As filed with the Securities and Exchange Commission on February 26, 1998.
File No. 811-8454
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER THE INVESTMENT COMPANY ACT OF 1940
----
Amendment No. 5 / X /
GLOBAL INVESTMENT PORTFOLIO
(Exact Name of Registrant as Specified in Charter)
50 California Street, 27th Floor
San Francisco, California 94111
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: 415-392-6181
Michael A. Silver, Esq.
Assistant General Counsel
Chancellor LGT Asset Management, Inc.
50 California Street, 27th Floor
San Francisco, California 94111
(Name and Address of Agent for Service)
<PAGE>
EXPLANATORY NOTE
This Amendment to the Registration Statement of Global Investment
Portfolio has been filed by the Registrant pursuant to Section 8(b) of the
Investment Company Act of 1940, as amended (the "1940 Act"). However, beneficial
interests in the Registrant have not been registered under the Securities Act of
1933, as amended (the "1933 Act"), since such interests are offered solely in
private placement transactions that do not involve any "public offering" within
the meaning of Section 4(2) of the 1933 Act. Investments in the Registrant may
only be made by investment companies, insurance company separate accounts,
common or commingled trust funds or similar organizations or entities which are
"accredited investors" as defined in Regulation D under the 1933 Act. This
Amendment to the Registration Statement does not constitute an offer to sell, or
the solicitation of an offer to buy, any beneficial interests in the Registrant.
<PAGE>
GLOBAL INVESTMENT PORTFOLIO
CONTENTS OF REGISTRATION STATEMENT
This registration statement of Global Investment Portfolio contains the
following documents:
Facing Sheet
Contents of Registration Statement
Part A
Part B
Part C
Signature Page
Exhibits
<PAGE>
PART A
Responses to Items 1 through 3 and 5A have been omitted pursuant to
paragraph 4 of Instruction F of the General Instructions to Form N-1A.
Responses to certain Items required to be included in Part A of this
Registration Statement are incorporated herein by reference from Post-Effective
Amendment No. 52 to the Registration Statement of G.T. Investment Funds, Inc.
("GT Investment Funds") (1940 Act File No. 811-5426), as filed with the
Securities and Exchange Commission ("SEC") on January 30, 1998 ("Feeder
Registration Statement"). Part A of the Feeder Registration Statement includes
the joint prospectus of the GT Global Theme Funds ("Feeder's Part A").
Item 4. General Description Of Registrant.
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Global Investment Portfolio ("Master Portfolio") is a diversified,
open-end management investment company which was organized as a New York common
law trust pursuant to a Declaration of Trust dated as of January 11, 1994.
Beneficial interests in the Master Portfolio are divided currently into
four separate subtrusts or "series"--Global Financial Services Portfolio
("Financial Services Portfolio"), Global Infrastructure Portfolio
("Infrastructure Portfolio"), Global Natural Resources Portfolio ("Natural
Resources Portfolio") and Global Consumer Products and Services Portfolio
("Consumer Products Portfolio") (individually, "Portfolio," collectively,
"Portfolios") -- each having a distinct investment objective and distinct
investment policies and limitations. The Financial Services Portfolio,
Infrastructure Portfolio and Natural Resources Portfolio commenced operations on
May 31, 1994. The Consumer Products Portfolio commenced operations on December
30, 1994. Additional subtrusts to the Master Portfolio may be organized at a
later date. The assets of each Portfolio belong only to that Portfolio, and the
liabilities of each Portfolio are borne solely by that Portfolio and no other.
Beneficial interests in the Portfolios are offered solely in private
placement transactions which do not involve any "public offering" within the
meaning of Section 4(2) of the 1933 Act. Investments in the Portfolios may only
be made by investment companies, insurance company separate accounts, common or
commingled trust funds or similar organizations or entities which are
"accredited investors" as defined in Regulation D under the 1933 Act. The
Registration Statement does not constitute an offer to sell, or the solicitation
of an offer to buy, any "security" within the meaning of the 1933 Act.
Each Portfolio's investment manager and administrator is Chancellor LGT
Asset Management, Inc. ("Chancellor LGT"). Chancellor LGT and its worldwide
<PAGE>
affiliates are part of Liechtenstein Global Trust, a provider of global asset
management and private banking products and services to individual and
institutional investors.
Information on the Portfolios' investment objectives, the kinds of
securities in which the Portfolios principally invest, other investment
practices of the Portfolios and the risk factors associated with investments in
the Portfolios are incorporated herein by reference from the sections entitled
"Investment Objectives and Policies" and "Risk Factors" in the Feeder's Part A.
Additional investment techniques, features and limitations concerning the
Portfolios' investment program are described in Part B of this Registration
Statement.
Item 5. Management Of The Master Portfolio.
- -------------------------------------------
A description of how the business of the Portfolios is managed is
incorporated herein by reference from the section entitled "Management" in the
Feeder's Part A. The following list identifies the specific sections of the
Feeder's Part A under which the information required by Item 5 of Form N-1A may
be found; each listed section is incorporated herein by reference.
- --------------------------------------------------------------------------------
Item 5(a) Management
- --------------------------------------------------------------------------------
Item 5(b) Management--Investment Management and Administration
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Item 5(c) Management
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Item 5(d) Management
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Item 5(e) Other Information--Transfer Agent
- --------------------------------------------------------------------------------
Item 5(f) Management; Prospectus Summary
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Item 5(g) Management
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Item 6. Capital Stock And Other Securities.
- -------------------------------------------
The Master Portfolio is organized as a New York common law trust. Under
the Declaration of Trust, the Trustees are authorized to issue beneficial
interests in separate subtrusts or "series" of the Master Portfolio. The Master
Portfolio currently has four series (i.e., the Portfolios). The Master Portfolio
reserves the right to create and issue additional series. Each investor in a
Portfolio is entitled to participate equally in the Portfolio's earnings and
assets and to vote in proportion to the amount of its investment in the
Portfolio. Investments in a Portfolio may not be transferred, but an investor
may withdraw all or any portion of its investment at any time at net asset
value. Each investor in a Portfolio (e.g., investment companies and common and
commingled trust funds) will be liable for all obligations of that Portfolio,
but not of the other Portfolios. However, because a Portfolio will indemnify
each investor therein with respect to any liability to which the investor may
become subject by reason of being such an investor, the risk of an investor in a
A-2
<PAGE>
Portfolio incurring financial loss on account of such liability would be limited
to circumstances in which that Portfolio had inadequate insurance and was unable
to meet its obligations (including indemnification obligations) out of its
assets.
As of the date of this Registration Statement, GT Investment Funds owns a
majority interest in the Master Portfolio and each Portfolio. However, GT
Investment Funds has undertaken that, with respect to most matters on which the
Master Portfolio seeks a vote of its interestholders, GT Investment Funds will
seek a vote of its shareholders and will vote its interest in the Master
Portfolio in accordance with their instructions.
Investments in a Portfolio have no preemptive or conversion rights. The
Master Portfolio is not required to hold annual meetings of investors but the
Master Portfolio will hold special meetings of investors when in the judgment of
the Trustees it is necessary or desirable to submit matters for an investor
vote. Investors have the right to communicate with other investors to the extent
provided in Section 16(c) of the 1940 Act in connection with requesting a
meeting of investors for the purpose of removing one or more Trustees, which
removal requires a two-thirds vote of the Master Portfolio's beneficial
interests. Investors also have under certain circumstances the right to remove
one or more Trustees without a meeting. Upon liquidation of a Portfolio,
investors would be entitled to share PRO rata in that Portfolio's net assets
available for distribution to investors.
Each Portfolio annually declares as a dividend all of its net investment
income, if any, which includes dividends, accrued interest and earned discount
(including both original issue and market discounts) less applicable expenses.
Each Portfolio also annually distributes substantially all of its realized net
short-term capital gain (the excess of short-term capital gains over short-term
capital losses), net capital gain (the excess of net long-term capital gain over
net short-term capital loss) and net gains from foreign currency transactions,
if any. Each Portfolio may make an additional dividend or other distribution if
necessary to avoid a 4% excise tax on certain undistributed income and gain.
Under the current method of the Portfolios' operation they are not subject
to any income tax. However, each investor in a Portfolio is taxable on its share
(as determined in accordance with the governing instruments of the Master
Portfolio and the Internal Revenue Code of 1986, as amended ("Code") and the
regulations promulgated thereunder) of that Portfolio's income, gains, losses,
deductions, and credits in determining its income tax liability. The
determination of such share will be made in accordance with the Code and the
regulations promulgated thereunder. It is intended that each Portfolio's assets,
income, and distributions will be managed in such a way that an investor in a
Portfolio will be able to satisfy the requirements of Subchapter M of the Code,
assuming that the investor invested all of its assets in the Portfolio. See Part
B for a discussion of the foregoing tax matters and certain other matters.
Investor inquiries may be directed to Chancellor LGT at the following
address: 50 California Street, 27th Floor, San Francisco, CA 94111.
A-3
<PAGE>
Item 7. Purchase Of Securities.
- -------------------------------
Beneficial interests in each Portfolio are issued solely in private
placement transactions that do not involve any "public offering" within the
meaning of Section 4(2) of the 1933 Act. See "General Description of Registrant"
above.
An investment in a Portfolio may be made without a sales load at the net
asset value next determined after an order is received in "good order" by a
Portfolio. There is no minimum initial or subsequent investment in a Portfolio.
However, investments must be made in federal funds (i.e., monies credited to the
account of a Portfolio's custodian bank by a Federal Reserve Bank). Each
investor in a Portfolio may add to or reduce its investment in the Portfolio on
each day the New York Stock Exchange ("NYSE") is open for trading.
Information on the time and method of valuation of the Portfolios' assets
is incorporated by reference from the section entitled "Calculation of Net Asset
Value" in the Feeder's Part A.
Each Portfolio reserves the right to cease accepting investments at any
time or to reject any investment order.
Item 8. Redemption Or Repurchase.
- ---------------------------------
An investor in a Portfolio may reduce any portion or all of its investment
at any time at the net asset value next determined after a request in "good
order" is furnished by the investor to that Portfolio. The proceeds of a
reduction will be paid by a Portfolio in federal funds normally on the next
business day after the reduction is effected, but in any event within seven
days. Investments in a Portfolio may not be transferred.
The right of any investor to receive payment with respect to any reduction
may be suspended or the payment of the proceeds therefrom postponed during any
period (1) when the NYSE is closed (other than customary weekend or holiday
closings) or trading on the NYSE is restricted as determined by the SEC, (2)
when an emergency exists, as defined by the SEC, which would prohibit a
Portfolio in disposing of its portfolio securities or in fairly determining the
value of its assets, or (3) as the SEC may otherwise permit.
Item 9. Pending Legal Proceedings.
- ----------------------------------
Not applicable.
A-4
<PAGE>
GLOBAL INVESTMENT PORTFOLIO
PART B
Part B of this Registration Statement should be read only in conjunction
with Part A. Capitalized terms used in Part B and not otherwise defined have the
meanings given them in Part A of this Registration Statement.
Responses to certain Items required to be included in Part B of this
Registration Statement are incorporated herein by reference from the Feeder
Registration Statement. Part B of the Feeder Registration Statement includes the
joint statement of additional information of the GT Global Theme Funds
("Feeder's Part B").
Item 10. Cover Page.
- --------------------
Not applicable.
Item 11. Table Of Contents.
- ---------------------------
Page
General Information and History.....................................B-1
Investment Objectives and Policies..................................B-1
Management of the Master Portfolio..................................B-2
Control Persons and Principal Holders of Interests..................B-3
Investment Advisory and Other Services..............................B-3
Brokerage Allocation and Other Practices............................B-4
Capital Stock and Other Securities..................................B-5
Purchase, Redemption and Pricing of Securities......................B-6
Tax Status..........................................................B-7
Underwriters........................................................B-7
Calculation of Performance Data.....................................B-7
Financial Statements................................................B-7
Item 12. General Information And History.
- -----------------------------------------
Not applicable.
Item 13. Investment Objectives And Policies.
- --------------------------------------------
Part A contains basic information about the investment objectives,
policies and limitations of Financial Services Portfolio, Infrastructure
Portfolio, Natural Resources Portfolio and Consumer Products Portfolio, each a
subtrust or "series" of Master Portfolio. This Part B supplements the discussion
in Part A of the investment objectives, policies and limitations of the
Portfolios.
B-1
<PAGE>
Information on the fundamental investment limitations and the
non-fundamental investment policies and limitations of the Portfolios, the types
of securities bought and investment techniques used by the Portfolios, and
certain risks attendant thereto, as well as other information on the Portfolios'
investment programs, is incorporated by reference from the sections entitled
"Investment Objectives and Policies," "Options, Futures and Currency
Strategies," "Risk Factors," "Investment Limitations" and "Execution of
Portfolio Transactions" in the Feeder's Part B.
