As filed with the Securities and Exchange Commission on December 11, 1997
REGISTRATION NO. 2-91369
REGISTRATION NO. 811-4041
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 22
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 23
GE INVESTMENTS FUNDS, INC.
(formerly, Life of Virginia Series Fund, Inc.)
3003 Summer Street
Stamford, Connecticut 06905
(Address of Principal Executive Offices)
Registrant's Telephone Number
(203) 326-4040
Matthew J. Simpson
Secretary
GE Investments Funds, Inc.
3003 Summer Street
Stamford, Connecticut 06905
(Name and Address of Agent for Service)
Copy to:
Stephen E. Roth
Sutherland, Asbill & Brennan LLP
1275 Pennsylvania Avenue, NW
Washington, DC 20004-2404
------------------------------
It is proposed that this filing will become effective:
___ immediately upon filing pursuant to paragraph (b)
_X_ on December 12 pursuant to paragraph (b)
___ 60 days after filing pursuant to paragraph (a)
___ on (Date) pursuant to paragraph (a) of Rule 485
___ 75 days after filing pursuant to paragraph (a)(2) of Rule 485
___ on (Date) pursuant to paragraph (a)(2) of Rule 485
---------------------------------
<PAGE>
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Item No. of
Form N-1A Caption
- ---------- -------
<S> <C>
Part A Prospectus
- ------ ----------
1.................. Cover Page
2.................. Not Applicable
3.................. Financial Highlights
4.................. GE Investments Funds, Inc.; Investment Objectives and Policies; Investment Practices
5.................. Management of the Company
5A................. Not Applicable
6.................. GE Investments Funds, Inc., Dividends, Distributions and Taxes; Additional Information
7.................. Purchase and Redemption of Fund Shares
8.................. Purchase and Redemption of Fund Shares
9.................. Additional Information
Part B Statement of Additional Information
- ------ -----------------------------------
10................. Cover Page
11................. Table of Contents
12................. General Information
13................. General Information; Investment Practices and Restrictions; Appendix A; Appendix B
14................. Management of the Company
15................. General Information; Management of the Fund Additional Information
16................. Management of the Fund; Additional Information
17................. Portfolio Transactions and Brokerage
18................. Dividends and Distributions; Additional Information
19................. Determination of Net Asset Value; Purchase and Redemption of Fund Shares
20................. Dividends, Distributions and Taxes (prospectus)
21................. Purchase and Redemption of Fund Shares (prospectus)
22................. Performance Information
23................. Financial Statements
</TABLE>
<PAGE>
PART A
PROSPECTUS
<PAGE>
SUPPLEMENT
Dated December 12, 1997 To Prospectus Dated October 24, 1997
GE Investments Funds, Inc.
As of December 12, 1997, shares of the Government Securities Fund are no longer
being offered.
The date on the prospectus cover, the date on page 1 of the prospectus, and the
page 1 reference to the date of the Statement of Additional Information are each
changed to:
December 12, 1997
The last sentence of the second paragraph on page 5 is replaced with the
following:
Income Fund, U.S. Equity Fund and Premier Growth Equity Fund began operations on
December 12, 1997. Information in these Financial Highlights relating to the
Income Fund and U.S. Equity Fund reflects the financial history of a predecessor
entity to each of these Funds. Each of these Funds is the financial successor to
an investment portfolio ("Predecessor Fund") of an open-end management
investment company similar to the Funds in structure and purpose. Income Fund is
the financial successor to the GE Fixed Income Portfolio of Variable Investment
Trust ("VIT"). U.S. Equity Fund is the financial successor to the GE U.S. Equity
Portfolio of VIT. Both Income Fund and U.S. Equity Fund have investment
objectives, policies and restrictions substantially identical to their
corresponding Predecessor Fund. Premier Growth Equity Fund is a new Fund with no
previous financial history.
The tables on the following page of this supplement relating to the financial
highlights for U.S. Equity Fund and Income Fund are added following page 11 of
the prospectus.
The following is added to the end of the first full paragraph on page 37:
During the Company's fiscal year ended December 31, 1996, the total operating
expenses incurred by the Funds (including advisory fees), before reimbursement,
represented 1.03% of the average net assets of the Income Fund and 0.88% of the
average net assets of the U.S. Equity Fund. During the Company's fiscal year
ended December 31, 1996, their former investment adviser reimbursed expenses in
amounts representing 0.28% of the average net assets of the Income Fund and
0.08% of the average net assets of the U.S. Equity Fund.
<PAGE>
GE Investments Funds, Inc.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data based on a share outstanding throughout the periods indicated
(June 30, 1997 data is unaudited)
<TABLE>
<CAPTION>
U.S. EQUITY FUND INCOME FUND
--------------------------------- ---------------------------------
6/30/97 12/31/96 12/31/95 (C) 6/30/97 12/31/96 12/31/95 (C)
------- -------- ------------ ------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 21.11 $ 19.27 $15.00 $ 11.84 $12.53 $12.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income......................... 0.13 0.34 0.46 0.39 0.76 0.82
Net realized and unrealized gains (losses) on
investments................................ 3.83 3.90 4.87 (0.05) (0.43) 1.13
------- -------- ------------ ------- -------- ------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.................................... 3.96 4.24 5.33 0.34 0.33 1.95
------- -------- ------------ ------- -------- ------------
LESS DISTRIBUTIONS FROM:
Net investment income......................... 0.00 0.35 0.47 0.38 0.76 0.84
Net realized gains............................ 0.00 2.05 0.59 0.00 0.26 0.58
------- -------- ------------ ------- -------- ------------
TOTAL DISTRIBUTIONS............................. 0.00 2.40 1.06 0.38 1.02 1.42
------- -------- ------------ ------- -------- ------------
NET ASSET VALUE, END OF PERIOD.................. $ 25.07 $ 21.11 $19.27 $ 11.80 $11.84 $12.53
------- -------- ------------ ------- -------- ------------
------- -------- ------------ ------- -------- ------------
TOTAL RETURN (A)................................ 18.76% 21.72% 35.58% 2.94% 2.92% 16.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $21,829 $ 18,027 $9,071 $ 5,240 $5,388 $3,271
Ratios to average net assets:
Net investment income*..................... 1.14% 1.80% 2.10% 6.49% 6.37% 6.52%
Expenses*.................................. 0.80% 0.80% 0.80% 0.75% 0.75% 0.75%
Gross Expenses*............................ 0.90% 0.88% 1.03% 1.05% 1.03% 1.15%
Portfolio turnover rate....................... 14% 35% 71% 153% 222% 253%
Average brokerage commissions (b)............. $ .053 $ .071 N/A N/A N/A N/A
</TABLE>
- ------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) Total returns assume changes in share price, reinvestment of dividends and
capital gains, and assume no sales charge. Had the adviser not absorbed a
portion of expenses, total returns would have been lower. Periods less than
one year are not annualized.
(b) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. Mark-ups, mark-downs and spreads on shares
traded on a principal basis are not included unless they are disclosed on
confirmations prepared in accordance with rule 10b-10 under the Securities
Exchange Act of 1934.
(c) Information is for the period January 3, 1995, commencement of investment
operations, through December 31, 1995.
* Annualized for periods less than one year.
<PAGE>
The prospectus is incorporated herein by reference to the prospectus filed with
the Securities and Exchange Commission on October 24, 1997 as part of
Post-Effective Amendment No. 21 to GE Investments Funds, Inc.'s registration
statement on Form N-1A (File No. 2-91369).
<PAGE>
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
SUPPLEMENT
Dated December 12, 1997 To Statement of Additional Information Dated
October 24, 1997
GE Investments Funds, Inc.
The date on the cover page of the Statement of Additional
Information is changed to:
December 12, 1997
The last sentence of each of the first and third paragraphs on page 6 is deleted
and the following paragraph is added after the third paragraph on page 6:
The portfolio turnover rates for the Income Fund for the years ended December
31, 1995 and December 31, 1996 were approximately 253% and 222% respectively.
The portfolio turnover rates for the U.S. Equity Fund for the years ended
December 31, 1995 and December 31, 1996 were approximately 71% and 35%
respectively.
The following is added at the bottom of page 34:
Management of Predecessor Funds for Income Fund and U.S. Equity Fund
Income Fund and U.S. Equity Fund each began operations on December 12, 1997.
Financial statements included in this Statement of Additional Information and
other financial information included herein and in the Company's prospectus
relating to past financial history of these two Funds is the financial history
of a predecessor entity to each of these Funds. Each of these Funds is the
financial successor to an investment portfolio ("Predecessor Fund") of an
open-end management investment company similar to the Funds in structure and
purpose. Income Fund is the financial successor to the GE Fixed Income Portfolio
of Variable Investment Trust ("VIT"). U.S. Equity Fund is the financial
successor to the GE U.S. Equity Portfolio of VIT. Both Income Fund and U.S.
Equity Fund have investment objectives, policies and restrictions substantially
identical to their corresponding Predecessor Fund. It is anticipated that GEIM
will manage both of these Funds in substantially the same manner as it managed
the corresponding Predecessor Funds. Both Predecessor Funds began operations on
January 3, 1995 and ceased operations on December 12, 1997 when a substantial
portion of their investment portfolios were transferred to the corresponding
Fund.
During its entire operating period, VIT (and each of its portfolios, including
GE Fixed Income Portfolio and GE U.S. Equity Portfolio) was managed by GEIM. VIT
paid GEIM advisory fees for managing its portfolios computed as a percentage of
the average daily net assets of such portfolios. For GE Fixed Income Portfolio
the fee was at an annual rate of 0.45%; for GE U.S. Equity Portfolio the fee was
at an annual rate of 0.50%. Each of these portfolios also paid GEIM an
administrative fee computed on the same basis at an annual rate of 0.05%. For
the fiscal years ended December 31, 1995 and December 31, 1996, GE Fixed Income
Portfolio paid advisory and administrative fees to GEIM of $22,614 and $23,311,
respectively. GE U.S. Equity Portfolio paid advisory and administrative fees to
GEIM of $53,162 and
<PAGE>
$80,400, respectively, for the corresponding periods. For the fiscal years ended
December 31, 1995 and December 31, 1996, GEIM reimbursed GE Fixed Income
Portfolio $18,169 and $12,983, respectively, for expenses in excess of 0.75%.
For the fiscal years ended December 31, 1995 and December 31, 1996, GEIM
reimbursed GE U.S. Equity Portfolio $22,406 and $12,056, respectively, for
expenses in excess of 0.80%.
The following is added to the end of the fourth paragraph on page 35:
The foregoing amounts do not include brokerage commissions for the Predecessor
Funds.
The following replaces the last sentence on page 39:
Financial Statements of Predecessor Funds. Although Income Fund and U.S. Equity
Fund only commenced operations on December 12, 1997, the Company believes that
each of these Funds is the financial successor to a Predecessor Fund (see page
34) and has therefore included audited financial statements for the fiscal
period ended December 31, 1995 and the fiscal year ended December 31, 1996 and
unaudited financial statements for the six-month period ended June 30, 1997 for
such Predecessor Funds. Income Fund is the financial successor to the GE Fixed
Income Portfolio of VIT. U.S. Equity Fund is the financial successor to the GE
U.S. Equity Portfolio of VIT.
The following is added after page F-34:
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 1
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
COMMON STOCK-96.8%
BASIC MATERIALS-4.3%
Air Products & Chemicals Inc............................................... 780 63,375
Airgas Inc................................................................. 1,433 28,391(a)
Barrick Gold Corp.......................................................... 943 20,746
Du Pont de Nemours (E.I.) & Co............................................. 5,762 362,286
Eastman Chemical Co........................................................ 337 21,400
FMC Corp................................................................... 333 26,453(a)
IMC Global Inc............................................................. 708 24,780
Mead Corp.................................................................. 930 57,892
Morton International Inc................................................... 2,930 88,449
Newmont Mining Corp........................................................ 2,643 103,077
Potash Corp. of Saskatchewan Inc........................................... 200 15,013
PPG Industries Inc......................................................... 184 10,695
Rayonier Inc............................................................... 800 33,650
Weyerhaeuser Co............................................................ 1,606 83,512
-----------
939,719
-----------
CAPITAL GOODS-11.9%
AlliedSignal Inc........................................................... 4,502 378,168
AMP Inc.................................................................... 950 39,663
Armstrong World Industries Inc............................................. 590 43,291
Avery Dennison Corp........................................................ 467 18,738
Boeing Co.................................................................. 566 30,033
Bombardier Inc. (Class B).................................................. 200 4,540
Browning-Ferris Industries Inc............................................. 1,560 51,870
Corning Inc................................................................ 500 27,813
Deere & Co................................................................. 2,478 135,980
Dover Corp................................................................. 4,895 301,042
Emerson Electric Co........................................................ 5,663 311,819
General Signal Corp........................................................ 649 28,313
Harnischfeger Industries Inc............................................... 333 13,820
Hubbell Inc. (Class B)..................................................... 5,068 222,992
Laidlaw Inc................................................................ 832 11,492
Lockheed Martin Corp....................................................... 939 97,245
Mannesmann AG.............................................................. 28 12,474
Martin Marietta Materials Inc.............................................. 1,332 43,123
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
2 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Masco Corp................................................................. 233 9,728
McDonnell Douglas Corp..................................................... 515 35,278
Minnesota Mining & Manufacturing Co........................................ 433 44,166
Molex Inc. (Class A)....................................................... 1,061 37,002
National Service Industries Inc............................................ 591 28,774
Parker Hannifin Corp....................................................... 334 20,270
Sherwin Williams Co........................................................ 1,208 37,297
Textron Inc................................................................ 4,437 294,506
Timken Co.................................................................. 831 29,552
Tyco International Ltd..................................................... 359 24,973
United Technologies Corp................................................... 2,011 166,913
United Waste Systems Inc................................................... 333 13,653(a)
US Filter Corp............................................................. 334 9,102(a)
Waste Management Inc....................................................... 1,832 58,853
Wheelabrator Technologies Inc.............................................. 562 8,676
-----------
2,591,159
-----------
CONSUMER--CYCLICAL-7.3%
ACNielsen Corp............................................................. 2,034 39,917(a)
Autoliv AB................................................................. 581 22,732(a)
Automatic Data Processing Inc.............................................. 2,814 132,258
Carnival Corp. (Class A)................................................... 783 32,299
Catalina Marketing Corp.................................................... 433 20,838(a)
Circus Circus Enterprises Inc.............................................. 2,111 51,983(a)
Comcast Corp. (Class A).................................................... 3,166 67,673
Comcast UK Cable Partners Ltd. (Class A)................................... 866 10,392(a)
CUC International Inc...................................................... 1,283 33,117(a)
Disney (Walt) Co........................................................... 2,635 211,459
Dun & Bradstreet Corp...................................................... 400 10,500
Eastman Kodak Co........................................................... 1,138 87,342
Federal-Mogul Corp......................................................... 384 13,440
Ford Motor Co.............................................................. 2,291 86,485
Gannett Inc................................................................ 1,621 160,074
General Motors Corp........................................................ 730 40,652
Goodyear Tire & Rubber Co.................................................. 482 30,517
Harman International Industries Inc........................................ 633 26,665
Interpublic Group Cos. Inc................................................. 1,822 111,711
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 3
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
ITT Industries Inc......................................................... 309 7,957
Knight Ridder Inc.......................................................... 433 21,244
McDonalds Corp............................................................. 2,037 98,413
Metromedia International Group Inc......................................... 449 5,697(a)
Nine West Group Inc........................................................ 333 12,716(a)
Scholastic Corp............................................................ 457 15,995(a)
Tele-Communications Inc. (Series A)........................................ 3,738 55,603
Tele-Communications Inc. Liberty Media Group (Series A).................... 2,981 70,799(a)
Time Warner Inc............................................................ 893 43,087
Viad Corp.................................................................. 749 14,418
Xerox Corp................................................................. 766 60,418
-----------
1,596,401
-----------
CONSUMER--STABLE-9.6%
Anheuser Busch Cos. Inc.................................................... 4,725 198,155
Archer-Daniels Midland Co.................................................. 1,668 39,198
Avon Products Inc.......................................................... 1,119 78,959
Coca Cola Co............................................................... 165 11,138
Colgate Palmolive Co....................................................... 1,911 124,693
Conagra Inc................................................................ 1,110 71,179
CPC International Inc...................................................... 1,176 108,559
General Mills Inc.......................................................... 882 57,440
Gillette Co................................................................ 400 37,900
International Flavours..................................................... 471 23,786
International Multifoods Corp.............................................. 233 5,854
Kellogg Co................................................................. 266 22,776
Kimberly Clark Corp........................................................ 4,380 217,905
Nestle S.A. (Regd.)........................................................ 30 39,575
Pepsico Inc................................................................ 8,545 320,972
Philip Morris Cos. Inc..................................................... 6,364 282,402(g)
Procter & Gamble Co........................................................ 1,903 268,799
Ralston Purina Co.......................................................... 741 60,901
Sara Lee Corp.............................................................. 1,789 74,467
Sysco Corp................................................................. 534 19,491
Unilever N.V............................................................... 150 32,700
-----------
2,096,849
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
4 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
ENERGY-10.8%
Amoco Corp................................................................. 2,295 199,522
Anadarko Petroleum Corp.................................................... 652 39,120
Atlantic Richfield Co...................................................... 1,880 132,540
Baker Hughes Inc........................................................... 2,457 95,055
British Petroleum PLC ADR.................................................. 756 56,605
Burlington Resources Inc................................................... 2,156 95,133
Diamond Offshore Drilling Inc.............................................. 150 11,719(a)
Elf Aquitaine S.A.......................................................... 283 15,406
Exxon Corp................................................................. 6,832 420,168
Halliburton Co............................................................. 520 41,210
Louisiana Land & Exploration Co............................................ 333 19,023
Mobil Corp................................................................. 2,898 202,498
Nabors Industries Inc...................................................... 1,206 30,150(a)
Royal Dutch Petroleum Co. ADR.............................................. 5,404 293,842
Schlumberger Ltd........................................................... 2,630 328,750
Texaco Inc................................................................. 1,504 163,560
Tosco Corp................................................................. 738 22,094
Total S.A. (Class B)....................................................... 498 25,211
Union Pacific Resources Group Inc.......................................... 1,419 35,298
Unocal Corp................................................................ 2,894 112,323
Valero Energy Corp......................................................... 533 19,321
-----------
2,358,548
-----------
FINANCIAL-12.0%
American Express Co........................................................ 2,938 218,881
Bank of New York Inc....................................................... 1,322 57,507
BankAmerica Corp........................................................... 1,442 93,099
BankBoston Corp............................................................ 1,123 80,926
Bankers Trust New York Corp................................................ 226 19,662
Barnett Banks Inc.......................................................... 300 15,750
Beneficial Corp............................................................ 400 28,425
Chase Manhattan Corp....................................................... 1,226 118,999
Citicorp................................................................... 2,984 359,758
CMAC Investment Corp....................................................... 569 27,170
Countrywide Credit Industries.............................................. 1,063 33,152
Edwards A.G. Inc........................................................... 506 21,632
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 5
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Federal National Mortgage Assoc............................................ 8,856 386,343
ING Groep N.V.............................................................. 834 38,547
Mellon Bank Corp........................................................... 1,572 70,937
