<PAGE>
A VARIABLE
ANNUITY ISSUED
BY SECURITY
EQUITY GENERAL LIFE
INSURANCE COMPANY
GT GLOBAL
ALLOCATOR
SEMIANNUAL REPORT
JUNE 30, 1997
[LOGO]
<PAGE>
TABLE
OF CONTENTS
<TABLE>
<S> <C>
Reports on the
Funds................ 1
Funds'
Financial
Statements........... F1
The views of the Funds'
management as described in this
report are as of the date
written. Portfolio holdings and
allocations are as of June 30,
1997, unless otherwise noted.
Views, portfolio holdings and
allocations may have changed
subsequently.
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Understanding the
Performance Tables
The performance data shown in the upper left hand corner of each report
are for the
GT Global Variable Investment Divisions available in the GT Global
Allocator variable
annuity issued by Security Equity Life Insurance Company and for their
corresponding
GT Global Variable Investment Funds, which are the underlying
investment vehicles for
the Divisions. Division performance reflects Fund performance, less the
1.4% annuity
charges (mortality and expense risk, and administrative charges), but
not the $30
administration fee for contracts less than $20,000. Division
performance which reflects
the surrender charge (maximum 7% in the first year, decreasing 1%
annually thereafter)
assumes a complete withdrawal at the end of the period noted. Fund
performance
reflects all Fund expenses but not the charges and expenses of the
separate account
described above.
Past performance is no guarantee of future results. Investment return
and principal
value will fluctuate; therefore, an investor's units, when surrendered,
may be worth more
or less than their original cost. From time to time, the investment
advisor may waive
some fees and/or reimburse some expenses, without which performance
would be lower.
Waivers and/or reimbursements are subject to change.
Fund holdings and geographic allocations will change as market
conditions change.
GT Global, Inc., Distributor and Principal Underwriter.
Policy Form #6000531
</TABLE>
<PAGE>
GT GLOBAL
VARIABLE STRATEGIC INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 17.46% 10.46%
Life of Fund 9.85% 9.34%
Fund Performance
Average Annualized
1 Year 19.10%
Life of Fund 11.39%
</TABLE>
PERFORMANCE
The Fund returned 4.44% for the six months ended June 30, 1997. The Fund's
benchmarks, the J.P. Morgan Global Government Bond Index(1) and the J.P. Morgan
Emerging Markets Brady Index(2) (EMBI), returned -1.09% and 11.54%,
respectively, over the same investment period.
Our strategy during the past six months was to overweight European fixed income
markets both core and emerging, while underinvesting in the Japanese, U.S. and
Latin markets. This allocation generally worked well for the Fund, as European
bond yields fell in response to better-than-expected economic fundamentals as
well as investors' growing optimism over the on-time start of European Monetary
Union (EMU) and the countries expected to be included. On the other hand, the
Fund's underweighted position in emerging countries of Latin America detracted
from the Fund's overall returns relative to the J.P. Morgan EMBI.
MARKET REVIEW
Two recent developments are worthy of note in developed markets. One is the
strong performance by many of the peripheral markets in continental Europe in
spite of several political developments that suggest the EMU project may be
delayed. The other has been the general strength of the U.S. dollar and UK
sterling against continental European currencies.
In emerging markets, bonds (again) significantly outperformed their conventional
counterparts in the developed world over the first half of 1997. Sluggish GDP
growth and low interest rates in Europe and Japan have continued to finance a
pool of global liquidity searching for higher yields and returns. For several
reasons, emerging bond markets have proved an extremely attractive target for
these capital flows. Investors have realized (we believe rightly) that as long
as U.S. Treasuries are reasonably stable, then, even without the spread
narrowing, emerging market bonds are capable of delivering superior returns.
Second, the emerging bond markets have attracted a wide variety of investors
such as pension funds, insurance companies, and global fixed income portfolios.
These longer-term investors provided the market the credibility we believe it
deserves. Third, the economic fundamentals of many emerging countries have
continued to improve, driven by political willingness to implement IMF
(International Monetary Fund)-sponsored reforms.
OUTLOOK
Within developed markets, we believe U.S. Treasuries, together with Canadian and
Australian bonds, represent good value. Meanwhile, we believe the peripheral
continental European bond markets remain vulnerable to any disappointment on
EMU. In Japan, we continue to find yen bonds fundamentally unattractive and
believe the yen is likely to remain the weakest of the major currencies.
Notwithstanding the Japanese government's presently tight fiscal policy, we
believe it may face a major challenge in balancing its budget over the medium
term.
In emerging bond markets, we believe it is highly unlikely that the 30% to 40%
returns witnessed in 1995 and 1996 will be repeated. Nevertheless, economic
fundamentals of emerging market countries are better now than in 1994 (prior to
the Mexican peso crisis) -- growth rates are higher while inflation rates and
budget and current account deficits are generally lower. Additionally, their
capacity to service debt is greater. We expect ongoing improvements in emerging
economies' fundamental economic conditions, in general, will continue to justify
lower yield spreads to U.S. Treasuries.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE STRATEGIC INCOME JPM GLOBAL GOVERNMENT BOND JP MORGAN EMBI
<S> <C> <C> <C>
10-Feb-93 $10,000 $10,000 $10,000
28-Feb-93 10,008 10,209 10,118
31-Mar-93 10,078 10,366 10,646
30-Apr-93 10,082 10,555 10,860
31-May-93 10,143 10,622 11,229
30-Jun-93 10,521 10,630 11,622
31-Jul-93 10,871 10,635 12,106
31-Aug-93 11,459 10,950 12,349
30-Sep-93 11,502 11,065 12,511
31-Oct-93 12,168 11,060 13,565
30-Nov-93 11,986 10,979 13,429
31-Dec-93 12,755 11,092 14,249
31-Jan-94 12,842 11,196 14,288
28-Feb-94 11,553 11,073 13,099
31-Mar-94 10,506 11,022 11,601
30-Apr-94 10,396 11,014 11,606
31-May-94 10,569 10,923 12,408
30-Jun-94 10,447 11,052 11,409
31-Jul-94 10,482 11,156 11,689
31-Aug-94 10,856 11,127 12,524
30-Sep-94 11,053 11,183 12,647
31-Oct-94 10,975 11,350 12,289
30-Nov-94 10,878 11,207 12,414
31-Dec-94 10,575 11,233 11,588
31-Jan-95 10,487 11,461 11,187
28-Feb-95 10,438 11,756 10,604
31-Mar-95 10,579 12,354 10,304
30-Apr-95 11,130 12,551 11,411
31-May-95 11,584 12,901 12,416
30-Jun-95 11,615 12,982 12,657
31-Jul-95 11,614 13,043 12,666
31-Aug-95 11,614 12,681 12,965
30-Sep-95 11,884 12,966 13,411
31-Oct-95 11,946 13,093 13,274
30-Nov-95 12,233 13,239 13,738
31-Dec-95 12,637 13,403 14,779
31-Jan-96 13,170 13,265 16,081
29-Feb-96 12,686 13,188 14,951
31-Mar-96 12,804 13,168 15,334
30-Apr-96 13,109 13,119 16,106
31-May-96 13,273 13,132 16,306
30-Jun-96 13,472 13,247 16,758
31-Jul-96 13,700 13,491 16,885
31-Aug-96 13,995 13,547 17,433
30-Sep-96 14,518 13,622 18,522
31-Oct-96 14,760 13,892 18,570
30-Nov-96 15,278 14,090 19,610
31-Dec-96 15,364 13,992 19,828
31-Jan-97 15,473 13,642 20,544
28-Feb-97 15,570 13,548 20,913
31-Mar-97 15,134 13,445 20,097
30-Apr-97 15,316 13,369 20,779
31-May-97 15,721 13,685 21,614
30-Jun-97 16,046 13,840 22,117
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The J.P. Morgan Global Government Bond Index is a market value-weighted
average of government bonds from 13 major bond markets. It includes the
effect of reinvested coupons and is measured in U.S. dollars.
(2) The J.P. Morgan EMBI Index is a market value-weighted average of Brady bonds
from nine emerging bond markets. It includes the effect of reinvested
coupons and is measured in U.S. dollars.
The indices are unmanaged, not available for direct investment and do not
include the effects of sales charges and professional management fees.
1
<PAGE>
GT GLOBAL
VARIABLE GLOBAL GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 6.18% -0.82%
Life of Fund 3.29% 2.67%
Fund Performance
Average Annualized
1 Year 7.67%
Life of Fund 4.72%
</TABLE>
PERFORMANCE
In a generally difficult environment for global fixed income, the Fund returned
- -0.22% for the six months ended June 30, 1997. The Fund's benchmark, the J.P.
Morgan Global Government Index,(1) returned -1.09% over the same investment
period.
Our strategy during the past six months was to overweight European fixed income
markets while underinvesting in both the Japanese and U.S. markets. This
allocation worked well for the Fund, as European bond yields fell in response to
better-than-expected economic fundamentals and investors' growing optimism over
the on-time start of European Monetary Union and the countries expected to be
included. On the other hand, the Fund's underweighted position in Japan
detracted from its overall returns relative to the index.
Beginning in February, most of our performance expectations for European markets
were met, and we began to lower our allocations in favor of selected
English-speaking markets like the UK, Australia and New Zealand. We also
minimized the negative impact of a rising U.S. dollar by hedging a substantial
portion of our European bond investments and avoiding significant Japanese yen
investments.
MARKET REVIEW
Performance of global fixed income markets provided stark contrast between the
first quarter of the year when concerns of further hikes in U.S. interest rates
were prevalent, and the second quarter when markets focused on continued growth
and the absence of inflation.
In the first quarter, despite no notable inflationary pressures, the Federal
Reserve looked to demand growth as a leading indicator of future inflation, and
in March the Federal Open Markets Committee (FOMC) tightened the Fed funds rate
by 25 basis points, to 5.5%. U.S. bond investors sold bonds in response to
strong economic growth indicators, and 10-year yields rose from a low of 6% to a
high of 6.9% -- sending a wave of repercussions throughout global fixed income
markets.
Conversely, the turn of events in the second quarter was influenced by several
themes, including healthy economic growth in the U.S. and economic recovery in
Germany and Japan, albeit from a low base. Additionally, while economic growth
has continued to strengthen, inflation on a global basis has remained largely
absent, with excess capacity and economic liberalization in emerging economies
helping to keep a lid on it. Low inflation has led to rallies in U.S. and
European bonds while yields remain at all-time lows in Japan.
OUTLOOK
Our long-term outlook remains positive on global growth and inflation. We
believe any potential global inflation will be limited by a mix of
technology-led productivity growth, global economic liberalization and prudent
fiscal and monetary policies. We continue to see opportunities, on a
dollar-hedged basis, in European and dollar-linked markets. Two opportunities we
like in investment-grade emerging markets are Mexico and South Africa, where we
are very positive on fundamentals. In the near term, however, we are cautious
about potential for a pull-back in both global bond prices and the U.S. dollar
given their recent rise.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME JP MORGAN GLOBAL GOVERNMENT BOND
<S> <C> <C>
10-Feb-93 $10,000 $10,000
28-Feb-93 10,008 10,209
31-Mar-93 9,935 10,366
30-Apr-93 9,952 10,555
31-May-93 10,011 10,622
30-Jun-93 10,239 10,630
31-Jul-93 10,319 10,635
31-Aug-93 10,664 10,950
30-Sep-93 10,642 11,065
31-Oct-93 10,820 11,060
30-Nov-93 10,707 10,979
31-Dec-93 10,925 11,092
31-Jan-94 11,030 11,196
28-Feb-94 10,511 11,073
31-Mar-94 10,228 11,022
30-Apr-94 10,049 11,014
31-May-94 9,846 10,923
30-Jun-94 10,023 11,052
31-Jul-94 10,084 11,156
31-Aug-94 9,999 11,127
30-Sep-94 10,034 11,183
31-Oct-94 10,227 11,350
30-Nov-94 10,162 11,207
31-Dec-94 9,975 11,233
31-Jan-95 10,078 11,461
28-Feb-95 10,309 11,756
31-Mar-95 10,626 12,354
30-Apr-95 10,877 12,551
31-May-95 11,112 12,901
30-Jun-95 11,076 12,982
31-Jul-95 11,089 13,043
31-Aug-95 10,887 12,681
30-Sep-95 11,067 12,966
31-Oct-95 11,196 13,093
30-Nov-95 11,376 13,239
31-Dec-95 11,556 13,403
31-Jan-96 11,556 13,265
29-Feb-96 11,323 13,188
31-Mar-96 11,293 13,168
30-Apr-96 11,277 13,119
31-May-96 11,262 13,132
30-Jun-96 11,371 13,247
31-Jul-96 11,510 13,491
31-Aug-96 11,560 13,547
30-Sep-96 11,713 13,622
31-Oct-96 12,007 13,892
30-Nov-96 12,281 14,090
31-Dec-96 12,269 13,992
31-Jan-97 12,092 13,642
28-Feb-97 12,065 13,548
31-Mar-97 11,968 13,445
30-Apr-97 11,902 13,369
31-May-97 12,077 13,685
30-Jun-97 12,242 13,840
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the J.P. Morgan Government Bond Index for the same time period. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not charges and expenses of the separate account. Past performance
is no guarantee of future results.
(1) The J.P. Morgan Global Government Bond Index is a market value-weighted
average of government bonds from 13 major bond markets. It includes the
effect of reinvested coupons and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges or professional management fees.
2
<PAGE>
GT GLOBAL
VARIABLE U.S. GOVERNMENT INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 5.14% -1.86%
Life of Fund 2.71% 2.08%
Fund Performance
Average Annualized
1 Year 6.61%
Life of Fund 4.16%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1997, was 2.24%; total
return for the J.P. Morgan U.S. Government Bond Index(1) over the same period
was 2.78%.
MARKET REVIEW
U.S. fixed income markets continued their roller coaster ride during the first
six months of 1997. Yields on fixed income securities rose during the first
three months of the year as the pace of economic growth increased during the
quarter. However, this growth spurt moderated in the second quarter, and fears
of runaway growth coupled with accelerating inflation subsided. As a result,
yields on 90-day Treasury bills ended the six-month period where they began.
While fixed income markets have been experiencing short-term volatility,
longer-term interest rate swings have become much more moderate than they were
in the 1980s and early 1990s. This trend results from the current economic
environment, characterized by smaller swings in economic activity and benign
inflation. Steadily increasing worker productivity, reduced backlogs due to
better inventory management, and freer trade and capital flows have all
contributed to stable economic growth with decelerating inflation.
Risk premiums have been steadily declining as economic and inflation risks have
temporarily lessened. This has been manifested in tighter yield spreads across
different quality instruments -- the pickup in yield that accompanies moving
down in quality has declined. Also, the yield curve has flattened, reducing the
yield pickup earned by purchasing longer dated maturities.
OUTLOOK
While this financial nirvana is not forecast to change in the near term, we also
know it will not last forever. Accordingly, we have continued to maintain a
high-quality bias in the portfolio; the average maturity has been kept on the
shorter side since we are not sacrificing any yield to be defensive in this
environment. We continue to believe the economy will grow at a trend rate with
low inflation but inflation scares are likely to continue, and short-term
volatility will be evident even though the longer-term trend in rates remains
intact. The real rate of return available to short-term, high-quality
investments continues to be attractive, and the Fund's management will provide
the opportunity to participate in this segment of the market.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE JP MORGAN
US GOVERNMENT US GOVERNMENT
SECURITIES BOND
<S> <C> <C>
10-Feb-93 $10,000 $10,000
28-Feb-93 10,008 10,195
31-Mar-93 9,932 10,230
30-Apr-93 9,973 10,314
31-May-93 9,977 10,291
30-Jun-93 10,188 10,501
31-Jul-93 10,286 10,551
31-Aug-93 10,933 10,767
30-Sep-93 10,916 10,812
31-Oct-93 10,992 10,847
30-Nov-93 10,656 10,745
31-Dec-93 10,638 10,792
31-Jan-94 10,891 10,928
28-Feb-94 10,444 10,711
31-Mar-94 10,110 10,501
30-Apr-94 9,994 10,420
31-May-94 9,963 10,414
30-Jun-94 9,963 10,399
31-Jul-94 10,107 10,569
31-Aug-94 10,125 10,583
30-Sep-94 9,980 10,457
31-Oct-94 9,953 10,451
30-Nov-94 9,925 10,420
31-Dec-94 9,971 10,479
31-Jan-95 10,129 10,661
28-Feb-95 10,296 10,886
31-Mar-95 10,343 10,958
30-Apr-95 10,446 11,092
31-May-95 10,805 11,504
30-Jun-95 10,880 11,596
31-Jul-95 10,832 11,564
31-Aug-95 10,947 11,688
30-Sep-95 11,034 11,792
31-Oct-95 11,168 11,958
30-Nov-95 11,304 12,136
31-Dec-95 11,440 12,296
31-Jan-96 11,519 12,381
29-Feb-96 11,313 12,155
31-Mar-96 11,204 12,063
30-Apr-96 11,113 11,997
31-May-96 11,090 11,981
30-Jun-96 11,215 12,119
31-Jul-96 11,233 12,149
31-Aug-96 11,240 12,137
30-Sep-96 11,399 12,319
31-Oct-96 11,660 12,568
30-Nov-96 11,851 12,773
31-Dec-96 11,695 12,658
31-Jan-97 11,716 12,681
28-Feb-97 11,715 12,696
31-Mar-97 11,583 12,570
30-Apr-97 11,732 12,751
31-May-97 11,828 12,864
30-Jun-97 11,957 13,010
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the JP Morgan US Government Bond Index for the same period. It assumes a
hypothetical $10,000 initial investment in the Fund and reflects all Fund
expenses but not expenses and charges of the separate account. Past performance
is no guarantee of future results.
(1) The J.P. Morgan U.S. Government Bond Index is a market value-weighted index
of U.S. Treasury issues with remaining maturities of at least one year. All
returns are calculated with reinvested coupons and are expressed in U.S.
dollar terms.
The index is unmanaged, not available for direct investment and does not
include the effect of sales charges or professional management fees.
3
<PAGE>
GT GLOBAL
VARIABLE LATIN AMERICA FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 29.22% 22.22%
Life of Fund 13.47% 13.02%
Fund Performance
Average Annualized
1 Year 31.04%
Life of Fund 15.06%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1997, was 23.78%. The
Morgan Stanley Capital International (MSCI) Emerging Markets Global Latin
America Index(1) rose 40.50% over the same period.
While the Fund has participated in the advances made by Latin American markets
since the beginning of 1997, its underperformance relative to the index is
largely due to underweighting privatization candidates in Brazil, which
performed very strongly, and poor stock selection in Mexico.
The Fund has been undergoing significant restructuring over the second quarter
of 1997, in conjunction with a revamping of our approach to managing emerging
market products. Under the new structure, the Fund is managed by a team based in
London. These managers collectively determine the Fund's asset allocation, as
well as individually manage one or more country portfolios within the Fund. As
part of that evolution, the focus of the Fund is now more on risk-adjusted
returns and, therefore, the tracking error of the Fund relative to its benchmark
now operates within a prescribed range at country and stock levels. The overall
aim of these changes is a more diversified portfolio with a more disciplined
approach for monitoring risk relative to the Fund's benchmark.
MARKET REVIEW
Of late, stock markets in Latin America have performed very well overall. A
pickup in general confidence in the region has enabled several governments to
undertake successful bond issues. Mexico's stock markets rallied as investors
focused on the recovery unfolding in many sectors of the domestic economy. The
Brazilian market flourished under a host of successes, including a landmark US$3
billion issue of a 30-year bond. Inflation fell to 7% -- its lowest level in 30
years -- and constitutional changes will permit President Cardoso to run for a
second term, which augurs well for public finance reform. Meanwhile, Argentine
stocks made good progress as further signs of economic recovery emerged.
After a difficult period in late 1996, the bourses of Chile, Colombia and Peru
have advanced. In Chile, investors have been encouraged by the likelihood of
further easings in interest rates later this year and the outlook for 1998
earnings growth. A reduction in inflation has been a key factor in both Colombia
and Peru. Venezuela's stock market also rallied strongly in the second quarter,
after a quiet start to the year, on increasing optimism for structural reform.
OUTLOOK
Our longer-term outlook for Latin American equities remains favorable, as the
region continues to reap the benefits of structural reform and economic
fundamentals continue to improve. The Fund is currently positioned to try to
take advantage of the economic strength evident in Mexico by focusing on the
infrastructure and consumer sectors. We have also been increasing our positions
in Chile in response to its strong fundamentals, the favorable interest rate
outlook and the reemergence of earnings growth within the market. Additionally,
the Fund continues to be positioned for growth in the Venezuelan market.
We believe the greatest risks to Latin American markets continue to be external,
keeping in mind that many of these markets can be volatile. These concerns
aside, our outlook remains positive, although we do not expect returns to keep
up the pace of the past two years.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE LATIN AMERICA MSCI EMG LATIN AMERICA
<S> <C> <C>
10-Feb-93 $10,000 $10,000
28-Feb-93 10,008 9,892
31-Mar-93 9,983 10,617
30-Apr-93 10,017 10,112
31-May-93 10,167 10,268
30-Jun-93 10,017 10,938
31-Jul-93 10,358 11,256
31-Aug-93 10,875 12,224
30-Sep-93 11,192 12,382
31-Oct-93 12,000 12,832
30-Nov-93 12,767 13,722
31-Dec-93 14,733 15,509
31-Jan-94 17,058 17,941
28-Feb-94 16,658 17,351
31-Mar-94 15,708 16,118
30-Apr-94 14,075 14,901
31-May-94 14,285 15,750
30-Jun-94 13,731 14,692
31-Jul-94 14,779 15,971
31-Aug-94 17,766 18,560
30-Sep-94 18,688 19,309
31-Oct-94 18,395 18,359
30-Nov-94 18,395 17,840
31-Dec-94 16,080 14,938
31-Jan-95 13,765 13,231
28-Feb-95 12,070 11,235
31-Mar-95 10,820 10,855
30-Apr-95 12,498 12,469
31-May-95 12,339 12,712
30-Jun-95 12,630 12,923
31-Jul-95 13,102 13,377
31-Aug-95 13,190 13,541
30-Sep-95 12,817 13,410
31-Oct-95 11,658 12,301
30-Nov-95 11,736 12,519
31-Dec-95 12,198 12,916
31-Jan-96 13,377 14,252
29-Feb-96 12,758 13,432
31-Mar-96 12,994 13,607
30-Apr-96 13,740 14,354
31-May-96 14,084 14,809
30-Jun-96 14,112 15,176
31-Jul-96 13,496 14,574
31-Aug-96 14,031 14,993
30-Sep-96 14,455 15,326
31-Oct-96 14,455 15,170
30-Nov-96 14,607 15,298
31-Dec-96 14,940 15,753
31-Jan-97 16,101 17,285
28-Feb-97 16,767 18,423
31-Mar-97 16,282 18,143
30-Apr-97 16,404 19,026
31-May-97 17,332 20,365
30-Jun-97 18,493 22,132
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Emerging Markets Global Latin America Index for the same period. It
assumes a hypothetical $10,000 initial investment in the Fund and reflects all
Fund expenses but not expenses and charges of the separate account. Past
performance is no guarantee of future results.
(1) The MSCI Emerging Markets Global Latin America Index is a market
value-weighted average of the performance of securities listed on the stock
exchanges of Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.
The index is measured in U.S. dollars, has an aggregate market
capitalization of $374.04 billion and includes the effect of reinvested
dividends.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
4
<PAGE>
GT GLOBAL
VARIABLE GROWTH & INCOME FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 20.31% 13.31%
Life of Fund 10.86% 10.38%
Fund Performance
Average Annualized
1 Year 22.00%
Life of Fund 12.42%
</TABLE>
PERFORMANCE
For the six-month reporting period to June 30, 1997, the Fund's total return was
8.71%. Total return over the same period was 15.62% for the Morgan Stanley
Capital International (MSCI) World Index(1) and -1.09% for the J.P. Morgan
Global Government Bond Index.(2)
While superior returns were achieved relative to the J.P. Morgan Global
Government Bond Index as a result of the Fund's significant allocation to
equities, the Fund underperformed the MSCI World Index because of its holdings
in global fixed income. Among equity holdings, financial and energy stocks
experienced strong gains. The Fund also benefited from its orientation toward
larger cap stocks, which outperformed smaller cap stocks on a global basis.
MARKET REVIEW
In addition to the supportive environment of accelerated economic growth, low
inflation and low interest rates, many European equities markets were propelled
to new highs as corporate restructuring and increasing emphasis on creation of
shareholder value gained ground.
Although performance of UK equities, while still respectable, lagged many of its
continental counterparts, the Fund maintains a significant weighting in this
market for a number of reasons. Historically, the UK has the most
shareholder-oriented corporate sector in the world outside the U.S. It also has
many distinguished, globally oriented companies that enjoy brand recognition and
have considerable pricing power. Finally, the new Labour government has turned
over responsibility for setting interest rates to the Bank of England, signaling
a commitment to low inflation.
Over the period, we increased the Fund's exposure to the U.S. and the
Netherlands. In the U.S., we feel that due to the expanding labor market,
together with improving productivity the economy should be able to grow at
around 3% annually without increasing inflationary pressures -- first quarter
corporate earnings were exceptionally favorable. And while the U.S. stock market
may not have the same upside potential as other markets that have performed less
well over the last two years, we believe stocks with strong global positions and
good earnings growth should continue to provide good returns. Meanwhile, the
Netherlands remains home to some of what we see as the best companies, many of
which we own.
On the fixed income side, our strategy has been to reduce the overweighting we
had through much of last year in some of the peripheral European markets such as
Italy and Spain, as those markets overshot our targets. These markets were
running very fast, not just on fundamental economics, but also on speculation
about European Monetary Union (EMU) and membership in the Exchange Rate
Mechanism (ERM).
OUTLOOK
Low inflation, attractive valuations, restructuring and large corporations
taking advantage of the trend toward globalization are major trends that have
worked to the Fund's advantage over the last several years; they appear set to
continue.
On the fixed income side, the period has seen some retrenchment and, at least
over the shorter term, we believe we are moving into a slightly less
bond-friendly environment. We currently expect the bias of the portfolio to
continue to shift out of Europe, both core and peripheral markets, and into
dollar-bloc countries -- Canada, Australia, the U.S. and New Zealand, for
example.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE GROWTH & INCOME MSCI WORLD JP MORGAN GLOBAL GOVERNMENT BOND
<S> <C> <C> <C>
10-Feb-93 10,000 10,000 10,000
28-Feb-93 10,008 10,102 10,209
31-Mar-93 10,228 10,689 10,366
30-Apr-93 10,261 11,187 10,555
31-May-93 10,361 11,447 10,622
30-Jun-93 10,437 11,352 10,630
31-Jul-93 10,673 11,588 10,635
31-Aug-93 11,145 12,121 10,950
30-Sep-93 11,155 11,899 11,065
31-Oct-93 11,460 12,229 11,060
30-Nov-93 11,333 11,539 10,979
31-Dec-93 11,775 12,106 11,092
31-Jan-94 12,135 12,906 11,196
28-Feb-94 11,639 12,741 11,073
31-Mar-94 11,312 12,194 11,022
30-Apr-94 11,467 12,573 11,014
31-May-94 11,355 12,608 10,923
30-Jun-94 11,278 12,575 11,052
31-Jul-94 11,573 12,816 11,156
31-Aug-94 11,721 13,204 11,127
30-Sep-94 11,455 12,860 11,183
31-Oct-94 11,796 13,228 11,350
30-Nov-94 11,394 12,656 11,207
31-Dec-94 11,439 12,781 11,233
31-Jan-95 11,360 12,592 11,461
28-Feb-95 11,580 12,778 11,756
31-Mar-95 11,590 13,396 12,354
30-Apr-95 11,821 13,866 12,551
31-May-95 12,114 13,987 12,901
30-Jun-95 12,059 13,986 12,982
31-Jul-95 12,417 14,688 13,043
31-Aug-95 12,166 14,363 12,681
30-Sep-95 12,471 14,785 12,966
31-Oct-95 12,597 14,555 13,093
30-Nov-95 12,813 15,063 13,239
31-Dec-95 13,211 15,506 13,403
31-Jan-96 13,301 15,789 13,265
29-Feb-96 13,392 15,888 13,188
31-Mar-96 13,410 16,156 13,168
30-Apr-96 13,483 16,538 13,119
31-May-96 13,647 16,556 13,132
30-Jun-96 13,694 16,642 13,247
31-Jul-96 13,602 16,057 13,491
31-Aug-96 13,951 16,245 13,547
30-Sep-96 14,200 16,884 13,622
31-Oct-96 14,653 17,005 13,892
30-Nov-96 15,245 17,961 14,090
31-Dec-96 15,368 17,676 13,992
31-Jan-97 15,247 17,892 13,642
28-Feb-97 15,489 18,101 13,548
31-Mar-97 15,555 17,746 13,445
30-Apr-97 15,649 18,329 13,369
31-May-97 16,295 19,464 13,685
30-Jun-97 16,706 20,438 13,840
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Past performance is no guarantee of future
results.
(1) MSCI World Index is a market value-weighted average of the performance of
1,554 securities listed on major world stock exchanges -- the U.S., Europe,
Canada, Australia, New Zealand and the Far East. It includes the effect of
reinvested dividends and is measured in U.S. dollars.
(2) J.P. Morgan Global Government Bond Index is a market value-weighted average
of government bonds from 13 major bond markets. It includes the effect of
reinvested coupons and is measured in U.S. dollars.
The indices are unmanaged, not available for direct investment and do not
incur sales charges and professional management fees.
5
<PAGE>
GT GLOBAL
VARIABLE TELECOMMUNICATIONS FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: October 18, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 6.95% -0.05%
Life of Fund 17.71% 17.01%
Fund Performance
Average Annualized
1 Year 8.44%
Life of Fund 19.36%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1997, the Fund's total return was 11.72%.
Total return over the same investment period was 12.01% for the MSCI
Telecommunications Index(1) and 15.62% for the MSCI World Index.(2) The more
comprehensive Salomon Brothers Global Telecommunications Index,(3) which has a
component of emerging market stocks, returned 19.37% over the period.
Relative to its benchmarks, the Fund generally suffered as a result of its
exposure to telecommunications technology, which is not represented in either
the MSCI Telecommunications Index or the Salomon Brothers Global
Telecommunications Index.
MARKET REVIEW
In general, telecommunications technology was hit hard in the first quarter of
this year on the back of a slowdown in demand for networking products. Having
earlier reduced our tech exposure because of valuation concerns, we are now
growing more optimistic as valuations are becoming more attractive. We see
promising developments in the wireless infrastructure area as well as in a
number of other areas, including switching, transmission equipment and some of
the basic wireline infrastructure stocks.
On the legislation front, although deregulation in the U.S. telecommunications
industry was passed over a year ago, we've been disappointed by the delay in
results. A number of court challenges have been mounted, and the FCC has had its
hands full because specific provisions were intentionally left vague to get the
bill passed.
However, increasing political pressure is pushing the FCC to move things ahead,
and we expect some decisions will be forthcoming. The key from an investment
perspective is timing -- when will the log jam be broken and how soon will the
market perceive that competition is moving forward? In our opinion, the real
catalyst for a change in thinking will be FCC acceptance of one of the RBOCs'
(regional bell operating companies) petitions to provide long distance, which we
believe has a good chance of occurring in the second half of 1997 or first half
of 1998. This could be particularly positive for a number of the Fund's
equipment stocks and also some of the service stocks.
Meanwhile, emerging market telcos have enjoyed an encouraging year. We think the
downtrend and sideways movement prominent in emerging markets over the last
three years have likely run their course. Already, we've seen positive
developments in the competitiveness of some specific emerging market telcos. The
issue of declining accounting rates as a result of FCC pressure remains,
however, and we have avoided companies we think will be affected, including some
of the Asian telephone companies we believe may be hit hard over time. Also,
emerging markets' telecom stocks remain particularly sensitive to changes in
demand for emerging market equities because they are typically the largest
capitalization stocks in any given market.
OUTLOOK
While the telecommunications arena has been a difficult one over the last couple
of years, we remain optimistic about the industry's future and see very
attractive valuations in almost every area in which we invest, including most of
the technology stocks we follow. For now, we will concentrate on selected
equipment manufacturers and service providers in cellular and emerging markets
landline, seeking to produce strong performance over the remainder of the year.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE MSCI MSCI
TELECOMMUNICATIONS WORLD TELECOMMUNICATIONS
<S> <C> <C> <C>
18-Oct-93 $ 10,000 $ 10,000 $ 10,000
31-Oct-93 10,008 10,020 9,995
30-Nov-93 9,942 9,455 9,469
31-Dec-93 10,892 9,919 9,640
31-Jan-94 11,358 10,575 10,078
28-Feb-94 11,033 10,440 9,421
31-Mar-94 10,167 9,991 9,138
30-Apr-94 10,402 10,302 9,449
31-May-94 10,485 10,330 9,517
30-Jun-94 10,226 10,303 9,485
31-Jul-94 10,927 10,501 9,783
31-Aug-94 11,662 10,819 10,105
30-Sep-94 11,562 10,537 9,830
31-Oct-94 11,871 10,838 10,062
30-Nov-94 11,370 10,370 9,390
31-Dec-94 11,670 10,473 9,382
31-Jan-95 11,529 10,317 9,610
28-Feb-95 11,337 10,470 9,622
31-Mar-95 11,345 10,977 9,829
30-Apr-95 11,662 11,361 9,975
31-May-95 12,422 11,461 10,147
30-Jun-95 13,422 11,459 10,334
31-Jul-95 14,552 12,035 10,600
31-Aug-95 14,920 11,769 10,863
30-Sep-95 15,399 12,114 11,533
31-Oct-95 14,166 11,926 11,420
30-Nov-95 14,423 12,342 11,519
31-Dec-95 14,432 12,705 11,903
31-Jan-96 14,594 12,937 12,136
29-Feb-96 15,579 13,018 12,061
31-Mar-96 15,476 13,237 11,908
30-Apr-96 17,231 13,551 12,317
31-May-96 18,018 13,565 12,215
30-Jun-96 17,746 13,636 12,211
31-Jul-96 16,208 13,157 11,419
31-Aug-96 16,939 13,311 11,503
30-Sep-96 17,024 13,834 11,666
31-Oct-96 16,255 13,933 11,925
30-Nov-96 17,024 14,717 12,603
31-Dec-96 17,223 14,483 12,916
31-Jan-97 18,524 14,660 13,072
28-Feb-97 17,603 14,831 13,242
31-Mar-97 16,673 14,541 12,856
30-Apr-97 16,844 15,018 13,027
31-May-97 18,363 15,948 13,855
30-Jun-97 19,243 16,746 14,468
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI Telecommunications Index is a market value-weighted average of the
performance of 29 securities listed on 10 major stock exchanges. It includes
the effect of reinvested dividends and is measured in U.S. dollars.
(2) The MSCI World Index is a market value-weighted average of the performance
of 1,554 securities listed on major world stock exchanges -- the U.S.,
Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
(3) The Salomon Brothers Global Telecommunications Index is a market
value-weighted average of the performance of 80 securities. It consists of
telecommunications companies with total adjusted market capitalizations of
US$100 million or more, including those in emerging markets. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
The indices are unmanaged, not available for direct investment and do not
include the effects of sales charges and professional management fees.
6
<PAGE>
GT GLOBAL
VARIABLE EMERGING MARKETS FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: July 5, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 18.02% 11.02%
Life of Fund 10.11% 8.71%
Fund Performance
Average Annualized
1 Year 19.67%
Life of Fund 11.65%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1997, the Fund's total return was 14.55%.
Total return for the Morgan Stanley Capital International (MSCI) Emerging
Markets Global Index was 18.00%, while the International Finance Company (IFC)
Global Composite(1) returned 17.09% for the period.
The Emerging Markets Fund has undergone significant restructuring in 1997, in
conjunction with a revamping of our approach to managing emerging market
products. As part of the evolutionary change, risk control guidelines have been
enhanced and stock selection is also more disciplined -- stocks are ranked on
our Global Stock Research Database and price targets are established by country
analysts. The use of these rankings is compulsory for the construction of
country portfolios by investment managers. These changes are intended to
strengthen management of the total risk and, as a result, to maximize the
risk-adjusted return relative to its benchmark.
During this period of transition, the Fund underperformed the indices, partially
as a result of its underweighted position in Taiwan. Additionally, the Fund's
exposure to the Czech Republic -- a market burdened by ongoing difficulties --
and poor stock selection in Israel and Portugal, negatively impacted returns.
The Fund's considerable cash position also negatively affected performance.
MARKET REVIEW
In general, Latin American markets enjoyed a strong six months as governments
regained credibility damaged by the Mexican peso crisis at the beginning of
1995. In Brazil, the region's top-performing market, investors focused on the
government's progress towards the privatization of key assets.
On the other hand, the fortunes of countries in Asia were considerably more
mixed. Stocks in Hong Kong and Taiwan that are well placed to benefit from the
acceleration of the Chinese economy have generally risen strongly. In Indonesia,
investors were encouraged by the electoral victory of Golkar, the ruling
political party. Share prices finally bounced in Korea as the short-term rally
in the yen provided a boost to the country's export competitiveness. The Thai
stock market, in contrast, continued to be weighed down by a devaluation in its
currency and by crises in the property and banking sectors. Fears that Malaysia
and the Philippines would be affected by similar problems caused share prices in
those countries to fall as well.
Elsewhere, in Russia share prices soared as President Yeltsin's consolidation of
power augured well for future economic reform. The markets of Greece and
Portugal advanced, in line with those of other peripheral European countries
such as Spain. The Indian market also performed well, thanks to growing foreign
investment and continuing falls in interest rates.