Item 14. Management Of The Master Portfolio.
- --------------------------------------------
Information about the Trustees and officers of the Master Portfolio, and
their roles in management of the Portfolios and other GT Global Funds, is
incorporated herein by reference from the section entitled "Directors and
Executive Officers" in the Feeder's Part B.
The Board of Trustees has a Nominating and Audit Committee, composed of
Ms. Quigley and Messrs. Anderson, Bayley and Patterson, which is responsible for
nominating persons to serve as Trustees, reviewing audits of the Master
Portfolio and its Portfolios and recommending firms to serve as independent
auditors of the Master Portfolio. Each of the Trustees and officers of the
Master Portfolio is also a Director and officer of G.T. Investment Funds, Inc.,
GT Global Floating Rate Fund, Inc. and G.T. Investment Portfolios, Inc. and a
Trustee and officer of G.T. Global Growth Series, G.T. Global Eastern Europe
Fund, GT Global Series Trust, G.T. Global Variable Investment Trust, G.T. Global
Variable Investment Series, Growth Portfolio, Floating Rate Portfolio and Global
High Income Portfolio, which also are registered investment companies managed by
Chancellor LGT. Each Director or Trustee and officer serves in total as a
Director or Trustee and officer, respectively, of 12 registered investment
companies with 43 series managed or administered by Chancellor LGT.
The Master Portfolio pays each Trustee who is not a director, officer or
employee of Chancellor LGT or any affiliated company an annual fee of $500 a
year, plus $450 for each meeting of the Board attended, and is reimbursed travel
and other expenses incurred in connection with attending Board meetings. Other
Trustees and officers receive no compensation or expense reimbursement from the
Master Portfolio. For the fiscal year ended October 31, 1997, the Global
Financial Services Portfolio, Global Infrastructure Portfolio, Global Natural
Resources Portfolio and the Global Consumer Products and Services Portfolio each
paid Mr. Anderson, Mr. Bayley, Mr. Patterson and Ms. Quigley Trustees' fees and
expense reimbursements of $5,783.40, $5,783.20, $5,783.40, and 0 each. For the
fiscal year ended October 31, 1997, Mr. Anderson, Mr. Bayley, Mr. Patterson and
Ms. Quigley, who are not directors, officers or employees of Chancellor LGT or
any affiliated company, each received total compensation of $117,303.66,
$114,386.18, $88,350 and $111,687.50 respectively, from the investment companies
managed or administered by Chancellor LGT for which he or she serves as a
Director or Trustee. Fees and expenses disbursed to the Trustees contained no
accrued or payable pension, or retirement benefits.
As of the date of this filing, the officers and Trustees and their
families as a group owned in the aggregate beneficially or of record less than
1% of the outstanding interests of each Portfolio.
B-2
<PAGE>
Item 15. Control Persons And Principal Holders Of Beneficial Interests.
- -----------------------------------------------------------------------
As of the date of this filing, GT Global Financial Services Fund, GT
Global Natural Resources Fund, GT Global Infrastructure Fund and GT Global
Consumer Products and Services Fund (each a "Fund," collectively, "Funds") owned
99.9%, 99.9%, 99.9% and 99.9% of the value of the outstanding beneficial
interests in Financial Services Portfolio, Natural Resources Portfolio,
Infrastructure Portfolio and Consumer Products Portfolio, respectively. Because
currently each Fund controls its corresponding Portfolio, each Fund may take
actions affecting its corresponding Portfolio without the approval of any other
investor.
Each Fund has informed its corresponding Portfolio that whenever a Fund is
requested to vote on any proposal of its corresponding Portfolio, it will hold a
meeting of shareholders and will cast its vote as instructed by its
shareholders. It is anticipated that other investors in each Portfolio will
follow the same or a similar practice.
Item 16. Investment Advisory And Other Services.
- ------------------------------------------------
Information on the investment management and other services provided for
or on behalf of the Portfolios is incorporated herein by reference from the
sections entitled "Management," "Directors and Executive Officers" and
"Additional Information" in the Feeder's Part B. The following list identifies
the specific sections in the Feeder's Part B under which the information
required by Item 16 of Form N-1A may be found; each section is incorporated
herein by reference.
B-3
<PAGE>
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Item 16(a) Management; Additional Information
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Item 16(b) Management
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Item 16(c) Not applicable
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Item 16(d) Management
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Item 16(e) Not applicable
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Item 16(f) Not applicable
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Item 16(g) Not applicable
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Item 16(h) Additional Information
- --------------------------------------------------------------------------------
Item 16(i) Not applicable
- --------------------------------------------------------------------------------
For the fiscal years ended October 31, 1995, 1996, and 1997, the Financial
Services Portfolio, Infrastructure Portfolio and Natural Resources Portfolio
paid investment management and administration fees to Chancellor LGT in the
amounts of $51,353, $601,421 and $213,856; $99,991, $635,456 and $425,745, and
$346,965, $772,727 and $979,215, respectively. For the fiscal period December
30, 1994 (commencement of operations) to October 31, 1995, and for the fiscal
year ended October 31, 1996 and 1997, the Consumer Products Portfolio paid
investment management and administration fees to Chancellor LGT in the amounts
of $16,284, $422,640 and $1,207,854, respectively.
For the fiscal years ended October 31, 1995, 1996, and 1997, Chancellor
LGT reimbursed the Financial Services Portfolio, Infrastructure Portfolio and
Natural Resources Portfolio for their respective investment management and
administration fees in the amounts of $51,353, $601,421 and $213,856; $99,991,
$0 and $0, and $0, $0 and $0, respectively. For the fiscal period December 30,
1994 (commencement of operations) to October 31, 1995, and for the fiscal year
ended October 31, 1996 and 1997, Chancellor LGT reimbursed the Consumer Products
Portfolio for investment management and administration fees in the amounts of
$16,284, $0 and $0, respectively. All expense reimbursements, if any, are made
at the Fund level.
Item 17. Brokerage Allocation And Other Practices.
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A description of the Portfolios' brokerage allocation and other practices
is incorporated herein by reference from the section entitled "Execution of
Portfolio Transactions" in the Feeder's Part B.
B-4
<PAGE>
Item 18. Capital Stock And Other Securities.
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Under the Declaration of Trust, the Trustees are authorized to issue
beneficial interests in each Portfolio. An investor in a Portfolio is entitled
to participate PRO RATA in distributions of the Portfolio's income and gains and
to be allocated a PRO RATA share of the Portfolio's income, gains, losses,
deductions, and credits. Upon liquidation or dissolution of a Portfolio,
investors are entitled to share PRO RATA in that Portfolio's net assets
available for distribution to its investors. Investments in a Portfolio have no
preference, preemptive, conversion or similar rights.
Investments in each Portfolio may not be transferred.
Each investor in a Portfolio is entitled to vote in proportion to the
amount of its investment in that Portfolio. Investors in the Portfolios will all
vote together in certain circumstances (e.g., election of the Trustees and
auditors, and as required by the 1940 Act and the rules thereunder). Investors
in a Portfolio do not have cumulative voting rights, and investors holding more
than 50% of the aggregate beneficial interest in the Master Portfolio or in a
Portfolio, as the case may be, may control the outcome of these votes. The
Master Portfolio is not required to hold annual meetings of investors but the
Master Portfolio will hold special meetings of investors when (1) a majority of
the Trustees determines to do so; or (2) investors holding at least 10% of the
interests in the Master Portfolio (or a Portfolio) request in writing a meeting
of investors in the Master Portfolio (or Portfolio). No material amendment may
be made to the Master Portfolio's Declaration of Trust without the affirmative
majority vote of investors (with the vote of each being in proportion to the
amount of its investment).
The Master Portfolio may enter into a merger or consolidation, or sell all
or substantially all of its (or a Portfolio's) assets, if approved by the vote
of two-thirds of the beneficial interests in the Master Portfolio (or in the
Portfolio affected by such action, as the case may be) with the vote of each
interestholder being in proportion to the amount of its investment, except that
if the Trustees recommend such sale of assets, the approval by vote of a
majority of the beneficial interests in the Master Portfolio (or in the
Portfolio affected by such action, as the case may be) with the vote of each
interestholder being in proportion to the amount of their investment, will be
sufficient. A Portfolio may also be terminated (i) upon liquidation and
distribution of its assets, if approved by the vote of two-thirds of the
beneficial interests in such Portfolio (with the vote of each being in
proportion to the amount of their investment), or (ii) by the Trustees by
written notice to its investors.
The Master Portfolio is organized as a New York common law trust.
Investors in each Portfolio will be held personally liable for its obligations
and liabilities, subject, however, to indemnification by that Portfolio in the
event that there is imposed upon an investor a greater portion of the
liabilities and obligations of that Portfolio than its proportionate beneficial
interest in such Portfolio. The Declaration of Trust also provides that each
Portfolio shall maintain appropriate insurance (for example, fidelity bonding
and errors and omissions insurance) covering certain kinds of potential
liabilities. Thus, the risk of an investor incurring financial loss on account
B-5
<PAGE>
of investor liability is limited to circumstances in which both inadequate
insurance existed and the investor's Portfolio itself was unable to meet its
obligations.
The Declaration of Trust further provides that obligations of each
Portfolio are not binding upon the Trustees individually but only upon the
property of that Portfolio and that the Trustees will not be liable for any
action or failure to act, but nothing in the Declaration of Trust protects a
Trustee against any liability to which he would otherwise be subject by reason
of willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his or her office. The Declaration of Trust
provides that the Trustees and officers will be indemnified by the Master
Portfolio against liabilities and expenses incurred in connection with
litigation in which they may be involved because of their offices with the
Master Portfolio, unless, as to liability to the Master Portfolio or its
investors, it is finally adjudicated that they engaged in willful misfeasance,
bad faith, gross negligence or reckless disregard of the duties involved in
their offices, or unless with respect to any other matter it is finally
adjudicated that they did not act in good faith in the reasonable belief that
their actions were in the best interests of the Master Portfolio. In the case of
settlement, such indemnification will not be provided unless it has been
determined by a court or other body approving the settlement or other
disposition, or by a reasonable determination, based upon a review of readily
available facts, by vote of a majority of disinterested Trustees or in a written
opinion of independent counsel, that such officers or Trustees have not engaged
in willful misfeasance, bad faith, gross negligence or reckless disregard of
their duties.
Item 19. Purchase, Redemption And Pricing Of Securities.
- --------------------------------------------------------
Beneficial interests in each Portfolio are issued solely in private
placement transactions which do not involve any "public offering" within the
meaning of Section 4(2) of the Securities Act of 1933, as amended.
Information on the method followed by the Portfolios in determining their
net asset value and the timing of such determination is incorporated by
reference from the section entitled "Valuation of Fund Shares" in the Feeder's
Part B. See also Items 7 and 8 in Part A.
Each Portfolio reserves the right, if conditions exist which make cash
payments undesirable, to honor any request for redemption or repurchase order by
making payment in whole or in part in readily marketable securities chosen by
that Portfolio and valued as they are for purposes of computing the Portfolio's
net asset value (a redemption in kind). If payment is made in securities, an
investor may incur transaction expenses in converting these securities into
cash. Each Portfolio has elected, however, to be governed by Rule 18f-1 under
the 1940 Act as a result of which each Portfolio is obligated to redeem
beneficial interests with respect to any one investor during any 90 day period,
solely in cash up to the lesser of $250,000 or 1% of the net asset value of that
Portfolio at the beginning of the period.
Each investor in a Portfolio may add to or reduce its investment in that
Portfolio on each day that the NYSE is open for trading. At the close of
B-6
<PAGE>
trading, on each such day, the value of each investor's interest in a Portfolio
will be determined by multiplying the net asset value of such Portfolio by the
percentage representing that investor's share of the aggregate beneficial
interests in that Portfolio. Any additions or reductions which are to be
effected on that day will then be effected. The investor's percentage of the
aggregate beneficial interests in a Portfolio will then be recomputed as the
percentage equal to the fraction (i) the numerator of which is the value of such
investor's investment in the Portfolio as of the close of trading on such day
plus or minus, as the case may be, the amount of net additions to or reductions
in the investor's investment in that Portfolio effected on such day, and (ii)
the denominator of which is the aggregate net asset value of the Portfolio as of
the close of trading on such day plus or minus, as the case may be, the amount
of the net additions to or reductions in the aggregate investments in that
Portfolio by all investors in that Portfolio. The percentage so determined will
then be applied to determine the value of the investor's interest in that
Portfolio as of the close of trading on the following day the NYSE is open for
trading.
Item 20. Tax Status.
