<PAGE>
[GRAPHIC]
GE LOGO
S&S PROGRAM
[GRAPHIC]
GE INVESTMENTS+ MANAGERS
MUTUAL FUNDS ANNUAL REPORT & S&SP DISCLOSURE DOCUMENT
_________________
DECEMBER 31, 1995
<PAGE>
UNDERSTANDING YOUR REPORT
PAGE
____
CHAIRMAN'S LETTER 1
DALE FREY ON MARKET EVENTS
REVIEW OF PERFORMANCE AND SCHEDULES OF INVESTMENTS
S&S PROGRAM MUTUAL FUND 2
S&S LONG TERM INTEREST FUND 9
PORTFOLIO MANAGERS DISCUSS YOUR FUNDS' RESULTS IN 1995
FINANCIAL STATEMENTS 19
FINANCIAL HIGHLIGHTS AND STATEMENTS OF ASSETS AND
LIABILITIES, OPERATIONS, AND CHANGES IN NET ASSETS
NOTES 24
NOTES TO THE FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REPORT 28
THE ACCOUNTANT'S OPINION
SCHEDULES OF INVESTMENTS
S&S SHORT TERM
INTEREST FUND 30
S&S MONEY MARKET FUND 33
SUPPLEMENTAL INFORMATION 34
ILLUSTRATIONS OF THE RELATIVE MARKET VALUE OF
INVESTMENTS OFFERED UNDER THE S&S PROGRAM BASED
ON HISTORICAL EARNINGS.
DISCLOSURE STATEMENT 36
INFORMATION ABOUT THE S&S PROGRAM INVESTMENT ALTERNATIVES.
S&S MUTUAL FUNDS' INVESTMENT TEAM 48
SHAREHOLDER INQUIRIES INSIDE BACK COVER
HOW YOU CAN OBTAIN MORE INFORMATION
_______________________________________________________________________________
ON THE COVER: GE Investments' portfolio managers are pictured making a trade
in one of our newly upgraded trading rooms. During 1995,
GE Investments made technological improvements in an effort
to create state-of-the-art trading facilities.
<PAGE>
A LETTER FROM THE CHAIRMAN
DEAR SHAREHOLDER:
This past year marks some exciting changes at GE Investments, the investment
manager for the S&S Mutual Funds. We have devoted significant efforts
and resources to upgrading our trading areas with the latest equipment
for trading, news and information to assure that our analysts stay on top
of the markets. In the same spirit of change, you will note some improvements
to this year's annual report and disclosure statement. We have organized
the report to be more interesting and informative for you. For example, we
added helpful fund information on the inside front cover to guide you through
the report. We also expanded our reviews of performance to include more fund
highlights.
PERFORMANCE HIGHLIGHTS
After weak financial performance in 1994, U.S. financial markets rebounded
tremendously in 1995. The S&S Funds followed this trend. S&S Program
Mutual Fund had the best year in its history with a total return of 36.8%.
This return also put the Fund in the top 15% of
its peers, as measured by Lipper Analytical Services, an independent mutual
fund rating service.
[GRAPHIC]
Photo of Dale F. Frey
S&S Long Term Interest Fund also had one of its best years ever in 1995, with
a total return of 18.3%. This return put the Fund in the top 20% of its
peers, as measured by Lipper Analytical Services.
The average total returns for each applicable Lipper category, and complete
details on each fund's performance can be found on the fund performance
review pages contained in this annual report.
MARKET OVERVIEW
Strong corporate earnings were reported throughout 1995, along with low
inflation, and decreasing interest rates. Merger and acquisition activity
topped $450 billion for the year, and cash flows into equity mutual funds
exceeded $100 billion, setting records for both measures. These factors drove
the S&P 500 up 37.6% for the year.
Bonds recovered after the worst market in history in 1994, reacting well to
indications of an economy under control. 1995 returns were 18.5%, as measured
by the Lehman Brothers Aggregate Index. The Lehman Brothers Municipal Bond
Index, returned 17.5% for the year, a strong performance considering that tax
reform concerns hovered over the Tax Exempt market throughout
the year.
International equity market performance, as measured by the MSCI EAFE Index,
lagged the U.S. equity markets with a return of 11.2% for the year. This
underperformance was primarily driven by Japan, where weak economic prospects
and impending "bad debt" problems at financial institutions, held Japanese
equities to only a 0.7% gain in 1995. European markets posted a respectable
return of 21.8% for the year. European companies continue to represent
excellent global values as cost cutting efforts begin to pay off.
MARKET OUTLOOK
All in all, 1995 was a terrific year for the financial markets. Looking
forward, the potential certainly exists for a short-term market correction
given current high market valuation levels. Over the long-term however, low
interest rates, controlled inflation, and stable economic growth should
result in continuation of long term growth in the financial markets.
It was a pleasure to serve your investment needs in 1995, and we look forward
to helping you meet your financial objectives in 1996.
/s/Dale F. Frey
_______________
Dale F. Frey
Chairman of the Board and President
GENERAL ELECTRIC INVESTMENTS CORPORATION
-1-
<PAGE>
S&S LONG TERM INTEREST FUND
Q
&
A
BOB MACDOUGALL LEADS THE TAXABLE FIXED INCOME TEAM AT GE INVESTMENTS. ASSETS
UNDER MANAGEMENT EXCEED $14 BILLION. HIS RESPONSIBILITIES INCLUDE MANAGING
THE S&S LONG TERM INTEREST FUND. BOB JOINED GE INVESTMENTS IN 1986 AS MUTUAL
FUND PORTFOLIO MANAGER AND WAS NAMED TO HIS PRESENT POSITION IN 1992.
PREVIOUSLY HE WAS WITH GE'S CORPORATE TREASURY OPERATION MANAGING THE
COMPANY'S $2 BILLION PORTFOLIO OF MARKETABLE SECURITIES AND SUPPORTING THE
TREASURER IN THE AREAS OF DEBT MANAGEMENT AND CAPITAL STRUCTURE PLANNING.
PRIOR TO THAT, BOB HELD VARIOUS FINANCIAL MANAGEMENT POSITIONS SINCE JOINING
GE IN 1973. HE HOLDS BACHELOR'S AND MASTER'S DEGREES IN BUSINESS
ADMINISTRATION FROM THE UNIVERSITY OF MASSACHUSETTS.
Q HOW DID THE S&S LONG TERM INTEREST FUND PERFORM
COMPARED TO ITS BENCHMARKS IN 1995?
A GE S&S Long Term Interest Fund achieved a total return of 18.3% in 1995.
This compares with a 16.6% average return for 157 mutual funds in our Lipper
peer group of Intermediate Bond Funds. The Lehman Brothers Aggregate Bond
Index had a return of 18.5%.
Q HOW DID MARKET EVENTS IN 1995 IMPACT THE FUND?
A The bond market has been on a roller coaster the last
couple of years. From February 1994 until February
[GRAPHIC]
BOB MACDOUGALL
1995, the Federal Reserve was tightening monetary policy to slow economic
growth. In July 1995 the Fed moved to an accommodative posture and lowered
short term rates. The market, anticipating this shift, rallied from early in
the year with long rates falling to 5.95% in December.
The defensive position which we established to preserve capital in 1994 kept
us from fully participating in the rally during the first quarter of 1995.
Favorable sector allocation and good individual security selection allowed us
to recoup the shortfall.
Q DESCRIBE YOUR SECTOR ALLOCATION PROCESS.
A The U.S. bond market is comprised of three primary
sectors: governments, corporate bonds and mortgage backed securities (e.g.
Ginnie Maes). While similar in the sense they generate yield and have price
sensitivity to changes in interest rates, these sectors do not perform in
lockstep. We diversify our portfolio across all three sectors to reduce risk
but also seek to add performance by over/under weighting based on our outlook
on relative value. In 1995, demand for incremental yield caused the corporate
sector to perform the best. Mortgages, on the other hand, underperformed
treasuries due to investor concern over homeowner's ability to pay off their
mortgages and refinance in a falling interest rate environment.
Q HOW ARE YOU POSITIONED AT THE START OF 1996?
A The current economic expansion will soon be entering its fifth year. Both
fiscal and monetary policy seem restrictive. Inflation is well controlled.
We believe (hope) there will be less volatility in the market with return
consisting primarily of income with little or no price appreciation. In that
environment we will tend to be overweighted in mortgage backed securities
and, to a lesser extent, corporates to pick up incremental yield over
Treasuries.
-9-
<PAGE>
S&S LONG TERM INTEREST FUND
_____________________________________________________________________________
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[GRAPHIC]
Line Chart
Data for line chart to follow:
S&S LONG TERM INTEREST FUND
<TABLE>
<CAPTION>
S&S LONG TERM INTEREST FUND
_________________________________
S&S
LONG TERM LB AGGREGATE
_________________________________
<S> <C> <C>
1985 10,000 10,000
1986 11,830 11,530
1987 11,913 11,853
1988 12,794 12,789
1989 14,650 14,644
1990 16,027 15,962
1991 18,591 18,515
1992 19,874 19,886
1993 21,821 21,814
1994 21,276 21,182
1995 25,169 25,100
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
FOR THE PERIODS ENDING DECEMBER 31, 1995
<S> <C> <C> <C>
One Five Ten
Year Year Year
S&S Long Term 18.34% 9.46% 9.68%
LB Aggregate 18.47% 9.48% 9.63%
</TABLE>
INVESTMENT PROFILE
A Fund designed for investors who seek a high interest rate of return over
a long-term period consistent with prudent management and preservation
of capital. The Fund invests principally in obligations of the U.S.
Government, corporate bonds, notes and other types of fixed income
investments.
*LIPPER PERFORMANCE COMPARISON
BASED ON 12/31/95 TOTAL RETURNS
INTERMEDIATE BOND PEER GROUP
<TABLE>
<CAPTION>
One Five Ten
Year Year Year
<S> <C> <C> <C>
Fund's rank in peer group: 32 11 1
Number of Funds in peer group: 157 37 10
Peer group average total return: 16.62% 8.88% 8.87%
Lipper categories in peer group INTERMEDIATE INVESTMENT
GRADE CORP.
</TABLE>
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES.
<TABLE>
<CAPTION>
QUALITY RATINGS AS OF DECEMBER 31, 1995
PERCENT OF
MOODY'S RATINGS + MARKET VALUE
<S> <C>
AAA 76.71%
AA 1.63%
A 10.10%
Baa 7.25%
Ba 3.92%
NR .39%
</TABLE>
+MOODY'S INVESTORS SERVICE, INC. IS A NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATION.
SEE PAGE 17 FOR NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS.
-10-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS) -- DECEMBER 31, 1995
_____________________________________________________________________________
S&S LONG TERM INTEREST FUND
[GRAPHIC]
PIE CHART
Data for Pie chart to follow:
Short Term 6.2%
U.S. Government 24.8%
Mortgage-Backed 31.4%
Asset Backed 13.5%
Corporate Notes 24.1%
DUE TO SECURITY LENDING ACTIVITY, THE ABOVE PORTFOLIO BREAKDOWNS
ARE BASED ON TOTAL MARKET VALUE OF INVESTMENTS.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
BONDS AND NOTES-119.6%
_________________________________________________________________
U.S. TREASURIES-31.6%
U.S. Treasury Bonds
6.25% 08/15/23 $25,200 $25,928
6.875% 08/15/25 44,700 50,413 (j)
7.50% 11/15/24 3,350 4,027
7.625% 02/15/25 54,960 67,206 (j)
8.125% 08/15/19 26,100 32,816 (j)
9.25% 02/15/16 5,500 7,560 (j)
12.00% 05/15/05 - 08/15/13 45,215 68,190 (j)
256,140
U.S. TREASURY NOTES
5.50% 11/15/98 40,000 40,294
5.625% 11/30/00 25,114 25,342
5.75% 09/30/97 - 10/31/97 52,700 53,190 (j)
5.875% 08/15/98 46,300 47,031 (j)
6.00% 08/31/97 24,400 24,701
6.125% 05/15/98 - 09/30/00 157,878 162,200 (j)
6.25% 08/31/00 12,900 13,345
6.50% 04/30/99 - 08/15/05 61,900 65,657 (j)
6.75% 04/30/00 86,800 91,343 (j)
7.50% 02/15/05 88,163 99,928 (j)
7.875% 11/15/04 28,335 32,798 (j)
8.00% 05/15/01 58,500 65,483
721,312
TOTAL U.S. TREASURIES
(COST $931,780) 977,452
Asset Backed-17.2%
Advanta Credit Card Master Trust Corp.
