......................... US 58,700 3,246,844 4.7
Comcast Corp. "A" ......................................... US 22,000 1,291,125 1.9
Univision Communications Inc.-/- .......................... US 18,000 651,375 0.9
Infinity Broadcasting Corp. "A"-/- ........................ US 16,000 438,000 0.6
United International Holdings, Inc.-/- .................... US 11,800 227,150 0.3
------------
5,854,494
------------
Computer Software & Services (3.7%)
America Online, Inc.-/- ................................... US 15,900 2,544,000 3.7
------------
Machinery (Diversified) (3.1%)
Mannesmann AG ............................................. GER 19,000 2,177,749 3.1
------------
Manufacturing (Diversified) (2.3%)
Vivendi ................................................... FR 6,100 1,582,431 2.3
------------
Entertainment (1.9%)
Viacom, Inc. "B"-/- ....................................... US 9,600 710,400 1.0
Time Warner Inc. .......................................... US 10,000 620,625 0.9
------------
1,331,025
------------
Computers (Networking) (1.7%)
3Com Corp.-/- ............................................. US 15,000 672,187 1.0
Cisco Systems, Inc.-/- .................................... US 3,800 352,687 0.5
</TABLE>
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Computers (Continued)
Equant N.V.{\/}-/- ........................................ NETH 2,300 $ 155,969 0.2
------------
1,180,843
------------
Electrical Equipment (1.6%)
Uniphase Corp.-/- ......................................... US 15,700 1,089,188 1.6
------------
Services (Commercial & Consumer) (0.8%)
Securicor PLC ............................................. UK 69,057 578,420 0.8
------------
Computer Hardware (0.6%)
NEC Corp. ................................................. JPN 45,000 414,232 0.6
------------
Computers (Peripherals) (0.3%)
Performance Technologies, Inc.-/- ......................... US 15,000 196,875 0.3
------------
Personal Care (0.1%)
Globenet Communications Group Ltd. -ADR{\/}-/- ............ BDA 33,200 99,600 0.1
------------
Telecommunications (0.1%)
ING Barings Russian Regional Telecommunications Basket
Bridge Certificates{/\}-/- ............................... RUS 66 45,139 0.1
------------ -----
TOTAL EQUITY INVESTMENTS (cost $46,048,018) ................. 62,092,592 89.4
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Telefonica de Espana Rights, expire 1/30/99 ............... SPN 17,750 15,742 --
------------ -----
TOTAL RIGHTS (cost $0) ...................................... 15,742 --
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT
Dated December 31, 1998, with State Street Bank & Trust
Co., due January 4, 1999, for an effective yield of 4.50%,
collateralized by $6,665,000 of U.S. Treasury Bonds, 6.25%
due 8/15/23 (market value of collateral is $7,600,179,
including accrued interest). (cost $7,450,000) ........... $ 7,450,000 10.7
------------ -----
TOTAL INVESTMENTS (cost $53,498,018) * ...................... 69,558,334 100.1
Other Assets and Liabilites ................................. (98,999) (0.1)
------------ -----
NET ASSETS .................................................. $ 69,459,335 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non income producing security
{\/} U.S. currency denominated
{/\} Issued by ING Barings, the value of which is linked to the
underlying value of a basket of shares issued by Russian regional
telephone companies.
* For Federal income tax purposes, cost is $53,498,031 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 19,757,367
Unrealized depreciation: (3,697,064)
-------------
Net unrealized appreciation: $ 16,060,303
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS{D}
-----------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ------------- ----------
<S> <C> <C> <C>
Bermuda (BDA/BEM) .................... 0.6 0.6
Brazil (BRZL/BRL) .................... 0.1 0.1
Canada (CAN/CAD) ..................... 2.2 2.2
Czech Republic (CZCH/CSK) ............ 0.9 0.9
Spain (ESP/ESP) ...................... 1.1 1.1
Finland (FIM/FIM) .................... 4.9 4.9
France (FR/FRF) ...................... 3.1 3.1
Germany (GER/DEM) .................... 3.9 3.9
Greece (GREC/GRD) .................... 0.9 0.9
Hong Kong (HK/HKD) ................... 0.6 0.6
Hungary (HGRY/HUF) ................... 0.8 0.8
Ireland (IRE/IEP) .................... 0.8 0.8
Israel (ISRL/ILS) .................... 2.8 2.8
Italy (ITLY/ITL) ..................... 3.2 3.2
Japan (JPN/JPY) ...................... 2.1 2.1
Luxembourg (LUX/LUF) ................. 2.3 2.3
Mexico (MEX/MXN) ..................... 1.6 1.6
Netherlands (NETH/NLG) ............... 1.3 1.3
New Zealand (NZ/NZD) ................. 0.4 0.4
Norway (NOR/NOK) ..................... 0.3 0.3
Russia (RUS/SUR) ..................... 0.1 0.1
Switzerland (SWTZ/CHF) ............... 1.5 1.5
United Kingdom (UK/GBP) .............. 11.3 11.3
United States (US/USD) ............... 42.6 10.6 53.2
------ ----- ----------
Total ............................... 89.4 10.6 100.0
------ ----- ----------
------ ----- ----------
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $69,459,335.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
DECEMBER 31, 1998
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) CONTRACT PRICE DATE (DEPRECIATION)
- ---------------------------------------- ---------------- -------------- -------- ---------------
<S> <C> <C> <C> <C>
British Pounds.......................... 661,529 1.6557 2/26/99 $ 750
British Pounds.......................... 1,984,591 1.6546 2/26/99 929
Italian Liras........................... 1,090,295 1648.072 1/21/99 1,890
Japanese Yen............................ 712,023 120.11 2/10/99 (45,966)
---------------- ---------------
Total Contracts to Sell (Receivable
amount $4,406,041)................... 4,448,438 (42,397)
---------------- ---------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 6.40%.
Total Open Forward Foreign Currency
Contracts............................ $ (42,397)
---------------
---------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Services (21.4%)
Telecomunicacoes Brasileiras S.A. (Telebras) Preferred -
ADR-/- {\/} ................................................ BRZL 2,712 $ 197,129 3.5
TELEPHONE NETWORKS
Hellenic Telecommunication Organization S.A. (OTE) .......... GREC 4,977 132,552 2.3
TELEPHONE NETWORKS
Magyar Tavkozlesi Rt. - ADR{\/} ............................. HGRY 4,440 132,368 2.3
TELEPHONE NETWORKS
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ............. MEX 1,818 88,514 1.6
TELEPHONE NETWORKS
STET Hellas Telecommunications S.A. - ADR-/- {\/} ........... GREC 2,695 87,251 1.5
WIRELESS COMMUNICATIONS
Telekomunik Indonesia - ADR ................................. INDO 12,000 78,000 1.4
TELEPHONE NETWORKS
Cifra, S.A. de C.V. " V"-/- ................................. MEX 55,795 67,630 1.2
RETAILERS-OTHER
Telefonica del Peru S.A. - ADR{\/} .......................... PERU 5,200 65,975 1.2
TELEPHONE NETWORKS
Bezeq Israeli Telecommunication Corporation Ltd.-/- ......... ISRL 19,800 61,945 1.1
TELEPHONE NETWORKS
Telecomunicacoes de Sao Paulo S.A. (TELESP): ................ BRZL -- -- 1.1
TELEPHONE - REGIONAL/LOCAL
Common-/- ................................................. -- 688,200 59,249 --
Preferred ................................................. -- 12,040 1,642 --
Companhia Brasileira de Distribuicao Grupo Pao de Acucar -
ADR{\/} .................................................... BRZL 3,600 55,800 1.0
RETAILERS-FOOD
Companhia de Saneamento Basico do Estado de Sao Paulo -
SABESP ..................................................... BRZL 467,245 35,391 0.6
BUSINESS & PUBLIC SERVICES
Telefonica de Argentina S.A. - ADR{\/} ...................... ARG 1,263 35,285 0.6
TELEPHONE NETWORKS
Blue Square Chain Investments & Properties Ltd.-/- .......... ISRL 2,773 33,326 0.6
RETAILERS-FOOD
Blue Square-Israel Ltd. - ADR ............................... US 3,000 31,125 0.6
RETAILERS-FOOD
Nortel Inversora S.A. - ADR{\/} ............................. ARG 1,900 30,400 0.5
TELEPHONE NETWORKS
Panafon Hellenic Telecom S.A.-/- ............................ GREC 646 17,320 0.3
WIRELESS COMMUNICATIONS
----------
1,210,902
----------
Finance (14.8%)
Alpha Credit Bank ........................................... GREC 1,200 125,349 2.2
BANKS-REGIONAL
National Bank of Greece S.A. ................................ GREC 411 92,564 1.6
BANKS-MONEY CENTER
Liberty Life Association of Africa Ltd. ..................... SAFR 5,960 82,025 1.5
INSURANCE-LIFE
Sanlam Ltd. ................................................. SAFR 62,420 62,043 1.1
INSURANCE - MULTI-LINE
MISR International Bank - Reg S GDR{c} {\/} ................. EGPT 6,200 58,590 1.0
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Credicorp Ltd. - ADR{\/} .................................... PERU 6,180 $ 55,620 1.0
BANKS-MONEY CENTER
Uniao de Bancos Brasileiros S.A. (Unibanco): ................ BRZL -- -- 1.0
BANKS-MONEY CENTER
GDR{\/} ................................................... -- 3,840 55,440 --
Units{=} .................................................. -- 264 9 --
Turkiye Is Bankasi (Isbank) "C" ............................. TRKY 2,109,100 54,876 1.0
BANKS-MONEY CENTER
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ....... MEX 41,000 53,838 1.0
BANKS-MONEY CENTER
Yapi ve Kredi Bankasi AS .................................... TRKY 4,113,906 47,645 0.8
BANKS-REGIONAL
BIG Bank Gdanski S.A. - Reg S GDR{c} {\/} ................... POL 3,000 40,650 0.7
BANKS-REGIONAL
Bank Leumi Le - Israel ...................................... ISRL 26,626 37,706 0.7
BANKS-MONEY CENTER
Banco de Galicia y Buenos Aires, S.A. de C.V. - ADR{\/} ..... ARG 2,138 37,682 0.7
BANKS-MONEY CENTER
KREDYT BANK S.A. - Reg S GDR-/- {c} {\/} .................... POL 1,634 26,512 0.5
BANKS-MONEY CENTER
----------
830,549
----------
Energy (14.2%)
MOL Magyar Olaj-es Gazipari RT - Reg S GDR{c} {\/} .......... HGRY 4,880 134,810 2.4
GAS PRODUCTION & DISTRIBUTION
Petroleo Brasileiro S.A. (Petrobras) Preferred .............. BRZL 1,111,780 126,088 2.2
OIL
Companhia Energetica de Minas Gerais (CEMIG) - ADR{\/} ...... BRZL 5,861 110,626 2.0
ELECTRICAL & GAS UTILITIES
Enersis S.A. - ADR{\/} ...................................... CHLE 2,963 76,482 1.4
ELECTRICAL & GAS UTILITIES
Companhia Paranaense de Energia-Copel - ADR{\/} ............. BRZL 9,900 70,538 1.3
ELECTRICAL & GAS UTILITIES
YPF S.A. - ADR{\/} .......................................... ARG 2,500 69,844 1.2
ENERGY SOURCES
Huaneng Power International, Inc. - ADR-/- {\/} ............. CHNA 3,476 50,402 0.9
ELECTRICAL & GAS UTILITIES
Eletropaulo Metropolitana Preferred ......................... BRZL 1,064,101 49,329 0.9
ELECTRICAL & GAS UTILITIES
Surgutneftegaz - ADR{\/} .................................... RUS 13,910 46,946 0.8
OIL
Companhia de Eletricidade do Estado da Bahia - COELBA ....... BRZL 1,000,000 33,932 0.6
ELECTRICAL & GAS UTILITIES
Centrais Electricas de Santa Catarina S.A. .................. BRZL 60,000 26,821 0.5
ELECTRICAL & GAS UTILITIES
Pakistan State Oil Co., Ltd. ................................ PAK 880 1,387 --
OIL
----------
797,205
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (11.3%)
Hindustan Lever Ltd. ........................................ IND 3,800 $ 149,017 2.6
PERSONAL CARE/COSMETICS
ITC Ltd. .................................................... IND 6,500 114,922 2.0
TOBACCO
South African Breweries Ltd. ................................ SAFR 6,111 103,001 1.8
BEVERAGES - ALCOHOLIC
Fomento Economico Mexicano, S.A. de C.V. - ADR{\/} .......... MEX 3,567 94,971 1.7
BEVERAGES - NON-ALCOHOLIC
Panamerican Beverages, Inc. "A"{\/} ......................... MEX 3,000 65,438 1.2
BEVERAGES - NON-ALCOHOLIC
A-Ahram Beverages Co. S.A.E. - 144A GDR{.}{\/} .............. EGPT 1,400 40,425 0.7
BEVERAGES - ALCOHOLIC
Companhia de Tecidos Norte de Minas Preferred ............... BRZL 301,000 32,392 0.6
TEXTILES & APPAREL
Oriental Weavers "C" ........................................ EGPT 1,350 30,136 0.5
TEXTILES & APPAREL
Zaklady Piwowarskie w Zywcu S.A. (Zywiec) ................... POL 103 12,342 0.2
BEVERAGES - ALCOHOLIC
Truworths International Ltd. ................................ SAFR 3,872 2,171 --
TEXTILES & APPAREL
----------
644,815
----------
Materials/Basic Industry (9.1%)
Suez Cement Co. - Reg S GDR{c} {\/} ......................... EGPT 5,363 76,691 1.4
CEMENT
Pohang Iron & Steel Co., Ltd. - ADR{\/} ..................... KOR 4,178 70,504 1.3
METALS - STEEL
Tubos de Acero de Mexico S.A. - ADR-/- {\/} ................. MEX 10,000 64,375 1.1
METALS - STEEL
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ........... CHLE 1,860 62,659 1.1
CHEMICALS
Anglo American Platinum Corporation Ltd. .................... SAFR 4,500 61,702 1.1
METALS - NON-FERROUS
Makhteshim-Agan Industries Ltd.-/- .......................... ISRL 24,927 54,031 1.0
CHEMICALS
Cemex "CPO", S.A. de C.V. ................................... MEX 23,247 50,134 0.9
CEMENT
Apasco, S.A. de C.V. ........................................ MEX 9,831 34,657 0.6
CEMENT
Hindalco Industries Ltd.: ................................... IND -- -- 0.6
METALS - NON-FERROUS
GDR{\/} ................................................... -- 2,400 28,140 --
Common .................................................... -- 400 4,833 --
Engro Chemicals Pakistan Ltd. ............................... PAK 1,470 2,660 --
CHEMICALS
----------
510,386
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F25
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Multi-Industry/Miscellaneous (8.3%)
GT Taiwan Fund-/- +X+ {\/} .................................. TWN 27,191 $ 277,083 4.9
COUNTRY FUNDS
Grupo Carso, S.A. de C.V. "A1" .............................. MEX 25,500 86,545 1.5
MULTI-INDUSTRY
Rembrandt Group Ltd. ........................................ SAFR 10,917 66,776 1.2
CONGLOMERATE
Haci Omer Sabanci Holding AS ................................ TRKY 2,713,497 41,758 0.7
CONGLOMERATE
----------
472,162
----------
Capital Goods (4.4%)
Heliopolis Housing .......................................... EGPT 1,271 100,067 1.8
CONSTRUCTION
NASR (El) City Company For Housing & Construction ........... EGPT 1,950 58,952 1.0
CONSTRUCTION
Corporacion GEO, S.A. de C.V. "B"-/- ........................ MEX 14,200 39,444 0.7
CONSTRUCTION
ARA, S.A. de C.V.-/- ........................................ MEX 15,200 38,384 0.7
CONSTRUCTION
Arabian International Construction-/- ....................... EGPT 1,571 10,612 0.2
CONSTRUCTION
----------
247,459
----------
Health Care (1.6%)
Teva Pharmaceutical Industries Ltd. ......................... ISRL 1,800 73,698 1.3
PHARMACEUTICALS
Ranbaxy Laboratories Ltd. ................................... IND 3,000 18,953 0.3
MEDICAL TECHNOLOGY & SUPPLIES
----------
92,651
----------
Technology (1.0%)
Telekomunikacja Polska S.A. - GDR ........................... POL 11,540 58,854 1.0
----------
SOFTWARE
Consumer Durables (0.3%)
Qingling Motors Co., Ltd.{*} ................................ CHNA 110,000 19,310 0.3
AUTOMOBILES
---------- -----
TOTAL EQUITY INVESTMENTS (cost $6,111,420) .................... 4,884,293 86.4
---------- -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Merrill Lynch - Kospi 200 Call Warrants, due 9/9/99.
Performance linked to equity securities. Redemption amount
100% of the final closing price of the Korean Kospi 200
Index converted to the prevailing foreign exchange rate.
(cost $163,000) ............................................ US 49,997 264,124 4.7
---------- -----
INVESTMENT MANAGEMENT
</TABLE>
The accompanying notes are an integral part of the financial statements.
F26
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Companhia de Saneamento Basico do Estado de Sao Paulo -
SABESP Rights, expire 1/4/99 (cost $0) ..................... BRZL 3,019 -- --
---------- -----
BUSINESS & PUBLIC SERVICES
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $490,000 U.S. Treasury Notes, 5.625% due
11/30/99 (market value of collateral is $496,635 including
accrued interest). (cost $482,000) ......................... $ 482,000 8.5
---------- -----
TOTAL INVESTMENTS (cost $6,756,420) * ........................ 5,630,417 99.6
Other Assets and Liabilities .................................. 20,993 0.4
---------- -----
NET ASSETS .................................................... $5,651,410 100.0
---------- -----
---------- -----
</TABLE>
- --------------
{*} Denominated in Hong Kong Dollars.
-/- Non-income producing security.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
{\/} U.S. currency denominated.
{=} Each unit represents one preferred share of Unibanco and one
preferred 'B' share of Unibanco Holdings.
+X+ The GT Global Variable Emerging Markets Fund (the 'Fund') has
invested in the GT Global Taiwan Fund, a fund managed by INVESCO
Asset Management Ltd. which is an affiliate of the Fund's manager,
A I M Advisors, Inc.
* For Federal income tax purposes, cost is $6,936,812 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 381,966
Unrealized depreciation: (1,688,361)
-------------
Net unrealized depreciation: $ (1,306,395)
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F27
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Argentina (ARG/ARS) .................. 3.0 3.0
Brazil (BRZL/BRL) .................... 15.3 15.3
Chile (CHLE/CLP) ..................... 2.5 2.5
China (CHNA/RMB) ..................... 1.2 1.2
Egypt (EGPT) ......................... 6.6 6.6
Greece (GREC/GRD) .................... 7.9 7.9
Hungary (HGRY/HUF) ................... 4.7 4.7
India (IND/INR) ...................... 5.5 5.5
Indonesia (INDO/IDR) ................. 1.4 1.4
Israel (ISRL/ILS) .................... 4.7 4.7
Korea (KOR/KRW) ...................... 1.3 1.3
Mexico (MEX/MXN) ..................... 12.2 12.2
Peru (PERU/PES) ...................... 2.2 2.2
Poland (POL/PLZ) ..................... 2.4 2.4
Russia (RUS/SUR) ..................... 0.8 0.8
South Africa (SAFR/ZAR) .............. 6.7 6.7
Taiwan (TWN/TWD) ..................... 4.9 4.9
Turkey (TRKY/TRL) .................... 2.5 2.5
United States (US/USD) ............... 0.6 4.7 8.9 14.2
------ ----- ----- -----
Total ............................... 86.4 4.7 8.9 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $5,651,410.
The accompanying notes are an integral part of the financial statements.