- --------------------
Information on the taxation of the Portfolios is incorporated by reference
from the section entitled "Taxes" in the Feeder's Part B.
Item 21. Underwriters.
- ----------------------
Not applicable.
Item 22. Calculation Of Performance Data.
- -----------------------------------------
Not applicable.
Item 23. Financial Statements.
- ------------------------------
The audited financial statements of the Financial Services Portfolio, the
Infrastructure Portfolio, the Natural Resources Portfolio and the Consumer
Products Portfolio for the fiscal year ended October 31, 1997, are included
herein, in reliance on the report of Coopers & Lybrand L.L.P., independent
auditors, given on the authority of said firm as experts in auditing and
accounting.
B-7
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
ANNUAL REPORT
To the Shareholders and Board of Trustees of Global Consumer Products and
Services Portfolio, Global Financial Services Portfolio, Global Infrastructure
Portfolio, Global Natural Resources Portfolio:
We have audited the accompanying statements of assets and liabilities of Global
Consumer Products and Services Portfolio, Global Financial Services Portfolio,
Global Infrastructure Portfolio, and Global Natural Resources Portfolio,
including the portfolio of investments, as of October 31, 1997, the related
statement of operations for the year then ended, the statements of changes in
net assets and the supplementary data for each of the periods indicated herein.
These financial statements and the supplementary data are the responsibility of
the Portfolios' management. Our responsibility is to express an opinion on these
financial statements and the supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1997 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and the supplementary data referred to
above present fairly, in all material respects, the financial position of Global
Consumer Products and Services Portfolio, Global Financial Services Portfolio,
Global Infrastructure Portfolio, and Global Natural Resources Portfolio as of
October 31, 1997, the results of their operations for the year then ended, the
changes in their net assets and the supplementary data for each of the periods
indicated herein in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
DECEMBER 15, 1997
F1
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (56.3%)
CVS Corp. ................................................. US 97,900 $ 6,002,494 3.7
RETAILERS-OTHER
Airborne Freight Corp. .................................... US 80,600 5,108,025 3.1
TRANSPORTATION - AIRLINES
Brylane, Inc.-/- .......................................... US 115,000 4,995,313 3.1
RETAILERS-APPAREL
New York Times Co. "A" .................................... US 90,000 4,927,500 3.0
BROADCASTING & PUBLISHING
Jones Apparel Group, Inc.-/- .............................. US 89,200 4,538,050 2.8
RETAILERS-APPAREL
Pacific Sunwear of California-/- .......................... US 150,000 4,143,750 2.5
RETAILERS-APPAREL
Loblaw Cos., Ltd. ......................................... CAN 251,800 3,663,000 2.2
RETAILERS-FOOD
Nordstrom, Inc. ........................................... US 56,000 3,430,000 2.1
RETAILERS-APPAREL
Yogen Fruz World-Wide, Inc.-/- ............................ CAN 583,900 3,314,789 2.0
RETAILERS-FOOD
Central Newspapers, Inc. "A" .............................. US 50,000 3,284,375 2.0
BROADCASTING & PUBLISHING
Cinar Films, Inc. "B"{\/} ................................. CAN 76,000 2,954,500 1.8
LEISURE & TOURISM
Chapters, Inc.: ........................................... CAN -- -- 1.8
RETAILERS-OTHER
Common-/- ............................................... -- 83,500 1,747,978 --
Special Warrants(::) -/- ................................ -- 66,200 1,204,960 --
Sears Canada, Inc. ........................................ CAN 170,500 2,825,131 1.7
RETAILERS-OTHER
Gap, Inc. ................................................. US 50,000 2,659,375 1.6
RETAILERS-APPAREL
Outdoor Systems, Inc.-/- .................................. US 84,000 2,583,000 1.6
BUSINESS & PUBLIC SERVICES
Universal Outdoor Holdings, Inc.-/- ....................... US 60,000 2,535,000 1.6
BUSINESS & PUBLIC SERVICES
Avis Rent A Car, Inc. ..................................... US 90,000 2,469,375 1.5
TRANSPORTATION - ROAD & RAIL
Consolidated Stores Corp.-/- .............................. US 61,300 2,444,338 1.5
RETAILERS-OTHER
Family Dollar Stores, Inc. ................................ US 103,000 2,420,500 1.5
RETAILERS-APPAREL
Bed Bath & Beyond-/- ...................................... US 76,000 2,413,000 1.5
RETAILERS-OTHER
Stage Stores, Inc.-/- ..................................... US 65,000 2,372,500 1.5
RETAILERS-APPAREL
Transat A.T., Inc.-/- ..................................... CAN 270,200 2,320,054 1.4
TRANSPORTATION - AIRLINES
Dress Barn, Inc.-/- ....................................... US 90,700 2,301,513 1.4
RETAILERS-APPAREL
Abercrombie & Fitch Co.-/- ................................ US 80,000 2,080,000 1.3
RETAILERS-APPAREL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Ames Department Stores, Inc.-/- ........................... US 132,600 $ 2,063,588 1.3
RETAILERS-OTHER
Valassis Communications, Inc.-/- .......................... US 60,000 1,770,000 1.1
BROADCASTING & PUBLISHING
Air Canada ................................................ CAN 150,000 1,495,529 0.9
TRANSPORTATION - AIRLINES
The Bombay Co., Inc. ...................................... US 244,100 1,479,856 0.9
RETAILERS-OTHER
Budget Group, Inc. "A"-/- ................................. US 41,800 1,463,000 0.9
TRANSPORTATION - ROAD & RAIL
Tuesday Morning Corp.-/- .................................. US 50,050 1,213,713 0.7
RETAILERS-APPAREL
Ryanair Holdings PLC - ADR-/- {\/} ........................ IRE 42,500 1,062,500 0.7
TRANSPORTATION - AIRLINES
Star Choice Communications, Inc.-/- ....................... CAN 293,500 916,406 0.6
BROADCASTING & PUBLISHING
Hospitality Worldwide Services-/- ......................... US 66,000 767,250 0.5
LEISURE & TOURISM
Dayton Hudson Corp. ....................................... US 10,000 628,125 0.4
RETAILERS-APPAREL
N2K, Inc.-/- .............................................. US 8,300 218,394 0.1
LEISURE & TOURISM
Hudson's Bay Co. .......................................... CAN 300 6,866 --
RETAILERS-APPAREL
------------
91,823,747
------------
Consumer Non-Durables (14.8%)
Morningstar Group, Inc.-/- ................................ US 151,200 6,463,796 4.0
FOOD
Tabacalera S.A. "A" ....................................... SPN 74,000 5,332,967 3.3
TOBACCO
Interstate Bakeries Corp. ................................. US 70,600 4,509,575 2.8
FOOD
Foodmaker, Inc.-/- ........................................ US 208,400 3,425,575 2.1
FOOD
General Cigar Holdings, Inc.-/- ........................... US 62,800 1,817,275 1.1
TOBACCO
Saputo Group, Inc.-/- ..................................... CAN 114,400 1,753,506 1.1
FOOD
American Italian Pasta Co. "A"-/- ......................... US 30,000 630,000 0.4
FOOD
------------
23,932,694
------------
Finance (6.5%)
BankAmerica Corp. ......................................... US 71,000 5,076,500 3.1
BANKS-MONEY CENTER
Merita Ltd. "A" ........................................... FIN 738,300 3,608,281 2.2
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
O&Y Properties Corp., Special Warrants(::) -/- {::} ....... CAN 342,400 $ 1,943,798 1.2
REAL ESTATE
------------
10,628,579
------------
Technology (2.6%)
CHS Electronics, Inc.-/- .................................. US 164,500 4,019,969 2.5
COMPUTERS & PERIPHERALS
Concord Communications, Inc.-/- ........................... US 7,100 126,025 0.1
SOFTWARE
------------
4,145,994
------------
Capital Goods (1.3%)
HON INDUSTRIES, Inc. ...................................... US 40,000 2,065,000 1.3
OFFICE EQUIPMENT
------------ -----
TOTAL EQUITY INVESTMENTS (cost $124,047,571) ................ 132,596,014 81.5
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated October 31, 1997, with State Street Bank & Trust Co.,
due November 3, 1997, for an effective yield of 5.57%,
collateralized by $4,435,000 U.S. Treasury Bond, 8.875%
due 8/15/17 (market value of collateral is $5,818,438,
including accrued interest).
(cost $5,697,881) ....................................... 5,697,881 3.5
------------ -----
TOTAL INVESTMENTS (cost $129,745,452) * .................... 138,293,895 85.0
Other Assets and Liabilities ................................ 24,322,139 15.0
------------ -----
NET ASSETS .................................................. $162,616,034 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
(::) Valued in good faith at fair value using procedures approved by the
Board of Directors (see Note 1 of Notes to Financial Statements).
{\/} U.S. currency denominated.
{::} Security was an affiliate at October 31, 1997 (see Note 5 of Notes
to Financial Statements).
* For Federal income tax purposes, cost is $129,972,640 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 11,067,741
Unrealized depreciation: (2,746,486)
-------------
Net unrealized appreciation: $ 8,321,255
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Canada (CAN/CAD) ..................... 14.7 14.7
Finland (FIN/FIM) .................... 2.2 2.2
Ireland (IRE/IEP) .................... 0.7 0.7
Spain (SPN/ESP) ...................... 3.3 3.3
United States (US/USD) ............... 60.6 18.5 79.1
------ ----- -----
Total ............................... 81.5 18.5 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $162,616,034.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL FINANCIAL SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Banks - Regional (51.1%)
Sparbanken Sverige AB "A" .................................. SWDN 68,000 $ 1,543,927 1.9
City National Corp. ........................................ US 50,550 1,525,978 1.9
Lloyds TSB Group PLC ....................................... UK 113,600 1,419,524 1.8
Royal Bank of Canada ....................................... CAN 26,000 1,390,221 1.7
NationsBank Corp. .......................................... US 20,000 1,197,500 1.5
Mellon Bank Corp. .......................................... US 21,800 1,124,063 1.4
Bank of Montreal ........................................... CAN 25,800 1,114,058 1.4
Demirbank T.A.S. ........................................... TRKY 37,896,000 1,084,691 1.3
National Bank of Canada .................................... CAN 75,600 1,080,996 1.3
Hamilton Bancorp, Inc.-/- .................................. US 35,000 1,067,500 1.3
Crestar Financial Corp. .................................... US 20,800 984,100 1.2
GreenPoint Financial Corp. ................................. US 15,100 972,063 1.2
Norbanken AB ............................................... SWDN 30,400 954,136 1.2
Christiania Bank Og Kreditkasse ............................ NOR 232,900 933,534 1.2
Bayerische Vereinsbank ..................................... GER 16,070 931,864 1.2
Bank Leumi Le - Israel ..................................... ISRL 605,700 930,012 1.2
Jyske Bank ................................................. DEN 9,000 927,029 1.2
Bank Hapoalim Ltd. ......................................... ISRL 383,000 906,460 1.1
Bank of Ireland ............................................ IRE 70,800 895,906 1.1
First Union Corp. (N.C.) ................................... US 18,200 892,938 1.1
H. F. Ahmanson & Co. ....................................... US 15,000 885,000 1.1
Halifax PLC-/- ............................................. UK 76,800 869,507 1.1
Nedcor Ltd. ................................................ SAFR 41,123 863,498 1.1
Zagrebacka Banka - 144A GDR{.} {\/} ........................ CRT 27,000 860,625 1.1
Sovereign Bancorp, Inc. .................................... US 48,200 855,550 1.1
First American Corp. ....................................... US 18,000 855,000 1.1
Allied Irish Bank PLC{V} ................................... IRE 97,644 826,256 1.0
ABSA Group Ltd. ............................................ SAFR 138,867 822,809 1.0
Anglo-Irish Bank Corp., PLC: ............................... IRE -- -- 1.0
Common{V} ................................................ -- 315,036 515,196 --
Common ................................................... -- 180,000 297,565 --
Compagnie Financiere de Paribas S.A. ....................... FR 11,100 806,457 1.0
First National Bank Holdings Ltd. .......................... SAFR 105,800 799,549 1.0
Yapi ve Kredi Bankasi A.S. ................................. TRKY 26,000,000 793,807 1.0
Commercial International Bank - GDR{\/} .................... EGPT 36,265 788,764 1.0
National Australia Bank Ltd. ............................... AUSL 56,500 772,531 1.0
Ergo Bank S.A. ............................................. GREC 12,960 772,510 1.0
Westpac Banking Corp., Ltd. ................................ AUSL 132,000 768,337 1.0
Australia & New Zealand Banking Group Ltd. ................. AUSL 110,000 767,100 1.0
Banco Totta & Acores S.A. "B" .............................. PORT 39,300 760,068 0.9
Wielkopolski Bank Kredytowy S.A. ........................... POL 138,000 753,448 0.9
Cullen/Frost Bankers, Inc. ................................. US 14,500 732,250 0.9
Akbank T.A.S. .............................................. TRKY 9,821,967 669,363 0.8
Banco Commercial S.A. - 144A GDR{.} {\/} ................... URGY 22,000 638,000 0.8
BG Bank AS ................................................. DEN 9,500 610,308 0.8
Banco Bradesco S.A. Preferred .............................. BRZL 79,500,000 591,346 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL FINANCIAL SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Banks - Regional (Continued)
Security Bank Corp.-/- ..................................... PHIL 688,900 $ 363,095 0.5
-----------
40,914,439
-----------
Banks - Money Center (18.5%)
BankAmerica Corp. .......................................... US 43,400 3,103,091 3.9
Citicorp ................................................... US 15,050 1,882,191 2.3
