GE LIFESTYLE FUNDS, N-30D, 1999-11-24

GE LIFESTYLE FUNDS
N-30D, 1999-11-24

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GE LIFESTYLE FUNDS
ANNUAL REPORT

CONSERVATIVE ALLOCATION FUND
MODERATE ALLOCATION FUND
AGGRESSIVE ALLOCATION FUND

September 30, 1999

[GE LOGO OMITTED]

WE BRING GOOD THINGS TO LIFE.
<PAGE>
GE LIFESTYLE FUNDS
- --------------------------------------------------------------------------------

UNDERSTANDING YOUR REPORT
- --------------------------------------------------------------------------------

A LETTER FROM THE PRESIDENT ............................................... 1

PERFORMANCE SUMMARY

CONSERVATIVE ALLOCATION FUND ......................................... 3

MODERATE ALLOCATION FUND ............................................. 4

AGGRESSIVE ALLOCATION FUND ........................................... 5

PORTFOLIO MANAGER'S BIOGRAPHY ........................................ 6

NOTES TO PERFORMANCE ................................................. 6

FINANCIAL STATEMENTS
Financial Highlights ................................................. 7
Statements of Net Assets, Operations,
and Changes in Net Assets ......................................... 8

NOTES
Notes to Financial Statements ........................................13

REPORT OF INDEPENDENT ACCOUNTANTS .........................................15

GE LIFESTYLE FUNDS'
INVESTMENT TEAM ............................................INSIDE BACK COVER

This report has been prepared for the shareholders of the GE LifeStyle Funds. It
is not authorized for use as an offer of sale or a solicitation of an offer to
buy the GE LifeStyle Funds unless accompanied or preceded by the current
prospectus of the GE LifeStyle Funds and the current prospectus of the
underlying GE Funds.

<PAGE>

A LETTER FROM THE PRESIDENT
- --------------------------------------------------------------------------------

DEAR SHAREHOLDER:
We are pleased to provide you with the 1999 GE Lifestyle Funds Annual Report.

MARKET REVIEW

For the past six months the U.S. stock market, as represented by the S&P 500
Index, has been in a narrow trading range, reaching a new high in July, and
testing the March lows in mid-September. The U.S. stock market has enjoyed a
high valuation level for the past few years, reflecting the uniquely favorable
investment climate of steady growth and low inflation. On the other hand, this
market remains vulnerable to high volatility given these valuation levels.

We entered 1999 with many investors fearing that the financial collapse of
Southeast Asia and Russia would cause a global recession. However, rather than
slowing down, the U.S. economy has remained very strong. Europe is improving,
and much of Asia is showing encouraging signs of recovery as well. Now the worry
is that strong non-inflationary growth might become unsustainable, causing
inflationary pressures that could put an end to the favorable investment
climate.

This fear is reflected by the long-term Treasury bond rate that rose to
a high of 6.25% and currently is around 6.0%, up 150 basis points (1.50%) from
the lows of last Fall. The Federal Reserve (the "Fed") has followed the bond
market, taking back two-thirds of last Fall's rate easing by raising short-term
rates 50 basis points (0.50%), and we believe that the Fed will tighten again.

All of this is happening in an environment that exhibits few signs of potential
inflationary pressures. Oil prices have doubled from February's lows and are
back to the levels experienced in 1996. The U.S. dollar has declined against the
Japanese Yen, potentially leading to a rising cost of exports, and the
unemployment rate remains stubbornly low. However, since the oil shock of the
1970s, commodities, including oil, have shrunk significantly as a percentage of
U.S. business costs, the dollar is holding up well against the currencies of our
other trading partners, and labor costs are remarkably benign due to strong
gains in productivity. At the same time, the rest of the world is following the
U.S. example of restructuring and regulatory reform, and U.S. businesses, in the
second phase of restructuring, continue to redeploy capital into more
productive, higher-return industries, all of which is disinflationary.

OUTLOOK

Company fundamentals are strong, with earnings growth accelerating after last
Fall's slowdown. Companies that benefit from globalization and disinflation are
among the earnings leaders, but many of these companies have enjoyed extremely
high valuation levels. Thus, with the stock market still at high valuation
levels, and with market leadership remaining stubbornly narrow, we believe the
stock market will remain hostage to the bond market for the foreseeable future,
and volatility should also remain high. Therefore, our bottom up stock picking
approach should continue to add value for our investors during this period of
high volatility.

YEAR 2000

We are increasingly confident that most U.S. companies have addressed their Year
2000 ("Y2K") issues and do not anticipate any significant impact on U.S. markets
because of Y2K-related disruptions. There is some uncertainty, however, about
the Y2K readiness of companies in other parts of the world and how much effect
any lack of preparation will have on the global economy.

The GE LifeStyle Funds' adviser, GE Investment Management Incorporated ("GEIM"),
has incorporated "Year 2000 Y2K" readiness capability into its analysis
processes for the investment portfolios it manages. It has been engaged in a
multi-year effort to address its own Y2K date-related issues in a broad range of
areas including applications, process-enabling systems and facilities. GEIM also
benefits from the Y2K efforts of its parent,

1
<PAGE>
A LETTER FROM THE PRESIDENT (CONTINUED)
- --------------------------------------------------------------------------------

General Electric Company, which systematically monitors the implementation of
the Y2K programs of all GE businesses and facilitates the sharing of best
practices. With respect to third-party systems, GEIM like many similar
companies, must rely largely on the efforts and affirmations of others; however,
it will continue to work closely with our most critical vendors, State Street
Bank and Trust Company, the funds' custodian and National Financial Data
Services, Inc., the funds' transfer agent. Although the interaction of various
software and hardware elements is highly complex -- and the possibility of Y2K
related problems cannot be totally eliminated -- GEIM believes it is taking the
appropriate steps.

Thank you for your continued investment in the GE LifeStyle Funds. We look
forward to helping you serve your financial needs in the future.

Sincerely,

/S/SIGNATURE
Michael J. Cosgrove

MIKE COSGROVE IS THE PRESIDENT OF THE ASSET MANAGEMENT SERVICES GROUP OF GE
FINANCIAL ASSURANCE HOLDINGS, INC., AND OF GE INVESTMENT DISTRIBUTORS, INC., THE
FUNDS' DISTRIBUTOR, AND SERVES AS A TRUSTEE OF THE GE PENSION TRUST AND GE'S
EMPLOYEE SAVINGS PROGRAM. PREVIOUSLY CHIEF FINANCIAL OFFICER OF GE INVESTMENTS
AND ASSISTANT TREASURER-GE COMPANY, MIKE JOINED GE IN 1970 AND HELD A NUMBER OF
MANAGERIAL POSITIONS IN FINANCE AND SALES IN THE INTERNATIONAL OPERATION AND IN
GE TRADING COMPANY. HE HAS A B.S. IN ECONOMICS FROM FORDHAM UNIVERSITY AND AN
M.B.A. FROM ST. JOHN'S UNIVERSITY.

2
<PAGE>
CONSERVATIVE ALLOCATION FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN
VALUE OF A $10,000 INVESTMENT
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

CONSERVATIVE ALLOCATION FUND COMPOSITE INDEX
12/31/98 $10000.00 $10000.00
1/99 10180 10133.13
2/99 9950 9924.31
3/99 10160 10144.42
4/99 10350 10336.51
5/99 10200 10134.04
6/99 10390 10353.26
7/99 10330 10321.46
8/99 10270 10320.79
9/99 10270 10318.91

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------

TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 4.0% 3.9%
GE U.S. Equity Fund 10.0% 9.6%
GE Mid-Cap Growth Fund 3.0% 2.9%
GE Value Equity Fund 9.0% 8.6%
GE International Equity Fund 18.0% 17.6%
GE Fixed Income Fund 51.0% 50.4%
GE Short-Term Government Fund 5.0% 4.9%
Cash and Other -- 2.1%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

- --------------------------------------------------------------------------------
AGGREGATE TOTAL RETURNS:
FROM DECEMBER 31, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

CONSERVATIVE ALLOCATION FUND 2.70%
Composite Index** 3.19%
S&P 500 Index 5.36%
MSCI EAFE Index 8.53%
LB Int. Gov't/Corp. Index 0.34%
- --------------------------------------------------------------------------------

** THE COMPOSITE INDEX IS DERIVED BY APPLYING EACH UNDERLYING FUND'S
TARGET ALLOCATIONS TO THE RESULTS OF THE CORRESPONDING BENCHMARKS FOR THE
DOMESTIC EQUITY, INTERNATIONAL EQUITY, AND FIXED INCOME MARKETS.