OUTLOOK
Although volatile, we continue to believe emerging equity markets offer
opportunities for attractive returns. We expect continued strength will be
underpinned by a supportive global financial environment in which inflationary
pressures will, for the time being, remain minimal throughout the world. As a
result, we feel central banks in the developed world will find little reason to
raise interest rates. Emerging markets should also benefit from plenty of
liquidity, which can support the prices of financial assets.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MSCI
GT GLOBAL EMERGING IFC
VARIABLE MARKETS GLOBAL
EMERGING MARKETS GLOBAL COMPOSITE
<S> <C> <C> <C>
5-Jul-94 $ 10,000 $10,000 $ 10,000
31-Jul-94 10,025 10,552 10,524
31-Aug-94 10,408 11,636 11,669
30-Sep-94 11,358 11,952 12,035
31-Oct-94 11,400 11,661 11,780
30-Nov-94 10,917 11,115 11,276
31-Dec-94 10,012 10,535 10,653
31-Jan-95 9,095 9,381 9,442
28-Feb-95 8,337 9,214 9,324
31-Mar-95 8,135 9,343 9,286
30-Apr-95 8,867 9,535 9,432
31-May-95 9,406 9,870 9,789
30-Jun-95 9,398 9,846 9,770
31-Jul-95 9,886 9,995 9,956
31-Aug-95 9,381 9,664 9,568
30-Sep-95 9,356 9,771 9,627
31-Oct-95 9,103 9,446 9,343
30-Nov-95 8,724 9,210 9,077
31-Dec-95 9,257 9,566 9,340
31-Jan-96 9,896 10,001 9,821
29-Feb-96 10,381 9,873 9,759
31-Mar-96 10,857 10,013 9,914
30-Apr-96 11,699 10,730 10,652
31-May-96 11,853 10,522 10,447
30-Jun-96 11,614 10,660 10,600
31-Jul-96 11,155 9,937 9,939
31-Aug-96 11,291 10,156 10,160
30-Sep-96 11,487 10,244 10,251
31-Oct-96 11,521 9,954 10,022
30-Nov-96 12,133 10,133 10,166
31-Dec-96 12,133 10,139 10,077
31-Jan-97 12,635 10,800 10,753
28-Feb-97 13,112 11,236 11,242
31-Mar-97 12,984 10,960 11,044
30-Apr-97 12,984 11,038 11,045
31-May-97 13,393 11,311 11,226
30-Jun-97 13,899 11,965 11,799
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI Emerging Markets and IFC Indices are market value-weighted averages
of the performance of securities listed on the exchanges of 27 and 26
countries, respectively. They include the effect of reinvested dividends and
are measured in U.S. dollars. The IFC index is substantially similar to the
MSCI index, except that larger companies are represented in the IFC index.
The indices are unmanaged, not available for direct investment and do not
include the effects of sales charges and professional management fees.
7
<PAGE>
GT GLOBAL
VARIABLE INFRASTRUCTURE FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: January 31, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 12.44% 5.44%
Life of Fund 16.94% 14.75%
Fund Performance
Average Annualized
1 Year 14.52%
Life of Fund 18.07%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1997, the Fund's total return was 8.08%. Over
the same investment period, the Morgan Stanley Capital International (MSCI)
World Index(1) returned a total of 15.62%. The index is designed to represent
the performance of all markets, however, and does not reflect the Fund's
concentration in infrastructure industries.
The Fund's returns were supported by general strength in Latin American markets,
and performance was enhanced by privatizations, particularly in Brazil, where
our investments in power companies have done very well. Elsewhere, selective
companies in the U.S., Finland, Spain, Greece, Australia and India also
benefited the Fund.
MARKET REVIEW
Latin American markets prospered under the inflow of foreign portfolio
investments. Depending on the country in question, foreign investors were
attracted by the prospects of further economic reform and/or the reality of a
pickup in domestic demand. Most of the regional markets performed well, with
Brazil leading the way. The Brazilian market flourished under a host of
successes, including a landmark US$3 billion issue of a 30-year bond. Inflation
fell to 7% -- its lowest level in 30 years -- and constitutional changes
permitted President Cardoso to run for a second term. This augurs well for
public finance reform.
A number of developments in the emerging markets of Asia, however, hampered
performance, although successful infrastructure investments in Hong Kong and
India offset some of the declines. Sentiment in East Asia, for the most part,
was dampened by concerns over property speculation and the feverish pace of
credit expansion. Additionally, many of these economies have witnessed a
slowdown in demand for their exports accompanied by a strengthening U.S. dollar
(several of these countries' currencies are tied to the dollar), which has made
many of their products relatively more expensive.
OUTLOOK
First and foremost, the global financial environment remains benign. The absence
of global inflationary pressures suggests interest rates are unlikely to
increase by much in the developed world, except in the UK, which has been
raising rates. Easy money assists growth, exporters (by way of softening
currencies) and chances of participation in European Monetary Union (EMU).
In Asia, we still see attractive themes throughout the region. Infrastructure
development in Malaysia, the economic upturn in China and reform in the
Philippines are three trends we are attempting to exploit. Above all, as the
recent general strength of the (hugely diverse) emerging European, Middle East
and African (EMEA) markets suggests, investors are alert to opportunities that
develop when particular countries initiate economic reform.
Although their markets can be volatile, emerging economies continue to stand out
as areas of significant potential. As these nations enjoy increasing stability
and economic growth, we anticipate their needs for infrastructure development
will accelerate. We are also attracted by capital goods producers (power plants
and other infrastructure building blocks) we believe stand to benefit from an
increase in demand for equipment to build emerging market infrastructure.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE MSCI
INFRASTRUCTURE WORLD
<S> <C> <C>
31-Jan-95 $10,000 $10,000
28-Feb-95 9,942 10,148
31-Mar-95 9,967 10,639
30-Apr-95 10,467 11,012
31-May-95 10,742 11,108
30-Jun-95 11,025 11,107
31-Jul-95 11,550 11,665
31-Aug-95 11,250 11,407
30-Sep-95 11,225 11,741
31-Oct-95 10,700 11,559
30-Nov-95 10,900 11,962
31-Dec-95 11,058 12,314
31-Jan-96 11,308 12,539
29-Feb-96 11,392 12,618
31-Mar-96 11,508 12,830
30-Apr-96 12,450 13,134
31-May-96 12,925 13,148
30-Jun-96 13,033 13,217
31-Jul-96 12,608 12,752
31-Aug-96 12,925 12,901
30-Sep-96 13,181 13,409
31-Oct-96 13,038 13,505
30-Nov-96 13,508 14,264
31-Dec-96 13,809 14,038
31-Jan-97 14,262 14,209
28-Feb-97 14,120 14,375
31-Mar-97 13,860 14,093
30-Apr-97 13,759 14,556
31-May-97 14,489 15,458
30-Jun-97 14,926 16,231
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI World Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not expenses
and charges of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI World Index is a market value-weighted average of the performance
of 1,554 securities listed on major world stock exchanges -- the U.S.,
Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
8
<PAGE>
GT GLOBAL
VARIABLE NATURAL RESOURCES FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: January 31, 1995
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 6.00% -1.00%
Life of Fund 21.53% 19.94%
Fund Performance
Average Annualized
1 Year 7.48%
Life of Fund 23.27%
</TABLE>
PERFORMANCE
While the natural resources environment has been a difficult one over the last
six months, we remain bullish about long-term opportunities for the sector. With
respect to the Fund's performance, general market volatility, coupled with a
flagging oil sector, precipitated a fall in the Fund's returns. For the six
months ending June 30, 1997, total return was -10.35%. During the same period,
the Morgan Stanley Capital International (MSCI) World Index(1) returned 15.62%.
The index is designed to represent the performance of all markets, however, and
does not reflect the Fund's concentration in natural resources industries.
MARKET REVIEW
The decline in the Fund's performance has occurred primarily on the back of a
selloff in oil service stocks, which fell 20%-30% over the first quarter. With
the fall in hydrocarbon prices (oil prices have fallen from $25 to $20 a barrel
and natural gas prices from $3.20 to $1.90), investors became nervous and sold
the stocks down, even though earnings per share were rising.
However, we remain positive about the oil service sector overall because
fundamentals have actually continued to improve. The sector has been going
through a substantial recovery after being in a recession for 15 years and,
contrary to perceptions, their business is not, in fact, dependent on
hydrocarbon pricing in the short term. When oil companies budget new projects,
they don't look at where prices are today, but take a longer-term approach. So
we feel the fall in share prices of these companies is unjustified, and their
earnings and cash flow continue to grow better than any other sectors within the
natural resources industry, based on increased demand for equipment and
decreases in supply.
Recent market volatility also affected the Fund. Natural resource stocks were no
exception to the overall selloff in small cap growth stocks in the first
quarter. In addition, prices for commodities such as oil, gas, gold, forest
products, chemicals, base metals and steel are at depressed levels.
OUTLOOK
As of June 30, 1997, our largest weighting was in the energy production area.
Our next largest weighting was in the energy services area, which is
experiencing a significant increase in demand after being in a prolonged
recession.
Positive changes continue to take place in natural resources around the world.
Demand continues to be robust in emerging markets and, in addition, growth
appears to be synchronizing in the developed world, which we believe is likely
to drive commodity prices higher eventually. Growth in the U.S. has been strong
for a number of years, but it's just beginning to pick up in Europe and Japan.
If all three were to grow simultaneously this year, we believe we could see
substantially higher commodity prices and stock reratings.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL
VARIABLE
NATURAL MSCI
RESOURCES WORLD
<S> <C> <C>
31-Jan-95 $ 10,000 $ 10,000
28-Feb-95 10,050 10,148
31-Mar-95 10,375 10,639
30-Apr-95 10,683 11,012
31-May-95 10,750 11,108
30-Jun-95 11,067 11,107
31-Jul-95 11,867 11,665
31-Aug-95 11,717 11,407
30-Sep-95 11,650 11,741
31-Oct-95 11,358 11,559
30-Nov-95 11,767 11,962
31-Dec-95 12,220 12,314
31-Jan-96 12,643 12,539
29-Feb-96 13,532 12,618
31-Mar-96 14,280 12,830
30-Apr-96 15,574 13,134
31-May-96 16,208 13,148
30-Jun-96 15,407 13,217
31-Jul-96 14,976 12,752
31-Aug-96 16,252 12,901
30-Sep-96 17,282 13,409
31-Oct-96 17,643 13,505
30-Nov-96 18,321 14,264
31-Dec-96 18,471 14,038
31-Jan-97 18,620 14,209
28-Feb-97 16,437 14,375
31-Mar-97 15,618 14,093
30-Apr-97 15,046 14,556
31-May-97 16,375 15,458
30-Jun-97 16,560 16,231
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI World Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI World Index is a market value-weighted average of the performance
of 1,554 securities listed on major world stock exchanges -- the U.S.,
Europe, Canada, Australia, New Zealand and the Far East. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not incur
sales charges and professional management fees.
9
<PAGE>
GT GLOBAL
VARIABLE AMERICA FUND
TOTAL RETURNS THROUGH JUNE 30, 1997(1)
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 5.96% -1.04%
Life of Fund 15.45% 15.02%
Fund Performance
Average Annualized
1 Year 7.45%
Life of Fund 17.08%
</TABLE>
PERFORMANCE
For the six months ended June 30, 1997, the Fund's total return was -1.49%;
total return over the same investment period was 12.63% for the Russell Midcap
Index.(2)
The Fund underperformed the indices considerably in the first quarter of the
year, primarily because of the shift in portfolio managers and restructuring of
the Fund's market capitalization orientation at the beginning of 1997. The Fund
also had a high exposure to the energy sector going into the new year, which
performed poorly in the first quarter on the back of declining oil prices.
During this transition period, we took advantage of difficult market conditions
to reposition the portfolio at excellent prices, coming through the painful
period very well placed for the second quarter and, we believe, the balance of
the year. We also believe the Fund's repositioning was completed by late March,
and the Fund's stronger results in the second quarter fully reflect our
management style and approach.
MARKET REVIEW
The second quarter of 1997 was one of the strongest in history for U.S. equity
market performance. The pessimism prevalent at the end of March shifted to
surging optimism on a confluence of positive trends. In contrast to the previous
four quarters, when the largest large cap stocks had the biggest gains, the
rally in the second quarter of this year was broadly based, with small and mid
cap issues participating strongly.
Prior to the second quarter, equity markets had been bolstered by the largest
large cap stocks while small and mid-cap stocks languished. In this environment
small growth stocks, in particular, retreated due to extended valuations and the
higher risk associated with them. In view of the extended market cycle,
investors flocked to large cap stocks due to their earnings stability and
liquidity. Additionally, a flight toward large cap stocks was precipitated in
part by the rising popularity of larger-cap index tracker funds.
In the second quarter, however, markets favored a broad range of stocks in terms
of capitalization. In addition, both equity and fixed income markets benefited
from what could be described as the most positive investment environment in
several decades. Controlled inflation, a slowdown from the vigorous first
quarter GDP growth, strong corporate earnings, a shrinking federal budget
deficit and progress toward a balanced budget deal in Congress all contributed
to the second quarter's favorable atmosphere.
OUTLOOK
Our view of the equity market remains positive for the third quarter, but we
believe the pace going forward is unlikely to match the first half. However, the
basic backdrop continues to be encouraging -- low inflation, favorable
demographics, rising savings rates, and strong corporate profits growth. In
addition, demand for equities is still strong, stimulated by above-trend inflows
to mutual funds. Exceptionally robust merger and takeover activity, combined
with ongoing stock buybacks, is mitigating the supply of equities and support
prices. We believe all these factors point to continued positive, long-term
trends for U.S. financial markets.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE AMERICA S&P MIDCAP 400 (3) RUSSELL MIDCAP RUSSELL 2000 (3)
<S> <C> <C> <C> <C>
10-Feb-93 $10,000 $10,000 $10,000 $10,000
28-Feb-93 10,008 9,725 9,836 9,733
31-Mar-93 9,908 10,061 10,156 10,049
30-Apr-93 9,525 9,798 9,887 9,772
31-May-93 10,150 10,244 10,201 10,205
30-Jun-93 9,817 10,295 10,316 10,268
31-Jul-93 9,992 10,275 10,366 10,410
31-Aug-93 10,308 10,700 10,827 10,859
30-Sep-93 10,417 10,813 10,868 11,166
31-Oct-93 11,108 10,848 10,877 11,453
30-Nov-93 11,225 10,608 10,625 11,080
31-Dec-93 11,467 11,100 11,010 11,459
31-Jan-94 11,650 11,359 11,314 11,818
28-Feb-94 12,033 11,197 11,160 11,775
31-Mar-94 12,275 10,679 10,684 11,155
30-Apr-94 12,502 10,758 10,758 11,221
31-May-94 12,675 10,656 10,772 11,095
30-Jun-94 12,666 10,289 10,453 10,720
31-Jul-94 12,640 10,638 10,812 10,897
31-Aug-94 13,365 11,195 11,325 11,504
30-Sep-94 13,485 10,986 11,048 11,465
31-Oct-94 13,511 11,106 11,132 11,418
30-Nov-94 13,339 10,605 10,641 10,957
31-Dec-94 13,632 10,702 10,780 11,250
31-Jan-95 13,761 10,814 11,001 11,108
28-Feb-95 14,442 11,381 11,570 11,570
31-Mar-95 14,986 11,578 11,901 11,769
30-Apr-95 15,606 11,811 12,081 12,030
31-May-95 16,003 12,096 12,478 12,237
30-Jun-95 17,028 12,588 12,897 12,872
31-Jul-95 17,968 13,244 13,523 13,613
31-Aug-95 18,135 13,490 13,731 13,895
30-Sep-95 18,222 13,817 14,041 14,143
31-Oct-95 17,555 13,461 13,727 13,511
30-Nov-95 18,012 14,049 14,410 14,078
31-Dec-95 17,089 14,014 14,494 14,450
31-Jan-96 17,204 14,217 14,799 14,434
29-Feb-96 17,581 14,701 15,147 14,884
31-Mar-96 17,766 14,877 15,366 15,187
30-Apr-96 19,180 15,331 15,801 15,999
31-May-96 19,294 15,538 16,040 16,629
30-Jun-96 18,574 15,305 15,799 15,947
31-Jul-96 17,424 14,270 14,821 14,554
31-Aug-96 18,338 15,093 15,527 15,399
30-Sep-96 19,581 15,751 16,294 16,001
31-Oct-96 19,592 15,797 16,424 15,754
30-Nov-96 20,445 16,686 17,425 16,403
31-Dec-96 20,260 16,705 17,247 16,833
31-Jan-97 20,599 17,332 17,892 17,170
28-Feb-97 19,037 17,189 17,865 16,753
31-Mar-97 17,402 16,457 17,106 15,963
30-Apr-97 17,752 16,883 17,531 16,007
31-May-97 19,324 18,360 18,811 17,788
30-Jun-97 19,958 18,875 19,426 18,550
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the various indices for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) Prior to January 2, 1997, the Fund normally initially focused on companies
having a market capitalization of $2 billion or less at the time of
purchase. The Fund now invests primarily in companies having a market
capitalization of $1 billion to $5 billion at the time of purchase.
(2) The Russell Midcap Index is composed of the capitalization-weighted average
price of 800 selected common stocks of medium-size domestic companies. Its
performance includes the effect of reinvested dividends and is measured in
U.S. dollars. With the change in the Fund's emphasis more toward mid cap
stocks, the Fund has also changed its benchmark to the Russell Midcap Index
from the Russell 2000 and the S&P Mid Cap 400. We feel the Russell Midcap
Index is the most relevant comparable index for the Fund.
(3) The Russell 2000 Index is composed of 2,000 U.S.-domiciled common stocks
designed to measure small company stock performance. The index represents
roughly 10% of the U.S. stock market, and market capitalization of index
companies ranged from $171.7 million to $1.1 billion as of June 1997. The
S&P Mid Cap 400 Index is composed of the capitalization-weighted average
price of 400 selected common stocks of medium-size domestic companies. Their
performance includes the effect of reinvested dividends and is measured in
U.S. dollars.
Indices are unmanaged, not available for direct investment and do not incur
sales charges and professional management fees.
10
<PAGE>
GT GLOBAL
VARIABLE NEW PACIFIC FUND(1)
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 7.25% 0.25%
Life of Fund 8.32% 7.79%
Fund Performance
Average Annualized
1 Year 8.76%
Life of Fund 9.84%
</TABLE>
PERFORMANCE
In contrast to last year's strong performance, regional markets have generally
had a difficult first half of the year. Against this backdrop, the Fund returned
a disappointing -1.50%. The Morgan Stanley Capital International (MSCI) Pacific
ex-Japan Index(2) returned 1.74% over the same period.
Unfortunately, the Fund's strong holdings in Hong Kong were overshadowed by weak
securities in Malaysia, causing the Fund to underperform the index.
Additionally, the Fund's underweighted position in Australia (early in the
period) and sizable position in the Philippines, which is not represented in the
index, also negatively affected Fund performance.
MARKET REVIEW
Weakness has been driven in part by what seemed almost a sudden investor
awareness that the Asian growth miracle, whereby growth rates of 9% or more had
become expected, was indeed approaching a normal, more sustainable level of 4%
to 5%. While these highly charged economies are hardly falling apart, their
vulnerability to a drop in demand from the industrialized world has become
evident. Over the longer term, markets have also become mindful of increased
competition from China.
Additionally, concerns over property speculation, currency devaluation and the
feverish pace of credit expansion came to the fore. Thailand suffered the bulk
of negative sentiment, while fears of a Thai-style property crisis also haunted
investors in Malaysia and the Philippines.
Particular issues also surfaced elsewhere. A mixed environment for corporate
earnings kept a lid on earnings in Singapore. The electoral victory of ruling
party Golkar contributed to a modest advance in share prices in Indonesia.
Korean stocks rallied further as investors perceived that the price of DRAM
computer chips (a major commodity product for several of the largest companies
and a key export for the country) may stabilize later in 1997.
In Hong Kong, while the year got off to a slow start, the market's performance
picked up considerably in the second quarter as investors focused on
opportunities from the growth of the Chinese economy. A cyclical recovery is
underway -- industrial production is growing at around 12% a year. Meanwhile,
inflation is only about 2%. In this environment, red-chip stocks, which are
controlled by Chinese interests and do most (or all) of their business in China
but are domiciled and listed in Hong Kong, performed especially well.
OUTLOOK
Our current strategy remains very bullish in China/Hong Kong, cautious in ASEAN
(Association of South East Asian Nations), especially Malaysia, and quietly
confident in Australia. China is at the beginning of a new cycle we believe is
unlikely to overheat before the year 2000. As of June 30, the Fund was invested
in several Chinese red chips -- the emergence of which we believe to be a
multi-year theme -- which we look to becoming recognizable household names.
We are also currently finding a number of attractive opportunities in Australia,
where authorities have been proactive with respect to monetary policy,
initiating a series of easing actions in advance of expectations. We believe
these cuts have set the scene for multiple years of upward earnings revisions
and the potential for an economic boom.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE NEW PACIFIC MSCI PACIFIC EX-JAPAN
<S> <C> <C>
10-Feb-93 $10,000 $10,000
28-Feb-93 10,008 10,540
31-Mar-93 10,308 10,719
30-Apr-93 10,833 11,268
31-May-93 11,258 11,700
30-Jun-93 10,892 11,345
31-Jul-93 11,308 11,746
31-Aug-93 11,692 12,633
30-Sep-93 11,808 12,877
31-Oct-93 12,425 14,960
30-Nov-93 11,992 14,513
31-Dec-93 13,392 17,527
31-Jan-94 13,425 17,046
28-Feb-94 12,900 16,216
31-Mar-94 11,808 14,494
30-Apr-94 12,174 15,167
31-May-94 12,417 15,668
30-Jun-94 11,990 14,974
31-Jul-94 12,425 15,763
31-Aug-94 13,262 16,822
30-Sep-94 13,019 16,381
31-Oct-94 12,960 16,645
30-Nov-94 11,940 15,311
31-Dec-94 11,722 15,075
31-Jan-95 10,526 13,774
28-Feb-95 10,818 15,061
31-Mar-95 10,869 15,219
30-Apr-95 11,028 15,421
31-May-95 11,638 16,468
30-Jun-95 11,655 16,157
31-Jul-95 12,226 16,824
31-Aug-95 11,773 16,379
30-Sep-95 11,714 16,590
31-Oct-95 11,319 16,298
30-Nov-95 11,134 16,443
31-Dec-95 11,697 17,090
31-Jan-96 13,025 18,226
29-Feb-96 13,008 18,503
31-Mar-96 12,941 18,744
30-Apr-96 13,630 19,261
31-May-96 14,269 19,069
30-Jun-96 13,875 18,714
31-Jul-96 13,467 17,776
31-Aug-96 14,232 18,576
30-Sep-96 14,351 19,056
31-Oct-96 14,461 19,579
30-Nov-96 15,295 20,629
31-Dec-96 15,320 20,674
31-Jan-97 15,609 20,431
28-Feb-97 16,051 20,726
31-Mar-97 14,946 19,769
30-Apr-97 14,138 19,368
31-May-97 15,031 20,578
30-Jun-97 15,091 21,033
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Pacific ex-Japan Index for the same period. It assumes a hypothetical
$10,000 initial investment in the Fund and reflects all Fund expenses but not
charges and expenses of the separate account. Past performance is no guarantee
of future results.
(1) On July 5, 1994, the Fund eliminated Japan from its primary investment area.
(2) The MSCI Pacific ex-Japan Index is a market value-weighted average of the
performance of 213 securities listed on five major Pacific Rim stock
exchanges (Australia, Hong Kong, Malaysia, New Zealand and Singapore). It
includes the effect of reinvested dividends and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
11
<PAGE>
GT GLOBAL
VARIABLE EUROPE FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: February 10, 1993
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 17.45% 10.45%
Life of Fund 15.70% 15.28%
Fund Performance
Average Annualized
1 Year 19.09%
Life of Fund 17.32%
</TABLE>
PERFORMANCE
While the Fund has participated in the general rally in European stock markets,
strong gains in Switzerland were overshadowed by weak security selection in the
UK and Germany, and the Fund had a total return of 11.05%. The Morgan Stanley
Capital International (MSCI) Europe Index(1) returned 14.45% over the same
period.
MARKET REVIEW
Most major European markets rose to near all-time highs as interest rates
trended down, and investors focused on the potential for accelerated growth over
the next year. The European Commission forecast that for the EU (European Union)
as a whole, GDP growth should increase from 1.6% in 1996 to 2.4% in 1997 and
2.8% next year. The profits of many larger European companies were also buoyed
by the strength of the U.S. dollar and UK sterling. Since the beginning of 1996,
the dollar has rallied by over 10% against major continental European
currencies, and at around DM2.93, sterling is at its highest rate since
mid-1992, providing an additional fillip to continental exporters' earnings.
The Swiss market, encouraged by a fall in interest rates to their lowest level
since 1979, was the top-performing market in dollar terms over the first half of
the year. Stock market strength also came from the benefits many larger
corporations have enjoyed as a result of mergers, de-mergers, wholesale
restructuring and other measures taken over the last two years to boost
profitability.
OUTLOOK
It's important to emphasize that Europe is different from other mature areas.
Looking at a list of the top 10 companies globally in each sector, we find that
in spite of Europe's having an aggregate GDP level comparable to the U.S.,
European companies are under-represented. This is because their markets are more
fragmented. However, as European companies realize the need for economies of
scale, we expect more of them to be included. Already, we've seen a number of
big consolidations, particularly in IT, services and health care. Moreover, as
the concept of shareholder value and the need to maximize returns continue to
gain ground in Europe, we anticipate increasingly interesting investment
opportunities.
In general, the Fund's investment strategy focuses on particular stocks and
sectors, rather than markets, emphasizing companies offering visibly superior
earnings growth prospects. This reflects our view that in an environment of
global disinflation, investors are likely to seek -- and pay premium multiples
for -- companies and industries that are expanding.
The portfolio currently includes major companies that are restructuring and
stocks we think have strong positions in rapidly growing segments of the media
and telecommunications industries. Additionally, we find selected companies in
service industries such as specialist software and temporary manpower
attractive. The Fund also seeks opportunities offered by world class companies
that are leaders in industries such as pharmaceuticals, and companies we think
will be the beneficiaries of rationalization and cost-cutting. Of course,
continental Europe is also home to many multinational corporations that have the
potential to exploit the growth in demand for infrastructure and
telecommunications equipment in emerging markets.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE EUROPE MSCI EUROPE
<S> <C> <C>
10-Feb-93 $10,000 $10,000
28-Feb-93 10,008 10,164
31-Mar-93 10,133 10,690
30-Apr-93 10,525 10,930
31-May-93 10,858 11,051
30-Jun-93 10,842 10,893
31-Jul-93 11,183 10,934
31-Aug-93 11,875 11,897
30-Sep-93 11,958 11,864
31-Oct-93 12,400 12,362
30-Nov-93 12,075 12,099
31-Dec-93 12,775 13,011
31-Jan-94 13,708 13,677
28-Feb-94 13,158 13,196
31-Mar-94 12,758 12,826
30-Apr-94 13,083 13,361
31-May-94 12,557 12,798
30-Jun-94 12,399 12,667
31-Jul-94 12,950 13,335
31-Aug-94 13,225 13,763
30-Sep-94 12,891 13,221
31-Oct-94 13,292 13,802
30-Nov-94 12,674 13,277
31-Dec-94 12,699 13,357
31-Jan-95 12,457 13,257
28-Feb-95 12,290 13,562
31-Mar-95 11,907 14,197
30-Apr-95 12,466 14,656
31-May-95 12,783 14,961
30-Jun-95 13,033 15,107
31-Jul-95 13,598 15,900
31-Aug-95 13,362 15,291
30-Sep-95 13,842 15,758
31-Oct-95 13,673 15,689
30-Nov-95 13,699 15,806
31-Dec-95 13,926 16,313
31-Jan-96 14,264 16,425
29-Feb-96 14,904 16,730
31-Mar-96 15,621 16,936
30-Apr-96 16,211 17,064
31-May-96 16,573 17,201
30-Jun-96 16,916 17,397
31-Jul-96 16,074 17,185
31-Aug-96 16,899 17,701
30-Sep-96 16,924 18,079
31-Oct-96 17,187 18,505
30-Nov-96 17,833 19,449
31-Dec-96 18,139 19,831
31-Jan-97 18,453 19,891
28-Feb-97 18,768 20,159
31-Mar-97 19,116 20,817
30-Apr-97 18,564 20,719
31-May-97 18,972 21,610
30-Jun-97 20,144 22,697
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI Europe Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI Europe Index is a market value-weighted average of the performance
of 563 securities listed on 14 major European stock exchanges. It includes
the effect of reinvested dividends and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
12
<PAGE>
GT GLOBAL
MONEY MARKET FUND
The GT Global Money Market Fund's investment objective is to maximize current
income while maintaining liquidity and conservation of capital.
PERFORMANCE
The Fund's total return for the six months ended June 30, 1997, was 4.74%. As of
June 30, 1997, the Fund's SEC seven-day yield was 4.91%. Because the Fund
invests only in short-term debt obligations with remaining maturities of 13
months or less, its performance generally reflects the level of short-term
interest rates.
MARKET REVIEW
U.S. fixed income markets continued their roller coaster ride during the first
six months of 1997. Yields on fixed income securities rose during the first
three months of the year as the pace of economic growth increased. However, this
growth spurt moderated in the second quarter, and fears of runaway growth
coupled with accelerating inflation subsided. As a result, yields on 90-day
Treasury bills ended the six-month period where they began.
While fixed income markets have been experiencing short-term volatility,
longer-term interest rate swings have become much more moderate than they were
in the 1980s and early 1990s. This trend results from the current economic
environment, characterized by smaller swings in economic activity and benign
inflation. Steadily increasing worker productivity, reduced backlogs due to
better inventory management, and freer trade and capital flows have all
contributed to stable economic growth with decelerating inflation.
Risk premiums have been steadily declining as economic and inflation risks have
been temporarily reduced. This has been manifested in tighter yield spreads
across different quality instruments -- the pickup in yield that accompanies
moving down in quality has declined. Also, the yield curve has flattened,
reducing the yield pickup earned by purchasing longer-dated maturities.
OUTLOOK
While this financial nirvana is not forecast to change in the near term, we know
it will not last forever. Accordingly, we have continued to maintain a
high-quality bias in the portfolio; the average maturity has been kept on the
shorter side since we are not sacrificing any yield to be defensive in this
environment. We continue to believe the economy will grow at a trend rate with
low inflation but inflation scares are likely to continue, and short-term
volatility will be evident even though the longer-term trend in rates remains
intact. The real rate of return available to short-term, high-quality
investments continues to be attractive, and the Fund's management will provide
the opportunity to participate in this segment of the market.
13
<PAGE>
GT GLOBAL
VARIABLE INTERNATIONAL FUND
TOTAL RETURNS THROUGH JUNE 30, 1997
Inception date: July 5, 1994
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIVISION PERFORMANCE
AVERAGE WITHOUT WITH APPLICABLE
ANNUALIZED SURRENDER CHARGE SURRENDER CHARGE
<S> <C> <C>
1 Year 9.45% 2.45%
Life of Fund 1.56% -0.09%
Fund Performance
Average Annualized
1 Year 11.00%
Life of Fund 3.01%
</TABLE>
PERFORMANCE
The Fund's total return for the six months ended June 30, 1997, was 8.11%.
During the same period, the Morgan Stanley Capital International Europe,
Australia, Far East (MSCI-EAFE) Index(1) returned 11.36%.
Relative to the index, most of the Fund's underperformance is a result of
security selection in the UK. While we continue to find UK companies attractive,
over the six-month period the Fund suffered largely as a result of its exposure
to media companies whose poor performance as a group was underpinned by Granada
Group and Reuters. On the other hand, while we continued to invest cautiously in
Japan and were significantly underweighted relative to the index over the
period, the Fund benefited from security selection in this market.
MARKET REVIEW
As in the rest of the world, most continental bourses continued to advance,
thanks to a rally in bond markets, low inflation and signs of an upturn in
growth. Switzerland and Spain were among the three best-performing developed
stock markets in dollar terms. The Swiss market enjoyed a robust run on the back
of a fall in interest rates, which dropped to their lowest level since 1979.
Stock market strength is also due to the benefits many larger corporations have
enjoyed as a result of mergers, de-mergers, wholesale restructurings and other
measures taken over the last two years to boost profitability. Meanwhile, the
rise in Spanish share prices reflected the sizable fall in bond yields resulting
from the growing perception among investors that European Monetary Union (EMU)
will proceed on time in 1999 and that peripheral countries such as Spain will
participate.
In contrast, interest rates in the UK remain relatively high compared to the
rest of the region. The newly independent Bank of England has lifted the base
rate in two stages, from 6.25% to 6.75%, in reaction to the strength of the UK
economy, which perpetuated a rise in the currency. While this is favorable for
many importers, it has crimped corporate earnings of the FTSE 100 stocks, 40% of
whose earnings come from overseas, and the stock market's gains have lagged
those of other regional markets.
Latin American markets prospered under the inflow of foreign portfolio
investments. Depending on the country in question, foreign investors were
attracted by the prospects of further economic reform and/or the reality of a
pickup in domestic demand. Regional markets performed well, with Brazil leading
the way. The Brazilian market flourished under a host of successes, and
constitutional changes permitted President Cardoso to run for a second term.
This augurs well for public finance reform.
In contrast, regional markets throughout Asia experienced considerable
volatility and divergent performances. In Hong Kong, one of the stronger markets
over the period, we believe China's economy, rather than China's sovereignty,
remains the key factor for the market. After two difficult years in 1994 and
1995, the Chinese economy is accelerating again -- good news for Hong
Kong-listed companies doing business in China.
OUTLOOK
Going forward, our general concern is that markets are quite highly valued, and
we are finding it increasingly difficult to identify value in stocks. Some of
the better value opportunities we see in the world include the UK and selected
companies in Australasia. We have reduced our weighting to continental European
companies as they continue to meet our price targets, and we currently expect
our exposure to Japan to remain relatively low.
PERFORMANCE SUMMARY
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GT GLOBAL VARIABLE
INTERNATIONAL MSCI-EAFE
5-JUL-94 $ 10,000 $ 10,000
<S> <C> <C>
31-Jul-94 10,025 10,045
31-Aug-94 10,217 10,285
30-Sep-94 9,800 9,963
31-Oct-94 10,083 10,297
30-Nov-94 9,625 9,805
31-Dec-94 9,420 9,868
31-Jan-95 8,817 9,492
28-Feb-95 8,599 9,467
31-Mar-95 8,557 10,060
30-Apr-95 8,792 10,441
31-May-95 8,750 10,319
30-Jun-95 8,913 10,141
31-Jul-95 9,374 10,775
31-Aug-95 9,240 10,367
30-Sep-95 9,391 10,572
31-Oct-95 9,081 10,290
30-Nov-95 9,089 10,579
31-Dec-95 9,313 11,008
31-Jan-96 9,456 11,056
29-Feb-96 9,473 11,096
31-Mar-96 9,600 11,335
30-Apr-96 9,795 11,667
31-May-96 9,795 11,455
30-Jun-96 9,843 11,522
31-Jul-96 9,325 11,188
31-Aug-96 9,546 11,216
30-Sep-96 9,707 11,517
31-Oct-96 9,673 11,402
30-Nov-96 10,072 11,858
31-Dec-96 10,106 11,708
31-Jan-97 10,080 11,301
28-Feb-97 10,106 11,489
31-Mar-97 10,199 11,533
30-Apr-97 10,267 11,597
31-May-97 10,581 12,355
30-Jun-97 10,925 13,039
</TABLE>
The chart above shows the performance of the Fund since inception compared to
the MSCI-EAFE Index for the same period. It assumes a hypothetical $10,000
initial investment in the Fund and reflects all Fund expenses but not charges
and expenses of the separate account. Past performance is no guarantee of future
results.
(1) The MSCI-EAFE is a market value-weighted average, of the performance of
1,086 securities listed on 20 major world stock exchanges. It includes the
effect of reinvested dividends and is measured in U.S. dollars.
The index is unmanaged, not available for direct investment and does not
include the effects of sales charges and professional management fees.
14
<PAGE>
GT GLOBAL
ALLOCATOR
FUNDS'
FINANCIAL
STATEMENTS
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (74.7%)
Argentina (8.0%)
Republic of Argentina:
Global Bond, 11% due 10/9/06 ........................ USD 691,000 $ 769,774 2.5
BOCON Pro 1, 3.2424% due 4/1/07+ .................... ARS 621,000 653,733 2.1
Discount Bond, 6.875% due 3/31/23+ .................. USD 477,000 412,903 1.3
Global Bond, 11.375% due 1/30/17 .................... USD 348,000 388,107 1.3
BOCON Pre 1, 3.2424% due 4/1/01+ .................... ARS 203,300 242,280 0.8
Australia (2.2%)
Commonwealth of Australia, 9.5% due 8/15/03 ........... AUD 780,000 670,737 2.2
Brazil (3.4%)
Federal Republic of Brazil:
Debt Conversion Bond Series L, 6.9375% due
4/15/12+ ........................................... USD 985,000 813,241 2.6
Debt Conversion Bond Registered, 6.9375% due
4/15/12+ ........................................... USD 301,000 248,513 0.8
Bulgaria (3.1%)
Republic of Bulgaria:
Interest Arrears Bond, 6.5625% due 7/28/11 -
Euro+ .............................................. USD 977,000 706,493 2.3
Discount Bond Series A, 6.5625% due 7/28/24 -
Euro+ .............................................. USD 337,000 248,538 0.8
Canada (1.6%)
Canadian Government, 8.75% due 12/1/05 ................ CAD 586,000 493,250 1.6
Colombia (0.5%)
Republic of Colombia, 8.7% due 2/15/16 ................ USD 154,000 157,465 0.5
Costa Rica (0.3%)
Banco Central de Costa Rica, Principal Bond Series A,
6.25% due 5/21/10 .................................... USD 100,000 86,000 0.3
Denmark (1.4%)
Kingdom of Denmark, 7% due 12/15/04 ................... DKK 2,700,000 435,108 1.4
Ecuador (2.1%)
Republic of Ecuador:
Discount Bond, 6.4375% due 2/28/25 - Euro+ .......... USD 689,000 494,788 1.6
Past Due Interest Bond, 6.4375% due 2/27/15 - 144A[.]
+ {.} .............................................. USD 258,314 167,259 0.5
France (1.4%)
French O.A.T., 7.25% due 4/25/06 ...................... FRF 2,200,000 421,203 1.4
Germany (11.2%)
Deutschland Republic:
8.25% due 9/20/01 ................................... DEM 2,250,000 1,476,913 4.8
6% due 1/5/06 ....................................... DEM 2,380,000 1,406,581 4.6
Treuhandanstalt, 7.125% due 1/29/03 ................... DEM 896,000 569,290 1.8
Italy (3.9%)
Italian Buoni Poliennali del Tesoro (BTPS):
9.5% due 2/1/99 ..................................... ITL 1,260,000,000 775,037 2.5
Republic of Italy, 7.25% due 11/1/26 .................. ITL 750,000,000 435,734 1.4
Mexico (2.2%)
United Mexican States:
Global Bond, 11.5% due 5/15/26 ...................... USD 403,000 461,334 1.5
Par Bond Series A, 6.25% due 12/31/19+/+ ............ USD 281,000 217,599 0.7
Netherlands (1.3%)
Netherlands Government Bond, 5.75% due 2/15/07 ........ NLG 800,000 412,424 1.3
</TABLE>
The accompanying notes are an integral part of the financial statements.
