<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 JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 12.66%
5 Years 18.48%
Life of Fund 18.51%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
Mid-cap stocks made a comeback during the reporting period, which dramatically
improved the fund's performance. The fund's solid 17.52% return beat the Russell
Midcap Index, which gained 10.34% over the six-month period.
MARKET REVIEW
Interest-rate changes, earnings improvements and the broadening of the markets
were the major factors driving stock prices. In late 1998, the Federal Reserve
Board (the Fed) lowered interest rates and spurred a market rally. That rally
continued in 1999, and the Dow crossed the 11,000 threshold. In April, concerns
about interest rates shook the markets when the Consumer Price Index revealed an
unexpected increase in inflation. In May, the Fed hinted that it may raise
interest rates, and at its June 30 meeting, it increased the federal funds rate
from 4.75% to 5%, leaving the discount rate unchanged. At the same time, the Fed
announced that it had shifted from a tightening to a neutral bias, indicating
that it planned no further rate hikes in the near future. That announcement
sparked a "relief rally" in the markets.
Earnings improved across a wide spectrum of companies, prompting a change in
market sentiment. In late 1998 and early 1999, investors worried about a number
of foreign economic problems. This uncertainty led to a "flight to quality,"
where investors favored large-company stocks because of their relative safety
and liquidity. When overseas crises calmed and earnings improved in many
different sectors, investors started looking beyond large companies toward a
much broader array of stocks. In the second quarter of 1999, value stocks--those
considered undervalued relative to the stock market as a whole--began returning
to favor, as did small- and mid-cap stocks.
As we mentioned in our last report, AIM took over management of the fund last
year from GT Global. During the reporting period, we completely changed the
fund's portfolio to reflect our investment strategy.
We're applying AIM's discipline of growth at a reasonable price, or GARP. We try
to find undiscovered gems, stocks of mid-sized companies that have been
overlooked in the marketplace. This may happen when a company restructures, hits
a speed bump in execution plans, launches new products or undergoes a management
change. It's our job to determine whether the company has the potential for
growth and whether the market has underestimated this growth. We believe this
strategy offers an opportunity for higher returns.
Another reason for the fund's turnaround was its diversification into technology
and energy stocks, segments that performed well during the reporting period. Our
largest holding, Lucent Technologies, has seen its profits rise on the success
of its telecommunications networking equipment. In the quarter ending June 30,
1999, Lucent posted a 60% increase in income, which beat analysts' expectations.
The brokerage house Charles Schwab, which has a sizable Internet presence, was
another of our top holdings. Shortly after the close of the reporting period,
Schwab reported record quarterly results, with revenue up 54% and income up 98%.
The rising value of Schwab stock made an important contribution to the fund's
solid performance during the period covered by this report.
Fund performance also benefited from our increased positions in energy stocks,
particularly oil and gas drilling, equipment, exploration and production.
OUTLOOK
We believe market conditions are favorable for mid-cap stocks. In the second
quarter of 1999, markets broadened considerably, and the rally continued after
the reporting period closed. Many mid-sized companies are enjoying greater
earnings growth than their larger counterparts, and their stocks remain
favorably priced.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
Variable Russell
America Fund Midcap Index
<S> <C> <C>
Feb 10, 93 10000 10000
Dec-93 11467 11513
Dec-94 13632 11196
Dec-95 17090 15061
Dec-96 20260 18209
Dec-97 23276 22219
Dec-98 25159 24930
Jun-99 29566 27511
</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 AFFECT 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. The Dow Jones Industrial Average (the Dow) is a price-weighted average
of 30 actively traded primarily industrial stocks.
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 JUNE 30, 1999
Inception date: July 5, 1994
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 0.46%
Life of Fund -2.90%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance
results.
PERFORMANCE
Fund performance has shown a marked improvement during the last six months.
1998's pervasive market volatility has calmed considerably, allowing many
overseas markets to recover at least partially from the declines they
experienced last year. Global markets began rebounding late in 1998, largely
due to a global credit easing initiated by domestic rate cuts by the Federal
Reserve Board (the Fed). For the six months ended June 30, 1999, the fund's
total return was 30.79%, compared to the MSCI Emerging Markets Free Index's
return of 39.87% and the 37.24% return of the IFC Investable Composite.
MARKET REVIEW
According to the International Monetary Fund (the IMF), the worst may be over
in the global financial crisis. Asian markets have rallied, buoyed by
continued good economic news and signs that interest in buying Asian stocks
could be spreading from blue-chips to lesser-known stocks. However, Russia,
which continues to struggle with its financial difficulties, is currently
working with the IMF to finalize its next loan package.
Latin American markets were on their way up as investors began to regain
confidence in the region. In January, Latin American markets fell into a
panic when Brazil's central-bank governor resigned and the Brazilian
currency, the real, was devalued and allowed to float on the open market.
However, sentiment turned for the better with the arrival of a new
central-bank governor and a clearer monetary policy.
The fund was heavily invested in Brazil and Mexico, two developing markets
experiencing explosive growth in the first half of the year. Developing
countries have great room for growth in phone services, and the
telecommunications industry is becoming privatized worldwide, which should
encourage greater operating efficiency.
OUTLOOK
A growing number of analysts believe that the emerging markets' deep
financial crisis has bottomed out. The IMF has said that the global economy
should stabilize this year and enjoy a solid recovery in 2000. Even so,
emerging markets are likely to remain choppy, although not to the extent they
were in 1998. The IMF is also discussing ways to relieve the crushing debt
burdens carried by the world's poorest countries. Politics could also play a
role in the economic recovery of emerging markets, with economic reforms
being a key issue in many countries.
Investors will probably remain cautious about emerging markets because many
countries are still experiencing financial challenges, and corporate earnings
are expected to remain low. However, valuations in these markets are still
quite attractive, and we look for continued positive returns from both
emerging-markets stocks and bonds for the rest of 1999.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global IFCI MSCI
Variable Investable Emerging
Emerging Composite Markets
Markets Fund Index Free Index
<S> <C> <C> <C>
Jul 5, 94 10000 10000 10000
Dec-94 10012 10308 10273
Jun-95 9398 9561 9936
Dec-95 9257 9440 9739
Jun-96 11614 10590 10777
Dec-96 12133 10324 10326
Jun-97 13899 11987 12159
Dec-97 10464 8803 9129
Jun-98 8596 7421 7408
Dec-98 6603 6868 6817
Jun-99 8636 9424 9594
</TABLE>
The chart above shows the performance of the fund since inception, compared
to two indexes. Data for the two indexes is for the period 6/30/94 through
6/30/99. The fund's return 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 AFFECT 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 exchanges 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.
Had fees not been waived, performance would have been lower.
2
<PAGE>
GT GLOBAL
VARIABLE EUROPE FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year -14.78%
5 Years 12.91%
Life of Fund 13.75%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
European markets struggled for much of the period covered by this report. For
the six months ended June 30, 1999, the fund's total return was -6.05%. In
comparison, the MSCI Europe Index returned -2.41% for the same period.
MARKET REVIEW
The introduction of the euro as a new common currency for 11 European countries
was successful. The currency started out strong against the U.S. dollar, but
weakened when it became clear that the U.S. economy was growing much faster than
the European economy. Fears of slowing economic growth prompted the European
Central Bank to cut its main refinancing rate from 3% to 2.5% in early April.
The 50-basis-point interest-rate cut was an attempt to stimulate economic growth
and boost industry confidence in Europe.
The period covered by this report saw a reversal of a years-long trend in
international markets: Asia, Japan and Latin America outperformed Europe. With
the U.S. economy showing robust growth in the first quarter of 1999, the outlook
for European exports has become more promising as well.
Merger-and-acquisition activity continues to be a dominant trend in Europe. Most
recently, a number of hostile takeover bids have gained public attention. An
excellent example is Olivetti's bid for Telecom Italia, a former state-owned
utility and the sixth-largest telephone company in the world. The introduction
of the euro triggered a massive wave of mergers and acquisitions as companies
strive to improve their strategic position in the "new Europe."
Overall, we have had positive gains from several favored companies. Individual
technology stocks like Nokia have performed well. Primarily because of strong
demand for mobile handsets, Nokia's revenues and margin developments beat
expectations. Several of our telecom stocks also performed well, including
Vodaphone of the United Kingdom, which announced the purchase of the United
States' AirTouch Inc.
OUTLOOK
We are quite optimistic about the growth potential of European markets. It's
increasingly clear that companies across Europe are doing the kinds of things
U.S. firms did in the 1980s to enhance returns. They're selling off unproductive
businesses, cutting their work forces and buying back shares. Other positives
include lower interest rates, the advent of the euro currency, more open borders
and continuing deregulation and privatization.
Also, the progressive future for the European equity markets continues to
improve as European households actively participate in equity markets through
mutual funds and individual equity holdings.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
MSCI Variable
Europe Index Europe Fund
<S> <C> <C>
2/10/93 10000 10000
6/30/93 10845 10842
6/30/94 12611 12399
6/30/95 15040 13033
6/30/96 17319 16916
6/30/97 22596 20144
6/30/98 31060 26706
6/30/99 30188 22644
</TABLE>
The chart above shows the performance of the fund since inception, compared to
the MSCI Europe Index. Data for the index is for the period 1/31/93 through
6/30/99. The fund's return 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 AFFECT 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.
Had fees not been waived, performance would have been lower.
3
<PAGE>
GT GLOBAL
VARIABLE GLOBAL GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception Date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 0.54%
5 Years 5.91%
Life of Fund 4.64%
</TABLE>
The performance figures shown, which represent the fund, are not intended
to reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance
results.
PERFORMANCE
Strong economic growth in the United States and concerns that the Federal
Reserve Board (the Fed) might raise the federal funds rate resulted in a
difficult market for government-issued debt securities. For the six months
ended June 30, 1999, the fund produced a total return of -7.43%, just under
the J.P. Morgan Global Government Bond Index, which lost 7.19%.
MARKET REVIEW
The Asian economic crisis, which spread into Latin America and Russia in the
fall of 1998, left investors wary of all forms of investment risk. Investors
found the relative safety of government bonds attractive, and this sector of the
market had performed well. While the fund can invest in non-government-debt
securities such as mortgage-backed securities and corporate debt, we believed
that this trend of strong performance in the government-bond markets would
continue in the near term. As we entered the reporting period, the fund's
portfolio largely consisted of high-rated U.S. and European government-debt
securities. Additionally, the fund had significantly reduced its interest-rate
exposure and had started the process of reallocating its holdings to benefit
from the strong U.S. dollar.
Europe has experienced an economic slowdown this year, and recent economic data
indicate a broadening of this economic downturn in the coming months. In early
April, the European Central Bank (the ECB) unexpectedly lowered its target rate,
the repo and discount rates, for the 11 European Economic and Monetary Union
countries by half a point to 2.50%, in conjunction with the Bank of England's
lowering of its base rate by a quarter-point to 5.25%. Despite these cuts, the
ECB has been hesitant to address the region's slowing growth. Economists are
concerned about Europe's economic outlook because of widely varying growth rates
among the euro-zone countries; Wim Duisenberg, the ECB president, left the
short-term interest rate alone in July, but hinted that the ECB may adopt a
tightening stance if inflationary pressures begin to mount.
In the United States, strong economic growth restored investor confidence and
worked against our large position in U.S. Treasury securities. Investors became
more willing to invest in corporate debt securities and lower-rated, high-yield
debt securities. Yield replaced safety as the driving force in the bond market,
and demand for government debt securities weakened.
At the close of the reporting period, the global debt market was extremely
narrow. As U.S. growth continued to be strong and Europe continued to struggle,
it became clear that our portfolio allocations and currency strategies required
some modification. At the same time, it was important for us to remain true to
our investment objectives of income and preservation of capital.
Ultimately, we decided to trim our holdings in U.S. Treasury and
foreign-government debt securities in favor of some relatively safe, high-rated
corporate debt securities. In addition, as the dollar continued its upward trend
against the euro, we realigned our currency strategy in an effort to reduce
currency risk and maximize shareholder income.
OUTLOOK
The second quarter's biggest concern has been that strong U.S. growth would lead
to inflation and a subsequent hike in interest rates. Despite the pervasiveness
of these concerns over the last several months, inflation appears to be
contained for the moment. This is further reinforced by the fact that the Fed
announced its neutral stance, indicating that no more interest-rate hikes would
be forthcoming for some time after its June 30 rise. Nevertheless, the Fed has
in the past proven its ability to move quickly and decisively, and it is
reasonable to believe that the Fed will not hesitate to adjust monetary policy
if need dictates.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global JP Morgan
Government Global Government
Income Fund Bond Index
<S> <C> <C>
Feb 10 93 10000 10000
Dec-93 10638 10792
Dec-94 9971 10479
Dec-95 11440 12296
Dec-96 11695 12658
Dec-97 12666 13924
Dec-98 13391 15351
Jun-99 13358 15184
</TABLE>
The chart above shows the performance of the fund since inception, compared to
the J.P. Morgan Global Government Bond Index. The index return is for the period
1/31/93 through 6/30/99. The fund's return 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 AFFECT 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.
Indexes are unmanaged and not available for direct investment, and do not
include the effects of sales charges and professional management fees.
Had fees not been waived, performance would have been lower.
4
<PAGE>
GT GLOBAL
VARIABLE GROWTH & INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 0.40%
5 Year 12.91%
Life of Fund 12.07%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
For the period ended June 30, 1999, the fund's total return was -3.13%.
Comparatively, the J.P. Morgan Global Government Bond Index, the fund's
benchmark, lost 7.19% over the six-month period. These indexes help explain
performance; global equity markets did well over the past six months, but bond
markets underperformed during the same period.
MARKET REVIEW
In late 1998, the Federal Reserve Board lowered interest rates and spurred a
U.S. market rally, which continued through the first quarter of 1999, with
large-company stocks dominating. The Dow broke 11,000 on May 3, and its
performance reflected the strength of major American corporations. Meanwhile,
the U.S. economy remains the strongest in the world, with low inflation, high
employment and low interest rates.
The European economy is slowing, particularly in Germany, and we're seeing
earnings disappointments from some companies. In January, 11 European countries
introduced the euro as their new common currency. While the euro started strong
against the dollar, it weakened as it became clear that the United States was
growing much faster than Europe.
Conditions are improving in emerging markets. Asia and Latin America suffered
major problems last year, including currency devaluation and recession.
Our fixed-income component detracted from the fund's performance for the last
six months as global interest rates rose over the period. The average maturity
of our bond holdings was somewhat long, and these investments are more
susceptible to rising interest rates. Our high-quality bond orientation was also
a disadvantage, since credit spreads tightened during the period. The
fixed-income weight of the portfolio was about 26% during the last six months, a
period of strong equity market performance.
Banking stocks have been strong performers due to low inflation and the benefits
of technology and new services. We expect these trends to continue. While we
sold some of our holdings to take profits, we retained the best banking stocks
in our portfolio, such as UBS AG, a leading Swiss bank.
OUTLOOK
While domestic economic growth continues to be extraordinarily good with no sign
of slowing, we expect a period of increased volatility and uncertainty in global
markets. Rising stock valuations combined with fickle interest rates could
exacerbate market volatility.
Positive growth and inflationary trends are making Europe an increasingly
attractive realm for asset allocation. With the formation of the European
Economic Monetary Union (the EMU) and the introduction of the euro, investors
will have to adjust their approach to Europe. Now that interest-rate trends will
be correlated among member companies, the investment landscape has changed
substantially.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Variable JP Morgan
Growth & MSCI Global Government
Income Fund World Index Bond Index
<S> <C> <C> <C>
Feb 10, 93 10000 10000 10000
Jun-93 10437 11506 10630
Dec-93 11775 12270 11091
Jun-94 11278 12745 11052
Dec-94 11439 12954 11233
Jun-95 12059 12175 12981
Dec-95 13211 15716 13403
Jun-96 13694 16868 13247
Dec-96 15368 17915 13992
Jun-97 16674 20715 13840
Dec-97 17825 20823 14188
Jun-98 20570 24332 14652
Dec-98 21361 24939 16361
Jun-99 20692 27458 15184
</TABLE>
The chart above shows the performance of the fund since inception, compared to
the various indexes for the same period. The indexes' returns are for the period
1/31/93 through 6/30/99. The fund's return 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 AFFECT 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 and 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 JUNE 30, 1999
Inception date: January 31, 1995
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 3.58%
Life of Fund 12.16%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
Fund performance has improved considerably since the last report. For the
six-month reporting period ended June 30, 1999, the fund's return was 7.61%. The
fund's benchmark, the MSCI World Index (which represents the performance of the
world's stock markets and does not reflect the fund's concentration in the
infrastructure sector), returned 8.51% during this period. Compared to the MSCI
World Index, the fund has very little exposure to Japan, Asia and Latin America,
which have all performed well over the past several months.
MARKET REVIEW
Global markets began rebounding during late 1998, when the U.S. Federal Reserve
Board cut domestic interest rates. The move buoyed stocks and halted a global
market decline brought on by economic problems in developing markets.
The United States continued to enjoy economic growth, stable prices, strong
consumer spending, high employment and stable interest rates. The U.S. economy
grew 4.51% during the first quarter of 1999, with inflation below 1% and
unemployment at a 29-year low.
Meanwhile, European economies are slowing, particularly Germany. In January, 11
European countries introduced the euro as their new common currency. While the
euro started strong against the dollar, it weakened as it became clear that the
United States was growing much faster than Europe. Economists are concerned
about Europe's outlook because of widely varying growth rates among the
euro-zone countries.
Conditions are definitely improving in emerging markets. Asia and Latin America
suffered major problems last year, including currency devaluation and recession.
Signs of recovery appeared in early 1999, and many investors expect Japan and
the rest of Asia to emerge from recession this year. Latin American currencies
are stabilizing and reducing the investment risk in that region.
The fund also had a heavy exposure to utility stocks, which have performed
poorly in recent months. Considered relatively safe and stable, utilities are
defensive stocks, meaning that investors favor them during market declines. When
the market rallies, these stocks tend to underperform. We have trimmed our
utilities weighting somewhat since the beginning of the reporting period.
Our telecommunications, construction, manufacturing and oil stocks performed
well over the past six months. In April, cyclical stocks posted one of their
best one-month gains ever. These economically sensitive stocks include housing,
airlines, railroads and cement companies.
We haven't made any major changes in the past six months, maintaining our focus
on developed countries. Our conservative investment strategy leads us to areas
in which capital spending is strongest.
OUTLOOK
We expect cyclical stocks to continue to show significant strength in the short
term.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global Variable
Infrastructure MSCI
Fund World Index
<S> <C> <C>
Jan 31, 95 10000 10000
Jun-95 11025 11107
Dec-95 11058 12314
Jun-96 13033 13217
Dec-96 13809 14038
Jun-97 14926 16231
Dec-97 14500 16316
Jun-98 16018 19066
Dec-98 15418 20361
Jun-99 16591 21728
</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 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 AFFECT 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 and not available for direct investment, and do not
include the effects of sales charges and professional management fees. Had fees
not been waived, performance would have been lower. 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 JUNE 30, 1999
Inception date: July 5, 1994
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year -5.90%
Life of Fund 2.38%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
In the past six months, international markets saw the reversal of a years-long
trend--Asia, Japan and Latin America outperformed Europe. This shift affected
the performance of the GT Global Variable International Fund somewhat, because
almost half of the fund's portfolio was invested in Europe, but it still
produced solid returns. The fund reported a total return of 4.72% for the six
months ending June 30, 1999, outperforming the EAFE-Registered Trademark- Index,
which produced a 3.97% return.
MARKET REVIEW
Japan, Asia and Latin America suffered major problems last year, including
currency devaluation and recession. Signs of recovery appeared in early 1999,
and many investors expect Japan and the rest of Asia to emerge from recession
this year. Latin American economies have improved and investors are returning,
stabilizing the markets there somewhat.
For the most part, Asia has made great strides-currencies are more stable,
interest rates are declining and inflation is benign. Banking system reform is
occurring but not yet complete. Asian companies are restructuring to focus on
shareholder value and efficient allocation of resources. Companies in this
high-growth, low-inflation economy continue to produce strong earnings,
especially in the banking and consumer sectors. The strongest economies appear
to be in Australia, Korea and Singapore. Malaysia, Indonesia and Taiwan remain
mired in problems.
Latin American markets have turned around over the past few months. Brazil
appointed a new central bank president who has raised interest rates to keep
inflation in check. Markets calmed considerably as the country established a
clearer monetary policy. Even with this positive news, we feel it is too early
to expect a sustained recovery in Brazil. At least in the short-term, we'll
continue to focus our investments in Mexico.
Corporate restructuring and privatization will continue to drive the European
economy over the long term. Companies become more efficient when they move from
government control to private ownership because they are forced to trim costs to
become leaner and more competitive. While recent earnings have declined,
European companies have long-term growth expectations superior to those in the
United States. And European stocks are selling at a cheaper price compared to
U.S. stocks.
OUTLOOK
Economists are concerned about Europe's economic outlook because of widely
varying growth rates among the euro-zone countries; Wim Duisenberg, the ECB
president, left the short-term interest rate alone in July, but hinted that the
ECB may adopt a tightening stance if inflationary pressures begin to mount. Over
the long run, we expect the earnings picture to improve as privatization,
deregulation and restructuring take hold.
We look for continued improvement in Latin America and Asia, with the exception
of Japan because we believe it's too early to say the economic crisis there has
ended.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
Variable
International
Fund EAFE Index
<S> <C> <C>
Jul 9, 94 10000 10000
Dec-94 9419 9921
Jun-95 8913 10195
Dec-95 9313 11067
Jun-96 9843 11584
Dec-96 10106 11771
Jun-97 10925 13109
Dec-97 10806 12013
Jun-98 11949 13945
Dec-98 10737 14179
Jun-99 11244 14836
</TABLE>
The chart above shows the performance of the fund since inception, compared to
the EAFE Index. The index return is for the period 6/30/94 through 6/30/99. The
fund's return 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 AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The Morgan Stanley Capital International EAFE (Europe, Australasia, and the Far
East) 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.
Had fees not been waived, performance would have been lower.
7
<PAGE>
GT GLOBAL
VARIABLE LATIN AMERICA FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year -1.78%
5 Years -0.83%
Life of Fund 4.41%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
Brazilian markets were the key influence on performance during the reporting
period. Though they suffered a severe downturn in late January, they made an
astounding recovery during the early spring. Against this backdrop, the fund
produced excellent results for the six-month period ended June 30, 1999. Total
return for the reporting period was 32.05%, handily thumping the MSCI Emerging
Markets Free Latin America's 31.03% and the IFC Investable Latin America's
30.90%.
MARKET REVIEW
In the aftermath of the Asian and Russian financial crises, many people felt
that investing in Latin America had become too risky. This perception caused a
massive flight of capital from the region in 1998. For months, market watchers
eyed Brazil with special interest, wondering whether fears about a currency
crisis would ever become a reality. Then on January 19, 1999, a day now known as
"Black Friday," Brazil's currency (the real) finally did plummet, and Brazil's
markets took a nosedive along with it. Shortly after, a new Brazilian Central
Bank president, Arminio Fraga, hiked interest rates to keep inflation in check
and create goodwill with investors. Markets have calmed considerably, and
investors have become more willing to invest in Brazilian equities and debt.
Meanwhile, Brazil and the International Monetary Fund reached agreement on a new
loan package. They also outlined a recovery strategy with clear monetary and
fiscal goals. In response, both the real and the markets made significant gains.
Brazil's economy is stronger now than it was in late 1998. Inflation has dropped
sharply, and interest rates are down. However, the economy is still fragile, and
its future success will depend on leadership and discipline at the top.
Overall, for the first half of 1999, Latin American markets took an upward turn.
Stability in Brazil helped Argentina especially, since the two countries are
close trading partners. Argentina would be at risk of severe recession and
competitive pressure if Brazil were to become more unstable.
Mexico is much more affected by what happens in the United States than in
Brazil. Mexican markets have benefited from strong U.S. growth and a boost in
oil prices. Mexico's inflation rate was lower than expected in the first quarter
and interest rates were down.
Elsewhere in Latin America, there was a mixed bag of opportunity and risk.
Chile's economy and currency remained weak, though we believe interest rates
will continue to decline. In Colombia, Peru and Venezuela there were few
attractive stocks to select, and the macroeconomic environments remained
uncertain.
OUTLOOK
Investor confidence is returning, though capital is still scarce for emerging
markets as a whole, and the risks are still high. As more investors participate,
share prices have stabilized somewhat. There are still huge discounts for less
liquid shares (stocks that are harder to sell because of limited investor
interest). A true recovery will be difficult until investors bring more capital
to Latin American markets, and that may not happen without clear signs that
commodity prices have bottomed.
Nevertheless, the outlook for the rest of 1999 is more positive than it was just
six months ago. Latin America still presents strong growth possibilities, of
course accompanied by significant possible risks; historically, the region has
experienced dramatic fluctuations in market performance from one year to the
next. However, it may provide good opportunities for long-term investors who
seek to diversify their portfolios through exposure to this dynamic region.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global IFC
Variable MSCI EMF Investable
Latin Latin America Latin
America Fund Index America Index
<S> <C> <C> <C>
Feb 10, 93 10000 10000 10000
Jun-93 10017 10296 11068
Dec-93 14733 15520 16560
Jun-94 13731 14980 15059
Dec-94 16080 15621 15010
Jun-95 10923 13654 12401
Dec-95 10550 13616 12481
Jun-96 12205 16005 14447
Dec-96 12921 16639 14629
Jun-97 15994 23425 20464
Dec-97 14798 21901 18911
Jun-98 11598 17565 15326
Dec-98 9974 14303 12191
Jun-99 13171 18741 15958
</TABLE>
The chart above shows the performance of the fund since inception, compared to
various indexes. The indexes' returns are for the period 1/31/93 through
6/30/99. The fund's return 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 AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
The MSCI Emerging Markets Free Latin America and the 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 both include the effect of reinvested dividends.
Indexes are unmanaged and not available for direct investment, and do not
include the effects of sales charges and professional management fees. Had fees
not been waived, performance would have been lower. 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
As of June 30, 1999, the fund's seven-day yield was 4.14%. During the six-month
reporting period, the fund maintained a weighted average maturity (WAM) in the
11- to 39-day range. At the end of the reporting period, the WAM stood at 24
days. 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
For much of the reporting period, investors and economists worried that the
strong U.S. economy would touch off inflation. U.S. Treasury securities
performed poorly because of heightened concerns that the Federal Reserve Board
(the Fed) would raise interest rates to slow economic growth and combat
inflation. The primary impetus for these concerns was the dramatic and
unexpected rise of consumer prices in April--the 0.7% increase was the largest
in more than eight years.
Uncertainty concerning the extent that the Fed might raise interest rates eroded
Treasury prices in May and June, sending their yields higher. The yield of the
benchmark 30-year U.S. Treasury bond soared from 5.09% at the beginning of the
reporting period to 6.16% on June 24, its highest level since 1997.
Speculation surrounding the Fed's possible action did not end until June 30,
when the central bank raised the federal funds rate from 4.75% to 5%. At the
same time, the Fed announced that it had shifted from a tightening to a neutral
bias, indicating it planned no further rate hikes in the near future. That
sparked a "relief rally" in the bond market, dropping the yield on the 30-year
Treasury to 5.97% at the close of the reporting period.
The Dow Jones Industrial Average reached two milestones during the first six
months of 1999, closing above 10,000 in March and beyond 11,000 in May. However,
these record-setting performances masked a very narrow market during the first
part of the reporting period. As time went on, though, we began to see a
dramatic reversal of this trend. Markets that had been out of favor for the past
couple of years--small- and mid-sized company stocks, cyclical and value
stocks--were reporting positive earnings that coaxed investors back. As a
result, the overall market in the United States broadened.
The Fed's 1998 rate cuts helped halt the downward spiral that started in Asia
and gave emerging markets--and the global financial system--a big scare last
summer. Asian markets have rallied during recent months, and investor confidence
in Latin America is returning. Some economists also believe that Japan's
financial woes may have bottomed out with markets there on the way back up.
Elsewhere, the debut of Europe's new common currency, the euro, at the beginning
of 1999 went smoothly. But economists are concerned about Europe's economic
outlook because of widely varying growth rates among the euro-zone countries.
And unlike other foreign markets, the performance of European markets during the
past six months has been largely flat.
OUTLOOK
Most economists are betting on continued steady growth in the United States, as
well as low inflation and high employment. We also believe that interest rates
are likely to remain steady, and the Fed seems to agree, as indicated by its
neutral bias. And if the global financial crisis is indeed over, foreign markets
should see continued improvement of their performance in the months ahead.
An investment in the fund is neither insured nor guaranteed by the U.S.
government. There is no assurance that the fund will be able to maintain a
stable net asset value of $1.00 per share.
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
9
<PAGE>
GT GLOBAL
VARIABLE NATURAL RESOURCES FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: January 31, 1995
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year -3.81%
Life of Fund 8.79%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
After several quarters of disappointing returns, the fund posted solid gains for
the six-month reporting period ended June 30, 1999. Total return was 15.69%,
almost doubling the MSCI World Index's 8.51% return. Fund performance was
boosted by a recent surge in certain commodity prices, resulting from a
combination of production cutbacks, unexpectedly strong growth in the United
States and optimism about prospects for a recovery in Asian economies.
MARKET REVIEW
Increasing narrowness in financial markets through early 1999 continued the
dominance of large-cap stocks. The Dow closed above 10,000 for the first time on
March 29, 1999, and surpassed several other milestones in April.
In January, 11 European countries introduced the euro as their new common
currency. While the euro started out strong against the U.S. dollar, it weakened
as it became clear that the U.S. economy was growing much faster than the
European economy. Signs of recovery from Asia and Latin America in early 1999
led many investors to expect that Japan and the rest of Asia will emerge from
recession in the near future.
On March 23, OPEC announced a production cut of two million barrels of oil a day
in hopes of staving off further declines in crude-oil prices. By late June, it
appeared that OPEC members may be living up to their pledge; global oil supply
decreased, and the price of crude oil climbed to more than $20 per barrel. The
production cut, coinciding with a recovery in the steel and forest-products
industries, gave market watchers reason to believe that the resources cycle had
hit bottom and was on its way up. Less than nine months ago, oil prices had
dipped to a 12-year low of below $11 a barrel. Since January, oil is up almost
50%.
In contrast to oil, we have seen a decline in many natural-resources prices, and
the deflationary environment promises no end in the near term. With this in
mind, we have been managing the fund defensively. We continue to invest largely
in the United States and Europe to minimize risks of exposure to weaker markets.