The GE Conservative Allocation Fund currently targets 56% to fixed income
securities, 26% to domestic equities and 18% to international equities. As of
September 30, 1999, actual equity and fixed income holdings were slightly under
the targets. The fund has a high weighting in fixed income securities because
its long-term goal is preservation of capital. With a 44% target allocation in
equities, the fund also offers some opportunity for capital appreciation. We
believe that this fund should show its best relative performance in times of
economic uncertainty.

Fixed income securities posted negative returns for the first nine months of
1999. The yield on 30-year U.S. Treasury Bonds rose all year and reached 6.05%
on September 30, 1999. Strong economic growth and the lowest unemployment rate
in 35 years raised the specter of inflation for investors. While there is little
evidence that inflation is actually rising, the U.S. Federal Reserve took the
precaution of raising short-term interest rates twice. There is concern that the
Federal Reserve will tighten at least once more, restoring rates to the level
that existed before the collapse of Russian markets in 1998. In this
environment, the underlying GE Fixed Income Fund slightly underperformed its
benchmark for the nine-month period because of its slightly longer duration.

Equities had modestly positive gains during the reporting period, as the fear of
rising inflation also had a negative impact on the stock market. Combined, the
portfolio's four U.S. equity segments outperformed the S&P 500 Index over nine
months because of good stock selection. The underlying GE Premier Growth Equity
Fund gained 12.42%, significantly outpacing the S&P 500 Index because of its
overweight position in technology stocks. The underlying GE Value Equity Fund
returned 6.61%, better than its benchmark, the S&P 500/BARRA Value Index,
because of good stock selection in the energy and consumer sectors. The
underlying GE U.S. Equity Fund gained 6.84%, nicely outperforming the S&P 500
Index, because of good stock selection in consumer cyclicals. An underweight
position in technology hurt the underlying GE Mid-Cap Growth Fund, which
returned -4.04%, underperforming the S&P 400 MidCap Index. Generally, large-cap
stocks outperformed mid-caps for the period.

The portfolio's underlying GE International Equity Fund earned 7.71%, modestly
lagging its benchmark because it was underweight in Japanese stocks and
overweight in European stocks, where the economic recovery has taken longer than
anticipated. The environment in Europe is expected to improve in 2000 because of
lower interest rates, recent moves to deregulate the economy and benefits
arising from the introduction of the Euro.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

3
<PAGE>
MODERATE ALLOCATION FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

MODERATE ALLOCATION FUND COMPOSITE INDEX
12/31/98 $10000.00 $10000.00
1/99 10230 10170.3
2/99 9980 9934.2
3/99 10240 10217.37
4/99 10500 10480.52
5/99 10300 10223.73
6/99 10600 10538.54
7/99 10520 10491.39
8/99 10440 10486.13
9/99 10390 10438.23

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------

TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 8.0% 7.9%
GE U.S. Equity Fund 13.0% 12.7%
GE Mid-Cap Growth Fund 4.0% 3.9%
GE Value Equity Fund 13.0% 12.7%
GE International Equity Fund 25.0% 24.5%
GE Fixed Income Fund 32.0% 32.9%
GE Short-Term Government Fund 5.0% 5.2%
Cash and Other -- 0.2%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

MODERATE ALLOCATION FUND 3.90%
Composite Index** 4.38%
S&P 500 Index 5.36%
MSCI EAFE Index 8.53%
LB Int. Gov't/Corp. Index 0.34%
- --------------------------------------------------------------------------------

The GE Moderate Allocation Fund currently targets 38% to domestic equities, 25%
to international equities, and 37% to fixed income securities. As of September
30, 1999, actual equity holdings were slightly under the targets while fixed
income holdings were slightly over the target. The fund's long-term goal is to
preserve capital while participating in the potential appreciation that equity
investments offer. We believe that this fund should provide good relative
performance in both up and down markets since the fixed income component offers
protection in down markets and the international equity component provides
diversification and the potential for superior long-term growth.

Equities had modestly positive gains during the reporting period, as the fear of
rising inflation had a negative impact on the stock market. Combined, the
portfolio's four U.S. equity segments outperformed the S&P 500 Index over nine
months because of good stock selection. The underlying GE Premier Growth Equity
Fund gained 12.42%, significantly outpacing the S&P 500 Index because of its
overweight position in technology stocks. The underlying GE Value Equity Fund
returned 6.61%, better than its benchmark, the S&P 500/BARRA Value Index,
because of good stock selection in the energy and consumer sectors. The
underlying GE U.S. Equity Fund gained 6.84%, nicely outperforming the S&P 500
Index, because of good stock selection in consumer cyclicals. An underweight
position in technology hurt the underlying GE Mid-Cap Growth Fund, which
returned -4.04%, underperforming the S&P 400 MidCap Index. Generally, large-cap
stocks outperformed mid-caps for the period.

Fixed income securities posted negative returns for the first nine months of
1999. The yield on 30-year U.S. Treasury Bonds rose all year and reached 6.05%
on September 30, 1999. Strong economic growth and the lowest unemployment rate
in 35 years raised the specter of inflation for investors. While there is little
evidence that inflation is actually rising, the U.S. Federal Reserve took the
precaution of raising short-term interest rates twice. There is concern that the
Federal Reserve will tighten at least once more, restoring rates to the level
that existed prior to the collapse of Russian markets in 1998. In this
environment, the underlying GE Fixed Income Fund slightly underperformed its
benchmark for the nine-month period because of its slightly longer duration.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

4
<PAGE>
AGGRESSIVE ALLOCATION FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

AGGRESSIVE ALLOCATION FUND COMPOSITE INDEX
12/31/98 $10000 $10000.00
1/99 10270 10203.87
2/99 10010 9942.06
3/99 10340 10285.11
4/99 10680 10616.54
5/99 10470 10305.88
6/99 10870 10712.06
7/99 10770 10652.28
8/99 10660 10642.85
9/99 10560 10551.49

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------
TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 10.0% 9.9%
GE U.S. Equity Fund 17.0% 16.6%
GE Mid-Cap Growth Fund 6.0% 5.8%
GE Value Equity Fund 16.0% 15.6%
GE International Equity Fund 32.0% 31.3%
GE Fixed Income Fund 14.0% 14.2%
GE Short-Term Government Fund 5.0% 5.1%
Cash and Other -- 1.5%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

AGGRESSIVE ALLOCATION FUND 5.60%
Composite Index** 5.51%
S&P 500 Index 5.36%
MSCI EAFE Index 8.53%
LB Int. Gov't/Corp. Index 0.34%
- --------------------------------------------------------------------------------

The GE Aggressive Allocation Fund currently targets 49% to domestic equities,
32% to international equities, and 19% to fixed income securities. As of
September 30, 1999, actual equity holdings were slightly under the targets while
fixed income holdings were slightly over the target. The fund has a high
weighting in equities because its long-term goal is appreciation of capital. We
believe that this fund should provide good relative performance in up markets.
However, the fixed income holdings provide some protection in times of economic
uncertainty. When stock markets around the world are doing well, this fund
generally will outperform the GE Moderate Allocation and Conservative Allocation
Funds.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

5
<PAGE>
GE LIFESTYLE FUNDS = PORTFOLIO MANAGER'S BIOGRAPHY
- --------------------------------------------------------------------------------

PERFORMANCE SUMMARIES ON THE PRECEDING PAGES ARE PRESENTED BY EUGENE K. BOLTON,
EXECUTIVE VICE PRESIDENT, GE INVESTMENTS.

GENE BOLTON IS RESPONSIBLE FOR THE MANAGEMENT OF THE GE LIFESTYLE FUNDS. AS THE
CHAIRMAN OF THE ASSET ALLOCATION COMMITTEE AT GE INVESTMENTS, GENE WORKS CLOSELY
WITH THE PORTFOLIO MANAGERS OF THE UNDERLYING GE FUNDS. HE ALSO HAS OVERALL
MANAGEMENT RESPONSIBILITY OF THE U.S. EQUITY INVESTMENT PROCESS AT GE
INVESTMENTS AND MANAGES TOTAL ASSETS OF OVER $54 BILLION, INCLUDING
RESPONSIBILITY FOR OVERSEEING THE PORTFOLIO MANAGEMENT OF THE GE U.S. EQUITY
FUND. GENE JOINED GE IN 1964. AFTER COMPLETING GE'S FINANCIAL MANAGEMENT
PROGRAM, HE HELD A NUMBER OF FINANCIAL AND STRATEGIC PLANNING POSITIONS IN THE
U.S. AND EUROPE. JOINING GE INVESTMENTS IN 1984 AS CHIEF FINANCIAL OFFICER, HE
MOVED TO EQUITIES AS A PORTFOLIO MANAGER IN 1986 AND WAS NAMED TO HIS PRESENT
POSITION IN 1991. GENE IS A TRUSTEE OF THE GE PENSION TRUST AND GE'S EMPLOYEE
SAVINGS PROGRAM. HE ALSO SERVES AS A TRUSTEE OF THE INVESTMENT MANAGEMENT
WORKSHOP, SPONSORED BY THE ASSOCIATION FOR INVESTMENT MANAGEMENT AND RESEARCH.
GENE IS A GRADUATE OF MUNDELEIN COLLEGE WITH A B.A. IN BUSINESS MANAGEMENT.