F1
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (Continued)
New Zealand (1.7%)
New Zealand Government, 8% due 4/15/04 ................ NZD 750,000 $ 538,148 1.7
Nigeria (1.1%)
Central Bank of Nigeria, Par Bond, 6.25% due
11/15/20+/+ .......................................... USD 500,000 338,125 1.1
Panama (2.0%)
Republic of Panama:
Interest Reduction Bond, 3.75% due 7/17/14 - 144A++
{.} ................................................ USD 574,000 445,209 1.4
7.875% due 2/13/02 - 144A{.} ........................ USD 200,000 199,250 0.6
Poland (2.3%)
Republic of Poland:
Past Due Interest Bond, 4% due 10/27/14 - Euro++ .... USD 500,000 429,688 1.4
12% due 6/12/01 ..................................... PLZ 1,176,000 291,763 0.9
Russia (0.9%)
Russian Ministry of Finance:
3% due 5/14/11 - GDR - 144A{.} ...................... USD 390,000 165,506 0.5
3% due 5/14/06 - GDR - 144A{.} ...................... USD 229,000 124,233 0.4
South Africa (1.5%)
Republic of South Africa, 13% due 8/31/10 ............. ZAR 2,366,000 477,676 1.5
Spain (1.8%)
Kingdom of Spain, 10.5% due 10/30/03 .................. ESP 65,000,000 546,944 1.8
Sweden (0.9%)
Swedish Government, 8% due 8/15/07 .................... SEK 2,000,000 284,050 0.9
United Kingdom (5.5%)
United Kingdom Treasury:
7% due 6/7/02 ....................................... GBP 700,000 1,161,324 3.8
Conversion, 9.5% due 4/18/05 ........................ GBP 280,000 531,536 1.7
United States (10.9%)
United States Treasury:
6.875% due 3/31/00{./} .............................. USD 2,500,000 2,541,243 8.2
6.875% due 8/15/25 .................................. USD 525,000 527,481 1.7
6.50% due 10/15/06 .................................. USD 300,000 299,057 1.0
Uruguay (0.7%)
Banco Central del Uruguay, Par Bond Series B, 6.75% due
2/19/21+/+ ........................................... USD 250,000 225,625 0.7
Venezuela (2.8%)
Republic of Venezuela:
Debt Conversion Bond, 6.75% due 12/18/07+ ........... USD 500,000 463,750 1.5
Par Bond Series A, 6.75% due 3/31/20+/+ ............. USD 500,000 394,375 1.3
------------
Total Government & Government Agency Obligations (cost
$23,100,295) ............................................. 23,149,287
------------
Corporate Bonds (8.1%)
Argentina (0.7%)
Impsat Corp., 9.5% due 5/31/02 ........................ USD 100,000 100,191 0.3
Central Termica Guemes S.A., 12% due 11/26/01 -
144A{.} .............................................. USD 72,000 75,398 0.2
Acindar Industrial Argentina, 11.25% due 2/15/04 ...... USD 49,000 51,695 0.2
</TABLE>
The accompanying notes are an integral part of the financial statements.
F2
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (Continued)
Brazil (0.2%)
Tevecap S.A., 12.625% due 11/26/04 - 144A{.} .......... USD 61,000 $ 65,956 0.2
China (1.6%)
Panda Global Energy Co., 12.5% due 4/15/04 -
144A{.} .............................................. USD 276,000 267,720 0.9
Huaneng Power International PLC, 1.75% due 5/21/04 .... USD 110,000 113,438 0.4
Greater Beijing First, 9.5% due 6/15/07 - 144A{.} ..... USD 100,000 101,500 0.3
Ecuador (0.4%)
Pacalta Resources Ltd., 10.75% due 6/15/04 -
144A{.} .............................................. USD 106,000 107,193 0.4
Indonesia (0.6%)
PT Tjiwi Kimia, 13.25% due 8/1/01 ..................... USD 130,000 148,038 0.5
Rapp International Finance, 13.25% due 12/15/05 ....... USD 30,000 32,100 0.1
Jamaica (0.5%)
Mechala Group Jamaica, 12.75% due 12/30/99 - Series
B .................................................... USD 139,000 147,688 0.5
Mexico (1.3%)
TV Azteca Holdings S.A. de C.V.:
11% due 6/15/02 - 144A{.} ........................... USD 88,000 89,101 0.3
10.5% due 2/15/07 - 144A{.} ......................... USD 70,000 71,925 0.2
Cemex, S.A. de C.V. "B", 12.75% due 7/15/06 -
144A{.} .............................................. USD 85,000 98,813 0.3
Copamex Industrias S.A., 11.375% due 4/30/04 -
144A{.} .............................................. USD 71,000 76,148 0.3
Grupo Mexico de Desarrollo, 8.25% due 2/17/01 ......... USD 68,000 47,260 0.2
Russia (0.6%)
Lukinter Finance, 3.5% due 5/6/02 - 144A{.} ........... USD 137,000 171,935 0.6
United States (2.2%)
DGS International Finance Co., 10% due 6/1/07 -
144A{.} .............................................. USD 177,000 182,753 0.6
Chase Manhattan Corp., 6.25% due 1/15/06 .............. USD 152,000 143,553 0.5
General Motors Acceptance Corp., 6.625% due
10/15/05 ............................................. USD 143,000 138,694 0.5
Road King Infrastructure, 9.5% due 7/15/07 -
144A{.} .............................................. USD 100,000 100,625 0.3
Telesystem International Wireless, 13.25% due 6/30/07 -
144A{.} .............................................. USD 158,000 84,333 0.3
------------
Total Corporate Bonds (cost $2,322,996) ................... 2,416,057
------------
Sovereign Debt (5.2%)
Russia (5.2%)
Bank for Foreign Economic Affairs (Vnesheconombank)
Loan Agreement:
Assignment ** {./} -/- .............................. USD 1,621,000 1,487,268 4.8
Participation ** -/- ................................ DEM 234,000 130,699 0.4
------------
Total Sovereign Debt (cost $907,681) ...................... 1,617,967
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $26,330,972) ......... 27,183,311 88.0
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F3
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNDERLYING VALUE % OF NET
OPTIONS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Republic of Bulgaria Floating Interest Rate Bond "A"
7/28/12, Call Option, strike 45.9375 expires 7/17/97 ... USD 1,146,000 $ 126,776 0.4
GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
Republic of Brazil Debt Conversion Bond 4/15/12, Call
Option, strike 80.222, expires 9/16/97 ................. USD 2,048,000 54,757 0.2
GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
Republic of Venezuela Debt Conversion Bond 12/18/07, Call
Option, strike 91, expires 8/26/97 ..................... USD 1,000,000 20,290 0.1
GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
Republic of Bulgaria Floating Interest Rate Bond, Call
Option, strike 56.75, expires 8/22/97 .................. USD 348,000 7,726 --
GOVERNMENT & GOVERNMENT AGENCY OBLIGATIONS
------------ -----
TOTAL OPTIONS (cost $95,214) .............................. 209,549 0.7
------------ -----
<CAPTION>
PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENT CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Structured Notes (1.7%)
Russia (1.7%)
Russian Federation GKO (Treasury Bills) Linked Notes
with cancellable
currency forwards attached:
Due 4/15/98 ........................................ USD 347,700 522,995 1.7
(Notes issued by Credit Suisse First Boston (Cayman)
Ltd. These notes are linked to the local price in
Russian rubles of 3,477 Titles of Russian treasury
bills maturing 4/8/98. The note includes options to
sell the Russian ruble proceeds at maturity for U.S.
dollars.)
-----
------------
TOTAL SHORT-TERM INVESTMENT (cost $458,121) ............... 522,995 1.7
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ----------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $2,840,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $2,890,175
including accrued interest). (cost $2,832,452) ........ 2,832,452 9.2
------------ -----
TOTAL INVESTMENTS (cost $29,716,759) * ................... 30,748,307 99.6
Other Assets and Liabilities .............................. 140,012 0.4
------------ -----
NET ASSETS ................................................ $ 30,888,319 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{./} All or part of the Fund's holdings in this security is segregated
as collateral for when-issued securities or forward currency
contracts. See Note 1 to the Financial Statements.
-/- Non-income producing security.
** Underlying loan agreement currently in default.
{.} Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
+ The coupon rate shown on floating rate note represents the rate at
period end.
[.] Bond pays stated or additional interest with "payment-in-kind"
(PIK) bonds.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
++ The coupon rate shown on step-up coupon bond represents the rate at
period end.
* For Federal income tax purposes, cost is $29,836,045 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,498,058
Unrealized depreciation: (585,796)
-------------
Net unrealized appreciation: $ 912,262
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F4
<PAGE>
GT GLOBAL VARIABLE STRATEGIC INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
(U.S. CONTRACT DELIVERY APPRECIATION
CONTRACTS TO BUY: DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- ------------ ------------ -------- ------------
<S> <C> <C> <C> <C>
Canadian Dollars........................ 36,366 1.36645 09/02/97 $ (225)
Deutsche Marks.......................... 372,150 1.68448 08/18/97 (11,826)
Italian Liras........................... 14,682 1,677.17023 07/21/97 (224)
Italian Liras........................... 538,318 1,698.45000 08/05/97 (1,882)
------------ ------------
Total Contracts to Buy (Payable
amount $975,673)................... 961,516 (14,157)
------------ ------------
THE VALUE OF CONTRACTS TO BUY AS PERCENTAGE OF NET ASSETS IS 3.11%.
CONTRACTS TO SELL:
- ----------------------------------------
British Pounds.......................... 597,977 0.61692 07/31/97 (14,435)
British Pounds.......................... 124,579 0.61639 07/31/97 (2,901)
Canadian Dollars........................ 54,550 1.37030 09/02/97 183
Deutsche Marks.......................... 632,319 1.72025 08/05/97 7,123
Deutsche Marks.......................... 372,150 1.72050 08/18/97 3,788
Italian Liras........................... 1,104,065 1,704.40000 07/21/97 (1,037)
Netherland Guilders..................... 418,682 1.92425 08/06/97 7,458
New Zealand Dollars..................... 525,953 1.45370 09/03/97 7,169
Spanish Pesetas......................... 555,631 145.02500 07/15/97 9,099
------------ ------------
Total Contracts to Sell (Receivable
amount $4,402,353)................. 4,385,906 16,447
------------ ------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 14.20%.
Total Open Forward Foreign Currency
Contracts, Net..................... $ 2,290
------------
------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F5
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (72.0%)
Australia (8.9%)
Queensland Treasury Corp., 8% due 5/14/03 ............... AUD 530,000 $ 423,790 4.5
Commonwealth of Australia, 9.5% due 8/15/03 ............. AUD 240,000 206,381 2.2
New South Wales, 7% due 4/1/04 .......................... AUD 270,000 204,119 2.2
Canada (1.7%)
Canadian Government, 7.25% due 6/1/07 ................... CAD 210,000 162,174 1.7
Colombia (1.3%)
Republic of Colombia, 7.25% due 2/23/04 ................. USD 125,000 121,875 1.3
Denmark (3.3%)
Kingdom of Denmark:
7% due 12/15/04 ....................................... DKK 1,100,000 177,266 1.9
8% due 5/15/03 ........................................ DKK 800,000 136,148 1.4
Germany (9.7%)
Deutschland Republic, 6% due 1/5/06{./} (h) ............ DEM 1,555,000 919,000 9.7
Italy (6.6%)
Italian Buoni Poliennali del Tesoro (BTPS):
8.50% due 8/1/04 ...................................... ITL 890,000,000 572,752 6.0
7.25% due 11/1/26 ..................................... ITL 100,000,000 58,098 0.6
Netherlands (3.2%)
Netherlands Government Bond, 5.75% due 2/15/07 .......... NLG 590,000 304,162 3.2
New Zealand (2.5%)
New Zealand Government, 8% due 4/15/04 .................. NZD 330,000 236,785 2.5
South Africa (3.9%)
Republic of South Africa:
13% due 8/31/10 ....................................... ZAR 1,250,000 252,365 2.7
12% due 2/28/05 ....................................... ZAR 600,000 117,969 1.2
Spain (4.0%)
Spain Government, 10.5% due 10/30/03 .................... ESP 45,000,000 378,653 4.0
Sweden (3.7%)
Swedish Government:
13% due 6/15/01 ....................................... SEK 1,400,000 228,158 2.4
8% due 8/15/07 ........................................ SEK 900,000 127,822 1.3
United Kingdom (5.2%)
United Kingdom Conversion, 9.5% due 4/18/05 ............. GBP 260,000 493,568 5.2
United States (18.0%)
United States Treasury:
6.5% due 10/15/06 (h) ................................. USD 500,000 498,428 5.3
8% due 11/15/21 (h) ................................... USD 300,000 339,768 3.6
7% due 7/15/06 ........................................ USD 275,000 283,255 3.0
6.625% due 5/15/07 .................................... USD 200,000 201,875 2.1
Federal National Mortgage Association, 7.25% due
6/20/02 ................................................ NZD 550,000 376,666 4.0
------------
Total Government & Government Agency Obligations (cost
$6,973,759) ................................................ 6,821,077
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F6
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (7.4%)
New Zealand (3.7%)
Transpower Finance Ltd., 8% due 3/15/02 ................. NZD 500,000 $ 350,436 3.7
United Kingdom (3.7%)
SBC Jersey, 8.75% due 6/20/05 ........................... GBP 200,000 354,366 3.7
------------
Total Corporate Bonds (cost $694,013) ....................... 704,802
------------
Asset Backed (4.7%)
United States (4.7%)
Salomon Brothers Mortgage Securities CMO, 6.0867% due
4/25/27 ................................................ USD 193,976 194,885 2.1
Government National Mortgage Association Pool #780515,
9.5% due 12/15/21 ...................................... USD 138,941 151,185 1.6
Federal Home Loan Mortgage Association Pool #E62449, 8.5%
due 3/1/10 ............................................. USD 87,126 90,775 1.0
------------
Total Asset Backed (cost $435,193) .......................... 436,845
------------
Supranational Bonds (2.9%)
International Bank of Reconstruction & Development, 7.125%
due 4/12/05 (h) .......................................... DEM 440,000 278,427 2.9
------------
Total Supranational Bonds (cost $295,538) ................. 278,427
------------
TOTAL FIXED INCOME INVESTMENTS (cost $8,398,503) ............ 8,241,151 87.0
------------ -----
<CAPTION>
UNDERLYING VALUE % OF NET
OPTIONS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Australian Dollars Put Option, strike 1.35, expires
7/29/97 .................................................. AUD 650,000 1,535 --
CURRENCY OPTIONS
Deutsche Marks Put Option, strike 1.72, expires 7/10/97 ... USD 500,000 6,650 0.1
CURRENCY OPTIONS
------------ -----
TOTAL OPTIONS (cost $7,405) ................................. 8,185 0.1
------------ -----
<CAPTION>
PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (10.4%)
Indonesia (2.1%)
Republic of Indonesia Treasury Bill, 12.5% due
11/17/97 ............................................... IDR 500,000,000 196,459 2.1
Mexico (3.4%)
Mexican Cetes: .......................................... MXN -- -- 3.4
Current yield 21.72% due 11/19/97 ..................... -- 150,000 174,084 --
Current yield 19.7% due 7/24/97 ....................... -- 82,013 101,994 --
Current yield 21.7% due 11/13/97 ...................... -- 38,000 44,252 --
Philippines (4.9%)
Philippine Treasury Bill, 12.37% due 7/9/97 ............. PHP 12,310,529 465,912 4.9
------------
Total Government & Government Agency Obligations (cost
$970,263) .................................................. 982,701
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F7
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Commercial Paper - Discounted (1.0%)
Indonesia (1.0%)
PT Bank Dagang Negara, 11.93% due 9/12/97 (cost
$99,464) ............................................... IDR 250,000,000 $ 100,409 1.0
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $1,069,727) .............. 1,083,110 11.4
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $75,000 U.S. Treasury Bills, 6.125% due
3/31/98 (market value of collateral is $76,325, including
accrued interest). (cost $72,012) ....................... 72,012 0.8
------------ -----
TOTAL INVESTMENTS (cost $9,547,647) * ...................... 9,404,458 99.3
Other Assets and Liabilities ................................ 63,693 0.7
------------ -----
NET ASSETS .................................................. $ 9,468,151 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{./} All or part of the Fund's holdings in this security is segregated
as collateral for when-issued securities or forward currency
contracts. See Note 1 to the Financial Statements.
(h) All or part of the Fund's holdings in this security is segregated
as collateral for written options. See Note 1 to the Financial
Statements.
* For Federal income tax purposes, cost is $9,570,401 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 50,794
Unrealized depreciation: (216,737)
-------------
Net unrealized depreciation: $ (165,943)
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F8
<PAGE>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
(U.S. CONTRACT DELIVERY APPRECIATION
CONTRACTS TO BUY: DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- ------------ ----------- -------- ------------
<S> <C> <C> <C> <C>
Australian Dollars...................... 792,872 1.31242 08/25/97 $ (7,176)
British Pounds.......................... 215,936 0.60645 07/31/97 1,575
British Pounds.......................... 249,157 0.61352 07/31/97 4,666
Deutsche Marks.......................... 231,414 1.68448 08/18/97 (7,354)
Italian Liras........................... 29,363 1,685.95000 07/21/97 (294)
------------ ------------
Total Contracts to Buy (Payable
amount $1,527,325)................. 1,518,742 (8,583)
------------ ------------
THE VALUE OF CONTRACTS TO BUY AS PERCENTAGE OF NET ASSETS IS 16.04%.
CONTRACTS TO SELL:
- ----------------------------------------
Australian Dollars...................... 302,585 1.33614 08/05/97 (2,585)
Australian Dollars...................... 377,558 1.28033 08/25/97 12,967
British Pounds.......................... 315,598 0.61692 07/31/97 (7,619)
British Pounds.......................... 149,494 0.61639 07/31/97 (3,482)
Canadian Dollars........................ 159,768 1.38620 08/05/97 (1,061)
Danish Kroner........................... 174,682 6.57150 07/17/97 1,838
Deutsche Marks.......................... 29,430 1.72000 08/05/97 336
Deutsche Marks.......................... 298,769 1.73249 08/05/97 1,231
Deutsche Marks.......................... 213,313 1.72437 08/05/97 1,887
Deutsche Marks.......................... 327,656 1.71680 08/05/97 4,357
Deutsche Marks.......................... 386,304 1.72040 08/18/97 3,954
Italian Liras........................... 29,363 1,704.39981 07/21/97 (27)
New Zealand Dollars..................... 821,166 1.45370 09/03/97 11,193
Swedish Kronor.......................... 233,124 7.56099 08/18/97 4,940
------------ ------------
Total Contracts to Sell (Receivable
amount $3,846,739)................. 3,818,810 27,929
------------ ------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 40.33%.
Total Open Forward Foreign Currency
Contracts, Net..................... $ 19,346
------------
------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WRITTEN OPTIONS CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL EXPIRATION MARKET
CALL OPTIONS AMOUNT DATE STRIKE PRICE VALUE($)
- ---------------------------------------- ---------- ------------ ------------------ -----------
<S> <C> <C> <C> <C>
AUD..................................... 650,000 7/29/97 AUD1.32 2,642
<CAPTION>
PUT OPTIONS
- ----------------------------------------
<S> <C> <C> <C> <C>
DEM..................................... 500,000 10/7/97 DEM1.76 850
DEM vs GBP.............................. 200,000 7/30/97 DEM2.914/GBP 2,254
-----------
Total outstanding written options
(Premiums received $4,888)......... 5,746
-----------
-----------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F9
<PAGE>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (55.3%)
United States Treasury:
5.75% due 8/15/03 ....................................... USD 650,000 $ 628,367 11.2
7.625% due 2/15/25 ...................................... USD 450,000 493,304 8.8
7.25% due 8/15/04 ....................................... USD 350,000 365,196 6.5
5.25% due 1/31/01 ....................................... USD 350,000 338,830 6.1
5.5% due 12/31/00 ....................................... USD 200,000 195,063 3.5
5.875% due 2/15/04 ...................................... USD 50,000 48,492 0.9
Tennessee Valley Authority Series A, 6.375% due 6/15/05 ... USD 400,000 391,704 7.0
Sallie Mae, 7.5% due 3/8/00 ............................... USD 350,000 360,063 6.4
Federal Home Loan Bank, 6.79% due 2/5/02 .................. USD 100,000 99,854 1.8
Federal National Mortgage Association, 6.8% due 1/10/03 ... USD 90,000 91,025 1.6
Financial Assistance Corp., 9.375% due 7/21/03 ............ USD 75,000 85,361 1.5
------------
Total Government & Government Agency Obligations (cost
$3,101,798) ................................................ 3,097,259
------------
Asset Backed (31.1%)
Government National Mortgage Association:
Pool # 780523, 7.5% due 3/15/08 ......................... USD 189,950 193,690 3.5
Pass Thru Pool #436763, 7% due 3/15/27 .................. USD 151,062 148,394 2.7
Federal National Mortgage Association:
Pool #313527, 8% due 5/25/27 ............................ USD 490,320 501,732 9.0
Pool #366961, 7% due 4/1/27 ............................. USD 499,037 489,446 8.8
Pool #363939, 7% due 3/1/04 ............................. USD 201,444 202,325 3.6
Pool #356801, 6% due 12/1/08 ............................ USD 138,444 133,599 2.4
Salomon Brothers Mortgage Securities CMO, 6.0867% due
4/25/27 .................................................. USD 63,042 63,338 1.1
------------
Total Asset Backed (cost $1,721,793) ........................ 1,732,524
------------
Supranational Bonds (9.7%)
International Bank of Reconstruction & Development, 5.25%
due 9/16/03 .............................................. USD 350,000 331,170 5.9
Asian Development Bank, 8% due 4/30/01 .................... USD 200,000 210,430 3.8
------------
Total Supranational Bonds (cost $522,543) ................... 541,600
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $5,346,134) ............ 5,371,383 96.1
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F10
<PAGE>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $160,000 U.S. Treasury Bills, 6.125% due
3/31/98 (market value of collateral is $162,827 including
accrued interest). (cost $159,025) ...................... $ 159,025 2.9
------------ -----
TOTAL INVESTMENTS (cost $5,505,159) * ...................... 5,530,408 99.0
Other Assets and Liabilities ................................ 56,965 1.0
------------ -----
NET ASSETS .................................................. $ 5,587,373 100.0
------------ -----
------------ -----
</TABLE>
- --------------
* For Federal income tax purposes, cost is $5,517,303 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 45,409
Unrealized depreciation: (32,304)
-------------
Net unrealized appreciation: $ 13,105
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F11
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (29.7%)
Telecomunicacoes Brasileiras S.A. (Telebras): ............. BRZL -- -- 10.4
TELEPHONE NETWORKS
ADR{\/} ................................................. -- 14,800 $ 2,245,900 --
Common .................................................. -- 9,000,000 1,220,622 --
Preferred ............................................... -- 2,000,000 303,391 --
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ........... MEX 38,500 1,838,371 5.1
TELEPHONE NETWORKS
Cifra S.A. de C.V.: ....................................... MEX -- -- 2.5
RETAILERS-OTHER
"C"-/- .................................................. -- 467,500 747,670 --
"A"-/- .................................................. -- 72,651 134,305 --
Telecomunicacoes de Sao Paulo S.A. (TELESP) Preferred ..... BRZL 2,455,860 801,890 2.2
TELEPHONE NETWORKS
Telecomunicacoes do Rio de Janeiro S.A. (Telerj)
Preferred ................................................ BRZL 5,177,228 798,346 2.2
TELEPHONE NETWORKS
Telefonica de Argentina S.A. "B" - ADR{\/} ................ ARG 17,800 616,325 1.7
TELEPHONE NETWORKS
Gran Cadena de Almacenes Colombianos S.A. ................. COL 673,766 525,414 1.4
RETAILERS-OTHER
Compania Anonima Nacional Telefonos de Venezuela (CANTV) -
ADR{\/} .................................................. VENZ 10,400 448,500 1.2
TELEPHONE NETWORKS
CPT Telefonica Del Peru, S.A. - ADR{\/} ................... PERU 17,000 445,188 1.2
TELEPHONE - REGIONAL/LOCAL
Lojas Americanas S.A. Preferred-/- ........................ BRZL 20,786,000 281,910 0.8
RETAILERS-OTHER
Compania de Telefonos de Chile S.A. - ADR{\/} ............. CHLE 8,000 264,000 0.7
TELEPHONE NETWORKS
Companhia de Saneamento Basico do Estado de Sao Paulo -
SABESP-/- ................................................ BRZL 400,000 121,876 0.3
BUSINESS & PUBLIC SERVICES
------------
10,793,708
------------
Energy (25.4%)
Centrais Eletricas Brasileiras S.A. (Eletrobras): ......... BRZL -- -- 5.4
ELECTRICAL & GAS UTILITIES
Common-/- ............................................... -- 2,210,000 1,235,876 --
Preferred "B" ........................................... -- 1,248,000 744,279 --
Petroleo Brasileiro S.A. (Petrobras) Preferred ............ BRZL 5,262,000 1,461,580 4.0
OIL
Perez Companc S.A. "B"-/- ................................. ARG 97,249 781,066 2.1
OIL
Light - Servicos de Electricidade S.A. .................... BRZL 1,475,800 734,459 2.0
ELECTRICAL & GAS UTILITIES
C.A. La Electricidad de Caracas ........................... VENZ 444,384 712,709 2.0
ELECTRICAL & GAS UTILITIES
Enron Global Power & Pipelines L.L.C. ..................... US 18,700 622,944 1.7
ELECTRICAL & GAS UTILITIES
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 21,700 489,606 1.3
ELECTRICAL & GAS UTILITIES
Harken Energy Corp.-/- .................................... US 69,600 487,200 1.3
OIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F12
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
YPF S.A. - ADR{\/} ........................................ ARG 15,400 $ 473,550 1.3
OIL
Enersis S.A. ADR{\/} ...................................... CHLE 13,300 472,981 1.3
ELECTRICAL & GAS UTILITIES
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 8,700 442,656 1.2
ELECTRICAL & GAS UTILITIES
Chilgener S.A. - ADR{\/} .................................. CHLE 10,200 285,600 0.8
ELECTRICAL & GAS UTILITIES
Companhia Brasileira de Petroleo Ipiranga S.A.
Preferred ................................................ BRZL 14,594,000 237,381 0.7
ENERGY SOURCES
Compania Paulista de Forca e Luz .......................... BRZL 320,000 53,804 0.2
ELECTRICAL & GAS UTILITIES
Light - Participacoes S.A.-/- ............................. BRZL 50,000 19,926 0.1
ELECTRICAL & GAS UTILITIES
------------
9,255,617
------------
Finance (14.0%)
Uniao de Bancos Brasileiros SA: ........................... BRZL -- -- 2.6
BANKS-MONEY CENTER
Preferred "A" ........................................... -- 21,045,000 772,008 --
GDR-/- {\/} ............................................. -- 4,500 167,063 --
Banco Itau S.A. Preferred ................................. BRZL 1,515,000 848,625 2.3
BANKS-MONEY CENTER
First Financial Caribbean Corp. ........................... US 23,100 753,638 2.1
BANKS-MONEY CENTER
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} .................................................. CHLE 33,100 724,063 2.0
INVESTMENT MANAGEMENT
Grupo Financiero Banamex Accival, S.A. de C.V. "B"-/- ..... MEX 170,000 436,721 1.2
BANKS-MONEY CENTER
Grupo Financiero Banorte "B"-/- ........................... MEX 401,000 417,109 1.1
BANKS-MONEY CENTER
Banco BHIF - ADR{\/} ...................................... CHLE 13,400 283,075 0.8
BANKS-MONEY CENTER
Banco Frances del Rio de la Plata S.A. - ADR{\/} .......... ARG 7,300 237,250 0.7
BANKS-MONEY CENTER
Banco Industrial Colombiano - ADR{\/} ..................... COL 13,100 234,163 0.6
BANKS-MONEY CENTER
Banco Wiese - ADR{\/} ..................................... PERU 18,200 118,300 0.3
BANKS-MONEY CENTER
Inversiones y Representaciones S.A. (IRSA) ................ ARG 26,000 113,643 0.3
REAL ESTATE
------------
5,105,658
------------
Materials/Basic Industry (13.4%)
Apasco S.A. ............................................... MEX 128,000 918,776 2.5
CEMENT
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 209,000 842,211 2.3
PAPER/PACKAGING
Companhia Siderurgica Nacional S.A. ....................... BRZL 18,600,000 613,377 1.7
METALS - STEEL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F13
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Companhia Vale do Rio Doce ................................ BRZL -- -- 1.6
METALS - NON-FERROUS
Preferred ............................................... -- 26,700 $ 590,550 --
Preferred Convertible-/- ................................ -- 20,000 -- --
Grupo Mexico S.A. "B" ..................................... MEX 126,200 476,766 1.3
METALS - NON-FERROUS
Sociedad Quimica y Minera de Chile S.A. - ADR{\/} ......... CHLE 6,600 436,425 1.2
CHEMICALS
Industrias Penoles S.A. "CP" .............................. MEX 85,000 405,679 1.1
METALS - NON-FERROUS
Cementos Argos S.A. ....................................... COL 19,550 156,938 0.4
CEMENT
White Martins S.A. ........................................ BRZL 49,900 146,015 0.4
CHEMICALS
Siderurgica Venezolana Sivensa, Saica S.A.C.A. "B" - 144A
ADR{\/}{.} ............................................... VENZ 19,545 91,432 0.3
METALS - STEEL
Southern Peru Copper Corp.{\/} ............................ PERU 4,300 83,850 0.2
METALS - NON-FERROUS
Venezolana de Cementos, S.A.C.A. "A" ...................... VENZ 24,481 83,067 0.2
CEMENT
Angel Estrada y Cia S.A.-/- ............................... ARG 24,378 76,806 0.2
PAPER/PACKAGING
------------
4,921,892
------------
Multi-Industry/Miscellaneous (8.3%)
Alfa, S.A. de C.V. "A" .................................... MEX 145,000 989,674 2.7
CONGLOMERATE
San Luis "CPO"-/- ......................................... MEX 70,000 519,204 1.4
CONGLOMERATE
Grupo Carso, S.A. de C.V. "A1" ............................ MEX 68,000 475,255 1.3
MULTI-INDUSTRY
Suramericana de Seguros S.A. .............................. COL 14,918 385,952 1.1
CONGLOMERATE
BHI Corp.{\/} ............................................. BLZ 11,600 255,200 0.7
CONGLOMERATE
Commercial Del Plata-/- ................................... ARG 73,000 238,028 0.7
CONGLOMERATE
Credicorp Ltd. ............................................ US 6,640 146,080 0.4
MULTI-INDUSTRY
------------
3,009,393
------------
Consumer Non-Durables (6.5%)
Fomento Economico Mexicano, S.A. de C.V. "B"-/- ........... MEX 84,500 503,318 1.4
BEVERAGES - ALCOHOLIC
Grupo Industrial Maseca, S.A. de C.V. "B" ................. MEX 426,000 466,717 1.3
FOOD
Bavaria ................................................... COL 50,500 362,766 1.0
BEVERAGES - ALCOHOLIC
Companhia Cervejaria Brahma Preferred ..................... BRZL 396,000 301,644 0.8
BEVERAGES - ALCOHOLIC
</TABLE>
The accompanying notes are an integral part of the financial statements.
F14
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Compania Cervecerias Unidas S.A. ADR{\/} .................. CHLE 11,500 $ 252,281 0.7
BEVERAGES - ALCOHOLIC
Grupo Industrial Bimbo, S.A. de C.V. "A" .................. MEX 29,700 212,811 0.6
FOOD
Industrias J B Duarte S.A. Preferred{::}-/- ............... BRZL 215,600,000 62,086 0.2
FOOD
Mavesa S.A. - ADR{\/} ..................................... VENZ 6,200 62,000 0.2
FOOD
Sudamtex de Venezuela "B" - ADR{\/} ....................... VENZ 13,900 43,507 0.1
TEXTILES & APPAREL
Cerveceria Backus & Johnston S.A. "T" ..................... PERU 41,779 43,497 0.1
BEVERAGES - ALCOHOLIC
Embotelladora Andina S.A. - ADR{\/} ....................... CHLE 1,200 25,725 0.1
BEVERAGES - NON-ALCOHOLIC
------------
2,336,352
------------
Consumer Durables (1.5%)
Brasmotor S.A. Preferred .................................. BRZL 2,362,000 526,595 1.5
APPLIANCES & HOUSEHOLD
------------ -----
TOTAL EQUITY INVESTMENTS (cost $31,212,268) ................. 35,949,215 98.8
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Chilgener S.A. Rights, expire 7/7/97 (cost $0){\/} ........ CHLE 3,365 11,273 0.1
------------ -----
ELECTRICAL & GAS UTILITIES
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $2,020,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $2,055,688,
including accrued interest). (cost $2,012,321) .......... 2,012,321 5.5
TOTAL INVESTMENTS (cost $33,224,589) * ..................... 37,972,809 104.4
Other Assets and Liabilities ................................ (1,585,608) (4.4)
------------ -----
NET ASSETS .................................................. $ 36,387,201 100.0
------------ -----
------------ -----
</TABLE>
- --------------
{\/} U.S. currency denominated.
-/- Non-income producing security.
{::} See Note 7 of Notes to Financial Statements.
{.} Security exempt from registration under Rule144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
* For Federal income tax purposes, cost is $33,225,651 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 6,060,109
Unrealized depreciation: (1,312,951)
-------------
Net unrealized appreciation: $ 4,747,158
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F15
<PAGE>
GT GLOBAL VARIABLE LATIN AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Argentina (ARG/ARS) .................. 7.0 7.0
Belize (BLZ/BZD) ..................... 0.7 0.7
Brazil (BRZL/BRL) .................... 40.6 40.6
Chile (CHLE/CLP) ..................... 8.9 0.1 9.0
Colombia (COL/COP) ................... 4.5 4.5
Mexico (MEX/MXN) ..................... 25.8 25.8
Peru (PERU/PES) ...................... 1.8 1.8
United States & Other (US/USD) ....... 5.5 1.1 6.6
Venezuela (VENZ/VEB) ................. 4.0 4.0
------ ----- ----- -----
Total ............................... 98.8 0.1 1.1 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $36,387,201.
The accompanying notes are an integral part of the financial statements.