We have also maintained a significant weighting in non-commodity holdings. We
also own natural-resources companies that do not have a direct commodity link,
such as pipelines. These companies, which increase their earnings through
business volume, are not as dependent on commodity prices.
OUTLOOK
With 1999 half over, fears of a recession in the United States have faded, and
international markets have stabilized. Inflation may edge a little higher in the
coming months mainly due to a jump in petroleum prices. However, the imbalance
in supply and demand in the natural-resources sector, combined with slower
economic growth worldwide, keeps us cautious about the rest of the year.
Natural-resources stocks have taken a beating for some time, and while various
reforms are under way, they certainly won't lead to a full recovery overnight.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
Variable Natural MSCI World
Resources Fund Index
<S> <C> <C>
1/31/95 10000 10000
Jun-95 11067 11107
Dec-95 12220 12314
Jun-96 15407 13217
Dec-96 18471 14038
Jun-97 16560 16231
Dec-97 18710 16316
Jun-98 15076 18669
Dec-98 12534 20361
Jun-99 14501 21728
</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 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 AFFECT 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 and not available for direct investment, and do not
include the effects of sales charges and professional management fees.
Had fees not been waived, performance would have been lower.
10
<PAGE>
GT GLOBAL
VARIABLE NEW PACIFIC FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 24.24%
5 Year -5.54%
Life of Fund -1.61%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
We're very pleased to say that the GT Global Variable New Pacific Fund's
performance has shown a marked improvement since our last report to you. For the
six months ended June 30, 1999, total return (without sales charges) was
16.97%.The fund's benchmark, the MSCI AC Pacific Free ex-Japan Index, returned
56.13% for the same period.
MARKET REVIEW
There is definitely a renewed optimism about Asian markets. Investors and
analysts feel that the region finally has hit bottom and started to bounce back.
Interest rates and inflation are down, economies are growing, and corporations
are starting to restructure and project good earnings.
With the U.S. economy showing robust growth in the first quarter of 1999, the
outlook for Asian exports has become more promising. Trade surpluses have
accumulated and inflation has eased, so the interest-rate environment has
remained benign. Throughout Asia, with the exception of Hong Kong, gross
domestic product (GDP) numbers have been stronger than expected. We feel that
Asia is in an early stage of recovery, and the recent strong performance of
cyclical stocks is evidence of a new beginning.
Over the course of the reporting period, we made several changes to the
portfolio. In Australia, stronger-than-expected economic growth sparked fears of
inflation and higher interest rates. Moreover, because investors had seen the
country as a safe haven during the Asian crisis, the market was "over-owned" and
valuations had gotten rather high. Consequently, we lowered our Australia
weighting, mainly by selling industrial stocks that had been a drag on
performance earlier in the year.
We increased our exposure to the Australian resources sector, however, which has
done very well.
In Hong Kong, our weighting has not changed very much, but we've moved away from
defensive utilities stocks and made some more aggressive selections among Hong
Kong's China-related stocks. The Chinese economy has become much more liquid,
which we think will benefit such stocks.
We increased our exposure to Korea and Taiwan by purchasing cyclical stocks,
particularly in the computer and electronics industries. For example, one of our
best holdings was Korean company LG Information and Communication, a maker of
switching systems, transmission equipment, cellular systems and other
communications equipment. The stock, which had been undervalued for quite some
time, finally caught up with the market. In local currency terms, its value
increased over 175%.
OUTLOOK
We expect global demand for Asian exports to remain strong from both the United
States and Europe. Nevertheless, the trade surpluses that have helped Asia's
liquidity are likely to shrink a bit later in the year. Now that the region is
beginning to recover, imports will probably increase. So as the liquidity that
has spurred the latest market rally dries up somewhat, we may see a correction
in the region while investors wait for earnings to pick up.
We think domestic demand will probably remain weak, so we are being very
cautious about lower-quality companies. Of course, while high-quality companies
are the best place to be, they are also commanding a higher premium.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
Variable New MSCI Pacific
Pacific Fund ex-Japan Index
<S> <C> <C>
2/10/93 10000 10000
Jun-93 10892 11328
Dec-93 13392 17475
Jun-94 11990 14907
Dec-94 11722 14983
Jun-95 11655 16030
Dec-95 11697 16925
Jun-96 13875 18500
Dec-96 15320 20402
Jun-97 15091 20725
Dec-97 9022 14081
Jun-98 7259 11688
Dec-98 7710 13146
Jun-99 9018 19054
</TABLE>
The chart above shows the performance of the fund since inception, compared
to the MSCI All Country Pacific ex-Japan Index. Results for the index are for
the period 1/31/93 to 6/30/99. The chart 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
comparable future results.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE. RESULTS OF AN
INVESTMENT MADE TODAY MAY DIFFER SUBSTANTIALLY FROM THE HISTORICAL PERFORMANCE
SHOWN.
On July 5, 1994, the Fund eliminated Japan from its primary investment area.
Had fees not been waived, performance would have been lower. The MSCI AC
(All-Country) Pacific Free ex-Japan Index is a group of unmanaged securities
from all developed and emerging markets in the Pacific Rim, excluding Japan,
tracked by Morgan Stanley Capital International. A "free" index includes only
securities available to non-domestic investors.
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 JUNE 30, 1999
Inception date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year -3.81%
5 Years 8.85%
Life of Fund 7.61%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
For the six months ended June 30, 1999, the fund returned -2.40%, compared to
the -7.19% return of the J.P. Morgan Global Government Bond Index and the 7.23%
return of the J.P. Morgan Emerging Markets Bond Index (Brady). The difference
between the fund's performance and that of the Brady index is due to our
underweighting in emerging markets, which snapped back to life late in the first
half of 1999. The average maturity of our bond holdings was somewhat long, which
has made these investments more susceptible to rising interest rates. Our
high-quality bonds were a disadvantage, since credit spreads tightened during
the period.
MARKET REVIEW
World markets rebounded in late 1998 largely due to a global credit easing
initiated by interest-rate cuts made by the Federal Reserve Board (the Fed). The
Fed's moves helped buoy financial markets and halt the downward spiral that
started in Asia and gave emerging markets-and the global financial system-a big
scare last summer.
The United States continues to see strong economic growth, stable prices for
goods and services, record low unemployment and stable lending rates. The U.S.
economy grew 4.51% during the first quarter of 1999, with inflation below 1% and
unemployment at a 29-year low.
In recent months, investors have been migrating back to emerging-markets and
corporate bonds in search of higher yields. Steady U.S. growth and low interest
rates have made Treasury securities unexciting, so some investors are looking
elsewhere for higher yields. Emerging-markets debt securities enjoyed a strong
rally from early March to the end of April. The relative calm in Brazil was
largely responsible for driving the market higher when it appeared that the
country would not be heading into a debt crisis, at least for the foreseeable
future. Mexico has continued to perform well, partly because of its tight
commercial and investment ties with the still-strong U.S. economy. Argentina has
been helped by Brazil's steps toward recovery but still needs to deal with its
own deepening recession. A commodities rebound fueled by oil-production cutbacks
has also helped the economies of such oil republics as Venezuela and Ecuador.
The International Monetary Fund (the IMF) believes that the world financial
crisis may be over, and it is discussing ways to relieve the crushing debt
burdens being carried by some of the world's poorest countries. Asian markets
have rallied, buoyed by continued good economic news and signs that interest in
buying Asian stocks could be spreading. However, Russia, which continues to
struggle with financial difficulties, is working with the IMF to finalize its
next loan package.
The debut of Europe's new common currency, the euro, at the beginning of 1999
went smoothly. However, the euro has not gained much ground since its issuance
and continues to trail the U.S. dollar. The European Central Bank cut the
euro-zone discount interest rate on April 8, and inflation is low in the region,
which has been a good environment for corporate bonds. But economists are
concerned about Europe's economic outlook because of widely varying growth rates
among the euro-zone countries.
OUTLOOK
The Fed's interest-rate hike, announced on the last day of the reporting period,
was no great surprise. Since the beginning of 1999, rates on U.S. Treasury
securities and financial instruments like mortgages have been rising based on
fear of inflation. The markets anticipated the interest-rate move well before
its announcement, so much of the rise was already priced into these products.
We believe the U.S. economy will remain robust but slow from its recent
exceptional performance, which should benefit high-yield bonds. Emerging-markets
bonds should benefit from a renewed sense of stability.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global JP Morgan
Variable Global JP Morgan
Strategic Government EMBI
Income Fund Bond Index (Brady)
<S> <C> <C> <C>
2/10/93 10000 10000 10000
Dec-93 12754 11082 14250
Dec-94 10575 11289 11587
Dec-95 12637 13403 14779
Dec-96 15364 13093 18826
Dec-97 16462 14189 23081
Dec-98 16361 16362 20499
Jun-99 15969 15184 21969
</TABLE>
The chart above shows the performance of the fund since inception, compared to
two benchmark 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 AFFECT 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. The J.P. Morgan Emerging
Markets Bond Index (Brady) tracks total returns for traded external-debt Brady
bonds (foreign bonds collateralized by U.S. Treasury bonds) in the emerging
markets.
Indexes are unmanaged and not available for direct investment, and do not
include the effects of sales charges and professional management fees.
12
<PAGE>
GT GLOBAL
VARIABLE TELECOMMUNICATIONS FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception date: October 18, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 25.40%
5 Years 24.11%
Life of Fund 21.34%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
Since our last report, the fund has enjoyed significantly better returns due to
continuing dynamic growth in the telecommunications industries. For the six
months ended June 30, 1999, the fund returned 24.98%, far outpacing both the
8.51% return of the MSCI World Index and the 14.36% return of the MSCI
Telecommunications Index.
MARKET REVIEW
Global markets began to rebound in late 1998, largely due to a global credit
easing initiated by the Federal Reserve Board's (the Fed) rate cuts in the
United States. The Fed's moves helped buoy stocks and halt the downward spiral
that started in Asia and gave nearly all emerging markets--and the global
financial system--a big scare last summer.
The debut of Europe's new common currency, the euro, at the beginning of 1999
went smoothly. However, Europe has been enveloped in an economic malaise--the
European Central Bank (the ECB) seems to be divided on the cause of and cure for
Europe's slump. Economists are concerned about Europe's economic outlook because
of widely varying growth rates among the 11 euro-zone countries.
Many analysts feel that the worst may be over in the global financial crisis.
Asian markets have recently rallied, lifted by continued good economic news and
signs of spreading interest in Asian stocks. Investor confidence is also
returning in Latin America. Some economists also believe that Japan's financial
situation may have bottomed out and be on its way back up.
The United States is the center of strong economic growth, stable prices for
goods and services, record low unemployment and stable lending rates. The U.S.
economy grew 4.51% during the first quarter of 1999, with inflation below 1% and
unemployment at a 29-year low.
Telecommunications stocks in general fared well during the first part of 1999,
reflecting continued growth in that sector. In fact, many places in Europe and
Asia see a higher per-capita use of cellular phones than the United States does.
However, telecommunications continues to be a strong sector. Earnings have been
largely positive, and demand remains robust.
OUTLOOK
We believe that the future of telecommunications and the infrastructure lies in
expanding bandwidth to meet the information needs of businesses and consumers.
The pipeline through which information is transported is too slow to handle the
exploding growth of the information age. We believe that the companies that
solve this bandwidth bottleneck will be major wealth creators in the next
decade.
Wireless communications provide another solution to the bandwidth problem.
Wireless phones are becoming mass-market items as service prices fall, and they
represent huge growth potential in developing countries that lack access to
traditional wire-line infrastructure.
For the past several years, the telecommunications market has grown faster than
the overall U.S. economy. We believe that telecommunications will continue to be
a driving force for both the U.S. and global economies. In the short term, the
telecommunication environment should remain strong and overall revenues should
continue to grow at a healthy rate.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global
Variable MSCI MSCI
Telecommunications World Telecommunications
Fund Index Index
<S> <C> <C> <C>
10/18/93 10000 10000 10000
Dec-93 10892 9899 9645
Dec-94 11670 10462 9386
Dec-95 14432 12680 11910
Dec-96 17224 14454 12923
Dec-97 19731 16800 16246
Dec-98 24093 20966 24539
Jun-99 30111 22238 28062
</TABLE>
The chart above shows the performance of the fund since inception, compared
to benchmark indexes. The index returns are for the period 10/31/93 through
6/30/99. The fund's return 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 AFFECT 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 MSC Telecommunications Index is a
market-value-weighted average of securities listed on 10 major stock exchanges.
It includes the effect of reinvested dividends, and it is measured in U.S.
dollars.
Indexes are unmanaged and not available for direct investment, and do not
include the effects of sales charges and professional management fees.
13
<PAGE>
EPS GT GLOBAL
VARIABLE U.S. GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1999
Inception Date: February 10, 1993
FUND PERFORMANCE
AVERAGE ANNUALIZED
<TABLE>
<S> <C>
1 Year 1.87%
5 Years 6.09%
Life of Fund 4.68%
</TABLE>
The performance figures shown, which represent the fund, are not intended to
reflect division performance, and they do not reflect charges at the
separate-account level, which, if applied, would lower the performance results.
PERFORMANCE
Strong economic growth and its resulting inflationary concerns created a
difficult environment for U.S. government-issued debt securities. For the six
months ended June 30, 1999, the fund's total return was -3.06%
MARKET REVIEW
Despite the global economic struggles of the second half of 1998, the United
States enjoyed unexpectedly strong growth of 6.1% in the fourth quarter of 1998
and 4.1% in the first quarter of 1999. This robust economic expansion alleviated
concerns that problems in developing nations would lead to a global recession.
As investor confidence returned, yield replaced safety as the driving force in
the bond market. Demand for government debt securities weakened in favor of
lower-rated higher-yielding securities.
In addition to weakening demand, a combination of factors, most notably comments
by Federal Reserve Board (Fed) chairman Alan Greenspan in February and
suprisingly high Consumer Price Index (CPI) data in April, led investors to
speculate that this strong economic growth would necessitate the tightening of
the federal funds rate. The possibility of a hike in rates created further
demand for higher yielding securities with less sensitivity to interest rate
moves. Government issued debt securities, particularly Treasury securities, were
hurt by this change in market favor.
To a degree, investor concern was warranted, as on June 30 the Fed bumped the
federal funds rate upward by 25 basis points (0.25%) from 4.75% to 5%. The
increase was only a small nudge, but was just enough to moderate the possibility
of inflation. More important, however, was the Fed's declaration of a neutral
bias, indicating its reluctance to adjust rates further in the near future. This
declaration removed uncertainty and created relative stability in the
fixed-income marketplace.
OUTLOOK
The Fed's decision to raise the rate to 5% was a prudent move. With such strong
economic growth, it is crucial that the Fed monitor and temper the rate of
inflation. And while the alarmingly high upturn in retail inflation reflected in
April's CPI data appears to have been a one time aberration, the Fed's action
should provide a good cushion for the economy should the lower inflation
reflected in May and June data prove short-lived.
Additionally, one should never discount the role of investor uncertainty in the
markets. The Fed's declaration of a neutral bias has effectively told the market
that inflation is under control and for the moment further tightening of rates
is unnecessary. This should calm fixed-income markets and create a positive
environment for fixed-income investors.
At the close of the reporting period, the benchmark 30-year Treasury bond was
yielding 5.97% versus 5.09% at the outset. While it has been a bumpy ride, the
bottom line is that higher yields can offer a greater degree of income for
investors. In addition, the country's economic growth, while healthy, seems to
be moderating somewhat. Inflation appears contained, and bonds have been trading
at relatively consistent levels since the Fed rate hike on June 30.
PERFORMANCE SUMMARY
[GRAPH]
<TABLE>
<CAPTION>
GT Global JP Morgan
Variable U.S. U.S.
Government Government
Income Fund Bond Index
<S> <C> <C>
2/10/93 10000 10000
Dec-93 10638 10792
Dec-94 9971 10479
Dec-95 11440 12296
Dec-96 11695 12658
Dec-97 12666 13924
Dec-98 13391 15351
Jun-99 13390 14927
</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 AFFECT 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.
Had fees not been waived, performance would have been lower.
14
<PAGE>
GT GLOBAL
ALLOCATOR
FUNDS'
FINANCIAL
STATEMENTS
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS & NOTES--4.29% AMOUNT (a) VALUE
- -------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Investment Banking/Brokerage--0.68%
Goldman Sachs Group, Inc. (The), Notes, 2.00%, 07/01/06 .... $ 110,000 $ 111,513
-----------
Publishing (Newspapers)--0.54%
Tribune Company, Unsec. PHONES, 2.00%, 05/15/29 ............ 700 89,425
-----------
Retail (Drug Stores)--1.32%
Rite Aid Corp., Conv. Sub. Notes, 5.25%, 09/15/02 .......... 220,000 219,175
-----------
Services (Advertising/Marketing)--0.60%
Interpublic Group of Companies, Inc. (The), Conv. Notes,
1.87%, 06/01/06 (Acquired 05/26/99; Cost $91,532) (b) .... 110,000 99,962
-----------
Services (Commercial & Consumer)--0.42%
CUC International, Inc., Conv. Sub. Notes, 3.00%,
02/15/02 .................................................. 73,000 69,624
-----------
Waste Management--0.73%
WMX Technologies, Conv. Sub. Notes, 2.00%, 01/24/05 ........ 110,000 119,900
-----------
TOTAL U.S. DOLLAR DENOMINATED CONVERTIBLE BONDS & NOTES (cost
$703,944) ................................................... 709,599
-----------
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--57.20%
- --------------------------------------------------------------
Airlines--0.55%
Northwest Airlines Corp., Unsec. Gtd. Notes, 7.875%,
03/15/08 .................................................. 100,000 90,756
-----------
Auto Parts & Equipment--1.00%
American Axle & Manufacturing Holdings, Inc., Sr. Unsec.
Gtd. Sub. Notes, 9.75%, 03/01/09 .......................... 125,000 125,937
Delco Remy International Inc., Sr. Notes, 8.625%,
12/15/07 .................................................. 40,000 39,000
-----------
164,937
-----------
Banks (Money Center)--1.67%
Bayerische Landesbank Girozentrale (Germany), Unsec. Sub.
Notes, 5.875%, 12/01/08 ................................... 140,000 130,143
Chase Manhattan Corp., Unsec. Sub. Notes, 6.25%, 01/15/06
(Acquired 08/23/96; Cost $143,883) (b) ................... 152,000 145,983
-----------
276,126
-----------
Broadcasting (Television, Radio & Cable)--5.72%
Allbritton Communication, Sr. Sub. Notes, 8.875%, 02/01/08
(Acquired 01/15/98; Cost $54,592) (b) .................... 55,000 52,800
Chancellor Media Corp., Sr. Unsec. Gtd. Sub. Notes, 9.00%,
10/01/08 .................................................. 75,000 76,500
Charter Communications Holdings LLC, Sr. Notes, 8.625%,
04/01/09 (Acquired 03/12/99; Cost $129,604) (b) .......... 130,000 124,962
Comcast Cable Communications, Unsec. Unsub. Notes, 6.20%,
11/15/08 .................................................. 300,000 279,921
Comcast Cellular Holdings, Sr. Unsec. Notes, 9.50%,
05/01/07 .................................................. 100,000 112,125
Lenfest Communications, Sr. Sub. Unsec. Notes, 8.25%,
02/15/08 .................................................. 150,000 154,875
Lin Television Corp., Sr. Unsec. Gtd. Notes, 8.375%,
03/01/08 .................................................. 150,000 144,750
-----------
945,933
-----------
</TABLE>
See Notes to Financial Statements.
F1
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--57.20%
- --------------------------------------------------------------
<S> <C> <C> <C>
Building Materials--0.89%
Atrium Companies, Inc., Sr. Sub. Notes, 10.50%, 05/01/09
(Acquired 05/10/99; Cost $147,759) (b) ................... $ 150,000 $ 147,000
-----------
Chemicals--0.94%
Lyondell Chemical Company, Sr. Sub. Notes, 10.875%, 05/01/09
(Acquired 05/11/99; Cost $150,000) (b) ................... 150,000 155,250
-----------
Chemicals (Diversified)--0.92%
Huntsman ICI Chemicals LLC, Sr. Sub. Notes, 10.125%,
07/01/09 (Acquired 06/22/99; Cost $150,000) (b) .......... 150,000 152,062
-----------
Chemicals (Specialty)--0.92%
ZSC Specialty Chemicals PLC (United Kingdom), Sr. Notes,
11.00%, 07/01/09 (Acquired 06/24/99; Cost $150,000)
(b) ...................................................... 150,000 151,500
-----------
Computers (Software & Services)--1.31%
Unisys Corp., Sr. Notes, 7.875%, 04/01/08 .................. 150,000 151,125
Viasystems, Inc., Sr. Sub Unsec. Notes, 9.75%, 06/01/07 .... 75,000 66,000
-----------
217,125
-----------
Consumer Finance--0.86%
General Motors Accept Corp., Unsec. Notes, 6.625%,
10/15/05 .................................................. 143,000 141,820
-----------
Containers & Packaging (Paper)--0.34%
Norampac, Inc., Sr. Notes, 9.50%, 02/01/08 ................. 55,000 56,650
-----------
Cosmetics & Toiletries--0.44%
Drypers Corp., Series B Sr. Notes, 10.25%, 06/15/07 ........ 90,000 72,450
-----------
Equipment (Semiconductor)--0.58%
Amkor Technology, Inc., Sr. Sub. Notes, 10.50%, 05/01/09
(Acquired 05/06/99; Cost $100,000) (b) ................... 100,000 96,500
-----------
Foods--2.23%
Eagle Family Foods, Unsec. Gtd. Notes, 8.75%, 01/15/08 ..... 60,000 53,700
International Home Foods, Inc., Sr. Gtd. Sub. Notes,
10.375%, 11/01/06 ......................................... 50,000 52,750
Smithfield Foods, Inc., Sr. Unsec. Sub. Notes, 7.625%,
02/15/08 .................................................. 125,000 113,750
Vlasic Foods International, Inc., Sr. Sub. Notes, 10.25%,
07/01/09 (Acquired 06/22/99; Cost $147,708) (b) .......... 150,000 148,688
-----------
368,888
-----------
Gaming, Lottery & Parimutuel Companies--4.29%
Circus Circus Enterprises, Sr. Sub. Notes, 9.25%,
12/01/05 .................................................. 75,000 76,500
Hollywood Casino Corp., Sr. Sec. Notes, 11.25%, 05/01/07
(Acquired 05/14/99; Cost $125,000) (b) ................... 125,000 125,625
Hollywood Park, Inc., Sr. Gtd. Unsec. Sub. Notes, 9.25%,
02/15/07 .................................................. 75,000 74,250
Horseshoe Gaming Holdings, Sr. Sub. Notes, 8.625%, 05/15/09
(Acquired 05/06/99; Cost $199,270) (b) ................... 200,000 194,500
Isle of Capri Casinos, Sr. Sub. Notes, 8.75%, 04/15/09
(Acquired 04/20/99; Cost $150,000) (b) ................... 150,000 141,375
Park Place Entertainment, Sr. Unsec. Sub. Notes, 7.875%,
12/15/05 .................................................. 45,000 43,088
</TABLE>
See Notes to Financial Statements.
F2
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--57.20%
- --------------------------------------------------------------
<S> <C> <C> <C>
Gaming, Lottery (Continued)
Penn National Gaming, Inc., Sr. Unsec. Gtd. Notes, 10.625%,
12/15/04 .................................................. $ 55,000 $ 55,275
-----------
710,613
-----------
Health Care (Hospital Management)--1.80%
Chattem, Inc., Sr. Unsec. Gtd. Sub. Notes, 8.875%,
04/01/08 .................................................. 150,000 144,750
Triad Hospitals Holdings Inc., Sr. Sub. Notes, 11.00%,
05/15/09 (Acquired 04/30/99; Cost $150,000) (b) .......... 150,000 153,375
-----------
298,125
-----------
Health Care (Managed Care)--0.92%
Express Scripts, Inc., Sr. Notes, 9.625%, 06/15/09 (Acquired
06/11/99; Cost $149,289) (b) ............................. 150,000 153,000
-----------
Homebuilding--1.78%
Engle Homes, Inc., Series C, Sr. Unsec. Gtd. Notes, 9.25%,
02/01/08 .................................................. 150,000 143,250
Psinet, Inc., Sr. Unsec. Notes, 10.00%, 02/15/05 ........... 150,000 151,500
-----------
294,750
-----------
Housewares--0.23%
Syratech Corp., Sr. Unsec. Gtd. Notes, 11.00%, 04/15/07 .... 60,000 38,700
-----------
Iron & Steel--0.03%
Acme Metals, Inc., Sr. Unsec. Gtd. Notes, 10.875%, 12/15/07
(c) (f) .................................................. 45,000 5,175
-----------
Leisure Time (Products)--0.85%
Florida Panthers Holdings, Sr. Sub. Notes, 9.875%, 04/15/09
(Acquired 04/15/99; Cost $150,000) (b) ................... 150,000 141,000
-----------
Manufacturing (Diversified)--0.91%
Mechala Group (Jamaica) Series B, Sr. Sec. Gtd., 12.75%,
12/30/99 .................................................. 44,000 10,780
Telecorp PCS, Inc., Sr. Disc. Notes, 11.625%, 04/15/09
(Acquired 04/20/99; Cost $143,950) (b) (d) ............... 250,000 139,375
-----------
150,155
-----------
Manufacturing (Specialized)--1.33%
Fairchild Corp., Sr. Unsec. Sub. Gtd. Notes, 10.75%,
04/15/09 (Acquired 04/15/99; Cost $150,000) (b) .......... 150,000 148,500
Fisher Scientific International, Sr. Unsec. Sub. Note,
9.00%, 02/01/08 ........................................... 75,000 71,625
-----------
220,125
-----------
Office Equipment & Supplies--0.58%
United Stationers Supply, Sr. Gtd. Sub. Notes, 8.375%,
04/15/08 .................................................. 100,000 95,500
-----------
Oil & Gas (Drilling & Equipment)--0.62%
Pride International, Inc., Sr. Unsec. Notes, 10.00%
06/01/09 .................................................. 100,000 102,500
-----------
Photography/Imaging--2.13%
Polaroid Corp., Sr. Unsec. Notes, 11.50%, 02/15/06 ......... 60,000 63,900
Xerox Corp., Notes, 5.50%, 11/15/03 ........................ 300,000 288,933
-----------
352,833
-----------
</TABLE>
See Notes to Financial Statements.
F3
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--57.20%
- --------------------------------------------------------------
<S> <C> <C> <C>
Retail (Discounters)--0.89%
Ames Department Stores, Sr. Notes, 10.00%, 04/15/06
(Acquired 04/20/99; Cost $150,000) (b) ................... $ 150,000 $ 147,938
-----------
Retail (Specialty-Apparel)--0.72%
Riddell Sports, Inc., Sr. Unsec. Gtd. Notes, 10.50%,
07/15/07 .................................................. 135,000 119,475
-----------
Services (Commercial & Consumer)--0.44%
Willis Corroon Corp., Sr. Sub. Notes, 9.00%, 02/01/09
(Acquired 01/28/99; Cost $75,000) (b) .................... 75,000 72,656
-----------
Services (Computer Systems)--0.85%
Rhythms Netconnections, Sr. Notes, 12.75%, 04/15/09 ........ 150,000 141,000
-----------
Shipping--0.58%
Oglebay Norton Co., Sr. Sub. Notes, 10.00% 02/01/09
(Acquired 01/26/99; Cost $97,023) (b) .................... 100,000 96,000
-----------
Sovereign Debt--16.02%
Algeria Tranche 1 Loan Assignment (Algeria), Bonds, 6.00%,
09/04/06 (Acquired 06/15/98; Cost $80,408) (b) (f) ....... 99,000 61,875
Bank of Foreign Economic Affairs (Vneshconombank) (Russia),
Principal Loans, 6.063%, 12/15/20 (c) (e) ................ 667,458 82,184
Interest in Arrears Notes, 6.063%, 12/15/15 (c) (e) ...... 11,239 1,784
Brazil (Brazil), Floating Rate Disc. Notes, 5,875%, 04/15/24
(c) (e) .................................................. 480,000 297,589
Croatia (Croatia), Floating Rate Notes, Series A, 5.812%,
07/31/10 (e) ............................................. 86,000 68,630
Ecuador-Global Bearer (Ecuador), Floating Rate Notes, 6.00%,
02/27/15 (e) ............................................. 65,418 20,875
Jordan (Jordan), Sec. Gtd. Bonds, 5.50%, 12/23/23 (d) ..... 114,000 68,872
Malaysia (Malaysia), Bonds, 8.75%, 06/01/09 (f) ........... 35,000 35,632
Ministry Finance Russia (Vneshtorgbank) (Russia), Deb.-GDR,
3.00%, 05/14/06 ........................................... 9,000 2,210
Republic of Argentina (Argentina),
Bonds, 12.125%, 02/25/19 .................................. 49,000 44,223
Notes, 11.75%, 04/07/09 ................................... 250,000 225,625
Unsec. Unsub. Bonds, 11.375%, 01/30/17 .................... 131,000 112,988
Republic of Brazil (Brazil),
Notes, 11.625%, 04/15/04 .................................. 416,000 385,840
Series C Bonds, 8.00%, 04/15/14 ........................... 206,816 129,965
Republic of Bulgaria (Bulgaria), Series A Sec. Disc. Bonds,
5.875%, 07/28/24 (e) ..................................... 243,000 165,810
Republic of Columbia (Columbia), Bonds, 9.75%, 04/23/09 .... 23,000 19,033
Republic of Korea (Korea), Unsub. Unsec. Notes, 8.875%,
04/15/08 .................................................. 89,000 93,654
Republic of Panama (Panama),
Bonds, 8.875%, 09/30/27 ................................... 24,000 19,792
Bonds, 9.375%, 04/01/29 ................................... 27,000 25,515
Republic of Peru (Peru), PDI Bonds, 4.50%, 03/07/17 (d) ... 103,000 61,933
Republic of Philippines (Philippines), Bonds, 9.875%,
01/15/19 .................................................. 14,000 13,738
Republic of Venezuela (Venezuela),
FLIRB Deb. Bond, 6.00%, 03/31/07 (e) ..................... 190,475 143,735
United Mexican States (Mexico),
Bonds, 10.375%, 02/17/09 .................................. 32,000 32,200
Bonds, 11.375%, 09/15/16 .................................. 49,000 51,573
Bonds, 11.50%, 05/15/26 (e) .............................. 331,000 361,262
</TABLE>
See Notes to Financial Statements.
