<PAGE>
GE Funds
[GRAPHIC]
GE LOGO
[GRAPHIC]
Photo of:
GE Investments' portfolio managers are pictured making a trade in one of our
newly upgraded trading rooms. During 1995, GE Investments made technological
improvements in an effort to create state-of-the-art trading facilities.
ANNUAL REPORT September 30, 1995
<PAGE>
Understanding Your Report
Page
GE FUNDS' SPECTRUM INSIDE FRONT COVER
How Your Funds Match Up With
The Risk/Return Spectrum
PRESIDENT'S LETTER 1
Mike Cosgrove On Market Events
REVIEW OF PERFORMANCE
AND SCHEDULES OF INVESTMENTS
Portfolio Managers Discuss Your Funds
And What We Invested In And Why
GE INTERNATIONAL FUNDS 3-9
GE U.S. EQUITY FUND 10-16
GE STRATEGIC INVESTMENT FUND 17-23
GE TAX-EXEMPT FUND 24-27
GE FIXED INCOME FUNDS 28-37
FINANCIAL STATEMENTS 38-49
Financial Highlights And Statements
Of Assets And Liabilities,
Operations, And Changes In Net Assets
NOTES 50-53
Notes To The Financial Statements
REPORT OF INDEPENDENT ACCOUNTANTS 55
The Accountant's Opinion
GE FUNDS MANAGEMENT TEAM 56
SHAREHOLDER INQUIRIES INSIDE BACK COVER
How You Can Obtain More Information
CLASS STRUCTURE
The following describes each of the class definitions for the
GE Funds' multiple class structure, which is described in greater detail in
the Funds' Prospectus. Be sure to reference your appropriate performance
chart.
CLASS A SHARES are offered with a front-end load (as described
in Note 1 of the Notes to the Financial Statements) through authorized
dealers and are available to anyone not eligible to invest in Class C or
Class D. Also available to certain employee retirement plans seeking the
additional services available to Class A investors. The load is waived in
certain instances as described in the prospectus.
CLASS B SHARES are offered with a back-end load through
authorized dealers and are available to anyone not eligible to invest in
Class C or Class D. The maximum contingent deferred sales load imposed on
redemptions of this class of shares (as a percentage of redemption proceeds)
is 4.00% for equity funds and 3.00% for fixed income funds.
CLASS C SHARES are no load shares available only to a limited
group of investors, including employees and retirees of GE and their family
members.
CLASS D SHARES are no load shares available only to certain
qualified institutions, including employee retirement plans that do not seek
the additional services available to Class A investors.
ON THE COVER: GE Investments' portfolio managers are pictured making a trade
in one of our newly upgraded trading rooms.
During 1995, GE Investments made technological improvements
in an effort to create state-of-the-art trading facilities.
<PAGE>
Investment Strategy
AGGRESSIVE
MODERATE
CONSERVATIVE
FINDING THE RIGHT MIX OF RISK AND RETURN
Potential
Risk/Return
Mutual Fund Categories Spectrum
STABILITY This category seeks to provide strong safety and stability of
principal while providing current income. Funds in this category are built
around high-quality, short-term securities with remaining maturities of 13
months or less.
INCOME This category includes taxable or tax-exempt bond funds. Depending on
the types of bonds or other fixed income securities in which the funds
invest, these funds seek to provide a moderate to high level of current
income, while aiming to preserve an investor's original investment value.
GROWTH This category includes stock funds designed to pursue long-term
growth. Balanced and asset allocation funds investing in diversified
portfolios of bonds, other fixed income securities and money market
instruments, as well as stocks may also be included. Although stocks
historically have offered the greatest growth potential, they have fluctuated
more in price from day to day.
INTERNATIONAL GROWTH This category includes international stock funds that
invest in common stocks and other equity securities of companies located
primarily outside the United States. Compared with domestic stocks, these
funds offer potentially higher returns, but carry additional risks.
<PAGE>
GE FUNDS
GE Money Market Fund
GE Short-Term
Government Fund
GE Fixed Income Fund
GE Tax-Exempt Fund
GE Strategic Investment Fund
GE U.S. Equity Fund
GE Global Equity Fund
GE International Equity Fund
Each investor has a unique notion of what the "right" mix of risk and return
should be. You may, for example, be an investor who seeks to maintain the
highest possible degree of stability in your portfolio, and therefore favors
money market securities. Or, you may be at the opposite end of the spectrum -
someone who is willing to accept and tolerate higher degrees of risk in
exchange for the potential of higher returns offered by stocks. Because
higher returns generally mean greater price fluctuations and potential loss,
investment decisions will always revolve
around this tradeoff.
To help you align your portfolio's particular blend of risk and return
with your investment preferences, GE Funds strives to offer an evenly balanced
array of invest ment options.
As illustrated at left, GE Funds' family of funds falls
into distinct categories that are designed to match up with the various
stages of the risk/return spectrum. Using this guide, you can fashion a
diversified portfolio to help you achieve your individual investment goals
while maintaining a level of risk acceptable to you. Through this type of
approach, GE Funds can truly be your core investment program.
<PAGE>
A LETTER FROM THE PRESIDENT
DEAR SHAREHOLDER:
This past year marks some exciting changes at the GE Funds. We have devoted
significant efforts and resources to improving our customer service
capabilities. Our GE Inquiry Center has been expanded to accommodate major
technology improvements. Each of our inquiry specialists has undergone
extensive training in order to provide you with more valuable information.
In addition, we continue to upgrade our trading areas with the latest
equipment for trading, news and information to ensure our analysts stay on
top of the markets.
In the same spirit of change, you'll note some improvements to this
year's annual report. We've organized the report to be more interesting and
informative for you. We've added helpful fund information on the inside front
cover and have organized the discussion of each Fund by its asset class.
Going forward into another fiscal year, you'll continue to see
changes at the GE Funds. Recently, you may have received our customer
satisfaction survey. We want to take this oppor-tunity to encourage your
feedback. It is the most valuable way we can improve our services and
product offerings to you.
PERFORMANCE HIGHLIGHTS
After weak financial performance in 1994, financial markets rebounded in
1995. The best performing GE Fund was our U.S. Equity Fund, which had returns
in the mid 20% range for the year, excluding loads. Boosted by its investment
allocation in the U.S. stock market, the GE Strategic Investment Fund
performance closely followed, returning approximately 20% for all classes,
excluding loads. GE Fixed Income Fund was another double digit performer,
excluding loads, benefiting from lower interest rates in 1995.
Additionally, the majority of our Fund classes, excluding loads,
outperformed their peers for the year, based on averages calculated by Lipper
Analytical Services, an independent mutual fund rating service. The Lipper
Analytical Services average total returns for each applicable category and
complete details on each Fund's performance, including reductions for the
effects of loads, can be found on the various Fund profiles contained in this
annual report.
Overall, every Fund (all classes) with the exception of GE Global
Equity Fund, had its highest annual total return since its commencement of
investment operations.
MARKET OVERVIEW
In the third quarter of 1995, with the so-called soft landing in sight, the
Federal Reserve reversed its braking policy of raising interest rates in 1994
and early 1995 and lowered interest rates by 0.25% to try to stimulate
economic growth. Many "Fed Watchers" predict further interest rate
reductions as U.S. industrial activity continues to slow. This interest rate
environment, coupled with low inflation, robust corporate earnings and money
flowing into equity mutual funds, contributed to a strong fiscal year ending
September 30, 1995 for the equity markets-an increase of 29.8% as measured by
the S&P 500.
The bond market also reacted positively with a return of 14.1% for
the twelve month period ending September 1995, as measured by the Lehman
Brothers Aggregate Bond Index. Driven by concerns over potential tax reform,
municipal bonds underperformed taxable bonds on a total return basis during
the period, with the Lehman Brothers Municipal Bond Index up 11.2%.
International equity market performance, as measured by the Morgan
Stanley EAFE Index, was disappointing with a return of 5.8% for the twelve
month period ending September 1995. Japan, while showing significant
improvement in the third
quarter, was the major market driving the underperformance as its
continued economic malaise resulted in a negative return of 5.5%. Continental
European markets, while lagging the U.S., delivered strong returns of 18.5%
for the same period, led by the Scandinavian countries
and Switzerland.
[GRAPHIC]
Photo of: Michael J. Cosgrove
President
MARKET OUTLOOK
The DOMESTIC EQUITY market is at record levels as measured by dividend yield
and several other valuation tools and the potential certainly exists for a
short term correction. With economic activity at relatively lower levels
during the past few months, we would expect much slower growth in corporate
1
<PAGE>
earnings. Fourth quarter 1995 results may include some earnings
disappointments which could cause investors to lose confidence in the market.
However, good underlying fundamentals, low inflation, flat to declining
interest rates, plenty of liquidity and slow but stable economic growth,
should result in a continuation of long term growth in the financial markets.
We believe that our focus on individual stock selection should serve us well
during this period.
Looking ahead, we see favorable market conditions for FIXED INCOME
investments. Inflation is currently under control and the economy, while
growing, may need some additional stimulus which should result in bond
returns slightly above coupon rates.
In the MUNICIPAL market, bonds will continue to be drawn out of the
market and tax reform will continue to weigh heavily on investor decisions.
It is still too early to guess what tax legislation, if any, will come from
Washington. Municipal prices, however, will likely increase in volatility as
the Presidential and Congressional campaigns gather momentum and the tax
reform debate heats up. We will continue to monitor this situation and keep
you informed of any significant actions in future correspondence.
In INTERNATIONAL markets, a slowdown in economic growth has
occurred and has resulted in government actions to lower interest rates. We
anticipate further cuts in Europe and Japan, which should support a moderate
pickup in economic activity through the year end and into 1996. Weakness seen
in Continental European markets, in particular France, has provided a buying
opportunity, as many companies have been hit by the macroeconomic and
political environment. Market valuations in Europe continue to look favorable
compared with the U.S. The Japan market is dominated by financial firms and
companies that serve local markets (73%), which we find to be generally
unattractive. We continue to see an opportunity to invest in export related
companies in Japan. Therefore, our investment selection will focus on
globally competitive companies with proprietary products that we believe can
grow earnings in both a rising and falling yen environment.
Our view of the relative attractiveness of the various financial
markets can be found in our allocations in the GE Strategic Investment Fund.
Recently our cautious view has resulted in a reduction of U.S. equity
exposure as a percentage of the Fund's assets. This was done to buffer
potential short-term volatility in the U.S. equity market.
We appreciate your investment in the GE Funds and we will continue
to be dedicated to helping you meet your financial needs.
/s/ Michael J. Cosgrove
Michael J. Cosgrove
Mike Cosgrove is responsible for the marketing, product development
and sales of the GEFunds.