NOTES TO PERFORMANCE (UNAUDITED)
- --------------------------------------------------------------------------------

Information on the preceding performance pages relating to the Funds' total
return and portfolio allocation are audited, all other information on the
performance pages is unaudited.

Total returns are historical and assume changes in share price, reinvestment of
dividends and capital gains, if any. Past performance is not indicative of
future results of the fund. Investment returns and net asset value on an
investment will fluctuate and you may have a gain or loss when you sell your
shares.

The Adviser has voluntarily agreed to waive and/or bear certain fees and
expenses of both the funds and the underlying GE Funds. Without these
provisions, the performance returns would have been lower. These provisions may
be renewed or discontinued in the future.

The Standard & Poor's ("S&P") 500 Composite Stock Price Index of stocks (S&P
500), Morgan Stanley Capital International Europe, Australasia, Far East Index
(MSCI EAFE) and the Lehman Brothers Intermediate Government/Corporate Bond Index
(LB Int. Gov't/Corp) are unmanaged indices and do not reflect the actual cost of
investing in the instruments that comprise each index. The S&P 500 Index is a
composite of the prices of 500 widely held stocks recognized by investors to be
representative of the U.S. stock market in general. The MSCI EAFE is a composite
of foreign securities traded in 20 developed markets representing Europe,
Australasia and the Far East. The LB Int. Gov't/Corp is comprised of the
Government bonds and Corporate bonds portion of the Lehman Brothers Aggregate
Bond Index (LB Aggregate). The LB Aggregate is a composite index of short-,
medium-, and long-term bond performance and is widely recognized as a barometer
of the bond market in general. The results shown for the foregoing indices
assume reinvestment of net dividends or interest.

Total returns for the Composite Index are derived by applying the fund's target
allocations to the results of the corresponding benchmarks for the domestic
equity market, the S&P 500; for the international equity market, the MSCI EAFE;
and for the fixed income bond market, the LB Int. Gov't/Corp.

6
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
ALLOCATION ALLOCATION ALLOCATION
FUND FUND FUND
9/30/99(a) 9/30/99(a) 9/30/99(a)
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/98 12/31/98 12/31/98

<S> <C> <C> <C>
Net asset value, beginning of period ....................... $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (d) ............................... 0.13 0.08 0.03
Net realized and unrealized gains on investments (c) .... 0.14 0.31 0.53
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .................... 0.27 0.39 0.56
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................................... 0.00 0.00 0.00
Net realized gains ...................................... 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................ 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................. $10.27 $10.39 $10.56
- ----------------------------------------------------------------------------------------------------------------------

TOTAL RETURN (B) ........................................... 2.70% 3.90% 5.60%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $841 $8,422 $7,339
Ratios to average net assets:
Net investment income* ............................... 3.09% 1.98% 0.99%
Net expenses* ........................................ 0.20% 0.20% 0.20%
Gross expenses* ...................................... 2.47% 0.45% 0.61%
Portfolio turnover rate ................................. 140% 18% 10%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>

NOTES TO FINANCIAL HIGHLIGHTS
- -----------------------------

(a) INFORMATION IS FOR THE PERIOD DECEMBER 31, 1998, INCEPTION OF INVESTMENT
OPERATIONS, THROUGH SEPTEMBER 30, 1999.

(b) TOTAL RETURNS ARE HISTORICAL AND ASSUME CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND ASSUME NO SALES CHARGE.
HAD THE ADVISER NOT ABSORBED A PORTION OF EXPENSES OF THE FUNDS AND OF THE
UNDERLYING GE FUNDS, TOTAL RETURNS WOULD HAVE BEEN LOWER. TOTAL RETURNS ARE
NOT ANNUALIZED.

(c) AS A RESULT OF THE TIMING OF PURCHASES AND SALES OF FUND SHARES, PER SHARE
AMOUNTS DO NOT ACCORD WITH AGGREGATE AMOUNTS APPEARING IN THE STATEMENT OF
OPERATIONS.

(d) RECOGNITION OF NET INVESTMENT INCOME IS AFFECTED BY THE TIMING OF THE
DECLARATION OF DIVIDENDS BY THE UNDERLYING GE FUNDS IN WHICH THE FUND
INVESTS.

* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR

- ------------------
See Notes to Financial Statements.

7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------

CONSERVATIVE ALLOCATION FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 100.0%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class Y)* .. 1,179 $ 32,546
GE U.S. Equity Fund (Class Y)* ............ 2,479 80,518
GE Mid-Cap Growth Fund (Class Y)* ......... 2,420 24,149
GE Value Equity Fund (Class Y)* ........... 5,688 72,463
GE International Equity Fund (Class Y)* ... 8,014 147,774
GE Fixed Income Fund (Class Y)* ........... 36,054 424,000
GE Short-Term Government Fund (Class Y)* .. 3,549 41,563
GEI Short-Term Investment Fund ............ 17,986 17,986

TOTAL INVESTMENTS
(COST $861,433) ........................ 840,999
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.0%
- --------------------------------------------------------------------------------
Other Assets .............................. 475
Liabilities ............................... (166)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES .............. 309
- --------------------------------------------------------------------------------
NET ASSETS-- 100% ......................... $841,308
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in ........................... $851,809
Undistributed net investment income ....... 10,530
Accumulated net realized loss ............. (597)
Net unrealized depreciation on investments (20,434)
- --------------------------------------------------------------------------------
NET ASSETS ................................ $841,308
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) ...... 81,893
Net asset value per share ................. $10.27

*EFFECTIVE AS OF THE CLOSE OF BUSINESS ON SEPTEMBER 17, 1999, CLASS D SHARES
WERE RENAMED CLASS Y.

- --------------
See Notes to Financial Statements.

8
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------

MODERATE ALLOCATION FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 100.2%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class Y)* .. 24,207 $ 668,107
GE U.S. Equity Fund (Class Y)* ............ 32,951 1,070,233
GE Mid-Cap Growth Fund (Class Y)* ......... 33,240 331,735
GE Value Equity Fund (Class Y)* ........... 84,034 1,070,598
GE International Equity Fund (Class Y)* ... 111,948 2,064,317
GE Fixed Income Fund (Class Y)* ........... 235,620 2,770,889
GE Short-Term Government Fund (Class Y)* .. 36,895 432,040
GEI Short-Term Investment Fund ............ 31,650 31,650

TOTAL INVESTMENTS
(COST $8,661,812) ...................... 8,439,569
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (0.2)%
- --------------------------------------------------------------------------------
Other Assets .............................. 3,080
Liabilities ............................... (20,524)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES .............. (17,444)
- --------------------------------------------------------------------------------
NET ASSETS-- 100% ......................... $8,422,125
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in ........................... $8,574,886
Undistributed net investment income ....... 62,318
Accumulated net realized gain ............. 7,164
Net unrealized depreciation on investments (222,243)
- --------------------------------------------------------------------------------
NET ASSETS ................................ $8,422,125
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) ...... 810,789
Net asset value per share ................. $10.39

*EFFECTIVE AS OF THE CLOSE OF BUSINESS ON SEPTEMBER 17, 1999, CLASS D SHARES
WERE RENAMED CLASS Y.

- -----------------
See Notes to Financial Statements.

9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------

AGGRESSIVE ALLOCATION FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 100.3%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class Y)* ...... 26,289 $ 725,588
GE U.S. Equity Fund (Class Y)* ................ 37,448 1,216,303
GE Mid-Cap Growth Fund (Class Y)* ............. 42,635 425,502
GE Value Equity Fund (Class Y)* ............... 89,949 1,145,945
GE International Equity Fund (Class Y)* ....... 124,733 2,300,070
GE Fixed Income Fund (Class Y)* ............... 88,386 1,039,421
GE Short-Term Government Fund (Class Y)* ...... 31,776 372,093
GEI Short-Term Investment Fund ................ 137,448 137,448

TOTAL INVESTMENTS
(COST $7,639,206) .......................... 7,362,370
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (0.3)%
- --------------------------------------------------------------------------------
Other Assets .................................. 1,772
Liabilities ................................... (24,695)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES .................. (22,923)
- --------------------------------------------------------------------------------
NET ASSETS-- 100% ............................. $7,339,447
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in ............................... $7,589,455
Undistributed net investment income ........... 18,769
Accumulated net realized gain ................. 8,059
Net unrealized depreciation on investments .... (276,836)
- --------------------------------------------------------------------------------
NET ASSETS .................................... $7,339,447
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) .......... 694,879
Net asset value per share ..................... $10.56

*EFFECTIVE AS OF THE CLOSE OF BUSINESS ON SEPTEMBER 17, 1999, CLASS D SHARES
WERE RENAMED CLASS Y.