F4
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--57.20% CURRENCY AMOUNT (a) VALUE
- -------------------------------------------------------------- -------- ----------- -----------
<S> <C> <C> <C>
Unsec. Bonds, 9.25%, 09/15/27 ............................. $ 191,000 $ 124,133
-----------
............................................................. 2,650,670
Telecommunications (Cellular/Wireless)--0.59%
Crown Castle International Corp., Sr. Disc. Notes, 10.375%,
05/15/11 (d) ............................................. 165,000 97,556
-----------
Telecommunications (Long Distance)--1.52%
Level 3 Communications, Sr. Unsec. Notes, 9.125%,
05/01/08 .................................................. 100,000 99,125
Primus Telecom Group, Sr. Notes, 11.25%, 01/15/09 (Acquired
01/22/99; Cost $150,000) (b) ............................. 150,000 153,000
-----------
252,125
-----------
Telephone--0.89%
Intermedia Communications, Inc., Sr. Unsec. Notes, 9.50%,
03/01/09 .................................................. 150,000 146,625
-----------
Textiles (Home Furnishings)--0.86%
Pillowtex Corp., Sr. Gtd. Sub. Notes, 10.00%, 11/15/06 ..... 150,000 142,500
-----------
TOTAL U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES
(cost $10,050,362) .......................................... 9,466,018
-----------
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS &
NOTES--13.75% (G) CURRENCY
- -------------------------------------------------------------- --------
Canada--1.27%
Canadian Government (Sovereign Debt), Bonds, 6.00%,
06/01/08 .................................................. CAD 300,000 209,075
-----------
Germany--2.00%
Bundesrepublik Deutschland (Sovereign Debt), Bonds, 6.50%,
07/04/27 .................................................. EUR 280,000 330,995
-----------
Greece--4.88%
Hellenic Republic, (Sovereign Debt), Bonds
8.51%, 03/21/02 .......................................... GRD 50,000,000 167,482
8.14%, 06/19/07 .......................................... GRD 50,000,000 182,823
8.70%, 04/08/05 .......................................... GRD 130,000,000 457,687
-----------
807,992
-----------
Italy--1.57%
Buoni Poliennali del Tesoro (Banks-Money Center), Deb.,
8.50%, 01/01/04 ........................................... EUR 215,000 259,669
-----------
Netherlands--1.14%
Netherlands Government (Sovereign Debt), Bonds, 5.50%,
01/15/28 .................................................. EUR 181,512 188,765
-----------
United Kingdom--1.09%
Colt Telecom Group PLC (Telephone), Sr. Notes, 7.625%,
07/31/08 .................................................. DEM 150,000 79,143
London International Exhibit Center (Land Development), Sec.
Bonds, 7.71%, 11/25/15 .................................... GBP 80,000 101,775
-----------
180,918
-----------
United States--1.80%
Federal National Mortgage Association (Sovereign Debt),
Notes, 7.25%, 06/20/02 .................................... NZD 550,000 $ 297,326
-----------
TOTAL NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS &
NOTES (Cost $2,490,819) ..................................... 2,274,740
-----------
</TABLE>
See Notes to Financial Statements.
F5
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & PRINCIPAL MARKET
NOTES--13.75% (G) CURRENCY AMOUNT (a) VALUE
- -------------------------------------------------------------- -------- ----------- -----------
<S> <C> <C> <C>
Asset-Backed Securities--6.89%
-----------
Real Estate Investment Trusts--1.05%
Contimortgage Home Equity Loan Trust, Sub. Series 1999-2 B,
8.50%, 04/25/29 ........................................... 200,000 173,312
-----------
Retail (Home Shopping)--2.99%
Fingerhut Master Trust, Sub. Floating Notes, 5.94%, 02/15/07
(e) ...................................................... 500,000 495,547
-----------
Services (Commercial & Consumer)--2.85%
Aircraft Finance Trust, Series 1999-1A Sub. Bonds, 8.00%,
05/15/24 .................................................. 500,000 472,009
-----------
TOTAL ASSET-BACKED SECURITIES (cost $1,173,793) .............. 1,140,868
-----------
U.S. GOVERNMENT AGENCY SECURITIES--3.89%
- --------------------------------------------------------------
Government National Mortgage Association TBA (h)
7.00%, 01/22/29 (Cost $644,313) .......................... 650,000 643,094
-----------
U.S. TREASURY NOTES & BONDS--10.78%
- --------------------------------------------------------------
4.25%, 11/15/03 ............................................ 300,000 283,167
5.625%, 05/15/08 ........................................... 1,000,000 980,250
4.75%, 11/15/08 ............................................ 26,000 23,884
6.375%, 08/15/27 ........................................... 485,000 495,898
-----------
TOTAL U.S. TREASURY NOTES & BONDS (Cost $1,947,338) .......... 1,783,199
-----------
WARRANTS--0.09% SHARES
- -------------------------------------------------------------- -----------
Sovereign Debt--0.09%
Republic of Argentina, expiring 12/03/99 (i) .............. 180 1,282
United Mexican States, expiring 02/18/00 (i) .............. 180 11,273
Republic of Argentina, expiring 02/25/00 (i) .............. 198 2,005
-----------
TOTAL WARRANTS (Cost $0) ..................................... 14,560
-----------
</TABLE>
See Notes to Financial Statements.
F6
<PAGE>
GTG VARIABLE STRATEGIC INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
REPURCHASE AGREEMENT--4.74% (j) AMOUNT (a) VALUE
- -------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
State Street Bank & Trust Co., 4.70%, 07/01/99 (Cost
$785,000) (k) ............................................ $ 785,000 $ 785,000
-----------
TOTAL INVESTMENTS--101.63% ................................... 16,817,078(l)
Liabilities Less Other Assets--(1.63)% ....................... (270,080)
-----------
NET ASSETS--100.00% .......................................... $16,546,998
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Principal amount is in U.S. Dollars, except as indicated by note
(g).
(b) Restricted security. May be resold to qualifiedinstitutional buyers
in accordance with the provisions of Rule 144 under the Securities
Act of 1933, as amended. The valuation of these securities has been
determined in accordance with procedures established by the Board
of Trustees. The aggregate market value of these securities at
06/30/99 was $3,002,926 which represented 18.15% of the Fund's net
assets.
(c) Defaulted security. Currently, the issuer is in default with
respect to interest payments.
(d) The rate shown on step up coupon bonds represents the coupon rate
at which the bond will accrue at a specified future date.
(e) The coupon rate shown on floating rate note represents rate at the
period end.
(f) Security fair valued in accordance with procedures established by
the Board of Trustees.
(g) Foreign denominated security. Par value and coupon are denominated
in currency indicated.
(h) Security purchased on a forward commitment basis.
(i) Non-income producing security acquired as part of a unit with or in
exchange for other securities.
(j) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repurchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(k) Repurchase agreement entered into 06/30/99 with a maturing value of
$785,102. Collateralized by U.S. Treasury securities.
(l) For federal income tax purposes cost is $17,915,080 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 134,567
Unrealized depreciation (1,232,569)
-------------
Net unrealized depreciation $ (1,098,002)
-------------
-------------
</TABLE>
Investment Abbreviations:
ADR--American Depositary Receipt
CAD--Canadian Dollars
Conv.--Convertible
Deb.--Debentures
DEM--German Deutsche Mark
Disc.--Discounted
EUR--Euro
FLIRB--Floating Interest Rate Bonds
GBP--British Pound Sterling
GDR--Global Depositary Receipt
Gtd.--Guaranteed
NZD--New Zealand Dollar
PDI--Past Due Interest
PHONES--Participation Hybrid Option Note Exchangeable Securities
Sr.--Senior
Sub.--Subordinated
TBA--To Be Announced
Unsec.--Unsecured
Unsub.--Unsubordinated
See Notes to Financial Statements.
F7
<PAGE>
GTG VARIABLE GLOBAL GOVERNMENT INCOME FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
CORPORATE BONDS --11.35% CURRENCY AMOUNT(a) VALUE
- --------------------------------------------------------------- -------- ----------- ----------
<S> <C> <C> <C>
Australia--1.08%
KFW International Finance (Investment Banking/Brokerage),
Unsec. Unsub. Bonds, 7.25%, 07/16/07 ....................... AUD $ 100,000 $ 67,938
----------
Germany--1.47%
Bayerische Landesbany NY (Banks-Money Center), Unsec. Sub.
Notes, 5.875%, 12/01/08 .................................... USD 100,000 92,960
----------
Switzerland--5.55%
SBC Jersey, (Financial-Diversified), Sub. Bonds, 8.75%,
06/20/05 ................................................... CHF 200,000 350,687
----------
Tunisia--3.25%
Banque Cent de Tunisie (Banks-Money Center), Bonds, 8.25%,
09/19/27 ................................................... USD 250,000 205,421
----------
TOTAL CORPORATE BONDS (cost $775,892) ......................... 717,006
----------
GOVERNMENT BONDS & NOTES(b)--33.95%
- ---------------------------------------------------------------
Canada--2.54%
Canadian Government, Bonds, 6.00%, 06/01/08 ................. CAD 230,000 160,291
----------
Denmark--6.82%
Kingdom of Denmark, Bonds, 7.00%, 11/10/24 .................. DKK 2,700,000 430,779
----------
Germany--3.19%
Bundesrepublic Deutschland, Bonds,
6.00%, 01/05/06 ........................................... EUR 50,000 56,547
6.50%, 07/04/27 ........................................... EUR 125,000 144,661
----------
201,208
----------
Greece--4.48%
Hellenic Republic, Bonds,
9.20%, 03/21/02 ........................................... GRD 30,000,000 100,489
8.80%, 06/19/07 ........................................... GRD 50,000,000 182,823
----------
283,312
----------
Italy--7.63%
Buoni Poliennali del Tesoro,
Deb., 8.50%, 01/01/04 ..................................... EUR 225,000 271,746
Bonds, 7.25%, 11/01/26 .................................... EUR 170,000 210,236
----------
481,982
----------
Netherlands--2.05%
Netherlands Government, Bonds, 5.50%, 01/15/28 .............. EUR 124,789 129,775
----------
United Kingdom--5.71%
Treasury, Gtd. Bonds, 9.00%, 10/13/08 ....................... GBP 180,000 360,486
----------
Uruguay--1.53%
Republica Orient Uruguay , Unsec. Bonds, 7.875%, 07/15/27 ... USD 100,000 96,776
----------
TOTAL GOVERNMENT BONDS & NOTES (cost $2,396,455) .............. 2,144,609
----------
</TABLE>
See Notes to Financial Statements.
F8
<PAGE>
GTG VARIABLE GLOBAL GOVERNMENT INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MORTGAGED BACKED NOTES--3.10% CURRENCY AMOUNT (a) VALUE
- --------------------------------------------------------------- -------- ----------- ----------
<S> <C> <C> <C>
Denmark--3.10%
Realkredit Danmark A/S (Banking), 6.00%, 10/01/26 (cost
$226,296) .................................................. DKK $ 1,560,000 $ 195,921
----------
U.S. TREASURY NOTES & BONDS--46.98%
- ---------------------------------------------------------------
Notes, 4.875%, 03/31/01 ................................... USD 900,000 890,865
Notes, 5.625%, 05/15/08 ................................... USD 1,815,000 1,779,153
Notes, 4.750%, 11/15/08 ................................... USD 280,000 257,211
Bonds, 6.375%, 08/15/27 ................................... USD 40,000 40,899
----------
TOTAL U.S. TREASURY NOTES & BONDS (cost $3,193,359) ........... 2,968,128
----------
U.S. GOVERNMENT AGENCY SECURITIES--6.93%
- ---------------------------------------------------------------
Federal Home Loan Mortgage Corp., Pass through Certificates,
8.50%, 03/01/10 ............................................ USD 34,326 35,614
Federal National Mortgage Association, Sr. Unsub. Bonds,
6.375%, 08/15/07 ........................................... AUD 200,000 130,235
Government National Mortgage Association, Pass Through
Certificates, 7.00%, 07/15/29 .............................. USD 275,000 272,078
----------
TOTAL U.S. GOVERNMENT AGENCY SECURITIES (cost $452,776) ....... 437,927
----------
REPURCHASE AGREEMENT--0.97% (b)
- ---------------------------------------------------------------
State Street Bank & Trust Co., 4.70%, 7/01/99 (c) (cost
$61,000) ................................................... USD 61,000 61,000
----------
TOTAL INVESTMENTS--103.28% .................................... 6,524,591(d)
Liabilities Less Other Assets--(3.28)% ........................ (207,329)
----------
NET ASSETS--100.00% ........................................... $6,317,262
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Par value and coupon are denominated in currency indicated.
(b) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the fund upon entering into the repurchase agreement. The
collateral is marked daily to ensure its market value is at least
102% of the sales price of the repurchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 06/30/99 with a maturing value of
$61,008. Collateralized by U.S. Government obligations.
(d) Investments have the same cost for federal tax and financial
statement purposes and unrealized appreciation (depreciation) is as
follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 9,084
Unrealized depreciation: (590,271)
-------------
Net unrealized depreciation: $ (581,187)
-------------
-------------
</TABLE>
Abbreviations:
AUD--Australian Dollar
CAD--Canadian Dollar
CHF--Swiss Franc
Conv.--Convertible
Deb.--Debentures
DKK--Danish Krone
EUR--Euro
GBP--British Pound Sterling
GRD--Greek Drachma
Gtd.--Guaranteed
Sr.--Senior
Sub.--Subordinated
Unsec.--Unsecured
Unsub.--Unsubordinated
See Notes to Financial Statements.
F9
<PAGE>
GTG VARIABLE U.S. GOVERNMENT INCOME FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
U.S. GOVERNMENT & GOVERNMENT AGENCY SECURITIES--75.25% AMOUNT VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Federal Assistance Corp.,--1.46%
Bonds, 9.375%, 07/21/03 ................................... $ 75,000 $ 83,527
----------
Federal Home Loan Mortgage Corp.("FHLMC")--30.36%
Pass Through Certificates,
5.75%, 07/15/03 ........................................... 1,300,000 1,282,723
6.00%, 09/01/13 ........................................... 467,997 452,052
----------
1,734,775
----------
Student Loan Marketing Association ("SLMA")--6.21%
Medium Term Notes,
7.50%, 03/08/00 ........................................... 350,000 354,861
----------
Tennessee Valley Authority--7.05%,
Debentures,
6.375%, 06/15/05 .......................................... 400,000 402,880
----------
U.S. Treasury Bonds--25.02%
9.25%, 02/15/16 ........................................... 600,000 782,298
7.625%, 02/15/25 .......................................... 550,000 647,295
----------
1,429,593
----------
U.S. Treasury Notes--5.15%
5.625%, 05/15/08 .......................................... 300,000 294,075
----------
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY SECURITIES (Cost
$4,506,821) .................................................. 4,299,711
----------
Mortgage Backed Securities 13.31%
Federal National Mortgage Association ("FNMA")--9.97%
Deb.,
6.80%, 01/10/03 ........................................... 90,000 91,927
Pass Through Certificates,
7.00%, 03/01/04 ........................................... 104,700 105,093
6.00%, 12/01/08 ........................................... 95,341 92,570
6.50%, 09/01/27 ........................................... 289,375 280,149
----------
569,739
----------
Government National Mortgage Association ("GNMA")--3.34%
Pass Through Certificates,
7.50%, 03/15/08 ........................................... 188,947 191,073
----------
TOTAL MORTGAGE BACKED SECURITIES (cost $770,373) .............. 760,812
----------
</TABLE>
See Notes to Financial Statements.
F10
<PAGE>
GTG VARIABLE U.S. GOVERNMENT INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
SUPRANATIONAL BONDS--9.55% AMOUNT VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Asia Development Bank, Deb., 8.00%, 04/30/01 ................ $ 200,000 $ 207,122
International Bank for Reconstruction & Development, Unsub.
Unsec. Notes, 8.25%, 09/16/03 .............................. 350,000 338,390
----------
TOTAL SUPRANATIONAL BONDS (cost $531,086) ..................... 545,512
----------
REPURCHASE AGREEMENT--0.26% (a)
- ---------------------------------------------------------------
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost $15,000)
(b) ....................................................... 15,000 15,000
----------
TOTAL INVESTMENTS--98.37% ..................................... 5,621,035(c)
Other Assets Less Liabilities--1.63% .......................... 93,141
----------
NET ASSETS--100.00% ........................................... $5,714,176
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repuchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(b) Repurchase agreement entered into 6/30/99 with a maturing value
of $15,002. Collateralized by U.S. Government obligations.
(c) Investments have the same cost for federal tax and financial
statement purposes and unrealized appreciation (depreciation) is as
follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 20,477
Unrealized depreciation: (222,722)
-------------
Net unrealized depreciation: $ (202,245)
-------------
-------------
</TABLE>
Investment Abbreviations:
Deb.--Debentures
Unsec.--Unsecured
Unsub.--Unsubordinated
See Notes to Financial Statements.
F11
<PAGE>
GTG VARIABLE LATIN AMERICA FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--96.75% SHARES VALUE
- -------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Argentina--9.90%
Acindar Industria Argentina de Aceros S.A. (Iron & Steel)
(a) ....................................................... 53,667 $ 57,969
Banco de Galicia y Buenos Aires S.A. de C.V. - ADR
(Banks-Regional) .......................................... 5,743 116,298
Banco Hipotecario S.A. (Banks-Regional) .................... 12,188 124,333
Banco Hipotecario S.A. - Wts. (Banks-Regional), expiring
02/02/04 (a) .............................................. 50 28,500
Banco Rio de La Plata S.A. - ADR (Banks-Major Regional) .... 15,000 142,500
Bansud S.A. - Class B (Banks-Regional) (a) ................. 22,700 57,893
IRSA Inversiones y Representaciones S.A. - GDR (Land
Development) .............................................. 3,789 116,971
Juan Minetti S.A. (Construction-Cement & Aggregates) (a) ... 19,000 49,407
Nortel Inversora S.A. - ADR (Telephone) .................... 19,400 337,075
Quilmes Industrial S.A. - ADR (Beverages-Alcoholic) ........ 13,300 164,587
-----------
1,195,533
-----------
Brazil--34.23%
Caemi Mineracao E Metalurgia S.A. - Pfd. (Iron & Steel) .... 1,356 45,953
Companhia Brasileira de Petroleo Ipiranga (Oil &
Gas-Refining & Marketing) ................................. 14,594 107,075
Companhia Cimento Portland Itau (Construction-Cement &
Aggregates) ............................................... 68 6,529
Companhia de Eletricidade do Estado da Bahia (Electric
Companies) ................................................ 4,960 117,662
Companhia de Saneamento Basico do Estado de Sao Paulo (Water
Utilities) ................................................ 1,832 145,906
Companhia de Tecidos Norte de Minas (Textiles-Specialty) ... 1,056 88,273
Companhia Energetica de Minas Gerais - ADR (Electric
Companies) ................................................ 12,583 262,597
Companhia Paranaense de Energia-Copel (Electric
Companies) ................................................ 14,416 71,490
Companhia Paranaense de Energia-Copel - ADR (Electric
Companies) ................................................ 13,673 114,511
Companhia Paulista de Forca e Luz (Electric Companies)
(a) ....................................................... 430 27,687
Companhia Vale de Rio Doce - Pfd. Class A (Iron & Steel) ... 14,980 294,439
Eletricidade de Sao Paulo S.A. (Electric Companies) ........ 3,284 145,612
Embratel Participacoes S.A. (Telecommunications-Long
Distance) ................................................. 11,800 163,954
Itausa - Investimentos Itau S.A. (Investment Management) ... 428,109 227,293
Petroleo Brasileiro S.A. - Petrobras - Pfd. (Oil &
Gas-Exploration & Production) ............................. 3,170 490,524
Tele Centro Sul Participacoes S.A. (Telephone) (a) ......... 17,778 93,886
Tele Centro Sul Participacoes S.A. - ADR (Telephone) ....... 2,500 138,750
Tele Norte Leste Participacoes S.A. (Telephone) ............ 9,692 175,173
Telecomunicacoes Brasileiras S.A. (Telephone) (a) .......... 8,793 248
Telecomunicacoes Brasileiras S.A. - C.M. (Telephone) ....... 7,568 363,333
Telecomunicacoes de Sao Paulo S.A. (Telephone) (a) ......... 1,428 118,563
Telecomunicacoes de Sao Paulo S.A. - Pfd. (Telephone) ...... 757 89,830
Telepar Celular S.A. - Pfd. - Class B
(Telecommunications-Cellular/Wireless) (a) ................ 530 28,438
Telesp Celular S.A. (Telecommunications-Cellular/Wireless)
(a) ....................................................... 1,183 37,434
Telesp Celular S.A. - Pfd. - Class B
(Telecommunications-Cellular/Wireless) .................... 663 33,124
Telesp Participacoes S.A. (Telephone) ...................... 7,365 95,670
Uniao de Bancos Brasileiros S.A. - GDR (Banks-Regional) .... 5,372 129,264
Usinas Siderurgicas de Minas Gerais S.A.
(Manufacturing-Diversified) ............................... 58,300 197,571
Votorantim Celulose e Papel S.A. (Paper & Forest
Products) ................................................. 11,217 323,110
-----------
4,133,899
-----------
</TABLE>
See Notes to Financial Statements.
F12
<PAGE>
GTG VARIABLE LATIN AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--96.75% SHARES VALUE
- -------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Chile--10.16%
Administradora de Fondos de Peniones Provida S.A. - ADR
(Financial-Diversified) ................................... 10,681 $ 234,982
Banco de A. Edwards - ADR (Banks-Regional) ................. 5,777 83,766
Banco Santiago - ADR (Banks-Regional) ...................... 1,000 19,187
Compania Cervecerias Unidas S.A. - ADR
(Beverages-Alcoholic) ..................................... 7,840 224,420
Enersis S.A. - ADR (Electric Companies) .................... 7,134 163,190
Gener S.A. (Electric Companies) ............................ 2,876 51,049
Quinenco S.A. - ADR (Financial-Diversified) ................ 14,800 138,750
Sociedad Quimica y Minera de Chile S.A. - ADR
(Chemicals) ............................................... 6,800 240,550
Supermercados Unimarc S.A. - ADR (Retail-Food Chains) ...... 18,900 70,875
-----------
1,226,769
-----------
Mexico--37.00%
Alpha S.A. de C.V. (Manufacturing-Diversified) ............. 42,200 175,107
Apasco S.A. de C.V. (Construction-Cement & Aggregates) ..... 14,993 97,888
Carso Global Telecom (Telephone) (a) ....................... 49,900 315,742
Cemex S.A. de C.V. (Construction-Cement & Aggregates)
(a) ....................................................... 26,047 128,924
Cintra S.A. (Airlines) ..................................... 35,600 15,093
Controladora Comercial Mexicana S.A. de C.V.
(Retail-Department Stores) ................................ 269,700 281,277
Corporacion GEO S.A. de C.V. (Construction-Cement &
Aggregates) (a) ........................................... 51,400 217,912
El Puerto de Liverpool S.A. de C.V. (Retail-Department
Stores) ................................................... 4,661 8,448
Fomento Economico Mexicano, S.A. de C.V. - ADR
(Beverages-Non-Alcoholic) ................................. 13,660 544,693
Grupo Carso S.A. de C.V. (Manufacturing-Diversified) (a) ... 63,500 294,112
Grupo Cementos de Chihuahua S.A. de C.V.
(Construction-Cement & Aggregates) ........................ 128,500 105,960
Grupo Financiero Bancomer, S.A. de C.V. (Banks-Regional)
(a) ....................................................... 494,754 178,814
Grupo Financiero Banorte S.A. de C.V.
(Financial-Diversified) (a) ............................... 132,000 193,068
Grupo Industrial Bimbo S.A. de C.V. (Foods) (a) ............ 85,300 189,857
Grupo Industrial Maseca S.A. de C.V. - Class B (Foods) ..... 230,200 136,632
Grupo Industrial Saltillo, S.A. de C.V. (Manufacturing
Diversified) .............................................. 66,600 240,000
Grupo Mexico S.A. (Metals Mining) .......................... 23,100 98,178
Grupo Posadas S.A. - Series A (Lodging-Hotels) (a) ......... 48,400 33,549
Grupo Posadas S.A. - Series L (Lodging-Hotels) (a) ......... 68,100 46,916
Grupo Televisa S.A. - GDR (Entertainment) (a) .............. 11,400 510,863
Industrias Penoles S.A. (Metals Mining) .................... 58,600 169,558
Kimberly-Clark de Mexico, S.A. de C.V. - Class A (Paper &
Forest Products) .......................................... 75,700 311,305
Pepsi-Gemex S.A. - GDR (Beverages-Non-Alcoholic) ........... 19,000 173,375
-----------
4,467,271
-----------
Panama--0.60%
Banco Latinoamericano de Exportaciones S.A. - E Shares
(Banking) ................................................. 2,713 72,573
-----------
Peru--1.59%
Cerveceria Backus & Johnston S.A. (Beverages-Alcoholic) .... 105,239 36,948
Credicorp Ltd. - ADR (Financial-Diversified) ............... 14,140 155,540
-----------
192,488
-----------
</TABLE>
See Notes to Financial Statements.
F13
<PAGE>
GTG VARIABLE LATIN AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--96.75% SHARES VALUE
- -------------------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
U.S.A.--0.38%
Harken Energy Corp. (Oil & Gas Exploration & Production)
(a) ....................................................... 27,890 $ 45,321
-----------
Venezuela--2.89%
C.A. La Electricidad de Caracas (Electric Companies) ....... 16,738 6,552
C.A. La Electricidad de Caracas - ADR (Electric
Companies) ................................................ 9,358 183,156
Compania Anonima Nacional Telefonos de Venezuela - ADR
(Telecommunications-Long Distance) ........................ 4,700 128,075
Corporacion Venezolana de Cementos, S.A.C.A. I
(Construction-Cement & Aggregates) ........................ 45,516 18,754
Corporacion Venezolana de Cementos, S.A.C.A. II
(Construction-Cement & Aggregates) ........................ 30,086 12,396
-----------
348,933
-----------
TOTAL FOREIGN STOCKS & OTHER EQUITY INTERESTS (cost
$13,159,988) ................................................ 11,682,787
-----------
PRINCIPAL
REPURCHASE AGREEMENT--0.97%(b) AMOUNT
- -------------------------------------------------------------- -----------
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$117,000) (c) ............................................. $ 117,000 117,000
-----------
TOTAL INVESTMENTS--97.72% .................................... 11,799,787(d)
Other Assets Less Liabilities--2.28% ......................... 275,359
-----------
NET ASSETS--100.00% .......................................... $12,075,146
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repuchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 6/30/99 with a maturing value of
$117,015. Collateralized by U.S. Government obligations.
(d) Investments have the same cost for federal tax and financial
statement purposes and appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,341,312
Unrealized depreciation: (2,818,513)
-------------
Net unrealized depreciation: $ (1,477,201)
-------------
-------------
</TABLE>
Investment Abbreviations:
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
Pfd.--Preferred
Wts.--Warrants
See Notes to Financial Statements.
F14
<PAGE>
GTG VARIABLE GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--37.84% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Aerospace/Defense--1.54%
Lockheed Martin Corp. ....................................... 20,000 $ 745,000
-----------
Banks (Money Center)--1.36%
First Union Corp. ........................................... 14,000 658,000
-----------
Banks (Regional)--2.25%
First Tennessee National Corp. .............................. 28,400 1,088,075
-----------
Beverages (Alcoholic)--2.91%
Anheuser-Busch Companies, Inc. .............................. 12,582 892,536
Brown-Forman Corp. - Class B ................................ 7,855 512,048
-----------
1,404,584
-----------
Electric Companies--4.93%
Southern Co. ................................................ 40,000 1,060,000
Texas Utilities Co. ......................................... 32,000 1,320,000
-----------
2,380,000
-----------
Electrical Equipment--1.02%
Emerson Electric Co. ........................................ 7,800 490,425
-----------
Financial (Diversified)--1.71%
American General Corp. ...................................... 10,950 825,356
-----------
Foods--2.03%
Bestfoods ................................................... 19,800 980,100
-----------
Health Care (Diversified)--3.63%
American Home Products Corp. ................................ 11,000 632,500
Bristol-Myers Squibb Co. .................................... 15,900 1,119,956
-----------
1,752,456
-----------
Insurance (Property-Casualty)--1.45%
St. Paul Co., Inc. (The) .................................... 22,000 699,875
-----------
Oil (International Integrated)--3.45%
Mobil Corp. ................................................. 16,800 1,663,200
-----------
Personal Care--1.75%
Avon Products, Inc. ......................................... 15,200 843,600
-----------
Publishing--1.98%
The McGraw-Hill Companies, Inc. ............................. 17,760 957,930
-----------
</TABLE>
See Notes to Financial Statements.
F15
<PAGE>
GTG VARIABLE GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--37.84% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Real Estate Investment Trusts--1.67%
Equity Office Properties Trust .............................. 20,000 $ 512,500
Equity Residential Properties Trust ......................... 6,500 292,906
-----------
805,406
-----------
Services (Commercial & Consumer)--2.62%
Dun & Bradstreet Corp. (The) ................................ 18,800 666,225
Service Corp. International ................................. 31,000 596,750
-----------
1,262,975
-----------
Telephone--2.17%
Bell Atlantic Corp. ......................................... 16,000 1,046,000
-----------
Tobacco--1.37%
Philip Morris Companies, Inc. ............................... 16,450 661,085
-----------
TOTAL DOMESTIC COMMON STOCKS (cost $14,143,464) ............... 18,264,067
-----------
FOREIGN STOCKS--26.39%
- ---------------------------------------------------------------
Australia--2.88%
Foster's Brewing Group Ltd. (Beverages-Alcoholic) ........... 230,000 647,393
National Australia Bank Ltd. (Banks-Major Regional) ......... 45,000 743,681
-----------
1,391,074
-----------
Belgium--2.66%
Electrabel S.A. (Electric Companies) ........................ 2,280 735,477
Fortis (Financial-Diversified) .............................. 17,388 179
Fortis A.G. - CVG (Financial-Diversified) (a) ............... 1,932 10,991
Tractebel (Electric Companies) .............................. 3,815 534,716
-----------
1,281,363
-----------
France--2.15%
France Telecom S.A. (Telephone) ............................. 6,600 498,244
Pernod Ricard (Beverages-Non-Alcoholic) ..................... 8,070 540,601
-----------
1,038,845
-----------
Italy--0.18%
Tecnost S.p.A. (Computers-Software & Services) (a) ......... 36,000 88,673
-----------
Netherlands--5.28%
ING Groep N.V. (Insurance Brokers) .......................... 12,938 700,030
Koninklijke KPN N.V. (Telecommunications-Long Distance) ..... 13,005 609,834
Royal Dutch Petroleum Co. (Oil-International Integrated) .... 21,160 1,238,666
-----------
2,548,530
-----------
New Zealand--1.27%
Telecom Corp. of New Zealand Ltd. (Telephone) ............... 143,200 614,120
-----------
</TABLE>
See Notes to Financial Statements.