F16
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (26.1%)
Schweizerischer Bankverein (Swiss Bank Corp.)-/- ........ SWTZ 4,355 $ 1,163,618 2.7
BANKS-MONEY CENTER
Union Bank of Switzerland - Bearer ...................... SWTZ 744 850,140 1.9
BANKS-MONEY CENTER
CS Holding AG - Registered .............................. SWTZ 6,520 836,469 1.9
BANKS-MONEY CENTER
Royal & Sun Alliance Insurance Group PLC ................ UK 108,531 800,653 1.8
INSURANCE - MULTI-LINE
Fortis Amev N.V. ........................................ NETH 14,800 658,615 1.5
OTHER FINANCIAL
ING Groep N.V. .......................................... NETH 14,000 645,112 1.5
OTHER FINANCIAL
ABN AMRO Holdings N.V. .................................. NETH 33,792 629,729 1.4
BANKS-MONEY CENTER
First Tennessee National Corp. .......................... US 13,000 624,000 1.4
BANKS-REGIONAL
AEGON N.V. .............................................. NETH 7,562 527,492 1.2
INSURANCE-LIFE
Commonwealth Bank of Australia .......................... AUSL 38,250 461,817 1.1
BANKS-SUPER REGIONAL
Deutsche Bank AG ........................................ GER 6,750 394,282 0.9
BANKS-MONEY CENTER
National Westminster Bank PLC ........................... UK 27,000 363,072 0.8
BANKS-MONEY CENTER
American General Corp. .................................. US 7,400 353,350 0.8
INSURANCE-LIFE
General Accident PLC .................................... UK 23,766 347,090 0.8
INSURANCE - PROPERTY-CASUALTY
Generale de Banque S.A.: ................................ BEL -- -- 0.7
BANKS-MONEY CENTER
Common ................................................ -- 829 319,006 --
Strip VVPR-/- ......................................... -- 75 33 --
IKB Deutsche Industriebank AG ........................... GER 13,820 276,479 0.6
BANKS-REGIONAL
Lloyds TSB Group PLC .................................... UK 26,571 272,568 0.6
BANKS-REGIONAL
National Australia Bank Ltd. ............................ AUSL 18,000 257,667 0.6
BANKS-REGIONAL
General Property Trust .................................. AUSL 108,500 216,967 0.5
REAL ESTATE
Mercury Asset Management Group PLC ...................... UK 10,211 209,321 0.5
INVESTMENT MANAGEMENT
Commercial Union PLC .................................... UK 17,682 185,948 0.4
INSURANCE - MULTI-LINE
Banco de Santander S.A. ................................. SPN 5,745 176,949 0.4
BANKS-MONEY CENTER
Banco Popular Espanol S.A. .............................. SPN 710 173,887 0.4
BANKS-MONEY CENTER
Dresdner Bank AG ........................................ GER 4,540 156,929 0.4
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F17
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Commerzbank AG .......................................... GER 5,400 $ 152,915 0.4
BANKS-MONEY CENTER
Kredietbank N.V. ........................................ BEL 315 126,903 0.3
BANKS-REGIONAL
M & G Group PLC ......................................... UK 5,000 102,415 0.2
INVESTMENT MANAGEMENT
Societe Generale Paris .................................. FR 475 52,991 0.1
BANKS-MONEY CENTER
Gerrard & National Holdings PLC ......................... UK 7,080 37,928 0.1
SECURITIES BROKER
Compagnie Financiere de Paribas S.A. .................... FR 524 36,180 0.1
OTHER FINANCIAL
Axa-UAP: ................................................ FR -- -- 0.1
INSURANCE - MULTI-LINE
Common ................................................ -- 526 32,695 --
Certificates-/- ....................................... -- 23 2,040 --
------------
11,445,260
------------
Energy (10.8%)
Elektrowatt AG .......................................... SWTZ 2,440 903,209 2.1
ELECTRICAL & GAS UTILITIES
Royal Dutch Petroleum Co. ............................... NETH 14,200 738,198 1.7
OIL
Mobil Corp. ............................................. US 7,300 510,088 1.2
OIL
Exxon Corp. ............................................. US 8,000 492,000 1.1
OIL
Electrabel S.A. ......................................... BEL 1,880 402,723 0.9
ELECTRICAL & GAS UTILITIES
RWE AG .................................................. GER 8,170 351,247 0.8
ELECTRICAL & GAS UTILITIES
Elf Aquitaine ........................................... FR 2,980 321,302 0.7
OIL
Reunies Electrobel & Tractebel S.A. ..................... BEL 763 317,987 0.7
ELECTRICAL & GAS UTILITIES
Santos Ltd. ............................................. AUSL 62,874 264,268 0.6
OIL
Shell Transport & Trading Co., PLC ...................... UK 28,290 192,918 0.4
OIL
Groupe Bruxelles Lambert S.A. ........................... BEL 1,050 175,914 0.4
OIL
Union Electrica Fenosa S.A. ............................. SPN 5,000 45,455 0.1
ELECTRICAL & GAS UTILITIES
Iberdrola S.A. .......................................... SPN 2,000 25,237 0.1
ELECTRICAL & GAS UTILITIES
------------
4,740,546
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F18
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (9.3%)
Avon Products, Inc. ..................................... US 9,600 $ 677,400 1.6
PERSONAL CARE/COSMETICS
Philip Morris Cos., Inc. ................................ US 13,450 596,844 1.4
TOBACCO
Guinness PLC ............................................ UK 52,000 509,176 1.2
BEVERAGES - ALCOHOLIC
EMAIL Ltd. .............................................. AUSL 122,900 439,591 1.0
HOUSEHOLD PRODUCTS
Pernod Ricard ........................................... FR 7,920 408,109 0.9
BEVERAGES - ALCOHOLIC
Brown-Forman Corp. "B" .................................. US 8,125 396,602 0.9
BEVERAGES - ALCOHOLIC
Cadbury Schweppes PLC ................................... UK 44,229 394,415 0.9
BEVERAGES - NON-ALCOHOLIC
Universal Corp. ......................................... US 12,200 387,350 0.9
TOBACCO
Bass PLC ................................................ UK 10,400 126,948 0.3
BEVERAGES - ALCOHOLIC
Associated British Foods Group PLC ...................... UK 8,400 72,521 0.2
FOOD
------------
4,008,956
------------
Services (7.9%)
Telecom Corporation of New Zealand Ltd. ................. NZ 133,160 678,326 1.6
TELEPHONE NETWORKS
Woolworths Ltd. ......................................... AUSL 177,500 582,648 1.3
RETAILERS-OTHER
PMP Communications Ltd. ................................. AUSL 200,000 546,333 1.3
BROADCASTING & PUBLISHING
McGraw-Hill, Inc. ....................................... US 8,880 522,255 1.2
BROADCASTING & PUBLISHING
EMI Group PLC ........................................... UK 22,373 401,447 0.9
LEISURE & TOURISM
United News & Media PLC ................................. UK 21,918 254,220 0.6
BROADCASTING & PUBLISHING
Royal PTT Nederland N.V. ................................ NETH 5,915 231,902 0.5
TELEPHONE NETWORKS
Dun & Bradstreet Corp. .................................. US 4,800 126,000 0.3
BROADCASTING & PUBLISHING
Granada Group PLC, Convertible Preferred, 7.5% till
4/30/03 ................................................ UK 23,482 102,453 0.2
LEISURE & TOURISM
------------
3,445,584
------------
Materials/Basic Industry (5.9%)
BASF AG ................................................. GER 15,500 572,643 1.3
CHEMICALS
CSR Ltd. ................................................ AUSL 130,000 503,245 1.2
BUILDING MATERIALS & COMPONENTS
Solvay S.A. "A" ......................................... BEL 751 442,354 1.0
CHEMICALS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F19
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Akzo Nobel N.V. ......................................... NETH 3,069 $ 420,347 1.0
CHEMICALS
Monsanto Co. ............................................ US 7,500 322,969 0.7
CHEMICALS
RGC Ltd. ................................................ AUSL 51,000 186,651 0.4
MISC. MATERIALS & COMMODITIES
Sons of Gwalia N.L. ..................................... AUSL 40,000 148,808 0.3
GOLD
------------
2,597,017
------------
Health Care (4.2%)
Bristol Myers Squibb Co. ................................ US 13,450 1,089,450 2.5
PHARMACEUTICALS
Bayer AG ................................................ GER 12,500 480,224 1.1
PHARMACEUTICALS
Siemens AG - New ........................................ GER 4,270 253,459 0.6
MEDICAL TECHNOLOGY & SUPPLIES
------------
1,823,133
------------
Multi-Industry/Miscellaneous (1.8%)
VEBA AG ................................................. GER 7,900 443,795 1.0
CONGLOMERATE
Mannesmann AG ........................................... GER 770 342,958 0.8
MULTI-INDUSTRY
------------
786,753
------------
Capital Goods (1.7%)
General Electric PLC .................................... UK 51,900 310,276 0.7
AEROSPACE/DEFENSE
Lockheed Martin Corp. ................................... US 2,726 282,311 0.7
AEROSPACE/DEFENSE
Thomson CSF S.A. ........................................ FR 3,275 84,323 0.2
AEROSPACE/DEFENSE
BICC PLC ................................................ UK 20,327 59,745 0.1
INDUSTRIAL COMPONENTS
------------
736,655
------------
Consumer Durables (1.1%)
GKN PLC ................................................. UK 28,600 492,701 1.1
------------
AUTO PARTS
Technology (0.5%)
Alcatel Alsthom Compagnie Generale d'Electricite ........ FR 1,750 219,040 0.5
TELECOM TECHNOLOGY
------------ -----
TOTAL EQUITY INVESTMENTS (cost $21,327,520) ............... 30,295,645 69.3
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F20
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Government & Government Agency Obligations (21.4%)
Australia (1.2%)
Australian Government, 10% due 10/15/07 ............... AUD 557,000 $ 509,837 1.2
Canada (1.3%)
Canadian Government, 8.75% due 12/1/05 ................ CAD 657,000 553,013 1.3
Denmark (0.7%)
Kingdom of Denmark, 7% due 11/15/07 ................... DKK 1,921,000 303,786 0.7
Germany (3.9%)
Deutschland Republic, 6.75% due 4/22/03 ............... DEM 1,500,000 938,349 2.1
Treuhandanstalt:
6.625% due 7/9/03 ................................... DEM 775,000 481,393 1.1
6.375% due 7/1/99 ................................... DEM 500,000 302,064 0.7
Italy (2.2%)
Italian Buoni Poliennali del Tesoro (BTPS):
6% due 2/15/00 ...................................... ITL 1,125,000,000 661,267 1.5
10.5% due 9/1/05 .................................... ITL 415,000,000 298,518 0.7
New Zealand (0.4%)
New Zealand Government, 8% due 4/15/04 ................ NZD 253,000 181,535 0.4
Spain (1.3%)
Kingdom of Spain, 10.3% due 6/15/02 ................... ESP 71,230,000 579,263 1.3
United Kingdom (3.7%)
United Kingdom Treasury:
10% due 9/8/03 ...................................... GBP 581,000 1,105,400 2.5
6% due 8/10/99 ...................................... GBP 200,000 327,435 0.7
7.5% due 12/7/06 .................................... GBP 121,000 206,772 0.5
United States (6.7%)
United States Treasury:
7.25% due 5/15/04 ................................... USD 1,060,000 1,105,920 2.5
6% due 2/15/26 ...................................... USD 759,000 680,120 1.6
6.25% due 8/15/23 ................................... USD 400,000 370,813 0.8
6.5% due 8/15/05 .................................... USD 360,000 359,409 0.8
7.5% due 2/15/05 .................................... USD 250,000 264,844 0.6
5.625% due 2/28/01 .................................. USD 177,000 173,156 0.4
------------
Total Government & Government Agency Obligations (cost
$9,349,301) .............................................. 9,402,894
------------
Corporate Bonds (3.9%)
Germany (1.5%)
Siemens Capital Corp., 8% due 6/24/02+/+ .............. USD 180,000 293,580 0.7
Commerzbank AG, Convertible Bond, 9.45% due
12/31/00+ ............................................ DEM 187,000 241,294 0.5
Deutsche Bank AG, 9.00% due 12/31/02 .................. DEM 175,000 119,877 0.3
Dresdner Finance, due 4/30/04+/+ ...................... DEM 14 10,553 --
IKB Deutsche Industriebank, 6.45% due 3/31/06 ......... DEM 1,500 902 --
United Kingdom (2.4%)
Daily Mail & General Trust, Convertible Bond, 5.75% due
9/26/03 .............................................. GBP 167,000 379,609 0.9
MBNA Chester Asset Receivable #3, 6.6% due
11/17/03+ ............................................ GBP 200,000 333,372 0.8
</TABLE>
The accompanying notes are an integral part of the financial statements.
F21
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE % OF NET
FIXED INCOME INVESTMENTS CURRENCY AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Corporate Bonds (Continued)
Land Securities PLC, Convertible Bond, 9.375% due
7/31/04 .............................................. GBP 140,000 $ 290,258 0.7
------------
Total Corporate Bonds (cost $1,456,640) ................... 1,669,445
------------ -----
TOTAL FIXED INCOME INVESTMENTS (cost $10,805,941) ......... 11,072,339 25.3
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ----------------------------------------------------------- -------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Societe Generale Banque put warrants due 11/15/99
Tractebel (cost $0) .................................... BEL 763 8,183 --
------------ -----
BANKS-MONEY CENTER
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ----------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $3,355,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $3,414,274,
including accrued interest). (cost $3,345,534) ........ 3,345,534 7.7
------------ -----
TOTAL INVESTMENTS (cost $35,478,995) * ................... 44,721,701 102.3
Other Assets and Liabilities .............................. (1,014,860) (2.3)
------------ -----
NET ASSETS ................................................ $ 43,706,841 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
+ The coupon rate shown on floating rate note represents the rate at
period end.
+/+ Issued with detachable warrants or value recovery rights. The
current market value of each warrant or right is zero.
* For Federal income tax purposes, cost is $35,484,070 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 9,577,859
Unrealized depreciation: (340,228)
-------------
Net unrealized appreciation: $ 9,237,631
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F22
<PAGE>
GT GLOBAL VARIABLE GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 8.3 1.2 9.5
Belgium (BEL/BEF) .................... 4.0 4.0
Canada (CAN/CAD) ..................... 1.3 1.3
Denmark (DEN/DKK) .................... 0.7 0.7
France (FR/FRF) ...................... 2.6 2.6
Germany (GER/DEM) .................... 7.9 5.4 13.3
Italy (ITLY/ITL) ..................... 2.2 2.2
Netherlands (NETH/NLG) ............... 8.8 8.8
New Zealand (NZ/NZD) ................. 1.6 0.4 2.0
Spain (SPN/ESP) ...................... 1.0 1.3 2.3
Switzerland (SWTZ/CHF) ............... 8.6 8.6
United Kingdom (UK/GBP) .............. 11.8 6.1 17.9
United States & Other (US/USD) ....... 14.7 6.7 5.4 26.8
------ ----- ----- -----
Total ............................... 69.3 25.3 5.4 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $43,706,841.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET VALUE
(U.S. CONTRACT DELIVERY UNREALIZED
CONTRACTS TO SELL: DOLLARS) PRICE DATE APPRECIATION
- ---------------------------------------- ------------ -------- -------- ------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 1,237,980 1.69000 08/29/97 $ 34,209
French Francs........................... 34,101 5.78200 08/06/97 489
French Francs........................... 153,595 5.69000 08/20/97 4,578
Netherland Guilders..................... 526,195 1.89670 08/14/97 16,853
Swiss Francs............................ 366,255 1.43330 09/19/97 3,521
------------ ------------
Total Contracts to Sell (Receivable
amount $2,377,776)................. 2,318,126 $ 59,650
------------ ------------
------------
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF NET ASSETS IS 5.30%.
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F23
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Telecom Equipment (31.3%)
L.M. Ericsson Telephone Co. - ADR{\/} ..................... SWDN 90,000 $ 3,543,750 5.1
Nokia AB Preferred - ADR{\/} .............................. FIN 46,000 3,392,500 4.9
ECI Telecommunications Ltd.{\/} ........................... ISRL 100,000 2,975,000 4.3
Newbridge Networks Corp.-/- ............................... CAN 63,000 2,701,626 3.9
Tekelec-/- ................................................ US 34,300 1,213,363 1.8
Motorola, Inc. ............................................ US 14,000 1,064,000 1.5
DSC Communications Corp.-/- ............................... US 47,000 1,045,750 1.5
Andrew Corp.-/- ........................................... US 30,000 843,750 1.2
P-COM, Inc.-/- ............................................ US 25,000 825,000 1.2
Octel Communications Corp.-/- ............................. US 30,000 703,125 1.0
General Instrument Corp. .................................. US 25,000 625,000 0.9
ANTEC Corp.-/- ............................................ US 50,000 587,500 0.8
Geotek Communications, Inc. ............................... US 100,000 543,750 0.8
Teledata Communications Ltd.{\/} .......................... ISRL 15,100 519,063 0.7
Mitec Telecom, Inc.-/- .................................... CAN 43,900 349,801 0.5
Champion Technology Holding Ltd. .......................... HK 2,278,928 294,177 0.4
Pairgain Technologies, Inc.-/- ............................ US 14,900 230,950 0.3
Allen Group, Inc.-/- ...................................... US 11,000 228,250 0.3
Performance Technologies, Inc.-/- ......................... US 10,000 152,500 0.2
------------
21,838,855
------------
Telephone Networks (23.4%)
Telecomunicacoes Brasileiras S.A. (Telebras) - ADR{\/} .... BRZL 29,776 4,518,508 6.5
SPT Telecom-/- ............................................ CZCH 19,900 2,089,820 3.0
WorldCom, Inc.-/- ......................................... US 62,000 1,984,000 2.9
Cable & Wireless PLC - ADR-/- {\/} ........................ UK 60,000 1,676,250 2.4
Stet Societa' Finanziaria Telefonica S.p.A. - Di Risp ..... ITLY 470,000 1,625,107 2.3
NTL, Inc.-/- {\/} ......................................... UK 40,000 995,000 1.4
Hellenic Telecommunications Organization S.A. ............. GREC 41,500 974,391 1.4
Portugal Telecom S.A. - ADR{\/} ........................... PORT 22,000 882,750 1.3
Telecom Italia S.p.A. - Di Risp ........................... ITLY 425,000 848,852 1.2
Matav (Hungarian Telecommunications Co., Ltd.)-/- ......... HGRY 1,000 363,054 0.5
CPT Telefonica Del Peru, S.A. - ADR{\/} ................... PERU 12,200 319,488 0.5
------------
16,277,220
------------
Wireless Communications (17.1%)
DDI Corp. ................................................. JPN 327 2,415,665 3.5
Millicom International Cellular S.A.-/- {\/} .............. LUX 40,000 1,910,000 2.8
Nextel Communications, Inc. "A"-/- ........................ US 100,000 1,893,750 2.7
Vimpel-Communications - ADR{\/} ........................... RUS 40,000 1,520,000 2.2
Grupo Iusacell S.A. - "L" ADR-/- {\/} ..................... MEX 65,000 1,194,375 1.7
Cellularvision USA, Inc.-/- ............................... US 115,000 920,000 1.3
Korea Mobile Telecommunications: .......................... KOR -- -- 1.3
ADR{\/} ................................................. -- 63,860 642,591 --
Common .................................................. -- 329 242,669 --
WinStar Communications, Inc.-/- ........................... US 25,000 334,375 0.5
Clearnet Communications, Inc. "A" ......................... CAN 21,000 260,884 0.4
</TABLE>
The accompanying notes are an integral part of the financial statements.
F24
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Wireless Communications (Continued)
Western Wireless Corp. "A"-/- ............................. US 16,000 $ 254,000 0.4
Intercel, Inc.-/- ......................................... US 15,000 206,250 0.3
------------
11,794,559
------------
Multi-Industry (5.3%)
Mannesmann AG ............................................. GER 5,900 2,627,859 3.8
Grupo Carso, S.A. de C.V. "A1" ............................ MEX 150,000 1,048,357 1.5
------------
3,676,216
------------
Telephone - Regional/Local (4.2%)
ICG Communications, Inc.-/- ............................... US 45,000 866,250 1.2
Intermedia Communications of Florida, Inc.-/- ............. US 23,000 744,625 1.1
Russian Regional Telecommunications Basket Bridge
Certificates{\/} ......................................... RUS 66 727,766 1.1
Brooks Fiber Properties, Inc.-/- .......................... US 16,000 540,000 0.8
------------
2,878,641
------------
Instrumentation & Test (3.0%)
Uniphase Corp.-/- ......................................... US 20,000 1,165,000 1.7
Murata Manufacturing Co., Ltd. ............................ JPN 22,000 876,004 1.3
------------
2,041,004
------------
Cable Television (2.4%)
Comcast UK Cable Partners Ltd. "A"{\/} .................... UK 85,000 1,020,000 1.5
Comcast Corp. "A" ......................................... US 22,000 470,250 0.7
United International Holdings, Inc. "A"-/- ................ US 12,000 124,500 0.2
------------
1,614,750
------------
Telephone - Long Distance (1.8%)
Call-Net Enterprises, Inc. "B"-/- ......................... CAN 61,300 999,095 1.4
TeleBermuda International Ltd.(.) {\/} .................... BDA 33,200 240,700 0.3
Qwest Communications International, Inc.-/- ............... US 2,500 68,125 0.1
------------
1,307,920
------------
Aerospace/Defense (1.7%)
Orbital Sciences Corp.-/- ................................. US 75,000 1,190,625 1.7
------------
Telecom - Other (1.3%)
Carso Global Telecom "A1"-/- .............................. MEX 215,000 866,390 1.3
------------
Beverages - Alcoholic (0.0%)
Bavaria ................................................... COL 3,000 21,550 --
------------ -----
TOTAL EQUITY INVESTMENTS (cost $54,117,345) ................. 63,507,730 91.5
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F25
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hellenic Telecommunication Organization S.A. Rights, expire
7/18/97 (cost $0) ........................................ GREC 41,500 $ 5,099 --
------------ -----
TELEPHONE NETWORKS
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%
collateralized by $4,840,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $4,925,510,
including accrued interest). (cost $4,828,771) .......... 4,828,771 7.0
------------ -----
TOTAL INVESTMENTS (cost $58,946,116) * ..................... 68,341,600 98.5
Other Assets and Liabilities ................................ 1,042,155 1.5
------------ -----
NET ASSETS .................................................. $ 69,383,755 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
(.) Restricted securities: At June 30, 1997 the Fund owned the
following resticted security constituting less than 0.4% of net
assets which may not be publicly sold without registration under
the Securities Act of 1933 (Note 1).
<TABLE>
<CAPTION>
VALUE
ACQUISITION PER SHARE
DESCRIPTION ACQUISITION DATE SHARES COST (NOTE 1)
----------------------------------------------- ----------------- ------ ----------- ------------
<S> <C> <C> <C> <C>
TeleBermuda International Ltd.................. 10/04/96 33,200 $ 282,200 $7.25
</TABLE>
* For Federal income tax purposes, cost is $58,946,116 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 11,410,643
Unrealized depreciation: (2,015,159)
-------------
Net unrealized appreciation: $ 9,395,484
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F26
<PAGE>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 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>
Bermuda (BDA/BMD) .................... 0.3 0.3
Brazil (BRZL/BRL) .................... 6.5 6.5
Canada (CAN/CAD) ..................... 6.2 6.2
Czech Republic (CZCH/CSK) ............ 3.0 3.0
Finland (FIN/FIM) .................... 4.9 4.9
Germany (GER/DEM) .................... 3.8 3.8
Greece (GREC/GRD) .................... 1.4 1.4
Hong Kong (HK/HKD) ................... 0.4 0.4
Hungary (HGRY/HUF) ................... 0.5 0.5
Israel (ISRL/ILS) .................... 5.0 5.0
Italy (ITLY/ITL) ..................... 3.5 3.5
Japan (JPN/JPY) ...................... 4.8 4.8
Korea (KOR/KRW) ...................... 1.3 1.3
Luxembourg (LUX/LUF) ................. 2.8 2.8
Mexico (MEX/MXN) ..................... 4.5 4.5
Peru (PERU/PES) ...................... 0.5 0.5
Portgual (PORT/PTE) .................. 1.3 1.3
Russia (RUS/SUR) ..................... 3.3 3.3
Sweden (SWDN/SEK) .................... 5.1 5.1
United Kingdom (UK/GBP) .............. 5.3 5.3
United States & Other (US/USD) ....... 27.1 8.5 35.6
------ ----- -----
Total ............................... 91.5 8.5 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $69,383,755.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
British Pounds.......................... 1,331,302 0.61861 07/21/97 $ (38,070)
Deutsche Marks.......................... 345,483 1.69400 08/29/97 8,708
Deutsche Marks.......................... 460,644 1.69000 08/29/97 12,729
Finnish Markkaa......................... 1,465,063 5.13750 07/21/97 14,256
Italian Liras........................... 1,820,533 1,693.80000 07/21/97 9,671
Japanese Yen............................ 170,189 121.00000 07/07/97 (9,115)
Japanese Yen............................ 115,053 125.33000 08/06/97 (10,529)
Japanese Yen............................ 131,740 114.39500 08/06/97 (615)
Japanese Yen............................ 659,263 118.17700 08/12/97 (24,622)
Japanese Yen............................ 131,853 122.25000 08/12/97 (9,154)
Japanese Yen............................ 312,491 116.69400 08/12/97 (8,550)
-------------- --------------
Total Contracts to Sell (Receivable
amount $6,888,323)................... 6,943,614 $ (55,291)
-------------- --------------
--------------
THE VALUE OF CONTRACTS TO SELL AS A
PERCENTAGE OF NET ASSETS IS 10.01%.
</TABLE>
- --------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F27
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (21.4%)
Malayan Banking Bhd. ...................................... MAL 41,000 $ 430,553 1.9
BANKS-MONEY CENTER
Rashid Hussain Bhd. ....................................... MAL 64,000 405,786 1.7
SECURITIES BROKER
Uniao Bancos Brasileiras "A" Preferred .................... BRZL 9,628,127 353,195 1.5
BANKS-MONEY CENTER
Amalgamated Banks of South Africa-/- ...................... SAFR 38,475 276,124 1.2
BANKS-REGIONAL
Malaysian Resources Corp., Bhd. ........................... MAL 98,000 269,903 1.2
REAL ESTATE
China Resources Enterprise Ltd. ........................... HK 52,000 255,073 1.1
REAL ESTATE INVESTMENT TRUST
State Bank of India Ltd. - GDR{\/} ........................ IND 9,180 243,270 1.0
BANKS-REGIONAL
Banco LatinoAmericano de Exportaciones S.A. (Bladex)
"E"{\/} .................................................. PAN 5,459 236,102 1.0
OTHER FINANCIAL
Turkiye Is Bankasi (Isbank) "C" ........................... TRKY 492,000 192,291 0.8
BANKS-MONEY CENTER
Metroplex Bhd. ............................................ MAL 180,000 186,883 0.8
REAL ESTATE
Yapi ve Kredi Bankasi AS .................................. TRKY 6,500,000 148,922 0.6
BANKS-MONEY CENTER
Kookmin Bank: ............................................. KOR -- -- 0.6
BANKS-MONEY CENTER
GRD-/- {\/} ............................................. -- 3,810 80,963 --
Common .................................................. -- 3,248 61,145 --
PT Lippo Bank - Foreign ................................... INDO 130,000 133,690 0.6
BANKS-MONEY CENTER
Akbank T.A.S. ............................................. TRKY 1,555,000 133,600 0.6
BANKS-REGIONAL
Bank Negara Indonesia - Foreign ........................... INDO 177,000 112,855 0.5
BANKS-REGIONAL
Administradora de Fondos de Pensiones Provida S.A. -
ADR{\/} .................................................. CHLE 5,122 112,044 0.5
INVESTMENT MANAGEMENT
Global Menkul Degerler AS-/- .............................. TRKY 4,371,026 108,981 0.5
SECURITIES BROKER
Commercial International Bank: ............................ EGPT -- -- 0.4
BANKS-MONEY CENTER
Common .................................................. -- 5,000 104,636 --
GDR - 144A{.} {\/} ...................................... -- 164 3,419 --
Bank Hapoalim Ltd.-/- ..................................... ISRL 45,434 94,847 0.4
BANKS-REGIONAL
Banco de A. Edwards - ADR{\/} ............................. CHLE 4,463 93,165 0.4
BANKS-MONEY CENTER
Turkiye Garanti Bankasi AS ................................ TRKY 2,460,000 92,830 0.4
BANKS-REGIONAL
Thai Farmers Bank Ltd. - Foreign .......................... THAI 21,800 92,658 0.4
BANKS-REGIONAL
Egyptian American Bank SAE-/- ............................. EGPT 2,100 82,826 0.4
BANKS-MONEY CENTER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F28
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (Continued)
Daegu Bank ................................................ KOR 7,174 $ 59,837 0.3
BANKS-MONEY CENTER
Korea Exchange Bank ....................................... KOR 8,900 58,764 0.3
BANKS-MONEY CENTER
Siam Commercial Bank PLC - Foreign ........................ THAI 13,200 54,065 0.2
BANKS-MONEY CENTER
Aksigorta ................................................. TRKY 848,000 53,714 0.2
INSURANCE - MULTI-LINE
Ergo Bank S.A. ............................................ GREC 832 49,973 0.2
BANKS-MONEY CENTER
Banco Frances del Rio de la Plata S.A. - ADR{\/} .......... ARG 1,528 49,660 0.2
BANKS-MONEY CENTER
BPI-SGPS S.A. ............................................. PORT 2,550 49,624 0.2
BANKS-MONEY CENTER
Commercial Bank of Korea .................................. KOR 9,150 49,158 0.2
BANKS-REGIONAL
Alpha Credit Bank ......................................... GREC 720 48,985 0.2
BANKS-REGIONAL
Malaysian Assurance Alliance Bhd. ......................... MAL 7,900 46,019 0.2
INSURANCE - MULTI-LINE
Ayala Land, Inc. "B" ...................................... PHIL 45,000 41,414 0.2
REAL ESTATE
Bank Leumi Le - Israel-/- ................................. ISRL 25,611 38,942 0.2
BANKS-REGIONAL
Bank Slaski S.A. .......................................... POL 467 33,408 0.1
BANKS-MONEY CENTER
PT Jaya Real Property - Foreign ........................... INDO 22,000 29,638 0.1
REAL ESTATE
Phatra Thanakit Co., Ltd. - Foreign ....................... THAI 17,600 21,762 0.1
INVESTMENT MANAGEMENT
------------
4,990,724
------------
Services (17.4%)
Telecomunicacoes Brasileiras S.A. (Telebras): ............. BRZL -- -- 6.2
TELEPHONE NETWORKS
ADR{\/} ................................................. -- 7,248 1,099,884 --
Common .................................................. -- 2,534,538 343,746 --
Telefonos de Mexico, S.A. de C.V. "L" - ADR{\/} ........... MEX 7,128 340,362 1.5
TELEPHONE NETWORKS
Pick'n Pay Stores Ltd. .................................... SAFR 194,371 291,417 1.3
RETAILERS-OTHER
Compania de Telefonos de Chile S.A. - ADR{\/} ............. CHLE 5,734 189,222 0.8
TELEPHONE NETWORKS
Cifra, S.A. de C.V. - B ................................... MEX 99,280 185,033 0.8
RETAILERS-OTHER
Telecomunicacoes de Sao Paulo S.A. (TELESP) Preferred ..... BRZL 485,889 158,653 0.7
TELEPHONE NETWORKS
Konsortium Perkapalan Berhad .............................. MAL 26,000 153,517 0.7
TRANSPORTATION - SHIPPING
PT Telekomunikasi Indonesia - Foreign ..................... INDO 77,000 125,905 0.5
TELECOM - OTHER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F29
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Mahanagar Telephone Nigam Ltd. ............................ IND 14,800 $ 125,748 0.5
TELECOM - OTHER
Advanced Info. Service "L" ................................ THAI 12,800 111,777 0.5
WIRELESS COMMUNICATIONS
Compania Anonima Nacional Telefonos de Venezuela (CANTV) -
ADR{\/} .................................................. VENZ 2,547 109,839 0.5
TELEPHONE NETWORKS
SM Prime Holdings, Inc. ................................... PHIL 304,000 89,989 0.4
RETAILERS-APPAREL
PT Matahari Putra Prima - Foreign ......................... INDO 43,000 86,672 0.4
RETAILERS-APPAREL
Telecomasia (Local)-/- .................................... THAI 62,700 75,710 0.3
TELEPHONE NETWORKS
Telefonica de Argentina S.A. "B" - ADR{\/} ................ ARG 2,017 69,839 0.3
TELEPHONE NETWORKS
Migros Turk T.A.S. ........................................ TRKY 90,000 63,679 0.3
RETAILERS-FOOD
Indian Hotels Co., Ltd. - GDR{\/} ......................... IND 2,600 61,750 0.3
LEISURE & TOURISM
Portugal Telecom S.A. - Registered ........................ PORT 1,284 51,798 0.2
TELEPHONE NETWORKS
Sonae Investimentos-Sociedade Gestora de Participacoes
Sociais S.A. ............................................. PORT 1,169 48,879 0.2
RETAILERS-OTHER
Hellenic Telecommunications Organization S.A. ............. GREC 1,930 45,315 0.2
TELEPHONE NETWORKS
PT Steady Safe Transportation - Foreign ................... INDO 34,500 40,446 0.2
TRANSPORTATION - ROAD & RAIL
Danubius Hotel and Spa Rt.-/- ............................. HGRY 1,367 40,397 0.2
LEISURE & TOURISM
Philippine Long Distance Telephone Co. .................... PHIL 1,000 32,448 0.1
TELEPHONE - LONG DISTANCE
Investec-Consultoria Internacional S.A.-/- ................ PORT 914 31,154 0.1
BROADCASTING & PUBLISHING
Blue Square Chain Investments & Properties Ltd.-/- ........ ISRL 1,867 18,178 0.1
RETAILERS-FOOD
Estabelecimentos Jeronimo Martins & Filho, Sociedade
Gestora de Participacoes Sociais S.A. .................... PORT 237 16,556 0.1
RETAILERS-OTHER
------------
4,007,913
------------
Energy (17.2%)
LUKoil Holding - ADR{\/} .................................. RUS 5,198 405,444 1.7
GAS PRODUCTION & DISTRIBUTION
Petroleo Brasileiro S.A. (Petrobras) Preferred-/- ......... BRZL 1,441,650 400,435 1.7
OIL
Centrais Eletricas Brasileiras S.A.-Eletrobras "B" -
ADR{\/} .................................................. BRZL 13,916 384,356 1.7
ELECTRICAL & GAS UTILITIES
Sasol Ltd. ................................................ SAFR 26,745 350,860 1.5
ENERGY SOURCES
Surgutneftegaz - ADR{\/} .................................. RUS 5,682 301,146 1.3
OIL
</TABLE>
The accompanying notes are an integral part of the financial statements.
F30
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 5,420 $ 275,770 1.2
ELECTRICAL & GAS UTILITIES
Empresa Nacional de Electricidad S.A. - ADR{\/} ........... CHLE 8,877 200,287 0.9
ELECTRICAL & GAS UTILITIES
C.A. La Electricidad de Caracas ........................... VENZ 123,583 198,204 0.9
ELECTRICAL & GAS UTILITIES
Light - Participacoes S.A.-/- ............................. BRZL 461,507 183,917 0.8
ELECTRICAL & GAS UTILITIES
Chilgener S.A. - ADR-/- {\/} .............................. CHLE 5,945 166,460 0.7
ELECTRICAL & GAS UTILITIES
Light - Servicos de Electricidade S.A. .................... BRZL 333,328 165,887 0.7
ELECTRICAL & GAS UTILITIES
Korea Electric Power Corp. - ADR{\/} ...................... KOR 8,450 157,909 0.7
ELECTRICAL & GAS UTILITIES
PTT Exploration and Production Public Co., Ltd. -
Foreign .................................................. THAI 7,900 114,776 0.5
OIL
Manila Electric Co. "B" ................................... PHIL 21,230 104,740 0.5
ELECTRICAL & GAS UTILITIES
Electricity Generating Public Co., Ltd. - Foreign ......... THAI 39,800 97,655 0.4
ELECTRICAL & GAS UTILITIES
Enersis S.A. ADR{\/} ...................................... CHLE 2,503 89,013 0.4
ELECTRICAL & GAS UTILITIES
Belle Corp.-/- ............................................ PHIL 298,000 87,082 0.4
OIL
YPF S.A. - ADR{\/} ........................................ ARG 2,378 73,124 0.3
OIL
Bombay Suburban Electric Supply (BSES) Ltd.-/- ............ IND 8,850 58,979 0.3
ELECTRICAL & GAS UTILITIES
Yukong Ltd. ............................................... KOR 2,100 50,959 0.2
OIL
Perez Companc S.A. "B"-/- ................................. ARG 6,326 50,808 0.2
OIL
Guangdong Electric Power Development Co., Ltd. "B" ........ CHNA 52,800 43,280 0.2
ENERGY SOURCES
EDP-Electricidade de Portugal S.A. ........................ PORT 400 7,341 --
ELECTRICAL & GAS UTILITIES
------------
3,968,432
------------
Materials/Basic Industry (16.3%)
General Mining Union Corp. (Gencor) ....................... SAFR 89,726 413,466 1.8
METALS - NON-FERROUS
SA Iron & Steel Industrial Corp., Ltd. (ISCOR) ............ SAFR 498,984 330,052 1.4
METALS - STEEL
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 73,809 297,430 1.3
PAPER/PACKAGING
PT Gudang Garam - Foreign ................................. INDO 65,500 274,825 1.2
MISC. MATERIALS & COMMODITIES
Sappi Ltd. ................................................ SAFR 25,052 226,465 1.0
FOREST PRODUCTS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F31
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Materials/Basic Industry (Continued)
Caemi Mineracao e Metalurgia S.A. Preferred-/- ............ BRZL 4,030,854 $ 193,211 0.8
METALS - STEEL
Pohang Iron & Steel Co., Ltd. ............................. KOR 1,620 165,906 0.7
METALS - STEEL
North Cairo Flour Mills-/- ................................ EGPT 3,000 156,291 0.7
MISC. MATERIALS & COMMODITIES
Cosco Pacific Ltd. ........................................ HK 62,000 143,659 0.6
PAPER/PACKAGING
Anglo American Corporation of South Africa Ltd. ........... SAFR 2,383 143,568 0.6
GOLD
Apasco S.A. ............................................... MEX 19,431 139,474 0.6
CEMENT
Helwan Portland Cement Co.-/- ............................. EGPT 6,500 137,595 0.6
CEMENT
Cahya Mata Sarawak Bhd. ................................... MAL 16,000 130,612 0.6
BUILDING MATERIALS & COMPONENTS
Industrias Penoles S.A. "CP" .............................. MEX 26,540 126,667 0.5
METALS - NON-FERROUS
Ameriyah Cement Co.-/- .................................... EGPT 4,500 109,669 0.5
CEMENT
Siam Cement Co., Ltd. - Foreign ........................... THAI 5,600 96,940 0.4
CEMENT
Maanshan Iron and Steel Co. "H" ........................... CHNA 444,000 92,849 0.4
METALS - STEEL
Torah Portland Cement Co.-/- .............................. EGPT 3,000 75,938 0.3
CEMENT
Paints & Chemical Industry-/- ............................. EGPT 2,150 72,458 0.3
CHEMICALS
Eregli Demir Ve Celik Fabrikalari T.A.S. .................. TRKY 428,673 71,494 0.3
METALS - STEEL
Titan Cement Co., S.A. .................................... GREC 1,422 70,140 0.3
BUILDING MATERIALS & COMPONENTS
Pannonplast Rt. ........................................... HGRY 1,301 65,293 0.3
MISC. MATERIALS & COMMODITIES
Turk Sise ve Cam Fabrikalari AS-/- ........................ TRKY 1,022,000 64,736 0.3
GLASS
Helioplis Housing-/- ...................................... EGPT 500 59,176 0.3
BUILDING MATERIALS & COMPONENTS
Israel Chemicals Ltd.-/- .................................. ISRL 40,974 48,346 0.2
CHEMICALS
Cimpor-Cimentos de Portugal, SGPS S.A. .................... PORT 1,363 31,767 0.1
CEMENT
Agros Holding S.A.-/- ..................................... POL 1,049 27,941 0.1
MISC. MATERIALS & COMMODITIES
Oryx Gold Holdings Ltd.-/- ................................ SAFR 26,430 26,806 0.1
GOLD
------------
3,792,774
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F32
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Multi-Industry/Miscellaneous (11.0%)
GT Taiwan Fund{\/} +X+ .................................... TWN 49,751 $ 762,687 3.3
COUNTRY FUNDS
Barlow Ltd. ............................................... SAFR 38,024 413,733 1.8
CONGLOMERATE
Sime Darby Bhd. ........................................... MAL 69,000 229,681 1.0
MISCELLANEOUS
Renong Bhd. ............................................... MAL 159,000 207,926 0.9
MULTI-INDUSTRY
Shanghai Industrial Holdings Ltd. ......................... HK 33,000 205,323 0.9
MULTI-INDUSTRY
Bimantara Citra - Foreign ................................. INDO 79,000 138,112 0.6
CONGLOMERATE
Haci Omer Sabanci Holding Reg S - ADR{c} -/- {\/} ......... TRKY 14,103 126,927 0.5
MISCELLANEOUS
Koc Holding AS ............................................ TRKY 474,000 111,792 0.5
CONGLOMERATE
San Luis "CPO"-/- ......................................... MEX 13,037 96,698 0.4
CONGLOMERATE
Koor Industries Ltd. - ADR{\/} ............................ ISRL 3,562 62,780 0.3
CONGLOMERATE
Mosenergo - 144A ADR{.} {\/} .............................. RUS 1,342 55,693 0.2
MISCELLANEOUS
Ayala Corp. "B" ........................................... PHIL 66,000 47,590 0.2
CONGLOMERATE
Graboplast Rt. ............................................ HGRY 838 39,372 0.2
MISCELLANEOUS
Banco Comercial Portugues "A", Convertible Preferred, 8%
till 6/30/03{\/} ......................................... PORT 415 28,428 0.1
MISCELLANEOUS
Discount Investment Corp. ................................. ISRL 244 19,509 0.1
MULTI-INDUSTRY
------------
2,546,251
------------
Consumer Non-Durables (6.1%)
South African Breweries Ltd. .............................. SAFR 11,723 359,922 1.6
BEVERAGES - ALCOHOLIC
Gruma S.A. "B"-/- ......................................... MEX 48,997 228,295 1.0
FOOD
Companhia Cervejaria Brahma Preferred-/- .................. BRZL 229,241 174,619 0.8
BEVERAGES - ALCOHOLIC
Eastern Tobacco Co.-/- .................................... EGPT 5,200 131,626 0.6
TOBACCO
San Miguel Corp. "B" ...................................... PHIL 48,200 127,131 0.5
BEVERAGES - ALCOHOLIC
Fomento Economico Mexicano, S.A. de C.V. "B"-/- ........... MEX 20,964 124,871 0.5
BEVERAGES - ALCOHOLIC
A-Ahram Beverages Co. S.A.E. - GDR-/- {\/} ................ EGPT 5,000 102,250 0.4
BEVERAGES - ALCOHOLIC
Embotelladora Andina S.A. "B" - ADR{\/} ................... CHLE 3,807 79,471 0.3
BEVERAGES - NON-ALCOHOLIC
</TABLE>
The accompanying notes are an integral part of the financial statements.