- ------------------
See Notes to Financial Statements.

10
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED SEPTEMBER 30, 1999*
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
ALLOCATION ALLOCATION ALLOCATION
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C>
Dividends .................................. $ 10,878 $ 65,231 $ 20,665
Interest ................................... 333 3,378 1,892
- -------------------------------------------------------------------------------------------------------
TOTAL INCOME .................................. 11,211 68,609 22,557
- -------------------------------------------------------------------------------------------------------
EXPENSES:
Transfer agent fees ........................ 7,724 7,724 7,724
Trustees' fees ............................. 11 11 11
Advisory fees .............................. 681 6,291 3,788
- -------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE REIMBURSEMENT ........... 8,416 14,026 11,523
- -------------------------------------------------------------------------------------------------------
Less: Expenses reimbursed by
the Adviser ............................. (7,735) (7,735) (7,735)
- -------------------------------------------------------------------------------------------------------
Net expenses ............................... 681 6,291 3,788
- -------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ......................... 10,530 62,318 18,769
- -------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain (loss) on investments ........ (597) 7,164 8,059
Increase in unrealized appreciation/
depreciation on investments ............. (20,434) (222,243) (276,836)
- -------------------------------------------------------------------------------------------------------
Net realized and unrealized loss
on investments .......................... (21,031) (215,079) (268,777)
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................. $(10,501) $(152,761) $(250,008)
- -------------------------------------------------------------------------------------------------------

<FN>
* FOR THE PERIOD DECEMBER 31, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1999.
</FN>
</TABLE>

- -----------------
See Notes to Financial Statements.

11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED SEPTEMBER 30, 1999*
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
ALLOCATION ALLOCATION ALLOCATION
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C>
Net investment income ........................... $ 10,530 $ 62,318 $ 18,769
Net realized gain (loss) on investments ......... (597) 7,164 8,059
Net increase in unrealized depreciation ......... (20,434) (222,243) (276,836)
- ------------------------------------------------------------------------------------------------------------------
Net decrease from operations .................... (10,501) (152,761) (250,008)
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ........................... - - -
Net realized gains .............................. - - -
- ------------------------------------------------------------------------------------------------------------------
Total distributions ................................ - - -
- ------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
operations and distributions .................... (10,501) (152,761) (250,008)
- ------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares .................... 1,484,866 10,125,126 8,108,990
Value of distributions reinvested ............... - - -
Cost of shares redeemed ......................... (633,057) (1,550,240) (519,535)
- ------------------------------------------------------------------------------------------------------------------
Net increase from share transactions ............ 851,809 8,574,886 7,589,455
- ------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS ....................... 841,308 8,422,125 7,339,447

NET ASSETS
Beginning of period ................................ - - -
- ------------------------------------------------------------------------------------------------------------------
End of period ...................................... $841,308 $8,422,125 $7,339,447
- ------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ...................................... $ 10,530 $ 62,318 $ 18,769
- ------------------------------------------------------------------------------------------------------------------

CHANGES IN FUND SHARES

Shares sold by subscription ........................... 142,946 958,519 742,852
Issued for distributions reinvested ................... - - -
Shares redeemed ....................................... (61,053) (147,730) (47,973)
- ------------------------------------------------------------------------------------------------------------------
Net increase in fund shares ........................... 81,893 810,789 694,879
- ------------------------------------------------------------------------------------------------------------------

<FN>
* FOR THE PERIOD DECEMBER 31, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1999.
</FN>
</TABLE>

- --------------
See Notes to Financial Statements.

12
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

1. ORGANIZATION OF THE FUNDS

GE LifeStyle Funds ("LifeStyle Funds" or the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end,
management investment company. The Trust was organized as a Massachusetts
business trust on June 21, 1996, and is authorized to issue an unlimited number
of shares. It is currently comprised of six investment funds (each a "Fund" and
collectively the "Funds"), three of which are included in a separate annual
report. Each Fund operates as a "fund-of-funds" in that it makes investments in
a select group of underlying GE Funds ("Underlying Funds") suited to the Fund's
particular investment objective. The objectives of the funds are as follows:

GE Conservative Allocation Fund's investment objective is income and long-term
growth of capital. The Fund seeks to achieve its objective through investment in
a mix of equity-oriented funds and fixed income-oriented funds, with a bias
toward equity-oriented or fixed income-oriented funds to be determined by then
current market forces.

GE Moderate Allocation Fund's investment objective is long-term growth of
capital with a moderate level of current income. The Fund seeks to achieve its
objective through investment in various equity-oriented funds and fixed
income-oriented funds, with the bias toward equity-oriented funds for enhanced
growth potential.

GE Aggressive Allocation Fund's investment objective is capital appreciation.
The Fund seeks to achieve its objective through investment in a selection of
equity-oriented funds and fixed income-oriented funds, typically with a strong
bias under normal market conditions toward equity-oriented funds for substantial
growth potential.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions at
the date of the financial statements. Actual results may differ from those
estimates.

The following summarizes the significant accounting policies of the Trust:

SECURITY VALUATION AND TRANSACTIONS
Investments in the Underlying Funds are valued at the closing net asset value
per share of each Underlying Fund as reported on each business day. Short-term
investments maturing within 60 days are valued at amortized cost or original
cost plus accrued interest.

Security transactions are accounted for as of the trade date. Capital gain
distribution from investments in the Underlying Funds are included in the
Statement of Operations in realized gain/loss on investments.Realized gains and
losses on investments sold are recorded on the basis of specific identified cost
for both financial statement and federal tax purposes.

REPURCHASE AGREEMENTS
Each of the Funds may enter into repurchase agreements. The Funds' custodian
takes possession of the collateral pledged for investments in repurchase
agreements on behalf of the Funds. The Funds value the underlying collateral
daily on a mark-to-market basis to determine that the value, including accrued
interest, is at least equal to 102% of the repurchase price. In the event the
seller defaults and the value of the security declines, or if the seller enters
insolvency proceeding, realization of the collateral by the Funds may be delayed
or limited.

INCOME TAXES
The Funds intend to comply with all sections of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all
of their taxable net investment income and net realized capital gains to their
shareholders and, therefore, no provision for federal income tax has been made.
Each Fund is treated as a separate taxpayer for federal income tax purposes.

Any net capital and currency
losses incurred after October 31, within each Fund's tax year, are deemed to
arise on the first day of the Fund's next tax year if the Fund so elects to
defer such losses. The Funds incurred and elected to defer losses after
October 31, 1998, as follows:

FUND CURRENCY CAPITAL
- ----------------------------------------------------------------------
Conservative Allocation Fund $ -- $ 196

13
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

tions. These reclassifications have no impact on net investment income, realized
gains or losses, or net asset value of the Funds. The calculation of net
investment income per share in the Financial Highlights table excludes these
adjustments.

INVESTMENT INCOME
Income and capital gain distributions, if any, are recorded on the ex-dividend
date. Interest income is recorded on the accrual basis.

EXPENSES
The Funds pay a fee to GE Investment Management, Incorporated ("GEIM") for the
Funds' advisory and administration services. This fee includes any normal
operating expenses payable by the Funds, except for fees paid to the Trust's
independent Trustees and transfer agent. Until further notice, GEIM has agreed
to reimburse the Funds for Trustee and transfer agency costs.

3. FEES AND COMPENSATION
PAID TO AFFILIATES

ADVISORY AND ADMINISTRATION FEES
Compensation of GEIM for investment advisory and administrative services is paid
monthly based on the average daily net assets of each Fund. The advisory and
administration fees payable to GEIM for each Fund are calculated at the annual
rate of 0.20%.

TRUSTEES COMPENSATION
The Funds pay no compensation to their Trustees who are employees of GEIM.
Trustees who are not such officers or employees receive an annual fee of $2,000
and an additional fee of $500 for each Trustees' meeting attended in person.

OTHER
For the period ended September 30, 1999, the Trust was informed that GE
Investment Distributors, Inc., acting as underwriter, did not receive
commissions from the sale of shares.

4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION

Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at September 30, 1999, were as follows:

GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION (DEPRECIATION)
- -------------------------------------------------------------
GE Conservative
Allocation Fund $ 177 $ 20,611 $ (20,434)

GE Moderate
Allocation Fund 18,152 240,395 (222,243)

GE Aggressive
Allocation Fund 4,989 281,825 (276,836)

The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at September 30, 1999.