6.098% 09/01/00 26,830 26,838 (e)
6.188% 12/31/00 12,180 12,199 (e)
6.218% 10/01/01 14,400 14,436 (e)
6.313% 08/31/99 6,100 6,123 (e)
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 5,831 5,738
6.30% 01/25/96 3,734 3,743 (e)
6.31% 04/25/26 9,925 9,952 (e)
AT & T Universal Card Master Trust
5.95% 10/17/02 5,670 5,729
Caterpillar Financial Asset Trust
6.10% 06/25/00 3,296 3,309
Discover Card Master Trust
6.128% 04/16/02 20,000 20,012 (e)
6.288% 10/16/04 17,500 17,577 (e)
6.70% 02/16/00 6,690 6,813
First USA Credit Card Master Trust
6.078% 10/15/01 30,000 29,981 (e)
6.108% 04/15/03 8,050 8,045 (e)
6.118% 06/17/02 14,200 14,200 (e)
6.158% 12/15/99 6,820 6,829 (e)
6.288% 10/15/03 4,600 4,620 (e)
6.308% 08/15/03 9,300 9,349 (e)
Fleetwood Credit Grantor Trust
6.55% 05/16/11 7,699 7,818
General Motors Acceptance Corp.
5.55% 05/15/97 973 973
Household Affinity Credit Card Trust
6.088% 05/15/01 24,000 23,962 (e)
6.138% 09/15/00 12,000 12,004 (e)
Household Finance Corp.
8.15% 03/19/96 7,749 7,780
ITT Floorplan Receivables
6.138% 02/15/01 36,539 36,550 (e)
MBNA Master Credit Card Trust
5.86% 03/15/00 42,700 42,754 (e)
6.088% 03/15/01 14,300 14,282 (e)
6.108% 01/16/02 29,200 29,200 (e)
Merrill Lynch Credit Corp.
6.338% 11/15/20 9,082 9,082 (e)
Morgan Stanley Capital Inc.
6.388% 10/15/04 8,166 8,238 (e)
______________
See Notes To Schedules Of Investments And Finacial Statments
-11-
<PAGE>
S&S LONG TERM INTEREST FUND
(DOLLARS IN THOUSANDS)
_____________________________________________________________________________
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
Option One
6.306% 11/20/26 $6,254 $6,254 (e)
Peoples Bank Credit Card Master Trust
6.088% 03/15/01 20,200 20,206 (e)
Premier Auto Trust
5.95% 12/06/98 2,470 2,483
6.169% 11/02/99 3,955 3,952 (e)
Signet Master Trust
6.098% 09/15/00 4,000 4,003 (e)
Southern Pacific Secured Assets Corp.
6.125% 10/25/25 7,104 7,099 (e)
Standard Credit Card Master Trust
5.82% 05/08/00 40,000 40,012 (e)
6.55% 10/07/07 7,600 7,821
6.75% 06/07/00 7,820 8,033
TMS Trust
6.458% 06/15/25 26,270 26,309 (e)
Wachovia Credit Card Master Trust
6.108% 03/15/03 9,300 9,294 (e)
TOTAL ASSET BACKED
(COST $532,866) 533,602
CORPORATE NOTES-30.8%
Advanta Corp Medium Term Notes
6.01% 11/29/96 21,000 21,021 (e)
Aetna Life Assurance
17.02% 09/15/96
(Cost $6,769 - 12/31/85) 11,584 11,140 (d,h)
American Airlines
9.71% 01/02/07 7,913 9,198
American Home Products
7.70% 02/15/00 5,200 5,564
Arkla Inc.
8.875% 07/15/99 5,025 5,390
9.875% 04/15/97 4,770 4,996
Banco Nacional De Comercio Corp.
7.25% 02/02/04 5,100 3,946
Bank of China
8.25% 03/15/14 5,000 4,999
Banque Paribas
8.35% 06/15/07 4,250 4,792
BBV International Finance Ltd.
7.00% 12/01/25 3,885 3,881
BCH Cayman Islands
8.25% 06/15/04 6,175 6,783
Bell Telephone Co.
8.35% 12/15/30 9,625 12,090
Capital One Bank
6.212% 03/20/96 25,400 25,413 (e)
6.43% 06/29/98 7,050 7,141
6.48% 08/15/97 5,700 5,755
Central Maine Power Co.
7.40% 06/02/98 1,475 1,501
Chesapeake & Potomac Telephone Co.
8.375% 10/01/29 6,000 7,514
China International Trust & Investment Corp.
9.00% 10/15/06 2,870 3,258
Citicorp
9.75% 08/01/99 5,000 5,624
Cleveland Electric Illuminating Co.
7.42% 08/01/01 10,000 9,905
CoAmerica Bank
7.50% 01/17/96 9,700 9,713
Columbia/HCA Healthcare
8.36% 04/15/24 8,200 9,624
Dean Witter Discover & Co.
5.93% 09/29/97 12,000 12,000 (e)
Delta Air Lines Inc.
7.79% 12/01/98 9,000 9,421
9.875% 01/01/98 5,625 6,042
Dresdner Bank AG
7.25% 09/15/15 4,240 4,522
Duty Free International Inc.
7.00% 01/15/04 4,500 4,346
Equitable Life Assured Society
7.70% 12/01/15 4,200 4,258
Finova Capital Corp.
6.375% 10/15/00 6,300 6,401
6.75% 11/15/04 8,100 8,303
First USA Bank
5.93% 11/13/96 9,000 8,997 (e)
Ford Motor Credit Co.
7.25% 05/15/99 8,625 9,003
Ford Motor Credit Medium Term Note
5.98% 04/19/99 76,000 76,076 (e)
______________
See Notes To Schedules Of Investments And Finacial Statments
-12-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS) -- DECEMBER 31, 1995
_____________________________________________________________________________
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
Foster Technology Inc.
6.75% 11/15/05 $4,200 $4,329
General Motors Acceptance Corp.
5.93% 11/15/96 38,900 38,958 (e)
7.50% 01/29/98 13,000 13,479
7.65% 02/03/97 14,000 14,312
8.375% 01/19/99 9,500 10,194
General Motors Corp.
8.89% 08/18/03 4,300 4,956
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 5,550 5,851
Hanson Overseas B V
6.75% 09/15/05 2,800 2,900
Harnischfeger Industries
7.25% 12/15/25 6,450 6,506
HSBC Finance Nederland B.V.
7.40% 04/15/03 4,950 5,190 (b)
Hydro Quebec
8.05% 07/07/24 5,875 6,708
8.25% 04/15/26 4,000 4,542
11.75% 02/01/12 9,610 14,143
Istituto Banca San Paolo
6.275% 08/25/00 13,000 12,968(e)
ITT Corporation (new)
6.25% 11/15/00 6,300 6,365
Joy Technologies Inc.
10.25% 09/01/03 8,150 9,230
K Mart Funding Corp.
9.44% 07/01/18 4,000 3,349
KFW International Finance Inc.
8.20% 06/01/06 10,500 12,255
Landeskreditbank Baden
7.875% 04/15/04 8,220 9,222
Lehman Brothers Holdings Inc.
6.875% 06/08/98 2,450 2,495
8.375% 02/15/99 4,800 5,104
Lehman Brothers Inc.
7.125% 07/15/02 8,400 8,685
Liberty Mutual Insurance Co.
8.20% 05/04/07 8,250 9,148 (b)
8.50% 05/15/25 2,350 2,616 (b)
Long Island Lighting Co.
9.75% 05/01/21 10,500 10,801
Markel Corp.
7.25% 11/01/03 4,200 4,321
Massachusetts Mutual Life Insurance
13.064% 12/16/96
(Cost $8,548 - 12/31/85) 14,407 13,626 (h)
McDonnell Douglas Finance Corp.
6.135% 05/28/96 3,800 3,805 (e)
Merrill Lynch & Co. Inc.
6.032% 05/19/98 40,100 40,100 e)
6.033% 05/19/98 3,900 3,900 (e)
6.64% 09/19/02 6,000 6,162
Methanex Corp.
7.40% 08/15/02 3,960 4,144
Metropolitan Life Insurance Co.
7.80% 11/01/25 6,100 6,355 (b)
Morgan Stanley Group Inc.
6.082% 05/18/98 26,600 26,645 (e)
Multiva Mexico Trust Corp.
9.75% 06/09/97 4,700 4,136 (b)
Nationsbank Corp.
7.55% 01/09/96 9,700 9,700 (e)
Nationwide CSN Trust
9.875% 02/15/25 8,000 9,325 (b)
New American Capital Inc.
7.688% 04/12/00 8,700 8,711 (b,e)
Newfoundland Province Canada
9.875% 06/01/20 10,000 13,343
News America Holdings Inc.
9.125% 10/15/99 5,000 5,527
10.125% 10/15/12 12,100 14,643
Niagara Mohawk Power Corp.
8.77% 01/01/18 4,000 3,600
North Atlantic Energy Corp.
9.05% 06/01/02 13,849 14,316
Ontario Province Canada
7.00% 08/04/05 5,310 5,653
Oryx Energy Co.
10.00% 06/15/99 3,150 3,418
Paramount Communications Inc.
5.875% 07/15/00 3,200 3,157
Petroleos Mexicanos
6.813% 03/08/99 7,915 7,044 (b)
______________
See Notes To Schedules Of Investments And Finacial Statments
-13-
<PAGE>
S&S LONG TERM INTEREST FUND
(DOLLARS IN THOUSANDS)
_____________________________________________________________________________
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
Prudential Insurance Co. America
8.30% 07/01/25 $2,150 $2,308 (b)
Public Service Co.
8.875% 05/15/96 5,150 5,206
Quaker Oats Co.
6.71% 07/13/05 4,100 4,222
7.28% 08/29/05 4,050 4,334
Republic of Italy
6.875% 09/27/23 4,700 4,590
7.87% 09/27/01 4,125 2,886 (d)
7.939% 03/27/02 4,125 2,794 (d)
7.975% 03/27/01 4,100 2,973 (d)
8.019% 09/27/02 4,125 2,696 (d)
8.975% 03/27/13 4,125 1,166 (d)
8.985% 09/27/13 3,250 889 (d)
RHG Finance Corp.
8.875% 10/01/05 3,000 3,143
RJR Nabisco Inc.
8.75% 08/15/05 3,000 3,073
Royal Caribbean
11.375% 05/15/02 1,900 2,085
Smurfit Capital
7.50% 11/20/25 12,000 12,517
Societe Nationale Des Chemins
8.875% 12/01/24 4,000 5,044 (b)
St. George Bank Ltd.
7.15% 10/15/05 4,900 5,072 (b)
Swiss Bank Corp.
7.50% 07/15/25 3,500 3,830
Taubman Realty Group L.P.
8.00% 06/15/99 10,550 11,055
Tele-Communications Inc.
6.43% 03/09/98 5,350 5,399
7.13% 02/02/98 5,050 5,163
8.75% 08/01/15 5,250 5,820
9.25% 04/15/02 4,200 4,772
Time Warner Entertainment Co. L.P.
10.15% 05/01/12 6,875 8,522
Time Warner Inc.
7.75% 06/15/05 4,175 4,346
7.95% 02/01/00 4,200 4,428
Toledo Edison Co.
7.38% 03/31/00 10,750 10,481
Tosco Corp.
7.00% 07/15/00 3,700 3,767
Unisys Corp.
10.625% 10/01/99 9,800 8,673
United Air Lines Inc.
9.75% 08/15/21 1,300 1,560
10.67% 05/01/04 3,040 3,667
11.21% 05/01/14 3,875 5,129
United Co. Financial Corp.
7.00% 07/15/98 3,600 3,673
USX Marathon Group
8.875% 09/15/97 10,000 10,477
Viacom Inc.
7.75% 06/01/05 14,700 15,611
Woolworth Corp.
7.00% 06/01/00 6,375 6,487
TOTAL CORPORATE NOTES
(COST $926,644) 952,412
MORTGAGE-BACKED-40.0%
Federal Home Loan Mortgage Corp.
6.25% 11/01/12 394 393
6.50% 11/01/03
- 08/01/25 118,879 119,116
6.50% TBA 38,410 38,614 (c)
6.75% 10/01/03
- 03/01/06 627 635
7.00% 02/01/09
- 08/01/25 13,870 14,130
7.00% TBA 159,200 160,593 (c)
7.25% 04/01/04 1,858 1,890
7.50% 12/01/05
- 06/01/23 36,683 37,641
7.75% 05/01/08 982 1,019
8.00% 04/15/20
- 07/01/25 6,861 7,178
8.00% 08/01/08 7,482 7,753 (b)
8.00% TBA 25,970 26,911 (c)
8.00% 12/01/00
- 05/01/09 15,161 15,712 (i)
8.25% 05/01/12 785 816
8.50% 04/01/12 294 308
8.50% 12/01/99
- 11/01/10 19,660 20,542 (i)
8.75% 08/01/05
- 05/01/08 7,925 8,279
9.00% 10/01/09
- 11/01/16 10,792 11,430
472,960
Federal National Mortgage Assoc.
6.00% 12/01/08
- 07/01/09 18,760 18,566
6.50% 06/01/14 14,967 15,074
______________
See Notes To Schedules Of Investments And Finacial Statments
-14-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS) -- DECEMBER 31, 1995
_____________________________________________________________________________
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
7.00% 07/01/23 $58 $59
8.00% 08/01/24 1 1
8.50% 08/01/11
- 12/01/24 7,515 7,882
9.00% 07/01/07
- 07/01/25 79,723 84,256
125,838
Government National Mortgage Assoc.