In Mike's previous position as Chief Financial Officer of GE
Investments and Assistant Treasurer-GE Company, he had financial
responsibility for all assets (then $43 Billion) under GE Investments'
management. Within his Treasury scope, he had responsibility for GE
Shareholder Services, Commercial Paper and the Company Cash Management
System. Mike joined GE in 1970. After completing the Financial Management
Program he held a number of managerial positions in finance and sales in the
International Operation, including serving as its Vice President and
Treasurer and later as the Vice President - Countertrade and Barter for GE
Trading Company.
Mike is a Trustee of the GE Pension Trust and GE's employee savings
program and serves on GE Investments' Asset Allocation Committee.
He graduated from Fordham University in 1970 with a B.S. degree
in Economics and received his M.B.A. degree from St. John's
University in 1973.
"We will continue
to be dedicated to helping you meet
your financial needs."
2
<PAGE>
GE INTERNATIONAL FUNDS
Ralph Layman manages the international equity operation with total
assets of nearly $6 billion. His responsibilities include managing the GE
Global Equity and International Equity Funds.
Prior to joining GE Investments in 1991, Ralph was Executive
Vice President and Director of International Equity Operations at Northern
Capital Management. Previously, he was a Vice President and Portfolio Manager
at Templeton Investment Counsel, Inc. He was instrumental in forming
Templeton's Emerging Markets Fund, the first listed emerging markets equity
fund in the U.S.
Ralph is a Trustee of the GE Pension Trust, GE's employee
savings program, as well as serving on the GE Investments' Asset Allocation
Committee. He is a Chartered Financial Analyst (CFA), a charter member of the
International Society of Security Analysts and a member of the New York
Society of Security Analysts.
Ralph is a graduate of the University of Wisconsin with a B.S. in Economics
and a M.S. in Finance.
[GRAPHIC]
Photo of Ralph Layman
MARKET OVERVIEW
The year has been marked by a continuing slide of the dollar particularly
against the "hard" European currencies. In contrast, after weakening through
the first half of 1995, the dollar made a rapid reversal against the yen, in
the third quarter of 1995, rising 13% and reversing virtually all the year's
losses.
Although the dollar rally hurt our performance, we are positioned
in many companies that are global, and believe we can benefit from the dollar
rally because of the positive impact on earnings. We believe that continuing
mild strength in the dollar can have a positive impact on your portfolio
performance in the medium-term.
GE International Equity Fund
For the year ended September 30, 1995 the international markets, as measured
by the MSCI EAFE Index, returned 5.8%. The primary driver of our
underperformance relative to the benchmark was our weightings in emerging
markets, in particular Mexico. As one of the largest country weightings in
the Fund, France had a significant negative impact on performance for the
third quarter of 1995. The resignation of the French Finance Minister, who
was in favor of a strong Franc and disciplined budget cutting, led the market
downturn.
GE GLOBAL EQUITY FUND
For the year ended September 30, 1995 the global equity market, as measured
by the MSCI World Index, returned 14.4%. The primary driver of the GE Global
Equity Fund's underperformance relative to the benchmark has been the
significant underweight position in the U.S. Additionally, our weightings
in emerging markets, albeit small, also contributed to our under-performance.
Although we did add to our U.S. holdings in the first quarter of 1995
(Travelers Group and Ecolab were new names), it was not enough to get
our holdings to the benchmark level. Our performance was enhanced however
by the underweight position in Japan (-5.5% return) as well as the
exposure in Switzerland (+33.1% return).
Given our investment style, looking for undervalued growth
opportunities, we are finding more attractive investments in non-U.S.
markets. As always, we will continue to focus on stocks that we believe can
deliver consistent growth at a reasonable price, regardless of the economic
environment. We remain committed to our stock picking discipline, ready to
take advantage of investment opportunities offered by volatile markets.
3
<PAGE>
GE INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
GE International Equity Fund
Top Ten Largest Holdings
at September 30, 1995
<S> <C>
Shw Ruckversicher 2.79%
Murata Manufacturing Co. 2.66%
Roche Holdings AG 2.53%
Carrefour 2.43%
Total 2.42%
Veba AG 2.38%
Suzuki Motor Corp. 2.35%
DDI Corp. 2.27%
Secom Co. 2.27%
Ito Yokado Co. 2.17%
</TABLE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in foreign equity
securities.
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
<TABLE>
<CAPTION>
Peer group: International Stock
<S> <C>
Number of Funds
in peer group: 407
Peer group average
total return: (1.62%)
</TABLE>
* Lipper is an independent mutual fund rating service located
in Summit, New Jersey.
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
Data for Line Chart to follow:
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL MSCI EAFE
EQUITY EQUITY
3/2/94 w/ load
<S> <C> <C> <C>
3/2/94* 10,000.00 10,000.00 10,000.00
Mar-94 9,753.33 9,290.05 9,569.11
9,973.33 9,499.59 9,974.91
9,919.99 9,448.79 9,917.64
Jun-94 9,753.32 9,290.04 10,057.82
10,126.66 9,645.64 10,154.90
10,433.33 9,937.74 10,395.44
Sep-94 10,119.99 9,639.29 10,067.63
10,339.99 9,848.84 10,403.08
9,933.32 9,461.49 9,902.91
Dec-94 9,622.69 9,165.62 9,965.09
9,248.22 8,808.93 9,582.20
9,375.27 8,929.94 9,554.93
Mar-95 9,682.87 9,222.94 10,150.54
10,104.15 9,624.21 10,532.34
10,204.46 9,719.75 10,406.89
Jun-95 10,298.07 9,808.92 10,224.17
10,846.42 10,331.21 10,860.70
10,438.50 9,942.68 10,446.71
Sep-95 10,612.37 10,108.28 10,650.70
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Int'l Equity 4.87% 3.83%
GE Int'l Equity w/load (0.13%) 0.68%
MSCI EAFE 5.79% 4.04%
</TABLE>
Class B Shares
[GRAPHIC]
LINE CHART
Data for Line Chart to follow:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY INTERNATIONAL EQUITY MSCI EAFE
3/2/94 w/ load
<S> <C> <C> <C>
3/2/94* 10,000.00 10,000.00 10,000.00
Mar-94 9,753.40 9,753.40 9,569.11
9,960.06 9,960.06 9,974.91
9,913.40 9,913.40 9,917.64
Jun-94 9,740.07 9,740.07 10,057.82
10,106.73 10,106.73 10,154.90
10,406.73 10,406.73 10,395.44
Sep-94 10,086.72 10,086.72 10,067.63
10,306.72 10,306.72 10,403.08
9,893.38 9,893.38 9,902.91
Dec-94 9,582.72 9,582.72 9,965.09
9,202.34 9,202.34 9,582.20
9,329.13 9,329.13 9,554.93
Mar-95 9,629.43 9,629.43 10,150.54
10,036.49 10,036.49 10,532.34
10,136.62 10,136.62 10,406.89
Jun-95 10,223.37 10,223.37 10,224.17
10,763.90 10,763.90 10,860.70
10,356.83 10,356.83 10,446.71
Sep-95 10,523.66 10,223.66 10,650.70
</TABLE>
*INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Int'l Equity 4.33% 3.28%
GE Int'l Equity w/load 0.33% 1.41%
MSCI EAFE 5.79% 4.04%
</TABLE>
Class C Shares
[GRAPHIC]
LINE CHART
Data for Line Chart to follow:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY MSCI EAFE
3/2/94
<S> <C> <C>
3/2/94* 10,000.00 10,000.00
Mar-94 9,760.00 9,569.11
9,973.33 9,974.91
9,920.00 9,917.64
Jun-94 9,760.00 10,057.82
10,133.33 10,154.90
10,439.99 10,395.44
Sep-94 10,126.66 10,067.63
10,353.32 10,403.08
9,946.65 9,902.91
Dec-94 9,636.58 9,965.09
9,261.04 9,582.20
9,395.16 9,554.93
Mar-95 9,703.64 10,150.54
10,126.11 10,532.34
10,226.71 10,406.89
Jun-95 10,320.59 10,224.17
10,870.48 10,860.70
10,474.83 10,446.71
Sep-95 10,649.18 10,650.70
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Int'l Equity 5.16% 4.06%
MSCI EAFE 5.79% 4.04%
</TABLE>
Class D Shares
[GRAPHIC]
LINE CHART
Data for Line Chart to follow:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY MSCI EAFE
3/2/94
<S> <C> <C>
3/2/94* 10,000.00 10,000.00
Mar-94 9,760.00 9,569.11
9,980.00 9,974.91
9,933.33 9,917.64
Jun-94 9,773.34 10,057.82
10,146.67 10,154.90
10,460.00 10,395.44
Sep-94 10,146.67 10,067.63
10,373.34 10,403.08
9,966.67 9,902.91
Dec-94 9,666.15 9,965.09
9,290.25 9,582.20
9,424.50 9,554.93
Mar-95 9,733.29 10,150.54
10,156.18 10,532.34
10,263.58 10,406.89
Jun-95 10,357.55 10,224.17
10,914.70 10,860.70
10,518.66 10,446.71
Sep-95 10,699.89 10,650.70
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Int'l Equity 5.45% 4.37%
MSCI EAFE 5.79% 4.04%
</TABLE>
4
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE INTERNATIONAL EQUITY FUND
[GRAPHIC]
PIE CHART
Data for Line Chart to follow:
<TABLE>
<CAPTION>
GE INTERNATIONAL EQUITY
<S> <C>
Europe 58.6%
Japan 19.7%
Pacific Rim 12.5%
Cash & Other 6.4%