F28
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Electrical & Gas Utilities (18.5%)
Endesa S. A. - ADR{\/} ...................................... SPN 6,700 $ 180,900 2.9
National Grid Group PLC ..................................... UK 20,000 159,460 2.5
Houston Industries, Inc. .................................... US 4,600 147,776 2.3
Dominion Resources, Inc. .................................... US 3,100 144,926 2.3
AES Corp.-/- ................................................ US 2,785 131,939 2.1
BG PLC ...................................................... UK 20,000 126,056 2.0
Edison S.p.A.-/- ............................................ ITLY 7,100 83,622 1.3
Interstate Energy Corp. ..................................... US 2,246 72,434 1.1
Pinnacle West Capital Corp. ................................. US 1,646 69,750 1.1
EVN Energie-Versorgung Niederoesterreich AG ................. ASTRI 400 56,640 0.9
----------
1,173,503
----------
Electric Companies (10.1%)
Montana Power Co. ........................................... US 1,600 90,500 1.4
Texas Utilities Co. ......................................... US 1,800 84,038 1.3
Iberdrola S.A. .............................................. SPN 4,000 74,752 1.2
FPL Group, Inc. ............................................. US 1,200 73,950 1.2
CMS Energy Corp. ............................................ US 1,300 62,969 1.0
Public Service Enterprise Group Inc. ........................ US 1,500 60,000 1.0
GPU, Inc. ................................................... US 1,300 57,444 0.9
Union Electrica Fenosa, S.A. ................................ SPN 3,000 51,840 0.8
Scottish Power PLC .......................................... UK 4,450 45,667 0.7
Korea Electric Power Corp. - ADR{\/} ........................ KOR 2,000 31,376 0.5
Fortum Corp.-/- ............................................. FIN 1,450 8,820 0.1
----------
641,356
----------
Aerospace/Defense (6.7%)
United Technologies Corp. ................................... US 1,400 152,250 2.4
General Electric Co. PLC .................................... UK 12,740 114,861 1.8
Gulfstream Aerospace Corp.-/- ............................... US 1,342 71,462 1.1
British Aerospace PLC ....................................... UK 6,500 55,038 0.9
General Dynamics Corp. ...................................... US 500 29,312 0.5
----------
422,923
----------
Telephone - Regional/Local (4.3%)
SBC Communications, Inc. .................................... US 3,000 160,875 2.5
Bell Atlantic Corp. ......................................... US 2,000 113,625 1.8
----------
274,500
----------
Manufacturing (Diversified) (3.9%)
Suez Lyonnaise des Eaux ..................................... FR 350 71,885 1.2
MAN A.G. .................................................... GER 200 58,810 0.9
Viag A.G. ................................................... GER 100 58,630 0.9
Hanson PLC - ADR{\/} ........................................ UK 1,500 58,500 0.9
----------
247,825
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Wireless Communications (3.7%)
Mannesmann A.G. ............................................. GER 1,300 $ 149,003 2.3
Vodafone Group PLC .......................................... UK 4,700 76,234 1.2
China Telecom Ltd.-/- ....................................... HK 8,000 13,837 0.2
----------
239,074
----------
Telcom Equipment (3.3%)
Nokia Oyj A.B. "A" - ADR{\/} ................................ FIN 1,000 120,437 1.9
Tekelec-/- .................................................. US 3,000 49,687 0.8
Tellabs, Inc.-/- ............................................ US 552 37,846 0.6
----------
207,970
----------
Broadcasting (Television Radio & Television) (3.1%)
Tele-Communications, Inc. "A"-/- ............................ US 3,500 193,593 3.1
----------
Consumer Services (3.0%)
Vivendi ..................................................... FR 740 191,968 3.0
----------
Airlines (3.0%)
COMAIR Holdings Inc. ........................................ US 3,200 108,000 1.7
Deutsche Lufthansa A.G. ..................................... GER 2,300 50,792 0.8
AMR Corp.-/- ................................................ US 500 29,687 0.5
----------
188,479
----------
Cement (2.7%)
Lafarge S.A. ................................................ FR 750 71,249 1.1
La Cementos Nacional, C.A. - 144A GDR{\/}-/-{c} ............. ECDR 543 61,359 1.0
Suez Cement Co - Reg S GDR{\/}{.} ........................... EGPT 2,600 37,050 0.6
----------
169,658
----------
Telephone - Long Distance (2.3%)
MCI WorldCom, Inc.-/- ....................................... US 2,000 143,500 2.3
----------
Gas Production & Distribution (2.1%)
Enron Corp. ................................................. US 2,332 133,069 2.1
----------
Telephone (2.1%)
Swisscom A. G.-/- ........................................... SWTZ 236 98,820 1.6
Tele Danmark A.S. - ADR{\/} ................................. DEN 500 33,937 0.5
----------
132,757
----------
Networking (2.0%)
Cisco Systems, Inc.-/- ...................................... US 1,394 129,380 2.0
----------
Computers Networking (2.0%)
Equant N.V.-/- .............................................. NETH 1,880 127,489 2.0
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Housing (1.8%)
Kaufman and Broad Home Corp. ................................ US 4,000 $ 115,000 1.8
----------
Shipping (1.8%)
Railtrack Group PLC ......................................... UK 2,200 57,438 0.9
Stagecoach Holdings PLC ..................................... UK 13,800 54,870 0.9
----------
112,308
----------
Construction (Cement & Aggregate) (1.7%)
CRH PLC ..................................................... UK 4,000 67,805 1.0
Southdown, Inc. ............................................. US 700 41,431 0.7
----------
109,236
----------
Telecommunications (Cellular/Wireless) (1.6%)
AirTouch Communications, Inc.-/- ............................ US 700 50,487 0.8
NTT Mobile Communications Network, Inc.-/- .................. JPN 10 41,157 0.6
Sonera Group OYJ-/- ......................................... FIN 550 9,712 0.2
----------
101,356
----------
Building Materials & Components (1.6%)
Martin Marietta Materials, Inc. ............................. US 1,619 100,682 1.6
----------
Transportation - Road & Rail (1.5%)
Brisa Auto-Estradas de Portugal, S.A. ....................... PORT 1,600 94,137 1.5
----------
Telephone Networks (1.2%)
Telecom Italia S.p.A. - Di Risp ............................. ITLY 12,500 78,660 1.2
Hellenic Telecommunication Organization S.A. (OTE) .......... GREC 11 293 --
----------
78,953
----------
Machinery & Engineering (1.2%)
Ingersoll-Rand Co. .......................................... US 1,600 75,100 1.2
----------
Homebuilding (1.1%)
Centex Corp. ................................................ US 1,600 72,100 1.1
----------
Railroads (1.0%)
Canadian National Railway Co. ............................... CAN 1,300 67,761 1.0
----------
Natural Gas (0.9%)
El Paso Energy Corp. ........................................ US 1,700 59,182 0.9
----------
Manufacturing (Specialized) (0.9%)
USEC Inc. ................................................... US 4,000 55,500 0.9
----------
Water Utilities (0.8%)
Electricidade de Portugal, S.A. ............................. PORT 2,300 50,684 0.8
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Iron & Steel (0.8%)
Pohang Iron & Steel Co. Ltd. - ADR{\/} ...................... KOR 3,000 $ 50,625 0.8
----------
Transportation - Airlines (0.7%)
Aeroporti di Roma S.p.A.-/- ................................. ITLY 5,100 44,436 0.7
----------
Telecom Technology (0.6%)
Esat Telecom Group PLC - ADR{\/}-/- ......................... IRE 800 30,800 0.5
L-3 Communications Holdings, Inc.-/- ........................ US 100 4,658 0.1
----------
35,458
----------
Auto Parts & Equipment (0.4%)
Bridgestone Corp. ........................................... JPN 1,000 22,703 0.4
---------- -----
TOTAL EQUITY INVESTMENTS (cost $4,736,767) .................... 5,862,265 92.4
---------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50% ,
collaterized by $410,000 U.S. Treasury Notes, 6.25% due
4/30/01 (market value of collateral is $428,450, including
accrued interest). (cost $416,000) ......................... 416,000 6.6
---------- -----
TOTAL INVESTMENTS (cost $5,152,767) * ........................ 6,278,265 99.0
Other Assets and Liabilities .................................. 63,116 1.0
---------- -----
NET ASSETS .................................................... $6,341,381 100.0
---------- -----
---------- -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
{.} Security exempt from registration under rule 144A of the Securities
Act of 1933. These securites may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $5,152,767 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,226,305
Unrealized depreciation: (100,807)
-------------
Net unrealized appreciation: $ 1,125,498
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS{D}
------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ------------- -----
<S> <C> <C> <C>
Austria (ASTRI/ATS) .................. 0.9 0.9
Canada (CAN/CAD) ..................... 1.0 1.0
Denmark (DEN/DKK) .................... 0.5 0.5
Ecuador (ECDR/ECS) ................... 1.0 1.0
Egypt (EGPT/EGP) ..................... 0.6 0.6
Finland (FIN/FIM) .................... 2.2 2.2
France (FR/FRF) ...................... 5.3 5.3
Germany (GER/DEM) .................... 4.9 4.9
Hong Kong (HK/HKD) ................... 0.2 0.2
Ireland (IRE/IEP) .................... 0.5 0.5
Italy (ITLY/ITL) ..................... 3.2 3.2
Japan (JPN/JPY) ...................... 1.0 1.0
Korea (KOR/KRW) ...................... 1.3 1.3
Netherlands (NETH/NLG) ............... 2.0 2.0
Portugal (PORT/PTE) .................. 2.3 2.3
Spain (SPN/ESP) ...................... 4.9 4.9
Switzerland (SWTZ/CHF) ............... 1.6 1.6
United Kingdom (UK/GBP) .............. 12.8 12.8
United States (US/USD) ............... 46.2 7.6 53.8
------ --- -----
Total ............................... 92.4 7.6 100.0
------ --- -----
------ --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $6,341,381.
The accompanying notes are an integral part of the financial statements.
F33
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Oil (International Integrated) (17.2%)
Mobil Corp. ................................................. US 5,600 $ 487,900 7.6
ENI S.p.A - ADR{\/} ......................................... ITLY 2,800 189,700 3.0
Amoco Corp. ................................................. US 2,600 156,975 2.5
Total Compagnie Francaise des Petroles S.A.-ADR{\/} ......... FR 3,000 149,250 2.3
Chevron Corp. ............................................... US 1,400 116,112 1.8
----------
1,099,937
----------
Construction (Cement & Aggregates) (12.9%)
Martin Marietta Materials, Inc. ............................. US 4,400 273,625 4.3
Southdown, Inc. ............................................. US 3,103 183,659 2.9
CRH PLC ..................................................... UK 8,550 144,934 2.2
Centex Construction Products, Inc. .......................... US 3,100 125,937 2.0
Lafarge Corp. ............................................... US 1,800 72,900 1.1
Doman Industries Ltd. "B"-/- ................................ CAN 23,475 27,618 0.4
----------
828,673
----------
Natural Gas (11.2%)
Coastal Corp. ............................................... US 5,400 188,662 2.9
Williams Companies, Inc. .................................... US 4,400 137,225 2.1
Questar Corp. ............................................... US 6,800 131,750 2.1
Enron Corp. ................................................. US 2,300 131,244 2.1
El Paso Energy Corp. ........................................ US 3,700 128,806 2.0
----------
717,687
----------
Manufacturing (Specialized) (5.7%)
USEC Inc.-/- ................................................ US 9,150 126,956 2.0
US Filter Corp.-/- .......................................... US 5,300 121,238 1.9
Enerflex Systems Ltd. ....................................... CAN 4,200 80,980 1.2
Coflexip -ADR{\/} ........................................... FR 1,200 38,550 0.6
----------
367,724
----------
Metals Mining (4.5%)
Freeport-McMoRan Copper & Gold, Inc. "B" .................... US 7,600 79,325 1.2
Rio Tinto PLC ............................................... UK 6,400 74,347 1.2
Cominco Ltd. ................................................ CAN 6,200 70,307 1.1
Inco Ltd.-/- ................................................ CAN 6,000 63,529 1.0
----------
287,508
----------
Chemicals (Specialty) (4.4%)
Crompton & Knowles Corp. .................................... US 6,200 128,262 2.0
Air Liquide ................................................. FR 500 91,690 1.4
W.R. Grace & Co.-/- ......................................... US 4,000 62,750 1.0
----------
282,702
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F34
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Chemicals (4.2%)
Solutia, Inc. ............................................... US 6,100 $ 136,488 2.1
Potash Corp. of Saskatchewan Inc.{\/} ....................... CAN 1,100 70,262 1.1
E.I. Du Pont de Nemours & Company ........................... US 1,200 63,675 1.0
----------
270,425
----------
Electric Companies (4.1%)
Montana Power Co. ........................................... US 3,200 181,000 2.8
PacifiCorp .................................................. US 3,400 71,613 1.1
Fortum Corp.-/- ............................................. FIN 1,550 9,428 0.2
----------
262,041
----------
Gold & Precious Metals Mining (3.9%)
Stillwater Mining Co.-/- .................................... US 4,400 180,400 2.8
Placer Dome Inc.{\/} ........................................ CAN 6,100 70,150 1.1
----------
250,550
----------
Oil & Gas (Exploration & Production) (3.7%)
Berkley Petroleum Corp.-/- .................................. CAN 20,300 153,908 2.4
Triton Energy Ltd.-/- ....................................... US 5,700 45,244 0.7
Stolt Comex Seaway, S.A. .................................... UK -- -- 0.6
Common{\/}-/- ............................................. -- 4,000 27,000 --
ADR{\/}-/- ................................................ -- 1,750 9,844 --
----------
235,996
----------
Chemicals (Diversified) (3.2%)
BASF A.G. ................................................... GER 3,300 125,948 2.0
Solvay SA ................................................... BEL 1,000 74,964 1.2
----------
200,912
----------
Homebuilding (3.0%)
Centex Corp. ................................................ US 2,800 126,175 2.0
Pulte Corp. ................................................. US 2,200 61,188 1.0
----------
187,363
----------
Building Materials (2.9%)
USG Corp. ................................................... US 3,650 185,922 2.9
----------
Iron & Steel (2.9%)
Pohang Iron & Steel Co. Ltd. ADR{\/} ........................ KOR 7,800 131,625 2.1
British Steel PLC- ADR{\/} .................................. UK 3,400 49,725 0.8
----------
181,350
----------
Engineering & Construction (2.7%)
Lafarge S.A. ................................................ FR 1,800 170,999 2.7
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F35
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Oil & Gas (Refining & Marketing) (1.6%)
Tesoro Petroleum Corp. ...................................... US 2,100 $ 25,463 0.4
Repsol S.A. ................................................. SPN 1,500 79,925 1.2
----------
105,388
----------
Oil & Gas (Drilling & Equipment) (1.5%)
Core Laboratories N.V.{\/}-/- ............................... NETH 2,600 49,725 0.8
J. Ray McDermott S.A.-/- .................................... US 2,000 48,875 0.7
----------
98,600
----------
Aluminum (1.3%)
Aluminum Company of America ................................. US 1,100 82,019 1.3
----------
Containers & Packaging (Paper) (1.2%)
Union Camp Corp. ............................................ US 1,100 74,250 1.2
----------
Foods (0.8%)
Dole Food Co., Inc. ......................................... US 1,200 36,000 0.6
Chiquita Brands International ............................... US 1,600 15,300 0.2
----------
51,300
----------
Beverages (Alcoholic) (0.8%)
Scheid Vineyards Inc.- "A" .................................. US 10,300 50,213 0.8
---------- -----
TOTAL EQUITY INVESTMENTS (cost $6,474,678) .................... 5,991,559 93.7
---------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31,1998 , with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $525,000 U.S. Treasury Bills, 8.75% due
5/15/17 (market value of collateral is $734,767, including
accrued interest). (cost $716,000) ........................ 716,000 11.2
---------- -----
TOTAL INVESTMENTS (cost $7,190,678) * ......................... 6,707,559 104.9
Other Assets and Liabilities .................................. (311,959) (4.9)
---------- -----
NET ASSETS .................................................... $6,395,600 100.0
---------- -----
---------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $7,274,880 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 224,049
Unrealized depreciation: (791,370)
-------------
Net unrealized depreciation: $ (567,321)
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F36
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS{D}
------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ------------- -----
<S> <C> <C> <C>
Belgium (BEL/BEF) .................... 1.2 1.2
Canada (CAN/CAD) ..................... 8.3 8.3
Finland (FIN/FIM) .................... 0.2 0.2
France (FR/FRF) ...................... 7.0 7.0
German (GER/DEM) ..................... 2.0 2.0
Italy (ITLY/ITL) ..................... 3.0 3.0
Korea (KOR/KRW) ...................... 2.1 2.1
Netherlands (NETH/NLG) ............... 0.8 0.8
Spain (SPN/ESP) ...................... 1.2 1.2
United Kingdom (UK/GBP) .............. 4.8 4.8
United States (US/USD) ............... 63.1 6.3 69.4
------ --- -----
Total ............................... 93.7 6.3 100.0
------ --- -----
------ --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $6,395,600.
The accompanying notes are an integral part of the financial statements.
F37
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Services (43.7%)
Outdoor Systems, Inc.-/- ................................... US 62,450 $ 1,873,500 4.6
BUSINESS & PUBLIC SERVICES
Clear Channel Communications, Inc.-/- ...................... US 31,038 1,691,571 4.1
BROADCASTING & PUBLISHING
Family Dollar Stores, Inc. ................................. US 68,700 1,511,400 3.7
RETAILERS - DISCOUNTERS
Chancellor Media Corp.-/- .................................. US 31,000 1,484,125 3.6
BROADCASTING & PUBLISHING
Jacor Communications, Inc.-/- .............................. US 21,200 1,364,750 3.3
BROADCASTING & PUBLISHING
Cablevision Systems Corp. "A"-/- ........................... US 19,000 953,563 2.3
BROADCASTING & PUBLISHING
Lamar Advertising Co.-/- ................................... US 20,300 756,175 1.9
BUSINESS & PUBLIC SERVICES
AnnTaylor Stores Corp.-/- .................................. US 16,500 650,719 1.6
RETAIL - SPECIALTY APPAREL
Amazon.com, Inc.-/- ........................................ US 2,000 642,500 1.6
RETAIL - SPECIALTY
Abercrombie & Fitch Co. "A"-/- ............................. US 9,000 636,750 1.6
RETAIL - SPECIALTY APPAREL
Best Buy Co., Inc.-/- ...................................... US 10,000 613,750 1.5
RETAIL - COMPUTERS & ELECTRONICS
Tricon Global Restaurants, Inc.-/- ......................... US 12,000 601,500 1.5
RESTAURANTS
DST Systems, Inc.-/- ....................................... US 10,500 599,156 1.5
DATA PROCESSING
Circuit City Stores-Circuit City Group ..................... US 11,000 549,312 1.3
RETAIL - COMPUTERS & ELECTRONICS
Office Depot, Inc.-/- ...................................... US 14,000 517,125 1.3
RETAIL - SPECIALTY
Allied Waste Industries, Inc.-/- ........................... US 21,000 496,125 1.2
WASTE MANAGEMENT
American Tower Corp.-/- .................................... US 16,500 487,781 1.2
TELECOMMUNICATIONS - CELLULAR/WIRELESS
CDW Computer Centers, Inc.-/- .............................. US 5,000 479,688 1.2
RETAIL - COMPUTERS & ELECTRONICS
Century Communications Corp.-/- ............................ US 14,600 463,094 1.1
BROADCASTING & PUBLISHING
Galileo International, Inc. ................................ US 10,000 435,000 1.1
COMMERCIAL & CONSUMER
Paychex, Inc. .............................................. US 7,400 380,638 0.9
DATA PROCESSING
USA Networks, Inc.-/- ...................................... US 10,000 331,250 0.8
BROADCASTING & PUBLISHING
Sun International Hotels Ltd.-/- ........................... US 7,000 318,062 0.8
LEISURE & TOURISM
-----------
17,837,534
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F38
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Technology (29.7%)
Software AG Systems, Inc.-/- ............................... US 48,800 $ 884,500 2.2
SOFTWARE
SunGard Data Systems, Inc.-/- .............................. US 22,000 873,125 2.0
SOFTWARE
Compuware Corp.-/- ......................................... US 9,500 742,187 1.8
SOFTWARE
Vitesse Semiconductor Corp.-/- ............................. US 16,000 730,000 1.8
ELECTRONICS - SEMICONDUCTORS
Altera Corp.-/- ............................................ US 11,500 700,063 1.7
ELECTRONICS - SEMICONDUCTORS
Xilinx, Inc.-/- ............................................ US 10,500 683,813 1.7
ELECTRONICS - SEMICONDUCTORS
Ticketmaster Online-CitySearch, Inc. "B"-/- ................ US 11,800 672,600 1.6
SOFTWARE
Netscape Communications Corp.-/- ........................... US 10,000 607,500 1.5
SOFTWARE
Lexmark International Group, Inc.-/- ....................... US 6,000 603,000 1.5
COMPUTERS - PERIPHERALS
Micron Technology, Inc.-/- ................................. US 11,200 566,300 1.4
ELECTRONICS - SEMICONDUCTORS
Jabil Circuit, Inc.-/- ..................................... US 7,000 522,375 1.3
COMPUTERS - PERIPHERALS
Concord Communications, Inc.-/- ............................ US 9,200 522,100 1.3
SOFTWARE
Policy Management Systems Corp.-/- ......................... US 9,800 494,900 1.2
SOFTWARE
Citrix Systems, Inc.-/- .................................... US 5,000 485,313 1.2
SOFTWARE
Flextronics International Ltd.-/- .......................... US 5,500 470,937 1.2
ELECTRONICS - SEMICONDUCTORS
Yahoo! Inc.-/- ............................................. US 2,000 470,125 1.1
SOFTWARE
3Com Corp.-/- .............................................. US 10,000 448,125 1.1
COMPUTERS - NETWORKING
New Era of Networks, Inc.-/- ............................... US 10,000 440,000 1.1
SOFTWARE
FORE Systems, Inc.-/- ...................................... US 23,700 434,006 1.1
COMPUTERS - NETWORKING
Learning Company, Inc. (The)-/- ............................ US 15,300 396,844 1.0
SOFTWARE
Visio Corp.-/- ............................................. US 10,500 383,906 0.9
SOFTWARE
-----------
12,131,719
-----------
Energy (3.6%)
Montana Power Co. .......................................... US 10,000 565,625 1.4
ELECTRIC COMPANIES
Anadarko Petroleum Corp. ................................... US 12,000 370,500 0.9
ENERGY SOURCES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F39
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Energy (Continued)
BJ Services Co.-/- ......................................... US 18,500 $ 289,062 0.7
ENERGY SOURCES
Cooper Cameron Corp.-/- .................................... US 10,000 245,000 0.6
ENERGY SOURCES
-----------
1,470,187
-----------
Health Care (6.7%)
Forest Laboratories, Inc.-/- ............................... US 17,100 909,506 2.2
DRUGS - GENERIC & OTHER
Becton, Dickinson & Co. .................................... US 11,200 478,100 1.2
MEDICAL PRODUCTS & SUPPLIES
Total Renal Care Holdings, Inc.-/- ......................... US 15,000 443,437 1.1
SPECIALIZED SERVICES
Quintiles Transnational Corp.-/- ........................... US 7,500 400,312 1.0
SPECIALIZED SERVICES
BioChem Pharma, Inc.-/- .................................... CAN 10,000 286,250 0.7
BIOTECHNOLOGY
Allegiance Corp. ........................................... US 5,000 233,125 0.5
MEDICAL PRODUCTS & SUPPLIES
-----------
2,750,730
-----------
Finance (4.6%)
American Bankers Insurance Group, Inc. ..................... US 12,500 604,688 1.5
INSURANCE - MULTI-LINE
Providian Financial Corp. .................................. US 7,950 596,250 1.5
CONSUMER FINANCE
UNUM Corp. ................................................. US 10,000 583,750 1.4
INSURANCE - LIFE/HEALTH
Firstar Corp. .............................................. US 1,000 93,250 0.2
BANKS - REGIONAL
-----------
1,877,938
-----------
Consumer Non-Durables (3.8%)
JP Foodservice, Inc.-/- .................................... US 21,100 1,033,900 2.6
DISTRIBUTORS - FOOD & HEALTH
Maytag Corp. ............................................... US 8,000 498,000 1.2
HOUSEHOLD FURNITURE & APPLIANCES
-----------
1,531,900
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F40
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Capital Goods (3.2%)
Tellabs, Inc.-/- ........................................... US 10,000 $ 685,625 1.7
COMMUNICATIONS EQUIPMENT
ADC Telecommunications, Inc.-/- ............................ US 18,000 625,500 1.5
COMMUNICATIONS EQUIPMENT
-----------
1,311,125
----------- -----
TOTAL INVESTMENTS * (cost $29,386,117) ....................... 38,911,133 95.3
Other Assets and Liabilities ................................. 1,921,899 4.7
----------- -----
NET ASSETS ................................................... $40,833,032 100.0
----------- -----
----------- -----
</TABLE>
- --------------
-/- Non-income producing security.