Merrill Lynch & Co. Inc.................................................... 600 35,775
Morgan (J.P.) & Co. Inc.................................................... 739 77,133
Morgan Stanley, Dean Witter, Discover & Co................................. 3,996 172,078
Norwest Corp............................................................... 200 11,250
Providian Financial Corp................................................... 443 14,231(a)
Salomon Inc................................................................ 434 24,141
State Street Corp.......................................................... 1,400 64,750
T. Rowe Price & Associates................................................. 316 16,314
Travelers Group Inc........................................................ 7,203 454,239
Trizec Hahn Corp........................................................... 450 9,619
United States Bancorp...................................................... 583 37,385
Wells Fargo & Co........................................................... 514 138,523
-----------
2,626,226
-----------
FINANCIAL--INSURANCE-5.9%
Aegon N.V.................................................................. 192 13,483
American International Group Inc........................................... 2,432 363,280
Chubb Corp................................................................. 1,715 114,691
Equitable Cos. Inc. (Series B)............................................. 267 8,878
Everest Reinsurance Holdings............................................... 200 7,925
General Reinsurance Corp................................................... 480 87,360
Lincoln National Corp...................................................... 1,233 79,374
Loews Corp................................................................. 2,062 206,458
Marsh & McLennan Cos. Inc.................................................. 1,916 136,754
Provident Cos. Inc......................................................... 1,865 99,778
Reliastar Financial Corp................................................... 484 35,393
The Hartford Financial Services Group Inc.................................. 399 33,017
TIG Holdings Inc........................................................... 1,869 58,406
UNUM Corp.................................................................. 726 30,492
-----------
1,275,289
-----------
HEALTHCARE-12.4%
Abbott Laboratories........................................................ 4,426 295,435
Allergan Inc............................................................... 1,865 59,330
American Home Products Corp................................................ 3,395 259,717
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
6 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Arrow International Inc.................................................... 179 5,236
Baxter International Inc................................................... 936 48,906
Bristol-Myers Squibb Co.................................................... 5,393 436,833
Cardinal Health Inc........................................................ 963 55,132
Columbia/HCA Healthcare Corp............................................... 100 3,931
Dentsply International Inc................................................. 269 13,181
Eli Lilly & Co............................................................. 799 87,341
Forest Labs Inc............................................................ 108 4,496(a)
Johnson & Johnson.......................................................... 4,619 297,348
Lincare Holdings Inc....................................................... 748 32,164(a)
Merck & Co. Inc............................................................ 2,931 303,358
Pfizer Inc................................................................. 2,171 259,435
Scherer (R.P.) Corp. Delaware.............................................. 1,237 63,860(a)
Schering Plough Corp....................................................... 3,216 153,966
Smithkline Beecham PLC ADR................................................. 2,251 206,248
St. Jude Medical Inc....................................................... 142 5,538(a)
Sun Healthcare Group Inc................................................... 217 4,516(a)
Tenet Healthcare Corp...................................................... 450 13,303(a)
Warner-Lambert Co.......................................................... 100 12,425
Watson Pharmaceuticals Inc................................................. 2,131 90,035(a)
-----------
2,711,734
-----------
RETAIL TRADE-4.5%
American Stores Co......................................................... 843 41,623
Arbor Drugs Inc............................................................ 1,959 39,425
Costco Cos. Inc............................................................ 1,398 45,959(a)
Dayton Hudson Corp......................................................... 1,532 81,483
Federated Department Stores Inc............................................ 1,598 55,530(a)
Home Depot Inc............................................................. 1,972 135,945
Lowes Cos. Inc............................................................. 927 34,415
Office Max Inc............................................................. 412 5,948(a)
Penney J.C. Inc............................................................ 366 19,101
Sears Roebuck & Co......................................................... 3,092 166,195
Toys 'R Us Inc............................................................. 2,427 84,945(a)
Wal Mart Stores Inc........................................................ 7,905 267,288
-----------
977,857
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 7
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
TECHNOLOGY--ELECTRONICS AND EQUIPMENT-6.4%
3Com Corp.................................................................. 283 12,735(a)
Applied Materials Inc...................................................... 911 64,510(a)
Cisco Systems Inc.......................................................... 1,149 77,127(a)
DSC Communications Corp.................................................... 482 10,724(a)
Hewlett Packard Co......................................................... 4,437 248,472
Intel Corp................................................................. 3,058 433,663
International Business Machines............................................ 3,588 323,593
Lucent Technologies Inc.................................................... 568 40,931
Northern Telecom Ltd....................................................... 400 36,400
Pitney Bowes Inc........................................................... 1,194 82,983
Storage Technology Corp.................................................... 241 10,725(a)
Varian Associates Inc...................................................... 902 48,933
-----------
1,390,796
-----------
TECHNOLOGY--SOFTWARE & SERVICES-4.0%
Computer Associates International Inc...................................... 1,580 87,986
Electronic Data Systems Corp............................................... 582 23,862
Equifax Inc................................................................ 6,246 232,273
First Data Corp............................................................ 7,425 326,236
Intuit Inc................................................................. 331 7,592(a)
Microsoft Corp............................................................. 433 54,721(a)
Reuters Holdings PLC ADR (Class B)......................................... 2,376 149,688
-----------
882,358
-----------
TRANSPORTATION-1.6%
Burlington Northern Santa Fe............................................... 1,383 124,297
Canadian Pacific Ltd....................................................... 2,423 68,904
Continental Airlines Inc. (Class B)........................................ 1,226 42,834(a)
Delta Air Lines Inc........................................................ 281 23,042
Pittston Brinks Group...................................................... 566 16,980
Union Pacific Corp. N.V.................................................... 882 62,181
-----------
338,238
-----------
UTILITIES-6.1%
360 Communications Co...................................................... 217 3,716(a)
Airtouch Communications Inc................................................ 7,904 216,372(a)
American Electric Power Inc................................................ 1,317 55,314
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
8 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
American Telephone & Telegraph Corp........................................ 2,293 80,398
Bellsouth Corp............................................................. 2,127 98,639
CMS Energy Corp............................................................ 500 17,625
Duke Power Co.............................................................. 1,398 67,017
El Paso Natural Gas Co..................................................... 399 21,945
Florida Progress Corp...................................................... 999 31,281
FPL Group Inc.............................................................. 895 41,226
GTE Corp................................................................... 2,946 129,256
MCI Communications Corp.................................................... 1,229 47,048
NTL Inc.................................................................... 3,978 98,953(a)
NYNEX Corp................................................................. 1,240 71,455
Pacificorp................................................................. 1,831 40,282(g)
Pinnacle West Capital Corp................................................. 400 12,025
Public Service Co. Colorado................................................ 618 25,647
SBC Communications Inc..................................................... 2,208 136,620
Sonat Inc.................................................................. 966 49,507
Southern Co................................................................ 833 18,222
Sprint Corp................................................................ 333 17,524
Vanguard Cellular Systems Inc. (Class A)................................... 598 8,148(a)
Worldcom Inc............................................................... 1,499 47,968(a)
-----------
1,336,188
-----------
Total Common Stock
(Cost $15,604,371).................................................. 21,121,362
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($)
----------
<S> <C>
CONVERTIBLE BONDS-0.1%
Berkshire Hathaway Inc. Delaware
1.00% 12/02/01.......................................................... 8,000 8,420
Continental Airlines Inc.
6.75% 04/15/06.......................................................... 2,000 2,530
6.75% 04/15/06.......................................................... 11,000 14,424(b)
-----------
Total Convertible Bonds
(Cost $20,974)...................................................... 25,374
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 9
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
PREFERRED STOCK-0.4%
Airtouch Communications Inc. (Class B), 6.00%.............................. 307 8,749
Microsoft Corp. (Series A), $2.20.......................................... 1,045 90,915
-----------
Total Preferred Stock
(Cost $93,157)...................................................... 99,664
-----------
Total Investments in Securities
(Cost $15,718,502).................................................. 21,246,400
-----------
SHORT-TERM INVESTMENTS-2.7%
GEI Short-Term Investment Fund
(Cost $578,019)..................................................... 578,019 578,019
Other Assets and Liabilities, net 0.0%..................................... 4,352
-----------
NET ASSETS-100%................................................................. $21,828,771
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
10 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
BONDS AND NOTES-94.9%
U.S. TREASURIES-38.1%
U.S. Treasury Bonds
6.50% 11/15/26.......................................................... 157,000 150,572(g)
6.625% 02/15/27.......................................................... 89,000 87,081(g)
8.125% 08/15/19.......................................................... 54,000 61,602(g)
10.625% 08/15/15.......................................................... 89,000 123,794(g)
12.00% 05/15/05.......................................................... 14,000 18,642(g)
12.50% 08/15/14.......................................................... 100,000 147,047(g)
13.75% 08/15/04.......................................................... 94,000 132,290(g)
----------
721,028
----------
U.S. Treasury Notes
5.875% 01/31/99-02/15/00................................................. 559,000 555,495(g)
6.00% 06/30/99.......................................................... 50,000 49,930
6.00% 09/30/98.......................................................... 78,000 78,085(g)
6.25% 06/30/02.......................................................... 100,000 99,406
6.375% 05/15/00.......................................................... 242,000 242,869(g)
6.625% 07/31/01-05/15/07................................................. 201,000 202,826(g)
7.75% 12/31/99.......................................................... 44,000 45,574(g)
----------
1,274,185
----------
Total U.S. Treasuries
(Cost $1,988,077).................................................... 1,995,213
----------
ASSET BACKED-0.9%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25.......................................................... 5,731 5,575
First Plus Home Improvement Loan Trust
7.80% 03/20/16.......................................................... 10,000 10,300
First USA Credit Card Trust
5.80% 02/17/05.......................................................... 17,000 16,992(h)
Green Tree Recreational, Equipment & Consumer Trust
6.55% 07/15/28.......................................................... 10,000 9,978
The Money Store Home Equity Trust
7.90% 10/15/22.......................................................... 6,000 6,162
----------
Total Asset Backed
(Cost $48,483)....................................................... 49,007
----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 11
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
CORPORATE NOTES-23.6%
Abbey National PLC
7.35% 10/29/49.......................................................... 6,000 6,008
Bancomer S.A.
9.00% 06/01/00.......................................................... 7,000 7,070(b)
Bangkok Bank PLC
7.25% 09/15/05.......................................................... 15,000 14,297(b)
Bell Telephone Co.-Canada
9.50% 10/15/10.......................................................... 10,000 11,984
BT Preferred Capital Trust
7.875% 02/25/27......................................................... 15,000 14,508
Capital One Bank
6.43% 06/29/98.......................................................... 50,000 50,058
Carter Holt Harvey Ltd.
8.875% 12/01/04.......................................................... 50,000 54,910
China International Trust & Investment Corp.
9.00% 10/15/06.......................................................... 10,000 11,053
Circus Circus Enterprises Inc.
6.70% 11/15/2096........................................................ 10,000 9,672
Cleveland Electric Co.-Toledo Edison
7.19% 07/01/00.......................................................... 5,000 5,014(b)
Conseco Inc.
8.70% 11/15/26.......................................................... 10,000 10,235
Continental Cablevision Inc.
8.50% 09/15/01.......................................................... 10,000 10,562
CSX Corp.
7.05% 05/01/02.......................................................... 10,000 10,088
DDR Pass-Through Asset Trust
7.125% 03/15/02.......................................................... 65,000 64,805
Deutsche Bank Financial Inc.
6.70% 12/13/06.......................................................... 20,000 19,500
Dresser Industries Inc.
7.60% 08/15/2096........................................................ 23,000 23,428
Empresa Nacional De Electricid
7.875% 02/01/27.......................................................... 5,000 4,997
Farmers Insurance Exchange
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
12 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
8.625% 05/01/24.......................................................... 5,000 5,111(b)
FBOP Capital Trust
10.20% 02/06/27......................................................... 5,000 5,263(b)
Federated Department Stores Inc.
10.00% 02/15/01......................................................... 50,000 54,698
First American Capital Trust
8.50% 04/15/12.......................................................... 5,000 5,144(b)
First Security Capital
8.41% 12/15/26.......................................................... 7,000 7,141
First USA Capital Trust
9.33% 01/15/27.......................................................... 11,000 12,898
Guangdong International Trust & Investment Corp.
8.75% 10/24/16.......................................................... 10,000 10,415(b)
Hydro-Quebec
8.05% 07/07/24.......................................................... 60,000 65,039
Korea Electric Power Corp.
7.75% 04/01/13.......................................................... 10,000 10,026
Landeskreditbank Baden
7.875% 04/15/04.......................................................... 25,000 26,492
Lehman Brothers Holdings Inc.
6.84% 09/25/98.......................................................... 25,000 25,181
6.90% 03/30/01.......................................................... 15,000 15,011
Loewen Group International Inc.
7.50% 04/15/01.......................................................... 55,000 55,493
MIC Financing Trust
8.375% 02/01/27.......................................................... 15,000 15,131(b)
Morgan Stanley Finance PLC
8.03% 02/28/17.......................................................... 5,000 5,070
National Bank of Hungary
8.875% 11/01/13.......................................................... 30,000 32,535
National Westminster Bank PLC
7.75% 04/29/49.......................................................... 5,000 5,140
New York State Dormitory Authority Revenues
6.32% 04/01/99.......................................................... 15,000 14,969
News America Holdings Inc.
8.15% 10/17/36.......................................................... 35,000 34,505
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 13
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Norfolk Southern Corp.
7.90% 05/15/2097........................................................ 21,000 21,686
North Atlantic Energy Corp.
9.05% 06/01/02.......................................................... 13,000 13,152
NRG Energy Inc.
7.50% 06/15/07.......................................................... 15,000 15,038(b)
NWCG Holding Corp.
6.75% 06/15/99.......................................................... 15,000 13,189
Oryx Energy Co.
10.00% 06/15/99......................................................... 50,000 52,570
Paramount Communications Inc.
5.875% 07/15/00.......................................................... 50,000 48,401
Petroleos Mexicanos
7.75% 10/29/99.......................................................... 15,000 15,075(b)
Provident Capital Trust
8.60% 12/01/26.......................................................... 5,000 4,900
Reliance Industries Ltd.
10.375% 06/24/16......................................................... 5,000 5,459(b)
10.50% 08/06/46......................................................... 5,000 5,693(b)
Republic of Philippines
8.60% 06/15/27.......................................................... 5,000 4,950
Republic of Poland
3.75% 10/27/14.......................................................... 10,000 8,688
Riggs Capital Trust
8.625% 12/31/26.......................................................... 10,000 9,886(b)
RJR Nabisco Inc.
8.00% 07/15/01.......................................................... 50,000 50,487
Sun Life Canada Capital Trust
8.526% 05/29/49.......................................................... 15,000 15,561(b)
Tele-Communications Inc.
8.25% 01/15/03.......................................................... 35,000 36,219
Tenet Healthcare Corp.
8.00% 01/15/05.......................................................... 10,000 10,025
Time Warner Entertainment Co. L.P.
10.15% 05/01/12......................................................... 50,000 60,664
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
14 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Time Warner Pass-Through Asset Trust
6.10% 12/30/01.......................................................... 25,000 23,947
Triton Energy Ltd.
8.75% 04/15/02.......................................................... 7,000 7,280
United Co. Financial Corp.
7.00% 07/15/98.......................................................... 50,000 50,195
Washington Mutual Capital
8.375% 06/01/27.......................................................... 12,000 12,193
WorldCom Inc.
7.55% 04/01/04.......................................................... 15,000 15,281
----------
Total Corporate Notes
(Cost $1,211,089).................................................... 1,233,990
----------
MORTGAGE-BACKED-32.3%
Federal Home Loan Mortgage Corp.
7.50% TBA............................................................... 90,000 90,253(c)
9.00% 02/01/17-12/01/25................................................. 413,850 438,151
----------
528,404
----------
Federal National Mortgage Assoc.
6.50% 01/01/04.......................................................... 2,165 2,146
7.50% TBA............................................................... 45,000 45,056(c)
8.00% TBA............................................................... 40,000 40,887(c)
8.50% 12/01/24.......................................................... 40,860 42,616
----------
130,705
----------
Government National Mortgage Assoc.
6.50% 05/15/24.......................................................... 39,951 38,465
7.00% 08/20/26.......................................................... 64,908 66,348(h)
7.50% 12/15/23.......................................................... 107,980 108,790
8.00% 03/15/23-12/15/23................................................. 116,699 120,016
8.50% 10/15/17.......................................................... 172,802 182,413
----------
516,032
----------
Mid State Trust
7.54% 07/01/35.......................................................... 10,000 10,061
----------
COLLATERALIZED MORTGAGE OBLIGATIONS
Aetna Commercial Mortgage Trust
6.42% 12/26/30.......................................................... 15,714 15,697
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 15
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Asset Securitization Corp.
7.41% 01/13/30.......................................................... 50,000 51,375
BHN Mortgage Trust
7.916% 07/25/09.......................................................... 9,840 9,987
DLJ Mortgage Acceptance Corp.
6.85% 12/17/27.......................................................... 40,000 39,575(b)
Federal National Mortgage Assoc.
5.44% 07/01/26.......................................................... 2,876 1,956(d,e)
7.00% 06/18/20.......................................................... 29,489 29,609
7.00% 09/01/23-10/01/23................................................. 136,426 45,727(f)
7.148% 10/17/09.......................................................... 14,000 14,092
7.17% 01/17/13.......................................................... 6,000 6,047
7.41% 03/25/21.......................................................... 18,000 18,630
8.50% 07/25/22.......................................................... 20,776 6,776(f)
9.00% 05/25/22.......................................................... 13,585 4,551(f)
Federal National Mortgage Assoc. REMIC
6.856% 06/17/11.......................................................... 11,000 10,886
6.95% 07/25/20.......................................................... 19,000 16,465(d,e)
6.96% 12/25/22.......................................................... 24 24
6.96% 12/25/22.......................................................... 13,436 9,809(d,e)
7.23% 09/17/09.......................................................... 7,000 7,079
7.62% 12/17/04.......................................................... 15,000 15,469
7.82% 09/25/23.......................................................... 34,748 21,240(d,e)
8.62% 09/25/23.......................................................... 35,000 21,579(d,e)
9.51% 10/25/23.......................................................... 13,979 10,659(d,e)
Morgan Stanley Capital Inc.