F33
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Non-Durables (Continued)
Ng Fung Hong Ltd. ......................................... HK 30,000 $ 44,922 0.2
FOOD
La Tondena Distillers, Inc. ............................... PHIL 9,200 22,171 0.1
BEVERAGES - NON-ALCOHOLIC
Zaklady Piwowarskie w Zywcu S.A. (Zywiec) ................. POL 289 18,475 0.1
BEVERAGES - ALCOHOLIC
------------
1,413,753
------------
Capital Goods (4.7%)
United Engineers Ltd. ..................................... MAL 41,000 295,700 1.3
CONSTRUCTION
Delta Electrical Industries Ltd.-/- ....................... ZBBW 155,800 239,272 1.0
ELECTRICAL PLANT/EQUIPMENT
ECI Telecommunications Ltd.{\/} ........................... ISRL 3,600 107,100 0.5
TELECOM EQUIPMENT
New World Infrastructure Ltd.-/- .......................... HK 30,000 84,809 0.4
INDUSTRIAL COMPONENTS
Cheung Kong Infrastructure Holdings ....................... HK 29,000 84,041 0.4
CONSTRUCTION
IJM Corporation Bhd. ...................................... MAL 37,000 77,710 0.3
CONSTRUCTION
Hindalco Industries Ltd. .................................. IND 2,700 73,863 0.3
INDUSTRIAL COMPONENTS
Irkutskenergo - ADR{\/} ................................... RUS 2,286 38,291 0.2
ELECTRICAL PLANT/EQUIPMENT
Elektrim Spolka Akcyjna S.A. .............................. POL 3,946 34,355 0.1
ELECTRICAL PLANT/EQUIPMENT
C & P Homes, Inc. ......................................... PHIL 88,000 33,063 0.1
CONSTRUCTION
Sungmi Telecom Electronics Co. ............................ KOR 160 21,321 0.1
ELECTRICAL PLANT/EQUIPMENT
Hindalco Industries Ltd. - 144A GDR{.} {\/} ............... IND 330 11,666 --
INDUSTRIAL COMPONENTS
------------
1,101,191
------------
Consumer Durables (4.0%)
Samsung Electronics Co.: .................................. KOR -- -- 1.0
CONSUMER ELECTRONICS
GDR - 144A{.} -/- {\/} .................................. -- 2,010 117,585 --
Common .................................................. -- 1,016 112,373 --
Suez Cement Co. - Reg S GDR-/- {c} {\/} ................... EGPT 9,963 201,253 0.9
CEMENT
Arcelik AS ................................................ TRKY 1,178,000 158,760 0.7
APPLIANCES & HOUSEHOLD
PT Astra International - Foreign .......................... INDO 29,500 121,349 0.5
AUTO PARTS
Qingling Motors Co., Ltd.-/- .............................. CHNA 168,000 86,745 0.4
AUTOMOBILES
Tata Engineering and Locomotive Co., Ltd. - GDR{\/} ....... IND 5,070 77,825 0.3
AUTOMOBILES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F34
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (Continued)
BEC World Public Co., Ltd. ................................ THAI 4,100 $ 35,170 0.2
CONSUMER ELECTRONICS
------------
911,060
------------
Technology (1.8%)
Asustek Computer Inc. Reg. S - GDR-/- {c} {\/} ............ TWN 35,734 404,688 1.7
COMPUTERS & PERIPHERALS
Clal Electronics Industries Ltd. .......................... ISRL 173 22,406 0.1
SEMICONDUCTORS
------------
427,094
------------
Health Care (1.9%)
Teva Pharmaceutical Industries Ltd. ....................... ISRL 1,774 115,036 0.5
MEDICAL TECHNOLOGY & SUPPLIES
Richter Gedeon Rt. - GDR{\/} .............................. HGRY 1,205 110,860 0.5
PHARMACEUTICALS
Ranbaxy Laboratories Ltd. ................................. IND 4,600 87,722 0.4
MEDICAL TECHNOLOGY & SUPPLIES
Egypt International Pharmaceuticals-/- .................... EGPT 1,000 61,887 0.3
PHARMACEUTICALS
PT Kalbe Farma - Foreign .................................. INDO 31,000 41,444 0.2
MEDICAL TECHNOLOGY & SUPPLIES
------------
416,949
------------ -----
TOTAL EQUITY INVESTMENTS (cost $22,579,034) ................. 23,576,141 101.8
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Chilgener S.A. Rights, expire 7/7/97{\/} .................. CHLE 1,961 6,571 --
ELECTRICAL & GAS UTILITIES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F35
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hellenic Telecommunication Organization S.A. Rights, expire
8/18/97 .................................................. GREC 1,930 $ 237 --
TELEPHONE NETWORKS
Rashid Hussain Bhd. Rights for Warrants, expire 8/5/97 .... MAL 9,143 -- --
OTHER FINANCIAL
------------ -----
TOTAL RIGHTS (cost $0) ...................................... 6,808 --
------------ -----
TOTAL INVESTMENTS (cost $22,579,034) * ..................... 23,582,949 101.8
Other Assets and Liabilities ................................ (414,531) (1.8)
------------ -----
NET ASSETS .................................................. $ 23,168,418 100.0
------------ -----
------------ -----
</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.
+X+ The GT Global Variable Emerging Markets Fund (the "Fund") has
invested in the GT Global Taiwan Fund, a fund managed by LGT Asset
Management Ltd. who is an affiliate of the Fund's manager,
Chancellor LGT Asset Management, Inc.
* For Federal income tax purposes, cost is $22,583,405 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,566,101
Unrealized depreciation: (566,557)
-------------
Net unrealized appreciation: $ 999,544
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F36
<PAGE>
GT GLOBAL VARIABLE EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 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) .................. 1.0 1.0
Brazil (BRZL/BRL) .................... 16.1 16.1
Chile (CHLE/CLP) ..................... 4.0 4.0
China (CHNA/RMB) ..................... 1.0 1.0
Egypt (EGPT/EGP) ..................... 5.7 5.7
Greece (GREC/GRD) .................... 0.9 0.9
Hong Kong (HK/HKD) ................... 3.6 3.6
Hungary (HGRY/HUF) ................... 1.2 1.2
India (IND/INR) ...................... 3.1 3.1
Indonesia (INDO/IDR) ................. 4.8 4.8
Israel (ISRL/ILS) .................... 2.4 2.4
Korea (KOR/KRW) ...................... 4.1 4.1
Malaysia (MAL/MYR) ................... 10.6 10.6
Mexico (MEX/MXN) ..................... 6.6 6.6
Panama (PAN/PND) ..................... 1.0 1.0
Philippines (PHIL/PHP) ............... 2.5 2.5
Poland (POL/PLZ) ..................... 0.4 0.4
Portugal (PORT/PTE) .................. 1.0 1.0
Russia (RUS/SUR) ..................... 3.4 3.4
South Africa (SAFR/ZAR) .............. 12.3 12.3
Taiwan (TWN/TWD) ..................... 5.0 5.0
Thailand (THAI/THB) .................. 3.0 3.0
Turkey (TRKY/TRL) .................... 5.7 5.7
United States & Other (US/USD) ....... -- (1.8) (1.8)
Venezuela (VENZ/VEB) ................. 1.4 1.4
Zimbabwe (ZBBW/ZWD) .................. 1.0 1.0
------ ----- -----
Total ............................... 101.8 (1.8) 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $23,168,418.
The accompanying notes are an integral part of the financial statements.
F37
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Electrical & Gas Utilities (24.3%)
Light - Participacoes S.A.-/- ............................. BRZL 650,000 $ 259,033 3.0
Empresa Nacional de Electridad S.A. - ADR{\/} ............. SPN 2,800 238,175 2.7
Light - Servicos de Electricidade S.A. .................... BRZL 440,000 218,974 2.5
Enron Global Power & Pipelines L.L.C. ..................... US 6,200 206,538 2.4
AES Corp.-/- .............................................. US 2,900 205,175 2.3
Hub Power Co.-/- .......................................... PAK 166,000 167,973 1.9
Korea Electric Power Corp. - ADR{\/} ...................... KOR 8,300 155,106 1.8
EVN Energie-Versorgung Niederoesterreich AG ............... ASTRI 1,200 154,668 1.8
Edison S.p.A. ............................................. ITLY 31,000 153,443 1.8
BSES Ltd. 144A - GDR{.} {\/} .............................. IND 4,500 117,000 1.3
Companhia Energetica de Minas Gerais (Cemig) - ADR{\/} .... BRZL 1,600 81,408 0.9
MetroGas S.A. - ADR{\/} ................................... ARG 7,662 76,620 0.9
Capex S.A. ................................................ ARG 7,900 74,275 0.8
Chilgener S.A. - ADR-/- {\/} .............................. CHLE 700 19,600 0.2
------------
2,127,988
------------
Telephone Networks (9.7%)
Telefonica de Espana - ADR{\/} ............................ SPN 2,400 207,000 2.4
Hellenic Telecommunications Organization S.A. ............. GREC 7,500 176,095 2.0
Stet Societa' Finanziaria Telefonica S.p.A. - Di Risp ..... ITLY 40,000 138,307 1.6
SPT Telecom-/- ............................................ CZCH 1,300 136,521 1.6
Philippine Long Distance Telephone Co. - ADR{\/} .......... PHIL 2,000 128,500 1.5
Compania Anonima Nacional Telefonos de Venezuela (CANTV) -
ADR{\/} .................................................. VENZ 1,100 47,438 0.5
Pakistan Telecommunications Co., Ltd. - GDR-/- {\/} ....... PAK 100 7,400 0.1
------------
841,261
------------
Metals - Steel (7.7%)
Mannesmann AG ............................................. GER 470 209,338 2.4
Northwest Pipe Co.-/- ..................................... US 9,000 165,375 1.9
Shaw Group, Inc.-/- ....................................... US 9,800 159,250 1.8
Hylsamex, S.A. de C.V. 144A - ADR{.} {\/} ................. MEX 4,800 136,800 1.6
Grupo Simec, S.A. de C.V. - ADR-/- {\/} ................... MEX 500 1,813 --
------------
672,576
------------
Cement (5.9%)
Giant Cement Holding, Inc.-/- ............................. US 11,700 219,375 2.5
La Cementos Nacional, C.A. 144A - GDR{.} {\/} ............. ECDR 923 187,369 2.1
Suez Cement Co. - Reg S GDR-/- {c} {\/} ................... EGPT 4,100 82,820 0.9
Siam Cement Co., Ltd. - Foreign ........................... THAI 1,800 31,159 0.4
HI Cement Corp. ........................................... PHIL 15,000 2,846 --
------------
523,569
------------
Transportation - Road & Rail (5.7%)
Canadian National Railway Co. ............................. CAN 4,300 187,512 2.1
Tranz Rail Holdings Ltd. - ADR{\/} ........................ NZ 10,500 177,188 2.0
</TABLE>
The accompanying notes are an integral part of the financial statements.
F38
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Transportation - Road & Rail (Continued)
ABC Rail Products Corp.-/- ................................ US 8,000 $ 137,000 1.6
------------
501,700
------------
Telecom Technology (4.8%)
Ciena Corp.-/- ............................................ US 4,800 226,200 2.6
Tadiran Telecommunications Ltd.{\/} ....................... ISRL 8,900 191,906 2.2
------------
418,106
------------
Machinery & Engineering (4.1%)
Caterpillar, Inc. ......................................... US 2,100 225,488 2.6
KCI Konecranes International .............................. FIN 3,000 130,608 1.5
------------
356,096
------------
Multi-Industry (4.0%)
IES Industries, Inc. ...................................... US 6,000 177,000 2.0
E.R.G. Ltd. ............................................... AUSL 90,117 102,004 1.2
Asia Pacific Wire & Cable Corporation Ltd.-/- ............. US 4,600 50,025 0.6
PT Bakrie and Brothers .................................... INDO 40,000 17,688 0.2
------------
346,717
------------
Aerospace/Defense (2.6%)
Doncasters PLC - ADR-/- {\/} .............................. UK 9,700 224,313 2.6
------------
Metals - Non-Ferrous (2.2%)
RMI Titanium Co.-/- ....................................... US 7,000 190,750 2.2
------------
Construction (1.6%)
United Engineers Ltd. ..................................... MAL 20,000 144,244 1.6
------------
Electrical Plant/Equipment (1.5%)
Emcore Corp.-/- ........................................... US 8,000 134,500 1.5
------------
Wireless Communications (1.5%)
DDI Corp. ................................................. JPN 18 132,972 1.5
------------
Telephone - Long Distance (1.0%)
PT Indonesia Satellite (Indosat) - ADR{\/} ................ INDO 3,000 89,813 1.0
------------
Telephone - Regional/Local (0.8%)
CPT Telefonica Del Peru, S.A. - ADR{\/} ................... PERU 2,800 73,325 0.8
------------
Consumer Electronics (0.7%)
Three-Five Systems, Inc.-/- ............................... US 4,000 59,500 0.7
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F39
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Transportation - Shipping (0.1%)
International Container Terminal Services (ICTS)-/- ....... PHIL 13,537 $ 6,935 0.1
------------ -----
TOTAL EQUITY INVESTMENTS (cost $5,944,517) .................. 6,844,365 78.2
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Hellenic Telecommunication Organization S.A. Rights, expire
7/18/97 .................................................. GREC 7,500 921 --
TELEPHONE NETWORKS
Chilgener S.A. Rights, expire 7/7/97{\/} .................. CHLE 231 774 --
ELECTRICAL & GAS UTILITIES
------------ -----
TOTAL RIGHTS (cost $0) ...................................... 1,695 --
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $1,915,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $1,948,833,
including accrued interest). (cost $1,909,305) ........... 1,909,305 21.8
------------ -----
TOTAL INVESTMENTS (cost $7,853,822) * ...................... 8,755,365 100.0
Other Assets and Liabilities ................................ 3,311 --
------------ -----
NET ASSETS .................................................. $ 8,758,676 100.0
------------ -----
------------ -----
</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 $7,854,414 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 930,618
Unrealized depreciation: (29,667)
-------------
Net unrealized appreciation: $ 900,951
-------------
-------------
</TABLE>
Abbreviations:
ADR--American Depository Receipt
GDR--Global Depository Receipt
The accompanying notes are an integral part of the financial statements.
F40
<PAGE>
GT GLOBAL VARIABLE INFRASTRUCTURE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 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) .................. 1.7 1.7
Australia (AUSL/AUD) ................. 1.2 1.2
Austria (ASTRI/ATS) .................. 1.8 1.8
Brazil (BRZL/BRL) .................... 6.4 6.4
Canada (CAN/CAD) ..................... 2.1 2.1
Chile (CHLE/CLP) ..................... 0.2 0.2
Czech Republic (CZCH/CSK) ............ 1.6 1.6
Ecuador (ECDR/ECS) ................... 2.1 2.1
Egypt (EGPT/EGP) ..................... 0.9 0.9
Finland (FIN/FIM) .................... 1.5 1.5
Germany (GER/DEM) .................... 2.4 2.4
Greece (GREC/GRD) .................... 2.0 2.0
India (IND/INR) ...................... 1.3 1.3
Indonesia (INDO/IDR) ................. 1.2 1.2
Israel (ISRL/ILS) .................... 2.2 2.2
Italy (ITLY/ITL) ..................... 3.4 3.4
Japan (JPN/JPY) ...................... 1.5 1.5
Korea (KOR/KRW) ...................... 1.8 1.8
Malaysia (MAL/MYR) ................... 1.6 1.6
Mexico (MEX/MXN) ..................... 1.6 1.6
New Zealand (NZ/NZD) ................. 2.0 2.0
Pakistan (PAK/PKR) ................... 2.0 2.0
Peru (PERU/PES) ...................... 0.8 0.8
Philippines (PHIL/PHP) ............... 1.6 1.6
Spain (SPN/ESP) ...................... 5.1 5.1
Thailand (THAI/THB) .................. 0.4 0.4
United Kingdom (UK/GBP) .............. 2.6 2.6
United States & Other (US/USD) ....... 24.7 21.8 46.5
Venezuela (VENZ/VEB) ................. 0.5 0.5
------ ----- -----
Total ............................... 78.2 21.8 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $8,758,676.
The accompanying notes are an integral part of the financial statements.
F41
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Oil (27.8%)
Patterson Energy, Inc.-/- ................................. US 12,700 $ 576,263 3.9
Total S.A. "B" ............................................ FR 5,000 505,085 3.4
Giant Industries, Inc. .................................... US 31,400 496,513 3.3
Beta Well Service, Inc. ................................... US 121,600 471,200 3.2
Schlumberger Ltd. ......................................... US 3,500 437,500 2.9
Ente Nazionale Idrocarburi (ENI) S.p.A. ................... ITLY 71,300 402,468 2.7
British Petroleum Co., PLC - ADR{\/} ...................... UK 4,900 366,888 2.5
Canadian Occidental Petroleum Ltd. ........................ CAN 12,400 278,450 1.9
Gulfstream Resources Canada Ltd.-/- ....................... CAN 34,400 276,595 1.9
Edge Petroleum Corp.-/- ................................... US 9,600 139,800 0.9
Santa Fe International Corp.-/- ........................... US 3,900 132,600 0.9
Jerez Energy International, Inc.-/- ....................... CAN 64,700 42,180 0.3
------------
4,125,542
------------
Energy Equipment & Services (16.4%)
Cooper Cameron Corp.-/- ................................... US 13,200 617,097 4.2
EVI, Inc. ................................................. US 12,700 533,400 3.6
Global Industries Ltd.-/- ................................. US 16,600 387,766 2.6
Key Energy Group, Inc.-/- ................................. US 17,000 302,813 2.0
Varco International, Inc.-/- .............................. US 7,300 235,425 1.6
BJ Services Co.-/- ........................................ US 3,500 187,688 1.3
Sutton Resources Ltd.-/- .................................. CAN 20,200 164,614 1.1
------------
2,428,803
------------
Forest Products (7.8%)
Pacific Forest Products Ltd.-/- ........................... CAN 27,300 499,330 3.4
Abitibi-Price, Inc. ....................................... CAN 26,100 466,038 3.1
St Laurent Paperboard, Inc.-/- ............................ CAN 12,000 186,889 1.3
------------
1,152,257
------------
Machinery & Engineering (5.4%)
Dreco Energy Services Ltd. "A" ............................ CAN 9,700 506,255 3.4
Smith International, Inc. ................................. US 4,800 291,600 2.0
------------
797,855
------------
Electrical & Gas Utilities (5.1%)
Black Sea Energy Ltd. ..................................... CAN 157,800 445,795 3.0
Precision Drilling Corp. .................................. US 6,400 309,600 2.1
------------
755,395
------------
Miscellaneous (4.8%)
Orogen Minerals Ltd.: ..................................... AUSL -- -- 4.8
144A ADR{.} {\/} ........................................ -- 15,600 429,000 --
Common .................................................. -- 100,000 285,995 --
------------
714,995
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F42
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Chemicals (4.3%)
Crompton & Knowles Corp. .................................. US 15,700 $ 349,325 2.3
W.R. Grace & Co. .......................................... US 5,500 303,188 2.0
------------
652,513
------------
Pharmaceuticals (3.3%)
Ciba Specialty Chemicals AG-/- ............................ SWTZ 5,340 493,260 3.3
------------
Gas Production & Distribution (3.2%)
Comstock Resources, Inc.-/- ............................... US 28,900 301,644 2.0
Hanover Compressor Co.-/- ................................. US 5,500 107,250 0.7
Berkley Petroleum Corp. ................................... CAN 8,400 79,102 0.5
------------
487,996
------------
Coal (3.1%)
Valero Energy Corp. ....................................... US 9,700 351,625 2.4
Australian Coal and Gold Holdings Ltd.-/- ................. AUSL 260,000 102,022 0.7
------------
453,647
------------
Misc. Materials & Commodities (3.0%)
Repadre Capital Corp.-/- .................................. CAN 31,500 183,683 1.2
Aber Resources Ltd.-/- .................................... CAN 10,000 139,804 0.9
Farallon Resources Ltd.-/- ................................ CAN 19,800 126,932 0.9
------------
450,419
------------
Metals - Steel (2.5%)
The Carbide/Graphite Group, Inc.-/- ....................... US 9,600 223,200 1.5
IPSCO, Inc. ............................................... CAN 4,900 142,865 1.0
------------
366,065
------------
Electrical Plant/Equipment (2.3%)
UCAR International, Inc.-/- ............................... US 7,600 347,700 2.3
------------
Conglomerate (2.3%)
Brascan Ltd. "A" .......................................... CAN 14,000 346,324 2.3
------------
Metals - Non-Ferrous (1.8%)
Savage Resources Ltd. ..................................... AUSL 303,300 274,645 1.8
------------
Consumer Services (1.5%)
Maverick Tube Corp. ....................................... US 5,500 206,250 1.4
American Disposal Services, Inc.-/- ....................... US 500 11,250 0.1
------------
217,500
------------
Personal Care/Cosmetics (1.4%)
Fort Howard Corp. ......................................... US 4,100 207,563 1.4
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F43
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Construction (1.0%)
Halter Marine Group, Inc. ................................. US 6,300 $ 151,200 1.0
------------
Gold (1.0%)
Queenstake Resources Ltd.-/- .............................. CAN 58,900 86,611 0.6
Yamana Resources, Inc.-/- ................................. CAN 13,700 23,619 0.2
Oryx Gold Holdings Ltd.-/- ................................ SAFR 18,740 19,007 0.1
Asquith Resources, Inc.-/- ................................ CAN 35,900 15,603 0.1
------------
144,840
------------
Energy Sources (0.9%)
Swift Energy Co. .......................................... US 5,600 133,700 0.9
------------
Building Materials & Components (0.9%)
International Uranium Corp. ............................... CAN 139,700 131,554 0.9
------------
Transportation - Shipping (0.5%)
Hvide Marine, Inc. "A"-/- ................................. US 3,600 79,650 0.5
------------ -----
TOTAL EQUITY INVESTMENTS (cost $13,927,588) ................. 14,913,423 100.3
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Yamana Resources, Inc. Warrants, expire 12/31/98 (cost
$5,491) .................................................. CAN 6,850 2,481 --
------------ -----
GOLD
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $70,000 U.S. Treasury Bills, 6.125% due
3/31/98 (market value of collateral is $71,237 including
accrued interest). (cost $66,011) ....................... 66,011 0.5
------------ -----
TOTAL INVESTMENTS (cost $13,999,090) * ..................... 14,981,915 100.8
Other Assets and Liabilities ................................ (117,194) (0.8)
------------ -----
NET ASSETS .................................................. $ 14,864,721 100.0
------------ -----
------------ -----
</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.
* For Federal income tax purposes, cost is $14,045,395 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 1,583,738
Unrealized depreciation: (647,218)
-------------
Net unrealized appreciation: $ 936,520
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F44
<PAGE>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 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) ................. 7.3 7.3
Canada (CAN/CAD) ..................... 28.0 28.0
France (FR/FRF) ...................... 3.4 3.4
Italy (ITLY/ITL) ..................... 2.7 2.7
South Africa (SAFR/ZAR) .............. 0.1 0.1
Switzerland (SWTZ/CHF) ............... 3.3 3.3
United Kingdom (UK/GBP) .............. 2.5 2.5
United States & Other (US/USD) ....... 53.0 (0.3) 52.7
------ ----- -----
Total ............................... 100.3 (0.3) 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $14,864,721.
The accompanying notes are an integral part of the financial statements.
F45
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Services (34.7%)
HFS, Inc.-/- ....................................................... 29,800 $ 1,728,392 4.3
LEISURE & TOURISM
Signature Resorts, Inc.-/- ......................................... 34,000 1,175,125 2.9
LEISURE & TOURISM
Consolidated Stores Corp.-/- ....................................... 32,250 1,120,688 2.8
RETAILERS-OTHER
Hilton Hotels Corp. ................................................ 40,700 1,081,094 2.7
LEISURE & TOURISM
Paychex, Inc. ...................................................... 27,900 1,060,200 2.6
CONSUMER SERVICES
Snyder Communications, Inc.-/- ..................................... 36,000 969,750 2.4
CONSUMER SERVICES
Outdoor Systems, Inc.-/- ........................................... 25,050 958,163 2.4
BUSINESS & PUBLIC SERVICES
Corporate Express, Inc.-/- ......................................... 60,450 872,747 2.2
RETAILERS-OTHER
Mirage Resorts, Inc.-/- ............................................ 32,800 828,200 2.0
LEISURE & TOURISM
LCI International, Inc.-/- ......................................... 34,700 759,063 1.9
TELEPHONE NETWORKS
Service Corporation International .................................. 20,900 687,088 1.7
CONSUMER SERVICES
Tele-Communications Liberty Media Group, Inc. "A"-/- ............... 27,000 641,250 1.6
CABLE TELEVISION
CDW Computer Centers, Inc.-/- ...................................... 10,700 567,769 1.4
RETAILERS-OTHER
Universal Outdoor Holdings, Inc.-/- ................................ 15,500 540,563 1.3
BUSINESS & PUBLIC SERVICES
Tiffany & Co. ...................................................... 10,200 471,113 1.2
RETAILERS-OTHER
MGM Grand, Inc.-/- ................................................. 11,000 407,000 1.0
LEISURE & TOURISM
Primadonna Resorts, Inc.-/- ........................................ 7,500 144,844 0.3
LEISURE & TOURISM
------------
14,013,049
------------
Technology (14.6%)
Altera Corp.-/- .................................................... 16,600 838,300 2.1
COMPUTERS & PERIPHERALS
Peoplesoft Inc.-/- ................................................. 15,000 791,250 2.0
SOFTWARE
Cascade Communications Corp.-/- .................................... 28,500 787,313 1.9
NETWORKING
National Semiconductor Corp.-/- .................................... 23,700 725,813 1.8
SEMICONDUCTORS
Advanced Fibre Communications-/- ................................... 11,800 712,425 1.8
TELECOM TECHNOLOGY
KLA-Trencor Corp.-/- ............................................... 14,200 692,250 1.7
INSTRUMENTATION & TEST
</TABLE>
The accompanying notes are an integral part of the financial statements.
F46
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Technology (Continued)
Adaptec, Inc.-/- ................................................... 19,600 $ 681,100 1.7
SEMICONDUCTORS
Pegasystems, Inc.-/- ............................................... 11,000 345,125 0.8
SOFTWARE
Rational Software Corp.-/- ......................................... 17,100 287,494 0.7
SOFTWARE
Qwest Communications International, Inc.-/- ........................ 1,700 46,325 0.1
TELECOM TECHNOLOGY
------------
5,907,395
------------
Finance (13.2%)
GreenPoint Financial Corp. ......................................... 25,600 1,704,000 4.2
BANKS-REGIONAL
Student Loan Marketing Association ................................. 8,500 1,079,500 2.7
OTHER FINANCIAL
Progressive Corp. .................................................. 9,500 826,500 2.0
INSURANCE - MULTI-LINE
Conseco, Inc. ...................................................... 21,400 791,800 2.0
INSURANCE - MULTI-LINE
Starwood Lodging Trust ............................................. 11,000 469,563 1.2
REAL ESTATE INVESTMENT TRUST
Felcor Suite Hotels, Inc. .......................................... 11,500 428,375 1.1
REAL ESTATE INVESTMENT TRUST
------------
5,299,738
------------
Health Care (11.1%)
Quintiles Transnational Corp.-/- ................................... 18,500 1,288,063 3.2
HEALTH CARE SERVICES
HBO & Co. .......................................................... 17,100 1,177,763 2.9
HEALTH CARE SERVICES
Guidant Corp. ...................................................... 9,800 833,000 2.1
MEDICAL TECHNOLOGY & SUPPLIES
Covance, Inc.-/- ................................................... 31,000 598,688 1.5
HEALTH CARE SERVICES
Sofamor Danek Group, Inc.-/- ....................................... 12,300 562,725 1.4
MEDICAL TECHNOLOGY & SUPPLIES
------------
4,460,239
------------
Consumer Non-Durables (8.0%)
Estee Lauder Cos. "A" .............................................. 19,680 974,160 2.4
PERSONAL CARE/COSMETICS
Liz Claiborne, Inc. ................................................ 17,600 820,600 2.0
TEXTILES & APPAREL
Avon Products, Inc. ................................................ 10,500 740,906 1.8
PERSONAL CARE/COSMETICS
Einstein/Noah Bagel Corp.-/- ....................................... 43,700 521,669 1.3
FOOD
</TABLE>
The accompanying notes are an integral part of the financial statements.
F47
<PAGE>
GT GLOBAL VARIABLE AMERICA FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS SHARES (NOTE 1) ASSETS
- ---------------------------------------------------------------------- ----------- ------------ -------------
<S> <C> <C> <C>
Consumer Non-Durables (Continued)
Wrigley (WM) Jr. Company ........................................... 3,000 $ 201,000 0.5
FOOD
------------
3,258,335
------------
Capital Goods (6.6%)
Gulfstream Aerospace Corp.-/- ...................................... 36,400 1,073,800 2.7
AEROSPACE/DEFENSE
U.S. Office Products Co.-/- ........................................ 30,300 926,044 2.3
OFFICE EQUIPMENT
Sundstrand Corp. ................................................... 11,900 664,169 1.6
ELECTRICAL PLANT/EQUIPMENT
------------
2,664,013
------------
Consumer Durables (6.4%)
Hertz Corp. "A"-/- ................................................. 33,600 1,209,600 3.0
AUTOMOBILES
Sunbeam-Oster Co., Inc. ............................................ 20,000 755,000 1.9
APPLIANCES & HOUSEHOLD
Tower Automotive, Inc.-/- .......................................... 13,900 597,700 1.5
AUTO PARTS
------------
2,562,300
------------
Materials/Basic Industry (4.2%)
Crompton & Knowles Corp. ........................................... 39,600 881,100 2.2
CHEMICALS
International Specialty Products, Inc.-/- .......................... 58,000 815,625 2.0
CHEMICALS
------------
1,696,725
------------
Energy (1.2%)
Santa Fe International Corp.-/- .................................... 14,900 506,600 1.2
OIL
------------ -----
TOTAL EQUITY INVESTMENTS (cost $38,959,708) .......................... 40,368,394 100.0
------------ -----
TOTAL INVESTMENTS (cost $38,959,708) * .............................. 40,368,394 100.0
Other Assets and Liabilities ......................................... (8,063) --
------------ -----
NET ASSETS ........................................................... $ 40,360,331 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
* For Federal income tax purposes, cost is $39,139,974 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 3,122,733
Unrealized depreciation: (1,894,313)
-------------
Net unrealized appreciation: $ 1,228,420
-------------
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F48
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (48.0%)
Cheung Kong (Holdings) Ltd. ............................... HK 160,000 $ 1,580,010 5.3
REAL ESTATE
Henderson Land Development Co., Ltd. ...................... HK 175,000 1,553,061 5.2
REAL ESTATE
HSBC Holdings PLC ......................................... HK 50,000 1,503,847 5.0
BANKS-MONEY CENTER
New World Development Co., Ltd. ........................... HK 246,000 1,467,083 4.9
REAL ESTATE
Australia & New Zealand Banking Group Ltd. ................ AUSL 184,200 1,376,079 4.6
BANKS-REGIONAL
Hysan Development Co., Ltd. ............................... HK 250,000 737,401 2.5
REAL ESTATE
China Resources Enterprise Ltd. ........................... HK 148,000 725,977 2.4
REAL ESTATE INVESTMENT TRUST
PT Lippo Life Insurance - Foreign ......................... INDO 600,000 709,585 2.4
INSURANCE-LIFE
Metropolitan Bank & Trust Co. ............................. PHIL 31,883 677,589 2.3
BANKS-REGIONAL
Rashid Hussain Bhd. ....................................... MAL 100,000 634,040 2.1
SECURITIES BROKER
Keppel Land Ltd. .......................................... SING 220,000 584,943 2.0
REAL ESTATE
Ayala Land, Inc. "B" ...................................... PHIL 585,937 539,240 1.8
REAL ESTATE
United Overseas Bank Ltd. - Foreign ....................... SING 46,000 473,132 1.6
BANKS-MONEY CENTER
Wharf (Holdings) Ltd. ..................................... HK 100,000 433,727 1.5
REAL ESTATE
Wheelock & Co., Ltd. ...................................... HK 150,000 368,862 1.2
REAL ESTATE
RHB Capital Bhd. .......................................... MAL 75,000 237,765 0.8
BANKS-REGIONAL
Bank of East Asia Ltd. .................................... HK 54,951 229,116 0.8
BANKS-MONEY CENTER
Hang Seng Bank ............................................ HK 16,030 228,651 0.8
BANKS-MONEY CENTER
DBS Land Ltd. ............................................. SING 53,000 167,618 0.6
REAL ESTATE
Megaworld Properties & Holdings, Inc.-/- .................. PHIL 433,000 50,941 0.2
REAL ESTATE
------------
14,278,667
------------
Services (14.3%)
Woolworths Ltd. ........................................... AUSL 356,700 1,170,876 3.9
RETAILERS-OTHER
Brambles Industries Ltd. .................................. AUSL 53,000 1,047,482 3.5
BUSINESS & PUBLIC SERVICES
Hong Kong Telecommunications Ltd. ......................... HK 332,000 792,843 2.7
TELEPHONE NETWORKS
</TABLE>
The accompanying notes are an integral part of the financial statements.
F49
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (Continued)
Guangnan Holdings ......................................... HK 500,000 $ 780,968 2.6
WHOLESALE & INTERNATIONAL TRADE
Singapore Press Holdings Ltd. - Foreign ................... SING 24,000 483,627 1.6
BROADCASTING & PUBLISHING
------------
4,275,796
------------
Materials/Basic Industry (13.5%)
Leighton Holdings Ltd. .................................... AUSL 215,000 1,046,608 3.5
BUILDING MATERIALS & COMPONENTS
Broken Hill Proprietary Co., Ltd. ......................... AUSL 67,100 986,500 3.3
MISC. MATERIALS & COMMODITIES
Cosco Pacific Ltd. ........................................ HK 250,000 579,271 1.9
PAPER/PACKAGING
PT Semen Gresik - Foreign ................................. INDO 214,000 479,761 1.6
CEMENT
NatSteel Ltd. ............................................. SING 188,000 478,813 1.6
METALS - STEEL
RGC Ltd. .................................................. AUSL 129,400 473,581 1.6
MISC. MATERIALS & COMMODITIES
------------
4,044,534
------------
Multi-Industry/Miscellaneous (7.5%)
Hutchison Whampoa ......................................... HK 175,000 1,513,528 5.1
MULTI-INDUSTRY
Citic Pacific Ltd. ........................................ HK 105,000 656,013 2.2
CONGLOMERATE
Beijing Enterprises Holdings Ltd.-/- ...................... HK 10,000 62,994 0.2
MULTI-INDUSTRY
Korea Fund, Inc.{\/} ...................................... KOR 43 634 --
COUNTRY FUNDS
------------
2,233,169
------------
Capital Goods (5.5%)
United Engineers Ltd.: .................................... MAL -- -- 3.6
CONSTRUCTION
Common .................................................. -- 150,300 1,083,994 --
Convertible Unsecured Loan Stock, 4% expires 5/22/99 .... -- 21,000 13,897 --
PWE Industries Bhd. ....................................... MAL 42,000 570,042 1.9
ELECTRICAL PLANT/EQUIPMENT
------------
1,667,933
------------
Consumer Durables (4.4%)
Gadek (Malaysia) Bhd. ..................................... MAL 100,000 554,785 1.9
AUTOMOBILES
Cycle & Carriage Ltd. ..................................... SING 50,000 517,772 1.7
AUTOMOBILES
</TABLE>
The accompanying notes are an integral part of the financial statements.
F50
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Consumer Durables (Continued)
Samsung Electronics Co.: .................................. KOR -- -- 0.8
CONSUMER ELECTRONICS
Common .................................................. -- 1,307 $ 144,559 --
GDR 1/2 Non-voting-/- {\/} .............................. -- 2,527 68,229 --
144A GDR{.} -/- {\/} .................................... -- 379 22,172 --
------------
1,307,517
------------
Energy (3.5%)
Santos Ltd.: .............................................. AUSL -- -- 2.2
OIL
Common .................................................. -- 150,900 634,254 --
New ..................................................... -- 5,250 22,066 --
Belle Corp.-/- ............................................ PHIL 1,300,000 379,886 1.3
OIL
------------
1,036,206
------------ -----
TOTAL EQUITY INVESTMENTS (cost $24,223,896) ................. 28,843,822 96.7
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Gadek (Malaysia) Bhd. Warrants, expire 12/19/00 ........... MAL 150,000 315,039 1.1
AUTOMOBILES
Guangnan Holdings Ltd. Warrants, expire 8/31/98 ........... HK 361,428 214,614 0.7
WHOLESALE & INTERNATIONAL TRADE
RHB Capital Warrants, expire 12/29/99 ..................... MAL 37,500 41,757 0.1
BANKS-REGIONAL
Waterfront Philippines, Inc. Warrants, expire 5/3/99 ...... PHIL 477,000 18,102 0.1
LEISURE & TOURISM
------------ -----
TOTAL WARRANTS (cost $239,526) .............................. 589,512 2.0
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
RIGHTS COUNTRY RIGHTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Rashid Hussain Bhd. Rights for Warrants, expire 8/5/97
(cost $0) ................................................ MAL 14,285 -- --
------------ -----
SECURITIES BROKER
</TABLE>
The accompanying notes are an integral part of the financial statements.
F51
<PAGE>
GT GLOBAL VARIABLE NEW PACIFIC FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $1,650,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $1,679,151,
including accrued interest). (cost $1,642,262). ......... $ 1,642,262 5.5
------------ -----
TOTAL INVESTMENTS (cost $26,105,684) * ..................... 31,075,596 104.2
Other Assets and Liabilities ................................ (1,244,497) (4.2)
------------ -----
NET ASSETS .................................................. $ 29,831,099 100.0
------------ -----
------------ -----
</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.