* For Federal income tax purposes, cost is $29,403,605 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 9,893,798
Unrealized depreciation: (386,270)
-------------
Net unrealized appreciation: $ 9,507,528
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F41
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Banks-Major Regional (10.9%)
Australia & New Zealand Banking Group Ltd. ................. AUSL 57,000 $ 372,745 3.4
HSBC Holdings PLC .......................................... HK 11,468 285,697 2.6
Oversea-Chinese Banking Corp. Ltd. - Foreign ............... SING 40,000 271,597 2.5
Development Bank of Singapore Ltd. - Foreign ............... SING 29,800 269,185 2.4
-----------
1,199,224
-----------
Land Development (9.2%)
Cheung Kong (Holdings) Ltd. ................................ HK 90,000 647,662 5.9
DBS Land Ltd. .............................................. SING 200,000 294,635 2.6
Sun Hung Kai Properties Ltd. ............................... HK 10,000 72,931 0.7
-----------
1,015,228
-----------
Telephone (7.7%)
Hong Kong Telecommunications Ltd. .......................... HK 200,000 349,808 3.2
Philippine Long Distance Telephone Co. ..................... PHIL 10,590 273,290 2.5
PT Telekomunikasi Indonesia ................................ INDO 250,000 86,539 0.8
Telecom Corporation of New Zealand Ltd. .................... NZ 32,400 70,699 0.6
Cable & Wireless Optus Ltd.-/- ............................. AUSL 32,800 68,886 0.6
-----------
849,222
-----------
Electric Companies (7.1%)
CLP Holdings Ltd. .......................................... HK 70,000 348,775 3.2
Electricity Generating Public Co. Ltd. - Foreign-/- ........ THAI 51,000 138,771 1.3
Korea Electric Power Corp. ................................. KOR 5,000 124,167 1.1
Hong Kong Electric Holdings Ltd. ........................... HK 40,000 121,336 1.1
YTL Power International Berhad{F} .......................... MAL 72,000 47,211 0.4
-----------
780,260
-----------
Retail-Food Chains (6.4%)
Hutchison Whampoa .......................................... HK 100,000 706,716 6.4
-----------
Banks-Foreign (5.0%)
National Australia Bank Ltd. ............................... AUSL 36,900 555,809 5.0
-----------
Telephone Networks (4.9%)
Telstra Corp. Ltd. ......................................... AUSL 105,900 494,749 4.5
Telekom Malaysia Bhd. ...................................... AUSL 17,750 38,925 0.4
-----------
533,674
-----------
Electronics-Component Distributors (4.7%)
Samsung Electronics ........................................ KOR 4,000 269,000 2.4
Samsung Display Devices Co. ................................ KOR 5,000 247,083 2.3
-----------
516,083
-----------
Insurance-Multi-line Property (4.5%)
Samsung Fire & Marine Insurance ............................ KOR 1,332 499,500 4.5
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F42
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Engineering & Construction (4.5%)
Lend Lease Corp., Ltd. ..................................... AUSL 20,800 $ 280,189 2.5
Singapore Technologies Engineering Ltd. .................... SING 230,000 214,732 2.0
-----------
494,921
-----------
Air Freight (3.5%)
Brambles Industries Ltd. ................................... AUSL 15,800 384,555 3.5
-----------
Insurance-Life/Health (3.3%)
AMP Ltd.-/- ................................................ AUSL 28,300 358,258 3.3
-----------
Entertainment (2.9%)
News Corp., Ltd. -Preferred ................................ AUSL 53,100 322,855 2.9
-----------
Beverages-Alcoholic (2.9%)
Foster's Brewing Group Ltd. ................................ AUSL 117,200 317,186 2.9
-----------
Manufacturing-Diversified (2.6%)
Shanghai Industrial Holdings Ltd. .......................... HK 80,000 161,609 1.5
New World Development Co., Ltd. ............................ HK 50,000 125,854 1.1
-----------
287,463
-----------
Banking (2.4%)
Hang Seng Bank ............................................. HK 29,000 259,226 2.4
-----------
Electric Power (2.3%)
Manila Electric Co. "B" .................................... PHIL 78,670 253,774 2.3
-----------
Metals Mining (2.2%)
Rio Tinto Ltd. ............................................. AUSL 11,500 136,287 1.2
North Ltd. ................................................. AUSL 65,500 106,681 1.0
-----------
242,968
-----------
Publishing- Newspapers (2.0%)
Singapore Press Holdings Ltd. .............................. SING 20,562 224,381 2.0
-----------
Leisure Time Products (2.0%)
TABCORP Holdings Ltd. ...................................... AUSL 35,600 217,979 2.0
-----------
Communications Equipment (1.7%)
LG Information & Communication ............................. KOR 7,130 191,916 1.7
-----------
Oil & Gas (Exploration & Production) (1.6%)
PTT Exploration and Production Public Co., Ltd. -
Foreign-/- ................................................ THAI 13,200 93,348 0.8
Santos Ltd. ................................................ AUSL 32,400 86,893 0.8
-----------
180,241
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F43
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Conglomerates (1.6%)
Broken Hill Proprietary Co., Ltd. .......................... AUSL 22,800 $ 167,791 1.6
-----------
Metals-Misc (1.0%)
Western Mining Corporation Holdings Ltd. ................... AUSL 36,300 109,354 1.0
-----------
Retail- Specialty (0.7%)
Woolworths Ltd. ............................................ AUSL 23,300 79,265 0.7
-----------
Shipping (0.4%)
Malaysia International Shipping Bhd. - Foreign{F} .......... MAL 37,000 40,570 0.4
-----------
Investments (0.2%)
Berjaya Sports Toto Bhd.{F} ................................ MAL 23,000 23,908 0.2
----------- -----
TOTAL EQUITY INVESTMENTS (cost $10,613,832) .................. 10,812,327 98.2
----------- -----
<CAPTION>
WARRANTS
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
Merrill Lynch - Kospi 300 Call Warrants, due 3/11/99
Performance linked to equity securities. Redemption amount
100% of the final closing price of the Korean Kospi 300
Index converted to the prevailing foreign exchange rate.
(cost $97,498){\/} ........................................ KOR 39,153 206,837 1.9
----------- -----
<CAPTION>
RIGHTS
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
Samsung Fire & Marine Insurance Rights, expire 1/13/99 (cost
$0) ....................................................... KOR 305 58,763 0.5
----------- -----
TOTAL INVESTMENTS (cost $10,711,330) * ...................... 11,077,927 100.6
Other Assets and Liabilities ................................. (67,902) (0.6)
----------- -----
NET ASSETS ................................................... $11,010,025 100.0
----------- -----
----------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{F} Security considered illiquid due to currency and capital controls
mandated by the Malaysian government.
* For Federal income tax purposes, cost is $10,845,065 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,019,395
Unrealized depreciation: (786,533)
-------------
Net unrealized appreciation: $ 232,862
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F44
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-----------------------------------
RIGHTS &
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 37.3 37.3
Hong Kong (HK/HKD) ................... 28.1 28.1
Indonesia (INDO/IDR) ................. 0.8 0.8
Korea (KOR/KRW) ...................... 12.0 2.4 14.4
Malaysia (MAL/MYR) ................... 1.0 1.0
New Zealand (NZ/NZD) ................. 0.6 0.6
Philippines (PHIL/PHP) ............... 4.8 4.8
Singapore (SING/SGD) ................. 11.5 11.5
Thailand (THAI/THB) .................. 2.1 2.1
United States (US/USD) ............... (0.6) (0.6)
------ ----- ----- -----
Total ............................... 98.2 2.4 (0.6) 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $11,010,025.
The accompanying notes are an integral part of the financial statements.
F45
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Services (26.5%)
Orange PLC-/- .............................................. UK 83,068 $ 958,070 2.9
WIRELESS COMMUNICATIONS
TNT Post Group N.V. ........................................ NETH 27,330 880,346 2.7
TRANSPORTATION - SHIPPING
Vodafone Group PLC ......................................... UK 47,060 761,756 2.3
WIRELESS COMMUNICATIONS
MobilCom AG ................................................ GER 2,271 722,294 2.2
TELECOM - OTHER
Mannesmann AG .............................................. GER 5,698 653,095 2.0
WIRELESS COMMUNICATIONS
Telecom Italia Mobile SpA .................................. ITLY 80,799 596,594 1.8
TELEPHONE NETWORKS
Swisscom AG-/- ............................................. SWTZ 1,416 592,922 1.8
TELEPHONE NETWORKS
Telecel - Comunicacaoes Pessoais S.A. ...................... PORT 2,871 587,395 1.8
WIRELESS COMMUNICATIONS
Helsingin Puhelin Oyj (Helsinki Telephone Corp.) ........... FIN 9,643 573,301 1.8
TELEPHONE NETWORKS
Telecom Italia SpA ......................................... ITLY 64,079 545,488 1.7
TELEPHONE NETWORKS
Corporate Services Group PLC ............................... UK 200,978 506,018 1.6
BUSINESS & PUBLIC SERVICES
STET Hellas Telecommunications S.A. - ADR-/- {\/} .......... GREC 12,130 392,709 1.2
WIRELESS COMMUNICATIONS
EM.TV & Merchandising AG ................................... GER 639 364,288 1.1
BROADCASTING & PUBLISHING
ASSA Abloy AB "B" .......................................... SWDN 6,920 264,187 0.8
BUSINESS & PUBLIC SERVICES
Esat Telecom Group PLC - ADR-/- {\/} ....................... IRE 5,200 200,200 0.6
TELEPHONE NETWORKS
Panafon Hellenic Telecom S.A.-/- ........................... GREC 2,129 57,082 0.2
WIRELESS COMMUNICATIONS
-----------
8,655,745
-----------
Finance (20.4%)
Axa-UAP .................................................... FR 5,057 732,833 2.2
INSURANCE - MULTI-LINE
Zurich Allied AG ........................................... SWTZ 806 596,928 1.8
INSURANCE - MULTI-LINE
UBS AG - Registered ........................................ SWTZ 1,803 554,082 1.7
BANKS-MONEY CENTER
Unicredito Italiano SpA .................................... ITLY 93,674 553,247 1.7
OTHER FINANCIAL
Safra Republic Holdings S.A.{\/} ........................... LUX 10,052 547,834 1.7
OTHER FINANCIAL
Abbey National PLC ......................................... UK 25,271 540,513 1.7
BANKS-SUPER REGIONAL
ING Groep N.V. ............................................. NETH 8,714 531,228 1.6
OTHER FINANCIAL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F46
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Lloyds TSB Group PLC ....................................... UK 33,043 $ 468,418 1.4
BANKS-MONEY CENTER
Mediolanum SpA ............................................. ITLY 56,135 416,453 1.3
INSURANCE-LIFE
ForeningsSparbanken AB ..................................... SWDN 15,124 391,138 1.2
BANKS-REGIONAL
Nordbanken Holding AB ...................................... SWDN 60,841 389,622 1.2
BANKS-REGIONAL
Skandia Forsakrings AB Free ................................ SWDN 24,719 377,482 1.2
INSURANCE - MULTI-LINE
CGU PLC .................................................... UK 19,143 298,890 0.9
INSURANCE - MULTI-LINE
BPI-SGPS S.A. .............................................. PORT 7,742 262,968 0.8
BANKS-MONEY CENTER
-----------
6,661,636
-----------
Technology (15.2%)
Equant N.V.-/- {V} ......................................... NETH 10,543 733,549 2.3
NETWORKING
Dassault Systemes S.A. ..................................... FR 14,346 674,245 2.1
COMPUTERS & PERIPHERALS
TT Tieto Oy "B" ............................................ FIN 13,820 615,548 1.9
COMPUTERS & PERIPHERALS
Saville Systems PLC - ADR{\/} .............................. IRE 29,300 556,700 1.7
TELECOM TECHNOLOGY
SAP AG Non-Voting .......................................... GER 1,098 523,962 1.6
COMPUTERS & PERIPHERALS
Misys PLC .................................................. UK 63,701 464,746 1.4
SOFTWARE
Mobistar S.A.-/- ........................................... BEL 8,388 421,221 1.3
TELECOM TECHNOLOGY
Computacenter PLC-/- ....................................... UK 54,374 397,602 1.2
COMPUTERS & PERIPHERALS
Sonera Group Oyj-/- ........................................ FIN 13,000 229,569 0.7
TELECOM TECHNOLOGY
Energis PLC-/- ............................................. UK 9,600 214,585 0.7
TELECOM TECHNOLOGY
JBA Holdings PLC ........................................... UK 31,840 97,893 0.3
SOFTWARE
-----------
4,929,620
-----------
Health Care (10.7%)
Novartis AG ................................................ SWTZ 434 853,335 2.6
PHARMACEUTICALS
SmithKline Beecham PLC ..................................... UK 44,397 622,363 1.9
PHARMACEUTICALS
Roche Holding AG ........................................... SWTZ 50 610,253 1.9
PHARMACEUTICALS
Glaxo Wellcome PLC ......................................... UK 17,131 588,475 1.8
PHARMACEUTICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F47
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Health Care (Continued)
Nycomed Amersham PLC ....................................... UK 69,723 $ 480,871 1.5
PHARMACEUTICALS
Genset - ADR-/- {\/} ....................................... FR 9,348 258,239 0.8
BIOTECHNOLOGY
Primamedic Ltd.-/- ......................................... ASTRI 71,100 78,845 0.2
PHARMACEUTICALS
-----------
3,492,381
-----------
Capital Goods (6.8%)
Nokia Oyj "A" .............................................. FIN 11,321 1,377,224 4.2
TELECOM EQUIPMENT
Telefonaktiebolaget LM Ericsson "B" ........................ SWDN 31,060 738,249 2.3
TELECOM EQUIPMENT
Altran Technologies S.A. ................................... FR 344 82,961 0.3
MACHINERY & ENGINEERING
-----------
2,198,434
-----------
Consumer Non-Durables (6.6%)
Cadbury Schweppes PLC ...................................... UK 33,430 568,907 1.7
FOOD
Nestle S.A. - Registered ................................... SWTZ 259 563,946 1.7
FOOD
Tabacalera S.A. "A" ........................................ SPN 16,900 425,860 1.3
TOBACCO
Raisio Group PLC-/- ........................................ FIN 30,980 340,406 1.0
FOOD
Diageo PLC ................................................. UK 25,461 285,829 0.9
BEVERAGES - ALCOHOLIC
-----------
2,184,948
-----------
Energy (3.1%)
BP Amoco PLC ............................................... UK 27,504 410,009 1.3
OIL
Petroleum Geo-Services ASA-/- .............................. NOR 24,585 313,898 1.0
ENERGY EQUIPMENT & SERVICES
Coflexip - ADR{\/} ......................................... FR 8,587 275,857 0.8
ENERGY EQUIPMENT & SERVICES
-----------
999,764
-----------
Consumer Durables (1.5%)
Porsche AG Preferred-/- .................................... GER 216 492,559 1.5
AUTOMOBILES
----------- -----
TOTAL EQUITY INVESTMENTS (cost $25,928,330) .................. 29,615,087 90.8
----------- -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F48
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $1,915,000 U.S. Treasury Bonds, 6.25% due
8/15/23 (market value of collateral is $2,183,697,
including accrued interest). (cost $2,136,000) ............ $ 2,136,000 6.5
----------- -----
TOTAL INVESTMENTS (cost $28,064,330) * ...................... 31,751,087 97.3
Other Assets and Liabilities ................................. 865,804 2.7
----------- -----
NET ASSETS ................................................... $32,616,891 100.0
----------- -----
----------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{V} Security is denominated in FRF.
* For Federal income tax purposes, cost is $28,322,738 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 5,245,694
Unrealized depreciation: (1,817,345)
-------------
Net unrealized appreciation: $ 3,428,349
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depositary Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Austria (ASTRI/ATS) .................. 0.2 0.2
Belgium (BEL/BEF) .................... 1.3 1.3
Finland (FIN/FIM) .................... 9.6 9.6
France (FR/FRF) ...................... 6.2 6.2
Germany (GER/DEM) .................... 8.4 8.4
Greece (GREC/GRD) .................... 1.4 1.4
Ireland (IRE/IEP) .................... 2.3 2.3
Italy (ITLY/ITL) ..................... 6.5 6.5
Luxembourg (LUX/LUF) ................. 1.7 1.7
Netherlands (NETH/NLG) ............... 6.6 6.6
Norway (NOR/NOK) ..................... 1.0 1.0
Portugal (PORT/PTE) .................. 2.6 2.6
Spain (SPN/ESP) ...................... 1.3 1.3
Sweden (SWDN/SEK) .................... 6.7 6.7
Switzerland (SWTZ/CHF) ............... 11.5 11.5
United Kingdom (UK/GBP) .............. 23.5 23.5
United States (US/USD) ............... 9.2 9.2
------ ----- -----
Total ............................... 90.8 9.2 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $32,616,891.
The accompanying notes are an integral part of the financial statements.
F49
<PAGE>
GT GLOBAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS YIELD DATE AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------------- --------- --------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Commercial Paper - Discounted (45.7%)
Bellsouth Capital Funding ..................................... 5.50% 22-Jan-99 1,500,000 $ 1,495,291 4.7
Harris Trust & Savings Bank ................................... 5.64% 01-Feb-99 1,000,000 1,000,000 3.2
Wachovia Bank NA .............................................. 5.50% 29-Jan-99 1,000,000 1,000,000 3.2
H.J. Heinz Co. ................................................ 5.26% 11-Jan-99 1,000,000 998,547 3.2
Campbell Soup Co. ............................................. 5.61% 14-Jan-99 1,000,000 998,032 3.2
Hitachi America Ltd. .......................................... 5.21% 22-Jan-99 1,000,000 996,996 3.2
PepsiCo, Inc. ................................................. 5.33% 27-Jan-99 1,000,000 996,172 3.2
Monte Rosa Capital Corp. ...................................... 5.55% 28-Jan-99 1,000,000 995,875 3.2
ABB Treasury Center USA ....................................... 5.25% 18-Feb-99 1,000,000 993,067 3.1
The McGraw-Hill Cos., Inc. .................................... 5.24% 22-Feb-99 1,000,000 992,547 3.1
Caterpillar Financial Services ................................ 5.07% 23-Mar-99 1,000,000 988,863 3.1
E.I. Dupont de Nemours & Co. .................................. 5.06% 26-Mar-99 1,000,000 988,403 3.1
John Deere Capital Corp. ...................................... 5.03% 02-Apr-99 1,000,000 987,488 3.1
Ford Motor Credit Corp. ....................................... 5.07% 30-Apr-99 1,000,000 983,605 3.1
----------- -----
Total Commercial Paper - Discounted (amortized cost
$14,414,886) ................................................... 14,414,886 45.7
----------- -----
Government & Government Agency Obligations (25.8%)
Federal Home Loan Bank Discount Note .......................... 4.50% 04-Jan-99 4,091,000 4,089,466 12.9
Federal Home Loan Mortgage Corporation Discount Note .......... 4.50% 04-Jan-99 4,091,000 4,089,466 12.9
----------- -----
Total Government & Government Agency Obligations (amortized cost
$8,178,932) .................................................... 8,178,932 25.8
----------- -----
TOTAL SHORT-TERM INVESTMENTS (cost $22,593,818) ................. 22,593,818 71.5
----------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENTS (NOTE 1) ASSETS
- ----------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Dated December 31, 1998, with NationsBanc Montgomery
Securities, due January 4, 1999, for an effective yield of
4.25%, collateralized by $3,600,000 U.S. Treasury Bonds,
11.25% due 2/15/15 (market value of collateral is $6,118,777,
including accrued interest). ................................ 6,000,000 19.0
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%,
collateralized by $5,370,000 U.S. Treasury Bonds, 6.25% due
8/15/23 (market value of collateral is $6,123,475, including
accrued interest). .......................................... 6,000,000 19.0
----------- -----
TOTAL REPURCHASE AGREEMENTS (cost $12,000,000) .................. 12,000,000 38.0
----------- -----
TOTAL INVESTMENTS (cost $34,593,818) * ......................... 34,593,818 109.5
Other Assets and Liabilities .................................... (3,006,087) (9.5)
----------- -----
NET ASSETS ...................................................... $31,587,731 100.0
----------- -----
----------- -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $34,593,818.
The accompanying notes are an integral part of the financial statements.