6.477% 10/15/10.......................................................... 153,224 151,309(b)
----------
508,541
----------
Total Mortgage-Backed
(Cost $1,686,051).................................................... 1,693,743
----------
Total Bonds and Notes
(Cost $4,933,700).................................................... 4,971,953
----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
16 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED), CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- ----------
<S> <C>
PREFERRED STOCK-1.4%
Beacon Properties Corp., 8.98%.............................................. 765...... 19,268
Entergy Gulf States Inc., $1.75............................................. 380...... 9,500
First Industrial Reality Trust Inc., 8.625%................................. 665 16,625
News Corp. Exchange Trust, 5.00%............................................ 150...... 9,720(b)
UDS Capital, 8.32%.......................................................... 715 17,696
----------
Total Preferred Stock
(Cost $72,111)....................................................... 72,809
----------
Total Investments in Securities
(Cost $5,005,811).................................................... 5,044,762
----------
SHORT-TERM INVESTMENTS-10.5%
GEI Short-Term Investment Fund
(Cost $549,529)...................................................... 549,529 549,529
Other Assets and Liabilities, net (6.8%).................................... (354,139)
----------
NET ASSETS-100%.................................................................. $5,240,152
----------
----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 17
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
----------- ----------
<S> <C>
ASSETS
Investments in securities, at market
(cost $15,718,502 and $5,005,811, respectively).............................. $21,246,400 $5,044,762
Short-term investments (at amortized cost)..................................... 578,019 549,529
Cash........................................................................... 77 793
Foreign currency (cost $648 and $0, respectively).............................. 640 --
Receivable for investments sold................................................ 199,334 679,538
Income receivables............................................................. 27,354 75,550
Receivable for fund shares sold................................................ 8,491 3,806
Deferred organizational costs.................................................. 7,910 7,910
----------- ----------
Total assets................................................................... 22,068,225 6,361,888
----------- ----------
LIABILITIES
Distributions payable to shareholders.......................................... -- 4,593
Payable for investments purchased.............................................. 217,399 1,102,408
Payable for fund shares repurchased............................................ 14 3,585
Payable to GEIM................................................................ 22,041 11,150
----------- ----------
Total liabilities.............................................................. 239,454 1,121,736
----------- ----------
NET ASSETS..................................................................... $21,828,771 $5,240,152
----------- ----------
----------- ----------
NET ASSETS CONSIST OF:
Capital paid in........................................................... $14,862,007 $5,232,179
Undistributed (overdistributed) net investment income..................... 109,789 325
Accumulated net realized gain (loss)...................................... 1,329,137 (31,303)
Net unrealized appreciation/(depreciation) on:
Investments............................................................. 5,527,898 38,951
Foreign currency transactions........................................... (60) --
----------- ----------
NET ASSETS..................................................................... $21,828,771 $5,240,152
----------- ----------
----------- ----------
Shares outstanding ($.001 par value)........................................... 870,592 444,021
Net asset value, offering and redemption price per share....................... $ 25.07 $ 11.80
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
18 Variable Investment Trust
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
---------- --------
<S> <C>
INVESTMENT INCOME
Income:
Dividends.................................................................... $ 167,024 $ 1,496
Interest..................................................................... 24,747 187,385
Less: Foreign taxes withheld................................................. (1,654) --
---------- --------
Total income...................................................................... 190,117 188,881
---------- --------
EXPENSES:
Advisory and administration fees............................................. 53,750 12,982
Transfer agent............................................................... 4,215 4,215
Trustees' fees............................................................... 4,322 1,298
Custody and accounting....................................................... 1,271 382
Legal........................................................................ 10,172 3,052
Audit........................................................................ 12,715 3,814
Amortization of deferred organization expense................................ 1,566 1,566
Other expenses............................................................... 509 152
---------- --------
Total expenses before waiver...................................................... 88,520 27,461
Less: Expenses waived or borne by the advisor..................................... (10,338) (7,987 )
---------- --------
Net expenses...................................................................... 78,182 19,474
---------- --------
Net investment income............................................................. 111,935 169,407
---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on:
Investments.................................................................. 718,034 (11,383)
Futures...................................................................... 162,325 198
Written options.............................................................. -- 377
Foreign currency transactions................................................ (60) --
Increase (decrease) in unrealized appreciation/(depreciation) on:
Investments.................................................................. 2,413,755 (3,745)
Futures...................................................................... 8,850 --
Foreign currency transactions................................................ (309) --
---------- --------
Net realized and unrealized gain (loss) on investments............................ 3,302,595 (14,553)
---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $3,414,530 $154,854
---------- --------
---------- --------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 19
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GE U.S. EQUITY PORTFOLIO GE FIXED INCOME PORTFOLIO
------------------------------------ ------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED JUNE 30, 1997 YEAR ENDED
(A) DECEMBER 31, 1996 (A) DECEMBER 31, 1996
---------------- ----------------- ---------------- -----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income................. $ 111,935 $ 263,127 $ 169,407 $ 296,905
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
transactions....................... 880,299 1,083,526 (10,808) (20,781)
Net increase (decrease) in unrealized
appreciation/(depreciation)........ 2,422,296 1,564,581 (3,745) (101,681)
---------------- ----------------- ---------------- -----------------
Net increase from operations.......... 3,414,530 2,911,234 154,854 174,443
---------------- ----------------- ---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................. -- (266,657) (169,407) (296,905)
Net realized gains.................... -- (1,569,398) -- (114,424)
---------------- ----------------- ---------------- -----------------
Total distributions..................... -- (1,836,055) (169,407) (411,329)
---------------- ----------------- ---------------- -----------------
Increase (decrease) in net assets from
operations and distributions.......... 3,414,530 1,075,179 (14,553) (236,886)
---------------- ----------------- ---------------- -----------------
SHARE TRANSACTIONS:
Proceeds from sale of shares.......... 715,294 6,384,529 67,801 2,351,196
Value of distributions reinvested..... -- 1,836,055 170,345 405,749
Cost of shares redeemed............... (327,594) (340,318) (371,136) (403,559)
---------------- ----------------- ---------------- -----------------
Net increase (decrease) from share
transactions.......................... 387,700 7,880,266 (132,990) 2,353,386
---------------- ----------------- ---------------- -----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS................................ 3,802,230 8,955,445 (147,543) 2,116,500
NET ASSETS
Beginning of period..................... 18,026,541 9,071,096 5,387,695 3,271,195
---------------- ----------------- ---------------- -----------------
End of period........................... $ 21,828,771 $18,026,541 $5,240,152 $ 5,387,695
---------------- ----------------- ---------------- -----------------
---------------- ----------------- ---------------- -----------------
Undistributed (overdistributed) net
investment income, end of period...... $ 109,789 $ 267 $ 325 $ (3,063)
---------------- ----------------- ---------------- -----------------
---------------- ----------------- ---------------- -----------------
CHANGES IN PORTFOLIO SHARES:
Shares sold by subscription............. 31,286 313,305 5,790 193,912
Issued for distributions reinvested..... -- 85,239 14,531 34,209
Shares redeemed......................... (14,493) (15,566) (31,530) (33,870)
---------------- ----------------- ---------------- -----------------
Net increase (decrease) in Portfolio
shares................................ 16,793 382,978 (11,209) 194,251
---------------- ----------------- ---------------- -----------------
---------------- ----------------- ---------------- -----------------
</TABLE>
- ------------
(a) Unaudited.
- --------------------------------------------------------------------------------
<PAGE>
20 Variable Investment Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data based on a share outstanding throughout the periods indicated
(June 30, 1997 data is unaudited)
<TABLE>
<CAPTION>
GE U.S. EQUITY GE FIXED INCOME
PORTFOLIO PORTFOLIO
--------------------------------- ---------------------------------
6/30/97 12/31/96 12/31/95 (C) 6/30/97 12/31/96 12/31/95 (C)
------- -------- ------------ ------- -------- ------------
<S> <C>
Net asset value, beginning of period............ $ 21.11 $ 19.27 $15.00 $ 11.84 $12.53 $12.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income......................... 0.13 0.34 0.46 0.39 0.76 0.82
Net realized and unrealized gains (losses) on
investments................................ 3.83 3.90 4.87 (0.05) (0.43) 1.13
------- -------- ------------ ------- -------- ------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS.................................... 3.96 4.24 5.33 0.34 0.33 1.95
------- -------- ------------ ------- -------- ------------
LESS DISTRIBUTIONS FROM:
Net investment income......................... 0.00 0.35 0.47 0.38 0.76 0.84
Net realized gains............................ 0.00 2.05 0.59 0.00 0.26 0.58
------- -------- ------------ ------- -------- ------------
TOTAL DISTRIBUTIONS............................. 0.00 2.40 1.06 0.38 1.02 1.42
------- -------- ------------ ------- -------- ------------
NET ASSET VALUE, END OF PERIOD.................. $ 25.07 $ 21.11 $19.27 $ 11.80 $11.84 $12.53
------- -------- ------------ ------- -------- ------------
------- -------- ------------ ------- -------- ------------
TOTAL RETURN (A)................................ 18.76% 21.72% 35.58% 2.94% 2.92% 16.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $21,829 $ 18,027 $9,071 $ 5,240 $5,388 $3,271
Ratios to average net assets:
Net investment income*..................... 1.14% 1.80% 2.10% 6.49% 6.37% 6.52%
Expenses*.................................. 0.80% 0.80% 0.80% 0.75% 0.75% 0.75%
Gross Expenses*............................ 0.90% 0.88% 1.03% 1.05% 1.03% 1.15%
Portfolio turnover rate....................... 14% 35% 71% 153% 222% 253%
Average brokerage commissions (b)............. $ .053 $ .071 N/A N/A N/A N/A
</TABLE>
- ------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) Total returns assume changes in share price, reinvestment of dividends and
capital gains, and assume no sales charge. Had the adviser not absorbed a
portion of expenses, total returns would have been lower. Periods less than
one year are not annualized.
(b) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. Mark-ups, mark-downs and spreads on shares
traded on a principal basis are not included unless they are disclosed on
confirmations prepared in accordance with rule 10b-10 under the Securities
Exchange Act of 1934.
(c) Information is for the period January 3, 1995, commencement of investment
operations, through December 31, 1995.
* Annualized for periods less than one year.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 21
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION OF THE PORTFOLIOS. Variable Investment Trust (the "Trust") is
registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Trust was formed as a
Massachusetts business trust pursuant to a Declaration of Trust (as amended) on
February 25, 1994. The Declaration authorizes the Trust's Trustees to create
separate series, each with an unlimited number of shares of beneficial interest.
The Trust is comprised of five investment portfolios (the "Portfolios") only
four of which are currently being offered through the Power Portfolio Variable
Annuity, as follows: GE U.S. Equity Portfolio, GE International Equity
Portfolio, GE Fixed Income Portfolio and GE Money Market Portfolio.
Shares of the Trust are offered only to insurance company separate accounts
that fund certain variable contracts. These insurance companies may include
insurance companies affiliated with GEIM, the investment adviser and
administrator of each Portfolio. As of June 30, 1997, Great Northern Insured
Annuity Corporation, an affiliated insurance company, controlled the Portfolios
by ownership, through separate accounts (the "Accounts", of virtually all of the
Portfolios' shares of beneficial interest. The Trust may in the future offer
shares of some or all of the Portfolios to variable life insurance separate
accounts.
On or about May 16, 1997, GNA and several other applicants filed an
application with the Securities and Exchange Commission ("SEC") seeking an order
approving the substitution of shares of certain investment portfolios of GE
Investments Funds, Inc. ("GEIF") for shares of the Portfolios currently held by
the Accounts. The effect of such a share substitution would be to replace the
Portfolios of Variable Investment Trust with those of GEIF as investment options
under the variable annuity contracts.
If the proposed substitutions are approved and carried out, each contract
owner affected by the substitution will be sent a written notice informing them
that the substitutions were approved and carried out and that they may make one
transfer of all amounts under their contract from the affected Portfolios on the
date of the notice to any GEIF portfolio.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The following summarizes the
significant accounting policies of the Trust:
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 may differ from those estimates.
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 last 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 are
valued at the last sale price, or if no sales occurred on that day, at the last
quoted bid price. Forward foreign
- --------------------------------------------------------------------------------
<PAGE>
22 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
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. Fund positions which
cannot be valued as set forth above are valued at fair value determined under
procedures approved by the Board of Directors of the Portfolios.
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.
FOREIGN CURRENCY. Accounting records of the Portfolios are maintained in U.S.
dollars. Investment securities and other assets and liabilities and purchases
and sales of investment securities denominated in a foreign currency are
translated to U.S. dollars at the prevailing exchange rate on the respective
dates of such transactions.
The Portfolios do not isolate the portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in their market prices. Such fluctuations are
included in 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
Portfolios' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities, other than investments in
securities as a result of changes in exchange rates.
INCOME TAXES. It is each Portfolio'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 Portfolio 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 June 30, 1997, the GE Fixed
Income Portfolio had a capital loss carryover of $15,499 which expires December
31, 2004. Any net capital and currency losses incurred after October 31, within
the Portfolio's tax year, are deemed to arise on the first day of the
Portfolio's next tax year if the Portfolio so elects to defer such losses.
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
after ex-dividend date 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.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 23
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
EXPENSES. Expenses of the Trust which are directly identifiable to a specific
Portfolio are allocated to that Portfolio. Expenses which are not readily
identifiable to a specific Portfolio are allocated in such a manner as deemed
equitable, taking into consideration the nature and type of expense and the
relative sizes of the Portfolios. All expenses of the Portfolios are paid by the
Investment Adviser and reimbursed by the Portfolios up to the voluntary expense
limitations.
DISTRIBUTIONS TO SHAREHOLDERS. GE Fixed Income Portfolio declare investment
income dividends daily and pay them monthly. GE U.S. Equity Portfolio declare
and pay dividends of net investment income annually. All Portfolios 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.
These differences include treatment of realized and unrealized gains and losses
on forward foreign currency contracts, paydown gains and losses on
mortgage-backed securities, losses on wash sale transactions, and deferred
organization expenses. 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.
DEFERRED ORGANIZATIONAL COSTS. Organizational expenses applicable to the
Portfolios have been deferred and are being amortized on a straight-line basis
over a period of five years from commencement of investment operations.
WHEN-ISSUED SECURITIES. The Portfolios 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 the
Portfolio to subsequently invest at less advantageous yields. In connection with
such purchases, the Portfolio is required to hold liquid assets as collateral
with the Portfolios' custodian sufficient to cover the purchase price, unless
they enter into an offsetting contract for the sale of equal securities and
value.
REPURCHASE AGREEMENTS. The Portfolios' custodian takes possession of the
collateral pledged for investments in repurchase agreements on behalf of the
Portfolios. It is the policy of the Portfolios to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation.
FUTURES AND OPTIONS. The Portfolios, may invest in futures contracts and
purchase and write options. These investments involve, to varying degrees,
elements of market risk and risks in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts reflect the
extent of the involvement the Portfolios have in the particular classes of these
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 an inability of counterparties
- --------------------------------------------------------------------------------
<PAGE>
24 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
to perform. The Portfolios may invest in futures contracts for the following
reasons: (1) for the purpose of hedging against the effects of changes in the
value of portfolio securities or other investments due to anticipated changes in
interest rates, stock market conditions and currency market conditions, (2) to
gain stock, bond, or currency market exposure for accumulating and residual cash
positions, (3) for duration management, (4) when such transactions are an
economically appropriate way to reduce risks inherent in the management of a
Portfolio, and (5) for non-hedging purposes such as seeking additional income or
otherwise seeking to increase total return.
Upon entering into a futures contract, the Portfolio 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 Portfolio each day. The variation margin payments are
equal to the daily change in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
futures contract is closed. The Portfolio will realize a gain or loss upon the
expiration or closing of an 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.
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. FEES AND COMPENSATION PAID TO AFFILIATES.
ADVISORY AND ADMINISTRATION FEES. Compensation of GEIM, the Portfolio's
Investment Adviser and Administrator, a wholly-owned subsidiary of General
Electric Company, for investment advisory and administrative services is paid
monthly based on the average daily net assets of each Portfolio. Such advisory
and administration fees are based on the annual rates listed in the table below.
Until further notice, GEIM has agreed to reduce other operating expenses
(exclusive of advisory and administration fees) for each Portfolio as indicated
in the following table:
<TABLE>
<CAPTION>
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND LIMITATION OF OTHER
ADMINISTRATION FEES OPERATING EXPENSES
------------------- -------------------
<S> <C>
GE U.S Equity Portfolio................................. .55% .25%
GE Fixed Income Portfolio............................... .50% .25%
</TABLE>
TRUSTEES' FEES. The Portfolios pay no compensation to their Trustees who are
employees of GEIM. Trustees who are not GEIM employees receive an annual fee of
$5,000 and an additional fee of $500 for each Trustees' meeting attended.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 25
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION. Aggregate gross
unrealized appreciation/
(depreciation) of investments for each Portfolio at June 30, 1997, were as
follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C>
GE U.S. Equity Portfolio..................................... $5,600,631 $ 72,733 $5,527,898
GE Fixed Income Portfolio.................................... 46,597 7,646 38,951
</TABLE>
The aggregate cost of each Portfolio's investments was substantially the same
for book and federal income tax purposes at June 30, 1997.