F16
<PAGE>
GTG VARIABLE GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--26.39% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
-----------
Switzerland--3.38%
Swisscom A.G. (Telephone) ................................... 1,414 $ 531,784
UBS A.G. (Bank-Major Regional) .............................. 3,686 1,099,520
-----------
1,631,304
-----------
United Kingdom--8.59%
Cadbury Schweppes PLC (Foods) ............................... 176,510 1,124,025
CGU PLC (Insurance Brokers) ................................. 42,916 619,979
Diageo PLC (Beverages-Alcoholic) ............................ 69,151 722,120
EMI Group PLC (Leisure Time-Products) ....................... 75,790 608,072
Lloyds TSB Group PLC (Banks-Major Regional) ................. 41,571 563,526
Reckitt & Colman PLC (Household Products/Non-durables) ...... 48,816 508,999
-----------
4,146,721
-----------
TOTAL FOREIGN STOCKS (cost $9,913,185) ........................ 12,740,630
-----------
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & PRINCIPAL
NOTES--13.06%(b) CURRENCY AMOUNT
- --------------------------------------------------------------- -------- ----------
Netherlands--0.38%
Tecnost International N.V. (Financial-Diversified), Floating
Rate Notes, 4.487%,
06/23/04 .................................................. EUR 174,000 $ 182,462
-----------
France--3.10%
Government of France (Sovereign Debt), Bonds,
5.25%, 04/25/08 ........................................... EUR 1,385,000 1,494,321
-----------
Germany--5.60%
Bundesrepublik Deutschland (Sovereign Debt), Bonds,
8.25%, 09/20/01 ........................................... EUR 1,225,000 1,390,402
6.25%, 04/26/06 ........................................... EUR 765,000 879,110
6.25%, 01/04/24 ........................................... EUR 380,000 435,271
IKB Deutshe Industriebank AG (Banks-Major Regional), 6.45%,
03/31/06 ................................................... DEM 1,500 871
-----------
2,705,654
-----------
United Kingdom--3.98%
United Kingdom Treasury (Sovereign Debt)
Notes, 9.00%, 10/13/08 .................................... GBP 230,000 460,621
Bonds, 8.75%, 08/25/17 .................................... GBP 640,000 1,459,789
-----------
1,920,410
-----------
TOTAL NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES
(cost $7,064,714) ............................................ 6,302,847
-----------
PRINCIPAL MARKET
U.S. TREASURY BONDS & NOTES--12.83% AMOUNT VALUE
- --------------------------------------------------------------- ---------- -----------
U.S. Treasury Bonds--6.10%
6.50%, 11/15/26 ........................................... 2,840,000 2,945,705
-----------
</TABLE>
See Notes to Financial Statements.
F17
<PAGE>
GTG VARIABLE GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
U.S. TREASURY BONDS & NOTES--12.83% AMOUNT VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
U.S. Treasury Notes--6.73%
5.625%, 02/28/01 .......................................... $1,900,000 $ 1,904,720
5.50%, 02/15/08 ........................................... 1,380,000 1,343,043
-----------
3,247,763
-----------
TOTAL U.S. TREASURY BONDS & NOTES (cost $6,234,908) ........... 6,193,468
-----------
REPURCHASE AGREEMENT--5.66%(c)
- ---------------------------------------------------------------
State Street Bank & Trust Co., 4.70%, 07/01/99
(cost$2,731,000) (d) ....................................... 2,731,000 2,731,000
-----------
TOTAL INVESTMENTS--95.78% ..................................... 46,232,012(e)
Other Assets Less Liabilities--4.22% .......................... 2,035,862
-----------
NET ASSETS--100.00% ........................................... $48,267,874
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security
(b) Par value and coupon are denominated in currency indicated.
(c) Collateral on repurchase agreements, including the Fund's
pro-rata interest in joint repurchase agreements, is taken into
possession by the Fund upon entering into the repurchase agreement.
The collateral is marked to market daily to ensure it market value
as being 102% of the sales price of the repurchase agreement. The
investments in some repurchase are through participation in joint
account with other mutual funds, private accounts and certain
non-registered investment companies managed by the investment
advisor or its affiliates.
(d) Repurchase agreements entered into 06/30/99 with maturing value of
$2,731,357. Collateralized by U.S. Government obligations.
(e) For federal tax purposes cost is $40,087,270 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 7,859,304
Unrealized depreciation: (1,714,562)
-------------
Net unrealized appreciation: $ 6,144,742
-------------
-------------
</TABLE>
Investment Abbreviations:
EUR--Euro
DEM--German Deutsche Mark
GBP--British Pound Sterling
See Notes to Financial Statements.
F18
<PAGE>
GTG VARIABLE TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--70.96% SHARES VALUE
- ---------------------------------------------- ---------- ----------------------------
<S> <C> <C> <C>
Broadcasting (Television, Radio &
Cable)--3.84%
Broadcast.com, Inc. (a) .................... 7,500 $ 1,001,719
Comcast Corp. - Class A .................... 18,600 714,937
United GlobalCom, Inc. - Class A (a) ....... 16,500 1,115,812
-------------
2,832,468
-------------
Communications Equipment--15.52%
Aware, Inc. (a) ............................ 8,400 387,450
Corning, Inc. .............................. 18,000 1,262,250
Lucent Technologies, Inc. .................. 6,800 458,575
Motorola, Inc. ............................. 32,900 3,117,275
PairGain Technologies, Inc. (a) ............ 36,000 414,000
Proxim, Inc. (a) ........................... 6,000 348,000
QUALCOMM, Inc. (a) ......................... 2,900 416,150
Tellabs, Inc. (a) .......................... 32,000 2,162,000
Uniphase Corp. (a) ......................... 17,300 2,871,800
-------------
11,437,500
-------------
Computers (Hardware)--2.03%
International Business Machines Corp. ...... 11,600 1,499,300
-------------
Computers (Networking)--4.06%
Cisco Systems, Inc. (a) .................... 46,400 2,992,800
-------------
Computers (Peripherals)--3.22%
EMC Corp. .................................. 43,200 2,376,000
-------------
Computers (Software & Services)--14.29%
America Online, Inc. ....................... 24,100 2,663,050
At Home Corp. (a) .......................... 27,257 1,470,174
eBay, Inc. (a) ............................. 10,000 1,510,000
InfoSpace.com, Inc. (a) .................... 26,000 1,222,000
Inktomi Corp. (a) .......................... 12,700 1,658,144
Lycos, Inc. (a) ............................ 6,000 551,250
Novell, Inc. (a) ........................... 25,000 662,500
Yahoo!, Inc. (a) ........................... 4,600 792,350
-------------
10,529,468
-------------
Electronics (Semiconductors)--4.49%
Broadcom Corp. (a) ......................... 13,000 1,879,313
Maker Communications, Inc. (a) ............. 1,700 52,700
PMC-Sierra, Inc. (a) ....................... 16,000 943,000
Texas Instruments, Inc. .................... 3,000 435,000
-------------
3,310,013
-------------
Entertainment--1.03%
Time Warner, Inc. .......................... 10,300 757,050
-------------
</TABLE>
See Notes to Financial Statements.
F19
<PAGE>
GTG VARIABLE TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--70.96% SHARES VALUE
- ---------------------------------------------- ---------- ----------------------------
<S> <C> <C> <C>
Telecommunications (Cellular/Wireless)--4.12%
Level 3 Communications, Inc. (a) ........... 23,000 $ 1,381,438
Metromedia Fiber Network, Inc. - Class
A (a) ..................................... 34,700 1,247,031
Western Wireless Corp. - Class A (a) ....... 15,000 405,000
-------------
3,033,469
-------------
Telecommunications (Long Distance)--9.76%
AT&T Corp. ................................. 15,709 876,759
Global TeleSystems Group, Inc. (a) ......... 34,200 2,770,200
MCI WorldCom, Inc. (a) ..................... 36,036 3,108,105
WinStar Communications, Inc. (a) ........... 9,000 438,750
-------------
7,193,814
-------------
Telephone--8.60%
Bell Atlantic Corp. ........................ 21,000 1,372,875
BellSouth Corp. ............................ 11,000 515,625
NTL, Inc. (a) .............................. 20,732 1,786,839
Qwest Communications International,
Inc. (a) .................................. 28,000 925,750
SBC Communications, Inc. ................... 29,900 1,734,200
-------------
6,335,289
-------------
TOTAL DOMESTIC COMMON STOCKS (cost
$36,935,402) ................................ 52,297,171
-------------
FOREIGN STOCKS & OTHER EQUITY
INTERESTS--23.78%
- ----------------------------------------------
Canada--3.40%
BCE, Inc. (Telephone) ...................... 15,734 766,145
Nortel Networks Corp. (Communications
Equipment) ................................ 8,100 703,181
Rogers Communications, Inc.
(Telecommunications-Cellular/Wireless) (a) .... 17,600 282,484
Shaw Communications, Inc.
(Broadcasting-Television, Radio &
Cable) .................................... 19,100 755,704
-------------
2,507,514
-------------
Finland--4.50%
Nokia Oyj A.B. - Class A - ADR
(Communications Equipment) ................ 36,200 3,314,562
-------------
Germany--2.89%
Mannesmann A.G. (Machinery-Diversified) .... 14,300 2,132,528
-------------
Greece--0.09%
Panafon S.A.
(Telecommunications-Cellular/Wireless) (a) .... 2,700 65,038
-------------
Ireland--0.82%
Esat Telecom Group PLC - ADR
(Telecommunications-Long Distance) (a) .... 13,800 605,475
-------------
Japan--3.19%
Nippon Telegraph & Telephone Corp.
(Telecommunications-Long Distance) ........ 970 1,130,798
NTT Mobile Communications Network, Inc.
(Telecommunications-Cellular/Wireless) .... 900 1,220,339
-------------
2,351,137
-------------
Mexico--0.44%
Telefonos de Mexico S.A. - ADR
(Telephone) ............................... 4,000 323,250
-------------
</TABLE>
See Notes to Financial Statements.
F20
<PAGE>
GTG VARIABLE TELECOMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOREIGN STOCKS & OTHER EQUITY MARKET
INTERESTS--23.78% SHARES VALUE
- ---------------------------------------------- ---------- ----------------------------
<S> <C> <C> <C>
-------------
Netherlands--0.55%
Equant N.V. (Computers-Networking) (a) ..... 2,000 $ 184,271
Equant N.V. - ADR
(Computers-Networking) (a) ................ 2,300 216,488
-------------
400,759
-------------
Spain--1.04%
Telefonica S.A. (Telephone) ................ 15,917 766,171
-------------
United Kingdom--6.86%
British Sky Broadcasting Group PLC
(Broadcasting-Television, Radio &
Cable) .................................... 45,000 417,430
British Telecommunications PLC
(Communications Equipment) ................ 42,700 715,461
Energis PLC (Telephone) (a) ................ 11,010 262,574
Orange PLC (Telephone) (a) ................. 75,400 1,105,298
Vodafone Airtouch PLC
(Telecommunications-Cellular/Wireless) .... 64,800 1,276,763
Vodafone Airtouch PLC - ADR
(Telecommunications-Cellular/Wireless) .... 6,500 1,280,500
-------------
5,058,026
-------------
TOTAL FOREIGN STOCKS & OTHER EQUITY INTERESTS
(cost $9,162,928) ........................... 17,524,460
-------------
PRINCIPAL
REPURCHASE AGREEMENT--5.36% (b) AMOUNT
- ---------------------------------------------- ----------
State Street Bank & Trust Co., 4.70%,
07/01/99 (cost $3,954,000) (c) ............ $3,954,000 3,954,000
-------------
TOTAL INVESTMENTS--100.10% ................... 73,775,631(d)
Liabilities Less Other Assets--(0.10%) ....... (73,239)
-------------
NET ASSETS--100.00% .......................... $ 73,702,392
-------------
-------------
</TABLE>
- --------------
Notes to Schedule of Investments
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase greement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repuchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 6/30/99 with a maturing value of
$3,954,516. Collateralized by U.S. Government obligations.
(d) Investments have the same cost for federal tax and financial
statement purposes and unrealized appreciation (depreciation) is as
follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 24,489,920
Unrealized depreciation: (766,619)
-------------
Net unrealized appreciation: $ 23,723,301
-------------
-------------
</TABLE>
Investment Abbreviations:
ADR--American Depositary Receipt
Rts.--Rights
See Notes to Financial Statements.
F21
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--72.29% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Argentina--1.20%
Banco de Galicia y Buenos Aires S.A. de C.V. - ADR
(Banks-Regional) ........................................... 2,138 $ 43,294
Nortel Inversora S.A. - ADR (Telephone) ..................... 1,900 33,012
Telefonica de Argentina S.A. - ADR (Telephone) .............. 1,263 39,627
----------
115,933
----------
Brazil--9.89%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar -
ADR (Retail-Food Chains) ................................... 2,100 39,244
Companhia de Saneamento Basico do Estado de Sao Paulo (Water
Utilities) ................................................. 467 37,211
Companhia de Tecidos Norte de Minas (Textiles-Specialty) .... 301 25,161
Companhia Energetica de Minas Gerais - ADR (Electric
Companies) ................................................. 7,878 164,408
Companhia Paranaense de Energia - ADR (Electric
Companies) ................................................. 10,100 84,587
Companhia Vale do Rio Doce - Class A Pfd. (Iron & Steel) .... 3,700 72,725
Eletricidade de Sao Paulo S.A. (Electric Companies) ......... 1,205 53,423
Petroleo Brasileiro S.A. - Petrobras - Pfd. (Oil &
Gas-Exploration & Production) .............................. 711 109,999
Telebras - Pfd. ADR (Telephone) ............................. 2,612 235,570
Telecomunicacoes Brasileiras S.A. - ADR (Telephone) ......... 1,812 113
Telecomunicacoes de Sao Paulo S.A. (Telephone) (a) .......... 688 57,139
Telecomunicacoes de Sao Paulo S.A. - Pfd. (Telephone) ....... 19 2,240
Uniao de Bancos Brasileiros S.A. - GDR (Banks-Regional) ..... 3,140 75,568
----------
957,388
----------
Chile--1.40%
Compania Cervecerias Unidas S.A. - ADR
(Beverages-Alcoholic) ...................................... 1,500 42,937
Enersis S.A. - ADR (Electric Companies) ..................... 1,791 40,969
Sociedad Quimica y Minera de Chile S.A. - ADR (Chemicals) ... 1,460 51,647
----------
135,553
----------
China--1.02%
Beijing Yanhua Petrochemical Co. Ltd. (Chemical
Diversified) (a) ........................................... 160,000 36,089
Huaneng Power International, Inc. - ADR (Electric
Companies) ................................................. 3,676 62,952
----------
99,041
----------
Egypt--1.75%
Al-Ahram Beverages Co. S.A.E. - GDR
(Beverages-Alcoholic)(acquired 02/12/97-02/25/99; cost
$76,304) (b) ............................................... 2,850 81,510
Misr International Bank - GDR (Banks-Major Regional) ........ 6,200 61,256
Suez Cement Co. - GDR (Building Materials) .................. 1,863 26,548
----------
169,314
----------
Greece--3.35%
Alpha Credit Bank (Banks-Regional) .......................... 1,162 74,813
Commercial Bank of Greece, S.A. (Banks-Major Regional) ...... 1,000 71,440
Hellenic Telecommunication Organization S.A.
(Telecommunication-Cellular/Wireless) ...................... 2,877 61,591
National Bank of Greece S.A. (Banks-Money Center) ........... 858 56,057
STET Hellas Telecommunications S.A. - ADR
(Telecommunications-Cellular/Wireless) (a) ................. 2,695 60,301
----------
324,202
----------
</TABLE>
See Notes to Financial Statements.
F22
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--72.29% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Hong Kong--1.79%
China Everbright Ltd. (Land Development) (a) ................ 174,000 $ 173,807
----------
Hungary--3.31%
Magyar Tavkozlesi Rt - ADR (Telecommunications-Long
Distance) .................................................. 4,440 122,100
MOL Magyar Olaj-es Gazipari Rt. - GDR (Oil-Domestic
Integrated) ................................................ 8,280 198,720
----------
320,820
----------
India--4.54%
Hindalco Inds Ltd. (Aluminum) ............................... 400 5,795
Hindustan Lever Ltd. (Personal Care) ........................ 2,600 142,646
ITC Ltd. (Tobacco) .......................................... 4,600 116,166
Larsen & Toubro Ltd. (Manufacturing-Diversified) (a) ........ 19,000 125,484
Pentafour Software & Exports Ltd. (Computer Software and
Services) .................................................. 900 23,651
Pentafour Software & Exports Ltd. - GDR (Computer Software
and Services) (a) .......................................... 1,000 26,292
----------
440,034
----------
Indonesia--2.08%
PT Lippo Bank Tbk (Banks-Major Regional) (a) ................ 990,000 53,610
PT Telekomunikasi Indonesia - ADR
(Insurance-Property-Casualty) .............................. 11,880 147,758
----------
201,368
----------
Israel--3.33%
Bank Leumi Le-Isreal (Banks-Money Center) (a) ............... 37,226 70,343
Bezeq Israeli Telecommunications Corp. Ltd.
(Telecommunication-Cellular/Wireless) (a) .................. 9,300 37,446
Blue Square Chain Investments and Properties Ltd.
(Retail-Food Chains) (a) ................................... 2,773 45,408
Blue Square-Israel Ltd. - ADR (Retail-Food Chains) .......... 3,900 61,913
Discount Investment Corp. (Investment Banking/Brokerage) .... 1,890 73,834
Teva Pharmaceutical Industries Ltd. (Health
Care-Drugs-Generic & Other) ................................ 700 33,274
----------
322,218
----------
Malaysia--3.15%(c)
Berjaya Sports Toto Berhad (Leisure Time-Products) .......... 51,000 100,403
Commerce Asset-Holdings Berhad (Finance-Asset
Management) (a) ............................................ 16,000 33,647
Public Finance Berhad (Banks-Regional) ...................... 56,000 50,112
Telekom Malaysia Berhad (Telephone) ......................... 38,000 120,716
----------
304,878
----------
Mexico--10.31%
Aracruz Celulose S.A. - Class B Pfd. (Homebuilding) (a) ..... 7,700 30,931
Cemex S.A. de CV (Construction-Cement & Aggregates) ......... 23,247 114,449
Cifra S.A. de C.V. (Retail-General Merchandise) (b) ......... 42,695 85,073
Corporacion GEO S.A. de C.V. (Construction-Cement &
Aggregates) (a) ............................................ 7,500 31,797
Fomento Economico Mexicano, S.A. de C.V.-ADR
(Beverages-Non-Alcoholic) .................................. 6,089 242,799
Grupo Carso S.A. de C.V. (Manufacturing-Diversified) (a) .... 22,800 105,603
Grupo Financiero Bancomer, S.A. de C.V.
(Banks-Regional) (a) ....................................... 282,886 102,241
Telefonos de Mexico S.A. - ADR (Telephone) .................. 3,118 251,973
</TABLE>
See Notes to Financial Statements.
F23
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--72.29% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Mexico (Continued)
Tubos de Acero de Mexico S.A. - ADR (Oil & Gas-Drilling &
Equipment) ................................................. 3,100 $ 33,713
----------
998,579
----------
Peru--0.52%
Credicorp Ltd. - ADR (Financial-Diversified) ................ 4,580 50,380
----------
Philippines--2.84%
Far East Bank & Trust Company (Banks-Regional) (a) .......... 25,300 35,240
Manila Electric Co. (Electric Power) ........................ 14,710 52,964
Philippine Long Distance Telephone Co. - ADR (Telephone) .... 6,200 186,775
----------
274,979
----------
Poland--0.92%
Browary Zywiec S.A. (Beverages-Alcoholic) ................... 103 11,883
Kredyt Bank PBI S.A. - GDR (Banks-Regional) (a) ............. 1,634 39,216
Telekomunikacja Polska S.A. - GDR (Telephone) (a) ........... 5,291 37,725
----------
88,824
----------
Singapore--0.32%
Asia Pulp & Paper Co. Ltd. - ADR (Paper & Forest
Products) (a) .............................................. 3,175 30,559
----------
South Africa--7.15%
Anglo American Platinum Corp. Ltd. (Metals Mining) .......... 4,000 93,338
Anglo American PLC (Metals Mining) (a) ...................... 1,200 56,082
Barlow Ltd. (Manufacturing-Diversified) ..................... 15,000 86,510
FirstRand Ltd. (Banks-Regional) ............................. 80,500 92,053
Liberty International PLC (Insurance Brokers) ............... 960 6,780
Liberty Life Association of Africa Ltd. (Insurance
Brokers) ................................................... 2,060 26,390
Rembrandt Group Ltd. (Investment Management) ................ 18,217 151,859
Sanlam Ltd. (Insurance-Life/Health) ......................... 63,820 75,624
Sappi Ltd. (Paper & Forest Products) ........................ 7,500 54,939
South African Breweries PLC (Beverages-Alcoholic) ........... 5,622 48,822
----------
692,397
----------
South Korea--5.51%
Housing & Commercial Bank, Korea (Banks-Major
Regional) (a) .............................................. 1,400 44,147
Korea Electric Power Corp. - ADR (Electric Companies) ....... 2,176 44,608
Korea Telecom Corp. - ADR (Telephone) (a) ................... 4,630 185,200
Pohang Iron & Steel Co. Ltd. - ADR (Iron & Steel) ........... 1,915 64,392
Samsung Electronics - GDR N.V.
(Electronics-ComponentDistributors) (Acquired 05/04/99; Cost
$74,663) (a) (b) ........................................... 3,300 89,925
Samsung Electronics - GDR (Electronics-Component
Distributors) (Acquired 06/11/99; Cost $14,071) (a) (b) .... 440 23,672
Shinhan Bank - GDR (Banks-Major Regional) (a) ............... 3,658 81,391
----------
533,335
----------
</TABLE>
See Notes to Financial Statements.
F24
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--72.29% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Taiwan--3.99%
China Steel Corp. (Metals Mining) ........................... 8,500 $ 130,050
GT Taiwan Fund (Investment Management) (a) .................. 19,291 255,995
----------
386,045
----------
Thailand--0.82%
Siam Commercial Bank PLC, Conv. Pfd. (Banks-Regional) (a) ... 56,124 79,905
----------
Turkey--3.10%
Haci Omer Sabanci Holding A.S. (Investment Management) ...... 1,335,497 29,740
Turkiye Is Bankasi (Isbank) (Banks-Money Center) ............ 4,640,020 82,443
Yapi ve Kredi Bankasi A.S. (Banks-Money Center) ............. 12,993,530 187,772
----------
299,955
----------
TOTAL FOREIGN STOCKS (cost $6,520,890) ........................ 6,999,514
----------
WARRANTS--9.40%
- ---------------------------------------------------------------
Singapore--0.90%
Singapore Airlines Ltd. - Wts., expiring 04/09/02
(Airlines) (a) ............................................. 10 87,125
----------
South Korea--6.21%
Merrill Lynch International & Co. KOSPI 200 - Wts. , expiring
09/09/99 (Investment Banking/Brokerage) (a) ................ 49,997 453,623
Merrill Lynch International & Co. SK Telecom Co. Ltd.,
expiring 02/10/00 (Telecommunications -
Cellular/Wireless) (a) ..................................... 110 147,300
----------
600,923
----------
Taiwan--2.29%
ABN Taiwan Index NT MY9, expiring 04/28/00 (Investment
Banking/Brokerage) (a) ..................................... 19 222,129
----------
TOTAL WARRANTS (cost $470,453) ................................ 910,177
----------
</TABLE>
See Notes to Financial Statements.
F25
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
REPURCHASE AGREEMENT--6.78% (D) AMOUNT VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$656,000) (e) .............................................. $ 656,000 $ 656,000
----------
TOTAL INVESTMENTS--88.47% ..................................... 8,565,691(f)
Other Assets Less Liabilities--11.53% ......................... 1,116,216
----------
NET ASSETS--100.00% ........................................... $9,681,907
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments.
(a) Non-income producing security.
(b) Restricted security. May be resold to qualified institutional
buyers in accordance with the provisions of Rule 144A under the
Securities Act of 1933, as amended. The valuation of these
securities has been determined in accordance with procedures
established by the Board of Trustees. The aggregate market value of
these securities at 06/30/99 was $195,107 which represented 2.02%
of the Fund's net assets.
(c) Security fair valued in accordance with procedures established by
the Board of Trustees.
(d) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreement. The collateral is marked to
market daily to ensure its market value as being 102% of the sales
price of the repurchase agreement. The investments in some
repurchase agreements are through participation in joint accounts
with other mutual funds, private accounts and certain
non-registered investment companies managed by the investment
manager or its affiliates.
(e) Repurchase agreement entered into 06/30/99 with a maturing value
$656,086. Collaterized by U.S. Treasury obligations.
(f) For federal income tax purposes, cost is $7,686,171 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,271,502
Unrealized depreciation: (391,982)
-------------
Net unrealized appreciation: $ 879,520
-------------
-------------
</TABLE>
Investment Abbreviations:
ADR--American Depositary Receipt
Conv.--Convertible
GDR--Global Depositary Receipt
KOSPI--Korea Stock Price Index 200
Pfd.--Preferred
Wts.--Warrants
See Notes to Financial Statements.
F26
<PAGE>
GTG VARIABLE INFRASTRUCTURE FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--49.90% SHARES VALUE
- ------------------------------------------------------------- ------------- ----------
<S> <C> <C> <C>
Aerospace/Defense--3.28%
General Dynamics Corp. .................................... 1,300 $ 89,050
Gulfstream Aerospace Corp. (a) ............................ 1,342 90,669
----------
179,719
----------
Airlines--0.91%
COMAIR Holdings, Inc. ..................................... 2,400 49,950
----------
Communications Equipment--4.45%
Juniper Networks, Inc. (a) ................................ 100 14,900
L-3 Communications Holdings, Inc. (a) ..................... 1,800 86,962
Lucent Technologies, Inc. ................................. 1,000 67,437
Tellabs, Inc. (a) ......................................... 1,104 74,589
----------
243,888
----------
Computers (Networking)--2.11%
Cisco Systems, Inc. (a) ................................... 1,788 115,326
----------
Construction (Cement & Aggregates)--2.87%
Martin Marietta Materials, Inc. ........................... 919 54,221
Southdown, Inc. ........................................... 1,600 102,800
----------
157,021
----------
Electric Companies--9.98%
Dominion Resources, Inc. .................................. 1,900 82,294
FPL Group, Inc. ........................................... 1,600 87,400
GPU, Inc. ................................................. 2,100 88,594
Montana Power Co. ......................................... 1,000 70,500
Pinnacle West Capital Corp. ............................... 1,646 66,251
Public Service Enterprise Group, Inc. ..................... 1,900 77,662
Texas Utilities Co. ....................................... 1,800 74,250
----------
546,951
----------
Homebuilding--3.80%
Centex Corp. .............................................. 2,900 108,931
Kaufman and Broad Home Corp. .............................. 4,000 99,500
----------
208,431
----------
Machinery (Diversified)--1.89%
Ingersoll-Rand Co. ........................................ 1,600 103,400
----------
Manufacturing (Diversified)--3.40%
United Technologies Corp. ................................. 2,600 186,388
----------
</TABLE>
See Notes to Financial Statements.
F27
<PAGE>
GTG VARIABLE INFRASTRUCTURE FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--49.90% SHARES VALUE
- ------------------------------------------------------------- ------------- ----------
<S> <C> <C> <C>
Natural Gas--4.57%
El Paso Energy Corp. ...................................... 1,700 $ 59,819
Enron Corp. ............................................... 2,332 190,641
----------
250,460
----------
Power Producers (Independent)--1.58%
AES Corp. (a) ............................................. 1,485 86,316
----------
Telecommunications (Cellular/Wireless)--0.41%
Phone.com, Inc. (a) ....................................... 400 22,400
----------
Telecommunications (Long Distance)--4.65%
AT&T Corp. ................................................ 1,473 82,212
MCI WorldCom, Inc. (a) .................................... 2,000 172,500
----------
254,712
----------
Telephone--5.56%
Bell Atlantic Corp. ....................................... 2,000 130,750
SBC Communications, Inc. .................................. 3,000 174,000
----------
304,750
----------
Water Utilities--0.44%
Azurix Corp. (a) .......................................... 1,200 24,000
----------
TOTAL DOMESTIC COMMON STOCKS (cost $2,072,204) .............. 2,733,712
----------
MARKET
FOREIGN STOCKS--40.67% SHARES VALUE
- ------------------------------------------------------------- ------------- ----------
Canada--1.59%
Canadian National Railway Co. (Railroads) ................. 1,300 87,255
----------
Finland--3.56%
Nokia Oyj A.B. - Class A - ADR (Communications
Equipment) ............................................... 2,000 183,125
Sonera Group Oyj (Telecommunications-Cellular/Wireless) ... 550 12,017
----------
195,142
----------
France--4.98%
Lafarge S.A. (Engineering & Construction) ................. 750 71,266
Suez Lyonnaise des Eaux (Manufacturing-Diversified) ....... 350 63,088
Vivendi (Consumer Services) ............................... 1,710 138,431
----------
272,785
----------
Germany--4.40%
Mannesmann A.G. (Machinery-Diversified) ................... 1,300 193,866
Viag A.G. (Manufacturing-Diversified) ..................... 100 47,201
----------
241,067
----------
</TABLE>
See Notes to Financial Statements.
F28
<PAGE>
GTG VARIABLE INFRASTRUCTURE FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--40.67% SHARES VALUE
- ------------------------------------------------------------- ------------- ----------
<S> <C> <C> <C>
Ireland--1.94%
CRH PLC (Construction-Cement & Aggregates) ................ 4,000 $ 70,857
Esat Telecom Group PLC - ADR (Telecommunications-Long
Distance) (a) ............................................ 800 35,100
----------
105,957
----------
Italy--1.81%
Aeroporti di Roma S.p.A. (Aerospace/Defense) .............. 5,100 31,484
Telecom Italia S.p.A. (Telephone) ......................... 12,500 67,762
----------
99,246
----------
Japan--1.79%
Bridgestone Corp. (Auto Parts & Equipment) ................ 100 30,260
NTT Mobile Communications Network, Inc.