5. INVESTMENT TRANSACTIONS

The cost of purchases and the proceeds from sales of the Underlying Funds,
excluding short-term securities, for the period ended September 30, 1999, were
as follows:

PURCHASES SALES
- -------------------------------------------------------------
GE Conservative
Allocation Fund $1,440,676 $596,632

GE Moderate
Allocation Fund 9,368,895 745,897

GE Aggressive
Allocation Fund 7,757,225 263,527

6. BENEFICIAL INTEREST

The schedule below shows the number of shareholders each owning 5% or more of a
fund and the total percentage of the fund held by such shareholders at September
30, 1999.

5% OR GREATER SHAREHOLDERS
- -----------------------------------------------------------------
% OF % OF FUND HELD
NUMBER FUND HELD BY GE AFFILIATES*
- -----------------------------------------------------------------
GE Conservative
Allocation Fund 3 89% 12%

GE Moderate
Allocation Fund 3 93% 53%

GE Aggressive
Allocation Fund 3 94% -

Investment activities of these shareholders could have a material impact on
these funds.

*INCLUDED IN THE 5% OR GREATER SHAREHOLDERS PERCENTAGE.

14
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------

To the Shareholders and Trustees of GE LifeStyle Funds

In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the funds constituting GE LifeStyle Funds (the "Trust") at September 30,
1999, and the results of their operations, the changes in their net assets and
the financial highlights for the periods from December 31, 1998 (inception date)
to September 30, 1999, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of investments owned at September 30, 1999 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion expressed
above.

PricewaterhouseCoopers LLP
Boston, Massachusetts
November 12, 1999
15
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]

16
<PAGE>
GE LIFESTYLE FUNDS' INVESTMENT TEAM
- --------------------------------------------------------------------------------

PORTFOLIO MANAGER
GE LIFESTYLE FUNDS
Eugene K. Bolton

PORTFOLIO MANAGERS OF THE
UNDERLYING FUNDS
GE INTERNATIONAL EQUITY FUND
Team led by
Ralph R. Layman

GE PREMIER GROWTH EQUITY FUND
David B. Carlson

GE MID-CAP GROWTH FUND
Ralph E. Whitman, Jr.

GE VALUE EQUITY FUND
Peter J. Hathaway

GE U.S. EQUITY FUND
Team led by
Eugene K. Bolton

GE FIXED INCOME FUND
GE SHORT-TERM GOVERNMENT FUND
Team led by
Robert A. MacDougall

INVESTMENT ADVISER
AND ADMINISTRATOR
GE Investment Management Incorporated

TRUSTEES
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn

SECRETARY
Matthew J. Simpson

TREASURER
Michael J. Tansley

ASSISTANT TREASURER
Michael M. D'Ambrosio

DISTRIBUTOR
GE Investment Distributors, Inc.
Member NASD and SIPC

COUNSEL
Willkie Farr & Gallagher

CUSTODIAN
State Street Bank & Trust Company

INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP

OFFICERS OF THE INVESTMENT ADVISER
John H. Myers, CHAIRMAN OF THE BOARD AND PRESIDENT
Eugene K. Bolton, EVP, DOMESTIC EQUITIES
Michael J. Cosgrove, EVP, MUTUAL FUNDS
John J. Walker, EVP, CHIEF FINANCIAL OFFICER
Ralph R. Layman, EVP, INTERNATIONAL EQUITIES
Alan M. Lewis, EVP, GENERAL COUNSEL AND SECRETARY
Robert A. MacDougall, EVP, FIXED INCOME
Geoffrey R. Norman, EVP, MARKETING
Don W. Torey, EVP, ALTERNATIVE INVESTMENTS AND REAL ESTATE
<PAGE>
INVESTMENT ADVISER
GE INVESTMENT MANAGEMENT INCORPORATED
3003 SUMMER STREET
STAMFORD, CT 06905

DISTRIBUTOR
GE INVESTMENT DISTRIBUTORS, INC.
MEMBER NASD AND SIPC
777 LONG RIDGE ROAD
STAMFORD, CT 06927

<PAGE>

GE LIFESTYLE FUNDS
ANNUAL REPORT

CONSERVATIVE STRATEGY FUND
MODERATE STRATEGY FUND
AGGRESSIVE STRATEGY FUND
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO LIFE.
<PAGE>
GE LIFESTYLE FUNDS
- --------------------------------------------------------------------------------

UNDERSTANDING YOUR REPORT
- --------------------------------------------------------------------------------

A LETTER FROM THE PRESIDENT .............................................. 1

PERFORMANCE SUMMARY

CONSERVATIVE STRATEGY FUND .......................................... 3

MODERATE STRATEGY FUND .............................................. 4

AGGRESSIVE STRATEGY FUND ............................................ 5

PORTFOLIO MANAGER'S BIOGRAPHY ....................................... 6

NOTES TO PERFORMANCE ................................................ 6

FINANCIAL STATEMENTS
Financial Highlights ................................................ 7
Statements of Net Assets, Operations,
and Changes in Net Assets ........................................ 8

NOTES
Notes to Financial Statements ....................................... 13

REPORT OF INDEPENDENT ACCOUNTANTS ........................................ 16

TAX INFORMATION .......................................................... 17

GE LIFESTYLE FUNDS'
INVESTMENT TEAM ............................................INSIDE BACK COVER

<PAGE>

A LETTER FROM THE PRESIDENT
- --------------------------------------------------------------------------------

DEAR SHAREHOLDER:
We are pleased to provide you with the 1999 GE Lifestyle Funds Annual Report.

MARKET REVIEW

OUTLOOK

YEAR 2000

1
<PAGE>
A LETTER FROM THE PRESIDENT (CONTINUED)
- --------------------------------------------------------------------------------

Thank you for your continued investment in the GE LifeStyle Funds. We look
forward to helping you serve your financial needs in the future.

Sincerely,

/S/SIGNATURE
Michael J. Cosgrove

2
<PAGE>
CONSERVATIVE STRATEGY FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

CONSERVATIVE STRATEGY FUND COMPOSITE INDEX
1/5/98 $10000.00 $10000.00
3/98 10629.97 10705.33
6/98 10829.97 10932.35
9/98 10320.00 10647.53
12/98 11132.91 11618.54
3/99 11312.47 11786.33
6/99 11534.29 12028.97
9/99 11396.97 11989.07

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------

TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 4.0% 4.0%
GE U.S. Equity Fund 10.0% 9.7%
GE Mid-Cap Growth Fund 3.0% 2.9%
GE Value Equity Fund 9.0% 8.8%
GE International Equity Fund 18.0% 17.5%
GE Fixed Income Fund 51.0% 51.3%
GE Short-Term Government Fund 5.0% 5.0%
Cash and Other -- 0.8%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

- --------------------------------------------------------------------------------
AVERAGE TOTAL RETURNS:
- --------------------------------------------------------------------------------

ONE SINCE
YEAR INCEPTION
- --------------------------------------------------------------------------------

CONSERVATIVE STRATEGY FUND 10.44% 7.82%
Composite Index** 12.60% 10.94%
S&P 500 Index 27.81% 19.03%
MSCI EAFE Index 30.95% 16.32%
LB Int. Gov't/Corp. Index 0.63% 4.93%
- --------------------------------------------------------------------------------

The GE Conservative Strategy Fund currently targets 56% to fixed income
securities, 26% to domestic equities and 18% to international equities. As of
September 30, 1999, actual equity holdings were slightly under the targets.
Fixed income holdings were slightly over the target. The fund has a high
weighting in fixed-income securities because its long-term goal is preservation
of capital. With a 44% target equity allocation, the fund also offers some
opportunity for capital appreciation. We believe that this fund should show its
best relative performance in times of economic uncertainty.

The double-digit returns that fixed income securities enjoyed amidst 1998's
global economic turmoil turned into negative returns in 1999. The yield on
30-year U.S. Treasury Bonds, which fell from 6.04% to 4.79% between September
1997 and September 1998, returned to 6.05% by September 30, 1999. Strong
economic growth and the lowest unemployment rate in 35 years raised the specter
of inflation for investors. While there is little evidence that inflation is
actually rising, the U.S. Federal Reserve took the precaution of raising
short-term interest rates twice. There is concern the Federal Reserve will
tighten at least once more, restoring rates to the level that existed before the
collapse of the Russian markets in 1998. In this environment the underlying GE
Fixed Income Fund slightly underperformed its benchmark during the 12-month
period. Offsetting a longer average duration, which hurt performance, was a
favorable sector allocation and good security selection in corporate bonds.

Equities had strong gains during the reporting period. Combined, the portfolio's
four U.S. equity segments outperformed the S&P 500 Index over 12 months. The
underlying GE Premier Growth Equity Fund gained 38.54%, significantly outpacing
the S&P 500 Index because of its overweight position in technology stocks. The
underlying GE Value Equity Fund returned 27.34%, better than its benchmark, the
S&P 500/BARRA Value Index, because of good stock selection in the energy and
consumer sectors. The underlying GE U.S. Equity Fund gained 27.79%, closely
tracking the S&P 500 Index, because of good stock selection in the consumer
cyclical sector, outperforming both the sector and the market. An underweight
position in technology hurt the underlying GE Mid-Cap Growth Fund, which
returned 13.91%, underperforming the S&P 400 MidCap Index.