5. OPTIONS. During the period ended June 30, 1997, the following option
contracts were written:
<TABLE>
<CAPTION>
GE FIXED INCOME PORTFOLIO
-------------------------
NUMBER
OF CONTRACTS PREMIUM
------------ -------
<S> <C>
Balance as of December 31, 1996............................................ -- $--
Written.................................................................... 142 388
Closed and Expired......................................................... (142) (388)
Exercised.................................................................. -- --
------------ -------
Balance as of June 30, 1997................................................ -- $--
------------ -------
------------ -------
</TABLE>
6. INVESTMENT TRANSACTIONS. The cost of purchases and the proceeds from sales
of investments, other than U.S. Government securities, short-term securities and
options, for the period ended June 30, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C>
GE U.S. Equity Portfolio................................ $ 4,678,898 $ 2,522,192
GE Fixed Income Portfolio............................... 1,979,467 1,248,539
</TABLE>
The cost of purchases and the proceeds from sales of long-term U.S. Government
securities for the period ended June 30, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C>
GE U.S. Equity Portfolio................................ $ 45,651 $ 20,012
GE Fixed Income Portfolio............................... 5,723,244 6,588,392
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
26 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
COMMON STOCK-87.6%
BASIC MATERIALS-4.0%
Air Products & Chemicals Inc................................................. 719 49,701
Airgas Inc................................................................... 699 15,378(a)
Avery Dennison Corp.......................................................... 398 14,079
Barrick Gold Corp............................................................ 747 21,476
Du Pont de Nemours (E.I.) & Co............................................... 2,356 222,347
Eastman Chemical Co.......................................................... 298 16,465
FMC Corp..................................................................... 314 22,019(a)
Freeport McMoran Copper & Gold Inc. (Class A)................................ 921 25,903
Hoechst AG................................................................... 187 8,835
IMC Global Inc............................................................... 541 21,167
Mead Corp.................................................................... 824 47,895
Morton International Inc..................................................... 2,273 92,625
Newmont Mining Corp.......................................................... 1,056 47,256
PPG Industries Inc........................................................... 143 8,026
Rayonier Inc................................................................. 660 25,327
Santa Fe Pacific Gold Corp................................................... 995 15,298
Weyerhaeuser Co.............................................................. 1,423 67,415
-----------
721,212
-----------
CAPITAL GOODS-11.6%
ABB AG....................................................................... 24 29,854(a)
AlliedSignal Inc............................................................. 4,445 297,815
AMP Inc...................................................................... 1,140 43,747
Armstrong World Industries Inc............................................... 523 36,348
Boeing Co.................................................................... 301 32,019
Browning-Ferris Industries Inc............................................... 1,144 30,030
Caterpillar Inc.............................................................. 100 7,525
Cooper Industries Inc........................................................ 249 10,489
Corning Inc.................................................................. 434 20,073
Deere & Co................................................................... 2,109 85,678
Dover Corp................................................................... 3,848 193,362
Eaton Corp................................................................... 265 18,484
Emerson Electric Co.......................................................... 2,643 255,710
General Signal Corp.......................................................... 778 33,259
Hanson PLC ADR............................................................... 2,194 14,810
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 27
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Hubbell Inc. (Class B)....................................................... 4,243 183,510
Ingersoll Rand Co............................................................ 411 18,290
Lockheed Martin Corp......................................................... 728 66,612
Mannesmann AG................................................................ 18 7,802
Martin Marietta Materials, Inc............................................... 897 20,855
Masco Corp................................................................... 249 8,964
McDonnell Douglas Corp....................................................... 660 42,240
Minnesota Mining & Manufacturing............................................. 532 44,089
Molex Inc. (Class A)......................................................... 670 23,869
National Service Industries Inc.............................................. 498 18,613
Newport News Shipbuilding Inc................................................ 179 2,685(a)
Parker Hannifin Corp......................................................... 137 5,309
Sherwin Williams Co.......................................................... 271 15,176
Tenneco Inc.................................................................. 394 17,779(a)
Textron Inc.................................................................. 2,302 216,963
Timken Co.................................................................... 498 22,846
Tyco International Ltd....................................................... 318 16,814
Ucar International Inc....................................................... 267 10,046(a)
United Technologies Corp..................................................... 1,979 130,614
Waste Management International PLC ADR....................................... 476 3,749(a)
Wheelabrator Technologies Inc................................................ 498 8,093
WMX Technologies Inc......................................................... 2,713 88,512
-----------
2,082,633
-----------
CONSUMER--CYCLICAL-7.2%
ACNielsen Corp............................................................... 568 8,591(a)
American Greetings Corp. (Class A)........................................... 199 5,647
American Medical Response.................................................... 737 23,953(a)
Automatic Data Processing Inc................................................ 2,235 95,826
Carnival Corp. (Class A)..................................................... 648 21,384
Catalina Marketing Corp...................................................... 251 13,836(a)
Circus Circus Enterprises Inc................................................ 1,262 43,381(a)
Comcast Corp. (Class A)...................................................... 2,805 49,964
Comcast UK Cable Partners Ltd. (Class A)..................................... 295 4,019(a)
CUC International Inc........................................................ 119 2,826(a)
Disney (Walt) Co............................................................. 2,448 170,442
Donnelley (R.R.) & Sons Co................................................... 199 6,244
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
28 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Dun & Bradstreet Corp........................................................ 659 15,651
Eastman Kodak Co............................................................. 1,619 129,925
Federal-Mogul Corp........................................................... 150 3,300
Ford Motor Co................................................................ 2,375 75,703
Gannett Inc.................................................................. 1,504 112,612
General Motors Corp.......................................................... 925 51,569
Goodyear Tire & Rubber Co.................................................... 617 31,698
Harman International Industries Inc.......................................... 314 17,466
International Cabletel Inc................................................... 3,212 81,103(a)
Interpublic Group Cos. Inc................................................... 1,473 69,967
ITT Industries Inc........................................................... 436 10,682
Knight Ridder Inc............................................................ 274 10,481
McDonalds Corp............................................................... 1,756 79,459
Metromedia International Group Inc........................................... 398 3,930(a)
Readers Digest Assoc. Inc. (Class A)......................................... 146 5,877
Rubbermaid Inc............................................................... 197 4,482
Scholastic Corp.............................................................. 240 16,140(a)
TCI Satellite Entertainment Inc. (Class A)................................... 191 1,886(a)
Tele-Communications Inc. (Series A).......................................... 2,883 37,659(a)
Tele-Communications Inc. Liberty Media Group (Series A)...................... 1,989 56,811(a)
Time Warner, Inc............................................................. 791 29,662
-----------
1,292,176
-----------
CONSUMER--STABLE-8.3%
Anheuser Busch Cos. Inc...................................................... 4,283 171,320
Archer-Daniels Midland Co.................................................... 1,242 27,324
Avon Products Inc............................................................ 1,027 58,668
Coca Cola Co................................................................. 146 7,683
Colgate Palmolive Co......................................................... 946 87,269
Conagra Inc.................................................................. 423 21,044
CPC International Inc........................................................ 747 57,893
Duracell International Inc................................................... 230 16,071
General Mills Inc............................................................ 686 43,475
Gillette Co.................................................................. 168 13,062
International Flavours....................................................... 487 21,915
Kellogg Co................................................................... 249 16,341
Kimberly Clark Corp.......................................................... 1,760 167,640
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 29
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Nestle S.A. (Regd.).......................................................... 26 27,913
Pepsico Inc.................................................................. 8,232 240,786
Philip Morris Cos. Inc....................................................... 2,483 279,648(g)
Procter & Gamble Co.......................................................... 1,846 198,445
Ralston Purina Co............................................................ 249 18,270
Sara Lee Corp................................................................ 773 28,794
-----------
1,503,561
-----------
ENERGY-9.3%
Amerada Hess Corp............................................................ 162 9,376
Amoco Corp................................................................... 1,980 159,390
Anadarko Petroleum Co........................................................ 578 37,426
Atlantic Richfield Co........................................................ 243 32,198
Baker Hughes Inc............................................................. 1,361 46,954
British Petroleum PLC ADR.................................................... 149 21,065
Burlington Resources Inc..................................................... 1,654 83,320
Diamond Offshore Drilling Inc................................................ 161 9,177(a)
Elf Aquitaine SA............................................................. 150 6,788
Exxon Corp................................................................... 3,263 319,774
Halliburton Co............................................................... 462 27,836
Louisiana Land & Exploration Co.............................................. 189 10,135
Mobil Corp................................................................... 961 117,482
Nabors Industries Inc........................................................ 1,069 20,578(a)
Royal Dutch Petroleum Co. ADR................................................ 1,388 237,001
Schlumberger Ltd............................................................. 2,292 228,913
Texaco Inc................................................................... 1,404 137,767
Tosco Corp................................................................... 311 24,608
Total S.A. ADR............................................................... 661 26,605
Union Pacific Resources Group Inc............................................ 1,153 33,725
Unocal Corp.................................................................. 2,240 91,000
-----------
1,681,118
-----------
FINANCIAL-11.1%
American Express Co.......................................................... 2,805 158,482
Bank of Boston Corp.......................................................... 970 62,322
Bank of New York Inc......................................................... 1,166 39,352
BankAmerica Corp............................................................. 274 27,332
Bankers Trust New York Corp.................................................. 59 5,089
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
30 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Beneficial Corp.............................................................. 651 41,257
Boatmen's Bancshares Inc..................................................... 717 46,246
Chase Manhattan Corp......................................................... 498 44,446
Citicorp..................................................................... 2,836 292,108
CMAC Investment Corp......................................................... 504 18,522
Countrywide Credit Industries................................................ 941 26,936
Dean Witter Discover & Co.................................................... 1,519 100,634
Echelon International Corp................................................... 35 546
Edwards A G Inc.............................................................. 448 15,064
Federal National Mortgage Assoc.............................................. 8,283 308,542
Mellon Bank Corp............................................................. 757 53,747
Merrill Lynch & Co. Inc...................................................... 225 18,338
Morgan (J.P.) & Co. Inc...................................................... 1,235 120,567
Morgan Stanley Group Inc..................................................... 256 14,624
Oasis Residential Inc........................................................ 168 3,822
Salomon Inc.................................................................. 286 13,478
Standard Federal Bancorporation.............................................. 324 18,428
State Street Boston Corp..................................................... 837 53,986
T. Rowe Price & Associates................................................... 300 13,050
Travelers Group Inc.......................................................... 7,338 332,962
Trizec Hahn Corp............................................................. 348 7,656(a)
US Bancorp................................................................... 516 23,188
Wells Fargo & Co............................................................. 551 148,632
-----------
2,009,356
-----------
HEALTHCARE-10.1%
Abbott Laboratories.......................................................... 3,966 201,274
Allergan Inc................................................................. 1,696 60,420
American Home Products Corp.................................................. 3,213 188,362
Arrow International Inc...................................................... 278 7,993
Baxter International Inc..................................................... 829 33,989
Bristol-Myers Squibb Co...................................................... 2,459 267,416
Cardinal Health Inc.......................................................... 503 29,271
Columbia/HCA Healthcare Corp................................................. 293 11,940
Dentsply International Inc................................................... 238 11,305
Eli Lilly & Co............................................................... 1,381 100,813
Johnson & Johnson............................................................ 4,092 203,577
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 31
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Lincare Holdings Inc......................................................... 335 13,735(a)
Living Centers of America Inc................................................ 483 13,403(a)
Merck & Co. Inc.............................................................. 2,908 230,459
Pfizer Inc................................................................... 2,002 165,916
Scherer (R.P.) Corp. Delaware................................................ 512 25,728(a)
Schering Plough Corp......................................................... 1,344 87,024
Smithkline Beecham PLC ADR................................................... 2,085 141,780
St. Jude Medical Inc......................................................... 125 5,328(a)
Watson Pharmaceuticals Inc................................................... 426 19,143(a)
-----------
1,818,876
-----------
INSURANCE-5.4%
Aetna Inc.................................................................... 25 2,000
American International Group Inc............................................. 2,154 233,170
Chubb Corp................................................................... 523 28,111
Everest Reinsurance Holdings................................................. 166 4,773
General Reinsurance Corp..................................................... 705 111,214
ITT Hartford Group Inc....................................................... 408 27,540
Lincoln National Corp........................................................ 1,444 75,810
Loews Corp................................................................... 1,864 175,682
Marsh & McLennan Cos. Inc.................................................... 781 81,224
Provident Cos. Inc........................................................... 1,443 69,805
Providian Corp............................................................... 452 23,221
TIG Holdings Inc............................................................. 3,258 110,365
UNUM Corp.................................................................... 483 34,897
-----------
977,812
-----------
RETAIL TRADE-3.6%
American Stores Co........................................................... 747 30,534
Arbor Drugs Inc.............................................................. 1,720 29,885
CVS Corp..................................................................... 300 12,413
Dayton Hudson Corp........................................................... 1,044 40,977
Eckerd Jack Corp............................................................. 147 4,704(a)
Federated Department Stores Inc.............................................. 1,164 39,721(a)
General Nutrition Cos. Inc................................................... 398 6,716(a)
Home Depot Inc............................................................... 1,718 86,115
Lowes Cos. Inc............................................................... 176 6,248
May Department Stores Co..................................................... 262 12,249
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
32 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
Office Max Inc............................................................... 365 3,878(a)
Penney J C Inc............................................................... 225 10,969
Price Costco Inc............................................................. 1,331 33,441(a)
Sears Roebuck & Co........................................................... 2,487 114,713
Toys 'R Us Inc............................................................... 2,563 76,890(a)
Wal Mart Stores Inc.......................................................... 6,268 143,380
-----------
652,833
-----------
SOFTWARE & SERVICES-3.2%
Computer Associates International Inc........................................ 1,233 61,342
Electronic Data Systems Corp................................................. 479 20,717
Equifax Inc.................................................................. 4,995 152,972
First Data Corp.............................................................. 4,246 154,979
Informix Corp................................................................ 249 5,073(a)
Intuit Inc................................................................... 293 9,229(a)
Microsoft Corp............................................................... 398 32,885(a)
Reuters Holdings PLC ADR (Class B)........................................... 1,882 143,973
-----------
581,170
-----------
TECHNOLOGY-6.1%
3Com Corp.................................................................... 415 30,451(a)
Applied Materials Inc........................................................ 736 26,450(a)
Cisco Systems Inc............................................................ 862 54,845(a)
DSC Communications Corp...................................................... 292 5,220(a)
Hewlett Packard Co........................................................... 4,060 204,015
Intel Corp................................................................... 2,529 331,141
International Business Machines Corp......................................... 1,677 253,227
Lucent Technologies Inc...................................................... 392 18,130
Motorola Inc................................................................. 440 27,005
Northern Telecom Ltd......................................................... 354 21,904
Perkin Elmer Corp............................................................ 56 3,297
Pitney Bowes Inc............................................................. 375 20,437
Rockwell International Corp.................................................. 349 21,245(a)
Storage Technology Corp...................................................... 166 7,906(a)
Varian Associates Inc........................................................ 898 45,686
Xerox Corp................................................................... 428 22,523
-----------
1,093,482
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 33
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
--------- -----------
<S> <C>
TRANSPORTATION-1.3%
Burlington Northern Santa Fe................................................. 890 76,874
Canadian Pacific Ltd. (new).................................................. 1,307 34,635
Continental Airlines Inc. (Class B).......................................... 255 7,204(a)
Delta Air Lines Inc.......................................................... 249 17,648
Pittston Brinks Group........................................................ 460 12,420
Union Pacific Corp........................................................... 1,300 78,162
-----------
226,943
-----------
UTILITIES-6.4%
Airtouch Communications Inc.................................................. 5,472 138,168(a)
Allegheny Power Systems Inc.................................................. 393 11,937
American Electric Power Inc.................................................. 591 24,305
American Telephone & Telegraph Corp.......................................... 3,668 159,558
Bellsouth Corp............................................................... 1,663 67,144
Duke Power Co................................................................ 864 39,960
El Paso Natural Gas Co....................................................... 61 3,081
Enron Corp................................................................... 75 3,234
Florida Progress Corp........................................................ 590 19,028
FPL Group Inc................................................................ 958 44,068
Frontier Corp................................................................ 325 7,353
GTE Corp..................................................................... 5,093 231,731
MCI Communications Corp...................................................... 3,200 104,600
Mobile Telecommunication Technologies Corp................................... 235 1,998(a)
NYNEX Corp................................................................... 884 42,542
Pacificorp................................................................... 1,918 39,319(g)
Pinnacle West Capital Corp................................................... 430 13,653
Portland General Corp........................................................ 136 5,712
Public Service Co. Colorado.................................................. 548 21,303
SBC Communications Inc....................................................... 1,790 92,632
Scana Corp................................................................... 266 7,116
Sonat Inc.................................................................... 822 42,333
Southern Co.................................................................. 904 20,453
Vanguard Cellular Systems Inc. (Class A)..................................... 576 9,072
-----------
1,150,300
-----------
Total Common Stock
(Cost $12,680,498).................................................... 15,791,472
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
34 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- -----------
<S> <C>
CONVERTIBLE BONDS-0.1%
Berkshire Hathaway Inc.
1.00% 12/02/01........................................................ 7,000 6,510
Charming Shoppes Inc.
7.50% 07/15/06........................................................ 6,000 5,970
Continental Airlines Inc.
6.75% 04/15/06........................................................ 11,000 12,403(b)
-----------
Total Convertible Bonds
(Cost $23,696)...................................................... 24,883
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
----------
<S> <C>
PREFERRED STOCK-0.7%
Airtouch Communications Inc. (Class B), 6.00%.............................. 272 7,412
Airtouch Communications Inc. (Class C), 4.25%.............................. 207 9,367
Continental Airlines Finance Trust, 8.50%.................................. 71 4,739
Continental Airlines Finance Trust, 8.50%.................................. 224 14,952(b)
Microsoft Corp. (Series A), 2.20%.......................................... 764 61,215
Occidental Petroleum Corp., 7.75%.......................................... 319 18,183(b)
-----------
Total Preferred Stock
(Cost $113,886)..................................................... 115,868
-----------
Total Investments in Securities
(Cost $12,818,080).................................................. 15,932,223
-----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 35
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- -----------
<S> <C>
SHORT TERM INVESTMENTS-11.4%
U.S. GOVERNMENT AGENCIES AND TIME DEPOSITS-11.4%
Federal Home Loan Mortgage Corp.
5.27% 01/03/97.......................................................... 600,000 599,825(d)
5.34% 01/30/97.......................................................... 600,000 597,419(d)
Federal National Mortgage Assoc.
5.28% 01/21/97.......................................................... 500,000 498,533(d)
State Street Cayman Islands
6.25% 01/02/97.......................................................... 370,000 370,000
-----------
Total Short Term Investments
(Cost $2,065,777)................................................... 2,065,777
Other Assets and Liabilities, net 0.2%..................................... 28,541
-----------
NET ASSETS-100%................................................................. $18,026,541
-----------
-----------
</TABLE>
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Portfolio had the following long Futures Contract open at
December 31, 1996:
<TABLE>
<CAPTION>
EXPIRATION NUMBER UNDERLYING UNREALIZED
DESCRIPTION DATE OF CONTRACTS FACE VALUE LOSS
- ------------ ----------- ------------- ----------- -----------
<S> <C>
S&P 500 March 1997 5 $1,861,250 $8,850
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
36 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
BONDS AND NOTES-96.9%
U.S. TREASURIES-37.9%
U.S. Treasury Bonds
6.75% 08/15/26.......................................................... 276,000 278,070(g)
8.125% 08/15/19.......................................................... 142,000 164,254(g)
----------
442,324
----------
U.S. Treasury Notes
5.625% 02/28/01.......................................................... 131,000 128,401(g)
5.875% 10/31/98-11/15/99................................................. 284,000 283,336(g)
6.00% 12/31/01.......................................................... 77,000 76,711
6.125% 05/31/97-08/31/98................................................. 149,000 149,636(g)
6.25% 10/31/01.......................................................... 31,000 31,029(g)
6.375% 09/30/01.......................................................... 202,000 203,200(g)
6.50% 10/15/06.......................................................... 100,000 100,547(g)
6.625% 07/31/01.......................................................... 13,000 13,207
6.625% 06/30/01.......................................................... 122,000 123,963(g)
7.00% 07/15/06.......................................................... 114,000 118,436(g)
7.75% 12/31/99.......................................................... 353,000 369,217(g)
----------
1,597,683
----------
Total U.S. Treasuries
(Cost $2,039,165).................................................... 2,040,007
----------
ASSET BACKED-2.0%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25.......................................................... 6,391 6,201
CIT RV Owner Trust
5.40% 12/15/11.......................................................... 8,024 7,912
First Plus Home Input Loan Trust
7.80% 03/20/16.......................................................... 10,000 10,231
Fleetwood Credit Grantor Trust
6.90% 03/15/12.......................................................... 12,320 12,432
Ford Credit Auto Loan Master Trust
5.50% 02/15/03.......................................................... 9,000 8,688
Lehman FHA Title I Loan Trust
7.83% 09/25/17.......................................................... 10,000 10,244
MBNA Master Credit Card Trust
5.40% 09/15/00.......................................................... 9,000 8,893
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 37
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Provident Bank Home Equity Loan Trust
7.60% 10/25/12.......................................................... 13,574 13,748
Standard Credit Card Master Trust
5.95% 10/07/04.......................................................... 12,000 11,535
The Money Store Home Equity Trust
7.50% 01/15/26.......................................................... 14,000 14,149
7.90% 10/15/22.......................................................... 6,000 6,150
----------
Total Asset Backed
(Cost $109,014)...................................................... 110,183
----------
CORPORATE NOTES-20.9%
Argentaria Capital Fund
6.375% 02/14/06.......................................................... 30,000 28,406
Barnett Capital Trust
7.95% 12/01/26.......................................................... 7,000 6,926(b)
Bell Telephone Co.-Canada
9.50% 10/15/10.......................................................... 35,000 42,222
Camden Property Trust
7.00% 11/15/06.......................................................... 7,000 6,790
Capital One Bank
6.43% 06/29/98.......................................................... 50,000 50,035
Carter Holt Harvey Ltd.
8.875% 12/01/04.......................................................... 50,000 55,381
China International Trust & Investment Corp.
9.00% 10/15/06.......................................................... 10,000 11,045
Circus Circus Enterprises Inc.
6.70% 11/15/96.......................................................... 10,000 9,835
Deutsche Bank Financial Inc.
6.70% 12/13/06.......................................................... 20,000 19,627
Dresser Industries Inc.
7.60% 08/15/96.......................................................... 23,000 23,481
Enersis S.A.
7.40% 12/01/16.......................................................... 10,000 9,702
Federated Department Stores Inc.
10.00% 02/15/01.......................................................... 50,000 54,311
First Security Capital
8.41% 12/15/26.......................................................... 7,000 7,157(b)
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
38 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
General Motors Corp.
8.89% 08/18/03.......................................................... 25,000 27,576
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98.......................................................... 50,000 51,285
Guangdong International Trust & Investment Corp.
8.75% 10/24/16.......................................................... 10,000 10,291
HSBC Finance Nederland B.V.
7.40% 04/15/03.......................................................... 50,000 50,943(b)
Hydro-Quebec
8.05% 07/07/24.......................................................... 60,000 65,971
ITT Corp.
6.25% 11/15/00.......................................................... 7,000 6,887
Joy Technologies Inc.
10.25% 09/01/03.......................................................... 50,000 54,872
Korea Electric Power Corp.
7.75% 04/01/13.......................................................... 10,000 10,313
Landeskreditbank Baden
7.875% 04/15/04.......................................................... 25,000 26,633
Lehman Brothers Holdings Inc.
6.84% 09/25/98.......................................................... 25,000 25,190
Loewen Group International Inc.
7.50% 04/15/01.......................................................... 25,000 25,088
Morgan Stanley Finance PLC
8.03% 02/28/17.......................................................... 5,000 5,013
National Bank Hungary
8.875% 11/01/13.......................................................... 30,000 32,494
New York State Dormitory Authority Revenues
6.32% 04/01/99.......................................................... 15,000 15,014
News America Holdings Inc.
8.15% 10/17/36.......................................................... 45,000 44,245
North Atlantic Energy Corp.
9.05% 06/01/02.......................................................... 47,000 47,303
Paramount Communications Inc.
5.875% 07/15/00.......................................................... 50,000 48,304
Petroleos Mexicanos
7.75% 10/29/99.......................................................... 15,000 14,944(b)
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 39
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Provident Capital Trust
8.60% 12/01/26.......................................................... 5,000 5,071(b)
Reliance Industries Ltd.
10.375% 06/24/16.......................................................... 5,000 5,399(b)
10.50% 08/06/46.......................................................... 5,000 5,350(b)
Republic of Poland
3.75% 10/27/14.......................................................... 10,000 8,463
Riggs Capital Trust
8.625% 12/31/26.......................................................... 10,000 10,094(b)
RJR Nabisco Inc.
8.00% 07/15/01.......................................................... 50,000 50,161
Tele-Communications Inc.