Other Regions 2.8%
100.0%
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value
<S> <C> <C>
Common Stock - 93.5%
Australia - 2.6%
Brambles Industries Ltd 52,144 $575,349
Burns Philip & Co 194,369 411,301
986,650
Austria - 3.1%
Bohler Uddeholm 5,300 378,741 (a)
Creditanstalt Bankverein 4,853 242,469
VA Technologie AG 4,898 564,019
1,185,229
Denmark - 2.1%
ISS (Series B) 14,472 381,186
Tele Danmark AS (Series B) 8,096 418,456
799,642
France - 10.5%
Alcatel Alsthom 2,326 195,593
Banque Nationale Paris 11,429 447,923
Carrefour 1,583 929,002
Coflexip ADR 24,529 377,133
Eaux (Cie Generale) 3,617 347,414
Total (Class B) 15,285 924,953
Valeo 16,300 767,254
3,989,272
Germany - 9.6%
Deutsche Bank AG 11,870 565,092
Gehe AG 652 306,381
Gehe AG (new) 163 74,143 (a)
Sap AG 3,398 553,334
SGL Carbon 6,449 417,447 (a)
Siemens AG 1,636 $825,785 (a)
Veba AG 22,850 906,804
3,648,986
Hong Kong - 5.0%
Consolidated
Electric Power 273,600 548,495 (a)
Giordano International 401,000 368,237
Hutchison Whampoa Ltd 124,000 671,987
Television Broadcasts
Ltd ADR 84,000 337,882
1,926,601
Indonesia - 0.5%
Astra International 93,000 184,727
Italy - 1.7%
Istituto Mobiliare
Italiano ADR 11,348 207,101
Sasib 24,749 64,463
Stet Savings 164,805 384,800
656,364
Japan - 19.7%
Canon Inc 39,000 696,886
DDI Corp 105 867,094
Ito Yokado Co 15,000 829,842
Murata Manufacturing Co 27,000 1,013,982
Nintendo Co 7,000 512,342
Nippondenso Co 33,000 609,661
Omron Corp 13,000 301,852
Rohm Co 12,000 758,367
Secom Co 13,000 866,185
Suzuki Motor Corp 83,000 896,573
Tokyo Steel Manufacturing 9,000 173,540
7,526,324
Malaysia - 1.5%
AMMB Holdings BHD 21,000 259,156
Telekom Malaysia 44,000 331,051
590,207
Mexico - 1.8%
Grupo Carso S.A(Series A) 53,000 310,690 (a)
Grupo Carso S.Ade C.VADR 20,626 239,777 (a,b)
Grupo Financiero Bancomer ADR
(Series C) 12,407 71,340 (a,b)
Grupo Televisa S.ADe C.VADR 3,167 63,340
685,147
Netherlands - 5.5%
IHC Caland N.V 12,818 362,932 (a)
International Nederlanden 11,998 696,678
Unilever N.V 2,365 307,321
Wolters Kluwer 7,850 720,773
2,087,704
5
<PAGE>
Number
of Shares Value
<S> <C> <C>
Norway - 0.9%
Petroleum Geo Services 14,195 $353,745 (a)
Portugal - 0.9%
Banco Comercial Portugues ADR 25,972 337,636
South Africa - 1.0%
Iscor 343,187 371,211
South Korea - 1.6%
Korea Electric Power 16,283 612,573 (a)
Spain - 1.9%
Banco Popular (Regd.) 2,296 356,974
Sevillana De Electricidad 59,150 383,743 (a)
740,717
Sweden - 4.7%
Astra AB 21,354 752,227
Autoliv AB 7,493 457,049 (a)
Electrolux AB 10,466 500,892
Linjebuss 7,870 78,398
1,788,566
Switzerland - 8.9%
BBC Brown Boveri 666 771,431
Nestle S.A(Regd.) 589 602,757
Roche Holdings AG 137 967,059
Schw Ruckversicher 1,091 1,066,462
3,407,709
Thailand - 1.3%
Siam Cement 5,000 294,879
Thai Farmers Bank 21,230 184,425
479,304
United Kingdom - 8.7%
BPB Industries 145,261 729,432
Medeva 142,926 587,151
Reed International 42,083 638,077
Takare 145,197 513,890
Thorn EMI 21,951 510,190
Waste Management
International PLC ADR 31,779 349,569 (a)
3,328,309
Total Common Stock
(Cost $33,586,793) 35,686,623
Principal
Amount Value
<S> <C> <C>
Convertible Bonds - 0.1%
Sasib
9.25%, 12/31/97
(Cost $44,314) ITL 65,000,000 $33,458
Total Investments in Securities
(Cost $33,631,107) 35,720,081
Short Term Investments - 5.5%
U.SGovernment Agencies - 0.8%
Federal National Mortgage Assoc.
6.30% 10/02/95 $300,000 299,948 (d)
Repurchase Agreement - 4.7%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $1,800,000) 1,800,000 1,800,000
(Dated 9/29/95, proceeds
$1,800,938, collateralized by
$1,837,350 United States Treasury
Note, 4.375%, 8/15/96)
Total Short Term Investments
(Cost $2,099,948) 2,099,948
Other Assets and Liabilities,
net 0.9% 353,625
NET ASSETS - 100% $38,173,654
</TABLE>
See Notes to Schedule of Investments and Financial Statements
[GRAPHIC]
ICONS REPRESENT THE TOP FIVE COUNTRY WEIGHTINGS IN THE
GE INTERNATIONAL EQUITY FUND AT SEPTEMBER 30, 1995.
6
<PAGE>
GE GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
GE Global Equity Fund
Top Ten Largest Holdings
at September 30, 1995
<S> <C>
Secom 2.36%
Total 2.34%
Roche Holdings AG 2.33%
Suzuki Motor Corp 2.21%
DDI Corp 2.19%
BBC Brown Boveri 2.18%
Allied Signal 2.16%
Rohm Co 2.07%
Nestle SA 2.00%
Ito Yokado Co 1.96%
</TABLE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
by investing primarily in equity securities of global companies.
<TABLE>
<CAPTION>
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Global Stock
<S> <C>
Number of Funds
in peer group: 184
Peer group average
total return: 10.27%
</TABLE>
* Lipper is an independent mutual fund rating service located in
Summit, New Jersey.
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
GE GLOBAL EQUITY FUND
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
Data for the Chart to follow:
<TABLE>
<CAPTION>
GLOBAL EQUITY GLOBAL EQUITY MSCI WORLD
12/22/95 w/ load
<S> <C> <C> <C>
Dec-93 10,000.00 10,000.00 10,000.00
10,586.35 10,083.50 10,656.79
10,378.46 9,885.48 10,516.76
Mar-94 9,989.33 9,514.83 10,060.53
10,047.96 9,570.68 10,369.50
10,127.92 9,646.85 10,393.89
Jun-94 9,872.06 9,403.14 10,362.27
10,186.57 9,702.70 10,557.41
10,522.39 10,022.57 10,872.71
Sep-94 10,309.17 9,819.49 10,584.52
10,474.42 9,976.88 10,883.55
10,031.99 9,555.47 10,409.25
Dec-94 9,771.67 9,307.51 10,507.72
9,497.95 9,046.80 10,346.91
9,629.34 9,171.95 10,495.08
Mar-95 9,979.69 9,505.66 10,999.19
10,428.59 9,933.23 11,379.53
10,581.87 10,079.23 11,474.39
Jun-95 10,795.37 10,282.59 11,468.06
11,337.33 10,798.81 12,039.03
10,926.76 10,407.74 11,768.90
Sep-95 11,047.19 10,522.45 12,108.59
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Global Equity 7.16% 5.86%
GE Global Equity
w/load 2.09% 2.94%
MSCI World 14.40% 11.55%
</TABLE>
Class B Shares
[GRAPHIC]
LINE CHART
Data for the Chart to follow:
<TABLE>
<CAPTION>
GLOBAL EQUITY GLOBAL EQUITY MSCI WORLD
12/22/93 w/ load
<S> <C> <C> <C>
12/22/93* 10,000.00 10,000.00 -
Dec-93 10,263.26 10,263.26 10,000.00
10,865.05 10,865.05 10,656.79
10,668.10 10,668.10 10,516.76
Mar-94 10,257.78 10,257.78 10,060.53
10,323.43 10,323.43 10,369.50
10,400.02 10,400.02 10,393.89
Jun-94 10,137.42 10,137.42 10,362.27
10,454.73 10,454.73 10,557.41
10,793.92 10,793.92 10,872.71
Sep-94 10,569.61 10,569.61 10,584.52
10,739.21 10,739.21 10,883.55
10,274.20 10,274.20 10,409.25
Dec-94 10,004.78 10,004.78 10,507.72
9,725.00 9,725.00 10,346.91
9,848.10 9,848.10 10,495.08
Mar-95 10,206.22 10,206.22 10,999.19
10,659.45 10,659.45 11,379.53
10,816.13 10,816.13 11,474.39
Jun-95 11,023.16 11,023.16 11,468.06
11,577.12 11,577.12 12,039.03
11,151.85 11,151.85 11,768.90
Sep-95 11,269.36 10,969.36 12,108.59
</TABLE>
*INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Global Equity 6.62% 6.98%
GE Global Equity w/load 2.62% 5.36%
MSCI World 14.40% 11.55%
</TABLE>
Class C Shares
[GRAPHIC]
LINE CHART
Data for the Chart to follow:
<TABLE>
<CAPTION>
GLOBAL EQUITY MSCI WORLD
12/22/93
<S> <C> <C>
2/22/93* 10,000.00 -
10,039.89 10,000.00
Mar-93 10,405.58 10,576.82
10,664.89 11,064.15
10,944.15 11,316.44
Jun-93 10,585.11 11,218.33
10,764.63 11,446.90
11,323.14 11,968.73
Sep-93 11,409.58 11,744.47
11,941.50 12,064.69
11,595.75 11,380.05
Dec-93 12,608.53 11,934.23
13,361.28 12,718.06
13,105.88 12,550.94
Mar-94 12,615.25 12,006.47
12,695.90 12,375.20
12,796.72 12,404.31
Jun-94 12,480.83 12,366.58
12,884.09 12,599.46
13,307.51 12,975.74
Sep-94 13,038.67 12,631.81
13,253.74 12,988.68
12,695.91 12,422.64
Dec-94 12,370.65 12,540.16
12,032.57 12,348.25
12,191.26 12,525.07
Mar-95 12,646.61 13,126.68
13,212.36 13,580.59
13,412.45 13,693.80
Jun-95 13,681.53 13,686.25
14,378.37 14,367.65
13,860.91 14,045.28
Sep-95 14,012.70 14,450.67
</TABLE>
*INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Global Equity 7.47% 13.86%
MSCI World 14.40% 15.27%
</TABLE>
Class D Shares
[GRAPHIC]
LINE CHART
Data for the Chart to follow:
<TABLE>
<CAPTION>
GLOBAL EQUITY MSCI WORLD
11/29/93
<S> <C> <C>
11/29/93* 10,000.00 -
9,971.41 10,000.00
Dec-93 10,855.63 10,486.97
11,497.26 11,175.75
11,283.39 11,028.90
Mar-94 10,861.41 10,550.45
10,936.56 10,874.47
11,029.05 10,900.05
Jun-94 10,757.37 10,866.89
11,098.41 11,071.53
11,468.36 11,402.18
Sep-94 11,242.92 11,099.95
11,427.89 11,413.55
10,948.11 10,916.15
Dec-94 10,670.15 11,019.42
10,384.66 10,850.78
10,527.41 11,006.16
Mar-95 10,919.95 11,534.82
11,407.66 11,933.68
11,586.09 12,033.16
Jun-95 11,824.00 12,026.53
12,424.72 12,625.30
11,978.64 12,342.02
Sep-95 12,115.44 12,698.25
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Global Equity 7.76% 10.99%
MSCI World 14.40% 13.94%
</TABLE>
7
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE GLOBAL EQUITY FUND
[GRAPHIC]
PIE CHART
Data for the Chart to follow:
<TABLE>
<CAPTION>