Chase Manhattan Corp. ...................................... US 14,750 1,701,781 2.1
Merita Ltd. "A" ............................................ FIN 297,000 1,451,523 1.8
HSBC Holdings PLC .......................................... HK 55,800 1,263,260 1.6
Barclays PLC ............................................... UK 39,375 986,026 1.2
Schweizerischer Bankverein (Swiss Bank Corp.)-/- ........... SWTZ 3,330 895,532 1.1
Unidanmark AS "A" .......................................... DEN 13,200 891,009 1.1
ABN AMRO Holdings N.V. ..................................... NETH 42,864 863,463 1.1
Bank of Tokyo - Mitsubishi ................................. JPN 41,750 544,867 0.7
Sumitomo Bank .............................................. JPN 37,000 393,682 0.5
Industrial Bank of Japan ................................... JPN 26,000 257,190 0.3
Fuji Bank Ltd. ............................................. JPN 29,000 250,707 0.3
Sanwa Bank ................................................. JPN 24,000 241,397 0.3
Dai-Ichi Kangyo Bank Ltd. .................................. JPN 15,000 127,182 0.2
-----------
14,852,901
-----------
Insurance - Multi-Line (11.0%)
Conseco, Inc. .............................................. US 51,600 2,251,050 2.8
Fremont General Corp. ...................................... US 30,000 1,398,750 1.7
Allstate Corp. ............................................. US 15,000 1,244,063 1.5
SunAmerica, Inc. ........................................... US 29,800 1,070,938 1.3
Axa Group .................................................. FR 14,770 1,011,872 1.3
Royal & Sun Alliance Insurance Group PLC ................... UK 98,700 946,110 1.2
American International Group, Inc. ......................... US 9,200 938,975 1.2
-----------
8,861,758
-----------
Consumer Finance (5.9%)
The Money Store, Inc. ...................................... US 39,500 1,120,813 1.4
Green Tree Financial Corp. ................................. US 24,600 1,036,275 1.3
Doral Financial Corp. ...................................... US 45,200 1,000,050 1.2
Aeon Credit Service ........................................ HK 2,964,000 747,710 0.9
Acom Co., Ltd. ............................................. JPN 9,000 493,766 0.6
Bankard, Inc.-/- ........................................... PHIL 5,307,000 362,872 0.5
-----------
4,761,486
-----------
Other Financial (4.1%)
Newcourt Credit Group, Inc. ................................ CAN 25,200 871,771 1.1
Banco LatinoAmericano de Exportaciones S.A. (Bladex)
"E"{\/} ................................................... PAN 20,000 795,000 1.0
Investors Financial Services Corp. ......................... US 16,500 726,000 0.9
MoneyGram Payment Systems, Inc.-/- ......................... US 42,000 580,125 0.7
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL FINANCIAL SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Other Financial (Continued)
Shohkoh Fund ............................................... JPN 1,200 $ 349,127 0.4
-----------
3,322,023
-----------
Securities Broker (2.8%)
Hambrecht & Quist Group-/- ................................. US 30,000 945,000 1.2
Morgan Stanley, Dean Witter, Discover and Co. .............. US 13,200 652,575 0.8
Peregrine Investment Holdings Ltd. ......................... HK 532,000 523,053 0.6
Nomura Securities Co., Ltd. ................................ JPN 10,000 116,376 0.1
Daiwa Securities Co., Ltd. ................................. JPN 14,000 84,722 0.1
-----------
2,321,726
-----------
Investment Management (2.4%)
Alliance Capital Management L.P. ........................... US 32,400 1,111,725 1.4
Franklin Resources, Inc. ................................... US 8,750 786,406 1.0
-----------
1,898,131
----------- -----
TOTAL EQUITY INVESTMENTS (cost $69,090,966) .................. 76,932,464 95.8
----------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
Dated October 31, 1997, with State Street Bank & Trust Co.,
due November 3, 1997, for an effective yield of 5.57%,
collateralized by $2,110,000 U.S. Treasury Bond, 8.875% due
8/15/17 (market value of collateral is $2,768,185,
including accrued interest). (cost $2,708,419) ........... 2,708,419 3.4
----------- -----
TOTAL INVESTMENTS (cost $71,799,385) * ...................... 79,640,883 99.2
Other Assets and Liabilities ................................. 605,916 0.8
----------- -----
NET ASSETS ................................................... $80,246,799 100.0
----------- -----
----------- -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
{V} Security is denominated in GBP.
* For Federal income tax purposes, cost is $72,281,726 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 10,637,773
Unrealized depreciation: (3,278,616)
-------------
Net unrealized appreciation: $ 7,359,157
-------------
-------------
</TABLE>
Abbreviation:
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL FINANCIAL SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-----------------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ------------- ----------
<S> <C> <C> <C>
Australia (AUSL/AUD) ................. 3.0 3.0
Brazil (BRZL/BRL) .................... 0.7 0.7
Canada (CAN/CAD) ..................... 5.5 5.5
Croatia (CRT/HRK) .................... 1.1 1.1
Denmark (DEN/DKK) .................... 3.1 3.1
Egypt (EGPT/EGP) ..................... 1.0 1.0
Finland (FIN/FIM) .................... 1.8 1.8
France (FR/FRF) ...................... 2.3 2.3
Germany (GER/DEM) .................... 1.2 1.2
Greece (GREC/GRD) .................... 1.0 1.0
Hong Kong (HK/HKD) ................... 3.1 3.1
Ireland (IRE/IEP) .................... 3.1 3.1
Israel (ISRL/ILS) .................... 2.3 2.3
Japan (JPN/JPY) ...................... 3.5 3.5
Netherlands (NETH/NLG) ............... 1.1 1.1
Norway (NOR/NOK) ..................... 1.2 1.2
Panama (PAN/PND) ..................... 1.0 1.0
Philippines (PHIL/PHP) ............... 1.0 1.0
Poland (POL/PLZ) ..................... 0.9 0.9
Portugal (PORT/PTE) .................. 0.9 0.9
South Africa (SAFR/ZAR) .............. 3.1 3.1
Sweden (SWDN/SEK) .................... 3.1 3.1
Switzerland (SWTZ/CHF) ............... 1.1 1.1
Turkey (TRKY/TRL) .................... 3.1 3.1
United Kingdom (UK/GBP) .............. 5.3 5.3
United States (US/USD) ............... 40.5 4.2 44.7
Uruguay (URGY/UYP) ................... 0.8 0.8
------ --- ----------
Total ............................... 95.8 4.2 100.0
------ --- ----------
------ --- ----------
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $80,246,799.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACT OUTSTANDING
OCTOBER 31, 1997
<TABLE>
<CAPTION>
MARKET VALUE CONTRACT DELIVERY UNREALIZED
CONTRACT TO SELL: (U.S. DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Japanese Yen............................ 1,182,045 114.50000 11/12/97 $ 59,877
-------------- --------------
Total Contracts to Sell (Receivable
amount $1,241,922)................... 1,182,045 59,877
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 1.47%.
Total Open Forward Foreign Currency
Contracts............................ $ 59,877
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL INFRASTRUCTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Energy (31.1%)
Hub Power Co.-/- ........................................... PAK 2,400,000 $ 3,206,835 3.3
ELECTRICAL & GAS UTILITIES
Enron Global Power & Pipelines L.L.C. ...................... US 90,000 3,099,375 3.1
ELECTRICAL & GAS UTILITIES
Endesa S.A. - ADR{\/} ...................................... SPN 160,000 2,980,000 3.0
ELECTRICAL & GAS UTILITIES
Shaw Group, Inc.-/- ........................................ US 140,300 2,928,763 3.0
ENERGY EQUIPMENT & SERVICES
IES Industries, Inc. ....................................... US 81,000 2,612,250 2.7
ELECTRICAL & GAS UTILITIES
Light - Participacoes S.A. ................................. BRZL 9,910,000 2,535,033 2.6
ELECTRICAL & GAS UTILITIES
Edison S.p.A. .............................................. ITLY 450,000 2,370,058 2.4
ELECTRICAL & GAS UTILITIES
Light - Servicos de Electricidade S.A. ..................... BRZL 7,000,000 2,324,020 2.4
ELECTRICAL & GAS UTILITIES
EVN Energie-Versorgung Niederoesterreich AG ................ ASTRI 16,800 1,948,628 2.0
ELECTRICAL & GAS UTILITIES
Giant Industries, Inc. ..................................... US 102,600 1,840,388 1.9
OIL
AES Corp.-/- ............................................... US 45,264 1,793,586 1.8
ELECTRICAL & GAS UTILITIES
BSES Ltd. - 144A GDR{.} {\/} ............................... IND 70,000 1,085,000 1.1
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (CEMIG) - ADR{\/} ..... BRZL 24,900 996,000 1.0
ELECTRICAL & GAS UTILITIES
MetroGas S.A. - ADR{\/} .................................... ARG 111,051 805,120 0.8
ELECTRICAL & GAS UTILITIES
-----------
30,525,056
-----------
Services (23.0%)
Canadian National Railway Co. .............................. CAN 60,900 3,284,415 3.3
TRANSPORTATION - ROAD & RAIL
Aeroporti di Roma SpA-/- ................................... ITLY 286,600 2,606,270 2.6
TRANSPORTATION - AIRLINES
Hellenic Telecommunications Organization S.A. .............. GREC 118,250 2,469,600 2.5
TELEPHONE NETWORKS
Telecom Italia SpA - Di Risp-/- ............................ ITLY 600,000 2,415,946 2.5
TELEPHONE NETWORKS
SPT Telecom-/- ............................................. CZCH 19,000 2,187,547 2.2
TELEPHONE NETWORKS
Tranz Rail Holdings Ltd. - ADR{\/} ......................... NZ 132,000 1,782,000 1.8
TRANSPORTATION - ROAD & RAIL
Portugal Telecom S.A. - ADR{\/} ............................ PORT 43,000 1,773,750 1.8
TELEPHONE NETWORKS
Paging Network, Inc.-/- .................................... US 125,000 1,546,875 1.6
WIRELESS COMMUNICATIONS
Centennial Cellular Corp. "A"-/- ........................... US 50,000 1,000,000 1.0
WIRELESS COMMUNICATIONS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL INFRASTRUCTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Services (Continued)
DDI Corp. .................................................. JPN 295 $ 985,786 1.0
WIRELESS COMMUNICATIONS
Telefonica del Peru S.A. - ADR{\/} ......................... PERU 40,900 807,775 0.8
TELEPHONE NETWORKS
Compania Anonima Nacional Telefonos de Venezuela (CANTV) -
ADR{\/} ................................................... VENZ 16,000 700,000 0.7
TELEPHONE NETWORKS
Pakistan Telecommunications Co., Ltd.: ..................... PAK -- -- 0.6
TELEPHONE NETWORKS
GDR{\/} .................................................. -- 4,892 396,252 --
"A" ...................................................... -- 280,000 235,741 --
Philippine Long Distance Telephone Co. - ADR{\/} ........... PHIL 20,000 485,000 0.5
TELEPHONE NETWORKS
China Telecom (Hong Kong) Ltd.-/- .......................... HK 80,000 127,814 0.1
WIRELESS COMMUNICATIONS
-----------
22,804,771
-----------
Materials/Basic Industry (20.6%)
Giant Cement Holding, Inc.-/- .............................. US 179,800 4,360,150 4.4
CEMENT
La Cementos Nacional, C.A. - 144A GDR{.} {\/} .............. ECDR 15,060 3,162,600 3.2
CEMENT
Northwest Pipe Co.-/- ...................................... US 127,500 3,091,875 3.1
METALS - STEEL
IPSCO, Inc. ................................................ CAN 67,600 2,926,199 3.0
METALS - STEEL
Hylsamex, S.A. de C.V. - 144A ADR{.} {\/} .................. MEX 75,000 2,896,875 2.9
METALS - STEEL
NS Group, Inc.-/- .......................................... US 98,100 2,624,175 2.7
METALS - STEEL
Suez Cement Co. - Reg S GDR{c} {\/} ........................ EGPT 60,000 1,245,000 1.3
CEMENT
-----------
20,306,874
-----------
Capital Goods (9.2%)
Doncasters PLC - ADR-/- {\/} ............................... UK 139,600 3,760,474 3.8
AEROSPACE/DEFENSE
Caterpillar, Inc. .......................................... US 60,000 3,075,000 3.1
MACHINERY & ENGINEERING
KCI Konecranes International ............................... FIN 42,660 1,664,636 1.7
MACHINERY & ENGINEERING
United Engineers Ltd. ...................................... MAL 270,000 640,733 0.6
CONSTRUCTION
-----------
9,140,843
-----------
Technology (7.7%)
Tadiran Telecommunications Ltd.{\/} ........................ ISRL 130,000 2,941,250 3.0
TELECOM TECHNOLOGY
Emcore Corp.-/- ............................................ US 123,000 2,367,750 2.4
SEMICONDUCTORS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL INFRASTRUCTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- -------------------------------------------------------------- -------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Technology (Continued)
Cisco Systems, Inc.-/- ..................................... US 21,000 $ 1,722,656 1.7
NETWORKING
Asia Pacific Wire & Cable Corporation Ltd.-/- {\/} ......... SING 59,400 549,450 0.6
TELECOM TECHNOLOGY
-----------
7,581,106
-----------
Multi-Industry/Miscellaneous (4.7%)
Mannesmann AG .............................................. GER 7,500 3,166,135 3.2
MULTI-INDUSTRY
E.R.G. Ltd. ................................................ AUSL 1,689,040 1,436,723 1.5
MULTI-INDUSTRY
-----------
4,602,858
----------- -----
TOTAL EQUITY INVESTMENTS (cost $76,186,714) .................. 94,961,508 96.3
----------- -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- -------------------------------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
Dated October 31, 1997, with State Street Bank & Trust Co.,
due November 3, 1997, for an effective yield of 5.57%,
collateralized by $1,680,000 U.S. Treasury Bonds, 8.875%
due 8/15/17 (market value of collateral is $2,204,053,
including accrued interest). (cost $2,156,334) ........... 2,156,334 2.2
----------- -----
TOTAL INVESTMENTS (cost $78,343,048) * ...................... 97,117,842 98.5
Other Assets and Liabilities ................................. 1,457,369 1.5
----------- -----
NET ASSETS ................................................... $98,575,211 100.0
----------- -----
----------- -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
{c} Security issued under Regulation S. Rule 144A and additional
restrictions may apply in the resale of such securities.