8.25% 01/15/03.......................................................... 35,000 35,344
Time Warner Entertainment Co. L.P.
10.15% 05/01/12.......................................................... 50,000 59,968
United Co. Financial Corp.
7.00% 07/15/98.......................................................... 50,000 50,244
Union Electric Co.
7.69% 12/15/36.......................................................... 10,000 9,856
----------
Total Corporate Notes
(Cost $1,111,398).................................................... 1,127,234
----------
MORTGAGE-BACKED-36.1%
Federal Home Loan Mortgage Corp.
6.50% 03/01/04-07/01/09................................................. 45,622 45,123
7.50% 06/01/24-10/01/25................................................. 206,867 207,331
9.00% 02/01/17.......................................................... 71,590 76,042
----------
328,496
----------
Federal National Mortgage Assoc.
6.50% 01/01/04-04/01/26................................................. 78,825 76,126
7.00% 04/01/26-05/01/26................................................. 116,164 113,586
7.50% 11/01/22-04/01/24................................................. 43,306 43,468
----------
233,180
----------
Government National Mortgage Assoc.
7.50% 02/15/23-08/15/23................................................. 204,576 205,533
8.00% 03/15/23-12/15/23................................................. 121,204 124,259
8.50% 10/15/17.......................................................... 185,970 197,162
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
40 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
9.00% 08/15/18.......................................................... 77,326 82,633
9.00% TBA............................................................... 21,000 22,555(c)
9.50% 06/15/17.......................................................... 73,753 80,090
----------
712,232
----------
Mid-State Trust
8.33% 04/01/30.......................................................... 108,862 114,714
----------
COLLATERALIZED MORTGAGE OBLIGATIONS
Aetna Commercial Mortgage Trust
6.422% 12/26/30.......................................................... 37,847 37,871
DLJ Mortgage Acceptance Corp.
6.85% 12/17/27.......................................................... 40,000 39,913(b)
7.29% 11/12/21.......................................................... 10,000 10,250(b)
8.72% 06/28/26.......................................................... 20,856 21,188(b)
Federal Home Loan Mortgage Corp.
7.00% 07/01/26.......................................................... 136,650 47,315(f)
1009% 09/15/21.......................................................... 166 5,966(f)
Federal National Mortgage Assoc.
7.12% 09/25/23.......................................................... 27,192 17,335(d,e)
7.41% 03/25/21.......................................................... 18,000 18,473
8.00% 02/01/23.......................................................... 58,188 17,893(f)
8.50% 07/25/22.......................................................... 22,405 6,853(f)
9.41% 09/25/23.......................................................... 35,000 22,137(d,e)
Federal National Mortgage Assoc. REMIC
6.61% 08/25/23.......................................................... 42,680 31,503(d,e)
6.78% 09/25/22.......................................................... 17,133 13,679(d,e)
6.856% 06/17/11.......................................................... 11,000 11,028
7.12% 09/25/23.......................................................... 7,556 4,817(d,e)
7.14% 07/25/20.......................................................... 19,000 15,865(d,e)
10.88% 10/25/23.......................................................... 14,293 10,970(d,e)
LB Commercial Conduit Mortgage Trust
7.141% 08/25/04.......................................................... 63,661 64,556
7.416% 10/25/26.......................................................... 17,955 18,342
Merrill Lynch Mortgage Investor's Inc.
7.113% 05/25/15.......................................................... 22,784 23,097
7.252% 06/15/21.......................................................... 74,315 75,546
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 41
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
Structured Asset Securities Corp.
9.087% 09/25/31.......................................................... 39,435 41,173
----------
555,770
----------
Total Mortgage-Backed
(Cost $1,921,233).................................................... 1,944,392
----------
Total Bonds and Notes
(Cost $5,180,810).................................................... 5,221,816
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
----------
<S> <C>
PREFERRED STOCK-1.0%
Appalachian Power Co. (Series A), 8.25%..................................... 80....... 2,010
Central Hispano Capital, 9.43%.............................................. 400...... 10,600
Entergy Gulf States Inc., $1.75............................................. 500...... 12,539
Equity Residential Properties Trust, 9.125%................................. 250 6,437
Grand Metropolitan Delaware, 9.42%.......................................... 400...... 11,200
National Rural Utilities Cooperative Finance Corp., 8.00%................... 120...... 2,985
Security Capital Industrial Trust, 8.54%.................................... 170...... 8,623
----------
Total Preferred Stock
(Cost $52,704)....................................................... 54,394
----------
Total Investments in Securities
(Cost $5,233,514).................................................... 5,276,210
----------
<CAPTION>
PRINCIPAL
AMOUNT ($)
----------
<S> <C>
SHORT TERM INVESTMENTS-1.9%
U.S. GOVERNMENT AGENCY-1.9%
Federal Home Loan Mortgage Corp.
5.34% 01/30/97
(Cost $99,570)....................................................... 100,000 99,570(d)
Other Assets and Liabilities, net 0.2%...................................... 11,915
----------
NET ASSETS-100%.................................................................. $5,387,695
----------
----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO SCHEDULE OF INVESTMENTS AND FINANCIAL STATEMENTS.
<PAGE>
42 Variable Investment Trust
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
----------- ----------
<S> <C>
ASSETS
Investments in securities, at market (cost $12,818,080 and $5,233,514,
respectively)................................................................... $15,932,223 $5,276,210
Short term investments (at amortized cost)........................................ 2,065,777 99,570
Cash.............................................................................. 11,467 --
Foreign currency (cost $14,164 and $0, respectively).............................. 14,300 --
Receivable for investments sold................................................... 68,070 11,881
Income receivables................................................................ 28,173 70,188
Receivable for fund shares sold................................................... 455 458
Deferred organizational costs..................................................... 9,476 9,476
----------- ----------
Total assets...................................................................... 18,129,941 5,467,783
----------- ----------
LIABILITIES
Payable to custodian.............................................................. -- 17,398
Distributions payable to shareholders............................................. -- 5,531
Payable for investments purchased................................................. 31,067 36,243
Payable for fund shares repurchased............................................... 2,510 4,672
Payable to GEIM................................................................... 33,323 16,244
Variation margin payable.......................................................... 36,500 --
----------- ----------
Total liabilities................................................................. 103,400 80,088
----------- ----------
NET ASSETS........................................................................ $18,026,541 $5,387,695
----------- ----------
----------- ----------
NET ASSETS CONSIST OF:
Capital paid in.............................................................. $14,472,431 $5,364,664
Undistributed (overdistributed) net investment income........................ 267 (3,063)
Accumulated net realized gain (loss)......................................... 448,301 (16,602)
Net unrealized appreciation/(depreciation) on:
Investments................................................................ 3,114,143 42,696
Futures.................................................................... (8,850) --
Foreign currency transactions.............................................. 249 --
----------- ----------
NET ASSETS........................................................................ $18,026,541 $5,387,695
----------- ----------
----------- ----------
Shares outstanding ($.001 par value).............................................. 853,799 455,230
Net asset value, offering and redemption price per share.......................... $ 21.11 $ 11.84
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 43
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
---------- --------
<S> <C>
INVESTMENT INCOME
Income:
Dividends.................................................................... $ 275,363 $ 2,452
Interest..................................................................... 107,174 329,458
Less: Foreign taxes withheld................................................. (2,464) (38 )
---------- --------
Total income...................................................................... 380,073 331,872
---------- --------
EXPENSES:
Advisory and administration fees............................................. 80,400 23,311
Transfer agent............................................................... 8,000 8,000
Trustees' fees............................................................... 7,579 2,727
Custody and accounting....................................................... 1,441 520
Legal........................................................................ 9,474 3,411
Audit........................................................................ 18,949 6,822
Amortization of deferred organization expense................................ 3,159 3,159
---------- --------
Total expenses before waiver...................................................... 129,002 47,950
Less: Expenses waived or borne by the advisor..................................... (12,056) (12,983 )
---------- --------
Net expenses...................................................................... 116,946 34,967
---------- --------
Net investment income............................................................. 263,127 296,905
---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on:
Investments.................................................................. 884,271 (20,980)
Futures...................................................................... 198,575 --
Written options.............................................................. 1,136 199
Foreign currency transactions................................................ (456) --
Increase (decrease) in unrealized appreciation/(depreciation) on:
Investments.................................................................. 1,573,757 (101,681)
Futures...................................................................... (9,425) --
Foreign currency transactions................................................ 249 --
---------- --------
Net realized and unrealized gain (loss) on investments............................ 2,648,107 (122,462)
---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $2,911,234 $174,443
---------- --------
---------- --------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
44 Variable Investment Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GE U.S. EQUITY PORTFOLIO GE FIXED INCOME PORTFOLIO
------------------------------------- -------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995 DECEMBER 31, 1996 DECEMBER 31, 1995
----------------- ----------------- ----------------- -----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income............... $ 263,127 $ 203,448 $ 296,905 $ 295,024
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
transactions..................... 1,083,526 1,196,378 (20,781) 259,037
Net increase (decrease) in
unrealized
appreciation/(depreciation)...... 1,564,581 1,540,961 (101,681) 144,377
----------------- ----------------- ----------------- -----------------
Net increase from operations........ 2,911,234 2,940,787 174,443 698,438
----------------- ----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............... (266,657) (207,780) (296,905) (301,130)
Net realized gains.................. (1,569,398) (260,666) (114,424) (143,981)
----------------- ----------------- ----------------- -----------------
Total distributions................... (1,836,055) (468,446) (411,329) (445,111)
----------------- ----------------- ----------------- -----------------
Increase (decrease) in net assets from
operations and distributions........ 1,075,179 2,472,341 (236,886) 253,327
----------------- ----------------- ----------------- -----------------
SHARE TRANSACTIONS:
Proceeds from sale of shares........ 6,384,529 16,940,648 2,351,196 7,347,507
Value of distributions reinvested... 1,836,055 86,880 405,749 321,567
Cost of shares redeemed............. (340,318) (10,448,773) (403,559) (4,671,206)
----------------- ----------------- ----------------- -----------------
Net increase (decrease) from share
transactions........................ 7,880,266 6,578,755 2,353,386 2,997,868
----------------- ----------------- ----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS.............................. 8,955,445 9,051,096 2,116,500 3,251,195
NET ASSETS
Beginning of year..................... 9,071,096 20,000 3,271,195 20,000
----------------- ----------------- ----------------- -----------------
End of year........................... $18,026,541 $ 9,071,096 $ 5,387,695 $ 3,271,195
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Undistributed (overdistributed) net
investment income, end of year...... $ 267 $ -- $ (3,063) $ (109)
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
CHANGES IN PORTFOLIO SHARES:
Shares sold by subscription........... 313,305 998,802 193,912 599,669
Issued for distributions reinvested... 85,239 4,523 34,209 25,466
Shares redeemed....................... (15,566) (533,837) (33,870) (365,823)
----------------- ----------------- ----------------- -----------------
Net increase (decrease) in Portfolio
shares.............................. 382,978 469,488 194,251 259,312
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 45
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data based on a share outstanding throughout the periods indicated
<TABLE>
<CAPTION>
GE U.S. EQUITY GE FIXED INCOME
PORTFOLIO PORTFOLIO
------------------------ ------------------------
12/31/96 12/31/95 (B) 12/31/96 12/31/95 (B)
-------- ------------ -------- ------------
<S> <C>
Net asset value, beginning of period........................ $ 19.27 $15.00 $12.53 $12.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income..................................... 0.34 0.46 0.76 0.82
Net realized and unrealized gains (losses) on
investments............................................ 3.90 4.87 (0.43) 1.13
-------- ------------ -------- ------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS.............. 4.24 5.33 0.33 1.95
-------- ------------ -------- ------------
LESS DISTRIBUTIONS FROM:
Net investment income..................................... 0.35 0.47 0.76 0.84
Net realized gains........................................ 2.05 0.59 0.26 0.58
-------- ------------ -------- ------------
TOTAL DISTRIBUTIONS......................................... 2.40 1.06 1.02 1.42
-------- ------------ -------- ------------
NET ASSET VALUE, END OF PERIOD.............................. $ 21.11 $19.27 $11.84 $12.53
-------- ------------ -------- ------------
-------- ------------ -------- ------------
TOTAL RETURN (A)............................................ 21.72% 35.58% 2.92% 16.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).................. $ 18,027 $9,071 $5,388 $3,271
Ratio of net investment income to average net assets*..... 1.80% 2.10% 6.37% 6.52%
Ratio of expenses to average net assets*.................. 0.80% 0.80% 0.75% 0.75%
Ratio of expenses to average net assets before voluntary
expense limitation*.................................... 0.88% 1.03% 1.03% 1.15%
Portfolio turnover rate................................... 35% 71% 222% 253%
Average brokerage commissions (c)......................... $ .071 N/A N/A N/A
</TABLE>
- ------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) Total returns are historical and assume changes in share price and
reinvestment of dividends and capital gains. Had the adviser not absorbed a
portion of expenses, total returns would have been lower. Periods less than
one year are not annualized.
(b) Information is for the period January 3, 1995, commencement of investment
operations, through December 31, 1995.
(c) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. Mark-ups, mark-downs and spreads on shares
traded on a principal basis are not included unless they are disclosed on
confirmations prepared in accordance with rule 10b-10 under the 1934 Act.
* Annualized for periods less than one year.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
46 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION OF THE PORTFOLIOS. Variable Investment Trust (the "Trust") is
registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Trust was formed as a
Massachusetts business trust pursuant to a Declaration of Trust (as amended) on
February 25, 1994. The Declaration authorizes the Trust's Trustees to create
separate series, each with an unlimited number of shares of beneficial interest.
The Trust is comprised of five investment portfolios (the "Portfolios") only
four of which are currently being offered through the Power Portfolio Variable
Annuity, as follows: GE U.S. Equity Portfolio, GE International Equity
Portfolio, GE Fixed Income Portfolio and GE Money Market Portfolio.
Shares of the Trust are offered only to insurance company separate accounts
that fund certain variable contracts. These insurance companies may include
insurance companies affiliated with GE Investment Management Incorporated
("GEIM"), the investment adviser and administrator of each Portfolio. As of
December 31, 1996, Great Northern Insured Annuity Corporation, an affiliated
insurance company, controlled the Portfolios by ownership, through separate
accounts, of virtually all of the Portfolios' shares of beneficial interest. The
Trust may in the future offer shares of some or all of the Portfolios to
variable life insurance separate accounts.
The investment objective of GE U.S. Equity Portfolio is long-term growth of
capital, which the Portfolio seeks to achieve through investment primarily in
equity securities of U.S. companies. The investment objective of GE
International Equity Portfolio is long-term growth of capital, which the
Portfolio seeks to achieve by investing primarily in foreign equity securities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The following summarizes the
significant accounting policies of the Trust:
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 may differ from those estimates.
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 last 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
that are written or purchased are valued using the mean between the last asked
and bid prices. 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 fair value.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 47
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Portfolio positions which cannot be valued as set forth above are valued at
fair value 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 income tax purposes.
FOREIGN CURRENCY. Accounting records of the Portfolios are maintained in U.S.
dollars. Investment securities and other assets and liabilities and purchases
and sales of investment securities denominated in a foreign currency are
translated to U.S. dollars at the prevailing exchange rate on the respective
dates of such transactions.
The Portfolios do not isolate the portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in their market prices. Such fluctuations are
included in 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
Portfolios' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities, other than investments in
securities at fiscal year end, as a result of changes in exchange rates.
INCOME TAXES. It is each Portfolio'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 Portfolio 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,
1996, the GE Fixed Income Portfolio had a capital loss carryover of $15,499
which expires December 31, 2004.
Any net capital and currency losses incurred after October 31, within the
Fund's tax year, are deemed to arise on the first day of the Fund's next tax
year if the Fund so elects to defer such losses.
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
after ex-dividend date as such information is available. Interest income is
recorded on the accrual basis. All discounts on taxable bonds are amortized to
call or maturity date, whichever is shorter using the effective yield method.
EXPENSES. Expenses of the Trust which are directly identifiable to a specific
Portfolio are allocated to that Portfolio. Expenses which are not readily
identifiable to a specific Portfolio are allocated in such a manner as
- --------------------------------------------------------------------------------
<PAGE>
48 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
deemed equitable, taking into consideration the nature and type of expense and
the relative sizes of the Portfolios. All expenses of the Portfolios are paid by
the Investment Adviser and reimbursed by the Portfolios up to the voluntary
expense limitations.
DISTRIBUTIONS TO SHAREHOLDERS. GE Fixed Income Portfolio declare investment
income dividends daily and pay monthly. GE U.S. Equity Portfolio declare and pay
dividends of net investment income annually. All Portfolios 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. These differences
include treatment of realized and unrealized gains and losses on forward foreign
currency contracts, paydown gains and losses on mortgage-backed securities,
losses on wash sale transactions, and deferred organization expenses.
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.
DEFERRED ORGANIZATIONAL COSTS. Organizational expenses applicable to the
Portfolios have been deferred and are being amortized on a straight-line basis
over a period of five years from commencement of investment operations.
WHEN-ISSUED SECURITIES. The Portfolios 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 the
Portfolio to subsequently invest at less advantageous yields. In connection with
such purchases, the Portfolio is required to hold liquid assets as collateral
with the Portfolios' custodian sufficient to cover the purchase price, unless
they enter into an offsetting contract for the sale of equal securities and
value.
REPURCHASE AGREEMENTS. The Portfolios' custodian takes possession of the
collateral pledged for investments in repurchase agreements on behalf of the
Portfolios. It is the policy of the Portfolios to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation.
FUTURES AND OPTIONS. The Portfolios, may invest in futures contracts and
purchase and write options. These investments involve, to varying degrees,
elements of market risk and risks in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts reflect the
extent of the involvement the Portfolios have in the particular classes of these
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 an inability of counterparties to perform. The
Portfolios may invest in these instruments for the following reasons: to hedge
against the effects of changes in value of portfolio securities due to
anticipated changes in interest rates and/or market
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 49
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
conditions, to equitize a cash position, for duration management, or when the
transactions are economically appropriate to reduce the risk inherent in the
management of the Portfolio involved.
Upon entering into a futures contract, the Portfolio 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 Portfolio each day. The variation margin payments are
equal to the daily change in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
futures contract is closed. The Portfolio will realize a gain or loss upon the
expiration or closing of an 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.
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. FEES AND COMPENSATION PAID TO AFFILIATES.
ADVISORY AND ADMINISTRATION FEES. Compensation of GEIM, the Portfolio's
Investment Adviser and Administrator, a wholly owned subsidiary of General
Electric Company, for investment advisory and administrative services is paid
monthly based on the average daily net assets of each Portfolio. Such advisory
and administration fees are based on the annual rates listed in the table below.
Until further notice, GEIM has agreed to reduce other operating expenses
(exclusive of advisory and administration fees) for each Portfolio as indicated
in the following table:
<TABLE>
<CAPTION>
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND LIMITATION OF OTHER
ADMINISTRATION FEES OPERATING EXPENSES
------------------- -------------------
<S> <C>
GE U.S Equity Portfolio................................. .55% .25%
GE Fixed Income Portfolio............................... .50% .25%
</TABLE>
TRUSTEES' FEES. The Portfolios pay no compensation to their Trustees who are
employees of GEIM. Trustees who are not GEIM employees receive an annual fee of
$5,000 and an additional fee of $500 for each Trustees' meeting attended.
- --------------------------------------------------------------------------------
<PAGE>
50 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION. Aggregate gross
unrealized appreciation/
(depreciation) of investments for each Portfolio at December 31, 1996, were as
follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C>
GE U.S. Equity Portfolio..................................... $3,179,954 $ 65,811 $3,114,143
GE Fixed Income Portfolio.................................... 64,781 22,085 42,696
</TABLE>
The aggregate cost of each Portfolio's investments was substantially the same
for book and federal income tax purposes at December 31, 1996.