GE GLOBAL EQUITY
<S> <C>
Europe 42.0%
United States 21.8%
Japan 15.7%
Pacific Rim 11.2%
Cash & Other 5.4%
Other Regions 3.9%
100.0%
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value
<S> <C> <C>
Common Stock - 94.6%
Australia - 1.7%
Burns Philip & Co 293,925 $621,970
Austria - 3.7%
Creditanstalt Bankverein 4,692 234,425
Flughafen Wien AG 2,603 164,509
Omv AG 3,141 292,295
VA Technologie AG 5,618 646,930
1,338,159
Brazil - 0.4%
Ceval Alimentos S.A 8,704,000 133,514
Denmark - 1.6%
ISS (Series B) 9,282 244,483
Tele Danmark AS (Series B) 6,559 339,014
583,497
[GRAPHIC]
FRANCEOS FLAG
France - 8.5%
Banque Nationale Paris 7,722 302,639
Carrefour 1,103 647,308
Coflexip ADR 29,226 449,350
Technip 2,739 180,208
Total (Class B) 14,195 858,993
Valeo 14,152 666,146
3,104,644
Germany - 4.6%
Gehe AG 563 264,559
Gehe AG (new) 229 104,164 (a)
Sap AG 3,736 608,374
Veba AG 17,495 694,291
1,671,388
Hong Kong - 5.9%
Consolidated Electric Power 198,30 0397,539 (a)
Giordano International 622,000 571,181
Hutchison Whampoa Ltd 87,000 471,474
National Mutual Asia 291,000 223,942
Television Broadcasts LtdADR 123,000 494,755
2,158,891
Hungary - 0.5%
Danubius Hotel 19,514 186,404
Indonesia - 0.7%
Astra International 127,000 252,262
Italy - 2.4%
Imi 18,104 108,568
Istituto Mobiliare Italiano ADR 3,684 67,233
Stet Savings 35,153 106,821
Stet Savings 208,540 486,917
Stet Societa Finanziaria
Telefonica P.AADR 3,900 120,413
889,952
[GRAPHIC]
JAPANOS FLAG
Japan - 15.7%
Canon Inc 37,000 661,148
DDI Corp 97 801,030
Ito Yokado Co 13,000 719,196
Murata Manufacturing Co 17,000 638,433
Omron Corp 10,000 232,194
Rohm Co 12,000 758,367
Secom Co 13,000 866,185
Suzuki Motor Corp 75,000 810,156
Tokyo Steel Manufacturing 14,000 269,951
5,756,660
Malaysia - 1.5%
AMMB Holdings BHD 46,000 567,675
Mexico - 2.1%
Grupo Carso S.A(Series A) 30,062 176,225 (a)
Grupo Carso S.Ade C.VADR 28,013 325,651 (a,b)
Grupo Financiero
Bancomer ADR (Series C) 21,777 125,218 (a,b)
Grupo Televisa S.ADe C.VADR 8,0201 60,400
787,494
Netherlands - 1.0%
International Nederlanden 6,335 367,849
8
<PAGE>
Number
of Shares Value
<S> <C> <C>
Norway - 1.6%
Petroleum Geo Services 23,667 $589,791 (a)
South Africa - 1.4%
Iscor 482,283 521,666
South Korea - 0.8%
Korea Electric Power 8,147 306,494
Spain - 0.5%
Sevillana De Electricidad 27,037 175,406
Sweden - 3.3%
Astra AB 17,554 618,366
Autoliv AB 5,879 358,600
Electrolux AB 5,126 245,325
1,222,291
Switzerland - 7.4%
BBC Brown Boveri 691 800,388
Nestle S.A(Regd.) 716 732,723
Roche Holdings AG 121 854,118
Schw Ruckversicher 326 318,668
2,705,897
Thailand - 0.6%
Thai Farmers Bank 26,720 232,116
United Kingdom - 6.9%
BPB Industries 105,531 529,927
Medeva 154,386 634,229
Reed International 43,187 654,816
Takare 100,245 354,793
Thorn Emi 14,894 346,170
2,519,935
United States - 21.8%
Allied Signal Inc 17,946 791,867
Chrysler Corp 5,645 299,185
Colgate Palmolive Co 8,168 544,193
Countrywide Credit Industries 16,583 389,700
Ecolab Inc 20,478 565,705
First Financial Management Corp 6,326 617,576
Intel Corp 4,373 262,926
International Business Machines 2,527 238,486
International Paper Co 13,122 551,124
Morgan (J.P.) & CoInc 5,000 386,875
Motorola Inc 8,952 683,709
Sunrise Medical Inc 23,562 647,955 (a)
Toys 'R Us 19,142 516,834 (a)
Travelers Group, Inc 9,368 497,675
Number
of Shares Value
<S> <C> <C>
Ucar International Inc 4,719 $128,593
Wheelabrator Technologies Inc 43,808 651,644
Zebra Technologies Corp 3,900 207,675 (a)
7,981,722
Total Investments in Securities
(Cost $30,630,345) 34,675,677
Principal
Amount Value
Short Term Investments - 5.6%
U.SGovernment Agencies - 2.7%
Federal National Mortgage Assoc.
5.61% 10/04/95 $1,000,000 999,533 (d)
Repurchase Agreement - 2.9%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $1,050,000) 1,050,000 1,050,000
(dated 9/29/95, proceeds
$1,050,547, collateralized by
$1,072,615 United States
Treasury Note, 4.375%, 8/15/96)
Total Short Term Investments
(Cost $2,049,533) 2,049,533
Other Assets and Liabilities,
net (0.2%) (90,600)
NET ASSETS - 100% $36,634,610
</TABLE>
See Notes to Schedule of Investments and Financial Statements
9
<PAGE>
GE U.S. EQUITY FUND
Gene Bolton is responsible for the overall management of the U.Sequity
operation at GE Investments with total assets of over $18 billion. His
responsibilities include overseeing the portfolio management team of the
GE U.S. Equity Fund listed on page 56.
Gene joined GE in 1964. After completing GE's Financial Management
Program he held a number of financial and strategic planning positions in the
U.Sand Europe. Joining GE Investments in 1984 as Chief Financial Officer,
he moved to equities as a Portfolio Manager in 1986 and was named to his
present position in 1991.
Gene is a Trustee of the GE Pension Trust and GE's employee savings
program, as well as Chairman of the Asset Allocation Committee of GE
Investments. He also serves as a Trustee of the Investment Management
Workshop, sponsored by the Association for Investment Management and
Research.
Gene is a graduate of Mundelein College with a B.Ain Business
Management.
[GRAPHIC]
Photo of U.S. Equity Manager
Gene Bolton
MARKET OVERVIEW
The stock market has been very strong over the last twelve months, driven by
better than expected profit gains, declining interest rates and a steady flow
of money into mutual funds. Profits have risen to record levels, buoyed by
corporate cost cutting, declining interest costs and good revenue growth.
Despite this robust profit growth, inflation has remained in check providing
an almost ideal environment for the stock market. Leadership in the market
has come from the Technology sector, which has returned over 58% in the past
year, followed by Financial Services (42% return) and Consumer Staples (37%
return). Even the weakest performing sector, Basic Materials had a return
of 13%.
GE U.S. EQUITY FUND
For the fiscal year ended September 30, 1995 the domestic equity market as
measured by the S&P 500, returned 29.8%. The GE U.S. Equity Fund lagged
slightly behind the market due principally to a modest underweight in the
Technology sector, particularly in hardware, and our frictional cash level of
approximately 4%. We continue to be somewhat cautious about technology as
both valuations and expectations appear to be high. The Fund's performance
was helped by its longstanding overweight in the Financial sector which
benefited from declining interest rates and where we continue to find good
values. The large position in Travelers Group, Inc. was particularly helpful
as the company continued its aggressive restructuring and maintained strong
earnings momentum. Other financial stocks that contributed positively to the
Fund's performance include Federal National Mortgage Association, Citicorp,
and Countrywide Credit.
The Fund has been underweighted in the strong performing Consumer
Staple industry throughout the past year but has had good industry and stock
selection within the sector We have been overweighted in the pharmaceutical
industry which has been strong and our positions in SmithKline Beecham, Merck
and Pfizer have been particularly helpfulOur largest underweight in this
sector has been the Food industry which has under-performed the sector and
the overall market.
The other area where the Fund has a significant overweight is the
Capital Goods sector which has performed about in line with the market.
Within this sector our largest position has been in the Aerospace/ Defense
industry which has outperformed the sector and the marketOur two largest
holdings in this sector, McDonnell Douglas and Lockheed Martin, have both
performed well, driven by strong earnings gains as a result of restructuring.
In this environment we have been placing more emphasis on stocks
with steady earnings growth identified through our bottom-up research process
and we believe the Fund is well positioned for the year ahead.
10
<PAGE>
GE U.S. EQUITY FUND
<TABLE>
<CAPTION>
GE U.S. Equity Fund
Top Ten Largest Holdings
at September 30, 1995
<S> <C>
American Telephone & Telegraph 2.19%
International Business Machines 1.60%
Exxon Corp 1.44%
Royal Dutch Petroleum Corp 1.41%
Pepsico Inc 1.39%
Federal National Mortgage Assoc. 1.29%
Merck & CoInc 1.24%
Philip Morris Cos. Inc 1.20%
Travelers Group, Inc 1.13%
Hewlett Packard Co 1.09%
</TABLE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
by primarily investing in a diversified portfolio of growth and value stocks
of U.S. companies.
<TABLE>
<CAPTION>
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Growth and Income
<S> <C>
Number of Funds
in peer group: 417
Peer group average
total return: 23.66%
</TABLE>
*Lipper is an independent mutual fund rating service located in Summit,
New Jersey.