The portfolio's underlying GE International Equity Fund earned 25.48%, slightly
lagging its benchmark because of underweighting in stocks from Japan and an
overweighting in European stocks. The European economy has taken longer than
anticipated to recover but is expected to improve in 2000 because of benefits
arising from the introduction of the Euro, lower interest rates and recent moves
to deregulate the economy.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

3
<PAGE>
MODERATE STRATEGY FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

MODERATE STRATEGY FUND COMPOSITE INDEX
1/5/98 $10000.00 $10000.00
3/98 10880.00 10947.31
6/98 11080.05 11192.16
9/98 10220.06 10563.10
12/98 11416.37 11945.28
3/99 11717.36 12204.93
6/99 12115.11 12588.58
9/99 11857.11 12468.76

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------

TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 8.0% 7.8%
GE U.S. Equity Fund 13.0% 12.5%
GE Mid-Cap Growth Fund 4.0% 3.8%
GE Value Equity Fund 13.0% 12.5%
GE International Equity Fund 25.0% 24.3%
GE Fixed Income Fund 32.0% 32.0%
GE Short-Term Government Fund 5.0% 5.1%
Cash and Other -- 2.0%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

- --------------------------------------------------------------------------------
AVERAGE TOTAL RETURNS:
- --------------------------------------------------------------------------------

ONE SINCE
YEAR INCEPTION
- --------------------------------------------------------------------------------

MODERATE STRATEGY FUND 16.02% 10.30%
Composite Index** 18.04% 13.45%
S&P 500 Index 27.81% 19.03%
MSCI EAFE Index 30.95% 16.32%
LB Int. Gov't/Corp. Index 0.63% 4.93%
- --------------------------------------------------------------------------------

The GE Moderate Strategy Fund currently targets 38% to domestic equities, 25% to
international equities and 37% to fixed income securities. As of September 30,
1999, actual equity holdings were slightly under the targets. Fixed income
holdings were on target. The fund's long-term goal is to preserve capital while
participating in the potential appreciation that equity investments offer. We
believe that this fund should provide good relative performance in both up and
down markets since the fixed income components offer protection in down markets
and the international equity component provides diversification and the
potential for superior long-term growth.

Equities had strong gains during the reporting period. Combined, the portfolio's
four U.S. equity segments outperformed the S&P 500 Index over 12 months. The
underlying GE Premier Growth Equity Fund gained 38.54%, significantly outpacing
the S&P 500 because of its overweight position in technology stocks. The
underlying GE Value Equity Fund returned 27.34%, better than its benchmark, the
S&P 500/BARRA Value Index, because of good stock selection in the energy and
consumer sectors. The underlying GE U.S. Equity Fund gained 27.79%, closely
tracking the S&P 500 Index, because of good stock selection in the consumer
cyclical sector, outperforming both the sector and the market. An underweight
position in technology hurt the underlying GE Mid-Cap Growth Fund, which
returned 13.91%, underperforming the S&P 400 MidCap Index.

The double-digit returns that fixed income securities enjoyed amidst 1998's
global economic turmoil turned into negative returns in 1999. The yield on
30-year U.S. Treasury Bonds, which fell from 6.04% to 4.79% between September
1997 and September 1998, returned to 6.05% by September 30, 1999. Strong
economic growth and the lowest unemployment rate in 35 years raised the specter
of inflation for investors. While there is little evidence that inflation is
actually rising, the U.S. Federal Reserve took the precaution of raising
short-term interest rates twice. There is concern the Federal Reserve will
tighten at least once more, restoring rates to the level that existed before the
collapse of the Russian markets in 1998. In this environment the underlying GE
Fixed Income Fund slightly underperformed its benchmark during the 12 month
period. Offsetting a longer average duration, which hurt performance, was a
favorable sector allocation and good security selection in corporate bonds.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

4
<PAGE>
AGGRESSIVE STRATEGY FUND PERFORMANCE SUMMARY (UNAUDITED)
- --------------------------------------------------------------------------------

[LINE GRAPH OMITTED]

AGGRESSIVE STRATEGY FUND COMPOSITE INDEX
1/5/98 $10000.00 $10000.00
3/98 11110.07 11179.57
6/98 11330.08 11440.65
9/98 10150.10 10469.17
12/98 11664.74 12240.96
3/99 12056.03 12589.95
6/99 12627.11 13112.59
9/99 12267.54 12916.04

PORTFOLIO ALLOCATION TO FUNDS AT 9/30/99*
- --------------------------------------------------------------------------------

TARGET ACTUAL
------ ------
GE Premier Growth Equity Fund 10.0% 9.8%
GE U.S. Equity Fund 17.0% 16.6%
GE Mid-Cap Growth Fund 6.0% 5.9%
GE Value Equity Fund 16.0% 15.6%
GE International Equity Fund 32.0% 31.2%
GE Fixed Income Fund 14.0% 14.0%
GE Short-Term Government Fund 5.0% 5.0%
Other -- 1.9%
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
* As a percentage of net assets

- --------------------------------------------------------------------------------
AVERAGE TOTAL RETURNS:
- --------------------------------------------------------------------------------

ONE SINCE
YEAR INCEPTION
- --------------------------------------------------------------------------------

AGGRESSIVE STRATEGY FUND 20.86% 12.49%
Composite Index** 23.37% 15.76%
S&P 500 Index 27.81% 19.03%
MSCI EAFE Index 30.95% 16.32%
LB Int. Gov't/Corp. Index 0.63% 4.93%
- --------------------------------------------------------------------------------

The GE Aggressive Strategy Fund currently targets 49% to domestic equities, 32%
to international equities and 19% to fixed income securities. As of September
30, 1999, actual equity holdings were slightly under the targets while fixed
income holdings were on target. The fund has a high weighting in equities
because its long-term goal is appreciation of capital. We believe that this fund
should provide good relative performance in up markets. However, the fixed
income holdings provide some protection in times of economic uncertainty. When
stock markets around the world are doing well, this fund generally will
outperform the GE Moderate Strategy and Conservative Strategy Funds.

Equities had strong gains during the reporting period. Combined, the portfolio's
four U.S. equity segments outperformed the S&P 500 Index over twelve months. The
underlying GE Premier Growth Equity Fund gained 38.54%, significantly outpacing
the S&P 500 because of its overweight position in technology stocks. The
underlying GE Value Equity Fund returned 27.34%, better than its benchmark, the
S&P 500/BARRA Value Index, because of good stock selection in the energy and
consumer sectors. The underlying GE U.S. Equity Fund gained 27.79%, closely
tracking the S&P 500 Index, because of good stock selection in the consumer
cyclical sector, outperforming both the sector and the market. An underweight
position in technology hurt the underlying GE Mid-Cap Growth Fund, which
returned 13.91%, underperforming the S&P 400 MidCap Index.

The double-digit returns that fixed income securities enjoyed amidst 1998's
global economic turmoil turned into negative returns in 1999. The yield on
30-year U.S. Treasury Bonds, which fell from 6.04% to 4.79% between September
1997 and September 1998, returned to 6.05% by September 30, 1999. Strong
economic growth and the lowest unemployment rate in 35 years raised the specter
of inflation for investors. While there is little evidence that inflation is
actually rising, the U.S. Federal Reserve took the precaution of raising
short-term interest rates twice. There is concern the Federal Reserve will
tighten at least once more, restoring rates to the level that existed before the
collapse of the Russian markets in 1998. In this environment the underlying GE
Fixed Income Fund slightly underperformed its benchmark during the 12 month
period. Offsetting a longer average duration, which hurt performance, was a
favorable sector allocation and good security selection in corporate bonds.

SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

5
<PAGE>
GE LIFESTYLE FUNDS PORTFOLIO MANAGER'S BIOGRAPHY
- --------------------------------------------------------------------------------

PERFORMANCE SUMMARIES ON THE PRECEDING PAGES ARE PRESENTED BY EUGENE K. BOLTON,
EXECUTIVE VICE PRESIDENT, GE INVESTMENTS.

NOTES TO PERFORMANCE (UNAUDITED)
- --------------------------------------------------------------------------------

Information on the preceding performance pages relating to the funds' one year
total return and portfolio allocation are audited, all other information on the
performance pages is unaudited.

A number of the broad market index returns are not available for the funds'
commencement of investment operations through September 30, 1999. In instances
where the inception date was not at the beginning of the month, broad market
index returns are calculated from the month-end nearest to the funds' inception
dates.