5. OPTIONS. During the period ended December 31, 1996, the following option
contracts were written:
<TABLE>
<CAPTION>
GE FIXED INCOME
GE U.S. EQUITY PORTFOLIO PORTFOLIO
------------------------ ------------------------
NUMBER NUMBER
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
------------ ------- ------------ -------
<S> <C>
Balance as of December 31, 1995................ -- $ -- -- $--
Written........................................ 8 2,638 204 199
Closed and Expired............................. (5) (1,585) (204) (199)
Exercised...................................... (3) (1,053) -- --
--
------- ------------ -------
Balance as of December 31, 1996................ -- $ -- -- $--
--
--
------- ------------ -------
------- ------------ -------
</TABLE>
6. INVESTMENT TRANSACTIONS. The cost of purchases and the proceeds from sales
of investments, other than U.S. Government obligations, short term securities
and options, for the period ended December 31, 1996, were:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C>
GE U.S. Equity Portfolio................................ $9,298,619 $4,396,116
GE Fixed Income Portfolio............................... 2,097,785 1,469,578
</TABLE>
The cost of purchases and the proceeds from sales of long term U.S. Government
obligations for the period ended December 31, 1996, were:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C>
GE U.S. Equity Portfolio............................... $ 143,448 $ 25,763
GE Fixed Income Portfolio.............................. 10,359,335 8,439,574
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 51
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of Variable Investment Trust
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of GE U.S. Equity Portfolio, GE
International Equity Portfolio, GE Fixed Income Portfolio and GE Money Market
Portfolio, each a portfolio of Variable Investment Trust (the "Trust"), at
December 31, 1996, the results of their operations, the changes in their net
assets and the financial highlights for the periods indicated, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1996 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
February 11, 1997
- --------------------------------------------------------------------------------
<PAGE>
52 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
COMMON STOCK-92.1%
AEROSPACE-2.7%
Boeing Co. ................................................................ 279 21,867
General Dynamics Corp. .................................................... 108 6,385
General Motors Corp. (Class H)............................................. 248 12,183
Lockhead Martin Corp. ..................................................... 805 63,595
McDonnell Douglas Corp. ................................................... 524 48,208
Raytheon Co. .............................................................. 431 20,365
Rockwell International Corp. .............................................. 238 12,584
United Technologies Corp. ................................................. 627 59,487
-----------
244,674
-----------
AUTOMOTIVE-1.9%
Eaton Corp. ............................................................... 208 11,154
Ford Motor Co. ............................................................ 1,936 56,144
General Motors Corp. ...................................................... 1,208 63,873
Goodyear Tire & Rubber Co. ................................................ 788 35,755
Stewart & Stevenson Services Inc. ......................................... 230 5,808
-----------
172,734
-----------
BANKS & FINANCIAL SERVICES-9.3%
American Express Co. ...................................................... 1,533 63,428
Bank of New York Inc. ..................................................... 655 31,931
BankAmerica Corp. ......................................................... 311 20,137
Barnett Banks Inc. ........................................................ 63 3,717
BayBanks Inc. ............................................................. 135 13,264
Beneficial Corp. .......................................................... 822 38,326
Block H & R Inc. .......................................................... 49 1,985
Boatmen's Bancshares Inc. ................................................. 519 21,214
Chemical Banking Corp. .................................................... 276 16,215
Citicorp .................................................................. 1,108 74,513
Countrywide Credit Industries.............................................. 476 10,353
Dean Witter Discover & Co. ................................................ 1,002 47,094
Edwards A G Inc. .......................................................... 252 6,017
Federal National Mortgage Assoc. .......................................... 1,164 144,481
First Chicago Corp. ....................................................... 637 25,161
First Interstate Bancorp .................................................. 202 27,573
Mellon Bank Corp. ......................................................... 407 21,876
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 53
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Morgan (J.P.) & Co. Inc. .................................................. 669 53,687
Nationsbank Corp. ......................................................... 205 14,273
Rollins Inc. .............................................................. 78 1,726
Standard Federal Bancorporation............................................ 141 5,552
State Street Boston Corp. ................................................. 320 14,400
Student Loan Marketing Assoc. ............................................. 39 2,569
T. Rowe Price & Associates................................................. 134 6,599
Transamerica Corp. ........................................................ 186 13,555
Travelers Group Inc. ...................................................... 1,809 113,741
United States Bancorp...................................................... 582 19,570
Wells Fargo & Co. ......................................................... 124 26,784
-----------
839,741
-----------
BROADCASTING, ENTERTAINMENT & MEDIA-4.2%
Capital Cities/ABC Inc. ................................................... 347 42,811
Carmike Cinemas Inc. ...................................................... 26 585(a)
Carnival Corp. (Class A)................................................... 156 3,803
Catalina Marketing Corp. .................................................. 58 3,640
Circus Enterprises Inc. ................................................... 239 6,662
Comcast Corp. (Class A).................................................... 1,480 26,917
Disney (Walt) Co. ......................................................... 284 16,756
Donnelley (R.R.) & Sons Co. ............................................... 941 37,052
Dun & Bradstreet Corp. .................................................... 523 33,864
Gannett Inc. .............................................................. 821 50,389
Interpublic Group Cos. Inc. ............................................... 473 20,516
Knight Ridder Inc. ........................................................ 67 4,188
Readers Digest Assoc. Inc. (Class A)....................................... 35 1,794
Reuters Holdings PLC ADR (Class B)......................................... 922 50,825
Tele-Communications Inc. .................................................. 791 21,258(a)
Tele-Communications Inc. (Class A)......................................... 1,076 21,385(a)
Time Warner Inc. .......................................................... 623 23,596
Viacom Inc. (Class B)...................................................... 307 14,544(a)
-----------
380,585
-----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
54 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
BUILDING MATERIALS & CONSTRUCTION-0.3%
Masco Corp. ............................................................... 161 5,051
Newmont Mining Corp. ...................................................... 413 18,688
Sherwin Williams Co. ...................................................... 149 6,072
-----------
29,811
-----------
CHEMICAL-2.8%
Air Products & Chemicals Inc. ............................................. 676 35,659
Airgas Inc. ............................................................... 137 4,555(a)
Du Pont de Nemours (E.L.).................................................. 1,558 108,865
Eastman Chemical Co. ...................................................... 246 15,406
FMC Corp. ................................................................. 99 6,695(a)
Grace (WR) & Co. .......................................................... 151 8,928
IMC Global Inc. ........................................................... 338 13,816
Lubrizol Corp. ............................................................ 468 13,045
Morton International Inc. ................................................. 947 33,974
Olin Corp. ................................................................ 82 6,088
Witco Corp. ............................................................... 400 11,700
-----------
258,731
-----------
CONSUMER RELATED-11.1%
American Stores Co. ....................................................... 893 23,888
Anheuser Busch Cos. Inc. .................................................. 1,055 70,553
Archer-Daniels Midland Co. ................................................ 910 16,380
Armstrong World Industries Inc. ........................................... 336 20,832
Coca Cola Co. ............................................................. 41 3,044
Colgate Palmolive Co. ..................................................... 742 52,125
Conagra Inc. .............................................................. 477 19,676
CPC International Inc. .................................................... 423 29,028
Dole Food Inc. ............................................................ 272 9,520
Duracell International Inc. ............................................... 61 3,157
Eastman Kodak Co. ......................................................... 1,324 88,708
General Mills Inc. ........................................................ 321 18,538
Kellogg Co. ............................................................... 206 15,913
Marriot International Inc. ................................................ 68 2,601
McDonalds Corp. ........................................................... 1,246 56,226
Nestle S.A. ............................................................... 28 30,974
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 55
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Penney J C Inc. ........................................................... 201 9,573
Pepsico Inc. .............................................................. 2,951 164,887
Philip Morris Cos. Inc. ................................................... 1,564 141,542
Procter & Gamble Co. ...................................................... 991 82,253
Ralston Purina Co. ........................................................ 156 9,730
Rubbermaid Inc. ........................................................... 132 3,366
Sara Lee Corp. ............................................................ 268 8,543
Scholastic Corp. .......................................................... 31 2,410(a)
Stanhome Inc. ............................................................. 172 5,010
Tambrands Inc. ............................................................ 113 5,396
Timken Co. ................................................................ 333 12,737
Tyson Foods Inc. (Class A)................................................. 161 4,206
Wal Mart Stores Inc. ...................................................... 4,127 92,342
-----------
1,003,158
-----------
DIVERSIFIED MANUFACTURING-5.0%
Allied Signal Inc. ........................................................ 2,385 113,287
Canadian Pacific Ltd. ..................................................... 998 18,089
Dover Corp. ............................................................... 1,195 44,066
Hanson PLC ADR............................................................. 1,301 19,840
ITT Corp. (new)............................................................ 245 12,985
ITT Industries Inc. ....................................................... 245 5,880
Loews Corp. ............................................................... 755 59,173
Minnesota Mining & Manufacturing........................................... 1,387 91,889
Tenneco Inc. .............................................................. 520 25,805
Textron Inc. .............................................................. 809 54,607
Trinova Corp. ............................................................. 160 4,580
-----------
450,201
-----------
DRUGS, HEALTHCARE & COSMETICS-10.5%
Abbott Laboratories........................................................ 2,054 85,754
Allergan Inc. ............................................................. 1,146 37,245
American Home Products Corp. .............................................. 785 76,145
American Medical Response.................................................. 136 4,420(a)
Arbor Drugs Inc. .......................................................... 245 5,145
Arrow International Inc. .................................................. 318 12,641
Avon Products Inc. ........................................................ 260 19,598
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
56 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Baxter International Inc. ................................................. 755 31,616
Bristol-Myers Squibb Co. .................................................. 1,249 107,258
Cardinal Health Inc. ...................................................... 93 5,092
Dentsply International Inc. ............................................... 94 3,760
Eli Lilly & Co. ........................................................... 1,096 61,650
FHP International Corp. ................................................... 693 19,750(a)
Gillette Co. .............................................................. 90 4,691
International Flavours..................................................... 89 4,272
Johnson & Johnson.......................................................... 1,217 104,206
Lincare Holdings Inc. ..................................................... 75 1,875(a)
Living Centers of America Inc. ............................................ 97 3,395(a)
Merck & Co. Inc. .......................................................... 1,932 127,029
Pfizer Inc. ............................................................... 1,391 87,633
Pharmacia & Upjohn Inc. ................................................... 832 32,240
Schering-Plough Corp....................................................... 774 42,376
Smithkline Beecham PLC ADR................................................. 1,333 73,981
Warner Lambert Co. ........................................................ 46 4,468
-----------
956,240
-----------
ELECTRICAL & ELECTRONICS-7.7%
ADT Ltd. .................................................................. 640 9,600(a)
Airtouch Communications.................................................... 1,647 46,528(a)
AMP Inc. .................................................................. 1,309 50,233
Applied Materials Inc. .................................................... 677 26,657(a)
BBC Brown Boveri........................................................... 31 36,012
EG & G Inc. ............................................................... 660 16,005
Emerson Electric Co. ...................................................... 1,225 100,144
General Instrument Corp. .................................................. 82 1,917(a)
General Signal Corp. ...................................................... 619 20,040
Hewlett Packard Co. ....................................................... 1,269 106,279
Hubbell Inc. (Class B)..................................................... 1,096 72,062
Intel Corp. ............................................................... 1,146 65,035
Molex Inc. (Class A)....................................................... 197 6,033
Motorola Inc. ............................................................. 676 38,532
Northern Telecom Ltd. ..................................................... 274 11,782
Perkin Elmer Corp. ........................................................ 335 12,646
Philips Electronics N.V. .................................................. 840 30,135
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 57
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Sensormatic Electronics Corp. ............................................. 85 1,477
Ucar International Inc. ................................................... 178 6,007(a)
Varian Associates Inc. .................................................... 764 36,481
VLSI Technology Inc. ...................................................... 47 852(a)
-----------
694,457
-----------
ELECTRIC UTILITIES-2.5%
CMS Energy Corp. .......................................................... 314 9,381
Dominion Resources Inc. ................................................... 511 21,079
Illinova Corp. ............................................................ 271 8,130
NIPSCO Industries Inc. .................................................... 393 15,032
Pacificorp................................................................. 1,200 25,500
Pinnacle West Capital Corp. ............................................... 654 18,802
Portland General Corp. .................................................... 268 7,806(a)
Public Serivce Co. Colorado ............................................... 311 11,002
Public Services Co. New Mexico ............................................ 734 12,937(a)
Southern Co. .............................................................. 1,844 45,408
Unicom Corp. .............................................................. 1,610 52,727
-----------
227,804
-----------
ENERGY & ENERGY RELATED-9.8%
Amerada Hess Corp. ........................................................ 93 4,929
Amoco Corp. ............................................................... 1,196 85,962
Anadarko Petroleum Co. .................................................... 401 21,704
Atlantic Richfield Co. .................................................... 217 24,033
Baker Hughes Inc. ......................................................... 788 19,207
Burlington Resources Inc. ................................................. 986 38,700
Chevron Corp. ............................................................. 333 17,483
Dresser Industries Inc. ................................................... 319 7,776
Eastern Enterprises........................................................ 335 11,809
Elf Aquitaine ADR ......................................................... 167 6,137
Exxon Corp. ............................................................... 1,953 156,484
FPL Group Inc. ............................................................ 706 32,741
Mobil Corp. ............................................................... 627 70,224
Nabors Industries Inc. .................................................... 707 7,865(a)
Occidental Petroleum Corp. ................................................ 412 8,807
Phillips Petroleum Co. .................................................... 194 6,620
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
58 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Royal Dutch Petroleum Co. ................................................. 1,151 162,435
Santa Fe Energy Resources Inc. ............................................ 356 3,427(a)
Schlumberger Ltd. ......................................................... 1,247 86,355
Texaco Inc. ............................................................... 1,034 81,169
Unocal Corp. .............................................................. 1,017 29,620
USX Marathon Group......................................................... 488 9,516
-----------
893,003
-----------
FOREST PRODUCTS, PAPER & PACKAGING-1.7%
Avery Dennison Corp. ...................................................... 132 6,617
International Paper Capital Trust.......................................... 113 5,113(b)
International Paper Co. ................................................... 284 10,757
Kimberly Clark Corp. ...................................................... 544 45,016
Mead Corp. ................................................................ 642 33,544
Owens Illinois Inc. ....................................................... 648 9,396(a)
Weyerhaeuser Co. .......................................................... 1,023 44,245
-----------
154,688
-----------
INDUSTRIAL PRODUCTS & SERVICES-0.9%
Browning-Ferris Industries Inc. ........................................... 459 13,540
Corning Inc. .............................................................. 164 5,248
Ecolab Inc. ............................................................... 96 2,880
Flightsafety International Inc. ........................................... 63 3,166
Waste Management International PLC ADR .................................... 187 2,010(a)
Wheelabrator Technologies Inc. ............................................ 346 5,796(a)
WMX Technologies Inc. ..................................................... 1,618 48,338
-----------
80,978
-----------
INSURANCE-4.7%
Amercian International Group Inc. ......................................... 1,113 102,952
Chubb Corp. ............................................................... 110 10,643
CMAC Investment Corp. ..................................................... 147 6,468
CNA Financial Corp. ....................................................... 53 6,016
General Reinsurance Corp. ................................................. 312 48,360
ITT Hartford Group Inc. ................................................... 245 11,852
Jefferson Pilot Corp. ..................................................... 24 1,755
Lincoln National Corp. .................................................... 752 40,420
Marsh & McLennan Cos. ..................................................... 393 34,879
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 59
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
Providian Corp. ........................................................... 940 38,305
Reliastar Financial Corp. ................................................. 254 11,271
St. Paul Cos. Inc. ........................................................ 957 53,233
TIG Holdings Inc. ......................................................... 1,691 48,193
UNUM Corp. ................................................................ 234 12,870
-----------
427,217
-----------
MACHINERY & MACHINE TOOLS-1.1%
Caterpillar Inc. .......................................................... 250 14,688
Cooper Industries Inc. .................................................... 318 11,687
Deere & Co. ............................................................... 1,356 47,799
Ingersoll Rand Co. ........................................................ 530 18,616
Tecumseh Products Co. (Class A)............................................ 91 4,709
-----------
97,499
-----------
MERCHANDISING-2.6%
Albertsons Inc. ........................................................... 79 2,597
American Greetings Corp. (Class A)......................................... 392 10,829
Charming Shoppes Inc. ..................................................... 1,066 3,065
Circuit City Stores Inc. .................................................. 460 12,708
CUC International Inc. .................................................... 31 1,058(a)
Dayton Hudson Corp. ....................................................... 238 17,850
Federated Department Stores Inc. .......................................... 1,132 31,130(a)
Home Depot Inc. ........................................................... 689 32,986
Limited Inc. .............................................................. 200 3,475
May Department Stores Co. ................................................. 164 6,929
Melville Corp. ............................................................ 111 3,413
Price Costco Inc. ......................................................... 830 12,658
Sears Roebuck & Co. ....................................................... 1,733 67,587
Sysco Corp. ............................................................... 274 8,905
TJX Cos. Inc. ............................................................. 38 717
Toys 'R Us................................................................. 734 15,964(a)
-----------
231,871
-----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
60 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
METALS-0.5%
Barrick Gold Corp. ........................................................ 476 12,555
Freeport McMoran Copper & Gold (Class A) .................................. 588 16,464
Inco Ltd. ................................................................. 173 5,752
Nucor Corp. ............................................................... 130 7,426
Reynolds Metals Co. ....................................................... 61 3,454
-----------
45,651
-----------
NATURAL GAS-0.4%
Enserch Corp. ............................................................. 653 10,611
Petroleum Geo Services ADR................................................. 42 1,050(a)
Sonat Inc. ................................................................ 522 18,596
Tosco Corp. ............................................................... 150 5,719
-----------
35,976
-----------
OFFICE EQUIPMENT & SUPPLIES-4.1%
Amdahl Corp. .............................................................. 319 2,712
Apple Computer............................................................. 162 5,164
Automatic Data Processing Inc. ............................................ 578 42,916
Cisco Systems Inc. ........................................................ 173 12,910(a)
Compaq Computer Corp. ..................................................... 287 13,776(a)
Computer Associates International Inc. .................................... 549 31,224
Equifax Inc. .............................................................. 2,404 51,385
First Data Corp. .......................................................... 816 54,570
International Business Machines............................................ 1,552 142,396
Microsoft Corp. ........................................................... 78 6,845(a)
Pitney Bowes Inc. ......................................................... 186 8,742
-----------
372,640
-----------
REAL ESTATE-0.2%
Camden Property Trust...................................................... 161 3,844
Castle and Cooke Inc. (new)................................................ 91 1,519
Debartolo Realty Corp. .................................................... 459 5,967
Glimcher Realty Trust...................................................... 228 3,933
Oasis Residential Inc. .................................................... 138 3,139
-----------
18,402
-----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE U.S. Equity Portfolio 61
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE ($)
---------- -----------
<S> <C>
TELEPHONE & UTILITIES-6.2%
American Telephone & Telegraph............................................. 3,077 199,236
Bellsouth Corp. ........................................................... 1,185 51,547
Cellular Communications Inc. .............................................. 228 11,343
Frontier Corp. ............................................................ 172 5,160
GTE Corp. ................................................................. 2,633 115,852
International Cabletel Inc. ............................................... 982 24,059(a)
MCI Communications Corp. .................................................. 1,190 31,089
NYNEX Corp. ............................................................... 704 38,016
Pacific Telesis Group...................................................... 578 19,435
SBC Communications Inc. ................................................... 703 40,422
Sprint Corp. .............................................................. 182 7,257
U.S. West Inc. ............................................................ 510 18,233
-----------
561,649
-----------
TRANSPORTATION-1.9%
AMR Corp. ................................................................. 445 33,041(a)
Burlington Northern Santa Fe .............................................. 520 40,560
CSX Corp. ................................................................. 486 22,174
Delta Air Lines ........................................................... 116 8,570
Pittston Services Group.................................................... 94 2,949
Union Pacific Corp. ....................................................... 1,026 67,716
-----------
175,010
-----------
Total Common Stock (Cost $6,817,858)....................................... 8,352,720
-----------
<CAPTION>
PRINCIPAL
AMOUNT ($)
<S> <C>
----------
BONDS AND NOTES-0.2%
Banco Nacional de Mexico S.A.