7.50% 02/15/22
- 08/15/24 38,159 39,306
7.50% 03/20/25 22,790 23,211 (i)
8.00% 07/15/16
- 12/15/25 144,292 150,509
8.25% 05/15/08 499 527
9.00% 07/15/09
- 12/15/19 114,622 124,043
9.50% 12/15/09
- 11/15/20 16,921 18,565
356,161
Collateralized Mortgage Obligations
Aetna Commercial Mortgage Trust
6.422% 12/26/30 10,270 10,296
American Housing Trust
14,174% 01/25/21 5 2,191 (g)
American Southwest Financial Securities Corp.
0.70% 01/18/09 38,387 1,218 (g)
1.078% 01/18/09 52,957 2,921 (g)
7.30% 10/17/01 6,109 6,351
Asset Securitization Corp.
7.10% 08/13/29 10,236 10,724
Community Program Loan Trust
4.50% 10/01/18 23,460 20,718
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 6,536 6,658 (b)
6.85% 12/17/27 6,127 6,244 (b)
FDIC REMIC Trust
6.15% 01/25/25 199 198 (e)
7.85% 09/25/25 14,150 14,595
Federal Home Loan Mortgage Corp.
3.50% 11/15/07 20,697 17,353
1089.16% 09/15/22 122 2,433
Federal National Mortgage Assoc.
2.21% 07/25/10 41,000 5,586 (g)
2.335% 07/25/10 10,660 1,223 (g)
2.525% 07/25/10 25,882 2,483 (g)
8.00% 07/01/24 26,382 5,936 (g)
8.921% 10/01/24 26,120 21,875 (d,f)
9.967% 08/25/23 12,121 10,227 (d,f)
Federal National Mortgage Assoc. REMIC
6.25% 07/25/07 3,500 3,512
6.965% 07/25/10 10,190 10,534
LB Commercial Conduit Mortgage Trust
2.37% 05/25/05 89,838 10,286 (g)
7.144% 08/25/04 8,615 8,874
Merrill Lynch Mortgage Investor's Inc.
7.115% 05/25/15 10,899 11,192
7.523% 06/15/21 9,837 10,101
Mid-State Trust
8.33% 04/01/30 31,287 33,828
Residential Resources Inc.
8.00% 10/01/18 4,710 4,866
Salomon Brothers Mortgage Securities Inc.
8.125% 11/01/12 5,784 6,015
Sawgrass Finance REMIC Trust
6.45% 01/20/06 11,550 11,725
Vornado Finance Corp.
6.36% 12/01/00 23,125 23,067 (b)
283,230
TOTAL MORTGAGE-BACKED
(COST $1,215,338) 1,238,189
TOTAL BONDS AND NOTES
(COST $3,606,628) 3,701,655
<CAPTION>
Number
Expiration Date/ of
Strike Price Contracts Value
____________________________________________________________________________
CALL OPTIONS PURCHASED-0.0%
____________________________________________________________________________
<S> <C> <C> <C>
U.S. Treasury Note Jan. 96/103.25 5,140,000 166
(cost $67)
TOTAL INVESTMENTS IN SECURITIES
(COST $3,606,695) $3,701,821
______________
See Notes To Schedules Of Investments And Finacial Statments
-15-
<PAGE>
S&S LONG TERM INTEREST FUND
(DOLLARS IN THOUSANDS)
_____________________________________________________________________________
<CAPTION>
PRINCIPAL
AMOUNT VALUE
_________________________________________________________________
<S> <C> <C>
SHORT TERM INVESTMENTS-8.0%
_________________________________________________________________
U.S. GOVERNMENT AGENCIES, CERTIFICATES OF
DEPOSITS AND TIME DEPOSITS-7.8%
Algemene Bank Nederland N.V.
7.39% 01/12/96 $9,520 $9,520
Bank of Nova Scotia
5.844% 01/04/96 23,900 23,900
Deutsche Bank AG
5.82% 01/05/96 60,000 60,000
Dresdner Bank AG
5.844% 01/03/96 6,100 6,100
Federal Farm Credit Bank
5.72% 01/02/96 3,300 3,299 (d)
Federal Home Loan Bank
5.40% 01/11/96 23,680 23,644 (d)
5.75% 01/02/96 5,000 4,999
Federal Home Loan Mortgage Corp.
5.60% 01/03/96 41,210 41,197 (d)
5.75% 01/02/96 22,680 22,678
Federal National Mortgage Assoc.
5.33% 05/22/96 10,000 9,790 (d)
Goldman Sachs Group LP
6.05% 01/03/96 20,000 19,993
San Paolo
6.40% 01/02/96 9,250 9,248
State Street Cayman Islands
5.875% 01/02/96 6,600 6,600
240,968
REPURCHASE AGREEMENT-0.2%
State Street Bank and Trust Co.
5.75% 01/02/96 6,500 6,500
(dated 12/29/95, proceeds
$6,504, collateralized by $6,634
United States Treasury Note,
9.25%, 2/01/16)
TOTAL SHORT TERM INVESTMENTS
(COST $247,468) 247,468
OTHER ASSETS AND
LIABILITIES, NET (27.6%) (853,267)
_________
NET ASSETS - 100% $3,096,022
_________
_________
OTHER INFORMATION
_________________________________________________________________
The S&S Long Term Interest Fund had the following Long Futures
Contract open at December 31, 1995:
<CAPTION>
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
_______________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. Treasury March 1996 783 $95,110 $2,154
</TABLE>
______________
See Notes To Schedules Of Investments And Finacial Statments
-16-
<PAGE>
NOTES TO PERFORMANCE (UNAUDITED)
Total returns assume changes in share price and reinvestment of dividends
and capital gains. Investment returns and principal value on an investment
will fluctuate and you may have a loss or gain when you sell your shares.
The Standard & Poor's Composite Index of 500 Stocks (S&P 500), and the Lehman
Brothers Aggregate Bond Index, 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 U.S. stocks
recognized by investors to be representative of the stock market in general.
The Lehman Brothers Aggregate Bond Index 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 these indices
assume reinvestment of net dividends or interest.
The peer universe of funds used in our peer ranking calculation is based on
the blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal. The actual number of funds
and numerical rankings in these universes could differ since the Wall Street
Journal excludes certain funds which do not meet their net asset or
shareholder publication thresholds. Lipper is an independent mutual fund
rating service located in Summit, Jersey.
The Funds' portfolios are actively managed and their composition will vary
over time. Nationally recognized ranking services may compare a Fund's
performance to, or rank it within, a universe of mutual funds with investment
objectives and policies similar, but not necessarily identical to, the Funds.
Such comparisons or rankings are made on the basis of several factors,
including: objectives and policies, management style and strategy, and
portfolio composition. These comparisons may change over time if any of those
factors change.
The specific holdings cited throughout the report are for illustrative
purposes only and may not represent current or future investments of the
Funds. They are not intended to constitute a recommendation to purchase or
sell any particular security. See the GE S&S Program Disclosure Statement for
complete descriptions of investment objectives policies and permissible
investments.
-17-
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (DOLLARS IN THOUSANDS)
(a) Non-income producing security.
(b) Pursuant to Rule 144A of Securities Act of 1933, these securities may
be resold in transactions exempt from registration, normally to
qualified institutional buyers. At December 31, 1995, these securities
amounted to $13,574 and $108,671 or 0.6% and 3.5% of net assets for
the S&S Program Mutual Fund and S&S Long Term Interest Fund,
respectively.
(c) Settlement is on a delayed delivery or when issued basis with final
maturity to be announced (TBA) in the future.
(d) Coupon amount represents effective yield.
(e) Floating rate coupon. The stated rate represents the rate at
December 31, 1995.
(f) Principal only securities represent the right to receive the monthly
principal payments on an underlying pool of mortgages. No payments of
interest on the pool are passed through to the principal only holder.
(g) Interest only securities represent the right to receive the monthly
interest payments on an underlying pool of mortgages. Payments of
principal on the pool reduce the value of the interest only holding.
(h) Restricted securities. Securities are not registered under the
Securities Act of 1933, or have contractual or legal restrictions to
resale. Dates of acquisition and costs are shown in parentheses after
the titles of the restricted securities. The Funds do not intend to
register these securities and therefore should not bear any costs of
registration. These restricted securities are fair valued by officers of
the Funds under procedures authorized by the Trustees. At December 31,
1995, the fair value of these restricted securities represented $24,766
or 0.8% of net assets of S&S Long Term Interest Fund.
(i) Adjustable rate mortgage coupon. The stated rate represents the rate
at December 31, 1995.
(j) All or a portion of security out on loan.
ABBREVIATIONS:
ADR - American Depository Receipt
ARM - Adjustable Rate Mortgage
REMIC - Real Estate Mortgage Investment Conduit
-18-
<PAGE>
FINANCIAL HIGHLIGHTS
(SELECTED DATA BASED ON A SHARE OUTSTANDING DURING THE YEAR ENDED DECEMBER 31)
<TABLE>
<CAPTION>
S&S Long Term Interest Fund 1995 1994 1993 1992 1991
___________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.52 $11.64 $11.82 $12.03 $11.28
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income 0.80 0.74 0.77 0.89 0.97
Net realized and unrealized
gains (losses) on investments 1.07 (1.03) 0.36 (0.10) 0.75
___________________________________________________________________________________________
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.87 (0.29) 1.13 0.79 1.72
___________________________________________________________________________________________
LESS DISTRIBUTIONS FROM:
Net investment income 0.80 0.74 0.77 0.89 0.97
Net realized gains 0.00 0.09 0.54 0.11 0.00
___________________________________________________________________________________________
TOTAL DISTRIBUTIONS 0.80 0.83 1.31 1.00 0.97
___________________________________________________________________________________________
NET ASSET VALUE, END OF YEAR $11.59 $10.52 $11.64 $11.82 $12.03
___________________________________________________________________________________________
TOTAL RETURN 18.34% (2.50%) 9.80% 6.92% 16.03%
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year
(in thousands) $3,096,022 $2,806,433 $3,238,094 $3,053,167 $2,523,428
Ratio of net investment income
to average net asset 7.18% 6.66% 6.36% 7.55% 8.60%
Ratio of expenses to
average net assets 0.11% 0.11% 0.07% 0.07% 0.06%
Portfolio turnover rate 314% 219% 154% 45% 65%
</TABLE>
____________________
See Notes To Financial Statements
-20-
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
S&S LONG TERM
INTEREST FUND
<S> <C>
ASSETS
Investments in securities, at market
(Cost $1,762,892 and $3,606,695, respectively) $3,701,821
Short term investments (at amortized cost) 247,468
Cash 905
Foreign currency (Cost $35 and
$2, respectively) 2
Receivable for investments sold 0
Dividends receivable 0
Interest receivable 42,101
Tax reclaim receivable 292
Variation margin receivable 269
___________________________________________________________________
TOTAL ASSETS 3,992,858
___________________________________________________________________
LIABILITIES
Distributions payable to shareholders 626
Payable upon return of securities loaned 665,696
Payable for investments purchased 225,492
Payable for fund shares repurchased 3,698
Payable to GEIC 1,324
___________________________________________________________________
TOTAL LIABILITIES 896,836
___________________________________________________________________
NET ASSETS $3,096,022
___________________________________________________________________
NET ASSETS CONSIST OF:
Capital paid in 3,029,136
Undistributed net investment income 61
Accumulated net realized loss (30,464)
Net unrealized appreciation on:
Investments 95,126
Futures 2,154
Foreign currency transactions 9
___________________________________________________________________
NET ASSETS $3,096,022
___________________________________________________________________
Shares outstanding ($25 00 and $10 00 par value,
respectively) 267,039
Net asset value, offering and redemption
price per share $11.59
</TABLE>
__________________
See Notes to Financial Statements
-21-
<PAGE>
STATEMENTS OF
OPERATIONS DECEMBER 31, 1995 (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
S&S LONG TERM
INTEREST FUND
<S> <C>
INVESTMENT INCOME
INCOME:
Dividends $ 0
Interest 217,579
Less: Foreign taxes withheld 0
______________________________________________________________
TOTAL INCOME 217,579
______________________________________________________________
EXPENSES:
Administrative expenses 1,346
Shareholder servicing agent expenses 535
Transfer agent expenses 806
Custody and accounting 498
Professional fees 76
Registration, filing, printing and
miscellaneous expenses 21
______________________________________________________________
TOTAL EXPENSES 3,282
______________________________________________________________
NET INVESTMENT INCOME 214,297
______________________________________________________________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments 75,866
Futures 19,173
Written options 255
Foreign currency transactions (1,617)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments 191,174
Futures 2,154
Foreign currency transactions (136)
______________________________________________________________
Net realized and unrealized gain (loss)
on investments 286,869
______________________________________________________________
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 501,166
______________________________________________________________
</TABLE>
_________________
See Notes to Financial Statements
-22-
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994 (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
S&S LONG TERM
INTEREST FUND
1995 1994
___________________________________________________________________
<S> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $214,297 $195,503
Net realized gain (loss) on investments,
futures, written options and foreign
currency transactions 93,677 (123,753)
Net increase (decrease) in unrealized
appreciation/depreciation 193,192 (149,666)
___________________________________________________________________
Net increase (decrease)
from operations 501,166 (77,916)
___________________________________________________________________
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (214,631) (195,502)
Net realized gains 0 (24,774)
Tax basis return of capital 0 0
___________________________________________________________________
TOTAL DISTRIBUTIONS (214,631) (220,276)
___________________________________________________________________
Increase (decrease) in net assets from
operations and distributions 286,535 (298,192)
___________________________________________________________________
SHARE TRANSACTIONS:
Proceeds from sale of shares 173,063 53,081
Value of distributions reinvested 206,902 213,085
Cost of shares redeemed (376,911) (399,635)
___________________________________________________________________
Net increase (decrease) from
share transactions 3,054 (133,469)
___________________________________________________________________
TOTAL INCREASE (DECREASE) IN NET ASSETS 289,589 (431,661)
NET ASSETS
Beginning of year 2,806,433 3,238,094
___________________________________________________________________
End of year $3,096,022 $2,806,433
___________________________________________________________________
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT
INCOME, END OF YEAR $61 $(827)
___________________________________________________________________
CHANGES IN FUND SHARES
___________________________________________________________________
Shares sold 15,429 5,027
Issued for distributions reinvested 18,554 19,518
Shares redeemed (33,615) (36,173)
___________________________________________________________________
NET INCREASE (DECREASE) IN FUND SHARES 368 (11,628)
___________________________________________________________________
</TABLE>
______________
See Notes to Financial Statements
-23-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (DECEMBER 31, 1995)
1. ORGANIZATION OF THE FUNDS
The S&S Program Mutual Fund and S&S Long Term Interest Fund (the
"Funds") are registered under the Investment Company Act of 1940
(as amended) ("the 1940 Act") as diversified, open-end management investment
companies and are authorized to issue an unlimited number of shares. The
Funds are two of the investment options offered under the GE Savings &
Security Program ("Program"). The Program, through a trust, owns 53% of the
S&S Program Mutual Fund and 72% of the S&S Long Term Interest Fund. The Funds
operate as Employees' Securities Companies (as defined in the 1940 Act) and
as such are exempt from certain provisions of the 1940 Act.