F50
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Services (25.1%)
Telecom Italia S.p.A. ....................................... ITLY 19,462 $ 166,040 2.2
TELEPHONE
Vodafone Group PLC .......................................... UK 7,904 128,204 1.7
TELECOMMUNICATIONS-CELLULAR/WIRELESS
Nokia Oyj A.B. - Class A .................................... FIN 831 101,093 1.4
COMMUNICATIONS EQUIPMENT
Telecel-Comunicacaoes Pessoais, S.A. ........................ PORT 482 98,615 1.3
TELECOMMUNICATIONS-CELLULAR/WIRELESS
Wolters Kluwer N.V.-/- ...................................... NETH 450 96,268 1.3
SPECIALTY PRINTING
EMAP PLC .................................................... UK 4,800 91,737 1.3
PUBLISHING
Swisscom A.G.-/- ............................................ SWTZ 209 87,515 1.2
TELEPHONE
TNT Post Group N.V. ......................................... NETH 2,708 87,229 1.2
AIR FREIGHT
Orange PLC-/- ............................................... UK 7,200 83,580 1.1
WIRELESS TELECOMMUNICATIONS
Adecco S.A.-/- .............................................. SWTZ 180 82,188 1.1
SERVICES-COMMERCIAL & CONSUMER
Woolworths Ltd. ............................................. AUSL 23,100 78,585 1.1
RETAIL-SPECIALTY
Koninklijke Ahold N.V. ...................................... NETH 2,123 78,445 1.1
RETAIL-FOOD CHAINS
EMI Group PLC ............................................... UK 11,600 77,498 1.1
LEISURE TIME-PRODUCTS
Great Universal Stores PLC .................................. UK 6,800 71,591 1.0
RETAIL-GENERAL MERCHANDISE
Telecom Corp. of New Zealand Ltd. ........................... NZ 16,100 69,839 1.0
TELEPHONE
Vivendi ..................................................... FR 266 69,004 0.9
MANUFACTURING-DIVERSIFIED
Koninklijke KPN N.V. ........................................ NETH 1,290 64,562 0.9
TELECOMMUNICATIONS-LONG DISTANCE
Pinault-Printemps-Redoute S.A. .............................. FR 337 64,391 0.9
RETAIL-GENERAL MERCHANDISE
Reuters Group PLC ........................................... UK 6,000 62,920 0.9
SERVICES-COMMERCIAL & CONSUMER
Telecommunicacoes Brasileiras S.A.{\/} ...................... BRZL 760 55,243 0.8
TELEPHONE
Telefonica S.A. ............................................. SPN 1,144 50,810 0.7
TELEPHONE
EM.TV & Merchandising A.G.-/- ............................... GER 80 45,895 0.6
BROADCASTING-TELEVISION, RADIO, & CABLE
Hellenic Telecom Panafon S.A.-/- ............................ GREC 447 11,985 0.2
TELECOMMUNICATIONS-CELLULAR/WIRELESS
Telecom Corporation of New Zealand Ltd. ..................... NZ 2,280 4,975 0.1
TELEPHONE
</TABLE>
The accompanying notes are an integral part of the financial statements.
F51
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Services (Continued)
Fast Retailing Co. Ltd. ..................................... JPN 44 $ 778 --
RETAIL-SPECIALTY APPAREL
----------
1,828,990
----------
Finance (21.4%)
Lloyds TSB Group PLC ........................................ UK 8,800 125,041 1.7
BANKS-MAJOR REGIONAL
Abbey National PLC .......................................... UK 5,400 115,499 1.6
SAVINGS & LOAN COMPANIES
Zurich Allied A.G.-/- ....................................... SWTZ 146 108,128 1.5
INSURANCE-MULTI-LINE
AXA S.A. .................................................... FR 710 102,889 1.4
INSURANCE-MULTI-LINE
UBS A.G. .................................................... SWTZ 321 98,647 1.3
BANKS-MAJOR REGIONAL
ING Groep N.V. .............................................. NETH 1,499 91,383 1.3
INSURANCE BROKERS
Royal & Sun Alliance Insurance Group PLC .................... UK 10,800 88,082 1.2
INSURANCE-MULTI-LINE
Australia & New Zealand Banking Group Ltd. .................. AUSL 11,700 76,511 1.1
BANKS-MAJOR REGIONAL
Schroders PLC ............................................... UK 4,100 74,747 1.0
BANKS-MAJOR REGIONAL
Nordbanken Holding A.B. ..................................... SWDN 10,840 69,419 1.0
BANKS-MAJOR REGIONAL
BPI-SGPS, S.A. .............................................. PORT 2,040 69,292 0.9
BANKS-REGIONAL
CGU PLC ..................................................... UK 4,400 68,809 0.9
INSURANCE BROKERS
M & G Group PLC ............................................. UK 2,660 66,089 0.9
INVESTMENT MANAGEMENT
Istituto Bancario San Paolo di Torino ....................... ITLY 3,735 65,990 0.9
BANKS-MAJOR REGIONAL
Bank of Ireland ............................................. IRE 2,705 59,205 0.8
BANKS-MAJOR REGIONAL
Safra Republic Holdings, S.A.{\/} ........................... UK 1,097 57,044 0.8
BANKS-MAJOR REGIONAL
Skandia Forsakrings A.B.-/- ................................. SWDN 3,679 56,182 0.8
INSURANCE BROKERS
Nichiei Co., Ltd. ........................................... JPN 600 47,796 0.7
BANKS-MONEY CENTERS
Royal Bank of Canada ........................................ CAN 950 47,531 0.6
BANKS-MAJOR REGIONAL
State Bank of India{\/} ..................................... IND 5,350 44,806 0.6
BANKS-MAJOR REGIONAL
United Overseas Bank Ltd. ................................... SING 5,100 32,774 0.4
BANKS-MAJOR REGIONAL
----------
1,565,864
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F52
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Health Care (7.8%)
Roche Holding A.G. .......................................... SWTZ 11 $ 134,256 1.8
HEALTHCARE-DRUGS-GENERIC & OTHER
SmithKline Beecham PLC ...................................... UK 8,600 120,056 1.6
HEALTHCARE-DIVERSIFIED
Nycomed Amersham PLC ........................................ UK 17,200 118,341 1.6
HEALTHCARE-DRUGS-GENERIC & OTHER
Novartis A.G. ............................................... SWTZ 46 90,446 1.2
HEALTHCARE-DIVERSIFIED
Takeda Chemical Industries .................................. JPN 2,000 77,005 1.1
HEALTHCARE-DRUGS-GENERIC & OTHER
Richter Gedeon Rt.-GDR{\/} .................................. HGRY 770 32,918 0.5
MEDICAL-DRUGS
----------
573,022
----------
Consumer Non-Durables (7.0%)
Nestle S.A. ................................................. SWTZ 48 104,515 1.4
FOODS
Diageo PLC .................................................. UK 8,000 90,939 1.3
BEVERAGES-ALCOHOLIC
Benckiser N.V. .............................................. NETH 1,261 82,581 1.1
HOUSEHOLD PRODUCTS/NON-DURABLES
Asahi Breweries Ltd. ........................................ JPN 4,000 58,948 0.8
BEVERAGES-ALCOHOLIC
Foster's Brewing Group Ltd. ................................. AUSL 22,000 59,540 0.8
BEVERAGES-ALCOHOLIC
United Biscuits Holdings PLC ................................ UK 13,700 53,846 0.8
FOODS
Tabacalera S.A.-/- .......................................... SPN 2,071 52,187 0.7
TOBACCO
Adidas Salomon A.G. ......................................... GER 86 9,341 0.1
FOOTWEAR
----------
511,897
----------
Capital Goods (2.7%)
Mannesmann A.G. ............................................. GER 794 91,007 1.2
MACHINERY-DIVERSIFIED
Canon, Inc. ................................................. JPN 3,000 64,126 0.9
OFFICE EQUIPMENT & SUPPLIES
Fresenius A.G. .............................................. GER 224 47,182 0.6
MACHINERY-DIVERSIFIED
----------
202,315
----------
Technology (2.1%)
SAP A.G. .................................................... GER 138 65,853 0.9
COMPUTERS-SOFTWARE & SERVICES
Equant N.V.-/- .............................................. FR 673 46,825 0.6
COMPUTERS-PERIPHERALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F53
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Matsushita-Kotobuki Electronics Industries Ltd. ............. JPN 2,000 $ 43,193 0.6
ELECTRONICS-COMPONENT DISTRIBUTORS
----------
155,871
----------
Consumer Durables (1.1%)
Futuris Corp. Ltd. .......................................... AUSL 71,500 80,992 1.1
----------
AUTOMOBILE/TRUCK PARTS & TIRES
Energy (0.9%)
Mabuchi Motor Co., Ltd. ..................................... JPN 900 68,906 0.9
ELECTRICAL EQUIPMENT
---------- -----
TOTAL EQUITY INVESTMENTS (cost $4,598,244) .................... 4,987,857 68.1
---------- -----
<CAPTION>
VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (12.9%)
Federal Home Loan Mortgage Corp., 4.50%, due 1/4/99 ......... USD 948,000 947,645 12.9
---------- -----
TOTAL FIXED INCOME INVESTMENTS (cost $947,645) ................ 947,645
---------- -----
<CAPTION>
VALUE % OF NET
RIGHTS COUNTRY SHARES (NOTE 1) ASSETS
- --------------------------------------------------------------- -------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Telefonica de Espana Rights, expire 1/30/99 (cost $0) ....... SPN 1,144 1,014 --
---------- -----
TELEPHONE
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- --------------------------------------------------------------- ---------- -------------
<S> <C> <C> <C> <C>
Dated December 31, 1998, with State Street Bank & Trust Co.,
due January 4, 1999, for an effective yield of 4.50%
collateralized by $1,480,000 Treasury Notes, 7.125% due
9/30/99 (market value of collateral is 2,533,650 including
accrued interest). (cost $1,500,000) ...................... 1,500,000 20.5
---------- -----
TOTAL INVESTMENTS (cost $7,045,889) * ......................... 7,436,516 101.5
Other Assets and Liabilities .................................. (109,165) (1.5)
---------- -----
NET ASSETS .................................................... $7,327,351 100.0
---------- -----
---------- -----
</TABLE>
- --------------
-/- Non-income producing security
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $7,135,883 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 567,410
Unrealized depreciation: (266,777)
-------------
Net unrealized appreciation: $ 300,633
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
F54
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at December 31, 1998, was concentrated in
the following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS{D}
-------------------------------------------
FIXED INCOME SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & RIGHTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 4.1 4.1
Brazil (BRZL/BRL) .................... 0.8 0.8
Canada (CAN/CAD) ..................... 0.6 0.6
Finland (FIM/FIM) .................... 1.4 1.4
France (FR/FRF) ...................... 3.8 3.8
Germany (GER/DEM) .................... 3.4 3.4
Greece (GREC/GRD) .................... 0.2 0.2
Hungary (HGRY/HUF) ................... 0.5 0.5
India (IND/INR) ...................... 0.6 0.6
Ireland (IRE/IEP) .................... 0.8 0.8
Italy (ITLY/ITL) ..................... 3.1 3.1
Japan (JPN/JPY) ...................... 5.0 5.0
Netherlands (NETH/NLG) ............... 6.9 6.9
New Zealand (NZ/NZD) ................. 1.1 1.1
Portugal (PORT/PTE) .................. 2.2 2.2
Singapore (SING/SGD) ................. 0.4 0.4
Spain (SPN/ESP) ...................... 1.4 1.4
Sweden (SWDN/SEK) .................... 1.8 1.8
Switzerland (SWTZ/CHF) ............... 9.5 9.5
United Kingdom (UK/GBP) .............. 20.5 20.5
United States (US/USD) ............... 12.9 19.0 31.9
------ ----- ----- -----
Total ............................... 68.1 12.9 19.0 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $7,327,351.
The accompanying notes are an integral part of the financial statements.
F55
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
---------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $22,542,807 $8,725,483 $7,160,482 $15,614,394
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
At value............................ $22,019,159 $8,864,031 $7,357,108 $9,998,145
Repurchase Agreement, at value and
cost (Note 1)........................ 698,000 151,000 40,000 --
U.S. currency......................... 385 401 554 1,008
Foreign currencies (cost $149,503;
$67,307; $0; $54,678; $2,510;
$287,103; $38,246; $86,970; $7,456;
$0; $939; $0; $0; $3,030,
respectively)........................ 149,625 67,106 -- 54,617
Dividends and dividend withholding tax
reclaims receivable.................. -- -- -- 13,740
Interest and interest withholding tax
reclaims receivable.................. 493,346 149,640 123,102 --
Receivable for Fund shares sold....... 5,365 -- 2,500 4,011
Receivable for open forward foreign
currency contracts, net (Note 1)..... 893 -- -- --
Receivable for securities sold........ 1,729 1,572 -- --
Receivable from A I M Advisors, Inc.
(Note 2)............................. 46,045 37,445 23,670 42,687
Miscellaneous receivable.............. -- -- -- --
---------- ----------- ----------- ----------
Total assets........................ 23,414,547 9,271,195 7,546,934 10,114,208
---------- ----------- ----------- ----------
Liabilities:
Distribution payable (Note 1)......... -- -- -- --
Payable for custodian fees............ 3,454 1,690 1,768 850
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- --
Payable for fund accounting fees (Note
2)................................... 298 151 75 350
Payable for Fund shares repurchased
(Note 2)............................. 24,085 125,193 108,713 79,375
Payable for investment management and
administration fees (Note 2)......... 57,310 48,083 33,958 49,024
Payable for loan outstanding (Note
1)................................... -- -- -- 48,000
Payable for open forward foreign
currency contracts, net (Note 1)..... -- 1,842 -- --
Payable for printing and postage
expenses............................. -- 5,803 9,583 --
Payable for professional fees......... 17,081 9,670 6,912 752
Payable for registration and filing
fees................................. 782 977 965 --
Payable for securities purchased...... 1,284,969 271,820 -- --
Payable for Trustees' fees and
expenses (Note 2).................... 2,278 3,018 1,932 600
Other accrued expenses................ 2,445 2,257 1,857 --
---------- ----------- ----------- ----------
Total liabilities................... 1,392,702 470,504 165,763 178,951
---------- ----------- ----------- ----------
Net assets.............................. $22,021,845 $8,800,691 $7,381,171 $9,935,257
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
Shares outstanding...................... 1,777,818 738,856 609,681 1,034,282
Net asset value per share............... $ 12.39 $ 11.91 $ 12.11 $ 9.61
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $23,656,559 $9,014,285 $6,889,727 $18,494,051
Undistributed net investment income... 203,422 1,842 73,184 287,615
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (1,321,242) (353,306) 221,634 (3,230,073)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 6,754 (678) -- (87)
Net unrealized appreciation
(depreciation) of investments........ (523,648) 138,548 196,626 (5,616,249)
---------- ----------- ----------- ----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $22,021,845 $8,800,691 $7,381,171 $9,935,257
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F56
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES (cont'd)
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE NEW
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA PACIFIC
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $41,290,696 $46,048,018 $6,274,420 $4,736,767 $6,474,678 $29,386,117 $10,711,330
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
At value............................ $53,021,849 $62,108,334 $5,148,417 $5,862,265 $5,991,559 $38,911,133 $11,077,927
Repurchase Agreement, at value and
cost (Note 1)........................ 1,896,000 7,450,000 482,000 416,000 716,000 -- --
U.S. currency......................... 1,344 2,432 142 983 221 15 1,994
Foreign currencies (cost $149,503;
$67,307; $0; $54,678; $2,510;
$287,103; $38,246; $86,970; $7,456;
$0; $939; $0; $0; $3,030,
respectively)........................ 2,529 284,666 37,492 86,088 7,566 -- 939
Dividends and dividend withholding tax
reclaims receivable.................. 78,715 37,867 16,732 9,080 73,510 6,905 16,075
Interest and interest withholding tax
reclaims receivable.................. 386,293 931 60 52 90 -- --
Receivable for Fund shares sold....... 261,179 103,482 -- 330 330 2,295,522 468
Receivable for open forward foreign
currency contracts, net (Note 1)..... 2,904 -- -- -- -- -- --
Receivable for securities sold........ 9,416 21,629 -- -- 23,740 -- 9,597
Receivable from A I M Advisors, Inc.
(Note 2)............................. -- -- 84,518 -- -- -- --
Miscellaneous receivable.............. -- 582 -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total assets........................ 55,660,229 70,009,923 5,769,361 6,374,798 6,813,016 41,213,575 11,107,000
---------- ---------- ---------- ----------- ---------- ---------- ----------
Liabilities:
Distribution payable (Note 1)......... -- -- -- -- -- -- --
Payable for custodian fees............ 1,700 5,288 9,214 1,300 1,400 2,462 5,384
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- -- -- -- --
Payable for fund accounting fees (Note
2)................................... 1,335 2,600 -- 175 157 804 48
Payable for Fund shares repurchased
(Note 2)............................. 9,989 426,979 5,240 15,295 10,714 103,982 18,382
Payable for investment management and
administration fees (Note 2)......... 46,569 53,155 70,117 3,163 2,192 22,455 2,563
Payable for loan outstanding (Note
1)................................... -- -- -- -- -- 227,000 42,000
Payable for open forward foreign
currency contracts, net (Note 1)..... -- 42,397 -- -- -- -- --
Payable for printing and postage
expenses............................. 9,516 1,810 6,764 5,070 6,000 4,000 11,244
Payable for professional fees......... 10,857 4,952 18,994 8,197 9,800 11,356 11,730
Payable for registration and filing
fees................................. 2 -- 796 -- -- 1,380 1,257
Payable for securities purchased...... -- -- -- -- 371,131 -- --
Payable for Trustees' fees and
expenses (Note 2).................... -- 482 2,157 -- 200 2,542 1,202
Other accrued expenses................ -- 12,925 4,669 217 15,822 4,562 3,165
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total liabilities................... 79,968 550,588 117,951 33,417 417,416 380,543 96,975
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets.............................. $55,580,261 $69,459,335 $5,651,410 $6,341,381 $6,395,600 $40,833,032 $11,010,025
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Shares outstanding...................... 2,584,126 3,362,824 844,749 367,346 586,487 2,026,413 1,262,519
Net asset value per share............... $ 21.51 $ 20.66 $ 6.69 $ 17.26 $ 10.90 $ 20.15 $ 8.72
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $35,751,068 $46,957,472 $11,489,069 $5,388,985 $11,156,709 $32,971,320 $14,709,395
Undistributed net investment income... 721,621 -- 76,434 104,883 111,308 -- 239,972
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... 7,367,141 6,486,142 (4,787,285) (277,149) (4,389,741) (1,663,304) (4,305,840)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 9,278 (44,595) (805) (836) 443 -- (99)
Net unrealized appreciation
(depreciation) of investments........ 11,731,153 16,060,316 (1,126,003) 1,125,498 (483,119) 9,525,016 366,597
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $55,580,261 $69,459,335 $5,651,410 $6,341,381 $6,395,600 $40,833,032 $11,010,025
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
---------- ---------- -----------
<S> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $25,928,330 $22,593,818 $5,545,889
---------- ---------- -----------
---------- ---------- -----------
At value............................ $29,615,087 $22,593,818 $5,936,516
Repurchase Agreement, at value and
cost (Note 1)........................ 2,136,000 12,000,000 1,500,000
U.S. currency......................... 96 488 826
Foreign currencies (cost $149,503;
$67,307; $0; $54,678; $2,510;
$287,103; $38,246; $86,970; $7,456;
$0; $939; $0; $0; $3,030,
respectively)........................ -- -- 3,089
Dividends and dividend withholding tax
reclaims receivable.................. 37,738 -- 7,467
Interest and interest withholding tax
reclaims receivable.................. 267 43,601 188
Receivable for Fund shares sold....... 912,029 285,901 --
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- -- --
Receivable for securities sold........ -- -- --
Receivable from A I M Advisors, Inc.