* For Federal income tax purposes, cost is $26,258,669 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 5,641,150
Unrealized depreciation: (824,223)
-------------
Net unrealized appreciation: $ 4,816,927
-------------
-------------
</TABLE>
Abbreviation:
GDR--Global Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Australia (AUSL/AUD) ................. 22.6 22.6
Hong Kong (HK/HKD) ................... 44.3 0.7 45.0
Indonesia (INDO/IDR) ................. 4.0 4.0
Korea (KOR/KRW) ...................... 0.8 0.8
Malaysia (MAL/MYR) ................... 10.3 1.2 11.5
Philippines (PHIL/PHP) ............... 5.6 0.1 5.7
Singapore (SING/SGD) ................. 9.1 9.1
United States & Other (US/USD) ....... 1.3 1.3
------ ----- ----- -----
Total ............................... 96.7 2.0 1.3 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $29,831,099.
The accompanying notes are an integral part of the financial statements.
F52
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (25.9%)
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 10,107 $ 838,422 2.9
WIRELESS COMMUNICATIONS
Koninklijke Ahold N.V. .................................... NETH 9,392 791,912 2.8
RETAILERS-FOOD
Stet Societa' Finanziaria Telefonica S.p.A. ............... ITLY 123,900 720,633 2.5
TELEPHONE NETWORKS
Adecco S.A.{V} ............................................ SWTZ 1,759 674,859 2.3
CONSUMER SERVICES
Kuoni Reisen Holdings "B" - Registered .................... SWTZ 190 650,017 2.3
LEISURE & TOURISM
Sol Melia S.A. ............................................ SPN 14,000 574,627 2.0
LEISURE & TOURISM
Ceteco Holding N.V. ....................................... NETH 10,757 528,539 1.8
RETAILERS-OTHER
M6 - Metropole Television ................................. FR 5,300 504,745 1.8
BROADCASTING & PUBLISHING
Vendex International N.V. ................................. NETH 8,569 469,026 1.6
RETAILERS-OTHER
Eurobike AG ............................................... GER 16,300 453,167 1.6
RETAILERS-OTHER
EMAP PLC .................................................. UK 36,200 448,205 1.6
BROADCASTING & PUBLISHING
Castorama Dubois Investisse ............................... FR 3,100 435,989 1.5
RETAILERS-OTHER
Reuters Holdings PLC ...................................... UK 25,300 266,693 0.9
BROADCASTING & PUBLISHING
Apcoa Parking AG .......................................... GER 712 68,159 0.2
CONSUMER SERVICES
Seat SpA-/- ............................................... ITLY 123,900 39,580 0.1
BROADCASTING & PUBLISHING
------------
7,464,573
------------
Technology (16.7%)
Dr. Solomon's Group PLC - ADR-/- {\/} ..................... UK 41,600 1,055,595 3.7
SOFTWARE
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 5,800 725,962 2.5
TELECOM TECHNOLOGY
IONA Technologies PLC - ADR-/- {\/} ....................... IRE 31,100 614,225 2.1
SOFTWARE
Group Axime-/- ............................................ FR 4,440 524,778 1.8
COMPUTERS & PERIPHERALS
TT Tieto Oy "B" ........................................... FIN 5,892 510,759 1.8
COMPUTERS & PERIPHERALS
Baan Company N.V.-/- {\/} ................................. NETH 7,300 502,788 1.7
SOFTWARE
Misys PLC ................................................. UK 20,000 453,789 1.6
SOFTWARE
Dassault Systemes S.A. .................................... FR 6,235 442,161 1.5
SOFTWARE
------------
4,830,057
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F53
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (13.2%)
Safra Republic Holdings S.A.{\/} .......................... LUX 6,800 $ 775,200 2.7
OTHER FINANCIAL
Sparbanken Sverige AB "A" ................................. SWDN 29,711 660,500 2.3
BANKS-REGIONAL
ING Groep N.V. ............................................ NETH 13,700 631,288 2.2
OTHER FINANCIAL
Unidanmark AS "A" ......................................... DEN 9,100 511,067 1.8
BANKS-REGIONAL
Svenska Handelsbanken, Inc. "A" Free ...................... SWDN 14,900 473,750 1.6
BANKS-MONEY CENTER
Lloyds TSB Group PLC ...................................... UK 40,560 416,069 1.4
BANKS-REGIONAL
M & G Group PLC ........................................... UK 17,000 348,210 1.2
INVESTMENT MANAGEMENT
------------
3,816,084
------------
Health Care (10.1%)
Schering AG ............................................... GER 5,760 615,291 2.1
PHARMACEUTICALS
Novo Nordisk A/S "B" ...................................... DEN 5,200 566,851 2.0
PHARMACEUTICALS
Glaxo Wellcome PLC ........................................ UK 19,800 408,859 1.4
PHARMACEUTICALS
Biotest AG: ............................................... GER -- -- 1.4
BIOTECHNOLOGY
Common .................................................. -- 7,900 324,695 --
New-/- .................................................. -- 1,975 77,211 --
OY Tamro AB ............................................... FIN 56,280 390,299 1.4
PHARMACEUTICALS
Genset: ................................................... FR -- -- 1.1
BIOTECHNOLOGY
ADR-/- {\/} ............................................. -- 14,204 275,203 --
Common-/- ............................................... -- 700 39,892 --
Nearmedic Ltd.-/- ......................................... ASTRI 1,422 212,282 0.7
PHARMACEUTICALS
------------
2,910,583
------------
Capital Goods (9.1%)
Cardo "AB" ................................................ SWDN 27,460 812,762 2.8
MACHINERY & ENGINEERING
SGL Carbon AG ............................................. GER 4,100 561,238 2.0
INDUSTRIAL COMPONENTS
The Rauma Group ........................................... FIN 24,300 557,050 1.9
MACHINERY & ENGINEERING
Altran Technologies S.A. .................................. FR 1,083 353,621 1.2
MACHINERY & ENGINEERING
Pricer AB-/- .............................................. SWDN 9,811 337,305 1.2
INDUSTRIAL COMPONENTS
------------
2,621,976
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F54
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (7.7%)
Total S.A. "B" ............................................ FR 10,000 $ 1,010,170 3.5
OIL
Ente Nazionale Idrocarburi (ENI) S.p.A. ................... ITLY 145,900 823,564 2.9
OIL
Petroleum Geo-Services ASA-/- ............................. NOR 7,730 372,284 1.3
ENERGY EQUIPMENT & SERVICES
------------
2,206,018
------------
Consumer Non-Durables (6.0%)
Gucci Group - NY Registered Shares{\/} .................... ITLY 10,800 695,250 2.4
TEXTILES & APPAREL
Cadbury Schweppes PLC ..................................... UK 63,500 566,266 2.0
BEVERAGES - NON-ALCOHOLIC
Polygram .................................................. NETH 8,800 461,507 1.6
RECREATION
------------
1,723,023
------------
Multi-Industry/Miscellaneous (4.3%)
Incentive AB "A" .......................................... SWDN 7,100 642,368 2.2
CONGLOMERATE
Oerlikon - Buehrle Holding AG ............................. SWTZ 5,150 602,566 2.1
MULTI-INDUSTRY
------------
1,244,934
------------
Materials/Basic Industry (3.5%)
Akzo Nobel N.V. ........................................... NETH 5,600 767,006 2.7
CHEMICALS
Saes Getters - di Risp .................................... ITLY 23,680 229,998 0.8
CHEMICALS
------------
997,004
------------
Consumer Durables (3.4%)
Valeo S.A. ................................................ FR 9,600 595,898 2.1
AUTO PARTS
Beers N.V. ................................................ NETH 10,500 360,871 1.3
AUTOMOBILES
------------
956,769
------------ -----
TOTAL EQUITY INVESTMENTS (cost $23,340,699) ................. 28,771,021 99.9
------------ -----
<CAPTION>
NO. OF VALUE % OF NET
WARRANTS COUNTRY WARRANTS (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Astra "A" Call Warrants, expire 10/21/98 .................. SWDN 34,500 439,221 1.5
PHARMACEUTICALS
Union Bank of Switzerland Roche Warrants "C", expire
7/98 ..................................................... SWTZ 41,500 244,201 0.9
PHARMACEUTICALS
------------ -----
TOTAL WARRANTS (cost $574,505) .............................. 683,422 2.4
------------ -----
</TABLE>
The accompanying notes are an integral part of the financial statements.
F55
<PAGE>
GT GLOBAL VARIABLE EUROPE FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $345,000 U.S. Treasury Bills, 6.125% due
3/31/98 (market value of collateral is $351,096, including
accrued interest). (cost $343,055) ...................... $ 343,055 1.2
------------ -----
TOTAL INVESTMENTS (cost $24,258,259) * ..................... 29,797,498 103.5
Other Assets and Liabilities ................................ (1,016,165) (3.5)
------------ -----
NET ASSETS .................................................. $ 28,781,333 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
{V} Security is denominated in French Francs.
* For Federal income tax purposes, cost is $24,350,886 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 5,796,846
Unrealized depreciation: (350,234)
-------------
Net unrealized appreciation: $ 5,446,612
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 1997, was concentrated in the
following countries:
<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS {D}
-------------------------------------------
FIXED INCOME,
RIGHTS & SHORT-TERM
COUNTRY (COUNTRY CODE/CURRENCY CODE) EQUITY WARRANTS & OTHER TOTAL
- -------------------------------------- ------ ------------- ---------- -----
<S> <C> <C> <C> <C>
Austria (ASTRI/ATS) .................. 0.7 0.7
Denmark (DEN/DKK) .................... 3.8 3.8
Finland (FIN/FIM) .................... 5.1 5.1
France (FR/FRF) ...................... 17.0 17.0
Germany (GER/DEM) .................... 7.3 7.3
Ireland (IRE/IEP) .................... 2.1 2.1
Italy (ITLY/ITL) ..................... 8.7 8.7
Luxembourg (LUX/LUF) ................. 2.7 2.7
Netherlands (NETH/NLG) ............... 15.7 15.7
Norway (NOR/NOK) ..................... 1.3 1.3
Portugal (PORT/PTE) .................. 2.9 2.9
Spain (SPN/ESP) ...................... 2.0 2.0
Sweden (SWDN/SEK) .................... 10.1 1.5 11.6
Switzerland (SWTZ/CHF) ............... 6.7 0.9 7.6
United Kingdom (UK/GBP) .............. 13.8 13.8
United States & Other (US/USD) ....... -- (2.3) (2.3)
------ ----- ----- -----
Total ............................... 99.9 2.4 (2.3) 100.0
------ ----- ----- -----
------ ----- ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $28,781,333.
The accompanying notes are an integral part of the financial statements.
F56
<PAGE>
GT GLOBAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PRINCIPAL VALUE % OF NET
SHORT-TERM INVESTMENTS YIELD DATE AMOUNT (NOTE 1) ASSETS
- ----------------------------------------------------------------- --------- --------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Government & Government Agency Obligations (23.3%)
Federal National Mortgage Association ......................... 5.70% 10-Sep-97 1,320,000 1,305,526 6.4
Federal Home Loan Mortgage Corp. .............................. 5.46% 03-Jul-97 1,300,000 1,299,606 6.3
Federal Home Loan Bank ........................................ 5.58% 26-Dec-97 1,000,000 973,152 4.8
Federal Farm Credit Bank ...................................... 5.60% 03-Nov-97 750,000 735,755 3.6
Kingdom of Sweden ............................................. 5.45% 29-Jul-97 452,000 $ 450,133 2.2
------------ -----
Total Government & Government Agency Obligations
(amortized cost $4,764,172) .................................... 4,764,172 23.3
------------ -----
Commercial Paper - Discounted (19.7%)
Ford Motor Credit Corp. ....................................... 5.57% 18-Aug-97 1,000,000 992,747 4.9
General Electric Capital Corp. ................................ 5.69% 12-Sep-97 1,000,000 988,766 4.8
Pitney Bowes Credit Corp. ..................................... 5.41% 21-Jul-97 750,000 747,792 3.7
E.I. DuPont de Nemours & Co. .................................. 5.36% 18-Aug-97 700,000 695,128 3.4
Walt Disney Co. ............................................... 5.45% 25-Jul-97 600,000 597,876 2.9
------------ -----
Total Commercial Paper - Discounted (amortized cost
$4,022,309) .................................................... 4,022,309 19.7
------------ -----
Medium-Term Notes (4.1%)
Morgan Stanley Group, Inc.+ ................................... 5.67% 26-Aug-97 600,000 600,000 2.9
Bear Stearns Cos., Inc.+ ...................................... 5.79% 14-Nov-97 250,000 250,000 1.2
------------ -----
Total Medium-Term Notes (amortized cost $850,000) ............... 850,000 4.1
------------ -----
TOTAL SHORT-TERM INVESTMENTS (cost $9,636,481) .................. 9,636,481 47.1
------------ -----
<CAPTION>
REPURCHASE AGREEMENTS
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co., due
July 1, 1997, for an effective yield of 5.75%, collateralized
by $3,605,000 U.S. Treasury Bills, 6.125% due 3/31/98 (market
value of collateral is $3,668,691, including accrued
interest). (cost $3,592,574) ................................ 3,592,574 17.5
Dated June 30, 1997, with Bank of America NT&SA, due July 1,
1997, for an effective yield of 5.75%, collateralized by
$2,920,000 U.S. Treasury Notes, 10.34% due 5/15/03 (market
value of collateral is $3,568,654, including accrued
interest). (cost $3,500,559) ................................ 3,500,559 17.1
------------ -----
TOTAL REPURCHASE AGREEMENTS (cost $7,093,133) ................... 7,093,133 34.6
------------ -----
TOTAL INVESTMENTS (cost $16,729,614) * ......................... 16,729,614 81.7
Other Assets and Liabilities .................................... 3,737,334 18.3
------------ -----
NET ASSETS ...................................................... $ 20,466,948 100.0
------------ -----
------------ -----
</TABLE>
- --------------
+ The coupon rate shown on floating rate note represents the rate at
period end.
* For Federal income tax purposes, cost is $16,729,614
The accompanying notes are an integral part of the financial statements.
F57
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Services (26.1%)
EMI Group PLC ............................................. UK 6,000 $ 107,660 1.8
LEISURE & TOURISM
DDI Corp. ................................................. JPN 14 103,423 1.7
WIRELESS COMMUNICATIONS
Adecco - Bearer ........................................... SWTZ 265 101,540 1.7
CONSUMER SERVICES
Telecom Corporation of New Zealand Ltd. ................... NZ 19,000 96,787 1.6
TELEPHONE NETWORKS
Koninklijke Ahold N.V. .................................... NETH 1,110 93,593 1.5
RETAILERS-FOOD
Amway Japan Ltd. .......................................... JPN 2,600 88,089 1.5
RETAILERS-OTHER
Woolworths Ltd. ........................................... AUSL 26,500 86,987 1.4
RETAILERS-OTHER
Telecom Italia Mobile S.p.A. - Di Risp .................... ITLY 48,300 85,546 1.4
TELEPHONE NETWORKS
Portugal Telecom S.A. - Registered ........................ PORT 2,100 84,716 1.4
TELEPHONE NETWORKS
Reuters Holdings PLC ...................................... UK 7,200 75,897 1.3
BROADCASTING & PUBLISHING
Elsevier N.V. ............................................. NETH 4,360 72,815 1.2
BROADCASTING & PUBLISHING
Sol Melia S.A. ............................................ SPN 1,764 72,403 1.2
LEISURE & TOURISM
EMAP PLC .................................................. UK 5,700 70,574 1.2
BROADCASTING & PUBLISHING
Stet Societa' Finanziaria Telefonica S.p.A. ............... ITLY 11,000 63,979 1.1
TELEPHONE NETWORKS
Telecel - Comunicacaoes Pessoais S.A.-/- .................. PORT 770 63,875 1.1
WIRELESS COMMUNICATIONS
Telefonica de Espana ...................................... SPN 2,140 61,848 1.0
TELEPHONE NETWORKS
Granada Group PLC ......................................... UK 4,400 57,885 1.0
BROADCASTING & PUBLISHING
Rentokil Group PLC ........................................ UK 14,000 49,192 0.8
CONSUMER SERVICES
Ezaki Glico ............................................... JPN 5,000 44,970 0.7
RETAILERS-FOOD
Castorama Dubois Investisse ............................... FR 279 39,239 0.6
RETAILERS-OTHER
G.I.B. Holdings Ltd. ...................................... BEL 690 32,974 0.5
RETAILERS-OTHER
PMP Communications Ltd. ................................... AUSL 10,000 27,317 0.4
BROADCASTING & PUBLISHING
Fast Retailing Co., Ltd. .................................. JPN 40 1,292 --
RETAILERS-APPAREL
------------
1,582,601
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F58
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Finance (13.0%)
Australia & New Zealand Banking Group Ltd. ................ AUSL 13,700 $ 102,347 1.7
BANKS-REGIONAL
Barclays PLC .............................................. UK 5,000 99,251 1.6
BANKS-MONEY CENTER
ING Groep N.V. ............................................ NETH 1,990 91,698 1.5
OTHER FINANCIAL
Royal & Sun Alliance Insurance Group PLC .................. UK 12,000 88,526 1.5
INSURANCE - MULTI-LINE
M & G Group PLC ........................................... UK 4,200 86,028 1.4
INVESTMENT MANAGEMENT
Norbanken AB .............................................. SWDN 2,220 74,889 1.2
BANKS-REGIONAL
Nichiei Co., Ltd. ......................................... JPN 600 69,682 1.1
OTHER FINANCIAL
Sparbanken Sverige AB "A" ................................. SWDN 3,080 68,471 1.1
BANKS-REGIONAL
Unidanmark AS "A" ......................................... DEN 900 50,545 0.8
BANKS-REGIONAL
PSIL Bangkok Bank Co., Ltd. (Entitlement
Certificates){\/} ........................................ THAI 8,000 39,376 0.6
OTHER FINANCIAL
Mapfre Vida Seguros ....................................... SPN 435 28,184 0.5
INSURANCE-LIFE
------------
798,997
------------
Health Care (10.2%)
Takeda Chemical Industries ................................ JPN 5,000 140,587 2.3
PHARMACEUTICALS
Roche Holding AG .......................................... SWTZ 12 108,423 1.8
PHARMACEUTICALS
Schering AG ............................................... GER 930 99,344 1.6
PHARMACEUTICALS
Novo Nordisk A/S "B" ...................................... DEN 656 71,510 1.2
PHARMACEUTICALS
Novartis AG ............................................... SWTZ 44 70,268 1.2
PHARMACEUTICALS
Sanofi S.A. ............................................... FR 540 52,896 0.9
PHARMACEUTICALS
Astra AB "B" .............................................. SWDN 2,933 51,745 0.9
MEDICAL TECHNOLOGY & SUPPLIES
M.L. Laboratories PLC-/- .................................. UK 5,930 15,800 0.3
PHARMACEUTICALS
------------
610,573
------------
Energy (6.4%)
Shell Transport & Trading Co., PLC ........................ UK 12,900 87,969 1.5
OIL
Total S.A. "B" ............................................ FR 820 82,834 1.4
OIL
Petroleo Brasileiro S.A. (Petrobras) - ADR{\/} ............ BRZL 3,000 82,500 1.4
GAS PRODUCTION & DISTRIBUTION
</TABLE>
The accompanying notes are an integral part of the financial statements.
F59
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Energy (Continued)
Ente Nazionale Idrocarburi (ENI) S.p.A. ................... ITLY 8,900 $ 50,238 0.8
OIL
Petroleum Geo-Services ASA-/- ............................. NOR 820 39,492 0.7
ENERGY EQUIPMENT & SERVICES
Astec (BSR) PLC ........................................... UK 17,300 39,469 0.6
ENERGY EQUIPMENT & SERVICES
------------
382,502
------------
Capital Goods (6.1%)
Canon, Inc. ............................................... JPN 3,000 81,732 1.3
OFFICE EQUIPMENT
General Electric PLC ...................................... UK 10,500 62,773 1.0
AEROSPACE/DEFENSE
SGL Carbon AG ............................................. GER 430 58,862 1.0
INDUSTRIAL COMPONENTS
Kurita Water Industries ................................... JPN 2,200 58,592 1.0
ELECTRICAL PLANT/EQUIPMENT
Smiths Industries PLC ..................................... UK 4,100 52,539 0.9
AEROSPACE/DEFENSE
Telefonaktiebolaget LM Ericsson "B" ....................... SWDN 880 34,634 0.6
TELECOM EQUIPMENT
Premier Farnell PLC ....................................... UK 2,270 17,672 0.3
INDUSTRIAL COMPONENTS
------------
366,804
------------
Materials/Basic Industry (5.6%)
Kimberly-Clark de Mexico, S.A. de C.V. "A" ................ MEX 25,000 100,743 1.7
PAPER/PACKAGING
Akzo Nobel N.V. ........................................... NETH 650 89,027 1.5
CHEMICALS
CRH PLC ................................................... UK 6,000 62,698 1.0
BUILDING MATERIALS & COMPONENTS
BOC Group PLC ............................................. UK 3,300 57,427 0.9
CHEMICALS
Leighton Holdings Ltd. .................................... AUSL 6,000 29,208 0.5
BUILDING MATERIALS & COMPONENTS
------------
339,103
------------
Multi-Industry/Miscellaneous (4.7%)
Shanghai Industrial Holdings Ltd. ......................... HK 19,000 118,217 2.0
MULTI-INDUSTRY
BBA Group PLC ............................................. UK 12,500 73,897 1.2
MULTI-INDUSTRY
Kinnevik AB "B" Free ...................................... SWDN 2,620 72,975 1.2
MULTI-INDUSTRY
Wrightson Ltd. ............................................ NZ 25,000 15,961 0.3
MULTI-INDUSTRY
------------
281,050
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F60
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE % OF NET
EQUITY INVESTMENTS COUNTRY SHARES (NOTE 1) ASSETS
- ------------------------------------------------------------- -------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Technology (4.3%)
Alcatel Alsthom Compagnie Generale d'Electricite .......... FR 870 $ 108,894 1.8
TELECOM TECHNOLOGY
Cap Gemini N.V. ........................................... NETH 1,930 60,927 1.0
COMPUTERS & PERIPHERALS
Group Axime-/- ............................................ FR 400 47,277 0.8
COMPUTERS & PERIPHERALS
Koei Co., Ltd. ............................................ JPN 2,500 43,442 0.7
SOFTWARE
------------
260,540
------------
Consumer Durables (2.9%)
Futuris Corp., Ltd. ....................................... AUSL 41,000 65,899 1.1
AUTO PARTS
Uny Co., Ltd. ............................................. JPN 3,000 58,680 1.0
APPLIANCES & HOUSEHOLD
Valeo S.A. ................................................ FR 800 49,658 0.8
AUTO PARTS
------------
174,237
------------
Consumer Non-Durables (0.9%)
EMAIL Ltd. ................................................ AUSL 8,000 28,615 0.5
HOUSEHOLD PRODUCTS
Guinness PLC .............................................. UK 2,400 23,500 0.4
BEVERAGES - ALCOHOLIC
------------
52,115
------------ -----
TOTAL EQUITY INVESTMENTS (cost $4,373,993) .................. 4,848,522 80.2
------------ -----
<CAPTION>
VALUE % OF NET
REPURCHASE AGREEMENT (NOTE 1) ASSETS
- ------------------------------------------------------------- ------------ -------------
<S> <C> <C> <C> <C>
Dated June 30, 1997, with State Street Bank & Trust Co.,
due July 1, 1997, for an effective yield of 5.75%,
collateralized by $1,665,000 U.S. Treasury Bills, 6.125%
due 3/31/98 (market value of collateral is $1,694,416,
including accrued interest). (cost $1,656,265). ......... 1,656,265 27.4
------------ -----
TOTAL INVESTMENTS (cost $6,030,258) * ...................... 6,504,787 107.6
Other Assets and Liabilities ................................ (457,077) (7.6)
------------ -----
NET ASSETS .................................................. $ 6,047,710 100.0
------------ -----
------------ -----
</TABLE>
- --------------
-/- Non-income producing security.
{\/} U.S. currency denominated.
* For Federal income tax purposes, cost is $6,042,817 and
appreciation (depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $ 598,249
Unrealized depreciation: (136,279)
-------------
Net unrealized appreciation: $ 461,970
-------------
-------------
</TABLE>
Abbreviation:
ADR--American Depository Receipt
The accompanying notes are an integral part of the financial statements.
F61
<PAGE>
GT GLOBAL VARIABLE INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
The Fund's Portfolio of Investments at June 30, 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) ................. 5.6 5.6
Belgium (BEL/BEF) .................... 0.5 0.5
Brazil (BRZL/BRL) .................... 1.4 1.4
Denmark (DEN/DKK) .................... 2.0 2.0
France (FR/FRF) ...................... 6.3 6.3
Germany (GER/DEM) .................... 2.6 2.6
Hong Kong (HK/HKD) ................... 2.0 2.0
Italy (ITLY/ITL) ..................... 3.3 3.3
Japan (JPN/JPY) ...................... 11.3 11.3
Mexico (MEX/MXN) ..................... 1.7 1.7
Netherlands (NETH/NLG) ............... 6.7 6.7
New Zealand (NZ/NZD) ................. 1.9 1.9
Norway (NOR/NOK) ..................... 0.7 0.7
Portugal (PORT/PTE) .................. 2.5 2.5
Spain (SPN/ESP) ...................... 2.7 2.7
Sweden (SWDN/SEK) .................... 5.0 5.0
Switzerland (SWTZ/CHF) ............... 4.7 4.7
Thailand (THAI/THB) .................. 0.6 0.6
United Kingdom (UK/GBP) .............. 18.7 18.7
United States & Other (US/USD) ....... -- 19.8 19.8
------ ----- -----
Total ............................... 80.2 19.8 100.0
------ ----- -----
------ ----- -----
</TABLE>
- --------------
{d} Percentages indicated are based on net assets of $6,047,710.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
UNREALIZED
MARKET VALUE CONTRACT DELIVERY APPRECIATION
CONTRACTS TO SELL: (U.S. DOLLARS) PRICE DATE (DEPRECIATION)
- ---------------------------------------- -------------- ----------- -------- --------------
<S> <C> <C> <C> <C>
Deutsche Marks.......................... 129,556 1.690000 08/29/97 $ 3,580
French Francs........................... 59,731 5.690000 08/20/97 1,780
French Francs........................... 51,152 5.782000 08/06/97 733
Japanese Yen............................ 212,723 122.250000 08/12/97 (14,767)
Japanese Yen............................ 89,583 125.330005 08/06/97 (8,198)
Japanese Yen............................ 62,871 121.000005 07/07/97 (3,367)
Swiss Francs............................ 120,933 1.431400 09/19/97 1,325
-------------- --------------
Total Contracts to Sell (Receivable
amount $707,635)..................... 726,549 (18,914)
-------------- --------------
THE VALUE OF CONTRACTS TO SELL AS
PERCENTAGE OF NET ASSETS IS 12.01%.
Total Open Forward Foreign Currency
Contracts............................ $ (18,914)
--------------
--------------
</TABLE>
- ----------------
See Note 1 to the financial statements.
The accompanying notes are an integral part of the financial statements.
F62
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
F63
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $26,884,307 $9,475,635 $5,346,134 $31,212,268
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
At value............................ $27,915,855 $9,332,446 $5,371,383 $35,960,488
Repurchase Agreement, at value and
cost (Note 1)........................ 2,832,452 72,012 159,025 2,012,321
U.S. currency......................... 110 658 454 777
Foreign currencies (cost $112,730;
$69,161; $0; $671,661; $15,090;
$234,013; $982,027; $1,221; $129,328;
$0; $404,689; $161,617; $0; $188,581,
respectively)........................ 106,420 68,871 -- 671,655
Dividends and dividend withholding tax
reclaims receivable.................. -- -- -- 128,406
Interest and interest withholding tax
reclaims receivable.................. 656,920 176,174 81,430 --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... -- 544 -- --
Receivable for Fund shares sold....... 48,125 -- 3,334 38,419
Receivable for open forward foreign
currency contracts, net (Note 1)..... 2,290 19,346 -- --
Receivable for securities sold........ 1,462,949 1,715 -- 201,412
Receivable from Chancellor LGT Asset
Management, Inc. (Note 2)............ 9,381 27,282 20,019 20,266
Unamortized organizational costs (Note
1)................................... 3,878 3,878 3,878 3,878
Miscellaneous receivable.............. 1,861 -- -- 974
Cash held as collateral for securities
loaned (Note 1)...................... 1,768,122 577,500 -- 1,538,024
---------- ---------- ----------- ----------
Total assets........................ 34,808,363 10,280,426 5,639,523 40,576,620
---------- ---------- ----------- ----------
Liabilities:
Written options, at value (premium
$4,888).............................. -- 5,746 -- --
Distribution payable (Note 1)......... -- -- -- --
Payable for custodian fees............ 4,686 743 579 4,672
Payable for forward foreign currency
contracts -- closed (Note 1)......... 12,190 -- -- --
Payable for fund accounting fees (Note
2)................................... 510 155 93 606
Payable for Fund shares repurchased... 484,912 11,814 3,294 9,043
Payable for investment management and
administration fees (Note 2)......... 19,081 30,448 16,301 48,435
Payable for loan outstanding (Note
1)................................... -- -- -- --
Payable for open forward foreign
currency contracts, net (Note 1)..... -- -- -- --
Payable for printing and postage
expenses............................. 15,411 18,347 20,731 14,691
Payable for professional fees......... 5,989 11,056 6,810 4,702
Payable for registration and filing
fees................................. 423 986 973 974
Payable for securities purchased...... 1,605,726 150,592 -- 2,563,213
Payable for Trustees' fees and
expenses (Note 2).................... 1,939 2,642 2,053 1,951
Other accrued expenses................ 1,055 2,246 1,316 3,108
Collateral for securities loaned (Note
1)................................... 1,768,122 577,500 -- 1,538,024
---------- ---------- ----------- ----------
Total liabilities................... 3,920,044 812,275 52,150 4,189,419
---------- ---------- ----------- ----------
Net assets.............................. $30,888,319 $9,468,151 $5,587,373 $36,387,201
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
Shares outstanding...................... 2,285,586 855,995 492,241 1,986,042
Net asset value per share............... $ 13.51 $ 11.06 $ 11.35 $ 18.32
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $30,292,424 $10,326,323 $5,560,876 $33,163,673
Undistributed/Accumulated net
investment income (loss)............. 425,169 395,719 24,773 372,447
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (846,630) (1,127,306) (23,525) (1,896,927)
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (14,192) 17,462 -- (212)
Net unrealized appreciation
(depreciation) of investments and
options.............................. 1,031,548 (144,047) 25,249 4,748,220
---------- ---------- ----------- ----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $30,888,319 $9,468,151 $5,587,373 $36,387,201
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F64
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF ASSETS
AND LIABILITIES (cont'd)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE NEW
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA PACIFIC
FUND FUND FUND FUND FUND FUND FUND
---------- ---------- ---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $32,133,461 $54,117,345 $22,579,034 $5,944,517 $13,933,079 $38,959,708 $24,463,422
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
At value............................ $41,376,167 $63,512,829 $23,582,949 $6,846,060 $14,915,904 $40,368,394 $29,433,334
Repurchase Agreement, at value and
cost (Note 1)........................ 3,345,534 4,828,771 -- 1,909,305 66,011 -- 1,642,262
U.S. currency......................... 236 344,342 598 310 453 363 11
Foreign currencies (cost $112,730;
$69,161; $0; $671,661; $15,090;
$234,013; $982,027; $1,221; $129,328;
$0; $404,689; $161,617; $0; $188,581,
respectively)........................ 15,031 231,660 977,886 1,307 129,550 -- 404,701
Dividends and dividend withholding tax
reclaims receivable.................. 110,447 86,601 33,822 13,068 6,811 3,691 61,042
Interest and interest withholding tax
reclaims receivable.................. 225,825 -- -- -- -- -- --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... -- -- -- -- -- -- --
Receivable for Fund shares sold....... 31,263 681,512 323,543 38,700 43,087 31,489 24,572
Receivable for open forward foreign
currency contracts, net (Note 1)..... 59,650 -- -- -- -- -- --
Receivable for securities sold........ 945,466 320 251,378 -- 485,449 883,349 144,218
Receivable from Chancellor LGT Asset
Management, Inc. (Note 2)............ 4,344 -- 15,102 15,863 19,852 -- 22,671
Unamortized organizational costs (Note
1)................................... 3,878 8,167 -- -- -- 3,878 3,878
Miscellaneous receivable.............. 2,770 -- 797 217 -- -- 209
Cash held as collateral for securities
loaned (Note 1)...................... 4,564,790 5,063,858 348,170 796,600 55,800 5,127,900 1,875,602
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total assets........................ 50,685,401 74,758,060 25,534,245 9,621,430 15,722,917 46,419,064 33,612,500
---------- ---------- ---------- ----------- ---------- ---------- ----------
Liabilities:
Written options, at value (premium
$4,888).............................. -- -- -- -- -- -- --
Distribution payable (Note 1)......... -- -- -- -- -- -- --
Payable for custodian fees............ 1,907 2,056 16,348 2,498 1,747 5,372 10,880
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- -- -- -- -- --
Payable for fund accounting fees (Note
2)................................... 735 2,178 411 151 267 671 512
Payable for Fund shares repurchased... 804,744 27,841 134,783 1,375 85,152 113,828 1,578,171
Payable for investment management and
administration fees (Note 2)......... 35,216 54,762 31,672 30,712 12,765 24,664 42,457
Payable for loan outstanding (Note
1)................................... -- -- 778,000 -- -- 294,000 --
Payable for open forward foreign
currency contracts, net (Note 1)..... -- 55,291 -- -- -- -- --
Payable for printing and postage
expenses............................. 13,160 16,145 18,733 19,441 18,861 14,309 14,393
Payable for professional fees......... 9,328 9,260 10,354 7,184 8,081 10,901 9,401
Payable for registration and filing
fees................................. 480 1,609 499 718 718 971 418
Payable for securities purchased...... 1,544,407 118,899 1,021,223 -- 672,130 462,777 244,300
Payable for Trustees' fees and
expenses (Note 2).................... 2,268 1,776 2,658 2,024 2,108 1,797 3,565
Other accrued expenses................ 1,525 20,630 2,976 2,051 567 1,543 1,702
Collateral for securities loaned (Note
1)................................... 4,564,790 5,063,858 348,170 796,600 55,800 5,127,900 1,875,602
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total liabilities................... 6,978,560 5,374,305 2,365,827 862,754 858,196 6,058,733 3,781,401
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets.............................. $43,706,841 $69,383,755 $23,168,418 $8,758,676 $14,864,721 $40,360,331 $29,831,099
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Shares outstanding...................... 2,485,219 3,864,920 1,504,972 520,425 829,730 2,171,007 1,696,391
Net asset value per share............... $ 17.59 $ 17.95 $ 15.39 $ 16.83 $ 17.92 $ 18.59 $ 17.59
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
Net assets consist of:
Paid in capital (Note 4).............. $34,430,157 $56,188,416 $19,009,977 $7,930,039 $14,961,878 $35,909,816 $22,363,324
Undistributed/Accumulated net
investment income (loss)............. 621,680 81,925 176,266 49,486 (20,071) (66,981) 171,927
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... (644,531) 3,775,133 2,982,240 (122,444) (1,060,040) 3,108,810 2,326,124
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 56,829 (57,203) (3,980) 52 129 -- (188)
Net unrealized appreciation
(depreciation) of investments and
options.............................. 9,242,706 9,395,484 1,003,915 901,543 982,825 1,408,686 4,969,912
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $43,706,841 $69,383,755 $23,168,418 $8,758,676 $14,864,721 $40,360,331 $29,831,099
---------- ---------- ---------- ----------- ---------- ---------- ----------
---------- ---------- ---------- ----------- ---------- ---------- ----------
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
---------- ---------- -----------
<S> <C> <C> <C>
Assets:
Investments in securities: (Note 1)
At identified cost.................. $23,915,204 $9,636,481 $4,373,993
---------- ---------- -----------
---------- ---------- -----------
At value............................ $29,454,443 $9,636,481 $4,848,522
Repurchase Agreement, at value and
cost (Note 1)........................ 343,055 7,093,133 1,656,265
U.S. currency......................... 815 357 370
Foreign currencies (cost $112,730;
$69,161; $0; $671,661; $15,090;
$234,013; $982,027; $1,221; $129,328;
$0; $404,689; $161,617; $0; $188,581,
respectively)........................ 161,438 -- 187,240
Dividends and dividend withholding tax
reclaims receivable.................. 63,248 -- 16,454
Interest and interest withholding tax
reclaims receivable.................. -- 2,455 --
Receivable for forward foreign
currency contracts -- closed (Note
1)................................... -- -- --
Receivable for Fund shares sold....... 13,996 4,068,903 --
Receivable for open forward foreign
currency contracts, net (Note 1)..... -- -- --
Receivable for securities sold........ 665,340 -- 68,265
Receivable from Chancellor LGT Asset
Management, Inc. (Note 2)............ 18,495 4,710 28,711
Unamortized organizational costs (Note
1)................................... 3,878 3,878 --
Miscellaneous receivable.............. 234 -- 221
Cash held as collateral for securities
loaned (Note 1)...................... 3,110,868 -- 532,480
---------- ---------- -----------
Total assets........................ 33,835,810 20,809,917 7,338,528
---------- ---------- -----------
Liabilities:
Written options, at value (premium
$4,888).............................. -- -- --
Distribution payable (Note 1)......... -- 66,910 --
Payable for custodian fees............ 4,490 576 2,942
Payable for forward foreign currency
contracts -- closed (Note 1)......... -- -- --
Payable for fund accounting fees (Note
2)................................... 486 263 114
Payable for Fund shares repurchased... 1,376,945 249,740 477,454
Payable for investment management and
administration fees (Note 2)......... 35,292 6,671 26,014
Payable for loan outstanding (Note
1)................................... -- -- --
Payable for open forward foreign
currency contracts, net (Note 1)..... -- -- 18,914
Payable for printing and postage
expenses............................. 16,826 10,707 16,645
Payable for professional fees......... 9,975 6,400 14,524
Payable for registration and filing
fees................................. 1,302 603 425
Payable for securities purchased...... 495,441 -- 198,734
Payable for Trustees' fees and
expenses (Note 2).................... 1,516 359 2,050
Other accrued expenses................ 1,336 740 522
Collateral for securities loaned (Note
1)................................... 3,110,868 -- 532,480
---------- ---------- -----------
Total liabilities................... 5,054,477 342,969 1,290,818
---------- ---------- -----------
Net assets.............................. $28,781,333 $20,466,948 $6,047,710
---------- ---------- -----------
---------- ---------- -----------
Shares outstanding...................... 1,324,926 20,466,948 470,450
Net asset value per share............... $ 21.72 $ 1.00 $ 12.86
---------- ---------- -----------
---------- ---------- -----------
Net assets consist of:
Paid in capital (Note 4).............. $21,781,704 $20,466,948 $5,358,792
Undistributed/Accumulated net
investment income (loss)............. 103,468 -- 41,046
Accumulated net realized gain (loss)
on investments and foreign currency
transactions......................... 1,365,344 -- 191,906
Net unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (8,422) -- (18,563)
Net unrealized appreciation
(depreciation) of investments and
options.............................. 5,539,239 -- 474,529
---------- ---------- -----------
Total -- representing net assets
applicable to capital shares
outstanding............................ $28,781,333 $20,466,948 $6,047,710
---------- ---------- -----------
---------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F65
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
Six months ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-----------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
---------- ----------- ----------- ---------
<S> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... -- -- -- $ 442,641
Interest income....................... $1,109,489 $ 321,417 $ 174,290 111,512
---------- ----------- ----------- ---------
Total investment income............. 1,109,489 321,417 174,290 554,153
---------- ----------- ----------- ---------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,106 3,106 3,106 3,106
Custodian fees (Note 1)............... 14,636 7,523 543 30,322
Fund accounting fees (Note 2)......... 3,705 1,221 657 3,683
Investment management and
administration fees (Note 2)......... 111,149 36,618 19,722 147,330
Printing and postage expenses......... 8,701 7,343 7,240 6,688
Professional fees..................... 13,933 18,743 14,143 12,394
Registration and filing fees.......... 350 13 -- --
Trustees' fees and expenses (Note
2)................................... 905 905 905 905
Other expenses........................ 1,156 635 -- --
---------- ----------- ----------- ---------
Total expenses before reimbursements
and reductions..................... 157,641 76,107 46,316 204,428
---------- ----------- ----------- ---------
Expenses reimbursed by Chancellor
LGT Asset Management, Inc. (Note
2)............................... (9,381) (27,282) (20,019) (20,266)
Expense reductions (Notes 1 &
6)............................... (5,637) (4,243) -- (2,456)
---------- ----------- ----------- ---------
Total net expenses.................. 142,623 44,582 26,297 181,706
---------- ----------- ----------- ---------
Net investment income (loss)............ 966,866 276,835 147,993 372,447
---------- ----------- ----------- ---------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 1,152,360 (122,286) (49,827) 1,648,080