2. Summary of Significant
Accounting Policies
The following summarizes the significant accounting policies of the Funds:
SECURITY VALUATION AND TRANSACTIONS
Securities for which exchange quotations are readily available are valued at
the last sale price, or if no sales occurred on that day, at the quoted bid
price. Certain fixed income securities are valued by a dealer or by a
pricing service based upon a computerized matrix system, which considers
market transactions and dealer supplied valuations.
Futures contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are principally traded. Options
traded on an exchange are valued using the last sale price or, in the absence
of a sale, the last offering price. Options traded over-the-counter are
valued using dealer-supplied valuations. Forward foreign currency contracts
are valued at the mean between the bid and the offered forward rates as last
quoted by a recognized dealer.
Short Term investments maturing within 60 days are valued at amortized cost
or original cost plus accrued interest, each of which approximates market
value.
Portfolio positions which cannot be valued as set forth above are valued at
fair value determined under procedures approved by the Trustees.
Transactions are accounted for as of the trade date. Cost is determined and
gains and losses are based upon the specific identification method for both
financial statement and federal tax purposes.
The Funds may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the time
the transaction is negotiated. This may increase the risk if the other party
involved in the transaction fails to deliver and causes a Fund to
subsequently invest at less advantageous yields. In connection with such
purchases the Funds are required to hold collateral (cash, U.S. Government
securities or other liquid, high grade debt obligations) with the Funds'
custodian sufficient to cover the purchase price, unless they enter into an
offsetting contract for the sale of equal securities and value.
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities and purchases and sales of
investment securities are denominated in foreign currency and translated to
U.S. dollars at the prevailing exchange rate on the respective dates of such
transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments. Reported net realized exchange gains or losses from foreign
currency transactions represent sale of foreign currencies, currency gains or
losses between the trade date and the settlement date on securities
transactions, realized gains and losses on forward foreign currency
contracts, and the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from
-24-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
changes in the value of assets and liabilities other than investments in
securities at fiscal year end, as a result of changes in the exchange rate.
INCOME TAXES
It is each Fund's policy to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of
its taxable income and gains to its 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.
Capital loss carryovers are available to offset future realized capital
gains. To the extent that these carryover losses are used to offset future
capital gains, it is probable that the gains so offset will not be
distributed to shareholders because they would be taxable as ordinary income.
At December 31, 1995, the S&S Long Term Interest Fund had a capital loss
carryover of $28,222,638. The carryforward expires on December 31, 2002.
INVESTMENT INCOME
Corporate actions (including cash dividends) are recorded net of
nonreclaimable tax withholdings on the ex-dividend date, except for certain
foreign securities for which corporate actions are recorded as soon as such
information is available. Interest income is recorded on the accrual basis.
All discounts and premiums on taxable bonds are amortized to call or maturity
date, whichever is shorter using the effective yield method.
EXPENSES
Expenses of the Funds which are directly identifiable to a specific Fund are
allocated to that Fund. Expenses which are not readily identifiable to a
specific Fund are allocated in such a manner as deemed equitable, taking into
consideration the nature and type of expense and the relative sizes of the
Funds. All expenses of the Funds are paid by the Investment Advisor and
reimbursed by the Funds.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
DISTRIBUTIONS TO SHAREHOLDERS
The S&S Long Term Interest Fund declares investment income dividends daily
(paid monthly). The S&S Program Mutual Fund declares and pays dividends of
net investment income annually. Both Funds declare and pay net realized
capital gain distributions annually. The character of income and gains to be
distributed are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. Reclassifications
are made to the Portfolios' capital accounts to reflect income and gains
available for distribution (or available capital loss carryovers) under
income tax regulations. The calculation of net investment income per share
in the Financial Highlights table excludes these adjustments.
FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward") is an agreement between two
parties to buy and sell a currency at a set price on a future date. The
market value of the Forward fluctuates with changes in currency exchange
rates. The Forward is marked-to-market daily and the change in the market
value is recorded by the Fund as an unrealized gain or loss. When the
Forward is closed, the Fund records a realized gain or loss equal to the
difference between the value at the time it was opened and the value at the
time it was closed. The Fund could be exposed to risk if a counterparty is
unable to meet the terms of the contract or if the value of the currency
changes unfavorably. The Fund may enter into Forwards in connection with
planned purchases and sales of securities, to hedge specific receivables or
payables against changes in future exchange rates or to hedge the U.S. dollar
value of portfolio securities denominated in a foreign currency.
REPURCHASE AGREEMENTS
The Funds' custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Funds. It is the
policy of the Funds to value the underlying collateral daily on a
mark-to-market basis to determine that
-25-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
the value, including accrued interest, is at least equal to the repurchase
price. In the event of default of the obligation to repurchase, the Funds
have the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation.
FUTURES AND OPTIONS
The Funds may invest in futures contracts and may purchase and write options.
These investments involve, to varying degrees, elements of market risk and
risks in excess of the amount recognized in the Statement of Assets and
Liabilities. The face or contract amounts reflect the extent of the
involvement the Funds have in the particular classes of instruments. Risks
may be caused by an imperfect correlation between movements in the price of
the instruments and the price of the underlying securities and interest
rates. Risks also may arise if there is an illiquid secondary market for the
instruments, or due to the inability of counterparties to perform. The Funds
will invest in these instruments to hedge against the effects of changes in
value of portfolio securities due to anticipated changes in interest rates
and/or market conditions, to equitize a cash position, for duration
management, or when the transactions are economically appropriate to the
reduction of risk inherent in the management of the Fund involved.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as
unrealized gains and losses. The Fund recognizes a realized gain or loss
when the futures contract is closed. The Fund will realize a gain or loss
upon the expiration or closing of the option transaction. When an option is
exercised, the proceeds on sales for a written call option, the purchase cost
for a written put option, or the proceeds on the sale of the security for a
purchased put or cost of the security for a call option is adjusted by the
amount of premium received or paid.
SECURITY LENDING
The Funds may loan securities to well known and recognized U.S. and foreign
brokers and banks and receive a lenders fee. These fees are included in
interest income. The loans of securities will be collateralized by cash,
letters of credit or U.S. Government Securities. The collateral will be
segregated and maintained at all times with the custodian and must be equal
to the current value of the securities loaned. In the event the counterparty
(borrower) does not meet its contracted obligation to return the securities,
the Fund may be exposed to the risk of loss of reacquiring the loaned
securities at prevailing market prices.
OTHER
There are certain additional risks involved when investing in foreign
securities that are not inherent in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the imposition of unfavorable foreign governmental
laws and restrictions.
3. COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION COSTS
During 1995 the Funds incurred expenses for the cost of services directed by
General Electric Company's wholly owned subsidiary, General Electric
Investment Corporation ("GEIC"), as Investment Advisor and for services GEIC
rendered as shareholder servicing agent. These expenses are included as
administrative expenses and shareholder servicing agent fees in the Statement
of Operations. The Trustees received no compensation as trustees for the
Funds.
-26-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. AGGREGATE UNREALIZED APPRECIATION AND
DEPRECIATION
(DOLLARS IN THOUSANDS)
Aggregate gross unrealized appreciation/depreciation of investments for each
Fund at December 31, 1995, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
_________________________________________________________________
<S> <C> <C> <C>
S&S Program
Mutual Fund $526,808 $19,773 $507,035
S&S Long Term
Interest Fund 102,553 7,427 95,126
</TABLE>
The aggregate cost of each Fund's investments was substantially
the same for book and federal income tax purposes at
December 31, 1995.
5. OPTIONS
(DOLLARS IN THOUSANDS)
During the year ended December 31, 1995 the following option
contracts were written:
<TABLE>
<CAPTION
S&S LONG TERM INTEREST FUND
__________________________________________________________
NUMBER
OF CONTRACTS PREMIUM
__________________________________________________________
<S> <C> <C>
Balance as of
December 31, 1994 0 $0
Written 171,975 828
Closed and Expired (119,875) (600)
Exercised (52,100) (228)
_______ ______
Balance as of
December 31, 1995 0 $0
_______ ______
_______ ______
</TABLE>
6. INVESTMENT TRANSACTIONS
(DOLLARS IN THOUSANDS)
The cost of purchases and the proceeds from sales of
investments, other than U.S. Government obligations,
short-term investments and options, for the year ended
December 31, 1995, were:
<TABLE>
<CAPTION>
PURCHASES SALES
_______________________________________________________
<S> <C> <C>
S&S Program
Mutual Fund $945,318 $904,776
S&S Long Term
Interest Fund 4,017,788 4,252,460
</TABLE>
The cost of purchases and the proceeds from sales of
long-term U.S. Government obligations for the year ended
December 31, 1995, were:
<TABLE>
<CAPTION>
PURCHASES SALES
_______________________________________________________
<S> <C> <C>
S&S Program
Mutual Fund $5,623 $28,016
S&S Long Term
Interest Fund 6,979,709 6,713,406
</TABLE>
7. SECURITY LENDING
At December 31, 1995, the S&S Long Term Interest Fund loaned securities
having a value, including accrued interest, of approximately $659,616,027 and
received $672,646,783 in cash and letters of credit as collateral for the
loans. Cash collateral received is invested in high grade liquid debt
obligations and short term investments at December 31, 1995.
-27-
<PAGE>
INDEPENDENT AUDITORS' REPORT
[GRAPHIC]
Logo for KPMG Peat Marwick LLP
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
OF THE GE S&S MUTUAL FUNDS:
We have audited the accompanying statements of assets and liabilities of the
GE S&S Program Mutual Fund and GE S&S Long Term Interest Fund, including the
schedules of investments, as of December 31, 1995, and the related statements
of operations for the year then ended, the statements of changes in net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of GE
S&S Program Mutual Fund and GE S&S Long Term Interest Fund as of December 31,
1995, the results of their operations for the year then ended, the changes in
their net assets for each of the years in the two-year period then ended, and
their financial highlights for each of the years in the five-year period then
ended, in conformity with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
New York, New York
February 8, 1996
-28-
<PAGE>
GE S&S PROGRAM SUPPLEMENTARY INFORMATION
INTRODUCTION
The following information is provided for participants in the GE Savings
& Security Program and supplements the description of the Program as
it appears in the GE Employee Benefits Summary Plan Description booklet,
as amended (GE Benefits Handbook).
The Schedules of Investments for the S&S Short Term Interest Fund and
S&S Money Market Fund have been included as an additional feature.
Following the Schedules of Investments are two tables designed to
illustrate the relative market value of investments offered under the
Program. Performance data information is based upon historical earnings
and is not intended to indicate future performance. The notes are an
integral part of these tables.
The Supplemental Information and Schedules of Investments have not been
audited.