* For Federal income tax purposes, cost is $78,343,048 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 23,477,043
Unrealized depreciation: (4,702,249)
-------------
Net unrealized appreciation: $ 18,774,794
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL INFRASTRUCTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Argentina (ARG/ARS) .................. 0.8 0.8
Australia (AUSL/AUD) ................. 1.5 1.5
Austria (ASTRI/ATS) .................. 2.0 2.0
Brazil (BRZL/BRL) .................... 6.0 6.0
Canada (CAN/CAD) ..................... 6.3 6.3
Czech Republic (CZCH/CSK) ............ 2.2 2.2
Ecuador (ECDR/ECS) ................... 3.2 3.2
Egypt (EGPT/EGP) ..................... 1.3 1.3
Finland (FIN/FIM) .................... 1.7 1.7
Germany (GER/DEM) .................... 3.2 3.2
Greece (GREC/GRD) .................... 2.5 2.5
Hong Kong (HK/HKD) ................... 0.1 0.1
India (IND/INR) ...................... 1.1 1.1
Israel (ISRL/ILS) .................... 3.0 3.0
Italy (ITLY/ITL) ..................... 7.5 7.5
Japan (JPN/JPY) ...................... 1.0 1.0
Malaysia (MAL/MYR) ................... 0.6 0.6
Mexico (MEX/MXN) ..................... 2.9 2.9
New Zealand (NZ/NZD) ................. 1.8 1.8
Pakistan (PAK/PKR) ................... 3.9 3.9
Peru (PERU/PES) ...................... 0.8 0.8
Philippines (PHIL/PHP) ............... 0.5 0.5
Portugal (PORT/PTE) .................. 1.8 1.8
Singapore (SING/SGD) ................. 0.6 0.6
Spain (SPN/ESP) ...................... 3.0 3.0
United Kingdom (UK/GBP) .............. 3.8 3.8
United States & Other (US/USD) ....... 32.5 3.7 36.2
Venezuela (VENZ/VEB) ................. 0.7 0.7
------ --- -----
Total ............................... 96.3 3.7 100.0
------ --- -----
------ --- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $98,575,211.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
OCTOBER 31, 1997
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 1,509,823 1.80100 11/28/97 $ (66,180)
Japanese Yen............................ 404,821 114.50000 11/12/97 20,506
Japanese Yen............................ 368,245 120.70000 01/07/98 (4,948)
Japanese Yen............................ 84,327 118.82300 02/04/98 (168)
-------------- --------------
Total Contracts to Sell (Receivable
amount $2,316,426)................... 2,367,216 (50,790)
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 2.40%.
Total Open Forward Foreign Currency
Contracts............................ $ (50,790)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL NATURAL RESOURCES PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy Equipment & Services (53.2%)
Schlumberger Ltd. ......................................... US 60,800 $ 5,320,000 3.1
Cliffs Drilling Co.-/- .................................... US 73,100 5,313,456 3.1
EVI, Inc.-/- .............................................. US 81,000 5,199,188 3.0
Varco International, Inc.-/- .............................. US 85,000 5,179,688 3.0
Cooper Cameron Corp.-/- ................................... US 71,500 5,165,875 3.0
Precision Drilling Corp.-/- ............................... CAN 162,300 4,980,581 2.9
Nabors Industries, Inc.-/- ................................ US 120,200 4,943,225 2.9
Patterson Energy, Inc.-/- ................................. US 86,800 4,860,800 2.8
UTI Energy Corp.-/- ....................................... US 107,700 4,806,113 2.8
Key Energy Group, Inc.-/- ................................. US 147,600 4,630,950 2.7
Pool Energy Services Co.-/- ............................... US 133,600 4,534,050 2.6
Diamond Offshore Drilling, Inc. ........................... US 72,000 4,482,000 2.6
Helmerich & Payne, Inc. ................................... US 51,300 4,139,269 2.4
BJ Services Co.-/- ........................................ US 43,600 3,695,100 2.2
Santa Fe International Corp.-/- ........................... US 71,700 3,526,744 2.1
Falcon Drilling Co., Inc.-/- .............................. US 96,900 3,524,738 2.1
Smith International, Inc.-/- .............................. US 41,900 3,194,875 1.9
Bonus Resource Services Corp.-/- .......................... CAN 482,284 2,361,453 1.4
Veritas DGC, Inc.-/- ...................................... US 56,400 2,308,875 1.3
Noble Drilling Corp.-/- ................................... US 64,300 2,286,669 1.3
Fred Olsen Energy ASA-/- .................................. NOR 74,500 2,053,003 1.2
Computalog Ltd.-/- ........................................ CAN 58,800 1,189,185 0.7
Rowan Cos., Inc.-/- ....................................... US 30,000 1,166,250 0.7
Enerflex Systems Ltd. ..................................... CAN 38,000 1,078,626 0.6
Hanover Compressor Co.-/- ................................. US 42,100 910,413 0.5
Dril-Quip, Inc.-/- ........................................ US 22,700 814,363 0.5
------------
91,665,489
------------
Metals - Steel (13.5%)
IPSCO, Inc. ............................................... CAN 111,700 4,835,155 2.8
Tubos de Acero de Mexico S.A. - ADR{\/} -/- ............... MEX 227,800 4,598,713 2.7
Prudential Steel Ltd. ..................................... CAN 102,200 4,278,882 2.5
NS Group, Inc.-/- ......................................... US 130,300 3,485,525 2.0
Oregon Steel Mills, Inc. .................................. US 146,800 3,091,975 1.8
Maverick Tube Corp.-/- .................................... US 81,600 2,876,400 1.7
------------
23,166,650
------------
Construction (10.8%)
National-Oilwell, Inc.-/- ................................. US 71,501 5,474,292 3.2
Global Industries Ltd.-/- ................................. US 248,800 5,007,100 2.9
Cal Dive International, Inc.-/- ........................... US 80,000 2,500,000 1.5
Halter Marine Group, Inc.-/- .............................. US 43,600 2,280,825 1.3
Coflexip - ADR{\/} ........................................ FR 34,300 1,886,500 1.1
Bouygues Offshore S.A. - ADR{\/} .......................... FR 31,900 773,575 0.5
TransCoastal Marine Services, Inc.-/- ..................... US 19,200 477,600 0.3
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL NATURAL RESOURCES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Construction (Continued)
UNIFAB International, Inc.-/- ............................. US 4,200 $ 134,400 0.1
------------
18,534,292
------------
Oil (10.0%)
Giant Industries, Inc. .................................... US 201,100 3,607,231 2.1
Orogen Minerals Ltd. - 144A ADR{.} {\/} ................... AUSL 111,200 3,030,200 1.8
Canadian Fracmaster Ltd.-/- ............................... CAN 261,500 2,597,928 1.5
Ranger Oil Ltd. ........................................... CAN 280,900 2,431,862 1.4
Black Sea Energy Ltd.-/- .................................. CAN 1,139,600 2,345,189 1.4
ERG SpA-/- ................................................ ITLY 373,000 1,535,837 0.9
Petroleo Brasileiro S.A. (Petrobras) Preferred ............ BRZL 7,900,000 1,469,067 0.9
------------
17,017,314
------------
Chemicals (2.5%)
Ciba Specialty Chemicals AG-/- ............................ SWTZ 43,360 4,258,571 2.5
------------
Paper/Packaging (2.4%)
Fort James Corp. .......................................... US 66,962 2,657,554 1.6
Jefferson Smurfit Corp.-/- ................................ US 100,400 1,506,000 0.9
------------
4,163,554
------------
Gas Production & Distribution (2.4%)
Comstock Resources, Inc.-/- ............................... US 232,400 3,892,700 2.3
Berkley Petroleum Corp.-/- ................................ CAN 20,400 233,792 0.1
------------
4,126,492
------------
Industrial Components (2.2%)
Encore Wire Corp.-/- ...................................... US 132,950 3,755,838 2.2
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL NATURAL RESOURCES PORTFOLIO
PORTFOLIO OF INVESTMENTS (cont'd)
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Services (2.0%)
American Disposal Services, Inc.-/- ....................... US 95,500 $ 3,366,375 2.0
------------
Forest Products (0.7%)
The TimberWest Timber Trust Special Warrants(.) (::) ...... CAN 422,700 1,124,840 0.7
------------ -----
TOTAL EQUITY INVESTMENTS (cost $136,805,346) ................ 171,179,415 100.1
------------ -----
TOTAL INVESTMENTS (cost $136,805,346) * .................... 171,179,415 100.1
Other Assets and Liabilities ................................ (148,216) (0.1)
------------ -----
NET ASSETS .................................................. $171,031,199 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
(::) Valued in good faith at fair value using procedures approved by the
Board of Directors (see Note 1 of Notes to Financial Statements).
(.) Restricted securities: At October 31, 1997 the Fund owned the
following restricted security constituting 0.7% of net assets which
may not be publicly sold without registration under the Securities
Act of 1933 (Note 1). Additional information on the security is as
follows:
<TABLE>
<CAPTION>
VALUE
PER
SHARE
(NOTE
DESCRIPTION ACQUISITION DATE SHARES COST 1)
----------------------------------------------- ----------------- ------ ----------- ------
<S> <C> <C> <C> <C>
The TimberWest Timber Trust Special Warrants... 8/7/97 422,700 $ 1,142,844 $2.66
</TABLE>
* For Federal income tax purposes, cost is $137,392,339 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 37,982,563
Unrealized depreciation: (4,195,487)
-------------
Net unrealized appreciation: $ 33,787,076
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at October 31, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
{D}
---------------------------
SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY & OTHER TOTAL
- -------------------------------------- ------ ---------- -----
<S> <C> <C> <C>
Australia (AUSL/AUD) ................. 1.8 1.8
Brazil (BRZL/BRL) .................... 0.9 0.9
Canada (CAN/CAD) ..................... 16.0 16.0
France (FR/FRF) ...................... 1.6 1.6
Italy (ITLY/ITL) ..................... 0.9 0.9
Mexico (MEX/MXN) ..................... 2.7 2.7
Norway (NOR/NOK) ..................... 1.2 1.2
Switzerland (SWTZ/CHF) ............... 2.5 2.5
United States (US/USD) ............... 72.5 (0.1) 72.4
------ ----- -----
Total ............................... 100.1 (0.1) 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $171,031,199.