The Adviser has voluntarily agreed to waive and/or bear certain fees and expense
of both the funds and the underlying GE Funds. Without these provisions, the
performance returns would have been lower. These provisions may be renewed or
discontinued in the future.

6
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
STRATEGY STRATEGY STRATEGY
FUND FUND FUND
9/30/99 9/30/98(a) 9/30/99 9/30/98(a) 9/30/99 9/30/98(a)
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 1/5/98 -- 1/5/98 -- 1/5/98

<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......................... $10.32 $10.00 $10.22 $10.00 $10.15 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income ...................................... 0.27 0.31 0.22 0.61 0.18 0.34
Net realized and unrealized gains (losses) on investments .. 0.78 0.01(c) 1.36 (0.39) 1.87 (0.19)(c)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS ....................... 1.05 0.32 1.58 0.22 2.05 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................................... 0.36 0.00 0.40 0.00 0.31 0.00
Net realized gains ......................................... 0.22 0.00 0.37 0.00 0.29 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................................... 0.58 0.00 0.77 0.00 0.60 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................................ $10.79 $10.32 $11.03 $10.22 $11.60 $10.15
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN .................................................. 10.44% 3.20% 16.02% 2.20% 20.86% 1.50%(b)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................... $2,058 $979 $32,319 $25,148 $5,100 $2,939
Ratios to average net assets:
Net investment income* .................................. 3.39% 5.85% 2.83% 7.39% 2.07% 5.79%
Net expenses* ........................................... 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Gross expenses* ......................................... 0.79% 5.65% 0.24% 0.33% 0.41% 1.80%
Portfolio turnover rate .................................... 71% 67% 41% 22% 27% 28%
- ------------------------------------------------------------------------------------------------------------------------------------

<FN>

NOTES TO FINANCIAL HIGHLIGHTS
- -----------------------------

(a) INFORMATION IS FOR THE PERIOD JANUARY 5, 1998, INCEPTION OF INVESTMENT
OPERATIONS, THROUGH SEPTEMBER 30, 1998.
(b) TOTAL RETURNS ARE HISTORICAL AND ASSUME CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND ASSUME NO SALES CHARGE.
HAD THE ADVISER NOT ABSORBED A PORTION OF EXPENSES OF THE FUNDS AND OF THE
UNDERLYING GE FUNDS, TOTAL RETURNS WOULD HAVE BEEN LOWER. TOTAL RETURNS ARE
NOT ANNUALIZED.
(c) AS A RESULT OF THE TIMING OF PURCHASES AND SALES OF FUND SHARES, PER SHARE
AMOUNTS DO NOT ACCORD WITH AGGREGATE AMOUNTS APPEARING IN THE STATEMENT OF
OPERATIONS.
* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
</FN>
</TABLE>

- ---------------
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------

CONSERVATIVE STRATEGY FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 101.0%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class A) ........ 2,958 $ 81,356
GE U.S. Equity Fund (Class A) .................. 6,157 200,283
GE Mid-Cap Growth Fund (Class A) ............... 6,367 59,973
GE Value Equity Fund (Class A) ................. 14,794 180,194
GE International Equity Fund (Class A) ......... 19,704 361,181
GE Fixed Income Fund (Class A) ................. 89,759 1,055,564
GE Short-Term Government Fund (Class A) ........ 8,817 103,252
GEI Short-Term Investment Fund ................. 37,020 37,020

TOTAL INVESTMENTS
(COST $2,089,325) ........................... 2,078,823
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (1.0)%
- --------------------------------------------------------------------------------
Other Assets ................................... 1,061
Liabilities .................................... (21,436)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES ................... (20,375)
- --------------------------------------------------------------------------------
NET ASSETS-- 100% .............................. $2,058,448
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in ................................ $2,003,749
Undistributed net investment income ............ 29,381
Accumulated net realized gain .................. 35,820
Net unrealized depreciation on investments ..... (10,502)
- --------------------------------------------------------------------------------
NET ASSETS ..................................... $2,058,448
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) ........... 190,820
Net asset value per share ...................... $10.79
Maximum offering price per share ............... $11.45

- -------------
See Notes to Financial Statements.
8
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
MODERATE STRATEGY FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 100.0%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class A) ........ 91,892 $ 2,527,023
GE U.S. Equity Fund (Class A) .................. 124,281 4,042,855
GE Mid-Cap Growth Fund (Class A) ............... 131,821 1,241,757
GE Value Equity Fund (Class A) ................. 332,321 4,047,674
GE International Equity Fund (Class A) ......... 427,846 7,842,418
GE Fixed Income Fund (Class A) ................. 880,005 10,348,856
GE Short-Term Government Fund (Class A) ........ 139,194 1,629,957
GEI Short-Term Investment Fund ................. 637,571 637,571

TOTAL INVESTMENTS
(COST $30,560,323) .......................... 32,318,111
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.0%
- --------------------------------------------------------------------------------
Other Assets ................................... 12,040
Liabilities .................................... (11,235)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES ................... 805
- --------------------------------------------------------------------------------
NET ASSETS-- 100% .............................. $32,318,916
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in ................................ $29,398,364
Undistributed net investment income ............ 422,589
Accumulated net realized gain .................. 740,175
Net unrealized appreciation on investments ..... 1,757,788
- --------------------------------------------------------------------------------
NET ASSETS ..................................... $32,318,916
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) ........... 2,930,517
Net asset value per share ...................... $11.03
Maximum offering price per share ............... $11.70

- ---------------
See Notes to Financial Statements.
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
AGGRESSIVE STRATEGY FUND
SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENTS -- 100.2%
- --------------------------------------------------------------------------------
GE Premier Growth Equity Fund (Class A) 18,258 $ 502,091
GE U.S. Equity Fund (Class A) 26,060 847,730
GE Mid-Cap Growth Fund (Class A) 31,736 298,952
GE Value Equity Fund (Class A) 65,479 797,531
GE International Equity Fund (Class A) 87,024 1,595,156
GE Fixed Income Fund (Class A) 60,827 715,327
GE Short-Term Government Fund (Class A) 21,740 254,581
GEI Short-Term Investment Fund 97,962 97,962

TOTAL INVESTMENTS
(COST $4,885,642) 5,109,330
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (0.2)%
- --------------------------------------------------------------------------------
Other Assets 1,250
Liabilities (10,970)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (9,720)
- --------------------------------------------------------------------------------
NET ASSETS-- 100% $5,099,610
- --------------------------------------------------------------------------------

NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Capital paid in $4,781,758
Undistributed net investment income 28,428
Accumulated net realized gain 65,736
Net unrealized appreciation on investments 223,688
- --------------------------------------------------------------------------------
NET ASSETS $5,099,610
- --------------------------------------------------------------------------------

Shares outstanding (par value $.001) 439,502
Net asset value per share $11.60
Maximum offering price per share $12.31

- --------------
See Notes to Financial Statements.
10
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
STRATEGY STRATEGY STRATEGY
FUND FUND FUND
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C>
Dividends ............................... $47,964 $925,541 $88,037
Interest ................................ 1,536 36,572 5,833
- -----------------------------------------------------------------------------------------------
TOTAL INCOME ............................... 49,500 962,113 93,870
- -----------------------------------------------------------------------------------------------
EXPENSES:
Transfer agent fees ..................... 8,000 8,000 8,000
Trustees' fees .......................... 194 5,157 561
Advisory fees ........................... 2,754 63,478 8,288
- -----------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE REIMBURSEMENT ........ 10,948 76,635 16,849

Less: Expenses reimbursed by
the Adviser .......................... (8,194) (13,157) (8,560)
- -----------------------------------------------------------------------------------------------
Net expenses ............................ 2,754 63,478 8,289
- -----------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ...................... 46,746 898,635 85,581
- -----------------------------------------------------------------------------------------------

NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain on investments ............ 40,254 821,926 79,806
Increase in unrealized
appreciation on investments .......... 15,087 2,645,102 439,566
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ....................... 55,341 3,467,028 519,372
- -----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............... $102,087 $4,365,663 $604,953
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
</TABLE>

- -------------
See Notes to Financial Statements.