Net realized gain (loss) on foreign
currency transactions................ 309,136 204,326 1,093 (6,566)
---------- ----------- ----------- ---------
Net realized gain (loss) during the
year............................... 1,461,496 82,040 (48,734) 1,641,514
---------- ----------- ----------- ---------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (57,912) (36,921) (2,603) 1,839
Net change in unrealized appreciation
(depreciation) of investments........ (1,020,053) (349,134) 27,046 4,237,310
---------- ----------- ----------- ---------
Net unrealized appreciation
(depreciation) during the period... (1,077,965) (386,055) 24,443 4,239,149
---------- ----------- ----------- ---------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 383,531 (304,015) (24,291) 5,880,663
---------- ----------- ----------- ---------
Net increase (decrease) in net assets
resulting from operations.............. $1,350,397 $ (27,180) $ 123,702 $6,253,110
---------- ----------- ----------- ---------
---------- ----------- ----------- ---------
*Net of foreign withholding tax of:.... $ -- $ -- $ -- $ 9,800
---------- ----------- ----------- ---------
---------- ----------- ----------- ---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F66
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENTS OF OPERATIONS (cont'd)
Six months ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE NEW
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA PACIFIC
FUND FUND FUND FUND FUND FUND FUND
--------- --------- --------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 449,683 $ 279,364 $ 246,312 $ 57,972 $ 38,419 $ 70,501 $ 285,352
Interest income....................... 438,608 156,316 70,272 37,412 34,615 53,316 75,161
--------- --------- --------- ----------- ---------- ---------- ----------
Total investment income............. 888,291 435,680 316,584 95,384 73,034 123,817 360,513
--------- --------- --------- ----------- ---------- ---------- ----------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,106 3,106 -- -- -- 3,106 3,106
Custodian fees (Note 1)............... 16,097 11,745 11,243 4,867 14,849 13,411 26,215
Fund accounting fees (Note 2)......... 4,795 7,988 2,860 938 1,912 4,741 4,011
Investment management and
administration fees (Note 2)......... 191,795 319,508 114,416 37,520 76,464 142,220 160,453
Printing and postage expenses......... 7,589 11,073 10,199 6,839 7,349 8,363 8,927
Professional fees..................... 17,004 17,075 18,187 11,720 13,735 14,576 15,180
Registration and filing fees.......... 343 1,267 349 13 12 12 343
Trustees' fees and expenses (Note
2)................................... 1,368 905 233 233 181 1,086 2,849
Other expenses........................ 2,175 543 6,718 958 2,687 2,028 2,153
--------- --------- --------- ----------- ---------- ---------- ----------
Total expenses before reimbursements
and reductions..................... 244,272 373,210 164,205 63,088 117,189 189,543 223,237
--------- --------- --------- ----------- ---------- ---------- ----------
Expenses reimbursed by Chancellor
LGT Asset Management, Inc. (Note
2)............................... (4,344) -- (15,102) (15,863) (19,852) -- (22,671)
Expense reductions (Notes 1 &
6)............................... (19,124) (19,455) (7,011) (2,888) (4,232) (12,020) (20,119)
--------- --------- --------- ----------- ---------- ---------- ----------
Total net expenses.................. 220,804 353,755 142,092 44,337 93,105 177,523 180,447
--------- --------- --------- ----------- ---------- ---------- ----------
Net investment income (loss)............ 667,487 81,925 174,492 51,047 (20,071) (53,706) 180,066
--------- --------- --------- ----------- ---------- ---------- ----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 21,125 3,678,369 3,014,419 (117,382) (981,098) 3,296,161 3,031,149
Net realized gain (loss) on foreign
currency transactions................ 293,173 105,626 (65,618) (3,555) (32,930) -- 16,992
--------- --------- --------- ----------- ---------- ---------- ----------
Net realized gain (loss) during the
year............................... 314,298 3,783,995 2,948,801 (120,937) (1,014,028) 3,296,161 3,048,141
--------- --------- --------- ----------- ---------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 15,738 (81,847) (6,615) 48 1,811 -- (92)
Net change in unrealized appreciation
(depreciation) of investments........ 2,377,441 3,446,958 (16,356) 678,230 (839,036) (3,858,362) (3,161,631)
--------- --------- --------- ----------- ---------- ---------- ----------
Net unrealized appreciation
(depreciation) during the period... 2,393,179 3,365,111 (22,971) 678,278 (837,225) (3,858,362) (3,161,723)
--------- --------- --------- ----------- ---------- ---------- ----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 2,707,477 7,149,106 2,925,830 557,341 (1,851,253) (562,201) (113,582)
--------- --------- --------- ----------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations.............. $3,374,964 $7,231,031 $3,100,322 $ 608,388 $(1,871,324) $ (615,907) $ 66,484
--------- --------- --------- ----------- ---------- ---------- ----------
--------- --------- --------- ----------- ---------- ---------- ----------
*Net of foreign withholding tax of:.... $ 68,359 $ 23,770 $ 8,843 $ 3,530 $ 3,158 $ -- $ 14,370
--------- --------- --------- ----------- ---------- ---------- ----------
--------- --------- --------- ----------- ---------- ---------- ----------
<CAPTION>
VARIABLE MONEY VARIABLE
EUROPE MARKET INTERNATIONAL
FUND FUND FUND
--------- --------- -----------
<S> <C> <C> <C>
Investment income: * (Note 1)
Dividend income....................... $ 244,246 -- $ 55,058
Interest income....................... 16,281 $ 519,345 17,617
--------- --------- -----------
Total investment income............. 260,527 519,345 72,675
--------- --------- -----------
Expenses:
Amortization of organization costs
(Note 1)............................. 3,106 3,106 --
Custodian fees (Note 1)............... 15,906 6,122 9,779
Fund accounting fees (Note 2)......... 3,340 2,391 649
Investment management and
administration fees (Note 2)......... 133,607 47,812 25,957
Printing and postage expenses......... 8,117 4,187 6,194
Professional fees..................... 18,175 11,141 17,987
Registration and filing fees.......... 343 12 350
Trustees' fees and expenses (Note
2)................................... 1,757 905 229
Other expenses........................ 3,618 735 110
--------- --------- -----------
Total expenses before reimbursements
and reductions..................... 187,969 76,411 61,255
--------- --------- -----------
Expenses reimbursed by Chancellor
LGT Asset Management, Inc. (Note
2)............................... (18,495) (4,710) (28,711)
Expense reductions (Notes 1 &
6)............................... (14,248) -- (2,068)
--------- --------- -----------
Total net expenses.................. 155,226 71,701 30,476
--------- --------- -----------
Net investment income (loss)............ 105,301 447,644 42,199
--------- --------- -----------
Net realized and unrealized gain (loss)
on investments and foreign currencies:
(Note 1)
Net realized gain (loss) on
investments.......................... 1,546,296 -- 248,952
Net realized gain (loss) on foreign
currency transactions................ (12,794) -- 49,817
--------- --------- -----------
Net realized gain (loss) during the
year............................... 1,533,502 -- 298,769
--------- --------- -----------
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (10,803) -- (35,238)
Net change in unrealized appreciation
(depreciation) of investments........ 1,405,046 -- 168,369
--------- --------- -----------
Net unrealized appreciation
(depreciation) during the period... 1,394,243 -- 133,131
--------- --------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currencies........................... 2,927,745 -- 431,900
--------- --------- -----------
Net increase (decrease) in net assets
resulting from operations.............. $3,033,046 $ 447,644 $ 474,099
--------- --------- -----------
--------- --------- -----------
*Net of foreign withholding tax of:.... $ 38,088 $ -- $ 9,463
--------- --------- -----------
--------- --------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F67
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the period ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
--------------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 966,866 $ 276,835 $ 147,993 $ 372,447
Net realized gain (loss) on
investments and foreign currency
transactions......................... 1,461,496 82,040 (48,734) 1,641,514
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (57,912) (36,921) (2,603) 1,839
Net change in unrealized appreciation
(depreciation) of investments........ (1,020,053) (349,134) 27,046 4,237,310
------------- ------------ ------------ -------------
Net increase (decrease) in net
assets resulting from operations... 1,350,397 (27,180) 123,702 6,253,110
------------- ------------ ------------ -------------
Distributions to shareholders: (Note 1)
From net investment income............ (1,003,123) (309,026) (144,341) --
From net realized gain on
investments.......................... -- -- -- --
------------- ------------ ------------ -------------
Total distributions............... (1,003,123) (309,026) (144,341) --
------------- ------------ ------------ -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 18,955,920 2,556,480 1,734,409 27,090,904
Decrease from capital shares
repurchased.......................... (20,132,796) (3,149,492) (1,609,323) (19,884,466)
------------- ------------ ------------ -------------
Net increase (decrease) from capital
share transactions................. (1,176,876) (593,012) 125,086 7,206,438
------------- ------------ ------------ -------------
Total increase (decrease) in net
assets................................. (829,602) (929,218) 104,447 13,459,548
Net assets:
Beginning of period................... 31,717,921 10,397,369 5,482,926 22,927,653
------------- ------------ ------------ -------------
End of period*........................ $ 30,888,319 $ 9,468,151 $ 5,587,373 $ 36,387,201
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
*Includes undistributed/accumulated
net investment income (loss) of:..... $ 425,169 $ 395,719 $ 24,773 $ 372,447
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1996
GT GLOBAL
--------------------------------------------------------
VARIABLE VARIABLE
VARIABLE GLOBAL U.S. VARIABLE
STRATEGIC GOVERNMENT GOVERNMENT LATIN
INCOME INCOME INCOME AMERICA
FUND FUND FUND FUND
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 2,081,768 $ 683,201 $ 272,902 $ 435,954
Net realized gain (loss) on
investments and foreign currency
transactions......................... 1,924,934 (141,142) 26,233 1,989,181
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 137,267 120,434 2,603 5,649
Net change in unrealized appreciation
(depreciation) of investments........ 1,136,746 (38,711) (183,973) 2,060,350
------------- ------------ ------------ -------------
Net increase (decrease) in net
assets resulting from operations... 5,280,715 623,782 117,765 4,491,134
------------- ------------ ------------ -------------
Distributions to shareholders: (Note 1)
From net investment income............ (1,851,306) (706,141) (262,014) (613,467)
From net realized gain on
investments.......................... (153,457) -- -- --
In excess of net investment income.... -- -- -- (11,459)
------------- ------------ ------------ -------------
Total distributions............... (2,004,763) (706,141) (262,014) (624,926)
------------- ------------ ------------ -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 45,166,146 7,375,614 4,065,030 29,173,781
Decrease from capital shares
repurchased.......................... (42,069,061) (8,839,632) (4,430,300) (29,883,182)
------------- ------------ ------------ -------------
Net increase (decrease) from capital
share transactions................. 3,097,085 (1,464,018) (365,270) (709,401)
------------- ------------ ------------ -------------
Total increase (decrease) in net
assets................................. 6,373,037 (1,546,377) (509,519) 3,156,807
Net assets:
Beginning of period................... 25,344,884 11,943,746 5,992,445 19,770,846
------------- ------------ ------------ -------------
End of period*........................ $ 31,717,921 $ 10,397,369 $ 5,482,926 $ 22,927,653
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
*Includes undistributed net investment
income of:........................... $ 461,426 $ 427,910 $ 21,121 $ --
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F68
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
STATEMENT OF CHANGES IN NET ASSETS (cont'd)
For the period ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 667,487 $ 81,925 $ 174,492 $ 51,047 $ (20,071) $ (53,706)
Net realized gain (loss) on
investments and foreign currency
transactions......................... 314,298 3,783,995 2,948,801 (120,937 ) (1,014,028) 3,296,161
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 15,738 (81,847) (6,615) 48 1,811 --
Net change in unrealized appreciation
(depreciation) of investments........ 2,377,441 3,446,958 (16,356) 678,230 (839,036) (3,858,362)
------------- ------------- ------------- ------------ ------------- -------------
Net increase (decrease) in net
assets resulting from operations... 3,374,964 7,231,031 3,100,322 608,388 (1,871,324) (615,907)
------------- ------------- ------------- ------------ ------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (791,459) -- (81,957) (46,918 ) -- (209,674)
From net realized gain on
investments.......................... (90,528) (7,753,958) (1,243,734) (432,141 ) (727,484) (1,541,102)
------------- ------------- ------------- ------------ ------------- -------------
Total distributions............... (881,987) (7,753,958) (1,325,691) (479,059 ) (727,484) (1,750,776)
------------- ------------- ------------- ------------ ------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 30,967,466 33,998,810 41,535,381 4,236,542 13,942,745 21,057,223
Decrease from capital shares
repurchased.......................... (26,186,365) (27,349,957) (37,745,518) (1,661,165 ) (12,787,169) (19,976,818)
------------- ------------- ------------- ------------ ------------- -------------
Net increase (decrease) from capital
share transactions................. 4,781,101 6,648,853 3,789,863 2,575,377 1,155,576 1,080,405
------------- ------------- ------------- ------------ ------------- -------------
Total increase (decrease) in net
assets................................. 7,274,078 6,125,926 5,564,494 2,704,706 (1,443,232) (1,286,278)
Net assets:
Beginning of period................... 36,432,763 63,257,829 17,603,924 6,053,970 16,307,953 41,646,609
------------- ------------- ------------- ------------ ------------- -------------
End of period*........................ $ 43,706,841 $ 69,383,755 $ 23,168,418 $ 8,758,676 $ 14,864,721 $ 40,360,331
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
*Includes undistributed net investment
income of:........................... $ 621,680 $ 81,925 $ 176,266 $ 49,486 $ (20,071) $ (66,981)
------------- ------------- ------------- ------------ ------------- -------------
------------- ------------- ------------- ------------ ------------- -------------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 180,066 $ 105,301 $ 447,644 $ 42,199
Net realized gain (loss) on
investments and foreign currency
transactions......................... 3,048,141 1,533,502 -- 298,769
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (92) (10,803) -- (35,238)
Net change in unrealized appreciation
(depreciation) of investments........ (3,161,631) 1,405,046 -- 168,369
-------------- ------------- -------------- -------------
Net increase (decrease) in net
assets resulting from operations... 66,484 3,033,046 447,644 474,099
-------------- ------------- -------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (171,228) (69,048) (447,644) (7,912)
From net realized gain on
investments.......................... (135,180) (2,404,127) -- --
-------------- ------------- -------------- -------------
Total distributions............... (306,408) (2,473,175) (447,644) (7,912)
-------------- ------------- -------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 109,123,927 69,008,712 243,899,270 17,106,564
Decrease from capital shares
repurchased.......................... (111,723,104) (65,324,299) (243,226,382) (16,306,889)
-------------- ------------- -------------- -------------
Net increase (decrease) from capital
share transactions................. (2,599,177) 3,684,413 672,888 799,675
-------------- ------------- -------------- -------------
Total increase (decrease) in net
assets................................. (2,839,101) 4,244,284 672,888 1,265,862
Net assets:
Beginning of period................... 32,670,200 24,537,049 19,794,060 4,781,848
-------------- ------------- -------------- -------------
End of period*........................ $ 29,831,099 $ 28,781,333 $ 20,466,948 $ 6,047,710
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
*Includes undistributed net investment
income of:........................... $ 171,927 $ 103,468 $ -- $ 41,046
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1996
GT GLOBAL
----------------------------------------------------------------------------------------
VARIABLE VARIABLE VARIABLE VARIABLE
GROWTH & TELECOM- EMERGING VARIABLE NATURAL VARIABLE
INCOME MUNICATIONS MARKETS INFRASTRUCTURE RESOURCES AMERICA
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 1,137,133 $ (159,179) $ 132,940 $ 47,274 $ (45,203) $ 201,092
Net realized gain (loss) on
investments and foreign currency
transactions......................... 584,240 8,082,167 2,583,937 432,860 732,622 1,558,532
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... 20,456 3,633 2,710 145 (2,282) --
Net change in unrealized appreciation
(depreciation) of investments........ 3,228,349 1,763,783 826,703 211,063 1,760,818 4,688,367
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net
assets resulting from operations... 4,970,178 9,690,404 3,546,290 691,342 2,445,955 6,447,991
------------- ------------- ------------- ------------- ------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (736,222) (70,025) -- (9,314 ) -- (526,781)
From net realized gain on
investments.......................... (103,267) (6,373,965) -- (17,455 ) -- (4,953,885)
In excess of net investment income.... -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Total distributions............... (839,489) (6,443,990) -- (26,769 ) -- (5,480,666)
------------- ------------- ------------- ------------- ------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 29,950,604 43,828,906 32,771,217 7,252,525 33,416,057 60,951,545
Decrease from capital shares
repurchased.......................... (28,213,931) (34,595,566) (27,696,344) (3,457,346 ) (20,919,006) (57,915,239)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) from capital
share transactions................. 1,736,673 9,233,340 5,074,873 3,795,179 12,497,051 3,036,306
------------- ------------- ------------- ------------- ------------- -------------
Total increase (decrease) in net
assets................................. 5,867,362 12,479,754 8,621,163 4,459,752 14,943,006 4,003,631
Net assets:
Beginning of period................... 30,565,401 50,778,075 8,982,761 1,594,218 1,364,947 37,642,978
------------- ------------- ------------- ------------- ------------- -------------
End of period......................... $ 36,432,763 $ 63,257,829 $ 17,603,924 $ 6,053,970 $ 16,307,953 $ 41,646,609
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
Includes undistributed net investment
income of:........................... $ 745,652 $ -- $ 83,731 $ 45,357 $ -- $ 196,399
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
VARIABLE
NEW VARIABLE MONEY VARIABLE
PACIFIC EUROPE MARKET INTERNATIONAL
FUND FUND FUND FUND
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in net assets
Operations:
Net investment income (loss).......... $ 256,226 $ 71,331 $ 717,755 $ 21,621
Net realized gain (loss) on
investments and foreign currency
transactions......................... 1,248,081 3,075,019 -- 218,360
Net change in unrealized appreciation
(depreciation) on translation of
assets and liabilities in foreign
currencies........................... (2,246) (10,428) -- 3,152
Net change in unrealized appreciation
(depreciation) of investments........ 7,190,989 2,087,986 -- 130,577
-------------- ------------- -------------- -------------
Net increase (decrease) in net
assets resulting from operations... 8,693,050 5,223,908 717,755 373,710
-------------- ------------- -------------- -------------
Distributions to shareholders: (Note 1)
From net investment income............ (329,817) (155,793) (717,755) (526)
From net realized gain on
investments.......................... -- -- -- (14,157)
In excess of net investment income.... -- -- -- --
-------------- ------------- -------------- -------------
Total distributions............... (329,817) (155,793) (717,755) (14,683)
-------------- ------------- -------------- -------------
Capital share transactions: (Note 4)
Increase from capital shares sold and
reinvested........................... 177,020,035 77,988,956 316,808,464 9,136,580
Decrease from capital shares
repurchased.......................... (175,737,852) (74,160,899) (311,904,996) (8,376,359)
-------------- ------------- -------------- -------------
Net increase (decrease) from capital
share transactions................. 1,282,183 3,828,057 4,903,468 760,221
-------------- ------------- -------------- -------------
Total increase (decrease) in net
assets................................. 9,645,416 8,896,172 4,903,468 1,119,248
Net assets:
Beginning of period................... 23,024,784 15,640,877 14,890,592 3,662,600
-------------- ------------- -------------- -------------
End of period......................... $ 32,670,200 $ 24,537,049 $ 19,794,060 $ 4,781,848
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
Includes undistributed net investment
income of:........................... $ 163,089 $ 67,215 $ -- $ 6,759
-------------- ------------- -------------- -------------
-------------- ------------- -------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
F69
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE STRATEGIC INCOME FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 13.38 $ 11.86 $ 10.82 $ 14.57 $ 12.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... 0.44 0.95(b) 1.07(c) 1.71(d) 0.61(e)
Net realized and unrealized gain
(loss) on investments................ 0.14 1.50 0.93 (4.17) 2.57
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... 0.58 2.45 2.00 (2.46) 3.18
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.45) (0.85) (0.96) (0.79) (0.61)
From net realized gain on
investments.......................... -- (0.08) -- (0.45) --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- (0.05) --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (0.45) (0.93) (0.96) (1.29) (0.61)
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 13.51 $ 13.38 $ 11.86 $ 10.82 $ 14.57
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... 4.44% 21.58% 19.50% (17.09)% 27.5%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 30,888 $ 31,718 $ 25,345 $ 23,367 $ 18,089
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 6.52% 7.74% 9.59% 7.58% 6.6%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 6.42% 7.59% 9.35% 7.43% 6.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 5.2%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.96% 0.99% 1.00% 1.00% 0.5%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.06% 1.14% 1.24% 1.15% 0.9%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 1.9%
Portfolio turnover ++................... 181% 210% 193% 313% 245%
Average commission rate per share paid
on portfolio transactions.............. N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE LATIN AMERICA FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.80 $ 12.42 $ 19.17 $ 17.68 $ 12.00
--------------- ----------- ----------- ----------- --------
Net investment income (loss).......... 0.19(a) 0.27(b) 0.51(c) 0.11(d) 0.04(e)
Net realized and unrealized gain
(loss) on investments................ 3.33 2.49 (5.10) 1.49 5.64
--------------- ----------- ----------- ----------- --------
Net increase (decrease) resulting
from operations.................... 3.52 2.76 (4.59) 1.60 5.68
--------------- ----------- ----------- ----------- --------
Distributions to shareholders:
From net investment income............ -- (0.37) (0.16) (0.04) --
From net realized gain on
investments.......................... -- -- (2.00) (0.07) --
In excess of net investment income.... -- (0.01) -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- --------
Total distributions................. -- (0.38) (2.16) (0.11) --
--------------- ----------- ----------- ----------- --------
Net asset value, end of period.......... $ 18.32 $ 14.80 $ 12.42 $ 19.17 $ 17.68
--------------- ----------- ----------- ----------- --------
--------------- ----------- ----------- ----------- --------
Total investment return (g) +.......... 23.78% 22.48% (24.14)% 9.14% 47.3%
--------------- ----------- ----------- ----------- --------
--------------- ----------- ----------- ----------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 36,387 $ 22,928 $ 19,771 $ 26,631 $ 8,240
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 2.53% 1.94% 4.43% 0.82% 1.0%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 2.37% 1.69% 3.92% 0.49% 0.4%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% (2.5)%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.23% 1.17% 1.18% 1.25% 0.7%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.39% 1.42% 1.69% 1.58% 1.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 4.2%
Portfolio turnover ++................... 157% 102% 140% 185% 78%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0005 $ 0.0002 N/A N/A N/A
</TABLE>
- ------------------------
(a) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.00 for the Variable Strategic Income
Fund, $0.03 for the Variable Global Government, $0.04 for Variable
U.S. Government Income Fund, $0.01 for the Variable Latin America
Fund, and $0.00 for the Variable Growth & Income Fund (Note 2).
(b) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.02 for the Variable Strategic Income
Fund, $0.06 for the Variable Global Government Income Fund, $0.08 for
the Variable U.S. Government Income Fund, $0.02 for the Variable Latin
America Fund, and $0.01 for the Variable Growth & Income Fund (Note
2).
(c) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.03 for the Variable Strategic Income
Fund, $0.07 for the Variable Global Government Income Fund, $0.14 for
the Variable U.S. Government Income Fund, $0.06 for the Variable Latin
America Fund, $0.03 for the Variable Growth & Income Fund, and $0.00
for the Variable Telecommunications Fund (Note 2).
(d) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.04 for the Variable Strategic Income
Fund, $0.08 for the Variable Global Government Income Fund, $0.48 for
the Variable U.S. Government Income Fund, $0.04 for the Variable Latin
America Fund, $0.03 for the Variable Growth & Income Fund, and $0.01
for the Variable Telecommunications Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F70
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
---------------------------------------------------------------------------
VARIABLE GLOBAL GOVERNMENT INCOME FUND
---------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 -------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.43 $ 11.51 $ 10.63 $ 12.53 $ 12.00
--------------- ----------- ----------- ---------- --------
Net investment income (loss).......... 0.34(a) 0.72(b) 0.79(c) 0.77(d) 0.57(e)
Net realized and unrealized gain
(loss) on investments................ (0.36) (0.06) 0.84 (1.85) 0.52
--------------- ----------- ----------- ---------- --------
Net increase (decrease) resulting
from operations.................... (0.02) 0.66 1.63 (1.08) 1.09
--------------- ----------- ----------- ---------- --------
Distributions to shareholders:
From net investment income............ (0.35) (0.74) (0.75) (0.73) (0.56)
From net realized gain on
investments.......................... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- (0.09) --
--------------- ----------- ----------- ---------- --------
Total distributions................. (0.35) (0.74) (0.75) (0.82) (0.56)
--------------- ----------- ----------- ---------- --------
Net asset value, end of period.......... $ 11.06 $ 11.43 $ 11.51 $ 10.63 $ 12.53
--------------- ----------- ----------- ---------- --------
--------------- ----------- ----------- ---------- --------
Total investment return (g) +.......... (0.22)% 6.17% 15.85% (8.70)% 9.5%
--------------- ----------- ----------- ---------- --------
--------------- ----------- ----------- ---------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 9,468 $ 10,397 $ 11,944 $ 9,654 $ 6,136
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 5.67% 6.32% 7.03% 6.89% 6.1%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 5.02% 5.80% 6.37% 6.21% 5.5%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 2.4%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.91% 0.95% 1.00% 1.00% 0.5%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.56% 1.47% 1.66% 1.68% 1.1%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 4.2%
Portfolio turnover ++................... 271% 235% 394% 350% 298%
Average commission rate per share paid
on portfolio transactions.............. N/A N/A N/A N/A N/A
<CAPTION>
GT GLOBAL
------------------------------------------------------------------------
VARIABLE U.S. GOVERNMENT INCOME FUND
------------------------------------------------------------------------
FEBRUARY 10,
1993
(COMMENCEMENT
SIX MONTHS OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 ------------------------------------ DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.41 $ 11.74 $ 10.79 $ 12.23 $ 12.00
--------------- ---------- ---------- ---------- ---------------
Net investment income (loss).......... 0.32(a) 0.60(b) 0.62(c) 0.63(d) 0.53(e)
Net realized and unrealized gain
(loss) on investments................ (0.07) (0.35) 0.93 (1.39) 0.23
--------------- ---------- ---------- ---------- ---------------
Net increase (decrease) resulting
from operations.................... 0.25 0.25 1.55 (0.76) 0.76
--------------- ---------- ---------- ---------- ---------------
Distributions to shareholders:
From net investment income............ (0.31) (0.58) (0.60) (0.62) (0.53)
From net realized gain on
investments.......................... -- -- -- (0.06) --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ---------- ---------- ---------- ---------------
Total distributions................. (0.31) (0.58) (0.60) (0.68) (0.53)
--------------- ---------- ---------- ---------- ---------------
Net asset value, end of period.......... $ 11.35 $ 11.41 $ 11.74 $ 10.79 $ 12.23
--------------- ---------- ---------- ---------- ---------------
--------------- ---------- ---------- ---------- ---------------
Total investment return (g) +.......... 2.24% 2.23% 14.73% (6.27)% 6.4%
--------------- ---------- ---------- ---------- ---------------
--------------- ---------- ---------- ---------- ---------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 5,587 $ 5,483 $ 5,992 $ 2,415 $ 974
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 5.63% 5.24% 5.43% 5.53% 5.3%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 4.87% 4.49% 3.87% 1.29% 3.4%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% (6.9)%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.00% 1.00% 1.00% 0.38% 0.0%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.76% 1.75% 2.56% 4.63% 1.9%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 12.3%
Portfolio turnover ++................... 149% 49% 186% 34% 81%
Average commission rate per share paid
on portfolio transactions.............. N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE GROWTH & INCOME FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.51 $ 14.57 $ 12.99 $ 13.77 $ 12.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... 0.23 0.53(b) 0.52(c) 0.46(d) 0.31(e)
Net realized and unrealized gain
(loss) on investments................ 1.20 1.81 1.46 (0.85) 1.79
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... 1.43 2.34 1.98 (0.39) 2.10
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.31) (0.35) (0.40) (0.39) (0.28)
From net realized gain on
investments.......................... (0.04) (0.05) -- -- (0.05)
In excess of net investment income.... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (0.35) (0.40) (0.40) (0.39) (0.33)
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 17.59 $ 16.51 $ 14.57 $ 12.99 $ 13.77
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... 8.71% 16.33% 15.49% (2.85)% 17.8%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 43,707 $ 36,433 $ 30,565 $ 25,580 $ 11,677
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 3.48% 3.58% 3.87% 3.69% 3.2%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 3.36% 3.48% 3.66% 3.45% 2.7%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 1.1%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.15% 1.20% 1.23% 1.25% 0.6%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.27% 1.30% 1.44% 1.49% 1.2%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 2.8%
Portfolio turnover ++................... 47% 57% 73% 53% 17%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0172 $ 0.0147 N/A N/A N/A
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE TELECOMMUNICATIONS FUND
----------------------------------------------------------------------------
OCTOBER 18, 1993
SIX MONTHS YEAR ENDED (COMMENCEMENT OF
ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 18.14 $ 16.87 $ 13.98 $ 13.07 $ 12.00
--------------- ----------- ----------- ----------- --------
Net investment income (loss).......... 0.02 (0.05) 0.02(c) 0.01(d) 0.04(e)
Net realized and unrealized gain
(loss) on investments................ 2.09 3.31 3.26 0.92 1.03
--------------- ----------- ----------- ----------- --------
Net increase (decrease) resulting
from operations.................... 2.11 3.26 3.28 0.93 1.07
--------------- ----------- ----------- ----------- --------
Distributions to shareholders:
From net investment income............ -- (0.02) (0.03) (0.02) --
From net realized gain on
investments.......................... (2.30) (1.97) (0.36) -- --
In excess of net investment income.... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- --------
Total distributions................. (2.30) (1.99) (0.39) (0.02) --
--------------- ----------- ----------- ----------- --------
Net asset value, end of period.......... $ 17.95 $ 18.14 $ 16.87 $ 13.98 $ 13.07
--------------- ----------- ----------- ----------- --------
--------------- ----------- ----------- ----------- --------
Total investment return (g) +.......... 11.72% 19.34% 23.66% 7.15% 8.9%
--------------- ----------- ----------- ----------- --------
--------------- ----------- ----------- ----------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 69,384 $ 63,258 $ 50,778 $ 36,029 $ 7,903
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.26% (0.26)% 0.16% 0.31% 2.5%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.20% (0.31)% 0.10% 0.07% 2.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 1.6%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.11% 1.12% 1.20% 1.25% 0.9%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.17% 1.17% 1.26% 1.49% 1.1%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 1.8%
Portfolio turnover ++................... 149% 77% 70% 81% 20%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0134 $ 0.0068 N/A N/A N/A
</TABLE>
- ------------------------
(e) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.03 for the Variable Strategic Income
Fund, $0.06 for the Variable Global Government Income Fund, $0.19 for
the Variable U.S. Government Income Fund, $0.02 for the Variable Latin
America Fund, $0.05 for the Variable Growth & Income Fund, and $0.00
for the Variable Telecommunications Fund (Note 2).
(f) During the period ended December 31, 1993, Chancellor LGT Asset
Management, Inc. voluntarily assumed certain expenses for the Funds
(Note 2).
(g) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of
these charges would reduce the total return figures for all periods
shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F71
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------
VARIABLE EMERGING MARKETS FUND
-------------------------------------------------------------
JULY 5, 1994
SIX MONTHS YEAR ENDED (COMMENCEMENT OF
ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 ------------------------ DECEMBER 31,
(UNAUDITED) 1996 1995 1994
--------------- ----------- ---------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 14.26 $ 10.88 $ 11.89 $ 12.00
--------------- ----------- ---------- --------
Net investment income (loss).......... 0.11(a) 0.11(b) 0.14(c) 0.07(d)
Net realized and unrealized gain
(loss) on investments................ 1.94 3.27 (1.04) (0.05)
--------------- ----------- ---------- --------
Net increase (decrease) resulting
from operations.................... 2.05 3.38 (0.90) 0.02
--------------- ----------- ---------- --------
Distributions to shareholders:
From net investment income............ (0.06) -- (0.09) (0.07)
From net realized gain on
investments.......................... (0.86) -- -- --
In excess of net realized gain on
investments.......................... -- -- -- (0.06)
Return of capital..................... -- -- (0.02) --
--------------- ----------- ---------- --------
Total distributions................. (0.92) -- (0.11) (0.13)
--------------- ----------- ---------- --------
Net asset value, end of period.......... $ 15.39 $ 14.26 $ 10.88 $ 11.89
--------------- ----------- ---------- --------
--------------- ----------- ---------- --------
Total investment return (g) +.......... 14.55% 31.07% (7.54)% 0.12%
--------------- ----------- ---------- --------
--------------- ----------- ---------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 23,168 $ 17,604 $ 8,983 $ 7,267
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.53% 0.89% 1.55% 4.10%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.33% 0.39% 0.51% (0.20)%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.24% 1.18% 1.18% 0.00%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.44% 1.68% 2.22% 4.30%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --%
Portfolio turnover ++................... 276% 216% 210% 117%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0011 $ 0.0021 N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE AMERICA FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 19.71 $ 19.46 $ 15.81 $ 13.75 $ 12.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... (0.02) (a) 0.12(b) 0.21(c) 0.48(d) 1.11(e)
Net realized and unrealized gain
(loss) on investments................ (0.26) 3.18 3.80 2.08 0.64
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... (0.28) 3.30 4.01 2.56 1.75
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.10) (0.30) (0.07) (0.50) --
From net realized gain on
investments.......................... (0.74) (2.75) (0.29) -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (0.84) (3.05) (0.36) (0.50) --
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 18.59 $ 19.71 $ 19.46 $ 15.81 $ 13.75
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... (1.49)% 18.55% 25.37% 18.88% 14.7%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 40,360 $ 41,647 $ 37,643 $ 15,257 $ 1,700
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ (0.28)% 0.52% 1.66% 1.83% 14.1%
Without reimbursement by Chancellor
LGT and expense reductions ++........ (0.35)% 0.46% 1.60% 0.76% 12.8%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 7.6%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.94% 0.95% 1.00% 0.98% 0.0%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.00% 1.01% 1.06% 2.05% 1.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 6.5%
Portfolio turnover ++................... 256% 248% 79% 139% 831%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0560 $ 0.0531 N/A N/A N/A
</TABLE>
- ------------------------
(a) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.01 for the Variable Emerging Markets
Fund, $0.00 for the Variable America Fund, $0.03 for the Variable
Infrastructure Fund, $0.02 for the Variable Natural Resources Fund,
$0.01 for the Variable New Pacific Fund, and $0.01 for the Variable
Europe Fund (Note 2).
(b) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.05 for the Variable Emerging Markets
Fund, $0.19 for the Variable Infrastructure Fund, $0.11 for the
Variable Natural Resources Fund, $0.04 for the Variable New Pacific
Fund, and $0.04 for the Variable Europe Fund (Note 2).
(c) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.09 for the Variable Emerging Markets
Fund, $0.42 for the Variable Infrastructure Fund, $0.47 for the
Variable Natural Resources Fund, $0.01 for the Variable America Fund,
$0.04 for the Variable New Pacific Fund, and $0.08 for the Variable
Europe Fund (Note 2).
(d) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.07 for the Variable Emerging Markets
Fund, $0.28 for the Variable America Fund, $0.03 for the Variable New
Pacific Fund, and $0.04 for the Variable Europe Fund (Note 2).
The accompanying notes are an integral part of the financial statements.