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $124,047,571) (Note 1)............................ $132,596,014
Repurchase agreement, at value and cost..................................................... 5,697,881
U.S. currency.................................................................... $ 303
Foreign currencies (cost $249,434)............................................... 247,103 247,406
---------
Receivable for securities sold.............................................................. 25,634,646
Miscellaneous receivable.................................................................... 91,501
Dividends and dividend withholding tax reclaims receivable.................................. 29,063
-----------
Total assets.............................................................................. 164,296,511
-----------
Liabilities:
Payable for securities purchased............................................................ 1,563,285
Payable for investment management and administration fees (Note 2).......................... 103,539
Payable for Trustees' fees and expenses (Note 2)............................................ 3,673
Payable for professional fees............................................................... 3,203
Payable for printing and postage expenses................................................... 3,200
Payable for custodian fees (Note 1)......................................................... 769
Other accrued expenses...................................................................... 2,808
-----------
Total liabilities......................................................................... 1,680,477
-----------
Net assets.................................................................................... $162,616,034
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................... $127,944,990
Accumulated net investment income........................................................... 1,081,377
Accumulated net realized gain on investments and foreign currency transactions.............. 25,036,165
Net unrealized appreciation on translation of assets and liabilities in foreign
currencies................................................................................. 5,059
Net unrealized appreciation of investments.................................................. 8,548,443
-----------
Total -- representing net assets applicable to shares of beneficial interest outstanding...... $162,616,034
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Dividend income (net of foreign withholding tax of $116,237)............................... $1,313,121
Interest income............................................................................ 547,671
----------
Total investment income.................................................................. 1,860,792
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 1,207,854
Custodian fees (Note 1).................................................................... 37,548
Legal fees................................................................................. 2,555
Other expenses (Note 1).................................................................... 10,567
----------
Total expenses before reductions......................................................... 1,258,524
----------
Expense reductions (Notes 1 & 5)......................................................... (244,767)
----------
Total net expenses......................................................................... 1,013,757
----------
Net investment income........................................................................ 847,035
----------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments............................................... $16,725,116
Net realized loss on foreign currency transactions............................. (557,667)
----------
Net realized gain during the year........................................................ 16,167,449
----------
Net change in unrealized appreciation on translation of assets and liabilities
in foreign currencies......................................................... 5,172
Net change in unrealized appreciation of investments........................... (714,518)
----------
Net unrealized depreciation during the year.............................................. (709,346)
----------
Net realized and unrealized gain on investments and foreign currencies....................... 15,458,103
----------
Net increase in net assets resulting from operations......................................... $16,305,138
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
<S> <C> <C>
Increase (decrease) in net assets
Operations:
Net investment income................................................................ $ 847,035 $ 227,636
Net realized gain on investments and foreign currency transactions................... 16,167,449 8,472,742
Net change in unrealized appreciation (depreciation) on translation of assets and
liabilities in foreign currencies................................................... 5,172 (7,034)
Net change in unrealized appreciation (depreciation) of investments.................. (714,518) 8,880,649
------------- -------------
Net increase in net assets resulting from operations............................... 16,305,138 17,573,993
------------- -------------
Beneficial interest transactions:
Contributions........................................................................ 53,941,866 176,533,504
Withdrawals.......................................................................... (77,923,852) (30,316,869)
------------- -------------
Net increase (decrease) from beneficial interest transactions...................... (23,981,986) 146,216,635
------------- -------------
Total increase (decrease) in net assets................................................ (7,676,848) 163,790,628
Net assets:
Beginning of year.................................................................... 170,292,882 6,502,254
------------- -------------
End of year.......................................................................... $162,616,034 $170,292,882
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER DECEMBER 30, 1994
31, (COMMENCEMENT OF
-------------------- OPERATIONS)
1997 1996 TO OCTOBER 31, 1995
--------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C>
Net assets, end of period (in 000's)........................... $ 162,616 $ 170,293 $ 6,502
Ratio of net investment income to average net assets........... .51% 0.39% 0.30%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)........................ 0.61% 0.72% 2.37%(a)
Without expense reductions................................... 0.76% 0.83% 2.44%(a)
Portfolio turnover rate........................................ 392% 169% 240%(a)
</TABLE>
- --------------
(a) Annualized.
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GLOBAL FINANCIAL SERVICES PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $69,090,966) (Note 1)................................... $76,932,464
Repurchase agreement, at value and cost........................................................... 2,708,419
Foreign currencies (cost $290,416)................................................................ 290,889
Receivable for securities sold.................................................................... 1,515,031
Receivable for open forward foreign currency contracts, net (Note 1).............................. 59,877
Dividends and dividend withholding tax reclaims receivable........................................ 50,112
Miscellaneous receivable.......................................................................... 4,131
----------
Total assets.................................................................................... 81,560,923
----------
Liabilities:
Payable for securities purchased.................................................................. 1,154,504
Payable for investment management and administration fees (Note 2)................................ 132,441
Payable for custodian fees (Note 1)............................................................... 10,403
Payable for printing and postage expenses......................................................... 4,007
Payable for professional fees..................................................................... 3,788
Payable for Trustees' fees and expenses (Note 2).................................................. 2,099
Other accrued expenses............................................................................ 6,882
----------
Total liabilities............................................................................... 1,314,124
----------
Net assets.......................................................................................... $80,246,799
----------
----------
Net assets consist of:
Paid in capital (Note 4).......................................................................... $67,146,111
Accumulated net investment income................................................................. 1,271,521
Accumulated net realized gain on investments and foreign currency transactions.................... 3,921,764
Net unrealized appreciation on translation of assets and liabilities in foreign currencies........ 65,905
Net unrealized appreciation of investments........................................................ 7,841,498
----------
Total -- representing net assets applicable to shares of beneficial interest outstanding............ $80,246,799
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GLOBAL FINANCIAL SERVICES PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Dividend income (net of foreign withholding tax of
$77,681)................................................... $ 984,532
Interest income............................................. 222,469
----------
Total investment income................................... 1,207,001
----------
Expenses:
Investment management and administration fees (Note 2)...... 346,965
Custodian fees (Note 1)..................................... 43,877
Trustees' fees and expenses (Note 2)........................ 5,110
Legal fees.................................................. 2,555
Other expenses (Note 1)..................................... 1,052
----------
Total expenses before reductions.......................... 399,559
----------
Expense reductions (Notes 1 & 5).......................... (31,702)
----------
Total net expenses.......................................... 367,857
----------
Net investment income......................................... 839,144
----------
Net realized and unrealized gain on investments
and foreign currencies: (Note 1)
Net realized gain on investments................ $2,648,364
Net realized loss on foreign currency
transactions................................... (19,802)
----------
Net realized gain during the year......................... 2,628,562
----------
Net change in unrealized appreciation on
translation of assets and liabilities in
foreign currencies............................. 58,275
Net change in unrealized appreciation of
investments.................................... 6,449,986
----------
Net unrealized appreciation during the period............. 6,508,261
----------
Net realized and unrealized gain on investments and foreign
currencies................................................... 9,136,823
----------
Net increase in net assets resulting from operations.......... $9,975,967
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GLOBAL FINANCIAL SERVICES PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income................................................................ $ 839,144 $ 262,238
Net realized gain on investments and foreign currency transactions................... 2,628,562 1,764,380
Net change in unrealized appreciation (depreciation) on translation of assets and
liabilities in foreign currencies................................................... 58,275 (6,532)
Net change in unrealized appreciation of investments................................. 6,449,986 615,083
------------- -------------
Net increase in net assets resulting from operations............................... 9,975,967 2,635,349
------------- -------------
Beneficial interest transactions:
Contributions........................................................................ 87,995,110 14,419,684
Withdrawals.......................................................................... (34,197,555) (10,375,100)
------------- -------------
Net increase from beneficial interest transactions................................. 53,797,555 4,044,584
------------- -------------
Total increase in net assets........................................................... 63,773,522 6,679,933
Net assets:
Beginning of year.................................................................... 16,473,277 9,793,344
------------- -------------
End of year.......................................................................... $80,246,799 $16,473,277
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GLOBAL FINANCIAL SERVICES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's)..................... $ 80,247 $ 16,473 $ 9,793 $ 5,176
Ratio of net investment income to average net assets..... 1.76% 1.90% 2.60% 1.19%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4).................. 0.77% 0.86% 1.43% 4.43%(a)
Without expense reductions............................. 0.84% 0.94% 1.46% N/A
Portfolio turnover rate.................................. 91% 103% 170% 53%
</TABLE>
- --------------
(a) Annualized.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities at value (cost $76,186,714) (Note 1)............................... $94,961,508
Repurchase agreement, at value and cost...................................................... 2,156,334
U.S. currency..................................................................... $ 128
Foreign currencies (cost $252,788)................................................ 257,815 257,943
---------
Receivable for securities sold............................................................... 1,309,852
Dividends receivable......................................................................... 25,624
Receivable for forward foreign currency contracts -- closed (Note 1)......................... 5,096
----------
Total assets............................................................................... 98,716,357
----------
Liabilities:
Payable for investment management and administration fees (Note 2)........................... 66,948
Payable for open forward foreign currency contracts, net (Note 1)............................ 50,790
Payable for professional fees................................................................ 9,080
Payable for printing and postage expenses.................................................... 4,250
Payable for Trustees' fees and expenses (Note 2)............................................. 3,243
Payable for custodian fees (Note 1).......................................................... 1,332
Other accrued expenses....................................................................... 5,503
----------
Total liabilities.......................................................................... 141,146
----------
Net assets..................................................................................... $98,575,211
----------
----------
Net assets consist of:
Paid in capital (Note 4)..................................................................... $70,370,988
Accumulated net investment income............................................................ 3,494,964
Accumulated net realized gain on investments and foreign currency transactions............... 5,979,166
Net unrealized depreciation on translation of assets and liabilities in foreign currencies... (44,701)
Net unrealized appreciation of investments................................................... 18,774,794
----------
Total -- representing net assets applicable to shares of beneficial interest outstanding....... $98,575,211
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F25
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Dividend income (net of foreign withholding tax of $134,900)............................... $1,596,063
Interest income............................................................................ 438,660
----------
Total investment income.................................................................. 2,034,723
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 772,727
Custodian fees (Note 1).................................................................... 32,117
Trustees' fees and expenses (Note 2)....................................................... 5,110
Legal fees................................................................................. 2,555
Audit fees................................................................................. 2,355
Other expenses (Note 1).................................................................... 6,027
----------
Total expenses before reductions......................................................... 820,891
----------
Expense reductions (Notes 1 & 5)......................................................... (84,870)
----------
Total net expenses......................................................................... 736,021
----------
Net investment income........................................................................ 1,298,702
----------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments................................................ $ 380,153
Net realized gain on foreign currency transactions.............................. 398,459
---------
Net realized gain during the year........................................................ 778,612
----------
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies.......................................................... (116,926)
Net change in unrealized appreciation of investments............................ 8,647,635
---------
Net unrealized appreciation during the year.............................................. 8,530,709
----------
Net realized and unrealized gain on investments and foreign currencies....................... 9,309,321
----------
Net increase in net assets resulting from operations......................................... $10,608,023
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F26
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment income......................................................... $ 1,298,702 $ 1,059,468
Net realized gain on investments and foreign currency transactions............ 778,612 5,308,138
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies........................................................ (116,926) (86,155)
Net change in unrealized appreciation of investments.......................... 8,647,635 9,582,726
------------- -------------
Net increase in net assets resulting from operations........................ 10,608,023 15,864,177
------------- -------------
Beneficial interest transactions:
Contributions:................................................................ 21,536,627 23,459,855
Withdrawals................................................................... (25,593,997) (33,309,402)
------------- -------------
Net decrease from beneficial interest transactions.......................... (4,057,370) (9,849,547)
------------- -------------