7.00% 12/15/99............................................................. 11,000 8,855(b)
Cemex
4.25% 11/01/97............................................................. 8,000 6,760(b)
Exide Corp.
2.90% 12/15/05............................................................. 8,000 6,230(b)
Valhi Inc,
9.25% 10/20/97............................................................. 6,000 2,333(d)
-----------
Total Bonds and Notes (Cost $23,825)............................................ 24,178
-----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
62 Variable Investment Trust-GE U.S. Equity Portfolio
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- -----------
<S> <C>
CONVERTIBLE BOND-0.3%
ADT Operations Inc.
6.50% 07/06/10............................................................. 4,000 1,870(d)
AMR Corp.
6.125% 11/01/24............................................................ 21,000 21,735
Federated Department Stores Inc.
5.00% 10/01/03............................................................. 3,000 2,992
-----------
Total Convertible Bonds (Cost $26,086)........................................ 26,597
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
<S> <C>
----------
CONVERTIBLE PREFERRED STOCK-0.6%
Citicorp, 10.75%........................................................... 28 5,141
Ford Motor Co. (Series A), 8.40%........................................... 167 15,823
Occidental Petroleum Corp., 7.75%.......................................... 315 17,325(b)
Reynolds Metals Co., 7.00% ................................................ 89 4,506
Santa Fe Energy Resources Inc. (Series A), 7.00%........................... 167 3,194
St. Paul Capital LLC, 6.00%................................................ 22 1,238
Unocal Corp., 7.00%........................................................ 107 5,858(b)
-----------
Total Convertible Preferred Stock (Cost $48,425)........................... 53,085
-----------
Total Investments in Securities (Cost $6,916,194).......................... 8,456,580
-----------
<CAPTION>
PRINCIPAL
AMOUNT ($)
<S> <C>
----------
SHORT TERM INVESTMENTS-1.1%
U.S. GOVERNMENT AGENCIES
Federal Home Loan Mortgage Corp. 5.60% 01/03/96
(Cost $99,969)........................................................... 100,000 99,969(d)
Other Assets and Liabilites, net 5.7%........................................... 514,547
-----------
NET ASSETS-100%................................................................. $ 9,071,096
-----------
-----------
</TABLE>
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Portfolio had the following long Futures Contract open at
December 31, 1995:
<TABLE>
<CAPTION>
EXPIRATION NUMBER UNDERLYING UNREALIZED
DESCRIPTION DATE OF CONTRACTS FACE VALUE GAIN
- ------------ ----------- ------------- ----------- -----------
<S> <C>
S&P 500 March 1996 1 $309,225 $575
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 63
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
<S> <C>
BONDS AND NOTES-94.9%
U.S. TREASURIES-18.9%
U.S. Treasury Bonds
7.625% 02/15/25........................................................ 300,000 366,843
12.00% 08/15/13........................................................ 35,000 53,927
----------
420,770
----------
U.S. Treasury Notes
6.00% 08/31/97......................................................... 12,000 12,148
6.125% 05/31/97......................................................... 10,000 10,122
6.25% 08/31/00......................................................... 70,000 72,417
6.50% 04/30/99......................................................... 100,000 103,656
----------
198,343
----------
Total U.S. Treasuries (Cost $557,488)..................................... 619,113
----------
ASSET BACKED-3.9%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25......................................................... 7,944 7,817
Conti Mortgage Home Equity
7.63% 05/15/09......................................................... 9,203 9,309
Discover Card Master Trust
6.70% 02/16/00......................................................... 10,000 10,184
Fleetwood Credit Grantor Trust
6.55% 05/16/11......................................................... 9,383 9,529
Household Finance Corp.
8.15% 03/19/96......................................................... 9,127 9,164(e)
Premier Auto Trust
5.95% 12/06/98......................................................... 10,000 10,053
Standard Credit Card Master Trust
6.55% 10/07/07......................................................... 10,000 10,2906
6.75% 06/07/00......................................................... 60,000 61,631
----------
Total Asset Backed (Cost $125,934)........................................ 127,977
----------
CORPORATE NOTES-30.6%
American Home Products
7.70% 02/15/00......................................................... 50,000 53,499
Capital One Bank
6.43% 06/29/98......................................................... 50,000 50,648
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
64 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
Carter Holt Harvey Ltd.
<S> <C>
8.875% 12/01/04......................................................... 50,000 58,026
Foster Technology Inc.
6.75% 11/15/05......................................................... 40,000 41,232
General Motors Corp.
8.89% 08/18/03......................................................... 25,000 28,813
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98........................................................ 50,000 52,713
HSBC Finance Nederland B.V.
7.40% 04/15/03......................................................... 50,000 52,425(b)
Hydro Quebec
8.05% 07/0724.......................................................... 50,000 57,088
Joy Technologies Inc.
10.25% 09/01/03........................................................ 50,000 56,625
KFW International Finance Inc.
8.20% 06/01/06......................................................... 50,000 58,359
Landeskreditbank Baden
7.875% 04/15/04........................................................ 25,000 28,048
Merrill Lynch & Co. Inc.
6.64% 09/19/02......................................................... 60,000 61,622
News America Holdings Inc.
10.125% 10/15/12....................................................... 50,000 60,509
North Atlantic Energy Corp.
9.05% 06/01/02......................................................... 50,000 51,688
Paramount Communications Inc.
5.875% 07/15/00........................................................ 50,000 49,334
RJR Nabisco Inc.
8.00% 07/15/01......................................................... 50,000 50,956
Smurfit Capital
7.50% 11/20/25......................................................... 25,000 26,078
Tele-Communications Inc.
7.13% 02/02/98......................................................... 50,000 51,118
Time Warner Entertainment Co. L.P.
10.15% 05/01/12........................................................ 50,000 61,975
United Co. Financial Corp.
7.00% 07/15/98......................................................... 50,000 51,016
----------
Total Corporate Notes
(Cost $955,692)......................................................... 1,001,772
----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust-GE Fixed Income Portfolio 65
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT ($) VALUE ($)
---------- ----------
MORTGAGE-BACKED-41.5%
<S> <C>
Federal Home Loan Mortgage Corp.
6.50% 07/01/09-11/01/10................................................... 115,483 116,096
7.00% TBA................................................................. 80,000 80,700(c)
7.50% 10/01/25............................................................ 341,761 350,411
----------
547,207
----------
Federal National Mortgage Assoc.
8.00% 11/01/25............................................................ 120,465 124,756
8.50% 10/01/24............................................................ 147,972 154,446
----------
279,202
----------
Government National Mortgage Assoc.
8.00% 04/15/17............................................................ 141,790 149,033
9.00% 06/15/16-08/15/18................................................... 121,872 129,998
9.50% 06/15/17............................................................ 99,122 107,103
----------
386,134
----------
COLLATERLAIZED MORTGAGE OBLIGATIONS
American Southwest Financial Securities Corp.
1.078% 01/18/09........................................................... 196,179 10,820(g)
Asset Securitization Corp.
7.10% 08/13/29............................................................ 17,963 18,819
Federal Home Loan Mortgage Corp.
3.50% 11/15/07............................................................ 37,000 31,022
Federal National Mortgage Assoc.
8.00% 07/01/24............................................................ 43,634 9,818(g)
8.921% 10/01/24........................................................... 43,494 36,426(d,f)
LB Commercial Conduit Mortgage Trust
7.144% 08/25/04........................................................... 14,966 15,415
Merrill Lynch Mortgage Investor's Inc.
7.523% 06/15/21........................................................... 19,873 20,406
----------
142,726
----------
Total Mortgage-Backed
(Cost $1,320,864)......................................................... 1,355,269
----------
Total Bonds and Notes
(Cost $2,959,928)......................................................... 3,104,131
----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
66 Variable Investment Trust-GE Fixed Income Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXPIRATION DATE/ NUMBER
STRIKE PRICE OF CONTRACTS VALUE ($)
----------------- ------------- -----------
<S> <C>
CALL OPTIONS PURCHASED-0.0%
U.S. Treasury Note (Cost $117)........................... Jan. 96/103.25 9 291
-----------
Total Investments in Securities
(Cost $2,960,045)..................................... 3,104,422
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT($)
----------
<S> <C>
SHORT TERM INVESTMENTS-3.1%
U.S GOVERNMENT AGENCIES
Federal Home Loan Mortgage Corp.
5.60% 01/03/96
(Cost $99,969)............................................................. 100,000 99,969(d)
Other Assets and Liabilities, net 2.0%........................................ 66,804
----------
NET ASSETS-100%................................................................. $3,271,195
----------
----------
</TABLE>
- --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 67
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS
(a) Non-income producing security.
(b) Pursuant to Rule 144A of the 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
$50,141 and $52,425 or 0.6% and 1.6% of net assets for the GE U.S. Equity
and GE Fixed Income Portfolios, 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.
ABBREVIATIONS:
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
<PAGE>
68 Variable Investment Trust
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
---------- ----------------
<S> <C>
ASSETS
Investments in securities, at market (cost $6,916,194 and $2,960,045
respectively)..................................................... $8,456,580 $3,104,422
Short term investments (at amortized cost).......................... 99,969 99,969
Cash................................................................ 450,131 108,520
Foreign currency (cost $35 and $0, respectively).................... 35 0
Receivable for investments sold..................................... 8,710 70,379
Income receivables.................................................. 20,193 43,468
Receivable for fund shares sold..................................... 50,296 14,081
Deferred organizational costs....................................... 24,036 24,036
Variation margin receivable......................................... 350 0
---------- ----------------
Total assets........................................................ 9,110,300 3,464,875
---------- ----------------
LIABILITIES
Distributions payable to shareholders............................... 0 16,140
Payable for investments purchased................................... 7,926 150,313
Payable for fund shares repurchased................................. 61 34
Payable to GEIM..................................................... 31,217 26,693
Payable to custodian................................................ 0 0
---------- ----------------
Total Liabilities................................................... 39,204 193,680
---------- ----------------
NET ASSETS.......................................................... $9,071,096 $3,271,195
---------- ----------------
---------- ----------------
NET ASSETS CONSIST OF:
Capital paid in................................................ $6,592,639 $3,010,500
Undistributed/(overdistributed) net investment income.......... 0 (109)
Accumulated net realized gain.................................. 937,496 116,427
Net unrealized appreciation/ (depreciation) on:
Investments.................................................. 1,540,386 144,377
Futures...................................................... 575 0
Foreign currency transactions................................ 0 0
---------- ----------------
NET ASSETS.......................................................... $9,071,096 $3,271,195
---------- ----------------
---------- ----------------
Shares outstanding ($.001 par value)................................ 470,821 260,979
Net asset value, offering and redemption price per share............ $ 19.27 $ 12.53
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 69
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD JANUARY 3 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1995
<TABLE>
<CAPTION>
GE
GE U.S. FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
---------- --------
<S> <C>
INVESTMENT INCOME
Income:
Dividends.................................................................... $ 217,452 $ 0
Interest..................................................................... 65,099 328,948
Less: Foreign taxes withheld................................................. (1,777) 0
---------- --------
Total income...................................................................... 280,774 328,948
---------- --------
EXPENSES:
Advisory and administration fees 53,162 22,614
Transfer agent............................................................... 7,000 7,000
Trustees' fees............................................................... 6,796 3,336
Custody and accounting....................................................... 1,291 634
Legal........................................................................ 8,495 4,171
Audit........................................................................ 16,991 8,341
Amortization of deferred organizational expense.............................. 5,997 5,997
---------- --------
Total expenses before waiver...................................................... 99,732 52,093
Less: Expenses waived or borne by the advisor..................................... (22,406) (18,169)
---------- --------
Net expenses...................................................................... 77,326 33,924
---------- --------
Net investment income............................................................. 203,448 295,024
---------- --------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gain (loss) on:
Investments.................................................................. 1,060,686 259,037
Futures...................................................................... 136,776 0
Written options.............................................................. 701 0
Foreign currency transactions................................................ (1,784) 0
Increase (decrease) in unrealized appreciation/depreciation on:
Investments.................................................................. 1,540,386 144,377
Futures...................................................................... 575 0
Foreign currency transactions................................................ 0 0
---------- --------
Net realized and unrealized gain on investments................................... 2,737,339 403,414
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $2,940,787 $698,438
---------- --------
---------- --------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
70 Variable Investment Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD JANUARY 3 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 1995
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
------------ -----------
<S> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income...................................................... $ 203,448 $ 295,024
Net realized gain on investments, futures, written options, and foreign
currency transactions................................................... 1,196,378 259,037
Net increase in unrealized appreciation.................................... 1,540,961 144,377
------------ -----------
Net increase from operations............................................... 2,940,787 698,438
------------ -----------
Distributions to shareholders from:
Net investment income...................................................... (207,780) (301,130)
Net realized gains......................................................... (260,666) (143,981)
------------ -----------
Total distributions.......................................................... (468,446) (445,111)
------------ -----------
Increase (decrease) in net assets from operations and distributions.......... 2,472,341 253,327
------------ -----------
Share transactions:
Proceeds from sale of shares............................................... 16,940,648 7,347,507
Value of distributions reinvested.......................................... 86,880 321,567
Cost of shares redeemed.................................................... (10,448,773) (4,671,206)
------------ -----------
Net increase from share transactions......................................... 6,578,755 2,997,868
------------ -----------
Total increase in net assets................................................. 9,051,096 3,251,195
NET ASSETS
Beginning of period.......................................................... 20,000 20,000
------------ -----------
End of period................................................................ $ 9,071,096 $ 3,271,195
------------ -----------
------------ -----------
Undistributed/(overdistributed) net investment income, end of period......... $ 0 $ (109)
------------ -----------
------------ -----------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Variable Investment Trust 71
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1995 1995
------------ ------------
<S> <C>
CHANGES IN PORTFOLIO SHARES:
Shares sold by subscription............................................... 998,802 599,669
Issued for distributions reinvested....................................... 4,523 25,466
Shares redeemed........................................................... (533,837) (365,823)
------------ ------------
Net increase in Portfolio shares.......................................... 469,488 259,312
------------ ------------
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
72 Variable Investment Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data based on a share outstanding for the period January 3
(commencement of operations) through December 31, 1995
<TABLE>
<CAPTION>
GE U.S. GE FIXED
EQUITY INCOME
PORTFOLIO PORTFOLIO
--------- --------
<S> <C>
Net asset value, beginning of period................................................ $ 15.00 $12.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............................................................. 0.46 0.82
Net realized and unrealized gains on investments.................................. 4.87 1.13
--------- --------
TOTAL INCOME FROM INVESTMENT OPERATIONS............................................. 5.33 1.95
--------- --------
LESS DISTRIBUTIONS FROM:
Net investment income............................................................. 0.47 0.84
Net realized gains................................................................ 0.59 0.58
--------- --------
TOTAL DISTRIBUTIONS................................................................. 1.06 1.42
--------- --------
NET ASSET VALUE, END OF PERIOD...................................................... $ 19.27 $12.53
--------- --------
--------- --------
TOTAL RETURN (A).................................................................... 35.58% 16.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).......................................... $ 9,071 $3,271
Ratio of net investment income to average net assets*............................. 2.10% 6.52%
Ratio of expenses to average net assets*.......................................... 0.80% 0.75%
Ratio of expenses to average net assets before voluntary expense limitation*...... 1.03% 1.15%
Portfolio turnover rate........................................................... 71% 253%
</TABLE>
- ------------
NOTES TO FINANCIAL HIGHLIGHTS
(a) Total returns are historical and assume changes in share price and
reinvestment of dividends and capital gains. Had the advisor not absorbed
a portion of expenses, total return would have been lower. Periods less
than one year are not annualized.
* Annualized for periods less than one year.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 73
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, DECEMBER 31, 1995
1. ORGANIZATION OF THE PORTFOLIOS. Variable Investment Trust (the "Trust") is
registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The Trust was formed as a
Massachusetts business trust pursuant to a Declaration of Trust (as amended) on
February 25, 1994. The Declaration authorizes the Trust's Trustees to create
separate series, each with an unlimited number of shares of beneficial interest.
The Trust is comprised of five investment portfolios (the "Portfolios"), only
four of which are currently being offered through the Power Portfolio Variable
Annuity, as follows: GE U.S. Equity Portfolio, GE International Equity
Portfolio, GE Fixed Income Portfolio and GE Money Market Portfolio.
Shares of the Trust are offered only to insurance company separate accounts
that fund certain variable contracts. These insurance companies may include
insurance companies affiliated with GE Investment Management Incorporated
("GEIM"), the investment advisor and administrator of each Portfolio. As of
December 31, 1995, Great Northern Insured Annuity Corporation, an affiliated
insurance company, controlled the Portfolios by ownership of virtually all of
the Portfolios' shares of beneficial interest. The Trust may in the future offer
shares of some or all of the Portfolios to variable life insurance separate
accounts.
The investment objective of GE U.S. Equity Portfolio is long-term growth of
capital, which the Portfolio seeks to achieve through investment primarily in
equity securities of U.S. companies. The investment objective of GE Fixed Income
Portfolio is to seek maximum income consistent with prudent investment
management and the preservation of capital, which the Portfolio seeks to achieve
by investing in fixed income securities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The following summarizes the
significant accounting policies of the Trust:
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.
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 current 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. Written
options traded on an exchange are valued using the last sale price or, in the
absence of a sale, the last offering price, and options traded over-the-counter
are valued using dealer-supplied valuations.
Short term investments maturing within 60 days are valued at amortized cost or
original cost plus accrued interest, each of which approximates market value.
- --------------------------------------------------------------------------------
<PAGE>
74 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
To secure prices or yields deemed advantageous at a particular time, the
Portfolios 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 the Portfolios to
subsequently invest at less advantageous yields. In connection with such
purchases, the Portfolios are required to hold collateral (cash, Government
securities or other liquid, high grade debt obligations) with the Portfolios'
custodian sufficient to cover the purchase price, unless they enter into an
offsetting contract for the sale of equal securities and value.
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 income tax purposes.
FOREIGN CURRENCY. Accounting records of the Portfolios 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 Portfolios 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
and the difference between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Portfolios' books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end, as a result
of changes in the exchange rate.
INCOME TAXES. It is each Portfolio'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 Portfolio is treated as
a separate taxpayer for federal income tax purposes.
INVESTMENT INCOME. Corporate actions (including cash dividends) are recorded
not of nonreclaimable tax withholdings on the ex-dividend date, except for
certain foreign securities for which corporate actions are recorded as soon as
the Portfolios are informed. Interest income is recorded on the accrual basis.
All discounts on taxable bonds are amortized to call or maturity date, whichever
is shorter using the effective yield method.
EXPENSES. Expenses of the Trust which are directly identifiable to a specific
Portfolio are allocated to that Portfolio. Expenses which are not readily
identifiable to a specific Portfolio are allocated in such a manner as
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 75
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
deemed equitable, taking into consideration the nature and type of expense and
the relative sizes of the Portfolios. All expenses of the Portfolios are paid by
the Investment Advisor and reimbursed by the Portfolios up to the voluntary
expense limitations.
DISTRIBUTIONS TO SHAREHOLDERS. GE Fixed Income Portfolio declares investment
income dividends daily (paid monthly). GE U.S. Equity Portfolio declares and
pays dividends of net investment income annually. All Portfolios 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. These
differences include treatment of realized and unrealized gains and losses on
foreign currency transactions, paydown gains and losses on mortgage-backed
securities, losses on wash sale transactions and deferred organizational
expenses. 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.
DEFERRED ORGANIZATIONAL COSTS. Organizational expenses applicable to the
Portfolios have been deferred and are being amortized on a straight-line basis
over a period of five years from commencement of investment operations.