(Telecommunications-Cellular/Wireless) ................... 5 67,797
----------
98,057
----------
Netherlands--1.85%
Equant N.V. - ADR (Computers-Networking) (a) .............. 880 82,830
Libertel N.V.(Telecommunications-Cellular/Wireless) (a) ... 950 18,602
----------
101,432
----------
Portugal--1.32%
Brisa-Auto Estradas de Portugal, S.A. (Engineering &
Construction) ............................................ 900 37,102
Electricidade de Portugal, S.A. (Electric Companies) ...... 1,950 35,089
----------
72,191
----------
South Korea--2.97%
Korea Electric Power Corp. - ADR (Electric Companies) ..... 3,000 61,500
Pohang Iron & Steel Co. Ltd. - ADR (Iron & Steel) ......... 3,000 100,875
----------
162,375
----------
Spain--3.11%
Endesa S.A. - ADR (Electric Companies) .................... 3,900 82,875
Grupo Ferrovial, S.A. (Construction-Cement &
Aggregates) (a) .......................................... 2,000 48,438
Union Electrica Fenosa, S.A. (Electric Companies) ......... 3,000 39,204
----------
170,517
----------
Switzerland--1.03%
Swisscom A.G. (Telephone) ................................. 150 56,413
----------
United Kingdom--10.32%
BG PLC (Oil & Gas-Exploration & Production) ............... 10,300 62,912
General Electric Co. PLC (Manufacturing-Diversified) ...... 6,240 63,638
Hanson PLC - ADR (Manufacturing-Diversified) .............. 1,500 66,562
National Grid Group PLC (Electric Companies) .............. 9,290 64,650
Racal Electronic PLC
(Telecommunications-Cellular/Wireless) ................... 13,500 82,458
Railtrack Group PLC (Shipping) ............................ 2,200 44,977
Stagecoach Holdings PLC (Shipping) ........................ 13,800 49,432
</TABLE>
See Notes to Financial Statements.
F29
<PAGE>
GTG VARIABLE INFRASTRUCTURE FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--40.67% SHARES VALUE
- ------------------------------------------------------------- ------------- ----------
<S> <C> <C> <C>
United Kingdom (Continued)
Vodafone Airtouch PLC
(Telecommunications-Cellular/Wireless) ................... 3,140 $ 61,868
Vodafone Airtouch PLC - ADR
(Telecommunications-Cellular/Wireless) ................... 350 68,950
----------
565,447
----------
TOTAL FOREIGN STOCKS (cost $1,606,926) ...................... 2,227,884
----------
PRINCIPAL
U.S. GOVERNMENT AGENCY SECURITIES--5.18% AMOUNT
- ------------------------------------------------------------- -------------
Federal Home Loan Mortgage Corp., Discount Notes, 4.60%,
07/01/99 (b) ............................................... $ 284,000 284,000
----------
TOTAL INVESTMENTS--95.75% ................................... 5,245,596(c)
Other Assets Less Liabilities--4.25% ........................ 233,002
----------
NET ASSETS--100.00% ......................................... $5,478,598
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments.
(a) Non-income producing security.
(b) Rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(c) Investments have the same cost for federal tax and financial
statement purposes and unrealized appreciation (depreciation) is as
follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,373,822
Unrealized depreciation: (91,357)
-------------
Net unrealized appreciation: $ 1,282,465
-------------
-------------
</TABLE>
Investment Abbreviation:
ADR--American Depositary Receipt
See Notes to Financial Statements.
F30
<PAGE>
GTG VARIABLE NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--48.89% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Aluminum--2.72%
Alcoa Inc. .................................................. 1,200 $ 74,250
Reynolds Metals Co. ......................................... 2,200 129,800
----------
204,050
----------
Building Materials--0.86%
USG Corp. ................................................... 1,150 64,400
----------
Chemicals--2.54%
E. I. du Pont de Nemours & Co. .............................. 1,200 81,975
Solutia, Inc. ............................................... 5,100 108,694
----------
190,669
----------
Chemicals (Specialty)--0.98%
W.R. Grace & Co. (a) ........................................ 4,000 73,500
----------
Construction (Cement & Aggregates)--1.81%
Martin Marietta Materials, Inc. ............................. 1,100 64,900
Southdown, Inc. ............................................. 1,103 70,868
----------
135,768
----------
Containers & Packaging (Paper)--2.48%
Gaylord Container Corp. (a) ................................. 8,800 69,850
Smurfit-Stone Container Corp. (a) ........................... 2,000 41,125
Temple-Inland, Inc. ......................................... 1,100 75,075
----------
186,050
----------
Electric Companies--2.43%
Montana Power Co. ........................................... 1,700 119,850
PacifiCorp .................................................. 3,400 62,475
----------
182,325
----------
Gold & Precious Metals Mining--2.57%
Stillwater Mining Co. (a) ................................... 5,900 192,856
----------
Iron & Steel--0.39%
AK Steel Holding Corp. ...................................... 1,300 29,250
----------
Manufacturing (Specialized)--3.13%
Sealed Air Corp. (a) ........................................ 1,200 77,850
USEC Inc. ................................................... 10,550 156,931
----------
234,781
----------
Metals Mining--1.31%
Freeport-McMoRan Copper & Gold, Inc. (a) .................... 5,500 98,656
----------
</TABLE>
See Notes to Financial Statements.
F31
<PAGE>
GTG VARIABLE NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--48.89% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Natural Gas--6.65%
Coastal Corp. (The) ......................................... 1,300 $ 52,000
Columbia Energy Group ....................................... 1,200 75,225
Consolidated Natural Gas Co. ................................ 800 48,600
Enron Corp. ................................................. 900 73,575
Questar Corp. ............................................... 6,800 130,050
Williams Companies, Inc. (The) .............................. 2,800 119,175
----------
498,625
----------
Oil (Domestic Integrated)--3.54%
Amerada Hess Corp. .......................................... 1,600 95,200
Atlantic Richfield Co. ...................................... 1,100 91,919
USX-Marathon Group .......................................... 2,400 78,150
----------
265,269
----------
Oil (International Integrated)--4.47%
Chevron Corp. ............................................... 1,400 133,263
Exxon Corp. ................................................. 700 53,988
Mobil Corp. ................................................. 800 79,200
Texaco, Inc. ................................................ 1,100 68,750
----------
335,201
----------
Oil & Gas (Drilling & Equipment)--3.87%
Baker Hughes, Inc. .......................................... 1,800 60,300
BJ Services Co. (a) ......................................... 2,900 85,369
Cooper Cameron Corp. (a) .................................... 1,500 55,594
Schlumberger Ltd. ........................................... 1,000 63,687
Veritas DGC, Inc. (a) ....................................... 1,400 25,637
----------
290,587
----------
Oil & Gas (Exploration & Production)--6.04%
Barrett Resources Corp. (a) ................................. 2,800 107,450
Devon Energy Corp. .......................................... 3,200 114,400
JP Morgan Index Funding Co. COMPS (a) ....................... 9,200 170,200
Triton Energy Ltd. (a) ...................................... 5,700 61,275
----------
453,325
----------
Paper & Forest Products--3.10%
Georgia Pacific Corp. ....................................... 1,600 75,800
International Paper Co. ..................................... 1,600 80,800
Weyerhaeuser Co. ............................................ 1,100 75,625
----------
232,225
----------
TOTAL DOMESTIC COMMON STOCKS (cost $3,562,178) ................ 3,667,537
----------
</TABLE>
See Notes to Financial Statements.
F32
<PAGE>
GTG VARIABLE NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--35.99% SHARES VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
Belgium--0.71%
Solvay S.A. (Chemicals-Diversified) ......................... 800 $ 53,055
----------
Canada--16.17%
Alliance Forest Products Inc. (Paper & Forest
Products) (a) .............................................. 5,600 68,979
Anderson Exploration Ltd. (Oil-Domestic Integrated) (a) ..... 5,700 74,852
Barrick Gold Corp. (Gold & Precious Metals Mining) .......... 3,200 61,676
Berkley Petroleum Corp. (Oil & Gas-Exploration &
Production) (a) ............................................ 11,800 98,901
Cameco Corp. (Metals Mining) ................................ 2,900 60,814
Cominco Ltd. (Metals Mining) ................................ 14,900 251,788
EdperBrascan Corp. - Class A (Conglomerates) ................ 4,000 60,943
Inco Ltd. (Metals Mining) (a) ............................... 14,000 249,881
IPSCO, Inc. (Iron & Steel) .................................. 3,800 80,591
Nexfor Inc. (Paper & Forest Products) ....................... 13,100 80,903
Placer Dome, Inc. - ADR (Gold & Precious Metals Mining) ..... 4,200 49,613
Suncor Energy, Inc. (Oil-International Integrated) .......... 1,800 73,722
----------
1,212,663
----------
France--7.05%
Air Liquide (Chemicals-Specialty) ........................... 500 78,583
Elf Aquitaine S.A. - ADR (Oil-International Integrated) ..... 2,000 147,125
Lafarge S.A. (Engineering & Construction) ................... 950 90,270
Total S.A. - ADR (Oil-International Integrated) (a) ......... 3,300 212,644
----------
528,622
----------
Germany--1.71%
BASF A.G. (Chemicals-Diversified) ........................... 2,914 128,686
----------
Ireland--0.97%
Jefferson Smurfit Group PLC - ADR (Containers &
Packaging-Paper) ........................................... 3,100 73,044
----------
Italy--2.24%
ENI S.p.A - ADR (Oil-International Integrated) .............. 2,800 168,000
----------
Netherlands--1.36%
Royal Dutch Petroleum Co. - New York Shares - ADR
(Oil-International Integrated) ............................. 1,700 102,425
----------
South Korea--2.33%
Pohang Iron & Steel Co. Ltd. - ADR (Iron & Steel) ........... 5,200 174,850
----------
United Kingdom--3.45%
British Steel PLC - ADR (Iron & Steel) ...................... 2,800 72,975
Rio Tinto PLC (Metals Mining) ............................... 11,070 185,571
----------
258,546
----------
TOTAL FOREIGN STOCKS (cost $2,537,918) ........................ 2,699,891
----------
TOTAL INVESTMENTS EXCLUDING REPURCHASE AGREEMENT (cost
$6,100,096) .................................................. 6,367,428
----------
</TABLE>
See Notes to Financial Statements.
F33
<PAGE>
GTG VARIABLE NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
REPURCHASE AGREEMENT--15.88% (B) AMOUNT VALUE
- --------------------------------------------------------------- ----------- ----------
<S> <C> <C> <C>
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$1,191,000) (c) ............................................ $ 1,191,000 $1,191,000
----------
TOTAL INVESTMENTS--100.76% .................................... 7,558,428(d)
----------
Liabilities Less Other Assets--(0.76%)............ ............ (57,254)
----------
NET ASSETS--100.00% ........................................... $7,501,174
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund'spro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repuchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 6/30/99 with a maturing value of
$1,191,155. Collateralized by U.S. Government obligations.
(d) For federal tax purposes cost is $7,291,096 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 569,660
Unrealized depreciation: (302,328)
-------------
Net unrealized appreciation: $ 267,332
-------------
-------------
</TABLE>
Investment Abbreviation:
ADR--American Depositary Receipt
COMPS--Commodity Index Preferred Securities
See Notes to Financial Statements.
F34
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Airlines--0.28%
Southwest Airlines Co. ...................................... 3,500 $ 108,937
-----------
Auto Parts & Equipment--0.79%
Danaher Corp. ............................................... 3,400 197,625
SPX Corp. (a) ............................................... 1,300 108,550
-----------
306,175
-----------
Banks (Major Regional)--0.50%
Northern Trust Corp. ........................................ 2,000 194,000
-----------
Banks (Regional)--3.14%
AmSouth Bancorporation ...................................... 3,150 73,041
Bank United Corp. - Class A ................................. 2,500 100,469
Compass Bancshares, Inc. .................................... 6,000 163,500
First Tennessee National Corp. .............................. 3,700 141,756
Firstar Corp. ............................................... 6,500 182,000
Golden State Bancorp, Inc. (a) .............................. 4,200 92,400
Mercantile Bankshares Corp. ................................. 1,400 49,525
North Fork Bancorporation, Inc. ............................. 6,900 147,056
Old Kent Financial Corp. .................................... 2,205 92,334
TCF Financial Corp. ......................................... 2,200 61,325
Zions Bancorporation ........................................ 1,800 114,300
-----------
1,217,706
-----------
Biotechnology--0.93%
Biogen, Inc. (a) ............................................ 5,400 347,287
Celera Genomics (a) ......................................... 900 14,569
-----------
361,856
-----------
Broadcasting (Television, Radio & Cable)--3.57%
Adelphia Communications Corp. (a) ........................... 2,500 159,062
AT&T Corp. - Liberty Media Group - Class A (a) .............. 8,200 301,350
Chancellor Media Corp. - Class A (a) ........................ 3,900 214,987
Cox Communications, Inc. - Class A (a) ...................... 1,200 44,175
Hispanic Broadcasting Corp. (a) ............................. 2,500 189,687
TCA Cable TV, Inc. .......................................... 1,500 83,250
Univision Communications, Inc. (a) .......................... 4,000 264,000
USA Networks, Inc. (a) ...................................... 3,200 128,400
-----------
1,384,911
-----------
Building Materials--0.24%
Masco Corp. ................................................. 3,200 92,400
-----------
Communications Equipment--7.60%
ADC Telecommunications, Inc. (a) ............................ 4,500 205,031
Comverse Technology, Inc. (a) ............................... 4,050 305,775
Corning, Inc. ............................................... 8,800 617,100
</TABLE>
See Notes to Financial Statements.
F35
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Communications Equipment (Continued)
General Instrument Corp. (a) ................................ 5,000 $ 212,500
Lucent Technologies, Inc. ................................... 10,560 712,140
Motorola, Inc. .............................................. 2,000 189,500
QUALCOMM, Inc. (a) .......................................... 1,400 200,900
Scientific-Atlanta, Inc. .................................... 5,300 190,800
Uniphase Corp. (a) .......................................... 1,900 315,400
-----------
2,949,146
-----------
Computers (Hardware)--0.69%
Apple Computer, Inc. (a) .................................... 2,500 115,781
Comdisco, Inc. .............................................. 5,900 151,187
-----------
266,968
-----------
Computers (Networking)--0.31%
VeriSign, Inc. (a) .......................................... 1,400 120,750
-----------
Computers (Peripherals)--2.81%
Adaptec, Inc. (a) ........................................... 5,500 194,219
EMC Corp. (a) ............................................... 9,600 528,000
Lexmark International Group, Inc. (a) ....................... 5,600 369,950
-----------
1,092,169
-----------
Computers (Software & Services)--9.87%
America Online, Inc. ........................................ 1,900 209,950
At Home Corp. (a) ........................................... 2,200 118,662
BMC Software, Inc. (a) ...................................... 10,600 572,400
Citrix Systems, Inc. (a) .................................... 8,200 463,300
Compuware Corp. (a) ......................................... 13,700 435,831
Electronic Arts, Inc. (a) ................................... 2,700 146,475
Electronics for Imaging, Inc. (a) ........................... 4,800 246,600
Intuit, Inc. (a) ............................................ 3,000 270,375
Lycos, Inc. (a) ............................................. 2,500 229,687
Novell, Inc. (a) ............................................ 5,200 137,800
RealNetworks, Inc. (a) ...................................... 1,500 103,312
Siebel Systems, Inc. (a) .................................... 1,600 106,200
Sterling Software, Inc. (a) ................................. 3,400 90,737
Synopsys, Inc. (a) .......................................... 4,100 226,269
Verio, Inc. (a) ............................................. 2,000 139,000
Veritas Software Corp. (a) .................................. 3,500 332,281
-----------
3,828,879
-----------
Consumer (Jewelry, Novelties & Gifts)--0.08%
Action Performance Companies, Inc. (a) ...................... 900 29,700
-----------
Consumer Finance--2.48%
Capital One Financial Corp. ................................. 6,600 367,537
Countrywide Credit Industries, Inc. ......................... 1,700 72,675
</TABLE>
See Notes to Financial Statements.
F36
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Consumer Finance (Continued)
Providian Financial Corp. ................................... 4,250 $ 397,375
SLM Holding Corp. ........................................... 2,700 123,694
-----------
961,281
-----------
Distributors (Food & Health)--0.19%
US Foodservice, Inc. (a) .................................... 1,700 72,462
-----------
Electrical Equipment--3.94%
American Power Conversion Corp. (a) ......................... 11,000 221,375
Conexant Systems, Inc. (a) .................................. 3,000 174,187
Sanmina Corp. (a) ........................................... 2,500 189,687
Solectron Corp. (a) ......................................... 8,200 546,837
Symbol Technologies, Inc. ................................... 7,200 265,500
Vishay Intertechnology, Inc. (a) ............................ 6,250 131,250
-----------
1,528,836
-----------
Electronics (Instrumentation)--0.89%
PE Corp-PE Biosystems Group ................................. 2,000 229,500
Waters Corp. (a) ............................................ 2,200 116,875
-----------
346,375
-----------
Electronics (Semiconductors)--7.16%
Altera Corp. (a) ............................................ 7,200 265,050
Analog Devices, Inc. (a) .................................... 7,700 386,444
Atmel Corp. (a) ............................................. 2,300 60,231
Cypress Semiconductor Corp. (a) ............................. 4,800 79,200
Linear Technology Corp. ..................................... 5,500 369,875
LSI Logic Corp. (a) ......................................... 5,400 249,075
Maxim Integrated Products, Inc. (a) ......................... 4,100 272,650
Microchip Technology, Inc. (a) .............................. 3,700 175,287
National Semiconductor Corp. (a) ............................ 5,500 139,219
PMC-Sierra, Inc. (a) ........................................ 5,600 330,050
Vitesse Semiconductor Corp. (a) ............................. 2,000 134,875
Xilinx, Inc. (a) ............................................ 5,500 314,875
-----------
2,776,831
-----------
Entertainment--0.46%
SFX Entertainment, Inc. - Class A (a) ....................... 2,800 179,200
-----------
Equipment (Semiconductor)--1.72%
Applied Materials, Inc. (a) ................................. 2,000 147,750
KLA-Tencor Corp. (a) ........................................ 3,100 201,112
Novellus Systems, Inc. (a) .................................. 1,200 81,900
Teradyne, Inc. (a) .......................................... 3,300 236,775
-----------
667,537
-----------
</TABLE>
See Notes to Financial Statements.
F37
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Financial (Diversified)--0.71%
FINOVA Group, Inc. .......................................... 2,900 $ 152,612
MGIC Investment Corp. ....................................... 2,500 121,562
-----------
274,174
-----------
Foods--0.24%
Keebler Foods Co. (a) ....................................... 3,100 94,162
-----------
Footwear--0.55%
Nike, Inc.--Class B ......................................... 3,400 215,262
-----------
Gaming, Lottery & Parimutuel Companies--0.48%
Mandalay Resort Group (a) ................................... 5,600 118,300
MGM Grand, Inc. (a) ......................................... 1,400 68,600
-----------
186,900
-----------
Health Care (Drugs-Generic & Other)--1.78%
Alpharma, Inc. - Class A .................................... 2,400 85,350
Forest Laboratories, Inc. (a) ............................... 1,200 55,500
Jones Pharma, Inc. .......................................... 6,500 255,937
Medicis Pharmaceutical Corp. - Class A (a) .................. 3,400 86,275
MedImmune, Inc. (a) ......................................... 1,500 101,625
Mylan Laboratories, Inc. .................................... 1,300 34,450
Watson Pharmaceuticals, Inc. (a) ............................ 2,000 70,125
-----------
689,262
-----------
Health Care (Hospital Management)--0.45%
Universal Health Services, Inc. - Class B (a) ............... 3,700 176,675
-----------
Health Care (Managed Care)--0.79%
Express Scripts, Inc. - Class A (a) ......................... 3,800 228,713
Trigon Healthcare, Inc. (a) ................................. 2,100 76,388
-----------
305,101
-----------
Health Care (Medical Products & Supplies)--2.37%
Bausch & Lomb, Inc. ......................................... 2,700 206,550
Biomet, Inc. ................................................ 5,500 218,625
Guidant Corp. ............................................... 3,900 200,606
Henry Schein, Inc. (a) ...................................... 1,900 60,206
Stryker Corp. ............................................... 2,600 156,325
Sybron International Corp. (a) .............................. 2,800 77,175
-----------
919,487
-----------
Homebuilding--0.13%
Clayton Homes, Inc. ......................................... 4,300 49,181
-----------
</TABLE>
See Notes to Financial Statements.
F38
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Household Furnishing & Appliances--0.74%
Leggett & Platt, Inc. ....................................... 5,500 $ 152,969
Maytag Corp. ................................................ 1,900 132,406
-----------
285,375
-----------
Household Products (Non-Durables)--0.25%
Dial Corp. (The) ............................................ 2,600 96,688
-----------
Insurance (Life/Health)--0.86%
AFLAC, Inc. ................................................. 2,500 119,688
Provident Companies, Inc. ................................... 4,100 164,000
Torchmark Corp. ............................................. 1,500 51,188
-----------
334,876
-----------
Investment Banking/Brokerage--2.22%
Lehman Brothers Holdings, Inc. .............................. 1,500 93,375
Schwab (Charles) Corp. ...................................... 5,950 653,756
TD Waterhouse Group, Inc. (a) ............................... 4,500 112,781
-----------
859,912
-----------
Investment Management--1.17%
Federated Investors, Inc. - Class B ......................... 5,700 102,244
Franklin Resources, Inc. .................................... 3,100 125,938
T. Rowe Price Associates, Inc. .............................. 5,900 226,413
-----------
454,595
-----------
Leisure Time (Products)--1.68%
Callaway Golf Co. ........................................... 5,400 78,975
Harley-Davidson, Inc. ....................................... 6,500 353,438
Hasbro, Inc. ................................................ 2,700 75,431
Mattel, Inc. ................................................ 5,480 144,878
-----------
652,722
-----------
Manufacturing (Diversified)--0.16%
Pentair, Inc. ............................................... 1,400 64,050
-----------
Natural Gas--0.34%
El Paso Energy Corp. ........................................ 3,700 130,194
-----------
Oil & Gas (Drilling & Equipment)--3.30%
Baker Hughes, Inc. .......................................... 5,500 184,250
BJ Services Co. (a) ......................................... 5,200 153,075
Cooper Cameron Corp. (a) .................................... 6,400 237,200
Diamond Offshore Drilling, Inc. ............................. 2,200 62,425
Global Industries Ltd. (a) .................................. 7,300 93,531
Rowan Companies, Inc. (a) ................................... 6,300 116,156
Smith International, Inc. (a) ............................... 4,000 173,750
Transocean Offshore, Inc. ................................... 2,600 68,250
</TABLE>
See Notes to Financial Statements.
F39
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Oil & Gas (Drilling & Equipment) (Continued)
Varco International, Inc. (a) ............................... 7,500 $ 82,031
Weatherford International, Inc. (a) ......................... 3,000 109,875
-----------
1,280,543
-----------
Oil & Gas (Exploration & Production)--0.45%
Apache Corp. ................................................ 3,600 140,400
Santa Fe Snyder Corp. (a) ................................... 4,300 32,788
-----------
173,188
-----------
Publishing--0.73%
Reader's Digest Association, Inc. - Class A ................. 3,100 123,225
The McGraw-Hill Companies, Inc. ............................. 3,000 161,813
-----------
285,038
-----------
Railroads--0.90%
Kansas City Southern Industries, Inc. ....................... 5,500 350,969
-----------
Restaurants--1.64%
Brinker International, Inc. (a) ............................. 5,500 149,531
Outback Steakhouse, Inc. (a) ................................ 5,200 204,425
Papa John's International, Inc. (a) ......................... 1,700 75,969
Starbucks Corp. (a) ......................................... 5,500 206,594
-----------
636,519
-----------
Retail (Building Supplies)--0.51%
Lowe's Companies, Inc. ...................................... 3,500 198,406
-----------
Retail (Computers & Electronics)--2.43%
Best Buy Co., Inc. (a) ...................................... 5,900 398,250
CDW Computer Centers, Inc. (a) .............................. 5,600 246,400
Circuit City Stores-Circuit City Group ...................... 3,200 297,600
-----------
942,250
-----------
Retail (Department Stores)--0.88%
Federated Department Stores, Inc. (a) ....................... 1,500 79,406
Kohl's Corp. (a) ............................................ 3,400 262,438
-----------
341,844
-----------
Retail (Discounters)--2.08%
Consolidated Stores Corp. (a) ............................... 5,300 143,100
Dollar General Corp. ........................................ 4,375 126,875
Dollar Tree Stores, Inc. (a) ................................ 5,000 220,000
Family Dollar Stores, Inc. .................................. 7,800 187,200
Ross Stores, Inc. ........................................... 2,600 130,975
-----------
808,150
-----------
</TABLE>
See Notes to Financial Statements.
F40
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Retail (Food Chains)--0.39%
Kroger Co. (a) .............................................. 5,400 $ 150,863
-----------
Retail (Specialty)--2.81%
Bed Bath & Beyond, Inc. (a) ................................. 7,500 288,750
eToys, Inc. (a) ............................................. 1,700 69,275
Linens 'n Things, Inc. (a) .................................. 3,500 153,125
Payless ShoeSource, Inc. (a) ................................ 1,300 69,550
Staples, Inc. (a) ........................................... 16,500 510,469
-----------
1,091,169
-----------
Retail (Specialty-Apparel)--2.29%
Abercrombie & Fitch Co. - Class A (a) ....................... 2,500 120,000
Gap, Inc. (The) ............................................. 2,100 105,788
Intimate Brands, Inc. ....................................... 3,465 164,154
Men's Wearhouse, Inc. (The) (a) ............................. 6,300 160,650
Talbots, Inc. ............................................... 2,100 80,063
TJX Companies, Inc. ......................................... 7,800 259,838
-----------
890,493
-----------
Savings & Loan Companies--0.99%
Astoria Financial Corp. ..................................... 2,700 118,631
Dime Bancorp, Inc. .......................................... 7,000 140,875
GreenPoint Financial Corp. .................................. 3,800 124,688
-----------
384,194
-----------
Services (Advertising/Marketing)--2.56%
Interpublic Group of Companies, Inc. ........................ 1,400 121,275
Lamar Advertising Co. (a) ................................... 5,700 233,344
Omnicom Group, Inc. ......................................... 6,800 544,000
TMP Worldwide, Inc. (a) ..................................... 1,500 95,250
-----------
993,869
-----------
Services (Commercial & Consumer)--1.94%
Apollo Group, Inc. - Class A (a) ............................ 3,500 92,969
ChoicePoint, Inc. (a) ....................................... 1,700 114,113
Cintas Corp. ................................................ 4,100 275,469
Convergys Corp. (a) ......................................... 2,000 38,500
Galileo International, Inc. ................................. 2,000 106,875
Viad Corp. .................................................. 4,000 123,750
-----------
751,676
-----------
Services (Computer Systems)--0.79%
Ciber, Inc. (a) ............................................. 2,500 47,813
Keane, Inc. (a) ............................................. 1,100 24,888
Policy Management Systems Corp. (a) ......................... 1,500 45,000
</TABLE>
See Notes to Financial Statements.
F41
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
DOMESTIC COMMON STOCKS--95.92% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Services (Computer Systems) (Continued)
SunGard Data Systems, Inc. (a) .............................. 5,500 $ 189,750
-----------
307,451
-----------
Services (Data Processing)--4.61%
Affiliated Computer Services, Inc. - Class A (a) ............ 2,800 141,750
Ceridian Corp. (a) .......................................... 5,800 189,588
Concord EFS, Inc. (a) ....................................... 12,400 524,675
CSG Systems International, Inc. (a) ......................... 5,500 144,031
DST Systems, Inc. (a) ....................................... 1,600 100,600
Equifax, Inc. ............................................... 2,400 85,650
Fiserv, Inc. (a) ............................................ 10,350 324,084
National Data Corp. ......................................... 2,600 111,150
Paychex, Inc. ............................................... 5,250 167,344
-----------
1,788,872
-----------
Specialty Printing--0.27%
Valassis Communications, Inc. (a) ........................... 2,850 104,381
-----------
Telecommunications (Cellular/Wireless)--0.76%
Crown Castle International Corp. (a) ........................ 7,000 145,688
Metromedia Fiber Network, Inc. - Class A (a) ................ 4,200 150,938
-----------
296,626
-----------
Telecommunications (Long Distance)--0.86%
Global TeleSystems Group, Inc. (a) .......................... 4,100 332,100
-----------
Telephone--1.07%
CenturyTel, Inc. ............................................ 6,150 244,463
Cincinnati Bell, Inc. ....................................... 2,000 49,875
NTL, Inc. (a) ............................................... 1,400 120,663
-----------
415,001
-----------
Textiles (Apparel)--0.92%
Jones Apparel Group, Inc. (a) ............................... 6,300 216,169
Tommy Hilfiger Corp. (a) .................................... 1,900 139,650
-----------
355,819
-----------
Textiles (Home Furnishings)--0.17%
Shaw Industries, Inc. (a) ................................... 4,100 67,650
-----------
TOTAL DOMESTIC COMMON STOCKS (cost $32,739,719) ............... 37,221,806
-----------
MARKET
FOREIGN STOCKS--1.60% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
Finland--0.90%
Nokia Oyj A.B. - Class A - ADR (Communications Equipment) ... 3,800 347,938
-----------
</TABLE>
See Notes to Financial Statements.
F42
<PAGE>
GTG VARIABLE AMERICA FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS--1.60% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
France--0.06%
Coflexip S.A. - ADR (Manufacturing-Specialized) ............. 500 $ 21,750
-----------
Israel--0.28%
Check Point Software Technologies Ltd. (Computers-Software &
Services) (a) .............................................. 2,000 107,250
-----------
Netherlands--0.27%
ASM Lithography Holding N.V.
(Electronics-Semiconductors) (a) ........................... 1,800 106,875
-----------
United Kingdom--0.09%
Stolt Comex Seaway, S.A. (Oil & Gas-Exploration &
Production) (a) ............................................ 2,200 23,925
Stolt Comex Seaway, S.A. - ADR (Oil & Gas-Exploration &
Production) (a) ............................................ 1,100 11,825
-----------
35,750
-----------
TOTAL FOREIGN STOCKS (Cost $531,936) .......................... 619,563
-----------
PRINCIPAL MARKET
REPURCHASE AGREEMENT--3.72%(B) AMOUNT VALUE
- --------------------------------------------------------------- ---------- -----------
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$1,444,000) (c) ............................................ $1,444,000 1,444,000
-----------
TOTAL INVESTMENTS--101.24% .................................... 39,285,369(d)
Liabilities Less Other Assets--(1.24%) ........................ (482,620)
-----------
NET ASSETS--100.00% ........................................... $38,802,749
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase greement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repuchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts, and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 6/30/99 with a maturing value of
$1,444,189. Collateralized by U.S. Government obligations.