-29-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS -- DECEMBER 31, 1995
(UNAUDITED)
_____________________________________________________________________________
S&S SHORT TERM INTEREST FUND
_____________________________________________________________
<TABLE>
<CAPTION>
Principal
Amount Value
_____________________________________________________________
<S> <C> <C>
BONDS AND NOTES-119.3%
_____________________________________________________________
U.S. TREASURIES-34.0%
U.S. Treasury Notes
5.125% 02/28/98 $82,000 $ 81,859 (j)
5.50% 11/15/98 9,100 9,167
5.875% 07/31/97 9,305 9,398 (j)
6.375% 01/15/99 49,100 50,627 (j)
7.00% 04/15/99 44,000 46,227
7.375% 11/15/97 92,660 96,163 (j)
TOTAL U.S. TREASURIES
(COST $291,619) 293,441
ASSET BACKED--28.2%
Advanta Credit Card Master Trust Corp.
6.098% 09/01/00 7,274 7,276 (e)
6.218% 10/01/01 4,080 4,090 (e)
Advanta Mortgage Loan Trust Corp.
6.125% 10/25/26 2,547 2,546 (e)
6.30% 07/25/25 5,561 5,472
6.31% 04/25/26 8,087 8,109 (e)
Caterpillar Financial Asset Trust
6.10% 06/25/00 914 918
CIT RV Grantor Trust
4.90% 07/15/09 5,725 5,633
Discover Card Master Trust
6.128% 04/16/02 4,000 4,002 (e)
6.288% 10/16/04 3,600 3,616 (e)
6.70% 02/16/00 9,100 9,268
EQCC Home Equity Loan Trust
5.80% 03/15/09 9,756 9,556
First Deposit Master Trust
4.90% 06/15/00 7,500 7,490
6.05% 08/15/02 10,500 10,638
First USA Credit Card Master Trust
6.108% 04/15/03 1,150 1,149 (e)
6.158% 12/15/99 2,000 2,002 (e)
6.238% 02/15/00 8,000 8,020 (e)
6.288% 10/15/03 1,300 1,306 (e)
6.308% 08/15/03 2,600 2,614 (e)
S&S Short Term Interest Fund
Fleetwood Credit Grantor Trust
6.00% 01/15/08 6,712 6,710
6.55% 05/16/11 3,678 3,735
HFC Home Equity Loan
4.65% 12/20/08 4,867 4,794
ITT Floorplan Receivables
6.138% 02/15/01 1,800 1,801 (e)
MBNA Master Credit Card Trust
5.86% 03/15/00 5,800 5,807 (e)
6.108% 01/16/02 10,000 10,000 (e)
Merrill Lynch Credit Corp.
6.338% 10/15/20 2,539 2,539 (e)
Morgan Stanley Capital Inc.
6.388% 10/15/04 2,290 2,311 (e)
Option One
6.306% 11/20/26 5,668 5,668 (e)
Peoples Bank Credit Card Master Trust
6.088% 03/15/01 4,000 4,001 (e)
Premier Auto Trust
5.95% 12/06/98 14,000 14,075
6.45% 05/02/98 4,890 4,934
7.15% 02/04/99 17,140 17,536
Society Student Loan Trust
6.20% 07/25/03 16,766 16,766 (e)
Southern Pacific Secured Assets Corp.
6.125% 10/25/25 2,016 2,015 (e)
Standard Credit Card Master Trust
4.65% 03/07/99 12,400 12,292
5.82% 05/08/00 12,000 12,004 (e)
Structured Asset Securities Corp.
6.87% 08/25/26 5,818 5,900
The Money Store Home Equity Trust
5.675% 02/15/09 11,346 10,977
TLFC IV Equipment Lease Trust
6.40% 09/15/01 4,831 4,863
Wachovia Credit Card Master Trust
6.108% 03/15/03 600 600 (e)
TOTAL ASSET BACKED
(COST $242,808) 243,033
______________
See Notes To Schedules Of Investments And Finacial Statments
-30-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
_____________________________________________________________________________
<CAPTION>
Principal
Amount Value
_____________________________________________________________
<S> <C> <C>
CORPORATE NOTES-33.9%
A T & T Capital Corp.
7.59% 01/31/97 $10,000 $10,212
Advanta Corp.
5.125% 11/15/96 10,000 9,943
6.02% 11/13/97 11,900 11,942
AMR Corp.
7.75% 12/01/97 5,000 5,135
Arkla Inc.
8.74% 05/14/98 4,750 4,979
8.875% 07/15/99 4,150 4,451
9.875% 04/15/97 3,000 3,143
Ashland Oil Co
10.125% 04/15/96 5,000 5,056
Capital One Bank
6.48% 08/15/97 16,805 16,967
Chase Manhattan Corp.
7.50% 12/01/97 8,000 8,272
Dean Witter Discover & Co.
5.93% 09/29/97 4,000 4,000 (e)
Digital Equipment Corp.
7.00% 11/15/97 2,000 2,029
Electronic Data Systems Corp.
6.85% 05/15/00 3,000 3,112 (b)
First USA Bank
5.93% 11/13/96 2,550 2,549 (e)
6.125% 10/30/97 12,250 12,312
Ford Motor Credit Medium Term Note
5.98% 04/19/99 22,000 22,022 (e)
General Motors Acceptance Corp.
5.93% 11/15/96 10,700 10,716 (e)
6.70% 04/18/97 7,500 7,606
6.75% 07/10/97 9,200 9,358
8.35% 09/05/96 12,375 12,593
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 9,750 10,279
Great Northern Nekoosa Corp.
9.125% 02/01/98 4,300 4,571
Henderson Land Finance
6.00% 12/08/98 8,000 7,780
Istituto Banca San Paolo
6.275% 08/25/00 3,700 3,691 (e)
Lehman Brothers Holdings Inc.
6.875% 06/08/98 2,000 2,037
Magma Copper Co.
12.00% 12/15/01 2,850 3,174
McDonnell Douglas Finance Corp.
6.135% 05/28/96 1,000 1,001 (e)
Merrill Lynch & Co. Inc.
5.00% 12/15/96 5,000 4,975
Mexico United Mexican States
11.188% 07/21/97 . 8,000 8,140 (b)
Morgan Stanley Group Inc.
7.32% 01/15/97 3,750 3,812
New American Capital Inc.
7.688% 04/12/00 1,500 1,502 (b,e)
News America Holdings Inc.
12.00% 12/15/01 13,500 15,025
Pennzoil Co.
10.625% 06/01/01 6,700 7,585
Petroleos Mexicanos
6.813% 03/08/99 2,300 2,047 (b)
Public Service Co.
8.875% 05/15/96 8,000 8,087
Royal Caribbean
11.375% 05/15/02 1,825 2,003
Salomon Inc.
6.70% 12/01/98 5,925 5,953
Southern California Edison Co.
6.125% 07/15/97 5,000 5,040
Tele-Communications Inc.
7.13% 02/02/98 7,300 7,463
9.875% 04/01/98 5,000 5,405
Time Warner Inc.
7.45% 02/01/98 6,000 6,167
Unisys Corp.
9.75% 09/15/96 6,600 6,402
United Co. Financial Corp.
7.00% 07/15/98 3,450 3,520
TOTAL CORPORATE NOTES
(COST $289,868) 292,056
MORTGAGE-BACKED--23.2%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 3,088 3,067
7.50% 11/01/08 4,374 4,493
8.00% 03/01/02
- 08/01/03 74,202 76,574
84,134
__________________
See Notes to Schedules of Investments
-31-
<PAGE>
S&S SHORT TERM INTEREST FUND
(DOLLARS IN THOUSANDS) -- DECEMBER 31, 1995
(UNAUDITED)
_____________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
_____________________________________________________________
<S> <C> <C>
Federal National Mortgage Assoc.
6.00% 05/01/01 $1,207 $1,203
7.746% 07/01/22 3,301 3,356 (i)
8.00% 09/01/01
- 07/01/02 43,766 44,969
8.195% 12/01/27 3,747 3,892 (i)
8.476% 12/01/17 1,261 1,304 (i)
8.885% 10/01/21 2,578 2,711 (i)
57,435
Government National Mortgage Assoc.
7.50% 03/20/25 24,167 24,613 (i)
Collateralized Mortgage Obligations
FDIC REMIC Trust
6.15% 01/25/25 20,452 20,426 (e)
Federal Home Loan Mortgage Corp.
5.904% 07/15/19 1,969 1,884 (d,f)
Federal Home Loan Mortgage Corp. REMIC
543.498% 09/15/05 31 403 (g)
1002.00% 07/15/06 65 1,271 (g)
Federal National Mortgage Assoc. REMIC
6.085% 11/25/06 8,944 7,937 (d,f)
Salomon Brothers Mortgage Securities Inc.
8.125% 11/01/12 1,511 1,572
33,493
TOTAL MORTGAGE-BACKED
(COST $198,897) 199,675
TOTAL INVESTMENTS IN SECURITIES
(COST $1,023,192) 1,028,205
SHORT TERM INVESTMENTS--0.9%
_____________________________________________________________
CERTIFICATES OF DEPOSITS AND TIME DEPOSITS-0.9%
Bank of Montreal NY
6.25% 01/02/96 3,420 3,420
San Paolo
6.40% 01/02/96 2,180 2,180
State Street Cayman Islands
5.875% 01/02/96 2,000 2,000
TOTAL SHORT TERM INVESTMENTS
(COST $7,600) 7,600
OTHER ASSETS AND LIABILITIES
NET (20.2%) ($174,208)
_________
NET ASSETS--100% $861,597
_________
_________
</TABLE>
__________________
See Notes to Schedules of Investments
-32-
<PAGE>
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS) -- DECEMBER 31, 1995
(UNAUDITED)
_____________________________________________________________________________
S&S MONEY MARKET FUND
<TABLE>
<CAPTION>
Principal
Amount Value
_____________________________________________________________
<S> <C> <C>
SHORT TERM INVESTMENTS-100.8%
_____________________________________________________________
U.S. GOVERNMENTS (d)-38.9%
Federal Home Loan Bank
5.34% 05/15/96
- 05/21/96 $27,410 $ 26,846
5.35% 05/14/96 21,810 21,376
5.38% 04/15/96 28,400 27,954
5.40% 03/15/96 48,670 48,130
5.43% 02/20/96 10,000 9,924
5.57% 02/02/96 20,000 19,901
154,131
Federal Home Loan Mortgage Corp.
5.46% 03/19/96 19,100 18,874
5.75% 01/02/96 3,800 3,800
22,674
Federal National Mortgage Assoc.
5.27% 06/12/96 10,000 9,761
5.50% 02/20/96 15,290 15,173
5.55% 02/28/96 11,400 11,298
5.58% 01/04/96
- 01/25/96 41,130 41,030
77,262
TOTAL U.S. GOVERNMENTS
(COST $254,067) 254,067
COMMERCIAL PAPER--26.7%
Abbey National PLC
5.63% 02/23/96 30,000 29,751
Dresdner Bank AG
5.66% 02/16/96 30,000 29,783
First Union Corp.
5.55% 03/28/96 30,350 29,943
Kredietbank
5.70% 01/05/96 27,390 27,373
Merrill Lynch & Co. Inc.
5.72% 01/03/96 29,390 29,381
National Australia Funding
5.70% 01/12/96 28,380 28,330
TOTAL COMMERCIAL PAPER
(COST $174,561) 174,561
CERTIFICATES OF DEPOSIT-35.1%
Algemene Bank Nederland N.V.
5.65% 03/27/96 29,350 $29,350
Bank of Montreal NY
5.80% 01/25/96 28,600 28,600
Bank of Nova Scotia
5.78% 01/22/96 23,100 23,100
Bayerische Hypotheken Bank
5.80% 01/08/96 30,000 30,000
Deutsche Bank AG
5.75% 01/08/96 29,390 29,390
Royal Bank of Canada
5.69% 01/02/96 30,940 30,940
Societe Generale
5.66% 03/07/96 30,000 30,000
West Deutsche Landesbank
5.67% 01/04/96 27,600 27,600
TOTAL CERTIFICATES OF DEPOSIT
(COST $228,980) 228,980
TIME DEPOSITS--0.1%
State Street Cayman Islands
5.875% 01/02/96
(Cost $650) 650 650
TOTAL SHORT TERM INVESTMENTS
(COST $658,258) 658,258
OTHER ASSETS AND LIABILITIES,
NET (0.8%) (5,508)
_________
NET ASSETS--100% $652,750
_________
_________
</TABLE>
__________________
See Notes to Schedules of Investments
-33-
<PAGE>
GE S&S PROGRAM SUPPLEMENTAL INFORMATION
(UNAUDITED)
INVESTMENT AT $100 PER MONTH
The first table illustrates the cumulative value at each year end of an
assumed investment in the amount of $100 per month. The table covers an
investment beginning January 1, 1993, in U.S. Savings Bonds ("Bonds"),
GE Common Stock ("Stock"), S&S Program Mutual Fund ("Mutual Fund"), S&S
Short Term Interest Fund ("ST Fund"), S&S Long Term Interest Fund("LT Fund"),
and S&S Money Market Fund ("MM Fund").