(Note 2)............................. 11,804 -- --
Miscellaneous receivable.............. 173 -- --
---------- ---------- -----------
Total assets........................ 32,713,194 34,923,808 7,448,086
---------- ---------- -----------
Liabilities:
Distribution payable (Note 1)......... -- 5,739 --
Payable for custodian fees............ 429 1,499 11,120
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- 11,872
Payable for fund accounting fees (Note
2)................................... 653 839 155
Payable for Fund shares repurchased
(Note 2)............................. 56,493 3,299,963 64,334
Payable for investment management and
administration fees (Note 2)......... 28,023 20,734 --
Payable for loan outstanding (Note
1)................................... -- -- --
Payable for open forward foreign
currency contracts, net (Note 1)..... -- -- --
Payable for printing and postage
expenses............................. 162 515 10,454
Payable for professional fees......... 4,316 4,268 22,174
Payable for registration and filing
fees................................. 2,385 588 --
Payable for securities purchased...... -- -- --
Payable for Trustees' fees and
expenses (Note 2).................... 818 290 --
Other accrued expenses................ 3,024 1,642 626
---------- ---------- -----------
Total liabilities................... 96,303 3,336,077 120,735
---------- ---------- -----------
Net assets.............................. $32,616,891 $31,587,731 $7,327,351
---------- ---------- -----------
---------- ---------- -----------
Shares outstanding...................... 1,398,753 31,587,731 617,476
Net asset value per share............... $ 23.32 $ 1.00 $ 11.87
---------- ---------- -----------
---------- ---------- -----------
Net assets consist of:
Paid in capital (Note 4).............. $20,088,530 $31,587,731 $6,552,375
Undistributed net investment income... 121,518 -- 80,404
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... 8,719,226 -- 315,666
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 860 -- (11,721)
Net unrealized appreciation
(depreciation) of investments........ 3,686,757 -- 390,627
---------- ---------- -----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $32,616,891 $31,587,731 $7,327,351
---------- ---------- -----------
---------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F57
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Year ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ -- $ -- $ -- $ 542,574
Interest income....................... 2,039,809 584,579 457,283 7,808
Securities lending income............. 32,575 5,624 -- 11,570
----------- ---------- ---------- -----------
Total investment income............. 2,072,384 590,203 457,283 561,952
----------- ---------- ---------- -----------
Expenses:
Amortization of organization costs
(Note 1)............................. 720 720 720 720
Custodian fees (Note 1)............... 25,915 12,330 4,122 20,218
Fund accounting fees (Note 2)......... 6,780 2,376 1,917 4,156
Interest expense (Note 1)............. 39,886 5,958 4,871 22,294
Investment management and
administration fees (Note 2)......... 186,706 65,332 55,012 167,381
Printing and postage expenses......... 14,906 12,205 13,140 38,378
Professional fees..................... 57,616 29,036 19,740 20,142
Registration and filing fees.......... -- -- -- 658
Trustees' fees and expenses (Note
2)................................... 1,460 1,460 1,460 931
Other expenses........................ 1,099 1,095 908 2,719
----------- ---------- ---------- -----------
Total expenses before reimbursements
and reductions..................... 335,088 130,512 101,890 277,597
----------- ---------- ---------- -----------
Expenses reimbursed (Note 2)...... (46,045) (37,445 ) (23,670) (45,215)
Expense reductions (Note 5)....... -- -- -- --
----------- ---------- ---------- -----------
Total net expenses.................. 289,043 93,067 78,220 232,382
----------- ---------- ---------- -----------
Net investment income (loss)............ 1,783,341 497,136 379,063 329,570
----------- ---------- ---------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... (1,359,171) 303,460 239,229 (3,213,894)
Net realized gain (loss) on foreign
currency transactions................ 330,119 855,982 -- (41,935)
----------- ---------- ---------- -----------
Net realized gain (loss) during the
year............................... (1,029,052) 1,159,442 239,229 (3,255,829)
----------- ---------- ---------- -----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (308,728) (858,412 ) -- (192)
Net change in unrealized appreciation
(depreciation) of investments........ (606,626) 226,091 45,216 (5,882,978)
----------- ---------- ---------- -----------
Net unrealized appreciation
(depreciation) during the period... (915,354) (632,321 ) 45,216 (5,883,170)
----------- ---------- ---------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... (1,944,406) 527,121 284,445 (9,138,999)
----------- ---------- ---------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $ (161,065) $1,024,257 $663,508 $(8,809,429)
----------- ---------- ---------- -----------
----------- ---------- ---------- -----------
*Net of foreign withholding tax of:.... $ -- $ -- $ -- $ 65,276
----------- ---------- ---------- -----------
----------- ---------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F58
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS (cont'd)
Year ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
------------ ----------- ----------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 1,159,850 $ 494,124 $ 262,709 $162,451 $ 231,004 $ 102,506
Interest income....................... 863,930 216,084 25,479 32,901 36,141 18,859
Securities lending income............. 33,804 52,374 5,764 2,191 1,057 23,815
------------ ----------- ----------- -------------- ----------- -----------
Total investment income............. 2,057,584 762,582 293,952 197,543 268,202 145,180
------------ ----------- ----------- -------------- ----------- -----------
Expenses:
Amortization of organization costs
(Note 1)............................. -- 3,330 -- -- -- 720
Custodian fees (Note 1)............... 30,683 37,233 62,640 11,171 13,346 9,939
Fund accounting fees (Note 2)......... 13,856 19,128 2,661 1,801 2,994 9,574
Interest expense (Note 1)............. 23,069 7,062 16,966 -- 4,560 32,363
Investment management and
administration fees (Note 2)......... 538,287 682,113 95,192 75,448 109,635 301,555
Printing and postage expenses......... 29,737 17,085 14,235 10,293 13,323 21,901
Professional fees..................... 40,472 37,251 28,470 27,376 23,960 24,900
Registration and filing fees.......... -- -- -- -- -- 424
Trustees' fees and expenses (Note
2)................................... -- 348 1,460 -- -- 2,089
Other expenses........................ 10,215 569 1,828 -- 288 10,049
------------ ----------- ----------- -------------- ----------- -----------
Total expenses before reimbursements
and reductions..................... 686,319 804,119 223,452 126,089 168,106 413,514
------------ ----------- ----------- -------------- ----------- -----------
Expenses reimbursed (Note 2)...... -- -- (84,518) (31,784) (26,493) --
Expense reductions (Note 5)....... (1,847) (4,242 ) (828) (526) (5,815) (4,222)
------------ ----------- ----------- -------------- ----------- -----------
Total net expenses.................. 684,472 799,877 138,106 93,779 135,798 409,292
------------ ----------- ----------- -------------- ----------- -----------
Net investment income (loss)............ 1,373,112 (37,295 ) 155,846 103,764 132,404 (264,112)
------------ ----------- ----------- -------------- ----------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 7,390,036 6,711,384 (4,658,345) (15,219) (4,340,007) (1,560,556)
Net realized gain (loss) on foreign
currency transactions................ (143,260) (167,467 ) (77,850) (58,200) 8,585 --
------------ ----------- ----------- -------------- ----------- -----------
Net realized gain (loss) during the
year............................... 7,246,776 6,543,917 (4,736,195) (73,419) (4,331,422) (1,560,556)
------------ ----------- ----------- -------------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 23,022 (236,656 ) 5,583 960 (125) --
Net change in unrealized appreciation
(depreciation) of investments........ 988,999 7,115,506 553,200 459,712 (369,811) 4,630,498
------------ ----------- ----------- -------------- ----------- -----------
Net unrealized appreciation
(depreciation) during the period... 1,012,021 6,878,850 558,783 460,672 (369,936) 4,630,498
------------ ----------- ----------- -------------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 8,258,797 13,422,767 (4,177,412) 387,253 (4,701,358) 3,069,942
------------ ----------- ----------- -------------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $ 9,631,909 $13,385,472 $(4,021,566) $491,017 $(4,568,954) $ 2,805,830
------------ ----------- ----------- -------------- ----------- -----------
------------ ----------- ----------- -------------- ----------- -----------
*Net of foreign withholding tax of:.... $ 99,105 $ 47,128 $ 14,668 $ 14,982 $ 17,802 $ 518
------------ ----------- ----------- -------------- ----------- -----------
------------ ----------- ----------- -------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 346,496 $ 578,504 $ -- $126,338
Interest income....................... 100,665 74,905 1,739,586 63,670
Securities lending income............. 23,633 38,173 -- 5,867
----------- ---------- ---------- -------------
Total investment income............. 470,794 691,582 1,739,586 195,875
----------- ---------- ---------- -------------
Expenses:
Amortization of organization costs
(Note 1)............................. 720 720 720 --
Custodian fees (Note 1)............... 26,067 42,370 10,585 19,100
Fund accounting fees (Note 2)......... 2,857 9,969 8,812 1,897
Interest expense (Note 1)............. 2,315 118,069 -- 6,583
Investment management and
administration fees (Note 2)......... 130,473 362,517 160,063 67,875
Printing and postage expenses......... 39,857 15,390 16,965 9,273
Professional fees..................... 26,745 30,345 32,970 18,682
Registration and filing fees.......... 486 730 -- --
Trustees' fees and expenses (Note
2)................................... 2,015 1,825 1,460 167
Other expenses........................ 584 1,094 1,826 631
----------- ---------- ---------- -------------
Total expenses before reimbursements
and reductions..................... 232,119 583,029 233,401 124,208
----------- ---------- ---------- -------------
Expenses reimbursed (Note 2)...... (64,785) (11,804) -- (32,657)
Expense reductions (Note 5)....... (4,911) (1,171) -- (272)
----------- ---------- ---------- -------------
Total net expenses.................. 162,423 570,054 233,401 91,279
----------- ---------- ---------- -------------
Net investment income (loss)............ 308,371 121,528 1,506,185 104,596
----------- ---------- ---------- -------------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... (3,788,318) 8,701,423 -- 337,397
Net realized gain (loss) on foreign
currency transactions................ 181,208 20,217 -- 19,282
----------- ---------- ---------- -------------
Net realized gain (loss) during the
year............................... (3,607,110) 8,721,640 -- 356,679
----------- ---------- ---------- -------------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (105,425) 3,427 -- (47,735)
Net change in unrealized appreciation
(depreciation) of investments........ 2,848,653 (865,332) -- 137,293
----------- ---------- ---------- -------------
Net unrealized appreciation
(depreciation) during the period... 2,743,228 (861,905) -- 89,558
----------- ---------- ---------- -------------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... (863,882) 7,859,735 -- 446,237
----------- ---------- ---------- -------------
Net increase (decrease) in net assets
resulting from operations.............. $ (555,511) $7,981,263 $1,506,185 $550,833
----------- ---------- ---------- -------------
----------- ---------- ---------- -------------
*Net of foreign withholding tax of:.... $ 9,235 $ 72,293 $ -- $ 11,991
----------- ---------- ---------- -------------
----------- ---------- ---------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F59
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 1,783,341 $ 497,136 $ 379,063 $ 329,570
Net realized gain (loss) on
investments and foreign currency
transactions......................... (1,029,052) 1,159,442 239,229 (3,255,829)
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (308,728) (858,412) -- (192)
Net change in unrealized appreciation
(depreciation) of investments........ (606,626) 226,091 45,216 (5,882,978)
------------- ------------- ------------- -----------
Net increase (decrease) in net
assets resulting from operations... (161,065) 1,024,257 663,508 (8,809,429)
------------- ------------- ------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (1,758,665) (463,518) (375,646) (304,832)
From net realized gain on
investments.......................... -- -- (107) (147,131)
In excess of net investment income.... -- (12,065) -- --
------------- ------------- ------------- -----------
Total distributions................. (1,758,665) (475,583) (375,753) (451,963)
------------- ------------- ------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 25,526,105 20,698,834 14,866,467 18,570,157
Decrease from capital shares
repurchased.......................... (30,081,222) (20,697,844) (15,145,687) (28,159,725)
------------- ------------- ------------- -----------
Net increase (decrease) from capital
share transactions................. (4,555,117) 990 (279,220) (9,589,568)
------------- ------------- ------------- -----------
Total increase (decrease) in net
assets................................. (6,474,847) 549,664 8,535 (18,850,960)
Net assets:
Beginning of year..................... 28,496,692 8,251,027 7,372,636 28,786,217
------------- ------------- ------------- -----------
End of year *......................... $ 22,021,845 $ 8,800,691 $ 7,381,171 $ 9,935,257
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
*Includes undistributed net
investment income of:................ $ 203,422 $ 1,842 $ 73,184 $ 287,615
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1997
GT GLOBAL
--------------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 2,156,400 $ 591,394 $ 312,388 $ 404,383
Net realized gain (loss) on
investments and foreign currency
transactions......................... 1,618,244 (738,174) (1,476 ) 3,569,822
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 271,762 803,351 (2,603 ) 2,156
Net change in unrealized appreciation
(depreciation) of investments........ (1,968,623) (292,630) 153,207 (244,181)
------------- ------------ ------------ -------------
Net increase (decrease) in net
assets resulting from operations... 2,077,783 363,941 461,516 3,732,180
------------- ------------ ------------ -------------
Distributions to shareholders: (Note 1)
From net investment income............ (2,041,389) (616,309) (262,504 ) --
From net realized gain on
investments.......................... -- -- (42,460 ) --
------------- ------------ ------------ -------------
Total distributions................. (2,041,389) (616,309) (304,964 ) --
------------- ------------ ------------ -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 37,352,357 4,845,991 6,057,200 50,446,691
Decrease from capital shares
repurchased.......................... (40,609,980) (6,739,965) (4,324,042 ) (48,320,307)
------------- ------------ ------------ -------------
Net increase (decrease) from capital
share transactions................. (3,257,623) (1,893,974) 1,733,158 2,126,384
------------- ------------ ------------ -------------
Total increase (decrease) in net
assets................................. (3,221,229) (2,146,342) 1,889,710 5,858,564
Net assets:
Beginning of year..................... 31,717,921 10,397,369 5,482,926 22,927,653
------------- ------------ ------------ -------------
End of year * *....................... $ 28,496,692 $ 8,251,027 $ 7,372,636 $ 28,786,217
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
* *Includes undistributed net
investment income of:................ $ 397,677 $ 98,996 $ 70,621 $ 304,812
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F60
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (cont'd)
For the year ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 1,373,112 $ (37,295) $ 155,846 $ 103,764 $ 132,404 $ (264,112)
Net realized gain (loss) on
investments and foreign currency
transactions......................... 7,246,776 6,543,917 (4,736,195) (73,419 ) (4,331,422) (1,560,556)
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 23,022 (236,656) 5,583 960 (125) --
Net change in unrealized appreciation
(depreciation) of investments........ 988,999 7,115,506 553,200 459,712 (369,811) 4,630,498
------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) in net
assets resulting from operations... 9,631,909 13,385,472 (4,021,566) 491,017 (4,568,954) 2,805,830
------------- ------------ ------------ ------------ ------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (1,163,351) -- (4,648) (76,384 ) -- --
From net realized gain on
investments.......................... (689,824) (5,760,403) (832,035) -- (1,999,188) (6,036,407)
In excess of net investment income.... -- -- -- -- -- --
------------- ------------ ------------ ------------ ------------- -------------
Total distributions................. (1,853,175) (5,760,403) (836,683) (76,384 ) (1,999,188) (6,036,407)
------------- ------------ ------------ ------------ ------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 82,103,169 55,176,617 35,674,006 1,873,104 18,226,922 70,317,597
Decrease from capital shares
repurchased.......................... (84,657,906) (61,528,494) (41,673,104) (4,691,541 ) (21,972,187) (70,230,812)
------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) from capital
share transactions................. (2,554,737) (6,351,877) (5,999,098) (2,818,437 ) (3,745,265) 86,785
------------- ------------ ------------ ------------ ------------- -------------
Total increase (decrease) in net
assets................................. 5,223,997 1,273,192 (10,857,347) (2,403,804 ) (10,313,407) (3,143,792)
Net assets:
Beginning of year..................... 50,356,264 68,186,143 16,508,757 8,745,185 16,709,007 43,976,824
------------- ------------ ------------ ------------ ------------- -------------
End of year........................... $ 55,580,261 $ 69,459,335 $ 5,651,410 $ 6,341,381 $ 6,395,600 $ 40,833,032
------------- ------------ ------------ ------------ ------------- -------------
------------- ------------ ------------ ------------ ------------- -------------
*Includes undistributed net
investment income of:................ $ 721,627 $ -- $ 76,434 $ 104,883 $ 111,308 $ --
------------- ------------ ------------ ------------ ------------- -------------
------------- ------------ ------------ ------------ ------------- -------------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
-------------- -------------- -------------- -----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income (loss).......... $ 308,371 $ 121,528 $ 1,506,185 $ 104,596
Net realized gain (loss) on
investments and foreign currency
transactions......................... (3,607,110) 8,721,640 -- 356,679
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (105,425) 3,427 -- (47,735 )
Net change in unrealized appreciation
(depreciation) of investments........ 2,848,653 (865,332) -- 137,293
-------------- -------------- -------------- -----------
Net increase (decrease) in net
assets resulting from operations... (555,511) 7,981,263 1,506,185 550,833
-------------- -------------- -------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (351,881) (60,959) (1,506,185) (56,951 )
From net realized gain on
investments.......................... -- (3,918,823) -- (471,250 )
In excess of net investment income.... -- -- -- --
-------------- -------------- -------------- -----------
Total distributions................. (351,881) (3,979,782) (1,506,185) (528,201 )
-------------- -------------- -------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 174,054,677 354,305,731 727,175,801 79,400,263
Decrease from capital shares
repurchased.......................... (178,627,344) (353,100,071) (722,552,277) (78,024,723)
-------------- -------------- -------------- -----------
Net increase (decrease) from capital
share transactions................. (4,572,667) 1,205,660 4,623,524 1,375,540
-------------- -------------- -------------- -----------
Total increase (decrease) in net
assets................................. (5,480,059) 5,207,141 4,623,524 1,398,172
Net assets:
Beginning of year..................... 16,490,084 27,409,750 26,964,207 5,929,179
-------------- -------------- -------------- -----------
End of year........................... $ 11,010,025 $ 32,616,891 $ 31,587,731 $7,327,351
-------------- -------------- -------------- -----------
-------------- -------------- -------------- -----------
*Includes undistributed net
investment income of:................ $ 239,972 $ 121,518 $ -- 80,404
-------------- -------------- -------------- -----------
-------------- -------------- -------------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1997
GT GLOBAL
---------------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net
assets
Operations:
Net investment income
(loss)..................... $ 1,205,645 $ (68,334) $ 221,606 $ 83,258 $ (29,831) $ (142,918)
Net realized gain (loss) on
investments and foreign
currency transactions...... 1,630,452 5,806,561 492,304 (206,416 ) 2,034,294 6,277,204
Net change in unrealized
appreciation (depreciation)
on translation of assets
and liabilities in foreign
currencies................. (54,835) 167,417 (9,023) (1,800 ) 2,250 --
Net change in unrealized
appreciation (depreciation)
of investments............. 3,876,889 2,996,284 (2,699,474) 442,473 (1,935,169) (372,530)
------------- ------------- ------------- ------------ ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... 6,658,151 8,901,928 (1,994,587) 317,515 71,544 5,761,756
------------- ------------- ------------- ------------ ------------- -------------
Distributions to shareholders:
(Note 1)
From net investment
income..................... (1,300,804) -- (84,900) (47,833 ) -- (196,399)
From net realized gain on
investments................ (90,528) (7,777,355) (1,283,734) (431,226 ) (762,160) (1,554,377)
------------- ------------- ------------- ------------ ------------- -------------
Total distributions....... (1,391,332) (7,777,355) (1,368,634) (479,059 ) (762,160) (1,750,776)
------------- ------------- ------------- ------------ ------------- -------------
Capital share transactions:
(Note 4)
Increase from capital shares
sold and reinvested........ 80,082,075 53,743,901 65,386,565 6,628,609 42,957,139 51,554,136
Decrease from capital shares
repurchased................ (71,425,393) (49,940,160) (63,118,511) (3,775,850 ) (41,865,469) (53,234,901)
------------- ------------- ------------- ------------ ------------- -------------
Net increase (decrease)
from capital share
transactions............. 8,656,682 3,803,741 2,268,054 2,852,759 1,091,670 (1,680,765)
------------- ------------- ------------- ------------ ------------- -------------
Total increase (decrease) in
net assets................... 13,923,501 4,928,314 (1,095,167) 2,691,215 401,054 2,330,215
Net assets:
Beginning of year........... 36,432,763 63,257,829 17,603,924 6,053,970 16,307,953 41,646,609
------------- ------------- ------------- ------------ ------------- -------------
End of year * *............. $ 50,356,264 $ 68,186,143 $ 16,508,757 $ 8,745,185 $ 16,709,007 $ 43,976,824
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
* *Includes undistributed
net investment income
of:........................ $ 643,714 $ -- $ 168,757 $ 77,503 $ -- $ --
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Increase (decrease) in net
assets
Operations:
Net investment income
(loss)..................... $ 415,628 $ 62,782 $ 1,033,856 $ 69,499
Net realized gain (loss) on
investments and foreign
currency transactions...... (100,720) 4,084,568 -- 501,515
Net change in unrealized
appreciation (depreciation)
on translation of assets
and liabilities in foreign
currencies................. 105,422 (4,948) -- 19,339
Net change in unrealized
appreciation (depreciation)
of investments............. (10,613,599) 417,896 -- (52,826)
-------------- -------------- -------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... (10,193,269) 4,560,298 1,033,856 537,527
-------------- -------------- -------------- -------------
Distributions to shareholders:
(Note 1)
From net investment
income..................... (178,145) (69,048) (1,033,856) (7,912)
From net realized gain on
investments................ (128,263) (2,404,127) -- --
-------------- -------------- -------------- -------------
Total distributions....... (306,408) (2,473,175) (1,033,856) (7,912)
-------------- -------------- -------------- -------------
Capital share transactions:
(Note 4)
Increase from capital shares
sold and reinvested........ 181,437,283 147,172,457 524,518,140 35,266,039
Decrease from capital shares
repurchased................ (187,117,722) (146,386,879) (517,347,993) (34,648,323)
-------------- -------------- -------------- -------------
Net increase (decrease)
from capital share
transactions............. (5,680,439) 785,578 7,170,147 617,716
-------------- -------------- -------------- -------------
Total increase (decrease) in
net assets................... (16,180,116) 2,872,701 7,170,147 1,147,331
Net assets:
Beginning of year........... 32,670,200 24,537,049 19,794,060 4,781,848
-------------- -------------- -------------- -------------
End of year * *............. $ 16,490,084 $ 27,409,750 $ 26,964,207 $ 5,929,179
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
* *Includes undistributed
net investment income
of:........................ $ 351,912 $ 60,949 $ -- $ 56,757
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F61
<PAGE>
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
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 13.39 $ 13.38 $ 11.86 $ 10.82 $ 14.57
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.97(a) 1.00(b) 0.95(c) 1.07(d) 1.71(e)
Net realized and unrealized gain
(loss) on investments................ (1.05) (0.07) 1.50 0.93 (4.17)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... (0.08) 0.93 2.45 2.00 (2.46)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.92) (0.92) (0.85) (0.96) (0.79)
From net realized gain on
investments.......................... -- -- (0.08) -- (0.45)
In excess of net investment income.... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- (0.05)
-------- -------- -------- -------- --------
Total distributions................. (0.92) (0.92) (0.93) (0.96) (1.29)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 12.39 $ 13.39 $ 13.38 $ 11.86 $ 10.82
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ (0.61)% 7.14% 21.58% 19.50% (17.09)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $22,022 $28,497 $31,718 $25,345 $23,367
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 7.16% 7.20% 7.74% 9.59% 7.58%
Without reimbursement and/or expense
reductions........................... 6.97% 7.03% 7.59% 9.35% 7.43%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.00% 0.90% 0.99% 1.00% 1.00%
Without reimbursement and/or expense
reductions........................... 1.19% 1.07% 1.14% 1.24% 1.15%
Ratio of interest expense to average net
assets................................. 0.16% --% --% --% --%
Portfolio turnover...................... 282% 185% 210% 193% 313%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
--------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 16.95 $ 14.80 $ 12.42 $ 19.17 $ 17.68
-------- -------- -------- -------- ----------
Net investment income (loss)...................................... 0.39(a) 0.24(b) 0.27(c) 0.51(d) 0.11(e)
Net realized and unrealized gain (loss) on investments............ (7.36) 1.91 2.49 (5.10) 1.49
-------- -------- -------- -------- ----------
Net increase (decrease) resulting from operations............... (6.97) 2.15 2.76 (4.59) 1.60
-------- -------- -------- -------- ----------
Distributions to shareholders:
From net investment income........................................ (0.25) -- (0.37) (0.16) (0.04)
From net realized gain on investments............................. (0.12) -- -- (2.00) (0.07)
In excess of net investment income................................ -- -- (0.01) -- --
-------- -------- -------- -------- ----------
Total distributions............................................. (0.37) -- (0.38) (2.16) (0.11)
-------- -------- -------- -------- ----------
Net asset value, end of period...................................... $ 9.61 $ 16.95 $ 14.80 $ 12.42 $ 19.17
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Total investment return (f)........................................ (41.71)% 14.53% 22.48% (24.14)% 9.14%
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $ 9,935 $28,786 $22,928 $19,771 $26,631
Ratio of net investment income (loss) to average net assets:
With reimbursement and/or expense reductions (Notes 2 & 5)........ 1.97% 1.36% 1.94% 4.43% 0.82%
Without reimbursement and/or expense reductions................... 1.70% 1.21% 1.69% 3.92% 0.49%
Ratio of expenses to average net assets excluding interest expense:
With reimbursement and/or expense reductions (Notes 2 & 5)........ 1.25% 1.25% 1.17% 1.18% 1.25%
Without reimbursement and/or expense reductions................... 1.52% 1.40% 1.42% 1.69% 1.58%
Ratio of interest expense to average net assets..................... 0.14% --% --% --% --%
Portfolio turnover.................................................. 43% 141% 102% 140% 185%
</TABLE>
- ------------------------
(a) Includes reimbursement of Fund operating expenses of $0.02 for the
Variable Strategic Income Fund, $0.05 for the Variable Global
Government Income Fund, $0.04 for the Variable U.S. Government Income
Fund, $0.04 for the Variable Latin America Fund and $0.01 for the
Variable Telecommunications Fund (Note 2).