(d) Investments have the same cost for federal tax and financial
statement purposes and unrealized appreciation (depreciation) is as
follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 5,610,748
Unrealized depreciation: (1,041,034)
-------------
Net unrealized appreciation: $ 4,569,714
-------------
-------------
</TABLE>
Investment Abbreviation:
ADR--American Depositary Receipt
See Notes to Financial Statements.
F43
<PAGE>
GTG VARIABLE NEW PACIFIC FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS AND OTHER EQUITY INTERESTS--46.88% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Australia--7.04%
AMP Ltd. (Insurance-Life/Health) ............................ 16,400 $ 179,054
Brambles Industries Ltd. (Air Freight) ...................... 6,900 181,538
Broken Hill Proprietary Co. Ltd. (Iron & Steel) ............. 24,000 277,641
Foster's Brewing Group Ltd. (Beverages-Alcoholic) ........... 62,500 175,922
Lend Lease Corp. Ltd. (Real Estate) ......................... 8,100 111,069
National Australia Bank Ltd. (Banks-Major Regional) ......... 26,000 429,683
TABCORP Holdings Ltd. (Leisure Time Products) ............... 14,900 100,269
Telstra Corp. Ltd. (Telephone) .............................. 50,000 286,135
WMC Ltd. (Metals-Mining) .................................... 48,000 205,930
-----------
1,947,241
-----------
China--1.08%
Angang New Steel Co. Ltd. (Metal Fabricators) (a) ........... 2,000,000 299,023
-----------
Hong Kong--14.47%
Bank of East Asia, Ltd. (Banks-Major Regional) (a) .......... 130,000 328,410
Cheung Kong Holdings Ltd. (Land Development) ................ 90,000 800,402
China Everbright Ltd. (Land Development) (a) ................ 350,000 349,612
Citic Pacific Ltd. (Banking) (a) ............................ 70,000 223,301
Cosco Pacific Ltd. (Financial-Diversified) .................. 400,000 329,956
Hang Seng Bank Ltd. (Banks-Major Regional) .................. 16,000 178,898
Hong Kong Telecommunications Ltd. (Telephone) ............... 190,000 491,004
HSBC Holdings PLC (Banks-Major Regional) .................... 9,868 359,942
Hutchison Whampoa Ltd. (Retail-Food Chains) ................. 80,000 724,357
Shanghai Industrial Holdings Ltd.
(Manufacturing-Diversified) ................................ 90,000 214,601
-----------
4,000,483
-----------
Indonesia--2.20%
PT Indofood Sukses Makmur Tbk (Foods) (a) ................... 250,000 339,350
PT Lippo Bank Tbk (Banks-Major Regional) (a) ................ 2,100,000 113,718
PT Telekomunikasi Indonesia (Telephone) (b) ................. 270,000 155,957
-----------
609,025
-----------
Malaysia--0.66%(b)
Berjaya Sports Toto Berhad (Leisure Time-Products) .......... 50,000 98,434
Telekom Malaysia Berhad (Telephone) ......................... 26,750 84,978
-----------
183,412
-----------
New Zealand--0.44%
Telecom Corp. of New Zealand Ltd. (Telephone) ............... 28,100 120,508
-----------
Philippines--2.20%
Benpres Holdings Corp. (Manufacturing-Diversified) (a) ...... 800,000 189,225
Equitable Banking Corp. (Banks-Major Regional) .............. 60,000 156,110
Philippine Long Distance Telephone Co. (Telephone) .......... 8,590 261,876
-----------
607,211
-----------
</TABLE>
See Notes to Financial Statements.
F44
<PAGE>
GTG VARIABLE NEW PACIFIC FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS AND OTHER EQUITY INTERESTS--46.88% SHARES VALUE
- --------------------------------------------------------------- ---------- -----------
<S> <C> <C> <C>
Singapore--6.95%
City Developments Ltd. (Land Development) ................... 20,000 $ 128,085
DBS Land Ltd. (Land Development) ............................ 150,000 299,647
Development Bank of Singapore Ltd. (Banks-Major Regional) ... 32,800 400,846
Overseas-Chinese Banking Corp., Ltd.(Banks-Major
Regional) .................................................. 45,000 375,441
Singapore Press Holdings Ltd. (Publishing-Newspapers) ....... 27,562 469,623
Singapore Technologies Engineering Ltd. (Engineering &
Construction) .............................................. 220,000 249,471
-----------
1,923,113
-----------
South Korea--11.47%
Kookmin Bank (Banks-Major Regional) (a) ..................... 22,000 446,652
Korea Electric Power Corp. (Electric Companies) ............. 17,000 706,436
L.G. Chemical Ltd. (Chemicals-Specialty) .................... 11,000 299,352
LG Information & Communication (Communications Equipment) ... 6,130 453,329
Merrill Lynch International & Co. (Investment
Banking/Brokerage) KOSPI 200-Wts., expiring 12/09/99 (a) ... 39,506 357,897
Samsung Display Devices Co. (Electronics-Component
Distributors) .............................................. 5,000 272,138
Samsung Electronics (Electronics-Component Distributors) .... 5,809 637,359
-----------
3,173,163
-----------
Thailand--0.37%
PTT Exploration and Production Public Co. Ltd. (Oil &
Gas-Exploration & Production) .............................. 13,200 100,946
-----------
TOTAL FOREIGN STOCKS AND OTHER EQUITY INTERESTS (cost
$10,038,992) ................................................. 12,964,125
-----------
TOTAL INVESTMENTS EXCLUDING REPURCHASE AGREEMENT (cost
$10,038,992) ................................................. 12,964,125
-----------
PRINCIPAL
REPURCHASE AGREEMENT--35.19%(c) AMOUNT
- --------------------------------------------------------------- ----------
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$9,730,000) (d) ............................................ $9,730,000 9,730,000
-----------
TOTAL INVESTMENTS--82.07% ..................................... 22,694,125(e)
Other Assets Less Liabilities--17.93% ......................... 4,958,996
-----------
NET ASSETS--100.00% ........................................... $27,653,121
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Securities fair valued in accordance with procedures established by
the Board of Trustees.
(c) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repurchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(d) Repurchase agreement entered into 06/30/99 with a maturing value
$9,731,270. Collaterized by U.S. Treasury Securities.
(e) For federal tax purposes cost is $19,788,819 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 3,059,301
Unrealized depreciation: (153,995)
-------------
Net unrealized appreciation: $ 2,905,306
-------------
-------------
</TABLE>
Investment Abbreviation:
KOSPI--Korea Stock Price Index 200
Wts.--Warrants
See Notes to Financial Statements.
F45
<PAGE>
GTG VARIABLE EUROPE FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--59.82% SHARES VALUE
- ------------------------------------------------------------ ------------- -----------
<S> <C> <C> <C>
Austria--0.05%
Primamedic Ltd. (Health Care-Medical Products &
Supplies) (a) ........................................... 51,350 $ 14,818
-----------
Belgium--0.64%
Mobistar S.A.
(Telecommunications-Cellular/Wireless) (a) .............. 3,717 183,876
-----------
Finland--5.09%
Helsingin Puhelin Oyj (Helsinki Telephone Corporation -
HPY) (Telecommunications-Cellular/Wireless) ............. 4,000 189,630
Nokia Oyj A.B. - Class A (Communications Equipment) ...... 8,350 731,468
Raisio Group PLC (Foods) ................................. 20,000 185,508
Tietoenator Oyj Abp (Computers-Software & Services) ...... 8,714 362,818
-----------
1,469,424
-----------
France--8.94%
Altran Technologies, S.A. (Services-Commercial &
Consumer) ............................................... 1,465 386,516
Axa (Insurance-Multi-Line) ............................... 1,145 139,598
Carrefour S.A. (Retail-Food Chains) ...................... 2,600 381,837
Dassault Systemes S.A. (Computers-Software & Services) ... 7,109 234,815
Elf Aquitaine S.A. (Oil & Gas-Refining & Marketing) ...... 3,000 439,963
Genset - ADR (Biotechnology) (a) ......................... 6,912 108,000
Pinault-Printemps-Redoute S.A. (Retail-General
Merchandise) ............................................ 900 154,343
PSA Peugeot Citreon (Automobiles) ........................ 1,500 236,523
Sanofi-Synthelabo S.A. (Health Care-Drugs-Generic &
Other) .................................................. 6,000 254,455
Sidel S.A. (Machinery-Diversified) ....................... 2,000 243,015
-----------
2,579,065
-----------
Germany--8.89%
DaimlerChrsyler A.G. (Automobiles) ....................... 3,000 259,711
EM.TV & Merchandising A.G. (Broadcasting-Television, Radio
& Cable) (a) ............................................ 488 686,503
Intershop Communications A.G. (Computers-Software &
Services) (a) ........................................... 1,500 360,968
Mannesmann A.G. (Machinery-Diversified) .................. 4,000 596,511
MobilCom A.G. (Telecommunications-Cellular/Wireless) ..... 7,014 627,445
Sixt A.G. (Financial-Diversified) ........................ 465 32,492
-----------
2,563,630
-----------
Greece--0.87%
STET Hellas Telecommunications S.A. - ADR
(Telecommunications-Cellular/Wireless) (a) .............. 11,160 249,705
-----------
Ireland--0.70%
Esat Telecom Group PLC - ADR (Telecommunications-Long
Distance) (a) ........................................... 4,600 201,825
-----------
Italy--2.13%
Autogrill S.p.A. (Restaurants) ........................... 32,500 334,610
Mediolanum S.p.A. (Insurance-Life/Health) ................ 25,000 191,949
Tecnost S.p.A. (Computers-Software & Services) (a) ....... 35,372 87,126
-----------
613,685
-----------
</TABLE>
See Notes to Financial Statements.
F46
<PAGE>
GTG VARIABLE EUROPE FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--59.82% SHARES VALUE
- ------------------------------------------------------------ ------------- -----------
<S> <C> <C> <C>
Netherlands--5.22%
Equant N.V. (Computers-Networking) (a) ................... 4,970 $ 457,914
ING Groep N.V. (Insurance Brokers) ....................... 6,452 349,095
Koninklijke Numico N.V. (Foods) .......................... 6,900 244,268
TNT Post Group N.V. (Air Freight) ........................ 12,326 294,079
Wolters Kluwer N.V. (Specialty Printing) ................. 4,000 159,125
-----------
1,504,481
-----------
Norway--0.52%
Tomra Systems A.S.A. (Manufacturing-Specialized) ......... 4,000 150,240
-----------
Portugal--0.94%
BPI-SGPS, S.A. (Banks-Regional) .......................... 11,870 250,948
BPI-SGPS, S.A., Certificates (Banks-Regional) (a) ........ 1,035 21,707
-----------
272,655
-----------
Spain--6.32%
Banco Santander Central Hispano S.A.
(Banks-Regional) (a) .................................... 45,000 468,408
Tabacalera S.A. - Class A (Tobacco) ...................... 11,284 227,934
Telefonica Publicidad e Informacion S.A.
(Telephone) (a) ......................................... 25,000 498,553
Telefonica S.A. (Telephone) .............................. 8,772 422,241
TelePizza, S.A. (Restaurants) (a) ........................ 40,000 206,944
-----------
1,824,080
-----------
Sweden--4.98%
Assa Abloy A.B. - Class B (Metal Fabricators) ............ 39,720 430,506
Assa Abloy A.B., Rts. expiring 07/02/99 (Metal
Fabricators) (a) ........................................ 39,720 8,423
Securitas A.B. - Class B (Services-Commercial &
Consumer) (a) ........................................... 23,700 354,596
Skandia Forsakrings A.B. (Insurance Brokers) ............. 12,742 238,680
Telefonaktiebolaget LM Ericsson - Class B (Communications
Equipment) .............................................. 12,575 403,698
-----------
1,435,903
-----------
Switzerland--2.17%
Roche Holding A.G. (Health Care-Drugs-Generic & Other) ... 30 308,197
Swisscom A.G. (Telephone) ................................ 402 151,186
UBS A.G. (Bank-Major Regional) ........................... 555 165,555
-----------
624,938
-----------
United Kingdom--12.36%
Abbey National PLC (Savings & Loan Companies) ............ 9,000 168,958
BP Amoco PLC (Oil & Gas-Refining & Marketing) ............ 25,304 453,497
COLT Telecom Group PLC (Communications Equipment) (a) .... 10,000 209,799
Compass Group PLC (Services-Commercial & Consumer) ....... 13,000 128,890
Corporate Services Group PLC (Services-Commercial &
Consumer) ............................................... 112,009 148,306
Diageo PLC (Beverages-Alcoholic) ......................... 23,424 244,609
Energis PLC (Telephone) (a) .............................. 8,790 209,630
Glaxo Wellcome PLC (Health Care-Drugs-Generic & Other) ... 6,533 181,547
Lloyds TSB Group PLC (Banks-Major Regional) .............. 16,378 222,016
Misys PLC (Services-Commercial & Consumer) ............... 30,470 260,794
Orange PLC (Telephone) (a) ............................... 23,423 343,361
</TABLE>
See Notes to Financial Statements.
F47
<PAGE>
GTG VARIABLE EUROPE FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--59.82% SHARES VALUE
- ------------------------------------------------------------ ------------- -----------
<S> <C> <C> <C>
United Kingdom (Continued)
SmithKline Beecham PLC (Health Care-Diversified) ......... 20,047 $ 260,534
Unilever PLC (Foods) ..................................... 26,786 238,337
Vodafone Airtouch PLC
(Telecommunications-Cellular/Wireless) .................. 25,048 493,524
-----------
3,563,802
-----------
TOTAL FOREIGN STOCKS & OTHER EQUITY INTERESTS (cost
$16,545,839) .............................................. 17,252,127
-----------
FOREIGN NON-CONVERTIBLE PREFERRED STOCKS--3.07%
- ------------------------------------------------------------
Germany--3.07%
Porsche A.G. - Pfd. (Automobiles) ........................ 171 401,810
SAP A.G. - Pfd. (Computers-Software & Services) .......... 1,210 483,223
-----------
885,033
-----------
TOTAL FOREIGN NON-CONVERTIBLE PREFERRED STOCKS (cost
$977,102) ................................................. 885,033
-----------
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & PRINCIPAL
NOTES--0.62% (B) CURRENCY AMOUNT
- ------------------------------------------------------------ -------- -------------
Netherlands--0.62%
Tecnost International N.V. (Financial-Diversified),
Floating Rate Notes, 4.487%, 06/23/04 (cost $111,177)
........................................................ EUR 170,964 179,277
-----------
TOTAL INVESTMENTS EXCLUDING REPURCHASE AGREEMENT (cost
$17,634,118) .............................................. 18,316,437
-----------
REPURCHASE AGREEMENT--13.66% (C)
- ------------------------------------------------------------
State Street Bank & Trust Co., 4.70%, 07/01/99 (cost
$3,940,000) (d) ........................................ $ 3,940,000 3,940,000
-----------
TOTAL INVESTMENTS--77.17% .................................. 22,256,437(e)
Other Assets Less Liabilities--22.83% ...................... 6,586,161
-----------
NET ASSETS--100.00% ........................................ $28,842,598
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Par value and coupon are denominated in currency indicated.
(c) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value is
at least 102% of the sales price of the repurchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(d) Repurchase agreement entered into 06/30/99 with a maturing value
$3,940,514. Collaterized by U.S. Treasury securities.
(e) For federal tax purposes cost is $21,646,060 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 2,311,309
Unrealized depreciation: (1,700,932)
-------------
Net unrealized appreciation: $ 610,377
-------------
-------------
</TABLE>
Investment Abbreviations:
ADR--American Depositary Receipt
Pfd.--Preferred
Rts.--Rights
See Notes to Financial Statements.
F48
<PAGE>
GTG VARIABLE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
COMMERCIAL PAPER--44.72% (A) MATURITY (000) VALUE
- ----------------------------------------------------------------- --------- ----------- -----------
<S> <C> <C> <C> <C>
Asset-Backed Securities - Multi-Purpose--3.95%
Quincy Capital Corp., 4.87% ................................... 08/05/99 $ 1,000 $ 995,265
-----------
Automobile--8.70%
Ford Motor Credit Co., 4.83% .................................. 07/26/99 1,200 1,195,975
General Motors, 4.83% ......................................... 07/22/99 1,000 997,183
-----------
2,193,158
-----------
Finance (Business Credit)--3.94%
National Rural Utilities Cooperative Finance Corp., 4.79% ..... 08/13/99 1,000 994,279
-----------
Finance (Consumer Credit)--3.92%
International Lease Finance Corp., 4.78% ...................... 09/20/99 1,000 989,245
-----------
Finance (Multiple Industry)--3.95%
General Electric Capital Corp., 4.77% ......................... 08/03/99 1,000 995,628
-----------
Financial (Diversified)--4.51%
Caterpillar Financial Services, 5.25% ......................... 09/07/99 1,150 1,138,596
-----------
Food (Processing)--7.89%
Campbell Soup Co., 4.80% ...................................... 07/14/99 1,000 998,267
Heinz (H. J.) Co., 5.12% ...................................... 08/23/99 1,000 992,462
-----------
1,990,729
-----------
Health Care (Diversified)--3.91%
Johnson & Johnson, 4.86% ...................................... 10/05/99 1,000 987,040
-----------
Telephone--3.95%
Bell South Telecommunications, 5.13% .......................... 08/03/99 1,000 995,296
-----------
TOTAL COMMERCIAL PAPER (amortized cost $11,279,238) ............. 11,279,236
Government & Government Agency Obligations--34.18%
Federal Home Loan Mortgage Corp. Discount Notes, 5.00% (cost
$8,621,410) .................................................. 07/09/99 8,631 8,621,410
-----------
TOTAL INVESTMENTS EXCLUDING REPURCHASE AGREEMENTS (cost
$19,900,646) ................................................... 19,900,646
Repurchase Agreements--21.21% (b)
Bank of America, 4.70% (c) ................................... 07/01/99 2,600 2,600,000
State Street Bank & Trust Co., 4.70% (d) ..................... 07/01/99 2,750 2,750,000
-----------
TOTAL REPURCHASE AGREEMENTS (cost $5,350,000) ................... 5,350,000
-----------
TOTAL INVESTMENTS--100.12% ...................................... 25,250,646(e)
Other Liabilities Less Assets--(0.12%) .......................... (29,200)
-----------
NET ASSETS--100.00% ............................................. $25,221,446
-----------
-----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Some commercial paper is traded on a discount basis. In such cases,
the interest rate shown represents the rate of discount paid or
received at the time of purchase by the Fund.
(b) Collateral on repurchase agreements, including the Fund's pro-rata
interest in joint repurchase agreements, is taken into possession
by the Fund upon entering into the repurchase agreement. The
collateral is marked to market daily to ensure its market value as
being 102% of the sales price of the repurchase agreement. The
investments in some repurchase agreements are through participation
in joint accounts with other mutual funds, private accounts and
certain non-registered investment companies managed by the
investment manager or its affiliates.
(c) Repurchase agreement entered into 06/30/99 with a maturing value of
$2,600,339. Collateralized by U.S. Treasury obligations.
(d) Repurchase agreement entered into 06/30/99 with a maturing value of
$2,750,359. Collateralized by U.S. Government obligations.
(e) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
F49
<PAGE>
GTG VARIABLE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--77.65% SHARES VALUE
- ------------------------------------------------------------------ -------- ----------
<S> <C> <C> <C>
Australia--5.27%
Australia & New Zealand Banking Group Ltd. (Banks-Major
Regional) ..................................................... 11,700 $ 85,920
Foster's Brewing Group Ltd. (Beverages-Alcoholic) .............. 22,000 61,925
Futuris Corp. Ltd. (Automobiles) ............................... 71,500 103,983
Woolworths Ltd. (Retail-Specialty) ............................. 23,100 76,733
----------
328,561
----------
Brazil--0.67%
Telebras Pfd. - ADR (Telephone) (a) ............................ 460 41,486
Telecomunicacoes Brasileiras S.A. - ADR (Telephone) (a) ....... 460 29
----------
41,515
----------
Canada--0.67%
Royal Bank of Canada (Banks-Major Regional) .................... 950 41,907
----------
Finland--2.07%
Nokia Oyj A.B. - Class A (Communications Equipment) ............ 1,473 129,036
----------
France--4.24%
AXA S.A. (Insurance-Multi-Line) ................................ 566 69,007
Sanofi-Synthelabo S.A. (Health Care-Drugs-Generic & Other) ..... 1,168 49,534
Sidel S.A. (Machinery-Diversified) ............................. 556 67,558
Vivendi (Consumer Services) .................................... 966 78,201
----------
264,300
----------
Germany--5.67%
EM.TV & Merchandising A.G. (Broadcasting-Television, Radio &
Cable) (a) .................................................... 80 112,542
Fresenius A.G. - Pfd. (Machinery-Diversified) .................. 224 39,592
Mannesmann A.G. (Machinery-Diversified) ........................ 794 118,408
SAP A.G. - Pfd. (Computers-Software & Services) ................ 208 83,066
----------
353,608
----------
India--1.04%
State Bank of India (Banks-Major Regional) ..................... 5,350 65,136
----------
Ireland--0.58%
Bank of Ireland (Banks-Major Regional) ......................... 2,148 36,244
----------
Italy--2.12%
Autogrill S.p.A. (Restaurants) ................................. 5,175 53,280
Monte dei Paschi di Siena S.p.A. (Banks-Regional) (a) .......... 1,549 6,865
Olivetti S.p.A. (Telecommunications-Cellular/Wireless) (a) ..... 22,509 54,051
Olivetti S.p.A., expiring 07/09/99
(Telecommunications-Cellular/Wireless) (a) .................... 22,509 3,027
Tecnost S.p.A. (Computers-Software & Services) (a) ............. 6,111 15,052
----------
132,275
----------
Japan--13.78%
Canon, Inc. (Office Equipment & Supplies) ...................... 2,000 57,544
Fast Retailing Co. Ltd. (Retail-Specialty Apparel) ............. 44 4,729
</TABLE>
See Notes to Financial Statements.
F50
<PAGE>
GTG VARIABLE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--77.65% SHARES VALUE
- ------------------------------------------------------------------ -------- ----------
<S> <C> <C> <C>
(Continued)
Fujitsu Ltd. (Electrical Equipment) ............................ 7,000 $ 140,926
Ito-Yokado Co., Ltd. (Retail-Department Stores) ................ 1,000 66,970
Matsushita-Kotobuki Electronics Industries Ltd.
(Electronics-Component Distributors) .......................... 1,000 28,276
Nichiei Co., Ltd. (Banks-Money Center) ......................... 800 70,112
Nippon Telegraph & Telephone Corp. (Telephone) ................. 120 139,893
Sony Corp. (Electronics-Component Distributors) ................ 2,000 215,792
Toshiba Corp. (Electrical Equipment) ........................... 19,000 135,568
----------
859,810
----------
Netherlands--8.49%
ASM Lithography Holding N.V. (Machinery-Diversified) (a) ....... 676 39,084
Benckiser N.V. (Household Products/Non-durables) ............... 1,592 84,907
Equant N.V. (Computers-Networking) (a) ......................... 673 62,007
ING Groep N.V. (Insurance Brokers) ............................. 1,117 60,437
Koninklijke Ahold N.V. (Retail-Food Chains) .................... 2,610 89,842
Koninklijke KPN N.V. (Telecommunications-Long Distance) ........ 1,008 47,267
TNT Post Group N.V. (Air Freight) .............................. 2,708 64,609
Wolters Kluwer N.V. (Specialty Printing) ....................... 2,052 81,631
----------
529,784
----------
New Zealand--1.26%
Telecom Corp. of New Zealand Ltd. (Telephone) .................. 18,380 78,823
----------
Norway--0.90%
Tomra Systems A.S.A. (Manufacturing-Specialized) ............... 1,495 56,152
----------
Portugal--0.80%
BPI-SGPS, S.A. (Banks-Regional) ................................ 1,684 35,319
BPI-SGPS, S.A., expiring 06/04/99 (Banks-Regional) (a) ......... 2,040 14,717
----------
50,036
----------
Singapore--0.57%
United Overseas Bank Ltd. (Banks-Major Regional) ............... 5,100 35,658
----------
Spain--3.89%
Banco Santander Central Hispano S.A. (Banks-Regional) (a) ...... 3,686 38,368
Tabacalera S.A. (Tobacco) ...................................... 3,041 61,427
Telefonica Publicidad e Informacion S.A. (Telephone) (a) ....... 4,305 85,851
Telefonica S.A. (Telephone) .................................... 2,334 57,292
----------
242,938
----------
Sweden--2.06%
Securitas A.B. - Class B (Services-Commercial & Consumer)
(a) ........................................................... 3,841 57,469
Skandia Forsakrings A.B. (Insurance Brokers) ................... 3,231 60,522
Telefonaktiebolaget LM Ericsson - Class B (Communications
Equipment) .................................................... 325 10,434
----------
128,425
----------
</TABLE>
See Notes to Financial Statements.
F51
<PAGE>
GTG VARIABLE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
FOREIGN STOCKS & OTHER EQUITY INTERESTS--77.65% SHARES VALUE
- ------------------------------------------------------------------ -------- ----------
<S> <C> <C> <C>
Switzerland--6.36%
Geberit International A.G. (Manufacturing-Specialized) (a) ..... 111 $ 25,261
Julius Baer Holding A.G. (Banks-Major Regional) ................ 15 42,719
Novartis A.G. (Health Care-Diversified) ........................ 46 67,130
Roche Holding A.G. (Health Care-Drugs-Generic & Other) ......... 11 113,005
Swisscom A.G. (Telephone) ...................................... 209 78,602
Zurich Allied A.G. (Insurance-Multi-Line) ...................... 123 69,902
----------
396,619
----------
United Kingdom--17.21%
Abbey National PLC (Savings & Loan Companies) .................. 3,000 56,319
CGU PLC (Insurance Brokers) .................................... 4,100 59,230
Compass Group PLC (Services-Commercial & Consumer) ............. 4,878 48,363
Diageo PLC (Beverages-Alcoholic) ............................... 5,500 57,435
EMAP PLC (Publishing) .......................................... 2,800 48,990
Glaxo Wellcome PLC (Health Care-Drugs-Generic & Other) ......... 1,500 41,684
Hays PLC (Services-Commercial & Consumer) ...................... 7,600 80,083
Lloyds TSB Group PLC (Banks-Major Regional) .................... 6,100 82,690
Nycomed Amersham PLC (Health Care-Drugs-Generic & Other) ....... 8,100 56,305
Orange PLC (Telephone) (a) ..................................... 4,800 70,364
Pearson PLC (Specialty Printing) ............................... 4,000 81,271
Reuters Group PLC (Services-Commercial & Consumer) ............. 3,500 46,038
Rolls-Royce PLC (Aerospace/Defense) ............................ 12,800 54,173
Schroders PLC (Banks-Regional) ................................. 2,700 55,156
SmithKline Beecham PLC (Health Care-Diversified) ............... 6,500 84,475
United Biscuits Holdings PLC (Foods) ........................... 14,300 42,996
Vodafone Airtouch PLC (Telecommunications-Cellular/Wireless) ... 5,504 108,446
----------
1,074,018
----------
TOTAL FOREIGN STOCKS & OTHER EQUITY INTERESTS (cost
$4,398,201) ..................................................... 4,844,845
----------
PRINCIPAL
NON-U.S. DOLLAR DENOMINATED NON-CONVERTIBLE BONDS & NOTES--0.32% AMOUNT
- ------------------------------------------------------------------ --------
Netherlands--0.32%
Tecnost International N.V., Floating Rate Notes, 4.487%,
06/23/04
(Financial-Diversified) (cost $0) ............................ $ 19,352 20,292
----------
</TABLE>
See Notes to Financial Statements.
F52
<PAGE>
GTG VARIABLE INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
U.S. GOVERNMENT AGENCY SECURITIES--14.19% SHARES VALUE
- ------------------------------------------------------------------ -------- ----------
<S> <C> <C> <C>
Federal Home Loan Mortgage Corp., Discount Notes, 4.60%,
07/01/99 (b) (Cost $885,000) .................................. 885,000 $ 885,000
----------
TOTAL INVESTMENTS--92.16% ........................................ 5,750,137(c)
Other Assets Less Liabilities--7.84% ............................. 488,824
----------
NET ASSETS--100.00% .............................................. $6,238,961
----------
----------
</TABLE>
- --------------
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Rate shown represents the rate of discount paid or received at the
time of purchase by the Fund.
(c) For federal tax purposes cost is $5,306,902 and unrealized
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 685,879
Unrealized depreciation: (242,644)
-------------
Net unrealized appreciation: $ 443,235
-------------
-------------
</TABLE>
Abbreviations:
Pfd.--Preferred
Rts.--Rights
See Notes to Financial Statements.
F53
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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.................. $17,010,569 $7,044,778 $5,808,280 $13,159,988
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
At value............................ $16,032,078 $6,463,591 $5,606,035 $11,682,787
Repurchase agreements, at value and
cost (Note 1)........................ 785,000 61,000 15,000 117,000
U.S. currency......................... 53 911 23,946 694
Foreign currencies (cost $241;
$40,778; $0; $2,161; $435,269; $686;
$199,108; $1,848; $0; $0; $124,902;
$1,913,464; $0; $185,851,
respectively)........................ 230 40,493 -- 2,160
Dividends and dividend withholding tax
reclaims receivable.................. -- -- -- 42,802
Interest and interest withholding tax
reclaims receivable.................. 339,065 101,935 102,758 --
Receivable for Fund shares sold....... 10,219 8,771 -- 180,078
Receivable for open forward foreign
currency contracts, net (Note 1)..... 985 1,672 -- --
Receivable for securities sold........ 237,670 -- -- 82,628
Receivable from A I M Advisors, Inc.