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
GE U.S. EQUITY
GE U.S. EQUITY GE U.S. EQUITY S&P 500
w/ load
<S> <C> <C> <C>
Dec-93 10,000.00 10,000.00 10,000.00
10,289.05 9,800.32 10,334.98
9,975.40 9,501.57 10,054.46
Mar-94 9,526.45 9,073.94 9,619.02
9,637.14 9,179.38 9,748.14
9,784.75 9,319.97 9,907.62
Jun-94 9,544.89 9,091.51 9,663.69
9,790.89 9,325.83 9,984.10
10,166.05 9,683.16 10,390.31
Sep-94 9,913.90 9,442.99 10,140.60
10,067.66 9,589.44 10,371.99
9,655.60 9,196.96 9,991.76
Dec-94 9,765.97 9,302.09 10,137.80
9,945.33 9,472.93 10,402.04
10,372.09 9,879.41 10,805.64
Mar-95 10,668.97 10,162.19 11,124.84
10,984.39 10,462.64 11,452.54
11,404.97 10,863.23 11,910.29
Jun-95 11,677.10 11,122.44 12,190.42
12,079.12 11,505.36 12,596.97
12,122.41 11,546.60 12,631.36
Sep-95 12,542.98 11,947.19 13,162.84
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE U.SEquity 26.52% 13.82%
GE U.S. Equity w/load 20.54% 10.70%
S&P 500 29.77% 17.00%
</TABLE>
Class B Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
GE U.S. EQUITY GE U.S. EQUITY S&P 500
w/ load
<S> <C> <C> <C>
12/22/93* 10,000.00 10,000.00 -
Dec-93 10,133.91 10,133.91 10,000.00
10,420.60 10,420.60 10,334.98
10,102.75 10,102.75 10,054.46
Mar-94 9,647.78 9,647.78 9,619.02
9,753.73 9,753.73 9,748.14
9,884.62 9,884.62 9,907.62
Jun-94 9,641.56 9,641.56 9,663.69
9,884.62 9,884.62 9,984.10
10,258.57 10,258.57 10,390.31
Sep-94 9,990.57 9,990.57 10,140.60
10,140.15 10,140.15 10,371.99
9,728.80 9,728.80 9,991.76
Dec-94 9,835.35 9,835.35 10,137.80
10,007.68 10,007.68 10,402.04
10,435.31 10,435.31 10,805.64
Mar-95 10,728.90 10,728.90 11,124.84
11,041.64 11,041.64 11,452.54
11,456.50 11,456.50 11,910.29
Jun-95 11,724.56 11,724.56 12,190.42
12,126.65 12,126.65 12,596.97
12,164.95 12,164.95 12,631.36
Sep-95 12,579.81 12,279.81 13,162.84
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE U.S. Equity 25.92% 13.84%
GE U.S. Equity w/load 21.92% 12.26%
S&P 500 29.77% 17.00%
</TABLE>
Class C Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
U.S. EQUITY S&P 500
12/22/93
<S> <C> <C>
2/22/93* 10,000.00 -
10,182.19 10,000.00
Mar-93 10,519.58 10,216.34
10,371.12 9,965.64
10,674.77 10,233.05
Jun-93 10,681.52 10,266.49
10,647.77 10,218.65
11,093.12 10,606.96
Sep-93 11,032.38 10,528.86
11,180.83 10,744.70
Dec-93 11,018.89 10,647.03
Dec-93 11,218.84 10,779.00
11,550.02 11,140.08
11,198.14 10,837.70
Mar-94 10,701.37 10,368.34
10,825.55 10,507.53
10,977.35 10,679.43
Jun-94 10,715.17 10,416.49
10,991.16 10,761.86
11,412.04 11,199.72
Nov-94 11,129.16 10,930.56
11,308.55 11,179.97
10,846.27 10,770.12
Dec-94 10,973.84 10,927.54
11,171.70 11,212.36
11,659.27 11,647.40
Mar-95 11,991.38 11,991.47
12,351.76 12,344.69
12,825.20 12,838.11
Jun-95 13,136.11 13,140.06
13,595.41 13,578.28
13,644.87 13,615.35
Sep-95 14,118.31 14,188.23
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE U.S. Equity 26.86% 14.18%
S&P 500 29.77% 14.46%
</TABLE>
Class D Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
GE U.S. EQUITY S&P 500
29-Nov-93
<S> <C> <C>
11/29/93* 10,000.00 -
9,975.56 10,000.00
Dec-93 10,158.53 10,123.95
10,458.41 10,463.08
10,146.03 10,179.08
Mar-94 9,696.21 9,738.25
9,808.66 9,868.97
9,946.11 10,030.43
Jun-94 9,714.95 9,783.47
9,964.86 10,107.85
10,352.21 10,519.10
Sep-94 10,096.06 10,266.29
10,258.49 10,500.55
9,846.15 10,115.61
Dec-94 9,964.02 10,263.46
10,143.90 10,530.98
10,587.18 10,939.58
Mar-95 10,889.12 11,262.74
11,216.76 11,594.49
11,653.61 12,057.92
Jun-95 11,936.28 12,341.52
12,353.86 12,753.11
12,405.25 12,787.93
Sep-95 12,835.67 13,326.00
</TABLE>
* INCEPTION DATE
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE U.SEquity 27.14% 14.53%
S&P 500 29.77% 16.99%
</TABLE>
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
11
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE U.S. EQUITY FUND
[GRAPHIC]
PIE CHART
DATA FOR PIE CHART
<TABLE>
<CAPTION>
GE U.S. EQUITY
<S> <C>
Consumer 29.9%
Financial Services 14.9%
Energy & Basic Materials 14.8%
Capital Goods 13.6%
Technology 9.3%
Utilities 8.9%
Cash & Other 6.9%
Transportation 2.4%
100.0%
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value
<S> <C> <C>
Common Stock - 90.5%
Aerospace - 3.3%
Boeing Co 8,820 $601,965
General Dynamics Corp 579 31,773
General Motors Corp(Class H) 8,718 357,438
Lockheed Martin Corp 17,228 1,156,429
McDonnell Douglas Corp 13,569 1,122,835
Raytheon Co 7,054 599,590
Rockwell International Corp 7,236 341,901
TRW Inc 2,688 199,920
United Technologies Corp 14,607 1,290,894
5,702,745
Automotive - 1.7%
Chrysler Corp 5,168 273,904
Eaton Corp 3,186 168,858
Ford Motor Co 18,022 560,935
General Motors Corp 28,473 1,334,672
Goodyear Tire & Rubber Co 8,683 341,893
Stewart & Stevenson Services Inc 5,678 183,115
2,863,377
[GRAPHIC]
Icon for Dollar
Banks & Financial Services - 9.2%
American Express Co 20,528 910,930
Bank of New York Inc 7,814 363,351
BankAmerica Corp 9,791 586,236
Banque Nationale Paris 16 627
Barnett Banks Inc 5,029 284,767
BayBanks Inc 2,172 164,801
Beneficial Corp 22,169 1,158,330
Block H & R Inc 905 34,390
Boatmen's Bancshares Inc 11,002 407,074
Capital One Financial Corp 4,051 118,998
Chemical Banking Corp 11,070 673,886
Citicorp 18,290 1,294,017
Countrywide Credit Industries 8,944 210,184
Crestar Financial Corp 3,488 194,892
Dean Witter Discover & Co 14,188 798,075
Edwards A G Inc 5,170 137,651
Equitable CosInc(Series B) 6,920 169,540
Federal National Mortgage Assoc 21,312 2,205,792
First Bank Systems Inc 3,893 187,351
First Chicago Corp 1,448 99,369
First Fidelity Bancorp 2,024 136,620
First Interstate Bancorp 3,331 335,598
Mellon Bank Corp 4,061 181,222
Morgan (J.P.) & CoInc 8,615 666,586
Nationsbank Corp 7,374 495,902
PNC Bank Corp 4,344 121,089
Rollins Inc 2,462 60,319
Signet Banking Corp 5,790 151,988
Standard Federal Bancorporation 2,196 85,644
State Street Boston Corp 5,934 237,360
TRowe Price & Associates 2,843 145,704
Time Warner Financing Trust 1,763 57,298
Transamerica Corp 11,392 811,680
Travelers Group, Inc 36,415 1,934,547
United States Bancorp 374 10,612
Wells Fargo & Co 1,498 278,066
15,710,496
Broadcasting, Entertainment & Media - 3.3%
Capital Cities/ABC Inc 3,675 432,272
Carmike Cinemas Inc 516 11,352 (a)
Carnival Corp(Class A) 6,339 152,136
Catalina Marketing Corp 1,059 65,658 (a)
CBS Inc 869 69,411
Comcast Corp(Class A) 29,512 590,240
Disney (Walt) Co 2,896 166,158
Donnelley (R.R.) & Sons Co 10,029 391,131
Dun & Bradstreet Corp 7,977 461,669
Gannett Inc 11,294 616,935
Harrahs Entertainment Inc 3,868 113,139 (a)
Interpublic Group CosInc 7,615 302,696
Multimedia Inc 2,326 101,181 (a)
Readers Digest Association Inc 725 34,166
Reuters Holdings PLC ADR (Class B) 10,984 580,779
Tele-Communications Inc 6,731 180,054 (a)
Tele-Communications Inc(Class A) 20,803 364,053 (a)
Television Broadcasts LtdADR 17,000 68,381
Time Warner Inc 15,207 604,478
Times Mirror Company 4,344 124,890
Viacom Inc(Class A) 332 16,517(a)
Viacom Inc(Class B) 4,531 225,417 (a)
5,672,713
Building Materials & Construction - 0.3%
Masco Corp 3,258 89,595
Sherwin Williams Co 2,326 81,410
Stanley Works 7,578 328,696
499,701
Chemical - 3.2%
Air Products & Chemicals Inc 11,910 620,809
Airgas Inc 870 23,164 (a)
Cabot Corp 5,945 315,828
Du Pont de Nemours (E.I.) 23,477 1,614,044
Eastman Chemical Co 5,068 324,352
12
<PAGE>
Ferro Corp 868 21,592
FMC Corp 1,303 99,028 (a)
Grace (WR) & Co 7,239 483,203
Hercules Inc 5,170 299,860
IMC Global Inc 3,185 201,849
Lubrizol Corp 8,946 291,863
Minerals Technologies Inc 5,191 195,311
Monsanto Co 1,303 131,277
Morton International Inc 11,437 354,547
Unifi Inc 2,894 70,903
Witco Corp 9,916 348,300
5,395,930
[GRAPHIC]
Icon for Sale Sign
Consumer Related - 10.6%
American Brands Inc 4,343 183,492
American Stores Co 18,868 535,379
Anheuser Busch CosInc 15,651 976,231
Armstrong World
Industries Inc 8,292 460,206
Coca Cola Co 3,412 235,428
Colgate Palmolive Co 10,950 729,544
Conagra Inc 6,215 246,269
CPC International Inc 7,393 487,938
Darden Restaurants Inc 2,027 23,311
Dole Food Inc 9,865 341,576
Duracell International Inc 983 44,112
Eastman Kodak Co 27,875 1,651,594
Fruit of the Loom Inc 941 19,408 (a)
General Mills Inc 10,237 570,713
Harman International
Industries Inc 5,427 265,923
Host Marriott Corp 7,672 94,941 (a)
Kellogg Co 2,822 204,242
Kroger Co 5,790 197,584 (a)
Marriot International Inc 4,131 154,396
McDonalds Corp 27,070 1,035,427
Nestle S.A(Regd.) 560 573,080
Nike Inc 1,711 190,135
Nine West Group Inc 4,843 220,356 (a)
Penney J C Inc 5,501 272,987
Pepsico Inc 46,484 2,370,686
Philip Morris CosInc 24,488 2,044,748
Procter & Gamble Co 20,025 1,541,925
Promus Hotel Corp 1,933 43,976 (a)
Ralston Purina Co 2,201 127,383
Rubbermaid Inc 2,544 70,278
Sara Lee Corp 9,743 289,854
Scholastic Corp 783 49,133 (a)
Stanhome Inc 6,224 197,612
Sysco Corp 5,790 157,777
Tambrands Inc 1,948 85,469
Timken Co 3,766 160,526
Tommy Hilfiger Corp 2,894 94,055 (a)
Tyson Foods Inc 3,041 81,727
Wal Mart Stores Inc 43,428 1,080,271
18,109,692
Diversified Manufacturing - 5.0%
Alco Standard Corp 3,115 263,996
Allied Signal Inc 41,916 1,849,543
Canadian Pacific Ltd 29,280 468,480