(b) Includes reimbursement of Fund operating expenses of $0.01 for the
Variable Strategic Income Fund, $0.06 for the Variable Global
Government Income Fund, $0.06 for Variable U.S. Government Income
Fund, $0.02 for the Variable Latin America Fund, and $0.00 for the
Variable Growth & Income Fund (Note 2).
(c) Includes reimbursement of Fund operating expenses of $0.02 for the
Variable Strategic Income Fund, $0.06 for the Variable Global
Government Income Fund, $0.08 for the Variable U.S. Government Income
Fund, $0.02 for the Variable Latin America Fund, and $0.01 for the
Variable Growth & Income Fund (Note 2).
(d) Includes reimbursement 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, and $0.00 for the Variable
Telecommunications Fund (Note 2).
(e) Includes reimbursement 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, and $0.01 for the Variable
Telecommunications Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F62
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
--------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.17 $ 11.43 $ 11.51 $ 10.63 $ 12.53
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.67(a) 0.82(b) 0.72(c) 0.79(d) 0.77(e)
Net realized and unrealized gain
(loss) on investments................ 0.71 (0.34) (0.06) 0.84 (1.85)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 1.38 0.48 0.66 1.63 (1.08)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.62) (0.74) (0.74) (0.75) (0.73)
From net realized gain on
investments.......................... -- -- -- -- --
In excess of net investment income.... (0.02) -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- (0.09)
-------- -------- -------- -------- --------
Total distributions................. (0.64) (0.74) (0.74) (0.75) (0.82)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 11.91 $ 11.17 $ 11.43 $ 11.51 $ 10.63
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ 12.69% 4.37% 6.17% 15.85% (8.70)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 8,801 $ 8,251 $10,397 $11,944 $ 9,654
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 5.71% 6.33% 6.32% 7.03% 6.89%
Without reimbursement and/or expense
reductions........................... 5.28% 5.74% 5.80% 6.37% 6.21%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.00% 0.95% 0.95% 1.00% 1.00%
Without reimbursement and/or expense
reductions........................... 1.43% 1.54% 1.47% 1.66% 1.68%
Ratio of interest expense to average net
assets................................. 0.07% --% --% --% --%
Portfolio turnover...................... 224% 235% 235% 394% 350%
<CAPTION>
GT GLOBAL
--------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
--------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.70 $ 11.41 $ 11.74 $ 10.79 $ 12.23
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.63(a) 0.63(b) 0.60(c) 0.62(d) 0.63(e)
Net realized and unrealized gain
(loss) on investments................ 0.40 0.29 (0.35) 0.93 (1.39)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 1.03 0.92 0.25 1.55 (0.76)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.62) (0.54) (0.58) (0.60) (0.62)
From net realized gain on
investments.......................... -- (0.09) -- -- (0.06)
In excess of net investment income.... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (0.62) (0.63) (0.58) (0.60) (0.68)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 12.11 $ 11.70 $ 11.41 $ 11.74 $ 10.79
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ 9.06% 8.30% 2.23% 14.73% (6.27)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 7,381 $ 7,373 $ 5,483 $ 5,992 $ 2,415
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 5.17% 5.54% 5.24% 5.43% 5.53%
Without reimbursement and/or expense
reductions........................... 4.85% 4.92% 4.49% 3.87% 1.29%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.00% 1.00% 1.00% 1.00% 0.38%
Without reimbursement and/or expense
reductions........................... 1.32% 1.62% 1.75% 2.56% 4.63%
Ratio of interest expense to average net
assets................................. 0.07% --% --% --% --%
Portfolio turnover...................... 231% 143% 49% 186% 34%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 18.60 $ 16.51 $ 14.57 $ 12.99 $ 13.77
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.53(a) 0.41(b) 0.53(c) 0.52(d) 0.46(e)
Net realized and unrealized gain
(loss) on investments................ 3.08 2.23 1.81 1.46 (0.85)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 3.61 2.64 2.34 1.98 (0.39)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.44) (0.51) (0.35) (0.40) (0.39)
From net realized gain on
investments.......................... (0.26) (0.04) (0.05) -- --
In excess of net investment income.... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (0.70) (0.55) (0.40) (0.40) (0.39)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 21.51 $ 18.60 $ 16.51 $ 14.57 $ 12.99
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ 19.60% 16.22% 16.33% 15.49% (2.85)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $55,580 $50,356 $36,433 $30,565 $25,580
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 2.53% 2.86% 3.58% 3.87% 3.69%
Without reimbursement and/or expense
reductions........................... 2.53% 2.72% 3.48% 3.66% 3.45%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.22% 1.13% 1.20% 1.23% 1.25%
Without reimbursement and/or expense
reductions........................... 1.22% 1.27% 1.30% 1.44% 1.49%
Ratio of interest expense to average net
assets................................. 0.04% --% --% --% --%
Portfolio turnover...................... 72% 60% 57% 73% 53%
<CAPTION>
GT GLOBAL
------------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 18.40 $ 18.14 $ 16.87 $ 13.98 $ 13.07
-------- -------- -------- -------- --------
Net investment income (loss).......... (0.01) (a) (0.02) (0.05) 0.02(d) 0.01(e)
Net realized and unrealized gain
(loss) on investments................ 3.99 2.59 3.31 3.26 0.92
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 3.98 2.57 3.26 3.28 0.93
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ -- -- (0.02) (0.03) (0.02)
From net realized gain on
investments.......................... (1.72) (2.31) (1.97) (0.36) --
In excess of net investment income.... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (1.72) (2.31) (1.99) (0.39) (0.02)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 20.66 $ 18.40 $ 18.14 $ 16.87 $ 13.98
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ 22.11% 14.56% 19.34% 23.66% 7.15%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $69,459 $68,186 $63,258 $50,778 $36,029
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. (0.04)% (0.10)% (0.26)% 0.16% 0.31%
Without reimbursement and/or expense
reductions........................... (0.05)% (0.15)% (0.31)% 0.10% 0.07%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.16% 1.11% 1.12% 1.20% 1.25%
Without reimbursement and/or expense
reductions........................... 1.17% 1.16% 1.17% 1.26% 1.49%
Ratio of interest expense to average net
assets................................. 0.01% --% --% --% --%
Portfolio turnover...................... 73% 91% 77% 70% 81%
</TABLE>
- ------------------------
(f) 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.
The accompanying notes are an integral part of the financial statements.
F63
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
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 EMERGING MARKETS FUND
------------------------------------------------------------------
JULY 5, 1994
(COMMENCEMENT OF
YEAR ENDED DECEMBER 31, OPERATIONS) TO
--------------------------------------------- DECEMBER 31,
1998 1997 1996 1995 1994
------- -------- -------- ------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period............................ $11.57 $ 14.26 $ 10.88 $11.89 $12.00
------- -------- -------- ------- --------
Net investment income (loss).................................. 0.27(a) 0.15(b) 0.11(c) 0.14(d) 0.07(e)
Net realized and unrealized gain (loss) on investments........ (4.34) (1.89) 3.27 (1.04) (0.05)
------- -------- -------- ------- --------
Net increase (decrease) resulting from operations........... (4.07) (1.74) 3.38 (0.90) 0.02
------- -------- -------- ------- --------
Distributions to shareholders:
From net investment income.................................... -- (0.06) -- (0.09) (0.07)
From net realized gain on investments......................... (0.81) (0.89) -- -- --
In excess of net investment income............................ -- -- -- -- --
In excess of net realized gain on investments................. -- -- -- -- (0.06)
Return of capital............................................. -- -- -- (0.02) --
------- -------- -------- ------- --------
Total distributions......................................... (0.81) (0.95) -- (0.11) (0.13)
------- -------- -------- ------- --------
Net asset value, end of period.................................. $ 6.69 $ 11.57 $ 14.26 $10.88 $11.89
------- -------- -------- ------- --------
------- -------- -------- ------- --------
Total investment return (f) +.................................. (36.90)% (13.76)% 31.07% (7.54)% 0.12%
------- -------- -------- ------- --------
------- -------- -------- ------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's)............................ $5,651 $16,509 $17,604 $8,983 $7,267
Ratio of net investment income (loss) to average net assets:
With reimbursement and/or expense reductions (Notes 2 &
5)++......................................................... 1.61% 1.05% 0.89% 1.55% 4.10%
Without reimbursement and/or expense reductions++............. 0.72% 0.78% 0.39% 0.51% (0.20)%
Ratio of expenses to average net assets excluding interest
expense:
With reimbursement and/or expense reductions (Notes 2 &
5)++......................................................... 1.23% 1.22% 1.18% 1.18% 0.00%
Without reimbursement and/or expense reductions++............. 2.12% 1.49% 1.68% 2.22% 4.30%
Ratio of interest expense to average net assets................. 0.17% --% --% --% --%
Portfolio turnover++............................................ 110% 212% 216% 210% 117%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------
VARIABLE AMERICA FUND
--------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period................................ $ 21.68 $ 19.71 $ 19.46 $ 15.81 $ 13.75
-------- -------- -------- -------- ----------
Net investment income (loss)...................................... (0.13) (0.07) 0.12(c) 0.21(d) 0.48(e)
Net realized and unrealized gain (loss) on investments............ 1.80 2.88 3.18 3.80 2.08
-------- -------- -------- -------- ----------
Net increase (decrease) resulting from operations............... 1.67 2.81 3.30 4.01 2.56
-------- -------- -------- -------- ----------
Distributions to shareholders:
From net investment income........................................ -- (0.09) (0.30) (0.07) (0.50)
From net realized gain on investments............................. (3.20) (0.75) (2.75) (0.29) --
In excess of net investment income................................ -- -- -- -- --
In excess of net realized gain on investments..................... -- -- -- -- --
Return of capital................................................. -- -- -- -- --
-------- -------- -------- -------- ----------
Total distributions............................................. (3.20) (0.84) (3.05) (0.36) (0.50)
-------- -------- -------- -------- ----------
Net asset value, end of period...................................... $ 20.15 $ 21.68 $ 19.71 $ 19.46 $ 15.81
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Total investment return (f)........................................ 8.09% 14.88% 18.55% 25.37% 18.88%
-------- -------- -------- -------- ----------
-------- -------- -------- -------- ----------
Ratios and supplemental data:
Net assets, end of period (in 000's)................................ $40,833 $43,977 $41,647 $37,643 $15,257
Ratio of net investment income (loss) to average net assets:
With reimbursement and/or expense reductions (Notes 2 & 5)........ (0.59)% (0.35)% 0.52% 1.66% 1.83%
Without reimbursement and/or expense reductions................... (0.59)% (0.42)% 0.46% 1.60% 0.76%
Ratio of expenses to average net assets excluding interest expense:
With reimbursement and/or expense reductions (Notes 2 & 5)........ 0.95% 0.91% 0.95% 1.00% 0.98%
Without reimbursement and/or expense reductions................... 0.95% 0.98% 1.01% 1.06% 2.05%
Ratio of interest expense to average net assets..................... 0.08% --% --% --% --%
Portfolio turnover.................................................. 181% 210% 248% 79% 139%
</TABLE>
- ------------------------
(a) Includes reimbursement of Fund operating expenses of $0.08 for the
Variable Emerging Markets Fund, $0.09 for the Variable Infrastructure
Fund, $0.04 for the Variable Natural Resources Fund, $0.05 for the
Variable New Pacific Fund and $0.01 for the Variable Europe Fund (Note
2).
(b) Includes reimbursement of Fund operating expenses of $0.03 for the
Variable Emerging Markets Fund, $0.04 for the Variable Infrastructure
Fund, $0.03 for the Variable Natural Resources Fund, $0.02 for the
Variable New Pacific Fund, and $0.02 for the Variable Europe Fund
(Note 2).
(c) Includes reimbursement of Fund operating expenses of $0.05 for the
Variable Emerging Markets Fund, $0.19 for the Variable Infrastructure
Fund, $0.11 for the Variable Natural Resources Fund, $0.00 for the
Variable America Fund, $0.04 for the Variable New Pacific Fund, and
$0.04 for the Variable Europe Fund (Note 2).
(d) Includes reimbursement of Fund operating expenses of $0.09 for the
Variable Emerging Markets Fund, $0.42 for the Variable Infrastructure
Fund, $0.47 for the Variable Natural Resources Fund, $0.01 for the
Variable America Fund, $0.04 for the Variable New Pacific Fund, and
$0.08 for the Variable Europe Fund (Note 2).
(e) Includes reimbursement of Fund operating expenses of $0.07 for the
Variable Emerging Markets Fund, $0.28 for the Variable America Fund,
$0.03 for the Variable New Pacific Fund, and $0.04 for the Variable
Europe Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F64
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------
VARIABLE INFRASTRUCTURE FUND
-------------------------------------------------------
JANUARY 31, 1995
YEAR ENDED (COMMENCEMENT OF
DECEMBER 31, OPERATIONS) TO
---------------------------------- DECEMBER 31,
1998 1997 1996 1995
-------- -------- -------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.35 $ 16.47 $ 13.27 $12.00
-------- -------- -------- --------
Net investment income (loss).......... 0.31(a) 0.12(b) 0.11(c) 0.07(d)
Net realized and unrealized gain
(loss) on investments................ 0.77 0.74 3.19 1.20
-------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 1.08 0.86 3.30 1.27
-------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.17) (0.10) (0.03) --
From net realized gain on
investments.......................... -- (0.88) (0.07) --
In excess of net investment income.... -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- --
Return of capital..................... -- -- -- --
-------- -------- -------- --------
Total distributions................. (0.17) (0.98) (0.10) --
-------- -------- -------- --------
Net asset value, end of period.......... $ 17.26 $ 16.35 $ 16.47 $13.27
-------- -------- -------- --------
-------- -------- -------- --------
Total investment return (f)............ 6.58% 5.00% 24.88% 10.58%
-------- -------- -------- --------
-------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 6,341 $ 8,745 $ 6,054 $1,594
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.37% 0.99% 1.35% 1.24%
Without reimbursement and/or expense
reductions........................... 0.94% 0.68% 0.03% (6.11)%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.25% 1.18% 1.21% 1.22%
Without reimbursement and/or expense
reductions........................... 1.68% 1.49% 2.53% 8.57%
Ratio of interest expense to average net
assets................................. --% --% --% --%
Portfolio turnover...................... 110% 46% 76% 38%
<CAPTION>
GT GLOBAL
-------------------------------------------------------
VARIABLE NATURAL RESOURCES FUND
-------------------------------------------------------
JANUARY 31, 1995
YEAR ENDED (COMMENCEMENT OF
DECEMBER 31, OPERATIONS) TO
---------------------------------- DECEMBER 31,
1998 1997 1996 1995
-------- -------- -------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.20 $ 20.98 $ 13.88 $12.00
-------- -------- -------- --------
Net investment income (loss).......... 0.23(a) (0.03) (b) (0.06) (c) 0.73(d)
Net realized and unrealized gain
(loss) on investments................ (6.38) 0.18 7.16 1.91
-------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... (6.15) 0.15 7.10 2.64
-------- -------- -------- --------
Distributions to shareholders:
From net investment income............ -- -- -- (0.71)
From net realized gain on
investments.......................... (3.15) (0.93) -- --
In excess of net investment income.... -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- (0.05)
Return of capital..................... -- -- -- --
-------- -------- -------- --------
Total distributions................. (3.15) (0.93) -- (0.76)
-------- -------- -------- --------
Net asset value, end of period.......... $ 10.90 $ 20.20 $ 20.98 $13.88
-------- -------- -------- --------
-------- -------- -------- --------
Total investment return (f)............ (33.01)% 1.29% 51.15% 22.20%
-------- -------- -------- --------
-------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 6,396 $16,709 $16,308 $1,365
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.22% (0.16)% (0.60)% 10.87%
Without reimbursement and/or expense
reductions........................... 0.97% (0.38)% (1.30)% 2.94%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.24% 1.20% 1.19% 1.14%
Without reimbursement and/or expense
reductions........................... 1.49% 1.42% 1.89% 9.07%
Ratio of interest expense to average net
assets................................. 0.04% --% --% --%
Portfolio turnover...................... 305% 315% 199% 875%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
------------------------------------------------------------
VARIABLE NEW PACIFIC FUND
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 10.50 $ 18.02 $ 13.92 $ 14.01 $ 16.07
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.27(a) 0.26(b) 0.13(c) 0.20(d) 0.08(e)
Net realized and unrealized gain
(loss) on investments................ (1.80) (7.61) 4.16 (0.23) (2.08)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... (1.53) (7.35) 4.29 (0.03) (2.00)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.25) (0.10) (0.19) (0.06) (0.06)
From net realized gain on
investments.......................... -- (0.07) -- -- --
In excess of net investment income.... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (0.25) (0.17) (0.19) (0.06) (0.06)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 8.72 $ 10.50 $ 18.02 $ 13.92 $ 14.01
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ (14.54)% (41.11)% 30.97% (0.21)% (12.47)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $11,010 $16,490 $32,670 $23,025 $19,391
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 2.38% 1.50% 0.88% 1.27% 0.83%
Without reimbursement and/or expense
reductions........................... 1.85% 1.16% 0.60% 1.74% 0.48%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.23% 1.09% 1.12% 1.14% 1.25%
Without reimbursement and/or expense
reductions........................... 1.76% 1.43% 1.40% 1.61% 1.60%
Ratio of interest expense to average net
assets................................. 0.02% --% --% --% --%
Portfolio turnover...................... 102% 93% 70% 67% 30%
<CAPTION>
GT GLOBAL
------------------------------------------------------------
VARIABLE EUROPE FUND
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 22.52 $ 21.34 $ 16.52 $ 15.22 $ 15.33
-------- -------- -------- -------- --------
Net investment income (loss).......... 0.08(a) 0.05(b) 0.05(c) 0.18(d) 0.16(e)
Net realized and unrealized gain
(loss) on investments................ 3.74 3.10 4.93 1.28 (0.25)
-------- -------- -------- -------- --------
Net increase (decrease) resulting
from operations.................... 3.82 3.15 4.98 1.46 (0.09)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income............ (0.05) (0.06) (0.16) (0.16) --
From net realized gain on
investments.......................... (2.97) (1.91) -- -- (0.02)
In excess of net investment income.... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions................. (3.02) (1.97) (0.16) (0.16) (0.02)
-------- -------- -------- -------- --------
Net asset value, end of period.......... $ 23.32 $ 22.52 $ 21.34 $ 16.52 $ 15.22
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)............ 15.98% 15.15% 30.25% 9.66% (0.59)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $32,617 $27,410 $24,537 $15,641 $15,020
Ratio of net investment income (loss) to
average net assets:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 0.34% 0.22% 0.36% 1.12% 1.48%
Without reimbursement and/or expense
reductions........................... 0.30% 0.01% 0.09% 0.60% 1.07%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement and/or expense
reductions (Notes 2 & 5)............. 1.23% 1.20% 1.20% 1.20% 1.25%
Without reimbursement and/or expense
reductions........................... 1.27% 1.41% 1.47% 1.72% 1.66%
Ratio of interest expense to average net
assets................................. 0.32% --% --% --% --%
Portfolio turnover...................... 107% 117% 56% 123% 61%
</TABLE>
- ------------------------
(f) 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 accompanying notes are an integral part of the financial statements.