VALUE OF INVESTMENT OF $100 PER MONTH (a)
Investment Beginning January 1, 1993
<TABLE>
<CAPTION>
Bonds Stock Mutual Fund
_______________________ _______________________ ___________________________
Cumulative Redemption Market Value Value
Amount Value Including Including
At Year Invested Cumulative Including Cumulative Reinvested Cumulative Reinvested
Ended In Each Accrued Accrued Reinvested Dividends Reinvested Distributions
Dec. 31 Media Interest Interest Dividends (b)(c) Distributions (b)(d)
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
1993 $1,200 $18 $1,218 $ 11 $1,358 $126 $1,264
1994 2,400 91 2,491 61 2,609 303 2,436
1995 3,600 215 3,815 159 5,268 778 4,702
<CAPTION>
ST Fund LT Fund MM Fund
_______________________ _______________________ ___________________________
Cumulative Value Value
Amount Including Cumulative Including Value
At Year Invested Cumulative Reinvested Reinvested Reinvested Cumulative Including
Ended In Each Accrued Interest Distributions Distributions Accrued Reinvested
Dec. 31 Media Interest (b) (d) (b) (d) (b) (d) Interest Interest
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
1993 $1,200 $36 $1,232 $91 $1,242 $21 $1,221
1994 2,400 145 2,468 235 2,447 105 2,505
1995 3,600 358 3,999 473 4,148 297 3,897
</TABLE>
NOTES:
(a) The Program provides for Proportionate Company Payments in
addition to Employee Contributions. The amounts shown are simply for
illustrative purposes and do not reflect any such Proportionate Company
Payments.
(b) Cumulative values include the year-end market value of Stock and
the share price of Mutual Fund, ST Fund, and LT Fund Shares purchased
through the reinvestment of income and dividends, as the case may be.
Capital gains distributions of $3.43, $1.71, and $3.73 per unit were
paid on Mutual Fund Shares in 1993, 1994 and 1995, respectively, and
capital gain distributions of $0.54, $0.09, and $0.00 per share were
paid on LT Fund Shares in 1993, 1994 and 1995, respectively.
(c) The market value of Stock is based on the closing price as of year
end, as reported by the Consolidated Tape of New York Stock Exchange
listed shares.
(d) The value of Mutual Fund, ST Fund, and LT Fund Shares is based on
the Share Price as of year end. Share Price, which is equal to the net
asset value per share, is determined in accordance with Section III of
the Rules of the Funds.
-34-
<PAGE>
GE S&S PROGRAM SUPPLEMENTAL INFORMATION
(UNAUDITED)
$1,000 INVESTMENT
This table illustrates the value at year end of an assumed investment of
$1,000 made on January 1, 1993 in Bonds, Stock, Mutual Fund, ST Fund, LT
Fund, and MM Fund.
VALUE OF INVESTMENT OF $1,000
Investment Made on January 1, 1993
Investment Beginning January 1, 1993
<TABLE>
<CAPTION>
Bonds Stock Mutual Fund
_______________________ _______________________ ___________________________
Redemption Market Value Value
Value Including Including
At Year Cumulative Including Cumulative Reinvested Cumulative Reinvested
Ended Accrued Accrued Reinvested Dividends Reinvested Distributions
Dec. 31 Interest Interest Dividends (b)(c) Distributions (b)(d)
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
1993 $39 $1,039 $22 $1,259 $120 $1,115
1994 91 1,091 57 1,260 204 1,095
1995 126 1,126 98 1,831 358 1,498
<CAPTION>
ST Fund LT Fund MM Fund
_______________________ _______________________ ___________________________
Value Value Redemption
Including Including Value
At Year Cumulative Reinvested Cumulative Reinvested Cumulative Including
Ended Accrued Interest Reinvested Distributions Accrued Reinvested
Dec. 31 Interest (b)(d) Distributions (b)(d) Interest Interest
_______________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
1993 $57 $1,052 $114 $1,078 $33 $1,033
1994 117 1,070 193 1,052 77 1,077
1995 191 1,187 276 1,244 143 1,143
</TABLE>
GE S&S Program Mutual Fund and S&S Long Term Interest Fund Operating
Expenses (as a percentage of average net assets) for the year ended
December 31, 1995:
<TABLE>
<CAPTION>
MUTUAL FUND LT FUND
__________________________________________________________________________
<S> <C> <C>
Management Expenses .06% .05%
Other Expenses .06% .06%
Total Fund operating expenses .12% .11%
</TABLE>
The following expenses would be paid on a $1,000 investment assuming 5%
annual return:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
__________________________________________________________________________
<S> <C> <C> <C> <C>
Mutual Fund $1 $4 $7 $15
LT Fund 1 4 6 14
</TABLE>
The purpose of this table is to assist the investor in understanding the
expenses that an investor in the Fund will bear indirectly. This example
should not be considered a representation of past or future expenses. Actual
expenses may be greater or lesser than those shown.
-35-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
GE SAVINGS AND SECURITY
PROGRAM
THE GE SAVINGS AND SECURITY PROGRAM (THE "S&SP") IS DESIGNED TO COMPLY WITH
SECTION 404(C) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, WHICH SETS
FORTH CERTAIN RIGHTS AND RESPONSIBILITIES FOR FIDUCIARIES. IN THE S&SP, YOU -
NOT THE COMPANY, THE TRUSTEES OR ANYONE ELSE - CONTROL YOUR OWN INVESTMENTS.
YOU HAVE A DIVERSE CHOICE OF INVESTMENT OPTIONS AND THE ABILITY TO MAKE
FREQUENT CHANGES, DEPENDING ON YOUR PERSONAL SAVINGS STRATEGY. AS A RESULT,
THE FIDUCIARIES OF THE S&SP WILL NOT BE LIABLE FOR LOSSES OCCURRING TO YOUR
ACCOUNT BECAUSE OF YOUR INVESTMENT CONTROL.
THIS DOCUMENT SETS FORTH INFORMATION ABOUT THE INVESTMENT ALTERNATIVES
AVAILABLE TO PARTICIPANTS OF THE S&SP AND IS BEING PROVIDED TO ASSIST THEM IN
MAKING INFORMED INVESTMENT DECISIONS. THIS DOCUMENT IS INTENDED TO CONSTITUTE
PART OF THE INFORMATION REQUIRED TO BE PROVIDED TO PARTICIPANTS BY SECTION
404(C) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT AND TITLE 29 OF THE
CODE OF FEDERAL REGULATIONS SECTION 2550.404C-1. FOR A DESCRIPTION OF CERTAIN
INFORMATION AVAILABLE TO PARTICIPANTS OF THE S&SP, SEE "ADDITIONAL
INFORMATION" BELOW. THE TERM "PARTICIPANTS" WHEN USED HEREIN REFERS TO
PARTICIPANTS AND/OR BENEFICIARIES OF THE S&SP, AS THE CASE MAY BE.
The S&SP provides employees of General Electric Company (the "Company")
and its participating affiliates an opportunity for convenient, regular and
substantial personal savings. Subject to certain restrictions more fully
described in the GE Benefits Handbook, the S&SP enables employees to invest
their savings in one or more of the following investment media:
a.Common Stock of the Company ("Stock");
b. GE S&S Program Mutual Fund
(the "Mutual Fund");
c. GE S&S Short Term Interest Fund (the "ST Fund");
d. GE S&S Long Term Interest Fund (the "LT Fund");
e. GE S&S Money Market Fund (the "MM Fund" and,
collectively with the Mutual Fund,
the ST Fund, and the LT Fund, the "Funds");
f. United States Savings Bonds ("Bonds"); and
g. Life Insurance.
DESCRIPTION OF INVESTMENT
ALTERNATIVES
I. BONDS
The Bonds in which participants may invest are Series "EE" Savings Bonds
issued by the U.S. Treasury. Such purchase may be made only from the
participant's after-tax savings. The option to purchase Bonds under the S&SP
is subject to numerous restrictions which are more fully described in the GE
Benefits Handbook.
II. STOCK
The participants may invest in shares of Stock. The Stock held in a
participant's account will increase or decrease in value depending on how
well the Stock performs in the stock market. Participants should be aware
that an investment in stock of any company, including the Stock, may be
subject to greater market volatility than investing in a diversified
portfolio of securities. There are no restrictions on the exercise of voting,
tender or similar rights appurtenant to a
-36-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
participant's investment in Stock. The option to purchase Stock under the S&SP
is more fully described in the GE Benefits Handbook.
It is the policy of the Trustees of the S&SP that information relating to
participant transactions and voting with respect to Stock in the S&SP shall
be maintained in confidence. While participants may easily access information
relating to their own accounts, third party access to participant information
is restricted through the use of PIN numbers. In addition, those individuals
whose jobs require them to have access to S&SP records are instructed
concerning the confidential nature of this information. The Trustees of the
S&SP (c/o General Electric Investment Corporation, 3003 Summer Street,
Stamford, CT 06905 (203-326-2300)) are responsible for monitoring compliance
with the procedures established to provide for the confidentiality of this
information.
RESALE OF SHARES ACQUIRED PURSUANT TO THE PLAN.
Officers of the Company may reoffer or resell Stock acquired pursuant to
the S&SP only in connection with a separate registration statement which has
been declared effective under the Securities Act of 1933, as amended (the
"1933 Act"), an amendment to the current Registration Statement on Form S-8
of the S&SP, or pursuant to an available exemption under the 1933 Act,
including the exemption provided by Rule 144 or any successor provisions
thereunder (hereinafter referred to as "Rule 144"), subject to certain
limitations set forth in Rule 144 but without regard to the two-year
holding period provided for under Rule 144. Officers of the Company who
acquire Stock pursuant to the S&SP should consult with their assigned
counsel to ascertain whether or not their position within the Company
requires compliance with the resale restrictions described above.
III. LIFE INSURANCE
Any participant may elect to apply 1% or 1/2% of his or her earnings to
the purchase of life insurance. Such purchase shall be from the participant's
after-tax savings. The option to purchase life insurance under the S&SP and
the benefits payable thereunder are more fully described in the GE Benefits
Handbook.
IV. INVESTMENTS IN THE FUNDS
A. INVESTMENT OBJECTIVES AND POLICIE
1. GE S&S PROGRAM MUTUAL FUND
The moneys received by the Mutual Fund will be invested principally in
common stock and in securities convertible into common
stock. Purchases will be made principally on the basis of opportunities for
long-term growth of capital and income. The Mutual Fund may keep a portion of
its assets in cash or invest the same in short-term obligations, including
repurchase agreements. Investments may also be made in preferred stocks and
in debt securities when such investments appear consistent with the long-term
objectives of the Mutual Fund. Securities may be sold without regard to the
length of time they have been held; however, they will not be purchased for
trading purposes.
Although the Mutual Fund is expected to invest primarily in securities
issued by U.S. companies, the Mutual Fund may also invest in foreign
securities, including securities of foreign issuers in the form of depositary
receipts. Additional instruments in which the Mutual Fund may invest include,
but are not limited to, securities rated lower than investment grade,
non-publicly traded securities, illiquid securities and securities that are
not registered under the the 1933 Act, but that can be sold to "qualified
institutional buyers" in accordance with Rule 144A under the 1933 Act
-37-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
("Rule 144A Securities"). In addition, the Mutual Fund may engage in certain
investment techniques and strategies, which may include entering into
securities transactions on a when-issued or delayed-delivery basis. These
instruments, investment techniques and strategies have risks and special
considerations associated with them that are described below under "Risk
Factors and Special Considerations."
2. GE S&S
SHORT TERM INTEREST FUND
The moneys received by the ST Fund will be invested in debt obligations
of the U.S. Government and its instrumentalities, banks and corporations, and
contracts with insurance companies. Investments will be made principally with
the objective of preserving principal and achieving a market-related interest
rate of return. Nevertheless, the ST Fund may keep a portion of its assets in
cash or invest the same in appropriate short-term obligations or in
intermediate-term obligations when such investments appear consistent with
the objective of the ST Fund. Securities may be sold without regard to the
length of time held; however, they will not be purchased for trading
purposes.
3. GE S&S LONG
TERM INTEREST FUND
The LT Fund portfolio will be invested with the objective of achieving a
high interest rate of return over a long-term period consistent with a degree
of risk determined by the Trustees of the LT Fund to be acceptable for the LT
Fund from time to time in their absolute discretion and consistent with
prudent investment management and preservation of capital. The moneys
received by the LT Fund will be invested in debt securities consisting of
corporate bonds and debentures acquired in the public market or in private
transactions, real estate sale-leasebacks and real estate mortgages secured
by net credit leases, obligations of the U.S. Government and its
instrumentalities, contracts with insurance companies, preferred stock and
other types of fixed income investments. In order to meet the requirements of
the LT Fund, the LT Fund may keep a portion of its assets in cash or in
appropriate short-term or intermediate-term obligations. The LT Fund may
participate in any available futures market with respect to the above
investments in order to reduce uncertainties associated with interest rate
fluctuations to the extent such participation is permitted by law and
consistent with the objectives of the LT Fund. The Trustees of the LT Fund
shall comply with the limitations on gross income and the requirements with
respect to the categories and diversification of LT Fund assets as are
applicable to regulated investment companies under the Internal Revenue
Code of 1986, as amended, and shall comply with the requirements
applicable to registered investment companies under the Investment
Company Act of 1940, as amended (the "1940 Act"), unless expressly excepted
therefrom. Any requirements with respect to categories and diversification
shall be determined by reference to the market value of the LT Fund at the
time of acquisition of the proposed investments. The LT Fund portfolio
will be diversified.