11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE
STRATEGY STRATEGY STRATEGY
FUND FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998* 30, 1999 30, 1998* 30, 1999 30, 1998*
- ----------------------------------------------------------------------------------------------------------------------------------

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income .................. $ 46,746 $ 28,991 $ 898,635 $ 1,496,553 $ 85,581 $ 97,572
Net realized gain on investments ....... 40,254 4,805 821,926 115,426 79,806 10,185
Net increase (decrease) in unrealized
appreciation/depreciation ............. 15,087 (25,589) 2,645,102 (887,314) 439,566 (215,878)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations ..................... 102,087 8,207 4,365,663 724,665 604,953 (108,121)
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .................. (34,875) -- (1,128,888) -- (92,813) --
Net realized gains ..................... (20,720) -- (1,040,888) -- (86,167) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions ....................... (55,595) -- (2,169,776) -- (178,980) --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........... 46,492 8,207 2,195,887 724,665 425,973 (108,121)
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares ........... 2,552,168 1,407,890 9,594,164 30,007,903 3,330,453 3,969,684
Value of distributions reinvested ...... 55,595 -- 2,169,776 -- 178,980 --
Cost of shares redeemed ................ (1,574,974) (436,930) (6,788,532) (5,584,947) (1,775,136) (922,223)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase from
share transactions .................. 1,032,789 970,960 4,975,408 24,422,956 1,734,297 3,047,461
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS .............. 1,079,281 979,167 7,171,295 25,147,621 2,160,270 2,939,340

NET ASSETS
Beginning of period ....................... 979,167 -- 25,147,621 -- 2,939,340 --
- ----------------------------------------------------------------------------------------------------------------------------------
End of period ............................. $2,058,448 $ 979,167 $32,318,916 $25,147,621 $5,099,610 $2,939,340
- ----------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME,
END OF PERIOD ............................. $ 29,381 $ 28,991 $ 422,589 $ 1,496,553 $ 28,428 $ 97,572
- ----------------------------------------------------------------------------------------------------------------------------------

CHANGES IN FUND SHARES

Shares sold by subscription .................. 237,203 136,768 882,119 2,984,135 291,454 377,801
Issued for distributions reinvested .......... 5,403 -- 211,685 -- 16,981 --
Shares redeemed .............................. (146,687) (41,867) (624,941) (522,481) (158,651) (88,083)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in fund shares .................. 95,919 94,901 468,863 2,461,654 149,784 289,718
- ----------------------------------------------------------------------------------------------------------------------------------

<FN>
* FOR THE PERIOD JANUARY 5, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1998.
</FN>
</TABLE>

- -----------------------
See Notes to Financial Statements.

12
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

1. ORGANIZATION OF THE FUNDS

GE Conservative Strategy Fund's investment objective is income and long-term
growth of capital. The Fund seeks to achieve its objective through investment in
a mix of equity-oriented funds and fixed income-oriented funds, with a bias
toward equity-oriented or fixed income-oriented funds to be determined by then
current market forces.

GE Moderate Strategy Fund's investment objective is long-term growth of capital
with a moderate level of current income. The Fund seeks to achieve its objective
through investment in various equity-oriented funds and fixed income-oriented
funds, with the bias toward equity-oriented funds for enhanced growth potential.

GE Aggressive Strategy Fund's investment objective is capital appreciation. The
Fund seeks to achieve its objective through investment in a selection of
equity-oriented funds and fixed income-oriented funds, typically with a strong
bias under normal market conditions toward equity-oriented funds for substantial
growth potential.

The maximum sales load imposed on purchases of shares (as a percentage of
offering price) for the Funds is 5.75%. The maximum contingent deferred sales
load (as a percentage of redemption proceeds) is 1.00% and is imposed for shares
redeemed within one year of purchase that were subject to no front-end sales
load upon purchase by virtue of being part of a purchase of $1 million or more.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following summarizes the significant accounting policies of the Trust:

Security transactions are accounted for as of the trade date. Capital gain
distribution from investments in the Underlying Funds are included in the
Statement of Operations in realized gain/loss on investments. Realized gains and
losses on investments sold are recorded on the basis of specific identified cost
for both financial statement and federal tax purposes.

REPURCHASE AGREEMENTS
Each of the Funds may enter into repurchase agreements. The Funds' custodian
takes possession of the collateral pledged for investments in repurchase
agreements on behalf of the Funds. The Funds value the underlying collateral
daily on a mark-to-market basis to determine that the value, including accrued
interest, is at least equal to 102% of the repurchase price. In the event the
seller defaults and the value of the security declines, or if the seller enters
an insolvency proceedings, realization of the collateral by the Funds may be
delayed or limited.

13
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

year, are deemed to arise on the first day of the Fund's next tax year if the
Fund so elects to defer such losses. No such net capital and currency losses
incurred during the Funds' tax year.

DISTRIBUTIONS TO SHAREHOLDERS
The Funds declare and pay dividends of investment income and net realized
capital gains annually. The character of income and gains to be distributed is
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. Reclassifications are made to the
Funds' capital accounts to reflect income and gains available for distribution
(or available capital loss carryovers) under income tax regulations. These
reclassifications have no impact on net investment income, realized gains or
losses, or net asset value of the Funds. The calculation of net investment
income per share in the Financial Highlights table excludes these adjustments.

INVESTMENT INCOME
Income and capital gain distributions, if any, are recorded on the ex-dividend
date. Interest income is recorded on the accrual basis.

3. FEES AND COMPENSATION
PAID TO AFFILIATES

ADVISORY AND ADMINISTRATION FEES
Compensation of GEIM for investment advisory and administrative services, is
paid monthly based on the average daily net assets of each Fund. The advisory
and administration fees payable to GEIM for each Fund are calculated at the
annual rate of 0.20%.

OTHER
For the period ended September 30, 1999, the Trust was informed that GE
Investment Distributors, Inc., acting as underwriter, did not receive
commissions from the sale of shares.

4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION

Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at September 30, 1999, were as follows:

NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
- ---------------------------------------------------------------

GE Conservative
Strategy Fund $ 18,100 $ 28,602 $ (10,502)

GE Moderate
Strategy Fund 2,246,420 488,632 1,757,788

GE Aggressive
Strategy Fund 259,773 36,085 223,688

The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at September 30, 1999.

14
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------

5. INVESTMENT TRANSACTIONS

The cost of purchases and the proceeds from sales of the Underlying Funds,
excluding short-term securities, for the period ended September 30, 1999, were
as follows:

PURCHASES SALES
- -----------------------------------------------------------

GE Conservative
Strategy Fund $ 1,997,371 $ 977,881

GE Moderate
Strategy Fund 16,001,907 12,540,199

GE Aggressive
Strategy Fund 2,715,374 1,101,774

6. BENEFICIAL INTEREST

The schedule below shows the number of shareholders each owning 5% or more of a
fund and the total percentage of the fund held by such shareholders at September
30, 1999.

5% OR GREATER SHAREHOLDERS
--------------------------
% OF
NUMBER FUND HELD
- -----------------------------------------------------------

GE Conservative
Strategy Fund 4 96%

GE Moderate
Strategy Fund 2 96%

GE Aggressive
Strategy Fund 4 97%

Investment activities of these shareholders could have a material impact on
these funds.

15
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

To the Shareholders and Trustees of GE LifeStyle Funds

In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the funds constituting GE LifeStyle Funds (the "Trust") at September 30,
1999, and the results of their operations, the changes in their net assets and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of investments owned at September 30, 1999
by correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

PricewaterhouseCoopers LLP
Boston, Massachusetts
November 12, 1999

16
<PAGE>
TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------

During the year ended September 30, 1999, the following GE LifeStyle Funds paid,
to shareholders of record on December 15, 1998, the following long-term capital
gain dividends:

FUND PER SHARE AMOUNT
- -----------------------------------------------------------------

GE Conservative
Strategy Fund $0.11954

GE Moderate
Strategy Fund $0.29862

GE Aggressive
Strategy Fund $0.20981

17
<PAGE>
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18
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]

19
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]

20
<PAGE>
GE LIFESTYLE FUNDS' INVESTMENT TEAM
- --------------------------------------------------------------------------------

PORTFOLIO MANAGER
GE LIFESTYLE FUNDS
Eugene K. Bolton

PORTFOLIO MANAGERS OF THE
UNDERLYING FUNDS
GE INTERNATIONAL EQUITY FUND
Team led by
Ralph R. Layman

GE PREMIER GROWTH EQUITY FUND
David B. Carlson

GE MID-CAP GROWTH FUND
Ralph E. Whitman, Jr.

GE VALUE EQUITY FUND
Peter J. Hathaway

GE U.S. EQUITY FUND
Team led by
Eugene K. Bolton

GE FIXED INCOME FUND
GE SHORT-TERM GOVERNMENT FUND
Team led by
Robert A. MacDougall

INVESTMENT ADVISER
AND ADMINISTRATOR
GE Investment Management Incorporated

TRUSTEES
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn

SECRETARY
Matthew J. Simpson

TREASURER
Michael J. Tansley

ASSISTANT TREASURER
Michael M. D'Ambrosio

DISTRIBUTOR
GE Investment Distributors, Inc.
Member NASD and SIPC

COUNSEL
Willkie Farr & Gallagher

CUSTODIAN
State Street Bank & Trust Company

INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP

DISTRIBUTOR
GE INVESTMENT DISTRIBUTORS, INC.
MEMBER NASD AND SIPC
777 LONG RIDGE ROAD
STAMFORD, CT 06927