Dover Corp 13,609 520,544
Hanson PLC ADR 21,580 350,675
ITT Corp 7,277 902,348
Loews Corp 5,894 857,577
Minnesota Mining
& Manufacturing 19,700 1,113,050
Nokia CorpADR 3,360 234,360
Teleflex Inc 1,736 70,308
Tenneco Inc 10,571 488,909
Textron Inc 12,959 884,452
Trinova Corp 3,297 111,274
Tyco International Ltd 5,493 346,059
United States Industries Inc 579 8,975 (a)
8,470,550
[GRAPHIC]
Icon for Chemistry
Drugs, Healthcare & Cosmetics - 9.4%
Abbott Laboratories 37,083 1,580,663
Allergan Inc 17,512 584,463
American Home Products
Corp 11,469 973,431
American Medical Response 2,231 63,305 (a)
Arbor Drugs Inc 4,537 85,069
Arrow International Inc 3,620 156,565
Avon Products Inc 5,261 377,477
Baxter International Inc 16,440 676,095
Bergen Brunswig Corp 1,291 27,595
Bristol-Myers Squibb Co 18,158 1,323,264
Cardinal Health Inc 1,332 73,759
Columbia HCA
Healthcare Corp 4,183 203,398
Dentsply International Inc 1,735 59,857
Eli Lilly & Co 10,018 900,368
FHP International Corp 9,626 232,227 (a)
Fisher Scientific
International Inc 4,424 143,227
Gillette Co 1,653 78,724
Health Care &
Retirement Corp 1,606 51,593 (a)
International Flavours 646 31,170
Johnson & Johnson 24,954 1,849,715
Lincare Holdings Inc 1,389 35,767 (a)
Living Centers Of
America Inc 1,794 59,651 (a)
Manor Care Inc 536 18,224
Merck & CoInc 37,824 2,118,144
Pfizer Inc 20,645 1,101,927
Schering Plough Corp 13,961 718,991
Smithkline Beecham PLC ADR 23,679 1,198,749
Tenet Healthcare Corp 5,107 88,734 (a)
Teva Pharmaceutical
Inds Ltd ADR 5,537 200,024
United Healthcare Corp 3,377 165,051
Upjohn Co 14,315 638,807
Warner Lambert Co 3,039 289,465
16,105,499
[GRAPHIC]
Icon for Electric
Electrical & Electronics - 8.1%
ADT Ltd 23,262 319,852 (a)
Airtouch Communications 26,685 817,228 (a)
AMP Inc 20,111 774,273
Amphenol Corp(Class A) 6,443 139,330 (a)
Anixter International Inc 4,756 196,780 (a)
Applied Materials Inc 8,666 886,098 (a)
Arrow Electronics Inc 3,877 210,812 (a)
Avx Corp 3,718 124,553 (a)
BBC Brown Boveri 461 533,978
EG & G Inc 1,158 22,581
Emerson Electric Co 22,508 1,609,322
General Instrument Corp 1,593 47,790 (a)
13
<PAGE>
General Signal Corp 6,946 203,171
Hewlett Packard Co 22,431 1,870,185
Hubbell Inc(Class B) 11,645 682,688
Intel Corp 9,201 553,210
Loral Corp 4,498 256,386
Micron Technology Inc 4,652 369,834
Molex Inc(Class A) 9,469 317,203
Motorola Inc 14,981 1,144,174
Northern Telecom Ltd 5,790 206,269
Octel Communications Corp 3,763 131,235 (a)
Perkin Elmer Corp 10,185 362,841
Philips Electronics N.V 15,851 772,736
Sundstrand Corp 2,027 131,248
Texas Instruments Inc 3,620 289,148
Thermo Electron Corp 5,449 252,697 (a)
Ucar International Inc 3,549 96,710 (a)
Varian Associates Inc 7,383 391,299
Vishay Intertechnology Inc 3,733 156,786 (a)
VLSI Technology Inc 1,008 34,524 (a)
13,904,941
Electric Utilities - 2.3%
Central & South West Corp 5,427 138,389
CMS Energy Corp 11,411 299,539
Dominion Resources Inc 2,896 108,962
Houston Industries Inc 8,108 357,765
Illinova Corp 4,523 122,686
NIPSCO Industries Inc 10,643 371,175
Pacific Gas & Electric Co 6,948 207,571
Pacificorp 7,238 137,522
Pinnacle West Capital Corp 17,981 472,001
Portland General Corp 4,922 126,126
Public Service CoColorado 4,631 158,612
Public Service CoNew Mexico 12,923 211,614 (a)
Southern Co 27,190 642,364
Unicom Corp 16,788 507,837
3,862,163
Energy & Energy Related - 8.8%
Amerada Hess Corp 1,883 91,561
Amoco Corp 14,593 935,776
Anadarko Petroleum Co 8,807 417,232
Apache Corp 5,387 141,409
Ashland Oil Inc 3,805 126,992
Atlantic Richfield Co 4,213 452,371
Baker Hughes Inc 9,409 191,708
Burlington Resources Inc 21,210 821,887
Chevron Corp 13,375 650,359
Dresser Industries Inc 11,291 269,573
Eastern Enterprises 5,428 174,375
Elf Aquitaine ADR 6,060 203,768
Exxon Corp 33,978 2,454,910
FPL Group Inc 6,740 275,497
Gulf Canada Resources Ltd 15,925 67,681 (a)
Mobil Corp 10,532 1,049,250
Nabors Industries Inc 14,216 134,164 (a)
Occidental Petroleum Corp 13,691 301,202
Phillips Petroleum Co 8,926 290,095
Royal Dutch Petroleum Co 19,666 2,414,001
Santa Fe Energy
Resources Inc 12,923 122,769 (a)
Schlumberger Ltd 21,275 1,388,194
Texaco Inc 15,621 1,009,507
Unocal Corp 20,175 574,987
USX Marathon Group 25,321 500,090
15,059,358
Forest Products, Paper & Packaging - 1.8%
Avery Dennison Corp 1,014 42,588
Champion International
Corp 5,117 275,678
Georgia Pacific Corp 1,449 126,788
International Paper Co 3,360 141,120
Kimberly Clark Corp 3,360 225,540
Mead Corp 13,894 814,536
Owens Illinois Inc 19,386 244,748 (a)
Rayonier Inc 285 11,151
Scott Paper Co 8,930 433,105
Temple Inland Inc 2,676 142,497
Weyerhaeuser Co 13,244 604,257
3,062,008
Industrial Products & Services - 0.8%
Browning-Ferris Industries
Inc 5,789 175,841
Ecolab Inc 4,900 135,363
Flightsafety
International Inc 1,164 53,399
Waste Management
International PLC ADR 3,619 39,809 (a)
Wheelabrator Technologies
Inc 6,949 103,366
WMX Technologies Inc 30,815 878,227
1,386,005
Insurance - 4.5%
Aetna Life &
Casualty Co 2,843 208,605
Alexander & Alexander
Services 4,051 98,237
Allstate Corp 4,047 143,163
American General Corp 3,389 126,664
American International
Group Inc 18,361 1,560,685
Chubb Corp 2,038 195,648
CMAC Investment Corp 2,891 152,139
Exel Ltd 1,549 90,036
General Reinsurance Corp 5,975 902,225
Life Partners Group Inc 3,360 57,960
Lincoln National Corp 13,114 617,997
Marsh & McLennan Cos 6,859 602,735
Providian Corp 17,096 709,484
Reliastar Financial Corp 7,795 316,672
StPaul CosInc 19,716 1,150,921
TIG Holdings Inc 24,813 666,849
UNUM Corp 2,896 152,764
7,752,784
Machinery & Machine Tool - 1.3%
Briggs & Stratton Corp 3,474 139,829
Case Corp 4,633 170,263
Caterpillar Inc 7,966 453,066
Cooper Industries Inc 2,896 102,084
Deere & Co 9,632 783,804
Ingersoll Rand Co 8,107 304,012
Kennametal Inc 6,875 249,219
2,202,277
14
<PAGE>
Merchandising - 2.9%
American Greetings Corp
(Class A) 14,001 427,030
Baker JInc 1,164 9,458
Barnes & Noble Inc 4,864 186,048 (a)
Charming Shoppes Inc 21,443 96,494
Circuit City Stores Inc 9,555 302,177
CUC International Inc 6,666 232,477 (a)
Dayton Hudson Corp 3,876 294,091
Federated Department
Stores Inc 27,847 790,159(a)
Harcourt General Inc 3,649 152,802
Hasbro Inc 5,616 174,798
Home Depot Inc 10,004 398,909
Limited Inc 3,329 63,251
May Department
Stores Co 2,128 93,100
Nordstrom Inc 4,187 174,807
Sears Roebuck & Co 30,848 1,137,520
TJX CosInc 5,645 67,034
Toys 'R Us 13,102 353,754 (a)
4,953,909
Metals - 0.7%
Aluminum Company
of America 1,295 68,473
Barrick Gold Corp 9,563 247,443
Birmingham Steel Corp 10,662 186,585
Freeport McMoran Copper &
Gold (Class A) 6,079 155,774
Inco Ltd 6,285 215,261
Nucor Corp 2,895 129,551
Reynolds Metals Co 3,541 204,493
1,207,580
Natural Gas - 0.5%
Consolidated Natural
Gas Co 3,473 140,222
Enserch Corp 23,718 391,347
Petroleum Geo
Services ADR 2,519 61,716 (a)
Sonat Inc 4,335 138,720
Tosco Corp 2,519 86,905
818,910
Office Equipment & Supplies - 4.7%
Amdahl Corp 8,685 83,593 (a)
Apple Computer 7,004 260,899
Autodesk Inc 2,843 124,381
Automatic Data
Processing Inc 12,057 821,383
Cisco Systems Inc 3,329 229,701 (a)
Compaq Computer Corp 8,075 390,628 (a)
Computer Associates
International Inc 8,613 363,899
Dell Computer Corp 726 61,710 (a)
Equifax Inc 12,925 541,235
First Financial
Management Corp 7,963 777,388
General Motors Corp
(Class E) 3,360 152,880
Informix Corp 7,752 251,940 (a)
International Business
Machines 28,979 2,734,893
Microsoft Corp 2,112 191,136 (a)
Office Max Inc 7,755 188,059 (a)
Pitney Bowes Inc 9,875 414,750
Silicon Graphics Inc 4,395 151,078 (a)
Tech Data Corp 3,185 44,988 (a)
Teradyne Inc 8,104 291,744 (a)
8,076,285
Real Estate - 0.4%
Camden Property Trust 3,257 72,061
Charles E Smith Residential
Realty Inc 2,609 60,333
Debartolo Realty Corp 9,105 127,470
Evans Withycombe
Residential 2,316 46,899
Glimcher Realty Trust 10,801 220,070
Liberty Property 3,908 83,045
Manufactured Home
Communities Inc 2,700 46,575
Oasis Residential Inc 2,762 62,145
Summit Properties Inc 1,594 30,087
748,685
Telephone & Utilities - 5.6%
Alltel Corp 4,055 121,143
American Telephone &
Telegraph 57,035 3,750,051
Bellsouth Corp 8,829 645,621
Frontier Corp 8,687 231,291
GTE Corp 43,138 1,693,166
International
Cabletel Inc 8,031 224,868 (a)
MCI Communications Corp 17,514 456,459
NYNEX Corp 9,725 464,369
Pacific Telesis Group 11,633 357,715
SBC Communications Inc 12,541 689,755
Sprint Corp 10,949 383,215
U.SWest Inc 13,536 637,884
9,655,537
Transportation - 2.1%
AMR Corp 2,172 156,656
Burlington Northern
Santa Fe 9,555 692,738
Consolidated
Freightways Inc 2,895 71,651
CSX Corp 4,498 378,394
Illinois Central Corp 3,562 139,363
Kansas City Southern
Industries 10,245 466,148
Kirby Corp 6,803 105,447 (a)
Pittston Services Group 1,738 47,143
Ryder Systems Inc 5,170 131,189
Southern Pacific Rail Corp 721 17,484 (a)
Union Pacific Corp 18,081 1,197,866
Xtra Corp 3,702 164,276
3,568,355
Total Common Stock
(Cost $126,676,329) 154,789,500
Principal
Amount Value
<S> <C> <C>
Bonds and Notes - 0.3%
Banco Nacional de Mexico SA
7.00% 12/15/99 $269,000 213,855 (b)
Cemex
4.25% 11/01/97 169,000 139,425 (b)
15
<PAGE>
Valhi Inc.