Additional instruments in which the LT Fund may invest include, but are
not limited to, obligations issued by foreign companies or foreign
governments or their agencies or instrumentalities, securities rated lower
than investment grade, non-publicly traded securities, repurchase agreements,
illiquid securities, Rule 144A Securities, securities of supranational
agencies, zero coupon obligations, floating and variable rate instruments,
mortgage related securities, ARMs, CMOs, government stripped mortgage related
securities, asset-backed and receivable-backed securities and money market
instruments. The LT Fund may also invest in indexed securities, the value of
which is linked to currencies, interest rates, commodities, indexes or other
financial indicators. In addition, the LT
-38-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
Fund may engage in certain investment techniques and strategies, which may
include purchasing and writing put and call options on securities, purchasing
put and call options on securities indexes, entering into interest rate,
financial and bond index futures contracts or related options that are traded
on a U.S. or foreign exchange or board of trade or in the over-the-counter
market, engaging in forward currency transactions, purchasing and writing put
and call options on foreign currencies, entering into securities transactions
on a when-issued or delayed-delivery basis, entering into mortgage dollar rolls
and lending portfolio securities. These other instruments, investment
techniques and strategies have risks and special considerations associated with
them that are described below under "Risk Factors and Special Considerations."
4. GE S&S
MONEY MARKET FUND
The investment objective of the MM Fund is to seek as high a level of
current income as is consistent with the preservation of capital and
liquidity within the standards prescribed by the Trustees of General Electric
Savings & Security Trust. The moneys received by the MM Fund will be invested
in money market instruments and in other debt securities maturing in one year
or less. Such instruments may include debt obligations of the U.S. Government
and its instrumentalities, debt obligations of banks, savings and loan
associations and corporations, and investments in other money market funds.
Such instruments may also include commercial paper and notes, including those
with floating or variable rates of interest, debt obligations of foreign
branches of foreign banks, debt obligations issued or guaranteed by one or
more foreign governments or any of their political subdivisions, agencies or
instrumentalities, including obligations of supranational entities, debt
securities issued by foreign issuers, and repurchase agreements.
Nevertheless, the Fund may keep a portion of its assets in cash. The MM Fund
may participate in any available futures market with respect to the above
investments in order to reduce uncertainties associated with interest rate
fluctuations to the extent such participation is permitted by law and
consistent with the objectives of the MM Fund.
The MM Fund, in addition to investing as described above, may hold Rule
144A Securities. In addition, the MM Fund may engage in certain investment
techniques and strategies, which may include entering into reverse repurchase
agreements, entering into securities transactions on a when-issued or
delayed-delivery basis and lending portfolio securities. These other
instruments, investment techniques and strategies have risks and special
considerations associated with them that are described below under "Risk
Factors and Special Considerations."
B. INVESTMENT RESTRICTIONS
1. THE MUTUAL FUND
Investments by the Mutual Fund shall be subject to the following
restrictions:
a. Moneys in the Mutual Fund will not be used in the underwriting
of securities or for the purchase of real estate, interests in real
estate, investment trusts, commodities or commodity contracts, or
invested in companies for the purpose of exercising control or
management, or invested in securities of registered investment
companies.
b. Moneys in the Mutual Fund will not be lent to
others, although they may be applied to the purchase of bonds and
debt securities of a type publicly distributed or customarily
purchased by institutional investors.
-39-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
c. The Mutual Fund will not acquire any securities if immediately
after such acquisition and as a result thereof (a) the Mutual Fund
would hold more than 10% of the outstanding voting securities of any
issuer, (b) more than 5% of the value of the total assets in the
Mutual Fund would be represented by the securities of any one issuer
(except securities of the U.S. Government and its instrumentalities),
(c) more than 25% of the value of the total assets in the Mutual Fund
would be invested in any particular industry, (d) more than 5% of the
value of the total assets in the Mutual Fund would be invested in
issuers which (including predecessors) have not been in continuous
operation for at least three years.
d. The Mutual Fund will not invest in securities of the Company or
its affiliates, or in securities of the investment manager, and will
not during the existence of any underwriting syndicate purchase any
securities for which its investment manager is acting as principal
underwriter.
e. The Mutual Fund will not purchase from or sell any of its
portfolio securities to the Company or its affiliates or its
investment manager or any officer or director of either.
f. The Mutual Fund will not engage in margin transactions or short
sales or participate in a joint trading account.
g. The Mutual Fund will not invest in puts, calls or similar
options.
h. The Mutual Fund will not mortgage or pledge any of its assets,
except the Mutual Fund may borrow money from the GE Savings and
Security Trust and secure repayment by pledging assets of the Mutual
Fund.
2. THE ST FUND, THE LT FUND AND THE MM FUND
The ST Fund, the LT Fund and the MM Fund will not:
a. purchase securities on margin or sell short or participate in a
joint trading account;
b. deal in options to buy or sell securities except to the extent
permitted by law;
c. borrow money or property except as a temporary measure to meet
the cash or administrative needs of such Funds. In no event will the
amount of such borrowings exceed 10% of such Funds' total assets
taken at market value at the time of such borrowing;
d. make cash loans to others except through the purchase of debt
securities in accordance with such Funds' investment objectives;
e. invest directly in real estate (except as specified in
Paragraph A.3. above with respect to investments of the LT Fund) or
invest in interests in oil, gas or other mineral lease or production
agreements;
f. act as an underwriter of securities for other issuers except
that such Fund may acquire securities under circumstances where if
they are later resold it may be deemed to be an underwriter under
the 1933 Act;
-40-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
g. purchase securities for the purpose of exercising control or
management;
h. pledge, mortgage or hypothecate any of its assets except, that,
to secure borrowings permitted by subparagraph c, it may pledge
securities which, together with all such securities previously so
pledged, at the time of pledge, do not exceed 10% of such Funds'
total assets;
i. unless otherwise permitted by law, purchase from or sell
directly to any of its officers or Trustees or General Electric
Investment Corporation ("GEIC") or the officers or directors of
GEIC, or any other affiliate (as defined by the 1940 Act) of such
Fund or any affiliate of such affiliate, portfolio securities or
other property of such Fund; or
j. unless otherwise permitted by law, invest in securities of the
Company or its affiliates, or in securities of an investment manager
of such Fund and will not during the existence of any underwriting
syndicate purchase any securities for which its investment manager
is acting as principal underwriter.
In addition to the foregoing, the LT Fund will not:
a. purchase any security if as a result of such purchase more than
25% of its total assets would be invested in a particular industry;
b. purchase any security if as a result of such purchase more than 25%
of its total assets would be subject to legal or contractual
restrictions on resale; or
c. invest in the securities of registered investment companies.
C. RISK FACTORS AND SPECIAL
CONSIDERATIONS
Investing in the Funds involves risk factors and special considerations,
such as those described below:
GENERAL. An investment in any Fund should not be considered to be a
complete investment program.
DEBT INSTRUMENTS. Each of the Funds is authorized to invest in debt
instruments. A debt instrument held by a Fund will be affected by general
changes in interest rates that will in turn result in increases or decreases
in the market value of those obligations. The market value of debt
instruments in a Fund's portfolio can be expected to vary inversely to
changes in prevailing interest rates. In periods of declining interest rates,
the yield of a Fund holding a significant amount of debt instruments will
tend to be somewhat higher than prevailing market rates, and in periods of
rising interest rates, the Fund's yield will tend to be somewhat lower. In
addition, when interest rates are falling, money received by such a Fund from
the continuous sale of its shares will likely be invested in portfolio
instruments producing lower yields than the balance of its portfolio, thereby
reducing the Fund's current yield. In periods of rising interest rates, the
opposite result can be expected to occur.
CERTAIN INVESTMENT GRADE OBLIGATIONS. The Mutual Fund, the ST Fund and
the LT Fund may each invest in obligations rated BBB by S&P or Baa by
Moody's. Although obligations rated BBB by S&P or Baa by Moody's are
considered investment grade, they may be viewed as being subject
-41-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
to greater risks than other investment grade obligations. Obligations rated BBB
by S&P are regarded as having only an adequate capacity to pay principal and
interest and those rated Baa by Moody's are considered medium-grade
obligations that lack outstanding investment characteristics and have
speculative characteristics as well.
LOW-RATED SECURITIES. The Mutual Fund, the ST Fund and the LT Fund are
authorized to invest in securities rated lower than investment grade
(sometimes referred to as "junk bonds"). Low-rated and comparable unrated
securities (collectively referred to as "low-rated" securities) likely have
quality and protective characteristics that, in the judgment of a rating
organization, are outweighed by large uncertainties or major risk exposures
to adverse conditions, and are predominantly speculative with respect to the
issuer's capacity to pay interest and repay principal in accordance with the
terms of the obligation. Securities in the lowest rating categories may be in
default or may present substantial risks of default.
Although the market values of low-rated securities tend to react less to
fluctuations in interest rate levels than the market values of higher-rated
securities, the market values of certain low-rated securities tend to be more
sensitive to individual corporate developments and changes in economic
conditions than higher-rated securities. In addition, low-rated securities
generally present a higher degree of credit risk. Issuers of low-rated
securities are often highly leveraged and may not have more traditional
methods of financing available to them, so that their ability to service
their debt obligations during an economic downturn or during sustained
periods of rising interest rates may be impaired. The risk of loss due to
default by these issuers is significantly greater because low-rated
securities generally are unsecured and frequently are subordinated to the
prior payment of senior indebtedness. A Fund may incur additional expenses to
the extent that it is required to seek recovery upon a default in the payment
of principal or interest on its portfolio holdings. The existence of limited
markets for low-rated securities may diminish a Fund's ability to obtain
accurate market quotations for purposes of valuing the securities held by the
Fund and calculating the Fund's net asset value.
NON-PUBLICLY TRADED AND ILLIQUID SECURITIES. The Mutual Fund, the ST Fund
and the LT Fund may each invest in non-publicly traded securities and
illiquid securities. Non-publicly traded securities may be less liquid than
publicly traded securities. Although these securities may be resold in private
ly negotiated transactions, the prices realized from these sales could be
less than those originally paid by a Fund. In addition, companies whose
securities are not publicly traded are not subject to the disclosure and
other investor protection requirements that may be applicable if their
securities were publicly traded. A Fund's investments in illiquid securities
are subject to the risk that should the Fund desire to sell any of these
securities when a ready buyer is not available at a price that GEIC deems
representative of their value, the value of the Fund's net assets could be
adversely affected.
REPURCHASE AND REVERSE REPURCHASE AGREEMENTS. The Mutual Fund, the ST
Fund, the LT Fund and the MM Fund may enter into repurchase agreements. A
Fund entering into a repurchase agreement will bear a risk of loss in the
event that the other party to the transaction defaults on its obligations and
the Fund is delayed or prevented from exercising its rights to dispose of the
underlying securities. A Fund will be, in particular, subject to the risk of
a possible decline in the value of the underlying securities during the
period in which the Fund seeks to assert its right to them, the risk of
incurring expenses associat-
-42-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
ed with asserting those rights and the risk of losing all or a part
of the income from the agreement.
The MM Fund may enter into reverse repurchase agreements. A reverse
repurchase agreement involves the risk that the money market value of the
securities retained by the MM Fund may decline below the price of the
securities the Fund has sold but is obligated to repurchase under the
agreement. In the event the buyer of securities under a reverse repurchase
agreement files for bankruptcy or becomes insolvent, the MM Fund's use of the
proceeds of the agreement may be restricted pending a determination by the
party, or its trustee or receiver, whether to enforce the Fund's obligation
to repurchase the securities.
WARRANTS. The Mutual Fund may invest in warrants. Because a warrant,
which is a security permitting, but not obligating, its holder to subscribe
for another security, does not carry with it the right to dividends or voting
rights with respect to the securities that the warrant holder is entitled to
purchase, and because a warrant does not represent any rights to the assets
of the issuer, a warrant may be considered more speculative than certain
other types of investments. In addition, the value of a warrant does not
necessarily change with the value of the underlying security and a warrant
ceases to have value if it is not exercised prior to its expiration date.
Warrants acquired by the Mutual Fund in units or attached to securities may
be deemed to be without value.
INVESTMENT IN FOREIGN SECURITIES. Each Fund may invest in securities
issued by foreign companies and foreign governments or their agencies or
instrumentalities. Investing in securities issued by foreign companies and
governments involves considerations and potential risks not typically
associated with investing in obligations issued by the U.S. Government and
U.S. corporations. Less information may be available about foreign companies
than about U.S. companies, and foreign companies generally are not subject to
uniform accounting, auditing and financial reporting standards or to other
regulatory practices and requirements comparable to those applicable to U.S.
companies. The values of foreign investments are affected by changes in
currency rates or exchange control regulations, restrictions or prohibitions
on the repatriation of foreign currencies, application of foreign tax laws,
including withholding taxes, changes in governmental administration or
economic monetary policy (in the United States or abroad) or changed
circumstances in dealings between nations. Costs are also incurred in
connection with conversions between various currencies. In addition, foreign
brokerage commissions are generally higher than those charged in the United
States and foreign securities markets may be less liquid, more volatile and
less subject to governmental supervision than in the United States.