(Note 2)............................. -- -- -- 3,975
Miscellaneous receivable.............. 2,054 41 -- 288
---------- ----------- ----------- ----------
Total assets........................ 17,407,354 6,678,414 5,747,739 12,112,412
---------- ----------- ----------- ----------
Liabilities:
Distribution payable (Note 1)......... -- -- -- --
Interest rate swaps................... 4,158 -- -- --
Payable for custodian fees............ 3,544 842 1,030 2,165
Payable for fund accounting fees (Note
2)................................... -- -- -- --
Payable for Fund shares repurchased
(Note 2)............................. 64,979 57,170 15,256 29,250
Payable for investment management and
administration fees (Note 2)......... -- 11,600 3,107 1,924
Payable for loan interest (Note 1).... -- -- 65 2,494
Payable for printing and postage
expenses............................. 11,950 10,634 9,224 --
Payable for professional fees......... 8,260 5,154 2,217 373
Payable for registration and filing
fees................................. -- 986 487 --
Payable for securities purchased...... 756,967 273,716 -- --
Payable for trustees' fees and
expenses (Note 2).................... 275 1,050 1,147 1,060
Other accrued expenses................ 10,223 -- 1,030 --
---------- ----------- ----------- ----------
Total liabilities................... 860,356 361,152 33,563 37,266
---------- ----------- ----------- ----------
Net assets.............................. $16,546,998 $6,317,262 $5,714,176 $12,075,146
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
Shares outstanding...................... 1,420,435 581,235 500,035 951,922
Net asset value per share............... $ 11.65 $ 10.87 $ 11.43 $ 12.69
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $19,350,301 $7,230,583 $5,618,570 $17,921,785
Undistributed net investment income
(loss)............................... 137,572 69,539 71,058 416,654
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (1,955,946) (400,593) 226,793 (4,781,337)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (6,438) (1,080) -- (4,755)
Net unrealized appreciation
(depreciation) of investments........ (978,491) (581,187) (202,245) (1,477,201)
---------- ----------- ----------- ----------
Total -- representing net assets
applicable to shares outstanding....... $16,546,998 $6,317,262 $5,714,176 $12,075,146
---------- ----------- ----------- ----------
---------- ----------- ----------- ----------
</TABLE>
See Notes to Financial Statements
F54
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES (cont'd)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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.................. $37,356,270 $46,098,330 $6,991,343 $3,963,131 $6,100,096 $33,271,655 $10,038,992
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
At value............................ $43,501,012 $69,821,631 $7,909,691 $5,245,596 $6,367,428 $37,841,369 $12,964,125
Repurchase agreements, at value and
cost (Note 1)........................ 2,731,000 3,954,000 656,000 -- 1,191,000 1,444,000 9,730,000
U.S. currency......................... 703 133 809 968 -- 429 1,084
Foreign currencies (cost $241;
$40,778; $0; $2,161; $435,269; $686;
$199,108; $1,848; $0; $0; $124,902;
$1,913,464; $0; $185,851,
respectively)........................ 434,277 688 199,426 1,827 76 -- 120,761
Dividends and dividend withholding tax
reclaims receivable.................. 160,510 30,791 33,125 13,309 12,743 11,240 43,742
Interest and interest withholding tax
reclaims receivable.................. 241,868 516 86 -- -- 188 1,270
Receivable for Fund shares sold....... 1,216,253 137,525 1,334,671 -- 155 90,039 5,007,892
Receivable for open forward foreign
currency contracts, net (Note 1)..... 89,675 -- -- -- 49,971 -- --
Receivable for securities sold........ -- 4,814 4,035 260,466 -- 77,630 --
Receivable from A I M Advisors, Inc.
(Note 2)............................. -- -- -- -- -- -- --
Miscellaneous receivable.............. 174 -- -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total assets........................ 48,375,472 73,950,098 10,137,843 5,522,166 7,621,373 39,464,895 27,868,874
---------- ---------- ---------- ----------- ---------- ---------- ----------
Liabilities:
Distribution payable (Note 1)......... -- -- -- -- -- -- --
Interest rate swaps................... -- -- -- -- -- -- --
Payable for custodian fees............ 5,192 9,563 2,245 1,586 5,353 5,944 3,823
Payable for fund accounting fees (Note
2)................................... -- -- 182 205 -- -- --
Payable for Fund shares repurchased
(Note 2)............................. 83,694 170,679 4,825 29,839 81,386 625,735 33,898
Payable for investment management and
administration fees (Note 2)......... -- -- 6,096 -- -- -- --
Payable for loan interest (Note 1).... -- -- -- -- -- -- 462
Payable for printing and postage
expenses............................. -- 8,049 10,182 7,344 11,759 4,777 11,522
Payable for professional fees......... 8,421 10,300 8,480 4,139 2,658 3,113 9,119
Payable for registration and filing
fees................................. -- -- 796 -- -- -- --
Payable for securities purchased...... -- 47,438 405,760 -- -- 20,674 154,876
Payable for trustees' fees and
expenses (Note 2).................... 600 -- 2,357 218 1,020 1,246 1,072
Other accrued expenses................ 9,691 1,677 15,013 237 18,023 657 981
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total liabilities................... 107,598 247,706 455,936 43,568 120,199 662,146 215,753
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets.............................. $48,267,874 $73,702,392 $9,681,907 $5,478,598 $7,501,174 $38,802,749 $27,653,121
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Shares outstanding...................... 2,332,391 2,854,588 1,105,930 295,712 594,911 1,638,441 2,710,562
Net asset value per share............... $ 20.69 $ 25.82 $ 8.75 $ 18.53 $ 12.61 $ 23.68 $ 10.20
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $30,338,152 $35,934,926 $13,557,576 $4,140,049 $11,324,977 $24,839,070 $27,774,836
Undistributed net investment income
(loss)............................... 912,637 (183,211) 132,522 134,088 147,729 (82,002) 415,452
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... 10,794,250 14,227,642 (4,929,194) (77,538) (4,238,819) 9,475,967 (3,458,625)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 78,093 (266) 2,655 (466) (45) -- (3,675)
Net unrealized appreciation
(depreciation) of investments........ 6,144,742 23,723,301 918,348 1,282,465 267,332 4,569,714 2,925,133
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total -- representing net assets
applicable to shares outstanding....... $48,267,874 $73,702,392 $9,681,907 $5,478,598 $7,501,174 $38,802,749 $27,653,121
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
---------- ---------- -----------
<S> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $17,634,118 $25,250,646 $5,283,201
---------- ---------- -----------
---------- ---------- -----------
At value............................ $18,316,438 $19,900,646 $5,750,137
Repurchase agreements, at value and
cost (Note 1)........................ 3,940,000 5,350,000 --
U.S. currency......................... 930 626 200
Foreign currencies (cost $241;
$40,778; $0; $2,161; $435,269; $686;
$199,108; $1,848; $0; $0; $124,902;
$1,913,464; $0; $185,851,
respectively)........................ 1,911,877 -- 183,432
Dividends and dividend withholding tax
reclaims receivable.................. 54,485 -- 14,998
Interest and interest withholding tax
reclaims receivable.................. 575 698 --
Receivable for Fund shares sold....... 4,941,513 -- 386,920
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- -- 9,389
Receivable for securities sold........ 183,879 -- 17,325
Receivable from A I M Advisors, Inc.
(Note 2)............................. -- -- 1,324
Miscellaneous receivable.............. 18,522 42 --
---------- ---------- -----------
Total assets........................ 29,368,219 25,252,012 6,363,725
---------- ---------- -----------
Liabilities:
Distribution payable (Note 1)......... -- 7,446 --
Interest rate swaps................... -- -- --
Payable for custodian fees............ 5,444 3,082 3,055
Payable for fund accounting fees (Note
2)................................... -- -- 126
Payable for Fund shares repurchased
(Note 2)............................. 28,537 -- 14,776
Payable for investment management and
administration fees (Note 2)......... -- -- --
Payable for loan interest (Note 1).... 604 -- 1,182
Payable for printing and postage
expenses............................. 968 9,128 9,737
Payable for professional fees......... 977 8,660 12,188
Payable for registration and filing
fees................................. -- -- --
Payable for securities purchased...... 488,029 -- 82,418
Payable for trustees' fees and
expenses (Note 2).................... 1,062 2,250 900
Other accrued expenses................ -- -- 382
---------- ---------- -----------
Total liabilities................... 525,621 30,566 124,764
---------- ---------- -----------
Net assets.............................. $28,842,598 $25,221,446 $6,238,961
---------- ---------- -----------
---------- ---------- -----------
Shares outstanding...................... 1,317,848 25,221,446 500,459
Net asset value per share............... $ 21.89 $ 1.00 $ 12.47
---------- ---------- -----------
---------- ---------- -----------
Net assets consist of:
Paid in capital (Note 4).............. $17,012,533 $25,221,446 $5,137,392
Undistributed net investment income
(loss)............................... 190,192 -- 115,166
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... 10,961,427 -- 513,096
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (3,874) -- 6,378
Net unrealized appreciation
(depreciation) of investments........ 682,320 -- 466,929
---------- ---------- -----------
Total -- representing net assets
applicable to shares outstanding....... $28,842,598 $25,221,446 $6,238,961
---------- ---------- -----------
---------- ---------- -----------
</TABLE>
See Notes to Financial Statements
F55
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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)
Dividends............................. $ -- $ -- $ -- $ 188,520
Interest.............................. 741,861 220,834 211,258 3,412
Securities lending.................... 1,338 871 -- 4,958
----------- ---------- ---------- -----------
Total investment income............. 743,199 221,705 211,258 196,890
----------- ---------- ---------- -----------
Expenses:
Custodian fees (Note 1)............... 17,402 2,249 102 7,780
Fund accounting fees (Note 2)......... 2,951 736 1,088 1,375
Interest expense (Note 1)............. 17,005 -- 323 4,377
Investment management and
administration fees (Note 2)......... 69,832 28,648 25,270 50,831
Printing and postage expenses......... 14,636 3,893 304 2,269
Professional fees..................... 5,482 7,978 6,075 18,333
Registration and filing fees.......... -- 986 -- --
Trustees' fees and expenses (Note
2)................................... 550 744 693 2,023
Other expenses........................ -- 2,046 187 1,243
----------- ---------- ---------- -----------
Total expenses before reimbursements
and reductions..................... 127,858 47,280 34,042 88,231
----------- ---------- ---------- -----------
Expenses reimbursed and waivers
(Note 2)......................... (16,087) (8,895 ) -- (20,252)
Expense reductions (Note 5)....... (501) (20 ) (14) (128)
----------- ---------- ---------- -----------
Total net expenses.................. 111,270 38,365 34,028 67,851
----------- ---------- ---------- -----------
Net investment income (loss)............ 631,929 183,340 177,230 129,039
----------- ---------- ---------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... (668,485) (9,997 ) 5,159 (1,491,279)
Net realized gain (loss) on foreign
currency transactions................ 33,781 (37,290 ) -- (59,985)
----------- ---------- ---------- -----------
Net realized gain (loss) during the
period............................. (634,704) (47,287 ) 5,159 (1,551,264)
----------- ---------- ---------- -----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (13,192) (402 ) -- (4,668)
Net change in unrealized appreciation
(depreciation) of investments........ (454,845) (719,735 ) (398,871) 4,139,048
----------- ---------- ---------- -----------
Net unrealized appreciation
(depreciation) during the period... (468,037) (720,137 ) (398,871) 4,134,380
----------- ---------- ---------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... (1,102,741) (767,424 ) (393,712) 2,583,116
----------- ---------- ---------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $ (470,812) $(584,084 ) $(216,482) $ 2,712,155
----------- ---------- ---------- -----------
----------- ---------- ---------- -----------
*Net of foreign withholding tax of:.... $ -- $ -- $ -- $ 25,637
----------- ---------- ---------- -----------
----------- ---------- ---------- -----------
</TABLE>
See Notes to Financial Statements
F56
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS (cont'd)
Six months ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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)
Dividends............................. $ 545,629 $ 137,184 $ 86,367 $ 55,316 $ 66,798 $ 44,898
Interest.............................. 419,434 99,294 19,699 8,517 12,208 37,488
Securities lending.................... 4,046 27,673 727 183 53 6,824
------------ ----------- ----------- -------------- ----------- -----------
Total investment income............. 969,109 264,151 106,793 64,016 79,059 89,210
------------ ----------- ----------- -------------- ----------- -----------
Expenses:
Custodian fees (Note 1)............... 17,667 25,216 8,991 3,352 8,402 11,886
Fund accounting fees (Note 2)......... 7,302 9,492 1,432 979 923 5,510
Interest expense (Note 1)............. 4,543 4,428 8,595 -- 3,059 817
Investment management and
administration fees (Note 2)......... 250,685 364,511 33,690 28,144 31,815 141,176
Printing and postage expenses......... 1,514 12,564 8,350 3,645 7,844 3,683
Professional fees..................... 25,543 26,782 2,400 7,875 4,468 8,079
Registration and filing fees.......... -- 25 -- -- -- --
Trustees' fees and expenses (Note
2)................................... 3,110 2,445 1,695 1,728 2,331 908
Other expenses........................ 2,863 3,966 6,710 736 922 --
------------ ----------- ----------- -------------- ----------- -----------
Total expenses before reimbursements
and reductions..................... 313,227 449,429 71,863 46,459 59,764 172,059
------------ ----------- ----------- -------------- ----------- -----------
Expenses reimbursed and waivers
(Note 2)......................... -- -- (20,418) (11,257) (16,862 ) --
Expense reductions (Note 5)....... (2,741) (2,067 ) (740) (391) (264 ) (847)
------------ ----------- ----------- -------------- ----------- -----------
Total net expenses.................. 310,486 447,362 50,705 34,811 42,638 171,212
------------ ----------- ----------- -------------- ----------- -----------
Net investment income (loss)............ 658,623 (183,211 ) 56,088 29,205 36,421 (82,002)
------------ ----------- ----------- -------------- ----------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 3,365,962 7,903,865 (119,673) 205,065 153,316 11,139,271
Net realized gain (loss) on foreign
currency transactions................ 61,147 (162,365 ) (22,236) (5,454) (2,394 ) --
------------ ----------- ----------- -------------- ----------- -----------
Net realized gain (loss) during the
period............................. 3,427,109 7,741,500 (141,909) 199,611 150,922 11,139,271
------------ ----------- ----------- -------------- ----------- -----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 68,815 44,328 3,460 370 (488 ) --
Net change in unrealized appreciation
(depreciation) of investments........ (5,586,411) 7,662,986 2,044,351 156,967 750,451 (4,955,302)
------------ ----------- ----------- -------------- ----------- -----------
Net unrealized appreciation
(depreciation) during the period... (5,517,596) 7,707,314 2,047,811 157,337 749,963 (4,955,302)
------------ ----------- ----------- -------------- ----------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... (2,090,487) 15,448,814 1,905,902 356,948 900,885 6,183,969
------------ ----------- ----------- -------------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $(1,431,864) $15,265,603 $ 1,961,990 $386,153 $ 937,306 $ 6,101,967
------------ ----------- ----------- -------------- ----------- -----------
------------ ----------- ----------- -------------- ----------- -----------
*Net of foreign withholding tax of:.... $ 50,715 $ 10,515 $ 7,036 $ 3,102 $ 4,414 $ 46
------------ ----------- ----------- -------------- ----------- -----------
------------ ----------- ----------- -------------- ----------- -----------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividends............................. $ 165,616 $ 211,391 $ -- $ 49,927
Interest.............................. 62,720 34,112 816,239 21,853
Securities lending.................... 2,099 7,629 -- 716
----------- ---------- ---------- -------------
Total investment income............. 230,435 253,132 816,239 72,496
----------- ---------- ---------- -------------
Expenses:
Custodian fees (Note 1)............... 11,574 25,353 6,853 321
Fund accounting fees (Note 2)......... 2,249 4,102 3,297 962
Interest expense (Note 1)............. 9,354 14,066 -- 2,118
Investment management and
administration fees (Note 2)......... 69,020 137,718 85,240 34,292
Printing and postage expenses......... 1,516 4,618 10,829 439
Professional fees..................... 12,409 8,291 13,418 539
Registration and filing fees.......... -- -- -- --
Trustees' fees and expenses (Note
2)................................... 1,498 2,283 4,082 2,415
Other expenses........................ 249 -- -- --
----------- ---------- ---------- -------------
Total expenses before reimbursements
and reductions..................... 107,869 196,431 123,719 41,086
----------- ---------- ---------- -------------
Expenses reimbursed and waivers
(Note 2)......................... (11,610) (8,660) -- (3,050)
Expense reductions (Note 5)....... (41,304) (3,313) -- (302)
----------- ---------- ---------- -------------
Total net expenses.................. 54,955 184,458 123,719 37,734
----------- ---------- ---------- -------------
Net investment income (loss)............ 175,480 68,674 692,520 34,762
----------- ---------- ---------- -------------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 921,875 2,442,403 -- 205,707
Net realized gain (loss) on foreign
currency transactions................ (74,660) (200,202) -- (8,277)
----------- ---------- ---------- -------------
Net realized gain (loss) during the
period............................. 847,215 2,242,201 -- 197,430
----------- ---------- ---------- -------------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (3,576) (4,734) -- 18,099
Net change in unrealized appreciation
(depreciation) of investments........ 2,558,536 (3,004,437) -- 76,302
----------- ---------- ---------- -------------
Net unrealized appreciation
(depreciation) during the period... 2,554,960 (3,009,171) -- 94,401
----------- ---------- ---------- -------------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 3,402,175 (766,970) -- 291,831
----------- ---------- ---------- -------------
Net increase (decrease) in net assets
resulting from operations.............. $ 3,577,655 $ (698,296) $ 692,520 $326,593
----------- ---------- ---------- -------------
----------- ---------- ---------- -------------
*Net of foreign withholding tax of:.... $ 18,046 $ 29,361 $ -- $ 5,744
----------- ---------- ---------- -------------
----------- ---------- ---------- -------------
</TABLE>
See Notes to Financial Statements
F57
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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).......... $ 631,929 $ 183,340 $ 177,230 $ 129,039
Net realized gain (loss) on
investments and foreign currency
transactions......................... (634,704) (47,287) 5,159 (1,551,264)
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (13,192) (402) -- (4,668)
Net change in unrealized appreciation
(depreciation) of investments........ (454,845) (719,735) (398,871) 4,139,048
------------- ------------- ------------- -----------
Net increase (decrease) in net
assets resulting from operations... (470,812) (584,084) (216,482) 2,712,155
------------- ------------- ------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ (697,779) (115,643) (179,356) --
From net realized gain on
investments.......................... -- -- -- --
------------- ------------- ------------- -----------
Total distributions................. (697,779) (115,643) (179,356) --
------------- ------------- ------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 8,256,752 6,505,250 1,918,947 7,606,524
Decrease from capital shares
repurchased.......................... (12,563,008) (8,288,952) (3,190,104) (8,178,790)
------------- ------------- ------------- -----------
Net increase (decrease) from capital
share transactions................. (4,306,256) (1,783,702) (1,271,157) (572,266)
------------- ------------- ------------- -----------
Total increase (decrease) in net
assets................................. (5,474,847) (2,483,429) (1,666,995) 2,139,889
Net assets:
Beginning of year..................... 22,021,845 8,800,691 7,381,171 9,935,257
------------- ------------- ------------- -----------
End of period * *..................... $ 16,546,998 $ 6,317,262 $ 5,714,176 $12,075,146
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
* *Includes undistributed net
investment income (loss) of:......... $ 137,572 $ 69,539 $ 71,058 $ 416,654
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1998
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 shares sold and
reinvested........................... 25,526,105 20,698,834 14,866,467 18,570,157
Decrease from 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 period *....................... $ 22,021,845 $ 8,800,691 $ 7,381,171 $ 9,935,257
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
*Includes undistributed net
investment income (loss) of:......... $ 203,422 $ 1,842 $ 73,184 $ 287,615
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</TABLE>
See Notes to Financial Statements
F58
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (cont'd)
For the six months ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<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).......... $ 658,623 $ (183,211) $ 56,088 $ 29,205 $ 36,421 $ (82,002)
Net realized gain (loss) on
investments and foreign currency
transactions......................... 3,427,109 7,741,500 (141,909) 199,611 150,922 11,139,271
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 68,815 44,328 3,460 370 (488)
Net change in unrealized appreciation
(depreciation) of investments........ (5,586,411) 7,662,986 2,044,351 156,967 750,451 (4,955,302)
------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) in net
assets resulting from operations... (1,431,864) 15,265,603 1,961,990 386,153 937,306 6,101,967
------------- ------------ ------------ ------------ ------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (467,607) -- -- -- -- --
From net realized gain on
investments.......................... -- -- -- -- -- --
------------- ------------ ------------ ------------ ------------- -------------
Total distributions................. (467,607) -- -- -- -- --
------------- ------------ ------------ ------------ ------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 40,366,920 44,168,384 43,197,539 767,818 9,165,810 28,817,014
Decrease from capital shares
repurchased.......................... (45,779,836) (55,190,930) (41,129,032) (2,016,754 ) (8,997,542) (36,949,264)
------------- ------------ ------------ ------------ ------------- -------------
Net increase (decrease) from capital
share transactions................. (5,412,916) (11,022,546) 2,068,507 (1,248,936 ) 168,268 (8,132,250)
------------- ------------ ------------ ------------ ------------- -------------
Total increase (decrease) in net
assets................................. (7,312,387) 4,243,057 4,030,497 (862,783 ) 1,105,574 (2,030,283)
Net assets:
Beginning of year..................... 55,580,261 69,459,335 5,651,410 6,341,381 6,395,600 40,833,032
------------- ------------ ------------ ------------ ------------- -------------
End of period......................... $ 48,267,874 $ 73,702,392 $ 9,681,907 $ 5,478,598 $ 7,501,174 $ 38,802,749
------------- ------------ ------------ ------------ ------------- -------------
------------- ------------ ------------ ------------ ------------- -------------
* *Includes undistributed net
investment income (loss) of:......... $ 912,637 $ (183,211) $ 132,522 $ 134,088 $ 147,729 $ (82,002)
------------- ------------ ------------ ------------ ------------- -------------
------------- ------------ ------------ ------------ ------------- -------------
<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).......... $ 175,480 $ 68,674 $ 692,520 $ 34,762
Net realized gain (loss) on
investments and foreign currency
transactions......................... 847,215 2,242,201 -- 197,430
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (3,576) (4,734) -- 18,099
Net change in unrealized appreciation
(depreciation) of investments........ 2,558,536 (3,004,437) -- 76,302
-------------- -------------- -------------- -----------
Net increase (decrease) in net
assets resulting from operations... 3,577,655 (698,296) 692,520 326,593
-------------- -------------- -------------- -----------
Distributions to shareholders: (Note 1)
From net investment income............ -- -- (692,520) --
From net realized gain on
investments.......................... -- -- -- --
-------------- -------------- -------------- -----------
Total distributions................. -- -- (692,520) --
-------------- -------------- -------------- -----------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 205,795,744 202,242,623 519,274,512 33,541,834
Decrease from capital shares
repurchased.......................... (192,730,303) (205,318,620) (525,640,797) (34,956,817)
-------------- -------------- -------------- -----------
Net increase (decrease) from capital
share transactions................. 13,065,441 (3,075,997) (6,366,285) (1,414,983 )
-------------- -------------- -------------- -----------
Total increase (decrease) in net
assets................................. 16,643,096 (3,774,293) (6,366,285) (1,088,390 )
Net assets:
Beginning of year..................... 11,010,025 32,616,891 31,587,731 7,327,351
-------------- -------------- -------------- -----------
End of period......................... $ 27,653,121 $ 28,842,598 $ 25,221,446 $6,238,961
-------------- -------------- -------------- -----------
-------------- -------------- -------------- -----------
* *Includes undistributed net
investment income (loss) of:......... $ 415,452 $ 190,192 $ -- $ 115,166
-------------- -------------- -------------- -----------
-------------- -------------- -------------- -----------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1998
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 shares sold
and reinvested............. 82,103,169 55,176,617 35,674,006 1,873,104 18,226,922 70,317,597
Decrease from 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 period *............. $ 55,580,261 $ 69,459,335 $ 5,651,410 $ 6,341,381 $ 6,395,600 $ 40,833,032
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
*Includes undistributed net
investment income (loss)
of:........................ $ 721,621 $ -- $ 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 shares sold
and reinvested............. 174,054,677 354,305,731 727,175,801 79,400,263
Decrease from 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 period *............. $ 11,010,025 $ 32,616,891 $ 31,587,731 $ 7,327,351
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
*Includes undistributed net
investment income (loss)
of:........................ $ 239,972 $ 121,518 $ -- 80,404
-------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------
</TABLE>
See Notes to Financial Statements
F59
<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
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.39 $ 13.39 $ 13.38 $ 11.86 $ 10.82 $ 14.57
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.43 0.97(a) 1.00(b) 0.95(c) 1.07(d) 1.71(e)
Net realized and unrealized gain
(loss) on investments................ (0.72) (1.05) (0.07) 1.50 0.93 (4.17)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... (0.29) (0.08) 0.93 2.45 2.00 (2.46)
------------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.45) (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................. (0.45) (0.92) (0.92) (0.93) (0.96) (1.29)
------------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 11.65 $ 12.39 $ 13.39 $ 13.38 $ 11.86 $ 10.82
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. (2.40)% (0.61)% 7.14% 21.58% 19.50% (17.09)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 16,547 $ 22,022 $ 28,497 $ 31,718 $ 25,345 $ 23,367
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 6.80% 7.16% 7.20% 7.74% 9.59% 7.58%
Without reimbursement +............... 6.62% 6.97% 7.03% 7.59% 9.35% 7.43%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.02% 1.00% 0.90% 0.99% 1.00% 1.00%
Without reimbursement +............... 1.19% 1.19% 1.07% 1.14% 1.24% 1.15%
Ratio of interest expense to average net
assets +............................... 0.18% 0.16% --% --% --% --%
Portfolio turnover...................... 121% 282% 185% 210% 193% 313%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 9.61 $ 16.95 $ 14.80 $ 12.42 $ 19.17 $ 17.68
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.16 0.39(a) 0.24(b) 0.27(c) 0.51(d) 0.11(e)
Net realized and unrealized gain
(loss) on investments................ 2.92 (7.36) 1.91 2.49 (5.10) 1.49
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... 3.08 (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.......... $ 12.69 $ 9.61 $ 16.95 $ 14.80 $ 12.42 $ 19.17
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. 32.05% (41.71)% 14.53% 22.48% (24.14)% 9.14%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 12,075 $ 9,935 $ 28,786 $ 22,928 $ 19,771 $ 26,631
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 2.54% 1.97% 1.36% 1.94% 4.43% 0.82%
Without reimbursement +............... 2.14% 1.70% 1.21% 1.69% 3.92% 0.49%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.25% 1.25% 1.25% 1.17% 1.18% 1.25%
Without reimbursement +............... 1.65% 1.52% 1.40% 1.42% 1.69% 1.58%
Ratio of interest expense to average net
assets +............................... 0.09% 0.14% --% --% --% --%
Portfolio turnover...................... 23% 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).
See Notes to Financial Statements
F60
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.91 $ 11.17 $ 11.43 $ 11.51 $ 10.63 $ 12.53
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.28 0.67(a) 0.82(b) 0.72(c) 0.79(d) 0.77(e)
Net realized and unrealized gain
(loss) on investments................ (1.16) 0.71 (0.34) (0.06) 0.84 (1.85)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... (0.88) 1.38 0.48 0.66 1.63 (1.08)
------------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.16) (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................. (0.16) (0.64) (0.74) (0.74) (0.75) (0.82)
------------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 10.87 $ 11.91 $ 11.17 $ 11.43 $ 11.51 $ 10.63
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. (7.43)% 12.69% 4.37% 6.17% 15.85% (8.70)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 6,317 $ 8,801 $ 8,251 $ 10,397 $ 11,944 $ 9,654
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 4.80% 5.71% 6.33% 6.32% 7.03% 6.89%
Without reimbursement +............... 4.57% 5.28% 5.74% 5.80% 6.37% 6.21%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.00% 1.00% 0.95% 0.95% 1.00% 1.00%
Without reimbursement +............... 1.24% 1.43% 1.54% 1.47% 1.66% 1.68%
Ratio of interest expense to average net
assets +............................... --% 0.07% --% --% --% --%
Portfolio turnover...................... 53% 224% 235% 235% 394% 350%
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 12.11 $ 11.70 $ 11.41 $ 11.74 $ 10.79 $ 12.23
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.34 0.63(a) 0.63(b) 0.60(c) 0.62(d) 0.63(e)
Net realized and unrealized gain
(loss) on investments................ (0.70) 0.40 0.29 (0.35) 0.93 (1.39)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... (0.36) 1.03 0.92 0.25 1.55 (0.76)
------------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.32) (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................. (0.32) (0.62) (0.63) (0.58) (0.60) (0.68)
------------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 11.43 $ 12.11 $ 11.70 $ 11.41 $ 11.74 $ 10.79
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. (3.06)% 9.06% 8.30% 2.23% 14.73% (6.27)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 5,714 $ 7,381 $ 7,373 $ 5,483 $ 5,992 $ 2,415
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 5.26% 5.17% 5.54% 5.24% 5.43% 5.53%
Without reimbursement +............... 5.26% 4.85% 4.92% 4.49% 3.87% 1.29%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.00% 1.00% 1.00% 1.00% 1.00% 0.38%
Without reimbursement +............... 1.00% 1.32% 1.62% 1.75% 2.56% 4.63%
Ratio of interest expense to average net
assets +............................... 0.01% 0.07% --% --% --% --%
Portfolio turnover...................... 12% 231% 143% 49% 186% 34%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 21.51 $ 18.60 $ 16.51 $ 14.57 $ 12.99 $ 13.77
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.31 0.53(a) 0.41(b) 0.53(c) 0.52(d) 0.46(e)
Net realized and unrealized gain
(loss) on investments................ (0.93) 3.08 2.23 1.81 1.46 (0.85)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... (0.62) 3.61 2.64 2.34 1.98 (0.39)
------------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.20) (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................. (0.20) (0.70) (0.55) (0.40) (0.40) (0.39)
------------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.......... $ 20.69 $ 21.51 $ 18.60 $ 16.51 $ 14.57 $ 12.99
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. (3.13)% 19.60% 16.22% 16.33% 15.49% (2.85)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 48,268 $ 55,580 $ 50,356 $ 36,433 $ 30,565 $ 25,580
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 2.63% 2.53% 2.86% 3.58% 3.87% 3.69%
Without reimbursement +............... 2.63% 2.53% 2.72% 3.48% 3.66% 3.45%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.23% 1.22% 1.13% 1.20% 1.23% 1.25%
Without reimbursement +............... 1.23% 1.22% 1.27% 1.30% 1.44% 1.49%
Ratio of interest expense to average net
assets +............................... 0.02% 0.04% --% --% --% --%
Portfolio turnover...................... 33% 72% 60% 57% 73% 53%
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.66 $ 18.40 $ 18.14 $ 16.87 $ 13.98 $ 13.07
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... (0.06) (0.01) (a) (0.02) (0.05) 0.02(d) 0.01(e)
Net realized and unrealized gain
(loss) on investments................ 5.22 3.99 2.59 3.31 3.26 0.92
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... 5.16 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.......... $ 25.82 $ 20.66 $ 18.40 $ 18.14 $ 16.87 $ 13.98
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. 24.98% 22.11% 14.56% 19.34% 23.66% 7.15%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 73,702 $ 69,459 $ 68,186 $ 63,258 $ 50,778 $ 36,029
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... (0.50)% (0.04)% (0.10)% (0.26)% 0.16% 0.31%
Without reimbursement +............... (0.50)% (0.05)% (0.15)% (0.31)% 0.10% 0.07%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.22% 1.16% 1.11% 1.12% 1.20% 1.25%
Without reimbursement +............... 1.22% 1.17% 1.16% 1.17% 1.26% 1.49%
Ratio of interest expense to average net
assets +............................... 0.01% 0.01% --% --% --% --%
Portfolio turnover...................... 82% 73% 91% 77% 70% 81%
</TABLE>
- ------------------------
(f) Total returns do 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.