Total increase in net assets.................................................... 6,550,653 6,014,630
Net assets:
Beginning of year............................................................. 92,024,558 86,009,928
------------- -------------
End of year................................................................... $98,575,211 $92,024,558
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F27
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's).................... $ 98,575 $ 92,025 $ 86,010 $ 51,107
Ratio of net investment income to average net assets.... 1.22% 1.21% 1.22% 1.44%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)................. 0.69% 0.74% 0.83% 1.17%(a)
Without expense reductions............................ 0.77% 0.85% 0.88% N/A
Portfolio turnover rate................................. 41% 41% 45% 18%
</TABLE>
- --------------
(a) Annualized.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F28
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENT OF ASSETS
AND LIABILITIES
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Investments in securities, at value (cost $136,805,346) (Note 1).......................... $171,179,415
U.S. currency.................................................................. $ 705
Foreign currencies (cost $2,016,446)........................................... 2,016,446 2,017,151
---------
Receivable for securities sold............................................................ 6,715,639
Miscellaneous receivable.................................................................. 33,584
Dividends receivable...................................................................... 15,438
-----------
Total assets............................................................................ 179,961,227
-----------
Liabilities:
Borrowings................................................................................ 4,670,000
Payable for securities purchased.......................................................... 4,125,569
Payable for investment management and administration fees (Note 2)........................ 109,233
Payable for custodian fees (Note 1)....................................................... 8,200
Payable for printing and postage expenses................................................. 4,713
Payable for professional fees............................................................. 2,743
Payable for Trustees' fees and expenses (Note 2).......................................... 2,091
Other accrued expenses.................................................................... 7,479
-----------
Total liabilities....................................................................... 8,930,028
-----------
Net assets.................................................................................. $171,031,199
-----------
-----------
Net assets consist of:
Paid in capital (Note 4).................................................................. $123,909,248
Accumulated net investment income......................................................... 521,189
Accumulated net realized gain on investments and foreign currency transactions............ 12,335,597
Net unrealized depreciation on translation of assets and liabilities in foreign
currencies............................................................................... (108,904)
Net unrealized appreciation of investments................................................ 34,374,069
-----------
Total -- representing net assets applicable to shares of beneficial interest outstanding.... $171,031,199
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment income:
Dividend income (net of foreign withholding tax of $37,547)................................ $ 449,578
Interest income............................................................................ 389,867
----------
Total investment income.................................................................. 839,445
----------
Expenses:
Investment management and administration fees (Note 2)..................................... 979,215
Custodian fees (Note 1).................................................................... 46,437
Trustees' fees and expenses................................................................ 5,149
Legal fees................................................................................. 2,321
Other expenses (Note 1).................................................................... 72,286
----------
Total expenses before reductions......................................................... 1,105,408
----------
Expense reductions (Notes 1 & 5)......................................................... (138,074)
----------
Total net expenses......................................................................... 967,334
----------
Net investment loss.......................................................................... (127,889)
----------
Net realized and unrealized gain on investments and foreign currencies: (Note 1)
Net realized gain on investments............................................... $7,635,020
Net realized loss on foreign currency transactions............................. (94,442)
----------
Net realized gain during the year........................................................ 7,540,578
----------
Net change in unrealized depreciation on translation of assets and liabilities
in foreign currencies......................................................... (125,779)
Net change in unrealized appreciation of investments........................... 18,607,939
----------
Net unrealized appreciation during the year.............................................. 18,482,160
----------
Net realized and unrealized gain on investments and foreign currencies....................... 26,022,738
----------
Net increase in net assets resulting from operations......................................... $25,894,849
----------
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
<S> <C> <C>
Increase in net assets
Operations:
Net investment loss................... $ (127,889) $ (43,864)
Net realized gain on investments and
foreign currency transactions........ 7,540,578 7,316,705
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (125,779) 65,378
Net change in unrealized appreciation
of investments....................... 18,607,939 14,910,009
------------- -------------
Net increase in net assets resulting
from operations.................... 25,894,849 22,248,228
------------- -------------
Beneficial interest transactions:
Contributions......................... 196,198,112 134,700,675
Withdrawals........................... (163,110,420) (71,660,229)
------------- -------------
Net increase from beneficial
interest transactions.............. 33,087,692 63,040,446
------------- -------------
Total increase in net assets............ 58,982,541 85,288,674
Net assets:
Beginning of year..................... 112,048,658 26,759,984
------------- -------------
End of year........................... $171,031,199 $112,048,658
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's).................. $ 171,031 $ 112,049 $ 26,760 $ 26,950
Ratio of net investment income to average net
assets.............................................. (0.09)% (0.07)% 1.88% 3.47%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)............... 0.72% 0.73% 0.93% 2.15%(a)
Without expense reductions.......................... 0.82% 0.83% 0.96% N/A
Portfolio turnover rate............................... 321% 94% 87% 137%
</TABLE>
- --------------
(a) Annualized.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER DECEMBER 30, 1994
31, (COMMENCEMENT OF
-------------------- OPERATIONS)
1997 1996 TO OCTOBER 31, 1995
--------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C>
Net assets, end of period (in 000's)........................... $ 162,616 $ 170,293 $ 6,502
Ratio of net investment income to average net assets........... .51% 0.39% 0.30%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)........................ 0.61% 0.72% 2.37%(a)
Without expense reductions................................... 0.76% 0.83% 2.44%(a)
Portfolio turnover rate........................................ 382% 169% 240%(a)
</TABLE>
- --------------
(a) Annualized.
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GLOBAL FINANCIAL SERVICES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's)..................... $ 80,247 $ 16,473 $ 9,793 $ 5,176
Ratio of net investment income to average net assets..... 1.76% 1.90% 2.60% 1.19%
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4).................. 0.77% 0.86% 1.43% 4.43%(a)
Without expense reductions............................. 0.84% 0.94% 1.46% --%*
Portfolio turnover rate.................................. 91% 103% 170% 53%
</TABLE>
- --------------
(a) Annualized.
* Calculation of "Ratio of expenses to average net assets" was made without
considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GLOBAL INFRASTRUCTURE PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's).................... $ 98,575 $ 92,025 $ 86,010 $ 51,107
Ratio of net investment income to average net assets.... 1.22% 1.21% 1.22% 1.44%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)................. 0.69% 0.74% 0.83% 1.17%(a)
Without expense reductions............................ 0.77% 0.85% 0.88% --%*
Portfolio turnover rate................................. 41% 41% 45% 18%
</TABLE>
- --------------
(a) Annualized.
* Calculation of "Ratio of expenses to average net assets" was made without
considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GLOBAL NATURAL RESOURCES PORTFOLIO
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
Contained below are ratios and supplemental data that have been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
MAY 31, 1994
YEAR ENDED OCTOBER 31, (COMMENCEMENT OF
------------------------------- OPERATIONS)
1997 1996 1995 TO OCTOBER 31, 1994
--------- --------- --------- -----------------------
Ratios and supplemental data:
<S> <C> <C> <C> <C>
Net assets, end of period (in 000's).................. $ 171,031 $ 112,049 $ 26,760 $ 26,950
Ratio of net investment income to average net
assets.............................................. (0.09)% (0.07)% 1.88% 3.47%(a)
Ratio of expenses to average net assets:
With expense reductions (Notes 1 & 4)............... 0.72% 0.73% 0.93% 2.15%(a)
Without expense reductions.......................... 0.82% 0.83% 0.96% --%*
Portfolio turnover rate............................... 321% 94% 87% 137%
</TABLE>
- --------------
(a) Annualized.
* Calculation of "Ratio of expenses to average net assets" was made without
considering the effect of expense reductions, if any.
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GLOBAL INVESTMENT PORTFOLIOS
NOTES TO
FINANCIAL STATEMENTS
October 31, 1997
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Each of the Global Consumer Products and Services Portfolio, Global Financial
Services Portfolio, Global Infrastructure Portfolio, and Global Natural
Resources Portfolio ("Portfolios") is organized as a New York Trust and is
registered under the Investment Company Act of 1940, as amended ("1940 Act"), as
a diversified, open-end management investment company. The following is a
summary of significant accounting policies consistently followed by the
Portfolios in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles, and therefore the
financial statements may include certain estimates made by management.
(A) PORTFOLIO VALUATION
The Portfolios calculate the net asset value of and complete orders to purchase
or repurchase Portfolio shares of beneficial interest on each business day, with
the exception of those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or on the principal over-the-counter market on which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by Chancellor LGT Asset
Management, Inc. (the "Manager") to be the primary market.
Fixed income investments are valued at the mean of representative quoted bid and
ask prices for such investments or, if such prices are not available, at prices
for investments of comparative maturity, quality and type; however, when the
Manager deems it appropriate, prices obtained for the day of valuation from a
bond pricing service will be used. Short-term investments with a maturity of 60
days or less are valued at amortized cost adjusted for foreign exchange
translation and market fluctuation, if any.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value as determined in good faith by or under the direction of the
Portfolios' Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by or under the direction of the Portfolios' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Portfolios 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 Portfolios 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.
A Portfolio does 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 or 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 difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Portfolio's
books and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains or 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 a Portfolio, it is the
Portfolio's policy to always receive, as collateral, United States government
securities or other high quality debt securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Portfolio
under each agreement at its maturity.
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contracts") 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 Portfolio as an unrealized gain or loss. When
the Forward Contract is closed, the Portfolio records 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 amount shown in the Portfolio's "Statement of Assets and Liabilities." A
Portfolio could be exposed to risk if a counterparty is unable to meet the terms
of the contract or if the value of the currency changes unfavorably. A Portfolio
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 Portfolio writes a call or put option, an amount equal to the premium
received is included in the Portfolio's "Statement of Assets and Liabilities" as
an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current
F33
<PAGE>
GLOBAL INVESTMENT PORTFOLIOS
market value of the option. The current market value of an option listed on a
traded exchange is valued at its last bid price, or, in the case of an
over-the-counter option, is valued at the average of the last bid prices
obtained from brokers. If an option expires on its stipulated expiration date or
if the Portfolio enters into a closing purchase transaction, a gain or loss is
realized without regard to any unrealized gain or loss on the underlying
security, and the liability related to such option is extinguished. If a written
call option is exercised, a gain or loss is realized from the sale of the
underlying security and the proceeds of the sale are increased by the premium
originally received. If a written put option is exercised, the cost of the
underlying security purchased would be decreased by the premium originally
received. The Portfolio can write options only on a covered basis, which, for a
call, requires that the Portfolio holds the underlying security and, for a put,
requires the Portfolio to set aside cash, U.S. government securities or other
liquid, high-grade debt securities in an amount not less than the exercise price
or otherwise provide adequate cover at all times while the put option is
outstanding. The Portfolio may use options to manage its exposure to the stock
market and to fluctuations in currency values or interest rates.
The premium paid by a Portfolio for the purchase of a call or put option is
included in the Portfolio's "Statement of Assets and Liabilities" as an
investment and subsequently "marked-to-market" to reflect the current market
value of the option. If an option which the Portfolio has purchased expires on
the stipulated expiration date, the Portfolio realizes a loss in the amount of
the cost of the option. If the Portfolio enters into a closing sale transaction,
the Portfolio realizes 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
Portfolio 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
Portfolio 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 Portfolio 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 Portfolio 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
Portfolio 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
Portfolio 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 Portfolio 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 Portfolio as unrealized gains or losses. When the
contract is closed, the Portfolio 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 Portfolio is that the
change in value of the underlying securities may not correlate to the change in
value of the contracts. A Portfolio may use futures contracts to manage its
exposure to the stock market and to fluctuations in currency values or interest
rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out-basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to its collection, income is recorded net of all
withholding tax with any rebate recorded when received. A Portfolio 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 Portfolio to
subsequently invest at less advantageous prices.
(H) PORTFOLIO SECURITIES LOANED
For international securities, cash collateral is received by a Portfolio 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 Portfolio against loaned securities in the 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. At October 31,
1997, stocks with an aggregate value listed below were on loan to brokers. The
loans were secured by cash collateral received by the Portfolios:
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31, 1997 OCTOBER 31,
-------------------------------- 1997
AGGREGATE VALUE CASH --------------
PORTFOLIO ON LOAN COLLATERAL FEES RECEIVED
- ---------------------------------------- --------------- -------------- --------------
<S> <C> <C> <C>
Global Consumer Products and Services
Portfolio.............................. $ 4,385,800 $ 4,476,600 $121,197
Global Financial Services Portfolio..... 1,715,052 1,813,650 18,080
Global Infrastructure Portfolio......... 3,149,538 3,301,300 84,150
Global Natural Resources Portfolio...... 12,448,138 12,910,000 66,945
</TABLE>
Fees received from securities loaned were used to reduce the Portfolios'
custodian fees.
F34
<PAGE>
GLOBAL INVESTMENT PORTFOLIOS
(I) TAXES
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code of 1986, as amended ("Code"). Therefore, no provision has been made
for Federal taxes on income, capital gains, or unrealized appreciation of
securities held.
(J) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent with
investments of domestic origin. A Portfolio's investment in emerging market
countries may involve greater risks than investments in more developed markets
and the price 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.
In addition, each Portfolio may focus its investments in certain related
consumer products and services, financial services, infrastructure, and natural
resources industries, subjecting the Portfolio to greater risk than a fund that
is more diversified.
(K) INDEXED SECURITIES
A Portfolio 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
A Portfolio is permitted to invest in privately placed restricted securities.
These securities may be resold in transactions exempt from registration or to
the public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult.