9.25% 10/20/07 $197,000 $72,890 (d)
Total Bonds and Notes
(Cost $510,440) 426,170
Convertible Bonds - 0.5%
ADT Operations Inc.
6.493% 07/06/10 264,000 114,510
AMR Corporation
6.125% 11/01/24 548,000 557,590
Federated Department Stores Inc.
5.00% 10/01/03 125,000 128,125
Total Convertible Bonds
(Cost $751,754) 800,225
Number
of Shares Value
<S> <C> <C>
Convertible Preferred Stock - 1.8%
Bowater Inc., 7.00% 6,429 252,338
Citicorp, 5.375% 573 110,947
Conagra Inc(Series E), 1.687% 4,811 193,643
Ford Motor Co(Series A), 4.20% 4,568 467,649
Kaufman & Broad Home Corp.
(Series B), 1.52% 4,164 54,653
Magma Copper Co.
(Series D), 5.625% 1,564 103,615
Magma Copper Co.
(Series E), 6.00% 2,792 193,346
National City Corp., 8.00% 2,339 173,086
Newmont Mining, 2.75% 4,781 279,688 (b)
Occidental Petroleum Corp.,
3.875% 8,044 454,486 (b)
Reynolds Metals Co., 7.00% 5,571 288,299
Santa Fe Energy Resources Inc.
(Series A), 8.25% 7,331 139,289
StPaul Capital LLC, 6.00% 1,019 59,611
Unocal Corp., 7.00% 3,877 208,389 (b)
Westinghouse Electric Corp.
(Series C), 1.30% 11,868 178,020 (b)
Total Convertible Preferred Stock
(Cost $2,927,969) 3,157,059
Expiration Number
Date/ of
Strike Price Contacts Value
<S> <C> <C> <C>
Put Options Purchased - 0.0%
International Business
Machines Oct95/100 21 12,600
(Cost $5,449)
Total Investments in Securities
(Cost $130,871,941) 159,185,554
Principal
Amount Value
<S> <C> <C>
Short Term Investments - 6.7%
U.SGovernment Agencies and Time Deposits - 2.1%
Federal National Mortgage Assoc.
5.61% 10/04/95 $1,000,000 $ 999,532 (d)
6.30% 10/02/95 2,000,000 1,999,650 (d)
State Street Cayman Islands
6.50% 10/02/95 485,000 485,000
3,484,182
Repurchase Agreement - 4.6%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $7,900,000) 7,900,000 7,900,000
(dated 9/29/95, proceeds
$7,904,115, collateralized by
$8,059,510 United States Treasury
Note, 4.375%, 8/15/96)
Total Short Term Investments
(Cost $11,384,182) 11,384,182
Expiration Number
Date/ of
Strike Price Contracts Value
Call Options Written - 0.0%
Coca Cola Co Nov95/60 16 (15,000)
Disney (Walt) Co Jan96/60 3 (600)
Total Call Options Written
(Premium received $11,280) (15,600)
Other Assets and Liabilities,
net 0.2% 411,350
NET ASSETS - 100% $170,965,486
Other Information
The GE U.SEquity Fund had the following long futures
contracts open at September 30, 1995:
Number
Expiration of Underlying Unrealized
Description Date Contracts Face Value Loss
S&P 500 Dec 1995 18 $5,293,800 $1,050
</TABLE>
See Notes to Schedule of Investments and Financial Statements
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE U.SEQUITY FUND AT SEPTEMBER 30, 1995.
16
<PAGE>
GE STRATEGIC INVESTMENT FUND
David Carlson manages pension and mutual fund portfolios with total assets of
nearly $2 billion. His responsibilities include managing the Elfun Trusts and
the U.S. equity portion of Elfun Diversified and the GE Strategic
Investment Funds Dave also manages a portfolio for the GE Pension Trust.
Dave joined GE in 1980 on the Financial Management Program. In 1982,
he joined GE Investments as a Security Analyst responsible for several
consumer industries. In 1988, Dave assumed responsibility for managing Elfun
Trusts.
He is a Trustee for the GE Canada Pension Trust, a Chartered
Financial Analyst (CFA) and a member of the New York Society of Security
Analysts.
Dave is a graduate of Indiana University with a B.S. in Business.
Dave shares portfolio management responsibility for the GE Strategic
Investment Fund with Bob MacDougall, who manages the fixed income portion of
the Fund's portfolioPlease refer to page 28 for Bob's biographical details.
[GRAPHIC]
Photo of: David Carlson
MARKET OVERVIEW
With the GE Strategic Investment Fund's holdings in multiple asset classes,
we recommend investors read the narratives for the GE U.SEquity Fund, the
GE Fixed Income Fund and the GE International Equity Fund for a more complete
description of trends and outlooks in those markets.
GE STRATEGIC INVESTMENT FUND
With the help of strong financial markets, the GE Strategic Investment Fund
posted strong results for the year ended September 30,1995.
U.S. stocks, as measured by the S&P 500, were the best performing
asset class rising nearly 30% in the last yearWe reduced the U.Sequity
weighting during the year from 52% to 43% as the run-up has resulted in
historically high valuation levels.
<TABLE>
<CAPTION>
The overall change in asset mix over the year is shown below:
<S> <C> <C>
Asset Class 9/94 9/95
U.S. Equity 52% 43%
Int'l Equities 12 14
Fixed Income 31 29
Cash 5 14
</TABLE>
With a lower weighting in equities and a higher weighting in cash, the
portfolio has a more defensive profile than it did a year ago U.S. equities
have strongly outperformed international equities, and as a result, look
less attractive valuation-wise. We recently made a slight increase in our
international equity weighting.
Within the U.Sequity portion of the portfolio, the emphasis
remains on growth stocks. Relative to the S&P 500, the sectors with the
largest weightings are financial, consumer, and technology, and the sectors
with the lowest weightings are utilities and basic materials. With our
expectation of slower economic growth, we seek companies which we believe can
post strong earnings growth regardless of the economic environment.
As always, we remain committed to our challenge of evaluating the
relative attractiveness of each asset class, and positioning the Fund to take
advantage of the opportunities present.
17
<PAGE>
GE STRATEGIC INVESTMENT FUND
<TABLE>
<CAPTION>
GE Strategic Investment Fund
Top Ten Largest Holdings
at September 30, 1995
<S> <C>
U.S. Treasury Bond, 7.625%, 2/15/25 1.90%
SPDR Trust 1.77%
Federal National Mortgage Assoc. 1.57%
U.S. Treasury Notes, 6.75%, 4/30/00 1.52%
Philip Morris CosInc 1.36%
Reuters Holdings PLC 1.32%
Pfizer Inc 1.27%
Travelers Group, Inc 1.27%
First Financial Management Corp. 1.25%
U.S. Treasury Notes, 6.875%, 3/31/00 1.23%
</TABLE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek to maximize total return through
capital appreciation primarily from common stocks and other equity securities
and current income from bonds and other fixed income securities.
Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Balanced
Number of Funds
in category: 191
Peer group average
total return: 18.99%
*Lipper is an independent mutual fund rating service located
in Summit, New Jersey.
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
GE STRATEGIC INVESTMENT FUND
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
Data for Chart to follow:
<TABLE>
<CAPTION>
STRATEGIC STRATEGIC S&P 500 LB AGGR.
1/1/94 w/ load
<S> <C> <C> <C> <C>
Dec-93 10,000.00 10,000.00 10,000.00 10,000.00
10,238.69 9,752.35 10,334.98 10,135.00
9,962.31 9,489.10 10,054.46 9,958.65
Mar-94 9,579.14 9,124.13 9,619.02 9,712.67
9,629.39 9,171.99 9,748.14 9,634.97
9,755.01 9,291.65 9,907.62 9,634.01
Jun-94 9,591.70 9,136.09 9,663.69 9,612.81
9,817.83 9,351.48 9,984.10 9,804.11
10,075.37 9,596.79 10,390.31 9,815.87
Sep-94 9,868.08 9,399.35 10,140.60 9,671.58
9,987.42 9,513.02 10,371.99 9,662.87
9,780.14 9,315.58 9,991.76 9,641.62
Dec-94 9,820.91 9,354.42 10,137.80 9,708.14
10,000.99 9,525.95 10,402.04 9,900.36
10,296.84 9,807.74 10,805.64 10,135.99
Mar-95 10,509.08 10,009.90 11,124.84 10,197.82
10,727.76 10,218.19 11,452.54 10,340.59
11,075.06 10,548.99 11,910.29 10,740.77
Jun-95 11,274.43 10,738.89 12,190.42 10,819.18
11,525.26 10,977.81 12,596.97 10,795.38
11,557.42 11,008.44 12,631.36 10,926.00
Sep-95 11,853.26 11,290.23 13,162.84 11,031.99
</TABLE>
<TABLE>
<CAPTION>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Strategic 20.12% 10.20%
GE Strategic w/load 14.44% 7.19%
S&P 500 29.77% 17.00%
LB Aggregate 14.06% 5.77%
Class B Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART TO FOLLOW:
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC STRATEGIC S&P 500 LB AGGR.