REPURCHASE AGREEMENTS. The Portfolios' custodian takes possession of the
collateral pledged for investments in repurchase agreements on behalf of the
Portfolios. It is the policy of the Portfolios to value the underlying
collateral daily on a mark-to-market basis to determine that the value,
including accrued interest, is at least equal to the repurchase price. In the
event of default of the obligation to repurchase, the Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation.
FUTURES AND OPTIONS. Each Portfolio may invest in futures contracts and
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 Portfolios 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
Portfolios 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 Portfolios involved.
Upon entering into a futures contract, the Portfolios are 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 Portfolios 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 Portfolios recognize a realized gain or loss when the
futures contract is closed. The Portfolios will realize a gain or loss upon the
expiration or
- --------------------------------------------------------------------------------
<PAGE>
76 Variable Investment Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
closing of an 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 cost of the security for a purchased put or call option is adjusted by the
amount of premium received or paid.
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. FEES AND COMPENSATION PAID TO AFFILIATES.
ADVISORY AND ADMINISTRATION FEES. Compensation to GEIM, the Portfolios'
Investment Advisor and Administrator, a wholly owned subsidiary of General
Electric Company, for investment advisory and administrative services, is paid
monthly based on the average daily net assets of each Portfolio. Such advisory
and administration fee is based on the annual rates listed in the table below.
Until further notice, GEIM has agreed to reduce other operating expenses
(exclusive of advisory and administration fees) for each Portfolio as indicated
in the following table:
<TABLE>
<CAPTION>
ANNUALIZED BASED ON AVERAGE
DAILY NET ASSETS
------------------------------------------
<S> <C>
ADVISORY AND LIMITATION OF OTHER
ADMINISTRATION FEES OPERATING EXPENSES
------------------- -------------------
GE U.S. Equity Portfolio...................................... .55% .25%
GE Fixed Income Portfolio..................................... .50% .25%
</TABLE>
TRUSTEES' FEES. The Portfolios pay no compensation to their Trustees who are
employees of GEIM. Trustees who are not GEIM employees receive an annual fee of
$5,000 and an additional fee of $500 for each Trustees' meeting attended.
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION. Aggregate gross
unrealized appreciation/ depreciation of investments for each Portfolio at
December 31, 1995, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C>
GE U.S. Equity Portfolio..................................... $1,599,736 $ 59,350 $1,540,386
GE Fixed Income Portfolio.................................... 145,416 1,039 144,377
</TABLE>
The aggregate cost of each Portfolio's investments was substantially the same
for book and federal income tax purposes at December 31, 1995.
- --------------------------------------------------------------------------------
<PAGE>
Variable Investment Trust 77
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS, CONTINUED
5. OPTIONS. During the period ended December 31, 1995, the following option
contracts were written:
<TABLE>
<CAPTION>
GE U.S. EQUITY
PORTFOLIO
-----------------------
<S> <C>
NUMBER
OF CONTRACTS PREMIUM
------------ -------
Balance as of January 3, 1995.................................................... 0 $ 0
Written.......................................................................... 4 1,551
Closed and Expired............................................................... (3) (1,329)
Exercised........................................................................ (1) (222)
--
-------
Balance as of December 31, 1995.................................................. 0 $ 0
--
--
-------
-------
</TABLE>
6. INVESTMENT TRANSACTIONS. The cost of purchases and the proceeds from sales
of investments, other than U.S. Government obligations, short term investments
and options, for the period ended December 31, 1995, were:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C>
GE U.S. Equity Portfolio....................................................... $11,587,276 $5,815,371
GE Fixed Income Portfolio...................................................... 2,697,058 1,576,390
</TABLE>
The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the period ended December 31, 1995, were:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C>
GE U.S. Equity Portfolio....................................................... $ 122,166 $ 40,166
GE Fixed Income Portfolio...................................................... 10,242,480 8,582,035
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
78 Variable Investment Trust
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of Variable Investment Trust
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects the financial position of GE U.S. Equity Portfolio, GE
International Equity Portfolio, GE Fixed Income Portfolio and GE Money Market
Portfolio, each a portfolio of Variable Investment Trust (the "Trust"), at
December 31, 1995 and the results of their operations, the changes in their net
assets and the financial highlights for the period January 3, 1995 (commencement
of operations) through December 31, 1995, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Trust's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
February 8, 1996
- --------------------------------------------------------------------------------
<PAGE>
The Statement of Additional Information is incorporated herein by reference to
the Statement of Additional Information filed with the Securities and Exchange
Commission on October 24, 1997 as part of Post-Effective Amendment No. 21 to GE
Investments Funds, Inc.'s registration statement on Form N-1A (File No.
2-91369).
<PAGE>
GE INVESTMENTS FUNDS, INC.
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
The financial statements of GE Investments Funds, Inc. are included in
Part B to this Registration Statement.
(b) Exhibits
1 Amended and restated Articles of Incorporation of GE Investments Funds,
Inc. dated April 17, 1997 incorporated herein by reference to
post-effective amendment # 19 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
July 11, 1997.
2 Amended and restated By-laws of Life of Virginia Series Fund, Inc. dated
January 25, 1995 incorporated herein by reference to post-effective
amendment #15 to this Form N-1A registration statement (File No.
2-91369), filed with the Securities and Exchange Commission on May 1,
1995.
3 Not Applicable
4 Not Applicable
5(a) Investment Advisory Agreement between Life of Virginia Series Fund, Inc.
and Aon Advisors, Inc., dated May 1, 1993 incorporated herein by
reference to post-effective amendment #13 to this Form N-1A registration
statement (File No. 2-91369), filed with the Securities and Exchange
Commission on April 29, 1994.
5(b) New Investment Advisory Agreement between Life of Virginia Series Fund,
Inc. and Aon Advisors, Inc. dated April 27, 1995, covering the
International Equity Portfolio incorporated herein by reference to
post-effective amendment #15 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
May 1, 1995.
5(c) New Investment Advisory Agreement between Life of Virginia Series Fund,
Inc. and Aon Advisors, Inc. dated April 27, 1995, covering the Real
Estate Securities Portfolio incorporated herein by reference to
post-effective amendment #15 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
May 1, 1995.
5(d) Form of Investment Sub-Advisory Agreement between Aon Advisors, Inc. and
Perpetual Portfolio Management, Limited incorporated herein by reference
to post-effective amendment #15 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
May 1, 1995.
5(e) Form of Investment Sub-Advisory Agreement between Aon Advisors, Inc. and
Genesis Realty Capital Management, L.P. incorporated herein by reference
to post-effective amendment #15 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
May 1, 1995.
5(f) Form of Investment Sub-Advisory Agreement between Aon Advisors, Inc. and
GMG/Seneca Capital Management, LLC incorporated herein by reference to
exhibit 17 to post-effective amendment # 16 to this Form N-1A
registration statement (File No. 2-91369), filed with the Securities and
Exchange Commission on May 1, 1996.
<PAGE>
5(g) Investment Advisory and Administration Agreement dated May 1, 1997,
between GE Investments Funds, Inc. and GE Investment Management
Incorporated incorporated herein by reference to post-effective amendment
#18 to this registration statement (File No. 2-91369), filed on April 30,
1997.
5(h) Sub-Advisory Agreement dated May 1, 1997, between GE Investment
Management Incorporated and GMG/Seneca Capital Management, LLC
incorporated herein by reference to post-effective amendment #18 to this
registration statement (File No. 2-91369), filed on April 30, 1997.
6(a) Underwriting Agreement between Life of Virginia Series Fund, Inc. and
Forth Financial Securities Corporation, dated April 2, 1996 incorporated
herein by reference to post-effective amendment #16 to this Form N-1A
registration statement (File No. 2-91369), filed with the Securities and
Exchange Commission on May 1, 1996.
6(b) Distribution Agreement between GE Investments Funds, Inc. and GE
Investment Services Inc. dated October 24, 1997 incorporated herein by
reference to post-effective amendment #21 to this Form N-1A registration
statement (File No. 2-91369), filed with the Securities and Exchange
Commission on October 24, 1997.
7 Not Applicable
8(a) Custody Agreement between Life of Virginia Series Fund, Inc. and Crestar
incorporated herein by reference to post-effective amendment #4 to this
Form N-1A registration statement (File No. 2-91369), filed with the
Securities and Exchange Commission on 4/10/87.
8(b) Form of Custody Agreement between Life of Virginia Series Fund, Inc. and
Firstar Trust Company incorporated herein by reference to post-effective
amendment #15 to this Form N-1A registration statement (File No.
2-91369), filed with the Securities and Exchange Commission on May 1,
1995.
8(c) Form of Sub-Custody Agreement between Firstar Trust Company and Chase
Manhattan Bank, N.A. incorporated herein by reference to post-effective
amendment #15 to this Form N-1A registration statement (File No.
2-91369), filed with the Securities and Exchange Commission on May 1,
1995.
8(d) Custody Agreement dated May 1, 1997, between GE Investments Funds, Inc.
and State Street Bank and Trust Company incorporated herein by
reference to post-effective amendment #21 to this Form N-1A registration
statement (File No. 2-91369), filed with the Securities and Exchange
Commission on October 24, 1997.
9 Transfer Agency Agreement between GE Investments Funds, Inc. and State
Street Bank and Trust Company dated October 24,1997 incorporated herein
by reference to post-effective amendment #21 to this Form N-1A
registration statement (File No. 2-91369), filed with the Securities and
Exchange Commission on October 24, 1997.
10 Opinion and consent of William E. Daner, Jr., Esq. incorporated herein by
reference to pre-effective amendment #1 to this Forn N-1A registration
statement (File No. 2-91369), filed with the Securities and Exchange
Commission on 12/21/84.
<PAGE>
11(a) Consent of Sutherland, Asbill & Brennan LLP.
11(b) Consent of Ernst & Young LLP.
11(c) Consent of KPMG Peat Marwick LLP.
11(d) Consent of Price Waterhouse LLP.
12 Not Applicable.
13(a) Letter regarding initial capital incorporated herein by reference to
post-effective amendment #1 to this Form N-1A registration statement
(File No. 2-91369), filed with the Securities and Exchange Commission on
6/28/85.
13(b) Stock Sale Agreement incorporated herein by reference to pre-effective
amendment #1 to this Form N-1A registration statement (File No. 2-91369),
filed with the Securities and Exchange Commission on 12/21/84.
<PAGE>
13(c) Stock Sale Agreements for Separate Accounts III and 4; Amendments to
Stock Sale Agreements for Separate Accounts I and II incorporated herein
by reference to post-effective amendment #7 to this Form N-1A
registration statement (File No. 2-91369), filed with the Securities and
Exchange Commission on 4/19/89.
14 Not Applicable.
15 Not Applicable.
16 Not Applicable.
17. Financial Data Schedules incorporated herein by reference to
post-effective amendment #18 to this registration statement (File No.
2-91369), filed on April 30, 1997.
18. Not applicable.
19 Not Applicable
Item 25. Persons Controlled by or Under Common Control with Registrant.
GE Investments Funds, Inc. is a Virginia corporation organized on May 14, 1984.
The Life Insurance Company of Virginia, a corporation chartered under the Laws
of the Commonwealth of Virginia, has provided the initial investment in the
Registrant. The Life Insurance Company of Virginia and Great Northern Insured
Annuity Corporation each own a significant amount of the shares of one or more
classes of the Registrant's stock through the Separate Accounts to support the
variable life insurance and/or variable annuity contracts which they offer.
Additional information about persons controlled by or under common control with
the Registrant is incorporated herein by reference to pages 10-12 and to exhibit
21 of GE's Form 10-K (File No. 1-35) filed with the commission on December 31,
1996.
The Life Insurance Company of Virginia and Great Northern Insured Annuity
Corporation each are an indirect, wholly-owned subsidiary of General Electric
Capital Corporation ("GE Capital"). GE Capital, a diversified financial services
company, is a wholly-owned subsidiary of General Electric Company.
Item 26. Number of Holders of Securities
Number of Record Holders
Title of Class as of September 30, 1997
- -------------- ------------------------
Capital Stock, Class A 5
Capital Stock, Class B 4
Capital Stock, Class C 5
Capital Stock, Class D 4
Capital Stock, Class E 4
Capital Stock, Class F 4
Capital Stock, Class G 4
Capital Stock, Class H 4
Capital Stock, Class I 0
Capital Stock, Class J 0
Capital Stock, Class K 0
<PAGE>
Item 27. Indemnification
Under Section 13.1-697.A of the Virginia Stock Corporation Act, with
respect to any threatened, pending or completed proceeding against a present or
former director, officer, employee or agent ("corporate representative") of the
registrant, except a proceeding brought by or on the behalf of the registrant,
the registrant may indemnify the corporate representative against expenses,
including attorneys' fees, judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such proceedings, if:
(i) he acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interest of the registrant; and (ii) with respect to any
criminal action or proceeding, he had no reasonable cause to believe his conduct
was unlawful. The registrant is also authorized under Section 13.1-3.1(b) of the
Virginia Stock Corporation Act to indemnify a corporate representative under
certain circumstances against expenses incurred in connection with any
threatened, pending, or completed proceeding brought by or in the right of the
registrant.
The Articles of Incorporation of the Fund (Exhibit 1.(c) to this
Registration Statement) provide that the Fund may indemnify it corporate
representatives, in a manner that is consistent with the laws of the
Commonwealth of Virginia. The Articles preclude indemnification for "disabling
conduct" (willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of office) and sets forth
reasonable and fair means for determining whether indemnification shall be made.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the Fund has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of such action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Item 28. Business and Other Connections of Investment Adviser
Reference is made to "Management of the Company" in the Prospectus forming Part
A, and "The Management of the Company" in the Statement of Additional
Information forming Part B, of this Registration Statement.
The list required by this Item 28 of officers and directors of GEIM, the Funds'
investment adviser, together with information as to any other business,
profession, vocation or employment of a substantial nature engaged in by those
officers and directors during the past two years, is incorporated by reference
to Schedules A and D of the Forms ADV filed by GEIM pursuant to the Investment
Advisers Act of 1940, as amended (SEC File No. 801-31947).
Item 29. Principal Underwriters
(a) GE Investment Services Inc. ("GEIS") also serves as distributor for the
investment portfolios of GE Funds, GE Institutional Funds and for Elfun
Tax-Exempt Income Fund, Elfun Income Fund, Elfun Global Fund, Elfun Money Market
Fund, Elfun Trusts and Elfun Diversified Fund.
(b) The information required by this Item 29 with respect to each director
and Officer of GEIS is incorporated by reference to Schedule A of Form BD filed
by GEIS pursuant to the Securities Exchange Act of 1934 (SEC File No. 8-45710).
(c) Inapplicable.
<PAGE>
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by Registrant
pursuant to Section 31(a) of the Investment Company Act of 1940, as amended (the
"1940 Act"), and the rules thereunder, are maintained at the offices of:
Registrant located at 3003 Summer Street, Stamford, Connecticut 06905; State
Street Bank and Trust Company ("State Street"), Registrant's custodian and
transfer agent, located at 225 Franklin Street, Boston, Massachusetts 02101; and
National Financial Data Services Inc., an indirect subsidiary of State Street,
located at P.O. Box 419631, Kansas, MO 64141-6631.
Item 31. Management Services
None.
Item 32. Undertakings
(a) Not applicable.
(b) The Registrant undertakes to file a post-effective amendment, containing
reasonably current financial statements for Premier Growth Equity Fund
(that need not be certified) within four to six months from the effective
date of post-effective amendment number 21.
(c) The Registrant undertakes to furnish each person to whom a prospectus is
delivered with a copy of the Registrant's latest annual report to
shareholders, upon request and without charge.
(d) The Registrant hereby undertakes, if requested to do so by the holders of
at least 10% of the Registrant's outstanding shares, to call a meeting of
shareholders for the purpose of voting upon any question of removal of a
director or directors, and to assist in communications with other
shareholders as required by Section 16(c) of the Investment Company Act
of 1940, as amended.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, GE Investments Funds, Inc. certifies that it
meets all of the requirements for effectiveness of this registration statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused
this Post-Effective Amendment No. 22 to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Stamford, State of
Connecticut, on the 11th day of December, 1997.
GE Investments Funds, Inc.
/s/ Paul E. Rutledge
By:_____________________________________
Paul E. Rutledge, President
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this post-effective
amendment to the registration statement has been signed below by the following
persons in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
/s/ Paul E. Rutledge
__________________________________ President (Principal Executive Officer) 12/11/97
Paul E. Rutledge and Director
/s/ Jeffrey A. Groh
__________________________________ Treasurer (Principal Financial 12/11/97
Jeffrey A. Groh and Accounting Officer)
/s/ Michael J. Cosgrove
__________________________________ Director 12/11/97
Michael J. Cosgrove
/s/ John R. Costantino
__________________________________ Director 12/11/97
John R. Costantino
/s/ William J. Lucas
__________________________________ Director 12/11/97
William J. Lucas
__________________________________ Director
Robert P. Martin, Jr.
__________________________________ Director
J. Clifford Miller, III
__________________________________ Director
J. Garnett Nelson
__________________________________ Director
Lee A. Putney
/s/ Robert P. Quinn
__________________________________ Director 12/11/97
Robert P. Quinn
<PAGE>
Exhibit Index
11 (a) Consent of Sutherland, Asbill & Brennan LLP
11 (b) Consent of Ernst & Young LLP.
11 (c) Consent of KPMG Peat Marwick LLP.
11 (d) Consent of Price Waterhouse LLP.
</TABLE>
Exhibit 11(a)
[Letterhead of Sutherland, Asbill & Brennan LLP]
December 3, 1997
Board of Directors
GE Investments Funds, Inc.
3003 Summer Street
Stamford, CT 06905
RE: GE Investments Funds, Inc.
File No. 2-91369
Gentlemen:
We hereby consent to the reference to our name under the
captions "Legal Matters" in the Prospectus and "Legal Counsel" in the
Statement of Additional Information filed as part of the Post-Effective
Amendment No. 22 to Form N-1A for GE Investments Funds, Inc. (File No.
2-91369). In giving this consent, we do not admit that we are in the
category of persons whose consent is required under Section 7 of the
Securities Act of 1933.
Very truly yours,
SUTHERLAND, ASBILL & BRENNAN LLP
By: /s/Stephen E. Roth
--------------------
Stephen E. Roth
Consent of Ernst & Young LLP, Independent Auditors
We consent to the reference to our firm under the captions "Financial
Highlights" and "Financial Statements-Audited Financial Statements" and to the
use of our report dated February 12, 1997, included in the Annual Report
incorporated by reference in the Registration Statement (Form N-1A) of GE
Investments Funds, Inc. (formerly, Life of Virginia Series Fund, Inc.) filed
with the Securities and Exchange Commission in this Post Effective Amendment
No. 22 to the Registration Statement under the Securities Act of 1933
(Registration No. 2-91369) and in this Amendment No. 23 to the Registration
Statement under the Investment Company Act of 1940 (Registration No. 811-4041).
/s/ ERNST & YOUNG LLP
Richmond, Virginia
December 9, 1997
Independent Auditors' Consent
To the Shareholders and Board of Directors of the
GE Investments Funds, Inc.:
We consent to the reference to our Firm under the heading "Independent Auditors"
in the Statement of Additional Information filed as part of the Post-Effective
Amendment No. 22 to Form N-1A for GE Investments Funds, Inc. (File No. 2-91369).
/s/ KPMG Peat Marwick LLP
------------------------------
KPMG Peat Marwick LLP
New York, New York
December 11, 1997
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 22 to the Registration
Statement on Form N-1A (the "Registration Statement") of our reports dated
February 11, 1997 and February 8, 1996, relating to the financial statements
and financial highlights of the GE Investment Funds (formerly the Variable
Investment Trust), which accompany such Statement of Additional Information.
We also consent to the references to us under the headings "Financial
Highlights" in the Prospectus and "Independent Accountants" and "Financial
Statements" in the Statement of Additional Information.
PRICE WATERHOUSE LLP
Boston, Massachusetts
December 10, 1997