Total returns are not annualized for periods less than one year.
(g) For periods ended prior to June 30, 1999 ratios may include expense
reductions.
+ Annualized for periods less than one year.
See Notes to Financial Statements
F61
<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
SIX MONTHS OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, ----------------------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 6.69 $ 11.57 $ 14.26 $ 10.88 $ 11.89 $ 12.00
------------- ----------- ----------- ----------- ----------- ---------------
Net investment income (loss).......... 0.06* 0.27(a) 0.15(b) 0.11(c) 0.14(d) 0.07(e)
Net realized and unrealized gain
(loss) on investments................ 2.00 (4.34) (1.89) 3.27 (1.04) (0.05)
------------- ----------- ----------- ----------- ----------- ---------------
Net increase (decrease) resulting
from operations.................... 2.06 (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.......... $ 8.75 $ 6.69 $ 11.57 $ 14.26 $ 10.88 $ 11.89
------------- ----------- ----------- ----------- ----------- ---------------
------------- ----------- ----------- ----------- ----------- ---------------
Total investment return (f)............. 30.79% (36.90)% (13.76)% 31.07% (7.54)% 0.12%
------------- ----------- ----------- ----------- ----------- ---------------
------------- ----------- ----------- ----------- ----------- ---------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 9,682 $ 5,651 $ 16,509 $ 17,604 $ 8,983 $ 7,267
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 1.66% 1.61% 1.05% 0.89% 1.55% 4.10%
Without reimbursement +............... 1.06% 0.72% 0.78% 0.39% 0.51% (0.20)%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.27% 1.23% 1.22% 1.18% 1.18% 0.00%
Without reimbursement +............... 1.87% 2.12% 1.49% 1.68% 2.22% 4.30%
Ratio of interest expense to average net
assets +............................... 0.25% 0.17% --% --% --% --%
Portfolio turnover...................... 96% 110% 212% 216% 210% 117%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE AMERICA FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.15 $ 21.68 $ 19.71 $ 19.46 $ 15.81 $ 13.75
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... (0.05) (0.13) (0.07) 0.12(c) 0.21(d) 0.48(e)
Net realized and unrealized gain
(loss) on investments................ 3.58 1.80 2.88 3.18 3.80 2.08
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... 3.53 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.......... $ 23.68 $ 20.15 $ 21.68 $ 19.71 $ 19.46 $ 15.81
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. 17.52% 8.09% 14.88% 18.55% 25.37% 18.88%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 38,803 $ 40,833 $ 43,977 $ 41,647 $ 37,643 $ 15,257
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... (0.44)% (0.59)% (0.35)% 0.52% 1.66% 1.83%
Without reimbursement +............... (0.44)% (0.59)% (0.42)% 0.46% 1.60% 0.76%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 0.91% 0.95% 0.91% 0.95% 1.00% 0.98%
Without reimbursement +............... 0.91% 0.95% 0.98% 1.01% 1.06% 2.05%
Ratio of interest expense to average net
assets +............................... --% 0.08% --% --% --% --%
Portfolio turnover...................... 114% 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).
See Notes to Financial Statements
F62
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------------------
VARIABLE INFRASTRUCTURE FUND
-------------------------------------------------------------------------
JANUARY 31,
1995
(COMMENCEMENT
SIX MONTHS YEAR ENDED OF
ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, --------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995
------------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 17.26 $ 16.35 $ 16.47 $ 13.27 $ 12.00
------------- ----------- ----------- ----------- ---------------
Net investment income (loss).......... 0.17 0.31(a) 0.12(b) 0.11(c) 0.07(d)
Net realized and unrealized gain
(loss) on investments................ 1.10 0.77 0.74 3.19 1.20
------------- ----------- ----------- ----------- ---------------
Net increase resulting from
operations......................... 1.27 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.......... $ 18.53 $ 17.26 $ 16.35 $ 16.47 $ 13.27
------------- ----------- ----------- ----------- ---------------
------------- ----------- ----------- ----------- ---------------
Total investment return (f)............. 7.61% 6.58% 5.00% 24.88% 10.58%
------------- ----------- ----------- ----------- ---------------
------------- ----------- ----------- ----------- ---------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 5,479 $ 6,341 $ 8,745 $ 6,054 $ 1,594
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 1.04% 1.37% 0.99% 1.35% 1.24%
Without reimbursement +............... 0.64% 0.94% 0.68% 0.03% (6.11)%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.25% 1.25% 1.18% 1.21% 1.22%
Without reimbursement +............... 1.65% 1.68% 1.49% 2.53% 8.57%
Ratio of interest expense to average net
assets +............................... --% --% --% --% --%
Portfolio turnover...................... 16% 110% 46% 76% 38%
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------------
VARIABLE NATURAL RESOURCES FUND
------------------------------------------------------------------------------
JANUARY 31, 1995
SIX MONTHS YEAR ENDED (COMMENCEMENT OF
ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, ------------------------------------------ DECEMBER 31,
1999 1998 1997 1996 1995
-------------- ------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 10.90 $ 20.20 $ 20.98 $ 13.88 $ 12.00
-------------- ------------ ------------ ------------ ----------------
Net investment income (loss).......... 0.06 0.23(a) (0.03) (b) (0.06) (c) 0.73(d)
Net realized and unrealized gain
(loss) on investments................ 1.65 (6.38) 0.18 7.16 1.91
-------------- ------------ ------------ ------------ ----------------
Net increase resulting from
operations......................... 1.71 (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.......... $ 12.61 $ 10.90 $ 20.20 $ 20.98 $ 13.88
-------------- ------------ ------------ ------------ ----------------
-------------- ------------ ------------ ------------ ----------------
Total investment return (f)............. 15.69% (33.01)% 1.29% 51.15% 22.20%
-------------- ------------ ------------ ------------ ----------------
-------------- ------------ ------------ ------------ ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 7,501 $ 6,396 $ 16,709 $ 16,308 $ 1,365
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 1.14% 1.22% (0.16)% (0.60)% 10.87%
Without reimbursement +............... 0.61% 0.97% (0.38)% (1.30)% 2.94%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.25% 1.24% 1.20% 1.19% 1.14%
Without reimbursement +............... 1.78% 1.49% 1.42% 1.89% 9.07%
Ratio of interest expense to average net
assets +............................... 0.10% 0.04% --% --% --%
Portfolio turnover...................... 93% 305% 315% 199% 875%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE NEW PACIFIC FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 8.72 $ 10.50 $ 18.02 $ 13.92 $ 14.01 $ 16.07
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.11* 0.27(a) 0.26(b) 0.13(c) 0.20(d) 0.08(e)
Net realized and unrealized gain
(loss) on investments................ 1.37 (1.80) (7.61) 4.16 (0.23) (2.08)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... 1.48 (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.......... $ 10.20 $ 8.72 $ 10.50 $ 18.02 $ 13.92 $ 14.01
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. 16.97% (14.54)% (41.11)% 30.97% (0.21)% (12.47)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 27,653 $ 11,010 $ 16,490 $ 32,670 $ 23,025 $ 19,391
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 2.53% 2.38% 1.50% 0.88% 1.27% 0.83%
Without reimbursement +............... 2.36% 1.85% 1.16% 0.60% 1.74% 0.48%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.25% 1.23% 1.09% 1.12% 1.14% 1.25%
Without reimbursement +............... 1.42% 1.76% 1.43% 1.40% 1.61% 1.60%
Ratio of interest expense to average net
assets +............................... 0.13% 0.02% --% --% --% --%
Portfolio turnover...................... 128% 102% 93% 70% 67% 30%
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE EUROPE FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 23.32 $ 22.52 $ 21.34 $ 16.52 $ 15.22 $ 15.33
------------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss).......... 0.06 0.08(a) 0.05(b) 0.05(c) 0.18(d) 0.16(e)
Net realized and unrealized gain
(loss) on investments................ (1.49) 3.74 3.10 4.93 1.28 (0.25)
------------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) resulting
from operations.................... (1.43) 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.......... $ 21.89 $ 23.32 $ 22.52 $ 21.34 $ 16.52 $ 15.22
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. (6.05)% 15.98% 15.15% 30.25% 9.66% (0.59)%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 28,843 $ 32,617 $ 27,410 $ 24,537 $ 15,641 $ 15,020
Ratio of net investment income (loss) to
average net assets:
With reimbursement (Note 2) (g) +..... 0.50% 0.34% 0.22% 0.36% 1.12% 1.48%
Without reimbursement +............... 0.44% 0.30% 0.01% 0.09% 0.60% 1.07%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 1.26% 1.23% 1.20% 1.20% 1.20% 1.25%
Without reimbursement +............... 1.33% 1.27% 1.41% 1.47% 1.72% 1.66%
Ratio of interest expense to average net
assets +............................... 0.10% 0.32% --% --% --% --%
Portfolio turnover...................... 69% 107% 117% 56% 123% 61%
</TABLE>
- ------------------------
(f) Total returns do 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.
Total returns are not annualized for periods of less than one year.
(g) For periods ended prior to June 30, 1999 ratios may include expense
reductions.
+ Annualized for periods less than one year.
* Calculated based on average shares outstanding during the period.
See Notes to 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
-----------------------------------------------------------------------------------
MONEY MARKET FUND
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <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 $ 1.00
------------- ----------- ----------- ----------- ----------- -----------
Net investment income................. 0.02 0.05(a) 0.05(b) 0.05(c) 0.05(d) 0.03(e)
Net realized and unrealized gain on
investments.......................... -- -- -- -- -- --
------------- ----------- ----------- ----------- ----------- -----------
Net increase resulting from
operations......................... 0.02 0.05 0.05 0.05 0.05 0.03
------------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income............ (0.02) (0.05) (0.05) (0.05) (0.05) (0.03)
From net realized gain on
investments.......................... -- -- -- -- -- --
------------- ----------- ----------- ----------- ----------- -----------
Total distributions................. (0.02) (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 $ 1.00
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Total investment return (f)............. 2.04% 5.22% 4.96% 4.75% 5.26% 3.48%
------------- ----------- ----------- ----------- ----------- -----------
------------- ----------- ----------- ----------- ----------- -----------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 25,221 $ 31,588 $ 26,964 $ 19,794 $ 14,891 $ 19,474
Ratio of net investment income to
average net assets:
With reimbursement (Note 2) (g) +..... 4.07% 4.70% 4.77% 4.67% 5.15% 3.70%
Without reimbursement +............... 4.07% 4.70% 4.73% 4.57% 4.85% 3.64%
Ratio of expenses to average net assets
excluding interest expense:
With reimbursement (Note 2) (g) +..... 0.73% 0.73% 0.75% 0.75% 0.75% 0.75%
Without reimbursement +............... 0.73% 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 N/A
Portfolio turnover...................... N/A N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------------------------
VARIABLE INTERNATIONAL FUND
----------------------------------------------------------------------------------------------
JULY 5, 1994
(COMMENCEMENT
SIX MONTHS OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, ---------------------------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995 1994
------------- ------------- ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of
period............................ $ 11.87 $ 12.72 $ 11.91 $ 11.01 $ 11.25 $ 12.00
------------- ------------- ------------ ------------ ------------ ---------------
Net investment income (loss)..... 0.08* 0.10 * (a 0.15(b) 0.05(c) 0.09(d) 0.06(e)
Net realized and unrealized gain
(loss) on investments........... 0.52 (0.11) 0.68 0.89 (0.22) (0.76)
------------- ------------- ------------ ------------ ------------ ---------------
Net increase (decrease)
resulting from operations..... 0.60 (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..... $ 12.47 $ 11.87 $ 12.72 $ 11.91 $ 11.01 $ 11.25
------------- ------------- ------------ ------------ ------------ ---------------
------------- ------------- ------------ ------------ ------------ ---------------
Total investment return (f)........ 4.72% (0.64)% 6.93% 8.52% (1.14)% (5.81)%
------------- ------------- ------------ ------------ ------------ ---------------
------------- ------------- ------------ ------------ ------------ ---------------
Ratios and supplemental data:
Net assets, end of period (in
000's)............................ $ 6,239 $ 7,327 $ 5,929 $ 4,782 $ 3,663 $ 2,229
Ratio of net investment income
(loss) to average net assets:
With reimbursement (Note 2) (g)
+............................... 1.31% 1.64% 1.22% 0.48% 0.93% 3.33%
Without reimbursement +.......... 1.20% 0.56% 0.05% (0.86)% (1.35)% (2.56)%
Ratio of expenses to average net
assets excluding interest expense:
With reimbursement (Note 2) (g)
+............................... 1.25% 1.25% 1.14% 1.15% 1.25% 0.69%
Without reimbursement +.......... 1.35% 2.33% 2.31% 2.49% 3.53% 6.58%
Ratio of interest expense to
average net assets +.............. 0.07% 0.09% --% --% --% --%
Portfolio turnover................. 41% 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 returns do 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.
Total returns are not annualized for periods less than one year.
(g) For periods ended prior to June 30, 1999 ratios may include expense
reductions.
N/A Not applicable.
+ Annualized for periods less than one year.
See Notes to Financial Statements
F64
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
G.T. Global Variable Investment Series and G.T. Global Variable Investment Trust
(the "Trusts") are each organized as a Delaware business trust. 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 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 the value, including
accrued interest, is at least equal to 102% of the sales price of the repurchase
agreement.
F65
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(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 specified
identified cost basis. 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 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
F66
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
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 as of December 31, 1998.
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES IN
GT GLOBAL FUNDS CARRYFORWARD YEAR
- ------------------------------------------------------------ ------------ ----------
<S> <C> <C>
Variable Strategic Income................................... $ 190,054 2003
Variable Strategic Income................................... 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.
F67
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(N) PORTFOLIO SECURITIES LOANED
At June 30, 1999, securities with an aggregate value listed below were on loan
to brokers. The loans were secured by cash collateral received by the Fund:
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30,
JUNE 30, 1999 1999
---------------------------- --------
AGGREGATE VALUE CASH FEES
GT GLOBAL ON LOAN COLLATERAL RECEIVED
- ------------------------------------------------------------ --------------- ---------- --------
<S> <C> <C> <C>
Variable Strategic Income Fund.............................. $ 156,805 $ 164,812 $ 1,338
Variable Global Government Income Fund...................... 120,217 126,356 871
Variable U.S. Government Income Fund........................ -- -- --
Variable Latin America Fund................................. 258,758 281,961 4,958
Variable Growth & Income Fund............................... 856,774 908,593 4,046
Variable Telecommunications Fund............................ 9,512,674 9,522,340 27,673
Variable Emerging Markets Fund.............................. 167,895 174,894 727
Variable Infrastructure Fund................................ 55,681 58,835 183
Variable Natural Resources Fund............................. -- -- 53
Variable America Fund....................................... 377,775 379,662 6,824
Variable New Pacific Fund................................... 224,546 236,141 2,099
Variable Europe Fund........................................ 651,131 623,182 7,629
Money Market Fund........................................... -- -- --
Variable International Fund................................. 170,739 80,455 716
</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. Effective May 28, 1999, the above lines of credit were
superseded by the Fund's participation in a committed line of credit facility
with a syndicate administered by The Chase Manhattan Bank. The Fund may borrow
up to the lesser of (i) $975,000,000 or (ii) the limits set by its prospectus
for borrowings. The Fund and other funds managed by AIM which are parties to the
line of credit may borrow on a first come, first served basis. The funds which
are party to the line of credit are charged a commitment fee of 0.09% on the
unused balance of the committed line. The commitment fee is allocated among the
funds based on their respective average net assets for the period. On June 30,
1999, there were no outstanding loan balances.
For the six months ended June 30, 1999, the weighted average outstanding daily
balance of bank loans, the weighted average interest rate, interest expense for
loans and other interest expense are as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1999
--------------------------------------------
AVERAGE AVERAGE
OUTSTANDING DAILY
DAILY INTEREST INTEREST OTHER
GT GLOBAL BALANCE RATE EXPENSE INTEREST
- ---------------------------------------------------------------------------------- ----------- -------- -------- --------
<S> <C> <C> <C> <C>
Variable Strategic Income Fund.................................................... $ 22,099 5.69% $ 632 $16,373
Variable Global Government Income Fund............................................ -- -- -- --
Variable U.S. Government Income Fund.............................................. 11,613 5.53% 323 --
Variable Latin America Fund....................................................... 163,034 5.34% 4,377 --
Variable Growth & Income Fund..................................................... 161,453 5.49% 4,543 --
Variable Telecommunications Fund.................................................. 159,260 5.53% 4,428 --
Variable Emerging Markets Fund.................................................... 145,431 5.49% 4,015 4,580
Variable Infrastructure Fund...................................................... -- -- -- --
Variable Natural Resources Fund................................................... 112,039 5.43% 3,059
Variable America Fund............................................................. 28,757 5.65% 817 --
Variable New Pacific Fund......................................................... 323,171 5.76% 9,354 --
Variable Europe Fund.............................................................. 494,271 5.56% 13,828 238
Money Market Fund................................................................. -- -- -- --
Variable International Fund....................................................... 78,050 5.47% 2,118 --
</TABLE>
F68
<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 for the 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 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. INVESCO Asia Ltd. is the investment sub-advisor for GT Global Variable New
Pacific Fund.
The Money Market Fund pays the Manager an investment management 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 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 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, Inc., is the principal underwriter of the Variable Annuity Contracts.
Underwriter commissions of $32,344 were retained by GT Global for the period
year ended June 30, 1999.
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 manager,
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.
F69
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund, for the six months ended June 30, 1999:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $4,696,219 $ 17,088,622
Variable Global Government Income Fund...................... 3,187,041 553,327
Variable U.S. Government Income Fund........................ 800,615 --
Variable Latin America Fund................................. -- 2,300,583
Variable Growth & Income Fund............................... 7,594,120 8,684,836
Variable Telecommunications Fund............................ -- 55,928,140
Variable Emerging Markets Fund.............................. 1,196,030 5,413,725
Variable Infrastructure Fund................................ -- 801,756
Variable Natural Resources Fund............................. -- 5,501,164
Variable America Fund....................................... -- 41,926,910
Variable New Pacific Fund................................... -- 14,425,584
Variable Europe Fund........................................ -- 17,655,379
Money Market Fund........................................... -- --
Variable International Fund................................. -- 1,961,315
</TABLE>
<TABLE>
<CAPTION>
SALES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $6,305,768 $ 19,104,193
Variable Global Government Income Fund...................... 2,737,865 2,374,470
Variable U.S. Government Income Fund........................ 2,160,093 --
Variable Latin America Fund................................. -- 3,263,711
Variable Growth & Income Fund............................... 8,610,787 14,917,671
Variable Telecommunications Fund............................ -- 63,781,869
Variable Emerging Markets Fund.............................. 3,238,808 2,534,347
Variable Infrastructure Fund................................ -- 2,064,456
Variable Natural Resources Fund............................. -- 6,029,063
Variable America Fund....................................... -- 49,180,644
Variable New Pacific Fund................................... -- 16,019,795
Variable Europe Fund........................................ -- 28,391,985
Money Market Fund........................................... -- --
Variable International Fund................................. -- 2,366,256
</TABLE>
F70
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
4. CAPITAL SHARES
At June 30, 1999, 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>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, 1998
------------------------------- --------------------------------
GT GLOBAL VARIABLE STRATEGIC INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 635,561 $ 7,555,842 1,816,625 $ 23,767,440
Shares issued in connection with reinvestment of
distributions............................................. 58,199 700,910 136,638 1,758,665
-------------- --------------- --------------- ---------------
695,760 8,256,752 1,953,263 25,526,105
Shares repurchased.......................................... (1,051,143) (12,563,008) (2,303,971) (30,081,222)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (357,383) $ (4,306,256) (350,708) $ (4,555,117)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 542,193 $ 6,389,607 1,715,212 $ 20,223,251
Shares issued in connection with reinvestment of
distributions............................................. 9,997 115,643 41,526 475,583
-------------- --------------- --------------- ---------------
552,190 6,505,250 1,756,738 20,698,834
Shares repurchased.......................................... (709,811) (8,288,952) (1,756,512) (20,697,844)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (157,621) $ (1,783,702) 226 $ 990
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 146,457 $ 1,739,591 1,208,175 $ 14,490,714
Shares issued in connection with reinvestment of
distributions............................................. 15,244 179,356 31,559 375,753
-------------- --------------- --------------- ---------------
161,701 1,918,947 1,239,734 14,866,467
Shares repurchased.......................................... (271,347) (3,190,104) (1,259,952) (15,145,687)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (109,646) $ (1,271,157) (20,218) $ (279,220)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE LATIN AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 657,736 $ 7,606,524 1,541,263 $ 18,118,194
Shares issued in connection with reinvestment of
distributions............................................. -- -- 34,214 451,963
-------------- --------------- --------------- ---------------
657,736 7,606,524 1,575,477 18,570,157
Shares repurchased.......................................... (740,096) (8,178,790) (2,239,082) (28,159,725)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (82,360) $ (572,266) (663,605) $ (9,589,568)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GROWTH & INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,890,230 $ 39,899,313 3,937,752 $ 80,249,994
Shares issued in connection with reinvestment of
distributions............................................. 22,239 467,607 90,392 1,853,175
-------------- --------------- --------------- ---------------
1,912,469 40,366,920 4,028,144 82,103,169
Shares repurchased.......................................... (2,164,204) (45,779,836) (4,150,799) (84,657,906)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (251,735) $ (5,412,916) (122,655) $ (2,554,737)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,927,792 $ 44,168,384 2,494,268 $ 49,416,214
Shares issued in connection with reinvestment of
distributions............................................. -- -- 293,286 5,760,403
-------------- --------------- --------------- ---------------
1,927,792 44,168,384 2,787,554 55,176,617
Shares repurchased.......................................... (2,436,028) (55,190,930) (3,130,421) (61,528,494)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (508,236) $ (11,022,546) (342,867) $ (6,351,877)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EMERGING MARKETS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 5,502,769 $ 43,197,539 3,892,065 $ 34,837,323
Shares issued in connection with reinvestment of
distributions............................................. -- -- 93,799 836,683
-------------- --------------- --------------- ---------------
5,502,769 43,197,539 3,985,864 35,674,006
Shares repurchased.......................................... (5,241,588) (41,129,032) (4,568,030) (41,673,104)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 261,181 $ 2,068,507 (582,166) $ (5,999,098)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F71
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, 1998
------------------------------- --------------------------------
GT GLOBAL VARIABLE INFRASTRUCTURE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 43,588 $ 767,818 105,509 $ 1,796,719
Shares issued in connection with reinvestment of
distributions............................................. -- -- 4,325 76,385
-------------- --------------- --------------- ---------------
43,588 767,818 109,834 1,873,104
Shares repurchased.......................................... (115,222) (2,016,754) (277,458) (4,691,541)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (71,634) $ (1,248,936) (167,624) $ (2,818,437)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 765,955 $ 9,165,810 922,163 $ 16,227,734
Shares issued in connection with reinvestment of
distributions............................................. -- -- 153,430 1,999,188
-------------- --------------- --------------- ---------------
765,955 9,165,810 1,075,593 18,226,922
Shares repurchased.......................................... (757,531) (8,997,542) (1,316,239) (21,972,187)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 8,424 $ 168,268 (240,646) $ (3,745,265)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,342,443 $ 28,817,014 3,186,300 $ 64,281,189
Shares issued in connection with reinvestment of
distributions............................................. -- -- 307,353 6,036,408
-------------- --------------- --------------- ---------------
1,342,448 28,817,014 3,493,653 70,317,597
Shares repurchased.......................................... (1,730,415) (36,949,264) (3,495,956) (70,230,812)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (387,972) $ (8,132,250) (2,303) $ 86,785
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NEW PACIFIC FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 22,532,519 $ 205,795,744 20,013,836 $ 173,702,796
Shares issued in connection with reinvestment of
distributions............................................. -- -- 42,293 351,881
-------------- --------------- --------------- ---------------
22,532,519 205,795,744 20,056,129 174,054,677
Shares repurchased.......................................... (21,084,476) (192,730,303) (20,363,468) (178,627,344)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 1,448,043 $ 13,065,441 (307,339) $ (4,572,667)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EUROPE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 8,895,313 $ 202,242,623 14,680,383 $ 350,325,948
Shares issued in connection with reinvestment of
distributions............................................. -- -- 158,305 3,979,783
-------------- --------------- --------------- ---------------
8,895,313 202,242,623 14,838,688 354,305,731
Shares repurchased (8,976,218) (205,318,620) (14,656,866) (353,100,071)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (80,905) $ (3,075,997) 181,822 $ 1,205,660
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL MONEY MARKET FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 518,454,461 $ 518,454,461 725,552,665 $ 725,552,665
Shares issued in connection with reinvestment of
distributions............................................. 820,051 820,051 1,623,136 1,623,136
-------------- --------------- --------------- ---------------
519,274,512 519,274,512 727,175,801 727,175,801
Shares repurchased.......................................... (525,640,797) (525,640,797) (722,552,277) (722,552,277)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (6,366,285) $ (6,366,285) 4,623,524 $ 4,623,524
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE INTERNATIONAL FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 2,747,042 $ 33,541,834 6,352,235 $ 78,872,062
Shares issued in connection with reinvestment of
distributions............................................. -- -- 40,537 528,201
-------------- --------------- --------------- ---------------
2,747,042 33,541,834 6,392,772 79,400,263
Shares repurchased.......................................... (2,864,059) (34,956,817) (6,241,572) (78,024,723)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (117,017) $ (1,414,983) 151,200 $ 1,375,540
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F72
<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>
SIX MONTHS ENDED
GT GLOBAL JUNE 30, 1999
- ------------------------------------------------------------ -----------------
<S> <C>
Variable Strategic Income Fund.............................. $ 501
Variable Global Government Income Fund...................... --
Variable U.S. Government Income Fund........................ 14
Variable Latin America Fund................................. 128
Variable Growth & Income Fund............................... 2,538
Variable Telecommunications Fund............................ 632
Variable Emerging Markets Fund.............................. --
Variable Infrastructure Fund................................ 369
Variable Natural Resources Fund............................. 264
Variable America Fund....................................... --
Variable New Pacific Fund................................... 40,674
Variable Europe Fund........................................ 2,248
Variable Money Market Fund.................................. --
Variable International Fund................................. 153
</TABLE>
The Funds received reductions in custodian fees under an expense offset
arrangement. The Funds' expenses were reduced as follows under the arrangement.
<TABLE>
<S> <C>
Variable Strategic Income Fund.............................. --
Variable Global Government Income Fund...................... 20
Variable U.S. Government Income Fund........................ --
Variable Latin America Fund................................. --
Variable Growth & Income Fund............................... 203
Variable Telecommunications Fund............................ 1,435
Variable Emerging Markets Fund.............................. 740
Variable Infrastructure Fund................................ 22
Variable Natural Resources Fund............................. --
Variable America Fund....................................... 847
Variable New Pacific Fund................................... 630
Variable Europe Fund........................................ --
Variable Money Market Fund.................................. 1,065
Variable International Fund................................. 23
</TABLE>
6. INTEREST RATE SWAP AGREEMENTS
The following are open interest rate swap agreements on June 30, 1999 for
Variable Strategic Income Fund:
<TABLE>
<CAPTION>
NET UNREALIZED
EXPIRATION NOTIONAL AMOUNT APPRECIATION/
DESCRIPTION OF AGREEMENT DATE FUND/COUNTERPARTY (DEPRECIATION)
- ------------------------------------------------------------ ----------------- ----------------- -----------------
<S> <C> <C> <C>
Agreement with Citibank N.A. dated 4/27/99 to pay the 4/25/00 2,801,100 MXN ($4,158)
notional amount multiplied by 24.00% and to receive the Citibank N.A.
notional amount multiplied by 22.10% at initiation of the
swap contract. The receive amount is to equal the notional
amount multiplied by the 28-day "TIIE"-Tasa de interas
interbancaria de Equilibrio on subsequent monthly reset
dates.
</TABLE>
F73
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
7. SUBSEQUENT EVENT
The Board of Trustees of GT Global Variable Investment Series and GT Global
Variable Investment Trust (collectively the "GT Funds") and AIM Variable
Insurance Funds, Inc. ("AVIF") unanimously approved on June 15, 1999, various
Agreements and Plans of reorganization (the "Agreements") in that AVIF would
acquire all of the assets and assume all of the liabilities of the following
investment portfolios of the GT Funds in exchange for shares of certain
investment portfolios of AVIF, as indicated (the "AVIF funds"):
<TABLE>
<CAPTION>
GT FUNDS AVIF FUNDS
- -------------------------------------------- --------------------------------------------
<S> <C>
GT Global Variable Growth & Income Fund AIM V.I. Global Growth and Income Fund
GT Global Variable America Fund AIM V.I. Capital Appreciation Fund
GT Global Variable International Fund AIM V.I. International Equity Fund
GT Global Variable Europe Fund
GT Global Variable Natural Resources Fund
GT Global Variable Infrastructure Fund
GT Global Variable New Pacific Fund
GT Global Variable Latin America Fund
GT Global Variable Emerging Markets Fund
GT Global Variable Telecommunications Fund AIM V.I. Telecommunications Fund
GT Global Variable Strategic Fund AIM V.I. Diversified Income Fund
GT Global Variable Global Government Income
Fund
GT Global Variable U.S. Government Fund AIM V.I. Government Securities Fund
GT Global Money Market Fund AIM V.I. Money Market Fund
</TABLE>
Shareholders approved the Agreements at a Special Meeting of Shareholders held
on August 25, 1999. Consummation of the Agreements is expected to occur in
October, 1999.
F74
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