Investments in foreign countries could be affected by other factors not
present in the United States, including expropriation, confiscatory taxation,
lack of uniform accounting and auditing standards, limitations on the use or
removal of funds or other assets (including the withholding of dividends),
and potential difficulties in enforcing contractual obligations, and could be
subject to extended clearance and settlement periods.
A Fund's unit value may change significantly when the currencies, other
than the U.S. dollar, in which the Fund's portfolio investments are
denominated strengthen or weaken against the U.S. dollar. Currency exchange
rates generally are determined by the forces of supply and demand in the
foreign exchange markets and the relative merits of investments in different
countries as seen from an international perspec-
-43-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
tive. Currency exchange rates can also be affected unpredictably by
intervention by U.S. or foreign governments or central banks or by
currency controls or political developments in the United States or abroad.
COVERED OPTION WRITING. The ST Fund and the LT Fund may purchase and
write put and call options on securities. Upon the exercise of a put option
written by the ST Fund or the LT Fund, the Fund may suffer a loss equal to the
difference between the price at which the Fund is required to purchase the
underlying security and its market value at the time of the option exercise,
less the premium received for writing the option. Upon the exercise of a call
option written by the ST Fund or the LT Fund, the Fund may suffer a loss equal
to the excess of the security's market value at the time of the option's
exercise over the Fund's acquisition cost of the security, less the premium
received from writing the option. In addition, no assurance can be given that
the ST Fund or the LT Fund will be able to effect closing purchase transactions
at a desired time. The ability of the ST Fund and the LT Fund to engage in
closing transactions with respect to options depends on the existence of a
liquid secondary market. Although the ST Fund and the LT Fund will generally
purchase or write securities options only if a liquid secondary market
appears to exist for the option purchased or sold, no such secondary market
may exist or the market may cease to exist.
The ST Fund and the LT Fund will engage in hedging transactions only when
deemed advisable by GEIC. Successful use by the ST Fund and the LT Fund of
options will depend on GEIC's ability to predict correctly movements in the
direction of the securities underlying the option used as a hedge. Losses
incurred in hedging transactions and the costs of these transactions will
affect the Fund's performance.
SECURITIES INDEX OPTIONS. The ST Fund and the LT Fund may each purchase
options on securities indexes. Securities index options are subject to
position and exercise limits and other regulations imposed by the exchange on
which they are traded. The ability of the ST Fund and the LT Fund to engage
in closing purchase transactions with respect to securities index options
depends on the existence of a liquid secondary market. Although the ST Fund
and the LT Fund will generally purchase or write securities index options
only if a liquid secondary market for the options purchased or sold appears
to exist, no such secondary market may exist, or the market may cease to
exist at some future date, for some options. No assurance can be given that a
closing purchase transaction can be effected when GEIC desires that the ST
Fund or the LT Fund engage in such a transaction.
FUTURES AND OPTIONS ON FUTURES. The ST Fund and the LT Fund may invest in
financial and bond index futures or related options. The uses of futures
contracts and options on futures contracts as a hedging device involves
several risks. No assurance can be given that a correlation will exist
between price movements in the underlying securities or index and price
movements in the securities that are the subject of the hedge. Positions in
futures contracts and options on futures contracts may be closed out only on
the exchange or board of trade on which they were entered, and no assurance
can be given that an active market will exist for a particular contract or
option at any particular time. Losses incurred in hedging transactions and
the costs of these transactions will affect the Fund's performance.
FORWARD CURRENCY TRANSACTIONS. The ST Fund and the LT Fund may engage in
forward currency transactions. In entering into forward currency contracts,
the ST Fund and the LT Fund will be subject to a number of risks and special
con-
-44-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
siderations. The market for forward currency contracts, for example, may
be limited with respect to certain currencies. The existence of a limited
market may in turn restrict the Fund's ability to hedge against the risk of
devaluation of currencies in which the Fund holds a substantial quantity of
securities. The successful use of forward currency contracts as a hedging
technique draws upon GEIC's special skills and experience with respect to
those instruments and will usually depend upon GEIC's ability to forecast
interest rate and currency exchange rate movements correctly. Should interest
or exchange rates move in an unexpected manner, the ST Fund and the LT Fund
may not achieve the anticipated benefits of forward currency contracts or may
realize losses and thus be in a less advantageous position than if those
strategies had not been used. Many forward currency contracts are subject to
no daily price fluctuation limits so that adverse market movements could
continue with respect to those contracts to an unlimited extent over a period
of time. In addition, the correlation between movements in the prices of
those contracts and movements in the prices of the currencies hedged or used
for cover will not be perfect.
GEIC's ability to dispose of the ST Fund's or the LT Fund's positions in
forward currency contracts depends on the availability of active markets in
those instruments, and GEIC cannot now predict the amount of trading interest
that may exist in the future in forward currency contracts. Forward currency
contracts may be closed out only by the parties entering into an offsetting
contract. As a result, no assurance can be given that the ST Fund or the LT
Fund will be able to utilize these contracts effectively for the intended
purposes.
OPTIONS ON FOREIGN CURRENCIES. The ST Fund and the LT Fund may purchase
and write put and call options on foreign currencies. Like the writing of
other kinds of options, the writing of an option on a foreign currency
constitutes only a partial hedge, up to the amount of the premium received;
the ST Fund or the LT Fund could also be required, with respect to any option
it has written, to purchase or sell foreign currencies at disadvantageous
exchange rates, thereby incurring losses. The purchase of an option on a
foreign currency may constitute an effective hedge against fluctuation in
exchange rates, although in the event of rate movements adverse to the Fund's
position, the Fund could forfeit the entire amount of the premium plus
related transaction costs.
INSTRUMENTS AND STRATEGIES INVOLVING SPECIAL RISKS. Certain instruments
in which the Funds can invest and certain investment strategies that the
Funds may employ could expose the Funds to various risks and special
considerations. The instruments presenting risks to a Fund that holds the
instruments include Rule 144A Securities, depositary receipts, securities of
supranational agencies, securities of other investment funds, floating and
variable rate instruments, zero coupon obligations, mortgage related
securities, ARMs, CMOs, government stripped mortgage related securities and
asset-backed and receivable-backed securities. Among the risks that some, but
not all, of these instruments involve are lack of liquid secondary markets
and the risk of prepayment of principal. The investment strategies involving
special risks to some or all of the Funds include engaging in when-issued or
delayed-delivery securities transactions, entering into mortgage dollar rolls
and lending portfolio securities. Among the risks that some, but not all, of
these strategies involve are the increased exposure to fluctuations in market
value of the securities and certain credit risks.
D. INVESTMENT ADVISOR
GEIC, located at 3003 Summer Street, Stamford, Connecticut 06905, serves
as the invest-
-45-
<PAGE>
GE S&S PROGRAM DISCLOSURE STATEMENT
ment advisor of each Fund. GEIC is a wholly owned subsidiary of
the Company and is a registered investment advisor under the Investment
Advisers Act of 1940, as amended.
INVESTMENT INSTRUCTIONS
Participants in the S&SP elect the investment media in which they wish to
invest and may change their investment options or their rate of savings in
accordance with the procedures set forth in the GE Benefits Handbook.
Participants may transfer savings from one investment option to another up to
12 times each calendar year. For more information regarding investment
instructions, see the GE Benefits Handbook.
FEES AND EXPENSES
The fees and expenses of each of the investment alternatives are set
forth in the Annual Report of the S&SP. There are no transaction fees charged
to the Funds or to a participant's account balance in connection with
purchases or sales of interests in investment alternatives.
ADDITIONAL INFORMATION
The Trustees of the S&SP are responsible for providing certain additional
information to you, either directly or upon your request. The information
provided directly to you is contained in the Annual Report of the S&SP and
includes (i) a description of the annual operating expenses of each
investment alternative with respect to which expenses are incurred and the
aggregate amount of such expenses expressed as a percentage of average net
assets, (ii) copies of available financial statements relating to the
investment alternatives, (iii) a list of the securities comprising the
portfolio of each Fund and the value of such securities, and, with respect to
each asset which is a fixed rate investment contract issued by a bank,
savings and loan association or insurance company, the name of the issuer,
the term and the rate of return on the contract, and (iv) the investment
performance of each Fund. The information available to you upon your request
is information concerning the value of units in each of the Funds or shares
of the Company, as well as the value of such units or shares held in a
participant's account, which may be obtained at anytime by calling
1-800-432-4313. The address and telephone number of the Trustees of the S&SP
are c/o General Electric Investment Corporation, 3003 Summer Street,
Stamford, CT 06905 (203-326-2300).
-46-
<PAGE>
THIS PAGE LEFT INTENTIONALLY BLANK
-47-
<PAGE>
S&S PROGRAM MUTUAL FUND
INVESTMENT TEAM
_______________________________________________________________________________
PORTFOLIO MANAGERS
S&S PROGRAM MUTUAL FUND
Eugene K. Bolton
David B. Carlson
Peter J. Hathaway
A. John Kohlhepp
Paul C. Reinhardt
Christopher Smith
S&S LONG TERM INTEREST FUND
Robert A. MacDougall
TRUSTEES
Dale F. Frey
CHAIRMAN OF THE BOARD AND PRESIDENT,
GENERAL ELECTRIC INVESTMENT CORPORATION
Eugene K. Bolton
Michael J. Cosgrove
Ralph R. Layman
Alan M. Lewis
John H. Myers
Donald W. Torey
OFFICERS OF GENERAL ELECTRIC
INVESTMENT CORPORATION
SECRETARY
Alan M. Lewis
INVESTMENT ADVISOR
General Electric Investment Corporation
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
CUSTODIAN
State Street Bank & Trust Company
SHAREHOLDER SERVICING AGENT
Address all inquiries OUTSIDE the S&SP to:
GE Investments
P.O. Box 8309
Boston, MA 02266-8309
Address all inquiries INSIDE the S&SP to:
GE S&SP Transaction Processing Center
P.O. Box 44079
Jacksonville, FL 32231-4079
-46-
<PAGE>
GE S&S PROGRAM SERVICES
SERVICES FOR OUR SHAREHOLDERS
OUTSIDE THE SAVINGS AND SECURITY PROGRAM (S&SP)
Shares held OUTSIDE the S&SP were previously distributed to you in the form
of securities. Your account balance is evidenced by annual or quarterly
statements of account issued by GE Investments in Stamford, CT.
GE INQUIRY CENTER 1-800-242-0134 or Dial Comm 8*225-4040
DAILY VALUE, YIELDS/ 1-800-843-3359
PERFORMANCE
AUDIO RESPONSE SYSTEM:
To obtain information and process account transactions on
your Funds held OUTSIDE the S&SP:
* Call 1-800-242-0134 or Dial Comm 8* 225-4040
* Press 1 on your touch-tone phone to gain access.
* Press 3 for information on your Funds held outside the S&SP.
* Select from the options illustrated to the left.
PERSONALIZED SERVICES:
Please press zero (0) on your touch-tone phone, or if you have a rotary dial
phone please hold to speak directly to an Inquiry Specialist in order
to obtain the the following information on your Funds held OUTSIDE the S&SP:
* Account Balance Information
* Statement Information
* 1099 Information
* Change of Address
* Change of Income Election
* Duplicate Statements
* Outstanding Check Information
_______________________________________________________________
1 2 3
INFORMATION SPECIFIC ACCOUNT TRANSACTION
ONLY INFORMATION PROCESSING
_______________________________________________________________
1 1 1
TRANSFER ACCOUNT FUND
BY MAIL BALANCE EXCHANGES
_______________________________________________________________
2 2 2
REDEEM LAST REDEMPTIONS
BY MAIL TRANSACTION
_______________________________________________________________
3 3 3
CHANGE DUPLICATE DUPLICATE
ADDRESS STATEMENT TAX FORMS
_______________________________________________________________
4
PRICE QUOTES
LAST BUSINESS
DAY & PERSONAL
PRICE PORTFOLIO
_______________________________________________________________
INSIDE THE S&SP
Shares held INSIDE the S&SP have been credited to your account by the S&SP,
as the result of payroll deductions and investment earnings. If you are a
current employee, the annual "Your Personal Share" statement summarizes your
account balance.
S&SP participants can obtain information and process account transactions on
their Funds held INSIDE the Program by calling:
GE S&SP Transaction Daily Value, Yields/
Processing Center 1-800-432-4313 Performance 1-800-843-3359
<PAGE>
______________
BULK RATE
U.S. POSTAGE
PAID
BOSTON, MA
PERMIT NO. 54201
______________
GE S&S Funds
3003 Summer Street
Stamford, CT 06904-7900
[GRAPHIC]
GE LOGO
______________________________________________________________________
Distributed by GE Investment Services Inc., member NASD and SIPC