F65
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
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
------------------------------------------------------------
MONEY MARKET FUND
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Net investment income (loss).................... 0.05(a) 0.05(b) 0.05(c) 0.05(d) 0.03(e)
Net realized and unrealized gain (loss) on
investments.................................... -- -- -- -- --
-------- -------- -------- -------- --------
Net increase (decrease) resulting from
operations................................... 0.05 0.05 0.05 0.05 0.03
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income...................... (0.05) (0.05) (0.05) (0.05) (0.03)
From net realized gain on investments........... -- -- -- -- --
-------- -------- -------- -------- --------
Total distributions........................... (0.05) (0.05) (0.05) (0.05) (0.03)
-------- -------- -------- -------- --------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f)...................... 5.22% 4.96% 4.75% 5.26% 3.48%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $31,588 $26,964 $19,794 $14,891 $19,474
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions
(Notes 2 & 5).................................. 4.70% 4.77% 4.67% 5.15% 3.70%
Without reimbursement and/or expense
reductions..................................... 4.70% 4.73% 4.57% 4.85% 3.64%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions
(Notes 2 & 5).................................. 0.73% 0.75% 0.75% 0.75% 0.75%
Without reimbursement and/or expense
reductions..................................... 0.73% 0.79% 0.85% 1.05% 0.81%
Ratio of interest expense to average net assets... N/A N/A N/A N/A N/A
Portfolio turnover................................ N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------
VARIABLE INTERNATIONAL FUND
--------------------------------------------------------------------
JULY 5, 1994
(COMMENCEMENT OF
YEAR ENDED DECEMBER 31, OPERATIONS) TO
----------------------------------------------- DECEMBER 31,
1998 1997 1996 1995 1994
-------- -------- -------- -------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.............. $ 12.72 $ 11.91 $ 11.01 $ 11.25 $12.00
-------- -------- -------- -------- --------
Net investment income (loss).................... 0.10* (a) 0.15(b) 0.05(c) 0.09(d) 0.06(e)
Net realized and unrealized gain (loss) on
investments.................................... (0.11) 0.68 0.89 (0.22) (0.76)
-------- -------- -------- -------- --------
Net increase (decrease) resulting from
operations................................... (0.01) 0.83 0.94 (0.13) (0.70)
-------- -------- -------- -------- --------
Distributions to shareholders:
From net investment income...................... (0.09) (0.02) -- (0.09) (0.05)
From net realized gain on investments........... (0.75) -- (0.04) (0.02) --
-------- -------- -------- -------- --------
Total distributions........................... (0.84) (0.02) (0.04) (0.11) (0.05)
-------- -------- -------- -------- --------
Net asset value, end of period.................... $ 11.87 $ 12.72 $ 11.91 $ 11.01 $11.25
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (f) +.................... (0.64)% 6.93% 8.52% (1.14)% (5.81)%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).............. $ 7,327 $ 5,929 $ 4,782 $ 3,663 $2,229
Ratio of net investment income (loss) to average
net assets:
With reimbursement and/or expense reductions
(Notes 2 & 5)++................................ 1.64% 1.22% 0.48% 0.93% 3.33%
Without reimbursement and/or expense
reductions++................................... 0.56% 0.05% (0.86)% (1.35)% (2.56)%
Ratio of expenses to average net assets excluding
interest expense:
With reimbursement and/or expense reductions
(Notes 2 & 5)++................................ 1.25% 1.14% 1.15% 1.25% 0.69%
Without reimbursement and/or expense
reductions++................................... 2.33% 2.31% 2.49% 3.53% 6.58%
Ratio of interest expense to average net assets... 0.09% --% --% --% --%
Portfolio turnover++.............................. 105% 112% 92% 107% 17%
</TABLE>
- ------------------------
* Calculated based upon average shares outstanding during the period.
(a) Includes reimbursement of Fund operating expenses of $0.09 for the
Variable International Fund (Note 2).
(b) Includes reimbursement of Fund operating expenses of $0.06 for the
Variable International Fund (Note 2).
(c) Includes reimbursement of Fund operating expenses of $0.14 for the
Variable International Fund (Note 2).
(d) Includes reimbursement of Fund operating expenses of $0.22 for the
Variable International Fund (Note 2).
(e) Includes reimbursement of Fund operating expenses of $0.11 for the
Variable International Fund (Note 2).
(f) 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.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F66
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Variable Investment Series and G.T. Global Variable Investment Trust
(the "Trusts") were each organized as a Delaware business trust on May 29, 1998.
Previously they were Massachusetts business trusts organized on May 26, 1992 and
September 17, 1992, respectively. The Trusts 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 series 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 series 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 series
of shares of beneficial interest for the two trusts 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 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 income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Funds in the preparation of the
financial statements.
(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 or on the
Nasdaq National Market System in which such securities are primarily 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.
Long-term debt obligations 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 securities of comparative maturity, quality and type; however, when
A I M Advisors, Inc. (the "Manager") deems it appropriate, prices obtained from
a bond pricing service will be used. Short-term debt investments are valued at
amortized cost adjusted for foreign exchange translation and market fluctuation,
if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by, or under the direction of, each of
the Trusts' 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, each Trusts' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Funds after translation
to U.S. dollars based on the exchange rates on that day. The cost of each
security is determined using historical exchange rates. Income and withholding
taxes are translated at prevailing exchange rates when earned or incurred.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' 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
F67
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
the value, including accrued interest, is at least equal to the amount to be
repaid to the Funds under each agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the 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 "Statements 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 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 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 "Statements 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 the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract a
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
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 each 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
F68
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
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, or unrealized appreciation of securities held, or for
excise tax on income and capital gains. The following funds have capital loss
carry-
forwards.
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES IN
GT GLOBAL FUNDS CARRYFORWARD YEAR
- ------------------------------------------------------------ ------------ ----------
<S> <C> <C>
Variable Strategic Income................................... $ 190,054 2003
............................................................ 972,721 2006
Variable Global Government Income........................... 353,306 2002
Variable Latin America...................................... 3,071,451 2006
Variable Emerging Markets................................... 4,606,893 2006
Variable Infrastructure..................................... 277,239 2006
Variable Natural Resources.................................. 4,305,511 2006
Variable America............................................ 1,644,845 2006
Variable New Pacific........................................ 4,172,104 2006
Money Market................................................ 144 2006
</TABLE>
(J) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The 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.
(K) 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.
(L) 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 year, restricted securities (excluding 144A issues) are shown at the end of
the Portfolio of Investments for each Fund, if any.
(M) SECURITIES PURCHASED ON A WHEN-ISSUED OR FORWARD COMMITMENT BASIS
A Fund may trade securities on a when-issued or forward commitment basis, with
payment and delivery scheduled for a future date. These transactions are subject
to market fluctuations and are subject to the risk that the value at delivery
may be less than the trade date purchase price. Although the Fund will generally
purchase these securities with the intention of acquiring such securities, they
may sell such securities before the settlement date. These securities, if any,
are identified on the accompanying Portfolio of Investments. The Variable
Strategic Income Fund and the Variable Government Income Fund have set aside
sufficient cash or liquid high grade debt securities as collateral for these
purchase commitments.
F69
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(N) PORTFOLIO SECURITIES LOANED
At December 31, 1998, stocks with an aggregate value listed below were on loan
to brokers. The loans were secured by cash collateral receive by the Fund:
<TABLE>
<CAPTION>
YEAR
ENDED
DECEMBER
31,
DECEMBER 31, 1998 1998
---------------------------- --------
AGGREGATE VALUE CASH FEES
GT GLOBAL ON LOAN COLLATERAL RECEIVED
- ------------------------------------------------------------ --------------- ---------- --------
<S> <C> <C> <C>
Variable Strategic Income Fund.............................. $ 313,172 $ 332,671 $32,575
Variable Global Government Income Fund...................... 122,069 125,666 5,624
Variable U.S. Government Income Fund........................ -- -- --
Variable Latin America Fund................................. 1,912,734 1,956,038 11,570
Variable Growth & Income Fund............................... 764,768 822,148 33,804
Variable Telecommunications Fund............................ 6,333,925 6,425,465 52,374
Variable Emerging Markets Fund.............................. 62,385 66,413 5,764
Variable Infrastructure Fund................................ 23,532 23,986 2,191
Variable Natural Resources Fund............................. -- -- 1,057
Variable America Fund....................................... 4,403,404 4,438,785 23,815
Variable New Pacific Fund................................... 140,827 148,825 23,633
Variable Europe Fund........................................ 1,212,962 1,283,449 38,173
Money Market Fund........................................... -- -- --
Variable International Fund................................. 29,474 30,500 5,867
</TABLE>
For international securities, cash collateral is received by a Fund against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by a Fund against loaned securities in an amount at least equal to 102%
of the market value of the loaned securities at the inception of each loan. This
collateral must be maintained at not less than 100% of the market value of the
loaned securities during the period of the loan. The cash collateral is invested
in a securities lending trust which consists of a portfolio of high quality
short duration securities whose average effective duration is restricted to 120
days or less.
(O) LINE OF CREDIT
The Funds, along with certain other funds advised and/or administered by the
Manager, have a line of credit with BankBoston and State Street Bank and Trust
Company. The arrangements with the banks allow the Funds and certain other funds
to borrow, on a first come, first served basis, an aggregate maximum amount of
$250,000,000. The Funds are limited to borrowing up to 33 1/3% of the value of
the Fund's total assets. On December 31, 1998, outstanding loan balances are as
follows:
<TABLE>
<CAPTION>
GT GLOBAL
- ------------------------------------------------------------
<S> <C>
Variable Latin America...................................... $ 48,000
Variable America............................................ 227,000
Variable New Pacific........................................ 42,000
</TABLE>
For the year ended December 31, 1998, the weighted average outstanding daily
balance of bank loans (based on the number of days the loans were outstanding),
the weighted average interest rate, interest expense for loans and other
interest expense are as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998
---------------------------------------------------------------------
AVERAGE AVERAGE DAILY
GT GLOBAL OUTSTANDING DAILY BALANCE INTEREST RATE INTEREST EXPENSE
- ------------------------------------------------------------ ------------------------------ ---------------- -------------------
<S> <C> <C> <C>
Variable Strategic Income Fund.............................. $ 1,335,329 6.29% $ 38,936
Variable Global Government Income Fund...................... 137,155 6.11% 3,746
Variable U.S. Government Income Fund........................ 326,945 5.89% 4,871
Variable Latin America Fund................................. 519,080 6.18% 22,260
Variable Growth & Income Fund............................... 1,800,436 6.18% 23,031
Variable Telecommunications Fund............................ 1,272,621 5.98% 7,062
Variable Emerging Markets Fund.............................. 486,968 6.25% 15,969
Variable Infrastructure Fund................................ -- -- --
Variable Natural Resources Fund............................. 476,745 6.26% 4,560
Variable America Fund....................................... 850,226 6.22% 32,363
Variable New Pacific Fund................................... 763,684 5.67% 2,258
Variable Europe Fund........................................ 2,927,500 6.23% 117,469
Money Market Fund........................................... -- -- --
Variable International Fund................................. 470,038 6.34% 5,472
<CAPTION>
GT GLOBAL OTHER INTEREST
- ------------------------------------------------------------ ----------------
<S> <C>
Variable Strategic Income Fund.............................. $ 950
Variable Global Government Income Fund...................... 2,212
Variable U.S. Government Income Fund........................ --
Variable Latin America Fund................................. 34
Variable Growth & Income Fund............................... 38
Variable Telecommunications Fund............................ --
Variable Emerging Markets Fund.............................. 997
Variable Infrastructure Fund................................ --
Variable Natural Resources Fund............................. --
Variable America Fund....................................... --
Variable New Pacific Fund................................... 57
Variable Europe Fund........................................ 600
Money Market Fund........................................... --
Variable International Fund................................. 1,111
</TABLE>
F70
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
2. RELATED PARTIES
A I M Advisors, Inc. (the "Manager") is the Funds' investment manager and
administrator. INVESCO (NY), Inc., (formerly, Chancellor LGT Asset Management,
Inc.) is the investment sub-advisor and sub-administrator for the GT Global
Variable New Pacific Fund, GT Global Variable America Fund, GT Global Money
Market Fund, GT Global Variable Strategic Income Fund, and GT Global Variable
U.S. Government Income Fund. INVESCO Asset Management Ltd. is the investment
sub-advisor and sub-administrator for the GT Global Variable Europe Fund, GT
Global Variable International Fund, GT Global Variable Latin America Fund, GT
Global Variable Growth & Income Fund, GT Global Variable Global Government
Income Fund, and GT Global Variable Emerging Markets Fund. As of the close of
business on May 29, 1998, Liechtenstein Global Trust AG ("LGT"), the former
indirect parent organization of Chancellor LGT Asset Management, Inc.
("Chancellor LGT"), consummated a purchase agreement with AMVESCAP PLC pursuant
to which AMVESCAP PLC acquired LGT's Asset Management Division, which included
Chancellor LGT and certain other affiliates. As a result of this transaction,
Chancellor LGT was renamed INVESCO (NY), Inc., and is now an indirect
wholly-owned subsidiary of AMVESCAP PLC. Effective September 8, 1998, A I M Fund
Services, Inc., a wholly owned subsidiary of the Manager and a registered
transfer agent, became the exclusive transfer agent of the Funds, replacing GT
Global Investor Services, Inc. ("GT Services").
The Money Market Fund pays the Manager 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 the Manager 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 the Manager 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.
The Manager 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, Variable Europe Fund, Variable Latin America Fund,
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, the Manager has undertaken to limit the total
operating expenses (exclusive of brokerage commissions, interest, taxes and
extraordinary items) of each of the Variable Strategic Income Fund, The Variable
Global Government Income Fund, the Variable U.S. Government Income Fund, and the
Variable America Fund to 1.00% of their respective average daily net assets.
Likewise, the Manager has undertaken to limit the total operating expenses
(exclusive of brokerage commissions, interest, taxes and extraordinary items) of
the Money Market Fund to 0.75% of its average daily net assets. From time to
time, the Manager in its sole discretion may waive its fees and/or voluntarily
assume certain Fund expenses.
All general expenses of the Trusts and joint expenses of the Funds are allocated
among the Funds on a basis deemed fair and equitable.
GT Global is the principal underwriter of the Variable Annuity Contracts.
Underwriter commissions of $110,571 were retained by GT Global for the fiscal
year ended December 31, 1998.
The Manager is the pricing and accounting agent for the Funds. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of the Fund's average daily net assets. The annual fee rate is derived based on
the aggregate net assets of the funds which comprise the following investment
companies: AIM Growth Series, AIM Investment Funds, AIM Investment Portfolios,
AIM Series Trust, G.T. Global Variable Investment Series and G.T. Global
Variable Investment Trust. The fee is calculated at the rate of 0.03% to the
first $5 billion of assets and 0.02% to the assets in excess of $5 billion. An
amount is allocated to and paid by each such fund based on its relative average
daily net assets.
Each trustee who is not a director, officer or employee of the Sub-Advisor or
any affiliated company is paid an annual retainer of $2,000 by the G.T. Global
Variable Investment Series and $3,000 by The G.T. Global Variable Investment
Trust.
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 ended December 31, 1998:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $23,554,195 42,765,852
Variable Global Government Income Fund...................... 7,152,128 11,647,260
Variable U.S. Government Income Fund........................ 11,145,521 6,250,274
Variable Latin America Fund................................. -- 7,225,850
Variable Growth & Income Fund............................... 8,061,349 29,281,948
Variable Telecommunications Fund............................ -- 46,858,721
</TABLE>
F71
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<S> <C> <C>
Variable Emerging Markets Fund.............................. -- 10,389,254
Variable Infrastructure Fund................................ -- 7,492,685
Variable Natural Resources Fund............................. -- 31,609,298
Variable America Fund....................................... -- 73,409,469
Variable New Pacific Fund................................... -- 11,503,362
Variable Europe Fund........................................ -- 37,890,302
Money Market Fund........................................... -- --
Variable International Fund................................. -- 6,062,304
</TABLE>
<TABLE>
<CAPTION>
SALES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $25,022,246 43,757,504
Variable Global Government Income Fund...................... 5,876,417 12,109,900
Variable U.S. Government Income Fund........................ 8,508,852 8,065,822
Variable Latin America Fund................................. -- 15,899,529
Variable Growth & Income Fund............................... 7,133,351 34,629,475
Variable Telecommunications Fund............................ -- 60,618,507
Variable Emerging Markets Fund.............................. -- 15,482,461
Variable Infrastructure Fund................................ -- 9,932,794
Variable Natural Resources Fund............................. -- 37,024,539
Variable America Fund....................................... -- 82,068,537
Variable New Pacific Fund................................... -- 17,716,415
Variable Europe Fund........................................ -- 44,495,204
Money Market Fund........................................... -- --
Variable International Fund................................. -- 7,529,514
</TABLE>
F72
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
4. CAPITAL SHARES
At December 31, 1998, 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:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------------------- --------------------------------
GT GLOBAL VARIABLE STRATEGIC INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,816,625 $ 23,767,440 2,611,339 $ 35,310,968
Shares issued in connection with reinvestment of
distributions............................................. 136,638 1,758,665 151,821 2,041,389
-------------- --------------- --------------- ---------------
1,953,263 25,526,105 2,763,160 37,352,357
Shares repurchased.......................................... (2,303,971) (30,081,222) (3,005,617) (40,609,980)
-------------- --------------- --------------- ---------------
Net decrease................................................ (350,708) $ (4,555,117) (242,457) $ (3,257,623)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,715,212 $ 20,223,251 380,383 $ 4,229,682
Shares issued in connection with reinvestment of
distributions............................................. 41,526 475,583 55,693 616,309
-------------- --------------- --------------- ---------------
1,756,738 20,698,834 436,076 4,845,991
Shares repurchased.......................................... (1,756,512) (20,697,844) (606,738) (6,739,965)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 226 $ 990 (170,662) $ (1,893,974)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,208,175 $ 14,490,714 498,606 $ 5,752,236
Shares issued in connection with reinvestment of
distributions............................................. 31,559 375,753 26,692 304,964
-------------- --------------- --------------- ---------------
1,239,734 14,866,467 525,298 6,057,200
Shares repurchased.......................................... (1,259,952) (15,145,687) (375,888) (4,324,042)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (20,218) $ (279,220) 149,410 $ 1,733,158
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE LATIN AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,541,263 $ 18,118,194 2,970,336 $ 50,446,691
Shares issued in connection with reinvestment of
distributions............................................. 34,214 451,963 -- --
-------------- --------------- --------------- ---------------
1,575,477 18,570,157 2,970,336 50,446,691
Shares repurchased.......................................... (2,239,082) (28,159,725) (2,821,639) (48,320,307)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (663,605) $ (9,589,568) 148,697 $ 2,126,384
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GROWTH & INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 3,937,752 $ 80,249,994 4,454,366 $ 78,690,743
Shares issued in connection with reinvestment of
distributions............................................. 90,392 1,853,175 78,960 1,391,332
-------------- --------------- --------------- ---------------
4,028,144 82,103,169 4,533,326 80,082,075
Shares repurchased.......................................... (4,150,799) (84,657,906) (4,032,695) (71,425,393)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (122,655) $ (2,554,737) 500,631 $ 8,656,682
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 2,494,268 $ 49,416,214 2,426,702 $ 45,966,546
Shares issued in connection with reinvestment of
distributions............................................. 293,286 5,760,403 435,369 7,777,355
-------------- --------------- --------------- ---------------
2,787,554 55,176,617 2,862,071 53,743,901
Shares repurchased.......................................... (3,130,421) (61,528,494) (2,644,456) (49,940,160)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (342,867) $ (6,351,877) 217,615 $ 3,803,741
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EMERGING MARKETS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 3,892,065 $ 34,837,323 4,408,199 $ 64,017,931
Shares issued in connection with reinvestment of
distributions............................................. 93,799 836,683 90,221 1,368,634
-------------- --------------- --------------- ---------------
3,985,864 35,674,006 4,498,420 65,386,565
Shares repurchased.......................................... (4,568,030) (41,673,104) (4,305,787) (63,118,511)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (582,166) $ (5,999,098) 192,633 $ 2,268,054
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F73
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------------------- --------------------------------
GT GLOBAL VARIABLE INFRASTRUCTURE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 105,509 $ 1,796,719 361,007 $ 6,149,550
Shares issued in connection with reinvestment of
distributions............................................. 4,325 76,385 28,498 479,059
-------------- --------------- --------------- ---------------
109,834 1,873,104 389,505 6,628,609
Shares repurchased.......................................... (277,458) (4,691,541) (222,095) (3,775,850)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (167,624) $ (2,818,437) 167,410 $ 2,852,759
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 922,163 $ 16,227,734 2,023,682 $ 42,194,979
Shares issued in connection with reinvestment of
distributions............................................. 153,430 1,999,188 42,776 762,160
-------------- --------------- --------------- ---------------
1,075,593 18,226,922 2,066,458 42,957,139
Shares repurchased.......................................... (1,316,239) (21,972,187) (2,016,632) (41,865,469)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (240,646) $ (3,745,265) 49,826 $ 1,091,670
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 3,186,300 $ 64,281,189 2,483,444 $ 49,803,360
Shares issued in connection with reinvestment of
distributions............................................. 307,353 6,036,408 93,176 1,750,776
-------------- --------------- --------------- ---------------
3,493,653 70,317,597 2,576,620 51,554,136
Shares repurchased.......................................... (3,495,956) (70,230,812) (2,660,773) (53,234,901)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (2,303) $ 86,785 (84,153) $ (1,680,765)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NEW PACIFIC FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 20,013,836 $ 173,702,796 11,514,400 $ 181,130,875
Shares issued in connection with reinvestment of
distributions............................................. 42,293 351,881 17,420 306,408
-------------- --------------- --------------- ---------------
20,056,129 174,054,677 11,531,820 181,437,283
Shares repurchased.......................................... (20,363,468) (178,627,344) (11,774,960) (187,117,722)
-------------- --------------- --------------- ---------------
Net decrease................................................ (307,339) $ (4,572,667) (243,140) $ (5,680,439)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EUROPE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 14,680,383 $ 350,325,948 6,563,342 $ 144,699,282
Shares issued in connection with reinvestment of
distributions............................................. 158,305 3,979,783 115,031 2,473,175
-------------- --------------- --------------- ---------------
14,838,688 354,305,731 6,678,373 147,172,457
Shares repurchased (14,656,866) (353,100,071) (6,610,990) (146,386,879)
-------------- --------------- --------------- ---------------
Net increase................................................ 181,822 $ 1,205,660 67,383 $ 785,578
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL MONEY MARKET FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 725,552,665 $ 725,552,665 523,529,726 $ 523,529,726
Shares issued in connection with reinvestment of
distributions............................................. 1,623,136 1,623,136 988,414 988,414
-------------- --------------- --------------- ---------------
727,175,801 727,175,801 524,518,140 524,518,140
Shares repurchased.......................................... (722,552,277) (722,552,277) (517,347,993) (517,347,993)