F72
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------
VARIABLE INFRASTRUCTURE FUND
----------------------------------------------------
JANUARY 31, 1995
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS) TO
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995
--------------- --------------- ----------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 16.47 $ 13.27 $ 12.00
--------------- --------------- ----------------
Net investment income (loss).......... 0.07(a) 0.11(b) 0.07(c)
Net realized and unrealized gain
(loss) on investments................ 1.27 3.19 1.20
--------------- --------------- ----------------
Net increase (decrease) resulting
from operations.................... 1.34 3.30 1.27
--------------- --------------- ----------------
Distributions to shareholders:
From net investment income............ (0.10) (0.03) --
From net realized gain on
investments.......................... (0.88) (0.07) --
In excess of net realized gain on
investments.......................... -- -- --
Return of capital..................... -- -- --
--------------- --------------- ----------------
Total distributions................. (0.98) (0.10) --
--------------- --------------- ----------------
Net asset value, end of period.......... $ 16.83 $ 16.47 $ 13.27
--------------- --------------- ----------------
--------------- --------------- ----------------
Total investment return (g) +.......... 8.08% 24.88% 10.58%
--------------- --------------- ----------------
--------------- --------------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 8,759 $ 6,054 $ 1,594
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.36% 1.35% 1.24%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.86% 0.03% (6.11)%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.18% 1.21% 1.22%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.68% 2.53% 8.57%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --%
Portfolio turnover ++................... 28% 76% 38%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0058 $ 0.0101 N/A
<CAPTION>
GT GLOBAL
----------------------------------------------------
VARIABLE NATURAL RESOURCES FUND
----------------------------------------------------
JANUARY 31, 1995
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS) TO
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995
--------------- --------------- ----------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 20.98 $ 13.88 $ 12.00
--------------- --------------- ----------------
Net investment income (loss).......... (0.02) (a) (0.06) (b) 0.73(c)
Net realized and unrealized gain
(loss) on investments................ (2.15) 7.16 1.91
--------------- --------------- ----------------
Net increase (decrease) resulting
from operations.................... (2.17) 7.10 2.64
--------------- --------------- ----------------
Distributions to shareholders:
From net investment income............ -- -- (0.71)
From net realized gain on
investments.......................... (0.89) -- --
In excess of net realized gain on
investments.......................... -- -- (0.05)
Return of capital..................... -- -- --
--------------- --------------- ----------------
Total distributions................. (0.89) -- (0.76)
--------------- --------------- ----------------
Net asset value, end of period.......... $ 17.92 $ 20.98 $ 13.88
--------------- --------------- ----------------
--------------- --------------- ----------------
Total investment return (g) +.......... (10.35)% 51.15% 22.20%
--------------- --------------- ----------------
--------------- --------------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 14,865 $ 16,308 $ 1,365
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ (0.58)% (0.60)% 10.87%
Without reimbursement by Chancellor
LGT and expense reductions ++........ (0.26)% (1.30)% 2.94%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.21% 1.19% 1.14%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.53% 1.89% 9.07%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --%
Portfolio turnover ++................... 410% 199% 875%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0108 $ 0.0164 N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE NEW PACIFIC FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 18.02 $ 13.92 $ 14.01 $ 16.07 $ 12.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... 0.11(a) 0.13(b) 0.20(c) 0.08(d) 0.04(e)
Net realized and unrealized gain
(loss) on investments................ (0.37) 4.16 (0.23) (2.08) 4.03
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... (0.26) 4.29 (0.03) (2.00) 4.07
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.09) (0.19) (0.06) (0.06) --
From net realized gain on
investments.......................... (0.08) -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (0.17) (0.19) (0.06) (0.06) --
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 17.59 $ 18.02 $ 13.92 $ 14.01 $ 16.07
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... (1.50)% 30.97% (0.21)% (12.47)% 33.9%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 29,831 $ 32,670 $ 23,025 $ 19,391 $ 7,945
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.13% 0.88% 1.27% 0.83% 0.9%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.86% 0.60% 1.74% 0.48% 0.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% (2.0)%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.13% 1.12% 1.14% 1.25% 0.6%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.40% 1.40% 1.61% 1.60% 1.3%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 3.6%
Portfolio turnover ++................... 80% 70% 67% 30% 15%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0062 $ 0.0071 N/A N/A N/A
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
VARIABLE EUROPE FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 21.34 $ 16.52 $ 15.22 $ 15.33 $ 12.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... 0.08(a) 0.05(b) 0.18(c) 0.16(d) 0.05(e)
Net realized and unrealized gain
(loss) on investments................ 2.28 4.93 1.28 (0.25) 3.28
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... 2.36 4.98 1.46 (0.09) 3.33
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.06) (0.16) (0.16) -- --
From net realized gain on
investments.......................... (1.92) -- -- (0.02) --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (1.98) (0.16) (0.16) (0.02) --
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 21.72 $ 21.34 $ 16.52 $ 15.22 $ 15.33
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... 11.05% 30.25% 9.66% (0.59)% 27.8%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 28,781 $ 24,537 $ 15,641 $ 15,020 $ 5,410
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.79% 0.36% 1.12% 1.48% 1.1%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.54% 0.09% 0.60% 1.07% 0.4%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% (2.8)%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.16% 1.20% 1.20% 1.25% 0.7%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 1.41% 1.47% 1.72% 1.66% 1.4%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 4.6%
Portfolio turnover ++................... 99% 56% 123% 61% 27%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0681 $ 0.0313 N/A N/A N/A
</TABLE>
- ------------------------
(e) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.10 for the Variable America Fund, $0.03
for the Variable New Pacific Fund, and $0.03 for the Variable Europe
Fund (Note 2).
(f) During the period ended December 31, 1993, Chancellor LGT Asset
Management, Inc. voluntarily assumed certain expenses for the Funds
(Note 2).
(g) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of
these charges would reduce the total return figures for all periods
shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F73
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
FINANCIAL HIGHLIGHTS (cont'd)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share outstanding
throughout the period, total investment return, ratios and supplemental data.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
GT GLOBAL
----------------------------------------------------------------------------
MONEY MARKET FUND
----------------------------------------------------------------------------
FEBRUARY 10,
1993
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1996 1995 1994 1993
--------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- ----------- ----------- ----------- ----------------
Net investment income (loss).......... 0.02(a) 0.05(b) 0.05(c) 0.03(d) 0.03(e)
Net realized and unrealized gain
(loss) on investments................ -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Net increase (decrease) resulting
from operations.................... 0.02 0.05 0.05 0.03 0.03
--------------- ----------- ----------- ----------- ----------------
Distributions to shareholders:
From net investment income............ (0.02) (0.05) (0.05) (0.03) (0.03)
From net realized gain on
investments.......................... -- -- -- -- --
In excess of net realized gain on
investments.......................... -- -- -- -- --
Return of capital..................... -- -- -- -- --
--------------- ----------- ----------- ----------- ----------------
Total distributions................. (0.02) (0.05) (0.05) (0.03) (0.03)
--------------- ----------- ----------- ----------- ----------------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Total investment return (g) +.......... 2.34% 4.75% 5.26% 3.48% 2.6%
--------------- ----------- ----------- ----------- ----------------
--------------- ----------- ----------- ----------- ----------------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 20,467 $ 19,794 $ 14,891 $ 19,474 $ 3,775
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 4.68% 4.67% 5.15% 3.70% 2.9%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 4.63% 4.57% 4.85% 3.64% 2.1%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% (2.6)%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 0.75% 0.75% 0.75% 0.75% 0.2%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.80% 0.85% 1.05% 0.81% 1.0%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --% 5.7%
Portfolio turnover ++................... N/A N/A N/A N/A N/A
Average commission rate per share paid
on portfolio transactions.............. N/A N/A N/A N/A N/A
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GT GLOBAL
-------------------------------------------------------------
VARIABLE INTERNATIONAL FUND
-------------------------------------------------------------
JULY 5, 1994
SIX MONTHS YEAR ENDED (COMMENCEMENT OF
ENDED DECEMBER 31, OPERATIONS) TO
JUNE 30, 1997 ------------------------ DECEMBER 31,
(UNAUDITED) 1996 1995 1994
--------------- ----------- ---------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 11.91 $ 11.01 $ 11.25 $ 12.00
--------------- ----------- ---------- --------
Net investment income (loss).......... 0.09(a) 0.05(b) 0.09(c) 0.06(d)
Net realized and unrealized gain
(loss) on investments................ 0.88 0.89 (0.22) (0.76)
--------------- ----------- ---------- --------
Net increase (decrease) resulting
from operations.................... 0.97 0.94 (0.13) (0.70)
--------------- ----------- ---------- --------
Distributions to shareholders:
From net investment income............ (0.02) -- (0.09) (0.05)
From net realized gain on
investments.......................... -- (0.04) (0.02) --
In excess of net realized gain on
investments.......................... -- -- -- --
Return of capital..................... -- -- -- --
--------------- ----------- ---------- --------
Total distributions................. (0.02) (0.04) (0.11) (0.05)
--------------- ----------- ---------- --------
Net asset value, end of period.......... $ 12.86 $ 11.91 $ 11.01 $ 11.25
--------------- ----------- ---------- --------
--------------- ----------- ---------- --------
Total investment return (g) +.......... 8.11% 8.52% (1.14)% (5.81)%
--------------- ----------- ---------- --------
--------------- ----------- ---------- --------
Ratios and supplemental data:
Net assets, end of period (in 000's).... $ 6,048 $ 4,782 $ 3,663 $ 2,229
Ratio of net investment income (loss) to
average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.63% 0.48% 0.93% 3.33%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 0.44% (0.86)% (1.35)% (2.56)%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --%
Ratio of expenses to average net assets:
With reimbursement by Chancellor LGT
and expense reductions (Notes 1, 2, &
5) ++................................ 1.17% 1.15% 1.25% 0.69%
Without reimbursement by Chancellor
LGT and expense reductions ++........ 2.36% 2.49% 3.53% 6.58%
Without expenses assumed by Chancellor
LGT (f) ++.......................... --% --% --% --%
Portfolio turnover ++................... 129% 92% 107% 17%
Average commission rate per share paid
on portfolio transactions.............. $ 0.0185 $ 0.0156 N/A N/A
</TABLE>
- ------------------------
(a) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.00 for the Money Market Fund and $0.06
for the Variable International Fund (Note 2).
(b) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.00 for the Money Market Fund and $0.14
for the Variable International Fund (Note 2).
(c) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.00 for the Money Market Fund and $0.22
for the Variable International Fund (Note 2).
(d) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.00 for the Money Market Fund and $0.11
for the Variable International Fund (Note 2).
(e) Includes reimbursement by Chancellor LGT Asset Management, Inc. of
Fund operating expenses of $0.01 for the Money Market Fund (Note 2).
(f) During the period ended December 31, 1993, Chancellor LGT Asset
Management, Inc. voluntarily assumed certain expenses for the Funds
(Note 2).
(g) Total return information does not reflect expenses that apply to the
Separate Accounts or the related insurance contracts, and inclusion of
these charges would reduce the total return figures for all periods
shown.
+ Not annualized for periods of less than one year.
++ Annualized for periods of less than one year.
N/A Not applicable.
The accompanying notes are an integral part of the financial statements.
F74
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
GT Global Variable Investment Series and GT Global Variable Investment Trust
("Companies") were organized as Massachusetts business trusts on May 26, 1992
and September 17, 1992, respectively. The Companies are registered under the
Investment Company Act of 1940, as amended ("1940 Act"), as open-end management
investment companies. The GT Global Variable Investment Series operates as a
series company currently issuing five classes of shares of beneficial interest:
GT Global Variable New Pacific Fund, GT Global Variable Europe Fund, GT Global
Variable America Fund, GT Global Variable International Fund and GT Global Money
Market Fund. GT Global Variable Investment Trust operates as a series company
currently issuing nine classes of shares of beneficial interest: GT Global
Variable Latin America Fund, GT Global Variable Growth & Income Fund, GT Global
Variable Strategic Income Fund, GT Global Variable Global Government Income
Fund, GT Global Variable U.S. Government Income Fund, GT Global Variable
Emerging Markets Fund, GT Global Variable Telecommunications Fund, GT Global
Variable Infrastructure Fund, and GT Global Variable Natural Resources Fund.
(The classes of shares of beneficial interest for the two companies are referred
to herein collectively as the "Funds".) Each of the Funds is classified as a
diversified management investment company, except for GT Global Variable Latin
America Fund, GT Global Variable Growth & Income Fund, GT Global Variable
Strategic Income Fund and GT Global Variable Global Government Income Fund,
which are each registered as a non-diversified management investment company
under the 1940 Act.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles, and
the financial statements may include certain estimates made by management.
(A) PORTFOLIO VALUATION
The Funds calculate the net asset value of and complete orders to purchase,
exchange or repurchase Fund shares on each business day, with the exception of
those days on which the New York Stock Exchange is closed.
Equity securities are valued at the last sale price on the exchange on which
such securities are traded, or on the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are valued on the exchange determined by 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, each of
the Companies' Board of Trustees.
Portfolio securities which are primarily traded on foreign exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, and those values are then translated into U.S. dollars at
the current exchange rates, except that when an occurrence subsequent to the
time a value was so established is likely to have materially changed such value,
then the fair value of those securities will be determined by consideration of
other factors by, or under the direction of, the Companies' Board of Trustees.
(B) FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. The market
values of foreign securities, currency holdings, and other assets and
liabilities are recorded in the books and records of the Funds after translation
to U.S. dollars based on the exchange rates on that day. The cost of each
security is determined using historical exchange rates. Income and withholding
taxes are translated at prevailing exchange rates when earned or incurred.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains and losses arise from sales and
maturities of short-term securities, forward foreign currency contracts, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Funds' books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end, resulting from changes in exchange rates.
(C) REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Funds, it is the
Funds' policy to always receive, as collateral, United States government
securities or other high quality debt securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Funds
under each agreement at its maturity.
F75
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(D) FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward Contract") is an agreement between
two parties to buy and sell a currency at a set price on a future date. The
market value of the Forward Contract fluctuates with changes in currency
exchange rates. The Forward Contract is marked-to-market daily and the change in
market value is recorded by the Funds as an unrealized gain or loss. When the
Forward Contract is closed, the Funds record a realized gain or loss equal to
the difference between the value at the time it was opened and the value at the
time it was closed. Forward Contracts involve market risk in excess of the
amounts shown in the Funds' "Statements of Assets and Liabilities." The Funds
could be exposed to risk if the counterparties are unable to meet the terms of
the contracts or if the value of the currency changes unfavorably. The Funds may
enter into Forward Contracts in connection with planned purchases or sales of
securities or to hedge against adverse fluctuations in exchange rates between
currencies.
(E) OPTION ACCOUNTING PRINCIPLES
When a Fund writes a call or put option, an amount equal to the premium received
is included in the Fund's "Statements of Assets and Liabilities" as an asset and
an equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. The current
market value of an option listed on a traded exchange is valued at its last bid
price, or, in the case of an over-the-counter option, is valued at the average
of the last bid prices obtained from brokers, unless a quotation from only one
broker is available, in which case only that broker's price will be used. If an
option expires on its stipulated expiration date or if a Fund enters into a
closing purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related to
such option is extinguished. If a written call option is exercised, a gain or
loss is realized from the sale of the underlying security and the proceeds of
the sale are increased by the premium originally received. If a written put
option is exercised, the cost of the underlying security purchased would be
decreased by the premium received. A Fund can write options only on a covered
basis, which, for a call, requires that the Fund hold the underlying securities
and, for a put, requires the Fund to set aside cash, U.S. government securities
or other liquid securities in an amount not less than the exercise price or
otherwise provide adequate cover at all times while the put option is
outstanding. The Funds may use options to manage their exposure to the stock or
bond markets and to fluctuations in currency values or interest rates.
The premium paid by a Fund for the purchase of a call or put option is included
in the Fund's "Statement of Assets and Liabilities" as an investment and
subsequently "marked-to-market" to reflect the current market value of the
option. If an option which a Fund has purchased expires on the stipulated
expiration date, the Fund would realize a loss in the amount of the cost of the
option. If a Fund enters into a closing sale transaction, the Fund would realize
a gain or loss, depending on whether proceeds from the closing sale transaction
are greater or less than the cost of the option. If the Fund exercises a call
option, the cost of the securities acquired by exercising the call is increased
by the premium paid to buy the call. If the Fund exercises a put option, it
realizes a gain or loss from the sale of the underlying security, and the
proceeds from such sale are decreased by the premium originally paid.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
(F) FUTURES CONTRACTS
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. Upon entering into such a contract a
Fund is required to pledge to the broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value of
the contract. Such receipts or payments are known as "variation margin" and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
underlying securities may not correlate to the change in value of the contracts.
A Fund may use futures contracts to manage its exposure to the stock or bond
markets and to fluctuations in currency values or interest rates.
(G) SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on a first-in,
first-out basis, unless otherwise specified. Dividends are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Where a high
level of uncertainty exists as to the collection of withholding tax rebate,
income is recorded net of all withholding tax with any rebate recorded when
received. A Fund may trade securities on other than normal settlement terms.
This may increase the risk if the other party to the transaction fails to
deliver and causes the Fund to subsequently invest at less advantageous prices.
(H) DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded by each Fund on the ex-date. For the
Money Market Fund, dividends are declared daily and paid monthly from net
investment income. The Variable Strategic Income Fund, Variable Global
Government Income Fund and Variable U.S. Government Income Fund declare and pay
dividends from net investment income, if any, monthly. The Variable Growth &
Income Fund declares and pays dividends from net investment income, if any,
quarterly. The Variable Latin America Fund, Variable Telecommunications Fund,
Variable New Pacific Fund, Variable Europe
F76
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
Fund, Variable Emerging Markets Fund, Variable International Fund, Variable
America Fund, Variable Infrastructure Fund, and Variable Natural Resources Fund
declare and pay dividends from net investment income, if any, annually. With
respect to each Fund, dividends from net realized capital gains, if any, are
normally declared and paid annually.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund and timing
differences.
(I) TAXES
It is the policy of the Funds to continue to meet the requirements for
qualification as a "regulated investment company" under the Internal Revenue
Code of 1986, as amended ("Code"). It is also the intention of the Funds to make
distributions sufficient to avoid imposition of any excise tax under Section
4982 of the Code. Therefore, no provision has been made for Federal taxes on
income, capital gains, or unrealized appreciation of securities held, or for
excise tax on income and capital gains. The following funds have capital loss
carryforwards.
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES IN
GT GLOBAL FUNDS CARRYFORWARD YEAR
- ------------------------------------------------------------ ------------ ----------
<S> <C> <C>
Variable Strategic Income................................... $1,392,386 2002
820,482 2003
Variable Global Government Income........................... 1,139,600 2002
Variable Latin America...................................... 3,544,129 2003
Variable Growth and Income.................................. 924,355 2003
Variable New Pacific........................................ 562,115 2003
Variable International...................................... 77,169 2003
</TABLE>
(J) DEFERRED ORGANIZATIONAL EXPENSES
Costs incurred by GT Global Variable Investment Series and Trust in connection
with their organization, which aggregated $125,333 and $188,000, respectively,
are being amortized on a straight-line basis for a five year period. While the
Manager has advanced certain of the Companies' organizational costs incurred to
date, the Companies may reimburse the Manager for the amount of these advances.
In the event that the Manager redeems any of the initial 2,083.333 shares of
each of the Variable New Pacific Fund, Variable Europe Fund and Variable America
Fund; or the initial 25,000 shares of Money Market Fund; or the initial
1,666.667 shares of each of the Variable Strategic Income Fund, Variable Global
Government Income Fund, Variable U.S. Government Income Fund, Variable Latin
America Fund and the Variable Growth & Income Fund; or the initial 1.000 share
of the Variable Telecommunications Fund, within the five year amortization
period, the respective Fund's unamortized organizational expenses allocable to
the shares redeemed will be deducted from the Manager's redemption proceeds.
(K) FOREIGN SECURITIES
There are certain additional considerations and risks associated with investing
in foreign securities and currency transactions that are not inherent in
investments of domestic origin. The Funds' investments in emerging market
countries may involve greater risks than investments in more developed markets
and the prices of such investments may be volatile. These risks of investing in
foreign and emerging markets may include foreign currency exchange rate
fluctuations, perceived credit risk, adverse political and economic developments
and possible adverse foreign government intervention.
(L) INDEXED SECURITIES
The Funds may invest in indexed securities whose value is linked either directly
or indirectly to changes in foreign currencies, interest rates, equities,
indices, or other reference instruments. Indexed securities may be more volatile
than the reference instrument itself, but any loss is limited to the amount of
the original investment.
(M) RESTRICTED SECURITIES
Certain of the Funds are permitted to invest in a limited amount of privately
placed restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the end of
the year, restricted securities (excluding 144A issues) are shown at the end of
the Portfolio of Investments for each Fund, if any.
(N) SECURITIES PURCHASED ON A WHEN-ISSUED OR FORWARD COMMITMENT BASIS
A Fund may trade securities on a when-issued or forward commitment basis, with
payment and delivery scheduled for a future date. These transactions are subject
to market fluctuations and are subject to the risk that the value at delivery
may be less than the trade date purchase price. Although the Fund will generally
purchase these securities with the intention of acquiring such securities, they
may sell such securities before the settlement date. These securities, if any,
are identified on the accompanying Portfolio of Investments. The Variable
Strategic Income Fund has set aside sufficient cash or liquid high grade debt
securities as collateral for these purchase commitments.
F77
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
(O) PORTFOLIO SECURITIES LOANED
At June 30, 1997, stocks with an aggregate value listed below were on loan to
brokers. The loans were secured by cash collateral received by the Fund:
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30,
JUNE 30, 1997 1997
---------------------------- --------
AGGREGATE VALUE CASH FEES
GT GLOBAL ON LOAN COLLATERAL RECEIVED
- ------------------------------------------------------------ --------------- ---------- --------
<S> <C> <C> <C>
Variable Strategic Income Fund.............................. $1,615,919 $1,768,122 $ 5,637
Variable Global Government Income Fund...................... 514,801 577,500 4,243
Variable U.S. Government Income Fund........................ -- -- --
Variable Latin America Fund................................. 1,478,482 1,538,024 2,279
Variable Growth & Income Fund............................... 4,315,113 4,564,790 16,382
Variable Telecommunications Fund............................ 4,833,487 5,063,858 17,780
Variable Emerging Markets Fund.............................. 335,314 348,170 5,411
Variable Infrastructure Fund................................ 664,249 796,600 2,888
Variable Natural Resources Fund............................. 55,219 55,800 2,156
Variable America Fund....................................... 4,912,169 5,127,900 10,454
Variable New Pacific Fund................................... 1,786,394 1,875,602 16,796
Variable Europe Fund........................................ 2,902,660 3,110,868 10,308
Money Market Fund........................................... -- -- --
Variable International Fund................................. 503,682 532,480 1,581
</TABLE>
For international securities, cash collateral is received by the Funds against
loaned securities in an amount at least equal to 105% of the market value of the
loaned securities at the inception of each loan. This collateral must be
maintained at not less than 103% of the market value of the loaned securities
during the period of the loan. For domestic securities, cash collateral is
received by the Funds against loaned securities in an amount at least equal to
102% of the market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market value of
the loaned securities during the period of the loan. Fees received from
securities loaned were used to reduce the Funds' custodian and administrative
expenses.
(P) LINE OF CREDIT
Certain Funds have a line of credit with BankBoston and State Street Bank. The
arrangements with the banks allow the Funds to borrow an aggregate maximum
amount of $200,000,000. The Funds are limited to borrowing up to 33 1/3% of the
value of the Fund's total assets.
For the period ended June 30, 1997, the weighted average outstanding daily
balance of bank loans for the Variable Emerging Markets Fund, Variable America
Fund and Variable Europe Fund (based on the number of days the loans were
outstanding) was $737,500, $68,167 and $931,125, respectively, with a weighted
average interest rate of 6.23%, 6.21% and 6.27%, respectively. Interest expense
for the Variable Europe Fund for the period ended June 30, 1997, was $1,297,
included in "Other expenses" on the Statement of Operations.
2. RELATED PARTIES
Chancellor LGT Asset Management, Inc. is the Fund's investment manager and
administrator. The Money Market Fund pays the Manager an investment management
and administration fee at the annualized rate of 0.50% of that Fund's average
daily net assets. The Variable Strategic Income Fund, Variable Global Government
Income Fund, Variable U.S. Government Income Fund and Variable America Fund each
pays the Manager an investment management and administration fee at the
annualized rate of 0.75% of the Fund's average daily net assets. The Variable
Growth & Income Fund, Variable Latin America Fund, Variable Telecommunications
Fund, Variable New Pacific Fund, Variable Emerging Markets Fund, Variable
International Fund, Variable Europe Fund, Variable Infrastructure Fund, and
Variable Natural Resources Fund each pays the Manager an investment management
and administration fee at the annualized rate of 1.00% of its average daily net
assets. All fees are computed daily and paid monthly.
The Manager has undertaken to limit the total operating expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary items) of each of the
Variable New Pacific Fund, Variable Europe Fund, Variable Latin America Fund,
Variable Telecommunications Fund, Variable Emerging Markets Fund, Variable
International Fund, Variable Infrastructure Fund, Variable Natural Resources
Fund, and the Variable Growth & Income Fund to 1.25% of their respective average
daily net assets. In addition, the Manager has undertaken to limit the total
operating expenses (exclusive of brokerage commissions, interest, taxes and
extraordinary items) of each of the Variable Strategic Income Fund, the Variable
Global Government Income Fund, the Variable U.S. Government Income Fund, and the
Variable America Fund to 1.00% of their respective average daily net assets.
Likewise, the Manager has undertaken to limit the total operating expenses
(exclusive of brokerage commissions, interest, taxes and extraordinary items) of
the Money Market Fund to 0.75% of its average daily net assets. From time to
time, the Manager in its sole discretion may waive its fees and/or voluntarily
assume certain Fund expenses.
All general expenses of the Companies and joint expenses of the Funds are
allocated among the Funds on a basis deemed fair and equitable.
GT Global, Inc., ("GT Global") an affiliate of the Manager, is the Funds'
distributor. GT Global Investor Services, Inc. ("GT Services"), an affiliate of
the Manager and GT Global, is the Funds' transfer agent.
F78
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
GT Global is the principal underwriter of the Variable Annuity Contracts.
Underwriting commissions retained by GT Global are as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
GT GLOBAL JUNE 30, 1997
- ------------------------------------------------------------ -----------------
<S> <C>
Variable Strategic Income Fund.............................. $ 7,143
Variable Global Government Income Fund...................... 2,368
Variable U.S. Government Income Fund........................ 2,914
Variable Latin America Fund................................. 7,773
Variable Growth & Income Fund............................... 10,662
Variable Telecommunications Fund............................ 19,170
Variable Emerging Markets Fund.............................. 9,871
Variable Infrastructure Fund................................ 9,761
Variable Natural Resources Fund............................. 16,613
Variable America Fund....................................... 7,672
Variable New Pacific Fund................................... 10,567
Variable Europe Fund........................................ 9,563
Money Market Fund........................................... 31,500
Variable International Fund................................. 2,298
</TABLE>
The Manager is the pricing and accounting agent for the Funds. The monthly fee
for these services to the Manager is a percentage, not to exceed 0.03% annually,
of each of the Funds' average daily net assets. The annual fee rate is derived
by applying 0.03% to the first $5 billion of assets of all registered mutual
funds advised by the Manager and 0.02% to the assets in excess of $5 billion and
allocating the result according to each Fund's average daily net assets.
The Companies pay each of their Trustees who is not an employee, officer or
director of the Manager, GT Global or GT Services $5,000 per year.
3. PURCHASES AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund, for the period ended June 30, 1997:
PURCHASES AND SALES OF SECURITIES
<TABLE>
<CAPTION>
PURCHASES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $ 300,180 $ 22,253,679
Variable Global Government Income Fund...................... 1,668,209 9,680,500
Variable U.S. Government Income Fund........................ 3,790,983 64,860
Variable Latin America Fund................................. -- 29,971,295
Variable Growth & Income Fund............................... 172,053 12,341,318
Variable Telecommunications Fund............................ -- 43,740,657
Variable Emerging Markets Fund.............................. -- 33,065,928
Variable Infrastructure Fund................................ -- 1,806,611
Variable Natural Resources Fund............................. -- 30,492,962
Variable America Fund....................................... -- 49,078,383
Variable New Pacific Fund................................... -- 11,438,765
Variable Europe Fund........................................ -- 14,313,082
Money Market Fund........................................... -- --
Variable International Fund................................. -- 2,853,388
<CAPTION>
SALES
------------------------------
GT GLOBAL U.S. GOVERNMENT OTHER ISSUES
- ------------------------------------------------------------ --------------- ------------
<S> <C> <C>
Variable Strategic Income Fund.............................. $ -- $ 23,319,431
Variable Global Government Income Fund...................... 1,507,978 9,654,670
Variable U.S. Government Income Fund........................ 2,928,533 813,306
Variable Latin America Fund................................. -- 21,741,640
Variable Growth & Income Fund............................... -- 8,364,585
Variable Telecommunications Fund............................ -- 50,237,484
Variable Emerging Markets Fund.............................. -- 27,785,837
Variable Infrastructure Fund................................ -- 847,553
Variable Natural Resources Fund............................. -- 27,716,484
Variable America Fund....................................... -- 46,397,750
Variable New Pacific Fund................................... -- 13,854,460
Variable Europe Fund........................................ -- 12,712,250
Money Market Fund........................................... -- --
Variable International Fund................................. -- 3,040,616
</TABLE>
F79
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
4. CAPITAL SHARES
At June 30, 1997, there were an unlimited number of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
------------------------------- --------------------------------
GT GLOBAL VARIABLE STRATEGIC INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,344,831 $ 17,952,797 3,455,994 $ 43,161,383
Shares issued in connection with reinvestment of
distributions............................................. 75,403 1,003,123 161,635 2,004,763
-------------- --------------- --------------- ---------------
1,420,234 18,955,920 3,617,629 45,166,146
Shares repurchased.......................................... (1,505,631) (20,132,796) (3,384,466) (42,069,061)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (85,397) $ (1,176,876) 233,163 $ 3,097,085
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GLOBAL GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 202,939 $ 2,247,454 595,260 $ 6,669,492
Shares issued in connection with reinvestment of
distributions............................................. 27,957 309,026 63,372 706,122
-------------- --------------- --------------- ---------------
230,896 2,556,480 658,632 7,375,614
Shares repurchased.......................................... (284,193) (3,149,492) (787,028) (8,839,632)
-------------- --------------- --------------- ---------------
Net decrease................................................ (53,297) $ (593,012) (128,396) $ (1,464,018)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE U.S. GOVERNMENT INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 140,919 $ 1,590,068 333,844 $ 3,803,016
Shares issued in connection with reinvestment of
distributions............................................. 12,781 144,341 23,060 262,014
-------------- --------------- --------------- ---------------
153,700 1,734,409 356,904 4,065,030
Shares repurchased.......................................... (141,948) (1,609,323) (386,658) (4,430,300)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 11,752 $ 125,086 (29,754) $ (365,270)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE LATIN AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,645,564 $ 27,090,904 2,062,574 $ 28,548,855
Shares issued in connection with reinvestment of
distributions............................................. -- -- 45,515 624,926
-------------- --------------- --------------- ---------------
1,645,564 27,090,904 2,108,089 29,173,781
Shares repurchased.......................................... (1,208,712) (19,884,466) (2,151,334) (29,883,182)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... 436,852 $ 7,206,438 (43,245) $ (709,401)
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE GROWTH & INCOME FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,765,851 $ 30,085,479 1,910,536 $ 29,111,115
Shares issued in connection with reinvestment of
distributions............................................. 51,026 881,987 55,274 839,489
-------------- --------------- --------------- ---------------
1,816,877 30,967,466 1,965,810 29,950,604
Shares repurchased.......................................... (1,537,808) (26,186,365) (1,857,484) (28,213,931)
-------------- --------------- --------------- ---------------
Net increase................................................ 279,069 $ 4,781,101 108,326 $ 1,736,673
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE TELECOMMUNICATIONS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,403,645 $ 26,244,853 2,031,581 $ 37,384,916
Shares issued in connection with reinvestment of
distributions............................................. 433,424 7,753,957 354,065 6,443,990
-------------- --------------- --------------- ---------------
1,837,069 33,998,810 2,385,646 43,828,906
Shares repurchased.......................................... (1,460,225) (27,349,957) (1,908,080) (34,595,566)
-------------- --------------- --------------- ---------------
Net increase................................................ 376,844 $ 6,648,853 477,566 $ 9,233,340
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EMERGING MARKETS FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 2,644,115 $ 40,209,690 2,518,560 $ 32,771,217
Shares issued in connection with reinvestment of
distributions............................................. 86,040 1,325,691 -- --
-------------- --------------- --------------- ---------------
2,730,155 41,535,381 2,518,560 32,771,217
Shares repurchased.......................................... (2,459,465) (37,745,518) (2,109,935) (27,696,344)
-------------- --------------- --------------- ---------------
Net increase................................................ 270,690 $ 3,789,863 408,625 $ 5,074,873
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F80
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
------------------------------- --------------------------------
GT GLOBAL VARIABLE INFRASTRUCTURE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
Shares sold................................................. 222,673 $ 3,757,483 469,810 $ 7,225,756
<S> <C> <C> <C> <C>
Shares issued in connection with reinvestment of
distributions............................................. 28,498 479,059 1,715 26,769
-------------- --------------- --------------- ---------------
251,171 4,236,542 471,525 7,252,525
Shares repurchased.......................................... (98,306) (1,661,165) (224,095) (3,457,346)
-------------- --------------- --------------- ---------------
Net increase................................................ 152,865 $ 2,575,377 247,430 $ 3,795,179
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NATURAL RESOURCES FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 674,270 $ 13,215,261 1,819,670 $ 33,416,057
Shares issued in connection with reinvestment of
distributions............................................. 41,031 727,484 -- --
-------------- --------------- --------------- ---------------
715,301 13,942,745 1,819,670 33,416,057
Shares repurchased.......................................... (662,878) (12,787,169) (1,140,721) (20,919,006)
-------------- --------------- --------------- ---------------
Net increase................................................ 52,423 $ 1,155,576 678,949 $ 12,497,051
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE AMERICA FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,021,176 $ 19,306,447 2,859,324 $ 55,470,879
Shares issued in connection with reinvestment of
distributions............................................. 93,176 1,750,776 303,755 5,480,666
-------------- --------------- --------------- ---------------
1,114,352 21,057,223 3,163,079 60,951,545
Shares repurchased.......................................... (1,056,214) (19,976,818) (2,984,751) (57,915,239)
-------------- --------------- --------------- ---------------
Net increase................................................ 58,138 $ 1,080,405 178,328 $ 3,036,306
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE NEW PACIFIC FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 6,156,785 $ 108,817,519 10,835,385 $ 176,690,218
Shares issued in connection with reinvestment of
distributions............................................. 17,419 306,408 20,259 329,817
-------------- --------------- --------------- ---------------
6,174,204 109,123,927 10,855,644 177,020,035
Shares repurchased.......................................... (6,290,811) (111,723,104) (10,696,698) (175,737,852)
-------------- --------------- --------------- ---------------
Net increase (decrease)..................................... (116,607) $ (2,599,177) 158,946 $ 1,282,183
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE EUROPE FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 3,006,977 $ 66,535,537 4,041,258 $ 77,833,163
Shares issued in connection with reinvestment of
distributions............................................. 115,031 2,473,175 7,876 155,793
-------------- --------------- --------------- ---------------
3,122,008 69,008,712 4,049,134 77,988,956
Shares repurchased.......................................... (2,946,630) (65,324,299) (3,846,425) (74,160,899)
-------------- --------------- --------------- ---------------
Net increase................................................ 175,378 $ 3,684,413 202,709 $ 3,828,057
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL MONEY MARKET FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 243,441,289 $ 243,441,289 316,100,021 $ 316,100,051
Shares issued in connection with reinvestment of
distributions............................................. 457,981 457,981 708,413 708,413
-------------- --------------- --------------- ---------------
243,899,270 243,899,270 316,808,434 316,808,464
Shares repurchased.......................................... (243,226,382) (243,226,382) (311,904,996) (311,904,996)
-------------- --------------- --------------- ---------------
Net increase................................................ 672,888 $ 672,888 4,903,438 $ 4,903,468
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
<CAPTION>
GT GLOBAL VARIABLE INTERNATIONAL FUND SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------ -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................................................. 1,399,599 $ 17,098,652 804,796 $ 9,121,897
Shares issued in connection with reinvestment of
distributions............................................. 621 7,912 1,276 14,683
-------------- --------------- --------------- ---------------
1,400,220 17,106,564 806,072 9,136,580
Shares repurchased.......................................... (1,331,401) (16,306,889) (737,004) (8,376,359)
-------------- --------------- --------------- ---------------
Net increase................................................ 68,819 $ 799,675 69,068 $ 760,221
-------------- --------------- --------------- ---------------
-------------- --------------- --------------- ---------------
</TABLE>
F81
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
5. WRITTEN OPTIONS
The Variable Global Government Income Fund's written options contract activity
for the six months ended June 30, 1997, was as follows:
<TABLE>
<CAPTION>
UNDERLYING
PRINCIPAL
AMOUNT IN USD PREMIUMS
----------------- --------
<S> <C> <C>
Options outstanding at December 31, 1996........................................ -- $ --
Options written................................................................. 3,550,000 20,923
Options cancelled in closing purchase transactions.............................. -- --
Options expired prior to exercise............................................... (2,200,000) (16,035 )
Options exercised............................................................... -- --
----------------- --------
Options outstanding at June 30, 1997............................................ 1,350,000 $ 4,888
----------------- --------
----------------- --------
</TABLE>
6. EXPENSE REDUCTIONS
The Manager has directed certain portfolio trades to brokers who paid a portion
of the Funds' expenses. The Funds' expenses were reduced as follows under these
arrangements:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
GT GLOBAL JUNE 30, 1997
- ------------------------------------------------------------ -----------------
<S> <C>
Variable Strategic Income Fund.............................. $ --
Variable Global Government Income Fund...................... --
Variable U.S. Government Income Fund........................ --
Variable Latin America Fund................................. 177
Variable Growth & Income Fund............................... 2,742
Variable Telecommunications Fund............................ 1,675
Variable Emerging Markets Fund.............................. 1,600
Variable Infrastructure Fund................................ --
Variable Natural Resources Fund............................. 2,076
Variable America Fund....................................... 1,566
Variable New Pacific Fund................................... 3,323
Variable Europe Fund........................................ 3,940
Money Market Fund........................................... --
Variable International Fund................................. 487
</TABLE>
7. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES
Investments of 5% or more of an issuer's outstanding voting securities by a Fund
are defined in the Investment Company Act of 1940 as an affiliated company.
Investments in affiliated companies by GT Global Variable Latin America Fund at
June 30, 1997 amounted to $62,086 at value.
Transactions with affiliate companies are as follows:
<TABLE>
<CAPTION>
NET REALIZED
PURCHASES COST SALES COST GAIN (LOSS) DIVIDEND INCOME
-------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Industrias J B Duarte S.A. Preferred $ -- $ -- $ -- $ --
</TABLE>
F82
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
GT GLOBAL VARIABLE INVESTMENT FUNDS
NOTES
- --------------------------------------------------------------------------------
<PAGE>
[LOGO]
GT Global, Inc.
Fifty California Street
27th Floor
San Francisco, California
94111-4624
GT GLOBAL, INC., PRINCIPAL UNDERWRITER AND DISTRIBUTOR
Policy Form #60000531
GT GLOBAL ALLOCATOR
VASAR708010.M021