2. RELATED PARTIES
Chancellor LGT Asset Management Inc. is the Portfolios' investment manager and
administrator. On October 31, 1997, Chancellor Capital Management, Inc. merged
with LGT Asset Management, Inc., and the surviving entity was renamed Chancellor
LGT Asset Management, Inc. Each of the Portfolios pays investment management and
administration fees to the Manager at the annualized rate of 0.725% on the first
$500 million of average daily net assets of the Portfolio; 0.70% on the next
$500 million; 0.675% on the next $500 million; and 0.65% on amounts thereafter.
These fees are computed daily and paid monthly.
The Portfolios pay each of its Trustees who is not an employee, officer or
director of the Manager, G.T. Global Financial Services, Inc. or G.T. Global
Investor Services, Inc. $500 per year plus $150 for each meeting of the board or
any committee thereof attended by the Trustees.
At October 31, 1997, all of the shares of beneficial interest of each Portfolio
were owned either by its Fund (GT Global Consumer Products and Services Fund, GT
Global Financial Services Fund, GT Global Infrastructure Fund, and GT Global
Natural Resources Fund) or the Manager.
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by each Portfolio for the year ended October 31,
1997:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
- -------------------------------------------------- ------------ ------------
<S> <C> <C>
Global Consumer Products and Services Portfolio... $612,647,861 $664,389,208
Global Financial Services Portfolio............... 92,386,002 40,245,074
Global Infrastructure Portfolio................... 39,949,012 39,409,094
Global Natural Resources Portfolio................ 443,019,604 403,198,520
</TABLE>
4. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of a Portfolio's expenses. For the year ended October 31, 1997, the Portfolios'
expenses were reduced by the following amounts under these arrangements:
<TABLE>
<CAPTION>
EXPENSE
PORTFOLIO REDUCTION
- ------------------------------------------------------------------------------------------------------------------------- ---------
<S> <C>
Global Consumer Products and Services Portfolio.......................................................................... $ 123,570
Global Financial Services Portfolio...................................................................................... 13,622
Global Infrastructure Portfolio.......................................................................................... 720
Global Natural Resources Portfolio....................................................................................... 71,129
</TABLE>
F35
<PAGE>
GLOBAL INVESTMENT PORTFOLIOS
5. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by a Fund
or Portfolio are defined in the Investment Company Act of 1940 as an affiliated
company. Investments in affiliated companies by Global Consumer Products
Portfolio at October 31, 1997 amounted to $1,943,798 at value.
Transactions during the period with companies that are or were affiliates are as
follows:
GLOBAL CONSUMER PRODUCTS PORTFOLIO
<TABLE>
<CAPTION>
SALES NET REALIZED DIVIDEND
PURCHASES COST PROCEEDS GAIN (LOSS) INCOME
--------------- --------------- --------------- ------------
<S> <C> <C> <C> <C>
O & Y Properties Inc. Sp Wts...................... $ 1,996,065 $ -- $ -- $ --
</TABLE>
F36
<PAGE>
GLOBAL INVESTMENT PORTFOLIO
PART C
Item 24. Financial Statements And Exhibits.
- -------------------------------------------
(a) Financial Statements
The following audited financial statements and Reports of Coopers &
Lybrand L.L.P., independent auditors are included in Part B: Audited
financial statements of Global Financial Services Portfolio, Global
Infrastructure Portfolio, Global Natural Resources Portfolio and
Global Consumer Products and Services Portfolio for the fiscal year
ended October 31, 1997.
(b) Exhibits
1. Declaration of Trust of the Registrant. Incorporated by
Reference to Amendment No. 4 to Registrant's Registration
Statement, File No. 811-8454.
2. By-Laws of the Registrant. Incorporated by Reference to
Amendment No. 3 to Registrant's Registration Statement,
File No. 811-8454.
5. Investment Management and Administration Contract between
the Registrant and Chancellor LGT Asset Management, Inc.
Incorporated by Reference to Amendment No. 3 to
Registrant's Registration Statement, File No. 811-8454.
8. Custodian Agreement between the Registrant and State Street
Bank and Trust Company. Incorporated by Reference to
Amendment No. 4 to Registrant's Registration Statement,
File No. 811-8454.
11. Consent of Coopers & Lybrand L.L.P., Independent
Accountants - Filed herewith.
13. Investment representation letters of initial investors.
Incorporated by Reference to Amendment No. 3 to
Registrant's Registration Statement, File No. 811-8454.
27. Financial Data Schedules - Filed herewith.
C-1
<PAGE>
Item 25. Persons Controlled By Or Under Common Control With Registrant.
- -----------------------------------------------------------------------
Not applicable.
Item 26. Number Of Holders Of Securities.
- -----------------------------------------
(1) (2)
Title of Class Number of Record Holders
Series of Beneficial (as of February 25, 1998)
Interests
Global Financial Services 2
Portfolio
Global Infrastructure 2
Portfolio
Global Natural Resources 2
Portfolio
Global Consumer Products and 2
Services Portfolio
Item 27. Indemnification.
- -------------------------
Reference is hereby made to Article V of the Registrant's Declaration of
Trust, filed as Exhibit 1 to this Registration Statement.
The Registrant's Trustees and officers of the Registrant are insured under
an errors and omissions liability insurance policy and the Registrant is insured
under a fidelity bond required by Rule 17g-1 under the Investment Company Act of
1940.
Item 28. Business And Other Connections Of Investment Adviser.
- --------------------------------------------------------------
Information as to any other business, profession, vocation or employment
of a substantial nature in which each director or officer of Chancellor LGT
Asset Management, Inc. is, or at any time during the past two years has been,
engaged for his or her own account or in the capacity of director, officer,
employee, partner or trustee is incorporated herein by reference from the
section entitled "Management" in the Feeder's Part A and the sections entitled
"Directors and Executive Officers" and "Management" in the Feeder's Part B.
C-2
<PAGE>
Information as to the directors and officers of Chancellor LGT Asset
Management, Inc., Registrant's investment manager, is included in such manager's
Form ADV (File No. 801-10254), filed with the Securities and Exchange
Commission, which is incorporated herein by reference thereto.
Item 29. Principal Underwriters.
- --------------------------------
Not applicable.
Item 30. Location Of Accounts And Records.
- ------------------------------------------
Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, as amended, are maintained and held in the
offices of the Registrant and its investment manager, Chancellor LGT Asset
Management, Inc., 50 California Street, 27th Floor, San Francisco, California
94111.
Records covering shareholder accounts and portfolio transactions are also
maintained and kept by the Registrant's Custodian, State Street Bank and Trust
Company, 225 Franklin Street, Boston, Massachusetts 02110.
Item 31. Management Services.
- -----------------------------
Other than as set forth in Parts A and B of this Registration Statement,
the Registrant is not a party to any management-related service contract.
Item 32. Undertakings.
- ----------------------
None.
C-3
<PAGE>
SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940,
Registrant has duly caused this Registration Statement on Form N-1A to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of San
Francisco and State of California on the 25th day of February, 1998.
GLOBAL INVESTMENT PORTFOLIO
By /s/ Michael A. Silver
--------------------------------
Michael A. Silver
Assistant Secretary
<PAGE>
INDEX OF EXHIBITS
Exhibit No. Description of Exhibit
1. Declaration of Trust of the Registrant - Incorporated by
Reference to Amendment No. 4 to Registrant's Registration
Statement, File No. 811- 8454.
2. By-Laws of the Registrant. Incorporated by Reference to
Amendment No. 3 to Registrant's Registration Statement, File No.
811-8454.
5. Investment Management and Administration Contract between the
Registrant and Chancellor LGT Asset Management, Inc. -
Incorporated by Reference to Amendment No. 3 to Registrant's
Registration Statement, File No. 811-8454.
8. Form of Custodian Agreement between the Registrant and State
Street Bank and Trust Company. Incorporated by Reference to
Amendment No. 4 to Registrant's Registration Statement, File No.
811- 8454.
11. Consent of Coopers & Lybrand L.L.P., Independent Accountants -
Filed herewith.
13. Investment representation letters of initial investors
Incorporated by Reference to Amendment No. 3 to Registrant's
Registration Statement, File No. 811-8454.
27. Financial Data Schedules - Filed herewith.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 04
<NAME> GLOBAL CONSUMER PRODUCTS AND SERVICES PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 129745
<INVESTMENTS-AT-VALUE> 138294
<RECEIVABLES> 25755
<ASSETS-OTHER> 247
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 164296
<PAYABLE-FOR-SECURITIES> 1563
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 117
<TOTAL-LIABILITIES> 1680
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127945
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1081
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25036
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8554
<NET-ASSETS> 162616
<DIVIDEND-INCOME> 1313
<INTEREST-INCOME> 548
<OTHER-INCOME> 0
<EXPENSES-NET> (1014)
<NET-INVESTMENT-INCOME> 847
<REALIZED-GAINS-CURRENT> 16167
<APPREC-INCREASE-CURRENT> (709)
<NET-CHANGE-FROM-OPS> (16305)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 53942
<NUMBER-OF-SHARES-REDEEMED> (77924)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (7677)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1208
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1259
<AVERAGE-NET-ASSETS> 160200
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> .63
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 01
<NAME> GLOBAL FINANCIAL SERVICES PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 71799
<INVESTMENTS-AT-VALUE> 79641
<RECEIVABLES> 1629
<ASSETS-OTHER> 291
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 81561
<PAYABLE-FOR-SECURITIES> 1155
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 159
<TOTAL-LIABILITIES> 1314
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 67146
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1272
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3922
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7907
<NET-ASSETS> 80247
<DIVIDEND-INCOME> 985
<INTEREST-INCOME> 222
<OTHER-INCOME> 0
<EXPENSES-NET> (368)
<NET-INVESTMENT-INCOME> 839
<REALIZED-GAINS-CURRENT> 2629
<APPREC-INCREASE-CURRENT> 6508
<NET-CHANGE-FROM-OPS> 9976
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 87995
<NUMBER-OF-SHARES-REDEEMED> (34198)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 63774
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 347
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 400
<AVERAGE-NET-ASSETS> 65210
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> .56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FUND'S ANNUAL FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 02
<NAME> GLOBAL INFRASTRUCTURE PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 78343
<INVESTMENTS-AT-VALUE> 97118
<RECEIVABLES> 1341
<ASSETS-OTHER> 257
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 98716
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 141
<TOTAL-LIABILITIES> 141
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 70371
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 3495
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5979
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18730
<NET-ASSETS> 98575
<DIVIDEND-INCOME> 1596
<INTEREST-INCOME> 439
<OTHER-INCOME> 0
<EXPENSES-NET> (736)
<NET-INVESTMENT-INCOME> 1299
<REALIZED-GAINS-CURRENT> 779
<APPREC-INCREASE-CURRENT> 8530
<NET-CHANGE-FROM-OPS> 10608
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21537
<NUMBER-OF-SHARES-REDEEMED> (25594)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 6551
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 773
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 821
<AVERAGE-NET-ASSETS> 107822
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> .76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FUND'S
ANNUAL FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 03
<NAME> GLOBAL NATURAL RESOURCES PORTFOLIO
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 136805
<INVESTMENTS-AT-VALUE> 171179
<RECEIVABLES> 6765
<ASSETS-OTHER> 2017
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 179961
<PAYABLE-FOR-SECURITIES> 4126
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4804
<TOTAL-LIABILITIES> 8930
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 123909
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 521
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12336
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 34265
<NET-ASSETS> 171031
<DIVIDEND-INCOME> 449
<INTEREST-INCOME> 390
<OTHER-INCOME> 0
<EXPENSES-NET> (967)
<NET-INVESTMENT-INCOME> (128)
<REALIZED-GAINS-CURRENT> 7541
<APPREC-INCREASE-CURRENT> 26023
<NET-CHANGE-FROM-OPS> 25895
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 196198
<NUMBER-OF-SHARES-REDEEMED> (163110)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 58983
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 979
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1105
<AVERAGE-NET-ASSETS> 138244
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Global Investment Portfolios:
Re: Global Consumer Products and Services Portfolio
Global Financial Services Portfolio
Global Infrastructure Portfolio
Global Natural Resources Portfolio
We consent to the inclusion in Post Effective Amendment No. 5 to the
Registration Statement of Global Investment Portfolio, on Form N1-A (File No.
811-8454) of our report dated December 15, 1997 on our audit of the financial
statements and supplementary data on the above referenced Portfolios which
report is included in the Annual Report to Shareholders for the year ended
October 31, 1997 which is included in the Post Effective Amendment to the
Registration Statement.
We also consent to the reference to our Firm under the caption, "Financial
Statements."
/s/ Coopers & Lybrand L.L.P.
----------------------------
COOPERS & LYBRAND L.L.P
Boston, Massachusetts