-------------- --------------- --------------- ---------------
Net increase................................................ 4,623,524 $ 4,623,524 7,170,147 $ 7,170,147
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE INTERNATIONAL FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 6,352,235 $ 78,872,062 2,840,820 $ 35,258,127
Shares issued in connection with reinvestment of
distributions............................................. 40,537 528,201 621 7,912
-------------- --------------- --------------- ---------------
6,392,772 79,400,263 2,841,441 35,266,039
Shares repurchased.......................................... (6,241,572) (78,024,723) (2,776,796) (34,648,323)
-------------- --------------- --------------- ---------------
Net increase................................................ 151,200 $ 1,375,540 64,645 $ 617,716
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F74
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
5. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who then paid a
portion of the Funds' expenses. The Funds' expenses were reduced as follows
under these arrangements:
<TABLE>
<CAPTION>
YEAR ENDED
GT GLOBAL DECEMBER 31, 1998
- ------------------------------------------------------------ -----------------
<S> <C>
Variable Strategic Income Fund.............................. $ --
Variable Global Government Income Fund...................... --
Variable U.S. Government Income Fund........................ --
Variable Latin America Fund................................. --
Variable Growth & Income Fund............................... 1,847
Variable Telecommunications Fund............................ 4,242
Variable Emerging Markets Fund.............................. 828
Variable Infrastructure Fund................................ 526
Variable Natural Resources Fund............................. 5,815
Variable America Fund....................................... 4,222
Variable New Pacific Fund................................... 4,911
Variable Europe Fund........................................ 1,171
Money Market Fund........................................... --
Variable International Fund................................. 272
</TABLE>
- --------------
FEDERAL TAX INFORMATION (UNAUDITED)
Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the
following amounts as capital gain dividends for the fiscal year ended December
31, 1998:
<TABLE>
<CAPTION>
CAPITAL
GAIN
FUND DIVIDEND
- ----------------------------------------------------------------------------------------------------------------------- -----------
<S> <C>
GT Global Variable Latin America Fund.................................................................................. $ 147,131
GT Global Variable Growth & Income Fund................................................................................ 689,824
GT Global Variable Telecommunications Fund............................................................................. 3,325,289
GT Global Variable Emerging Markets Fund............................................................................... 832,035
GT Global Variable Natural Resources Fund.............................................................................. 348,549
GT Global Variable America Fund........................................................................................ 661,911
GT Global Variable Europe Fund......................................................................................... 1,622,947
GT Global Variable International Fund.................................................................................. 161,464
</TABLE>
F75
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
REPORT OF
INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
ANNUAL REPORT
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 the 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"):
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Funds at December 31, 1998, and
the results of their operations, the changes in their net assets and the
financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
BOSTON, MASSACHUSETTS
FEBRUARY 19, 1999
F76
<PAGE>
PROXY RESULTS (UNAUDITED)
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 1,868,938 67,524 119,009
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,877,403 44,742 133,325
(3)(a) Modification of Fundamental Restriction on Concentration.... 1,851,158 95,604 108,708
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,851,581 95,181 108,708
(3)(c) Modification of Fundamental Restriction on Making Loans..... 1,851,581 95,181 108,708
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,851,581 95,181 108,708
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,851,581 95,181 108,708
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,851,581 95,181 108,708
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,851,581 95,181 108,708
(3)(h) Elimination of Fundamental Restriction on Investing in
Futures Contracts.......................................... 1,851,581 95,181 108,708
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 1,851,581 95,181 108,708
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,851,581 95,181 108,708
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 1,851,581 95,181 108,708
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 1,851,581 95,181 108,708
(3)(m) Elimination of Fundamental Restriction on Investing in
Securities of Companies That Have Been in Operation for
Less than Three Years...................................... 1,851,581 95,181 108,708
(3)(n) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 1,851,581 95,181 108,708
(3)(o) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,851,581 95,181 108,708
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
F77
<PAGE>
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 673,057 150 33,643
(2)(b) Approval of sub-advisory and sub-administration contract.... 652,299 2,800 51,750
(3)(a) Modification of Fundamental Restriction on Concentration.... 660,363 4,101 42,385
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 660,363 4,101 42,385
(3)(c) Modification of Fundamental Restriction on Making Loans..... 660,363 4,101 42,385
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 660,363 4,101 42,385
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 660,363 4,101 42,385
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 660,363 4,101 42,385
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 660,363 4,101 42,385
(3)(h) Elimination of Fundamental Restriction on Investing in
Futures Contracts.......................................... 660,363 4,101 42,385
(3)(i) Elimination of Fundamental Restriction on Investing in
Illiquid Securities........................................ 660,363 4,101 42,385
(3)(j) Elimination of Fundamental Restriction on Pledging Assets... 660,363 4,101 42,385
(3)(k) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 660,363 4,101 42,385
(3)(l) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 660,363 4,101 42,385
(3)(m) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 660,363 4,101 42,385
(3)(n) Elimination of Fundamental Restriction on Investing in
Securities of Companies That Have Been in Operation for
Less than Three Years...................................... 660,363 4,101 42,385
(3)(o) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 660,363 4,101 42,385
(3)(p) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 660,363 4,101 42,385
(4) To approve an agreement and plan of conversion and
termination for the Trust.................................. 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
</TABLE>
F78
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 460,038 2,897 51,129
(2)(b) Approval of sub-advisory and sub-administration contract.... 447,559 1,614 64,891
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 456,306 14,492 43,266
(3)(b) Modification of Fundamental Restriction on Concentration.... 456,306 14,492 43,266
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 456,306 14,492 43,266
(3)(d) Modification of Fundamental Restriction on Making Loans..... 456,306 14,492 43,266
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 456,306 14,492 43,266
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 456,306 14,492 43,266
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 456,306 14,492 43,266
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 456,306 14,492 43,266
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 456,306 14,492 43,266
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 456,306 14,492 43,266
(3)(k) Elimination of Fundamental Restriction on Purchasing
Securities on Selling Securities Short..................... 456,306 14,492 43,266
(3)(l) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 456,306 14,492 43,266
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 1,326,283 48,620 68,505
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,326,982 37,363 79,063
(3)(a) Modification of Fundamental Restriction on Concentration.... 1,319,737 38,282 85,388
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,320,031 37,988 85,388
(3)(c) Modification of Fundamental Restriction on Making Loans..... 1,320,031 37,988 85,388
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,320,031 37,988 85,388
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,320,031 37,988 85,388
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,320,031 37,988 85,388
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,320,031 37,988 85,388
(3)(h) Elimination of Fundamental Restriction on Pledging Assets... 1,320,031 37,988 85,388
(3)(i) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,320,031 37,988 85,388
</TABLE>
F79
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(3)(j) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,320,031 37,988 85,388
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 2,536,910 52,215 111,271
(2)(b) Approval of sub-advisory and sub-administration contract.... 2,487,625 64,599 148,172
(3)(a) Modification of Fundamental Restriction on Concentration.... 2,491,633 80,073 128,689
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 2,491,633 80,073 128,689
(3)(c) Modification of Fundamental Restriction on Making Loans..... 2,491,633 80,073 128,689
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 2,491,633 80,073 128,689
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 2,491,633 80,073 128,689
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 2,491,633 80,073 128,689
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 2,491,633 80,073 128,689
(3)(h) Elimination of Fundamental Restriction on Investing in
Illiquid Securities........................................ 2,491,633 80,073 128,689
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 2,491,633 80,073 128,689
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 2,491,633 80,073 128,689
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 2,491,633 80,073 128,689
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 2,491,633 80,073 128,689
(3)(m) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 2,491,633 80,073 128,689
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
F80
<PAGE>
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 3,354,622 159,017 135,507
(2)(b) Approval of sub-advisory and sub-administration contract.... 3,346,683 126,728 175,734
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 3,295,419 169,309 184,418
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 3,295,419 169,309 184,418
(3)(c) Modification of Fundamental Restriction on Making Loans..... 3,296,306 168,422 184,418
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 3,296,306 168,422 184,418
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 3,296,306 168,422 184,418
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 3,296,306 168,422 184,418
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 3,296,306 168,422 184,418
(3)(h) Elimination of Fundamental Restriction on Pledging Assets... 3,296,306 168,422 184,418
(3)(i) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 3,296,306 168,422 184,418
(3)(j) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 3,296,306 168,422 184,418
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 1,055,770 102,810 27,604
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,080,670 78,578 26,940
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 1,082,600 71,119 32,469
</TABLE>
F81
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(3)(b) Modification of Fundamental Restriction on Concentration.... 1,082,600 71,119 32,469
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,082,600 71,119 32,469
(3)(d) Modification of Fundamental Restriction on Making Loans..... 1,082,600 71,119 32,469
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,082,600 71,119 32,469
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,082,600 71,119 32,469
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,081,522 70,071 32,469
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,082,600 71,119 32,469
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 1,082,600 71,119 32,469
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,082,600 71,119 32,469
(3)(k) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,082,600 71,119 32,469
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
F82
<PAGE>
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 440,335 29,160 16,293
(2)(b) Approval of sub-advisory and sub-administration contract.... 458,117 12,175 15,496
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 458,203 7,380 20,204
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 458,203 7,380 20,204
(3)(c) Modification of Fundamental Restriction on Making Loans..... 458,203 7,380 20,204
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 458,203 7,380 20,204
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 458,203 7,380 20,204
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 458,203 7,380 20,204
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 458,203 7,380 20,204
(3)(h) Elimination of Fundamental Restriction on Pledging Assets... 458,203 7,380 20,204
(3)(I) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 458,203 7,380 20,204
(3)(j) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 458,203 7,380 20,204
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Trust, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 13,497,079 N/A 59,438
Frank S. Bayley............................................. 13,497,079 N/A 59,438
William J. Guilfoyle........................................ 13,497,079 N/A 59,438
Arthur C. Patterson......................................... 13,497,079 N/A 59,438
Ruth H. Quigley............................................. 13,497,079 N/A 59,438
(2)(a) Approval of investment management and administration
contract................................................... 745,488 44,943 24,780
(2)(b) Approval of sub-advisory and sub-administration contract.... 757,424 32,728 25,060
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 737,334 51,321 26,557
(3)(b) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 737,334 51,321 26,557
(3)(c) Modification of Fundamental Restriction on Making Loans..... 737,334 51,321 26,557
(3)(d) Modification of Fundamental Restriction on Underwriting
Securities................................................. 737,334 51,321 26,557
(3)(e) Modification of Fundamental Restriction on Real Estate
Investments................................................ 737,334 51,321 26,557
(3)(f) Modification of Fundamental Restriction on Investing in
Commodities................................................ 737,334 51,321 26,557
(3)(g) Elimination of Fundamental Restriction on Margin
Transactions............................................... 737,334 51,321 26,557
(3)(h) Elimination of Fundamental Restriction on Pledging Assets... 737,334 51,321 26,557
</TABLE>
F83
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(3)(i) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 737,334 51,321 26,557
(3)(j) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Funds' Assets in an Open-End
Fund....................................................... 737,334 51,321 26,557
(4) Approval of an agreement and plan of conversion and
termination with respect to the Company.................... 12,388,320 463,230 704,970
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 12,978,161 134,974 443,384
</TABLE>
GT GLOBAL VARIABLE AMERICA FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Series, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 30,675,312 N/A 107,155
Frank S. Bayley............................................. 30,675,312 N/A 107,155
William J. Guilfoyle........................................ 30,675,312 N/A 107,155
Arthur C. Patterson......................................... 30,675,312 N/A 107,155
Ruth H. Quigley............................................. 30,675,312 N/A 107,155
(2)(a) Approval of investment management and administration
contract................................................... 1,788,825 81,568 87,819
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,762,680 90,164 105,368
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 1,755,584 104,333 98,295
(3)(b) Modification of Fundamental Restriction on Concentration.... 1,755,584 104,333 98,295
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,755,584 104,333 98,295
(3)(d) Modification of Fundamental Restriction on Making Loans..... 1,755,584 104,333 98,295
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,755,584 104,333 98,295
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,755,584 104,333 98,295
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,755,584 104,333 98,295
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,755,584 104,333 98,295
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 1,755,584 104,333 98,295
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,755,584 104,333 98,295
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 1,755,584 104,333 98,295
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 1,755,584 104,333 98,295
(3)(m) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 1,755,584 104,333 98,295
(3)(n) Elimination of Fundamental Restriction on Joint
Participation in a Securities Trading Account.............. 1,755,584 104,333 98,295
(3)(o) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,755,584 104,333 98,295
(4) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 28,296,983 1,736,005 749,478
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
Independent Public Accountants............................. 29,939,863 217,835 624,768
</TABLE>
F84
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Series, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 30,675,312 N/A 107,155
Frank S. Bayley............................................. 30,675,312 N/A 107,155
William J. Guilfoyle........................................ 30,675,312 N/A 107,155
Arthur C. Patterson......................................... 30,675,312 N/A 107,155
Ruth H. Quigley............................................. 30,675,312 N/A 107,155
(2)(a) Approval of investment management and administration
contract................................................... 1,411,748 18,040 75,926
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,395,385 21,977 88,351
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 1,392,638 21,406 91,670
(3)(b) Modification of Fundamental Restriction on Concentration.... 1,392,638 21,406 91,670
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,393,989 20,055 91,670
(3)(d) Modification of Fundamental Restriction on Making Loans..... 1,393,989 20,055 91,670
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,393,989 20,055 91,670
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,393,989 20,055 91,670
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,393,317 20,727 91,670
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,393,989 20,055 91,670
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 1,393,989 20,055 91,670
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,393,989 20,055 91,670
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 1,393,989 20,055 91,670
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 1,393,989 20,055 91,670
(3)(m) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 1,393,989 20,055 91,670
(3)(n) Elimination of Fundamental Restriction on Joint
Participation in a Securities Trading Account.............. 1,393,989 20,055 91,670
(3)(o) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,393,989 20,055 91,670
(4) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 28,296,983 1,736,005 749,478
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
Independent Public Accountants............................. 29,939,863 217,835 624,768
</TABLE>
GT GLOBAL VARIABLE EUROPE FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Series, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
F85
<PAGE>
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 30,675,312 N/A 107,155
Frank S. Bayley............................................. 30,675,312 N/A 107,155
William J. Guilfoyle........................................ 30,675,312 N/A 107,155
Arthur C. Patterson......................................... 30,675,312 N/A 107,155
Ruth H. Quigley............................................. 30,675,312 N/A 107,155
(2)(a) Approval of investment management and administration
contract................................................... 1,233,767 161,602 62,931
(2)(b) Approval of sub-advisory and sub-administration contract.... 1,259,540 132,443 66,316
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 1,271,515 134,156 52,629
(3)(b) Modification of Fundamental Restriction on Concentration.... 1,271,515 134,156 52,629
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 1,271,799 133,872 52,629
(3)(d) Modification of Fundamental Restriction on Making Loans..... 1,271,799 133,872 52,629
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 1,271,799 133,872 52,629
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 1,271,799 133,872 52,629
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 1,271,799 133,872 52,629
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 1,271,799 133,872 52,629
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 1,271,799 133,872 52,629
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 1,271,799 133,872 52,629
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 1,271,799 133,872 52,629
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 1,271,799 133,872 52,629
(3)(m) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 1,271,799 133,872 52,629
(3)(n) Elimination of Fundamental Restriction on Joint
Participation in a Securities Trading Account.............. 1,271,799 133,872 52,629
(3)(o) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 1,271,799 133,872 52,629
(4) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 28,296,983 1,736,005 749,478
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
Independent Public Accountants............................. 29,939,863 217,835 624,768
</TABLE>
GT GLOBAL MONEY MARKET FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Series, a
Delaware business trust (the "Trust"), was held on May 20, 1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 30,675,312 N/A 107,155
Frank S. Bayley............................................. 30,675,312 N/A 107,155
William J. Guilfoyle........................................ 30,675,312 N/A 107,155
Arthur C. Patterson......................................... 30,675,312 N/A 107,155
Ruth H. Quigley............................................. 30,675,312 N/A 107,155
(2)(a) Approval of investment management and administration
contract................................................... 23,433,757 1,207,976 665,520
(2)(b) Approval of sub-advisory and sub-administration contract.... 23,254,811 1,533,338 519,105
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 23,500,814 1,198,798 607,641
(3)(b) Modification of Fundamental Restriction on Concentration.... 23,500,814 1,198,798 607,641
</TABLE>
F86
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 23,500,814 1,198,798 607,641
(3)(d) Modification of Fundamental Restriction on Making Loans..... 23,500,814 1,198,798 607,641
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 23,500,814 1,198,798 607,641
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 23,500,814 1,198,798 607,641
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 23,500,814 1,198,798 607,641
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 23,500,814 1,198,798 607,641
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 23,500,814 1,198,798 607,641
(3)(j) Elimination of Fundamental Restriction on Purchasing
Securities Issued By Other Investment Companies............ 23,500,814 1,198,798 607,641
(3)(k) Elimination of Fundamental Restriction on Purchasing Common
Stocks, Preferred Stocks, Warrants or Other Equity
Securities................................................. 23,500,814 1,198,798 607,641
(3)(l) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 23,500,814 1,198,798 607,641
(3)(m) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 23,500,814 1,198,798 607,641
(3)(n) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 23,500,814 1,198,798 607,641
(4) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 28,296,983 1,736,005 749,478
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
Independent Public Accountants............................. 29,939,863 217,835 624,768
</TABLE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
A Special Meeting of Shareholders of G.T. Global Variable Investment Series, a
Delaware business trust (the "Trust"), was held on May 20,1998. The meeting was
held for the following purposes:
(1) To elect Trustees as follows: C. Derek Anderson, Frank S. Bayley, William J.
Guilfoyle, Arthur C. Patterson and Ruth H. Quigley.
(2) To approve a new investment management and administration contract and
sub-advisory and sub-administration contract with respect to each series of
the Trust (each, a "Fund," and collectively, the "Funds").
(3) To approve changes to the fundamental investment restrictions of the Fund.
(4) To approve an agreement and plan of conversion and termination for the
Trust.
(5) To ratify the selection of Coopers & Lybrand L.L.P., now known as
PricewaterhouseCoopers LLP, as the Trust's independent public accountants.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(1) C. Derek Anderson........................................... 30,675,312 N/A 107,155
Frank S. Bayley............................................. 30,675,312 N/A 107,155
William J. Guilfoyle........................................ 30,675,312 N/A 107,155
Arthur C. Patterson......................................... 30,675,312 N/A 107,155
Ruth H. Quigley............................................. 30,675,312 N/A 107,155
(2)(a) Approval of investment management and administration
contract................................................... 463,759 78,898 10,331
(2)(b) Approval of sub-advisory and sub-administration contract.... 463,759 78,898 10,331
(3)(a) Addition of Fundamental Restriction on Portfolio
Diversification............................................ 455,240 83,921 13,827
(3)(b) Modification of Fundamental Restriction on Concentration.... 455,240 83,921 13,827
(3)(c) Modification of Fundamental Restriction on Issuing Senior
Securities and Borrowing Money............................. 455,240 83,921 13,827
(3)(d) Modification of Fundamental Restriction on Making Loans..... 455,240 83,921 13,827
(3)(e) Modification of Fundamental Restriction on Underwriting
Securities................................................. 455,240 83,921 13,827
(3)(f) Modification of Fundamental Restriction on Real Estate
Investments................................................ 455,240 83,921 13,827
(3)(g) Modification of Fundamental Restriction on Investing in
Commodities................................................ 455,240 83,921 13,827
(3)(h) Elimination of Fundamental Restriction on Margin
Transactions............................................... 455,240 83,921 13,827
(3)(i) Elimination of Fundamental Restriction on Pledging Assets... 455,240 83,921 13,827
(3)(j) Elimination of Fundamental Restriction on Investments in
Oil, Gas and Mineral Leases and Programs................... 455,240 83,921 13,827
(3)(k) Elimination of Fundamental Restriction on Investing for the
Purpose of Control......................................... 455,240 83,921 13,827
</TABLE>
F87
<PAGE>
<TABLE>
<CAPTION>
VOTES WITHHELD/
TRUSTEE/MATTER VOTES FOR AGAINST ABSTENTIONS
------------------------------------------------------------ -------------- ------------ -------------
<S> <C> <C> <C> <C>
(3)(l) Elimination of Fundamental Restriction on Purchasing
Securities of Issuers in Which Officers and Trustees of
Each Company and Its Affiliates Own Securities............. 455,240 83,921 13,827
(3)(m) Elimination of Fundamental Restriction on Selling Securities
Short...................................................... 455,240 83,921 13,827
(3)(n) Elimination of Fundamental Restriction on Joint
Participation in a Securities Trading Account.............. 455,240 83,921 13,827
(3)(o) Approval of New Fundamental Investment Policy Regarding
Investment of All of Each Fund's Assets in an Open-End
Fund....................................................... 455,240 83,921 13,827
(4) Approval of an agreement and plan of conversion and
termination with respect to the Trust...................... 28,296,983 1,736,005 749,478
(5) Ratification of the selection of Coopers and Lybrand L.L.P.,
now known as PricewaterhouseCoopers LLP, as the Trust's
independent public accountants............................. 29,939,863 217,835 624,768
</TABLE>
F88
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