12/22/93 w/ load
<S> <C> <C> <C> <C>
12/22/93* 10,000.00 10,000.00 - -
Dec-93 10,070.87 10,070.87 10,000.00 10,000.00
10,311.10 10,311.10 10,334.98 10,135.00
10,032.94 10,032.94 10,054.46 9,958.65
Mar-94 9,640.98 9,640.98 9,619.02 9,712.67
9,697.88 9,697.88 9,748.14 9,634.97
9,780.07 9,780.07 9,907.62 9,634.01
Jun-94 9,609.38 9,609.38 9,663.69 9,612.81
9,836.97 9,836.97 9,984.10 9,804.11
10,089.85 10,089.85 10,390.31 9,815.87
Sep-94 9,874.90 9,874.90 10,140.60 9,671.58
9,988.70 9,988.70 10,371.99 9,662.87
9,780.08 9,780.08 9,991.76 9,641.62
Dec-94 9,819.38 9,819.38 10,137.80 9,708.14
9,993.92 9,993.92 10,402.04 9,900.36
10,284.82 10,284.82 10,805.64 10,135.99
Mar-95 10,491.68 10,491.68 11,124.84 10,197.82
10,705.00 10,705.00 11,452.54 10,340.59
11,047.62 11,047.62 11,910.29 10,740.77
Jun-95 11,241.55 11,241.55 12,190.42 10,819.18
11,487.20 11,487.20 12,596.97 10,795.38
11,513.05 11,513.05 12,631.36 10,926.00
Sep-95 11,803.95 11,503.95 13,162.84 11,031.99
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
[S] [C] [C]
GE Strategic 19.53% 9.82%
GE Strategic w/load 15.53% 8.21%
S&P 500 29.77% 17.00%
LB Aggregate 14.06% 5.77%
Class C Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART TO FOLLOW:
<TABLE>
<CAPTION>
STRATEGIC S&P 500 LB AGGR.
12/22/93
<S> <C> <C> <C>
2/22/93* 10,000.00 - -
10,141.13 10,000.00 10,000.00
Mar-93 10,309.14 10,216.34 10,042.00
10,228.49 9,965.64 10,112.29
10,362.90 10,233.05 10,125.44
Jun-93 10,436.83 10,266.49 10,308.71
10,457.00 10,218.65 10,367.47
10,786.30 10,606.96 10,548.90
Sep-93 10,806.46 10,528.86 10,577.38
10,860.22 10,744.70 10,616.52
10,786.29 10,647.03 10,526.28
Dec-93 10,928.42 10,779.00 10,583.12
11,195.81 11,140.08 10,725.99
10,894.15 10,837.70 10,539.36
Mar-94 10,482.79 10,368.34 10,279.04
10,544.49 10,507.53 10,196.81
10,640.47 10,679.43 10,195.79
Jun-94 10,462.21 10,416.49 10,173.36
10,715.88 10,761.86 10,375.81
10,996.98 11,199.72 10,388.26
Sep-94 10,777.59 10,930.56 10,235.55
10,900.99 11,179.97 10,226.34
10,681.60 10,770.12 10,203.84
Dec-94 10,729.24 10,927.54 10,274.25
10,925.98 11,212.36 10,477.68
11,256.22 11,647.40 10,727.04
Mar-95 11,488.09 11,991.47 10,792.48
11,726.98 12,344.69 10,943.57
12,113.43 12,838.11 11,367.09
Jun-95 12,331.24 13,140.06 11,450.07
12,605.27 13,578.28 11,424.88
12,647.43 13,615.35 11,563.12
Sep-95 12,970.65 14,188.23 11,675.28
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
[S] [C] [C]
GE Strategic 20.35% 10.52%
S&P 500 29.77% 14.46%
LB Aggregate 14.06% 6.16%
Class D Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART TO FOLLOW:
<TABLE>
<S> <C> <C> <C>
STRATEGIC S&P 500 LB AGGR.
11/29/93
11/29/93* 10,000.00 - -
10,018.73 10,000.00 10,000.00
Dec-93 10,152.68 10,123.95 10,054.00
10,401.09 10,463.08 10,189.73
10,127.20 10,179.08 10,012.43
Mar-94 9,745.04 9,738.25 9,765.12
9,802.36 9,868.97 9,687.00
9,891.54 10,030.43 9,686.03
Jun-94 9,732.30 9,783.47 9,664.72
9,967.97 10,107.85 9,857.05
10,235.48 10,519.10 9,868.88
Sep-94 10,025.30 10,266.29 9,723.81
10,146.31 10,500.55 9,715.05
9,942.49 10,115.61 9,693.68
Dec-94 9,993.60 10,263.46 9,760.57
10,176.85 10,530.98 9,953.83
10,484.44 10,939.58 10,190.73
Mar-95 10,700.41 11,262.74 10,252.89
10,929.48 11,594.49 10,396.43
11,289.43 12,057.92 10,798.77
Jun-95 11,498.86 12,341.52 10,877.60
11,754.10 12,753.11 10,853.67
11,793.37 12,787.93 10,985.00
Sep-95 12,100.96 13,326.00 11,091.56
</TABLE>
<TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
<S> <C> <C>
GE Strategic 20.70% 10.92%
S&P 500 29.77% 16.99%
LB Aggregate 14.06% 5.82%
</TABLE>
18
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE STRATEGIC INVESTMENT FUND
[GRAPHIC]
PIE CHART
DATA FOR PIE CHART
<TABLE>
<CAPTION>
GE STRATEGIC INVESTMENT
<S> <C>
Domestic Equity 47.5%
Bonds & Notes 29.4%
Foreign Equity 13.7%
Cash & Other 9.4%
100.0%
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value
Common Stock - 61.2%
Automotive - 0.3%
Suzuki Motor Corp 10,000 $108,021
Valeo 360 16,945
124,966
[GRAPHIC]
Icon for Banks and Finance
Banks & Financial Services - 9.2%
American Express Co 5,600 248,500
AMMB Holdings BHD 1,000 12,341
Banco Comercial Portugues ADR 8,527 110,851
Banque Nationale Paris 313 12,267
Block H & R Inc 800 30,400
Citicorp 5,000 353,750
Countrywide Credit Industries 8,500 199,750
Deutsche Bank AG 3,615 172,098
Federal National Mortgage Assoc 7,000 724,500
Grupo Financiero Bancomer
ADR (Series C) 3,887 22,350 (a,b)
International Nederlanden 226 13,123
Morgan (J.P.) & CoInc 3,000 232,125
Rollins Inc 2,500 61,250
SPDR Trust 14,000 818,781
State Street Boston Corp 5,500 220,000
Thai Farmers Bank 15,700 136,386
Travelers Group, Inc 11,000 584,375
Wells Fargo & Co 1,500 278,438
4,231,285
Broadcasting, Entertainment & Media - 6.0%
Capital Cities/ABC Inc 4,000 470,500
Carmike Cinemas Inc 500 11,000 (a)
Carnival Corp(Class A) 2,500 60,000
Catalina Marketing Corp 900 55,800 (a)
Comcast Corp(Class A) 10,700 214,000
Disney (Walt) Co 2,800 160,650
Donnelley (R.R.) & Sons Co 5,000 195,000
Dun & Bradstreet Corp 1,000 57,875
Gannett Inc 3,000 163,875
Interpublic Group CosInc 2,000 79,500
Readers Digest Association Inc 1,1005 1,838
Reed International 7,511 113,884
Reuters Holdings PLC ADR
(Class B) 11,500 608,062
Tele Communications Inc 2,850 76,238(a)
Tele-Communications Inc(Class A) 11,400 199,500(a)
Television Broadcasts LtdADR 2,000 8,045
Time Warner Inc 3,000 119,250
Wolters Kluwer 1,419 130,290
2,775,307
{Graphic]
Icon for Broadcasting, Entertainment, Media
Building Materials & Construction - 0.9%
BPB Industries 33,024165,831
Hutchison Whampoa Ltd 41,000 222,189
Siam Cement 1005,898
VA Technologie AG 179 20,612
414,530
Chemical - 1.0%
Air Products & Chemicals Inc 2,600 135,525
Airgas Inc 1,600 42,600 (a)
Morton International Inc 9,000 279,000
457,125
Consumer Related - 5.1%
Anheuser Busch CosInc 1,700 106,037
Arbor Drugs Inc 4,500 84,375
Burns Philip & Co 72,391 153,185
Canon Inc 7,000 125,082
Coca Cola Co 1,100 75,900
Colgate Palmolive Co 1,200 79,950
Duracell International Inc 1,300 58,338
Electrolux AB 256 12,252
General Mills Inc 1,500 83,625
McDonalds Corp 5,100 195,075
Nestle S.A(Regd.) 12 12,280
Nike Inc 400 44,450
Pepsico Inc 10,000 510,000
Philip Morris CosInc 7,500 626,250
Procter & Gamble Co 700 53,900
Rubbermaid Inc 2,000 55,250
Scholastic Corp 1,000 62,750 (a)
2,338,699
Diversified Manufacturing - 4.0%
Allied Signal Inc 9,000 397,125
BBC Brown Boveri 257 297,684
Dover Corp 12,200 466,650
Grupo Carso S.Ade C.VADR 1,078 12,532 (a,b)
Hanson PLC ADR 13,500 219,375
Imi 1,632 9,787
Loews Corp 3,000 436,500
<PAGE>
Sasib 2,960 7,710
Tokyo Steel Manufacturing 1,000 19,282
1,866,645
[Graphic]
Icon for Drugs, Healthcare & Cosmetics
Drugs, Healthcare & Cosmetics - 9.1%
Abbott Laboratories 12,000 511,500
American Home Products Corp 2,500 212,188
American Medical Response 3,000 85,125 (a)
Arrow International Inc 1,200 51,900
Astra AB 8,999 317,003
Avon Products Inc 2,500 179,375
Bristol-Myers Squibb Co 3,000 218,625
Cardinal Health Inc 1,500 83,063
Dentsply International Inc 2,000 69,000
Eli Lilly & Co 2,200 197,725
FHP International Corp 2,000 48,250(a)
Gehe AG 21 9,868
Gehe AG (new) 5 2,274 (a)
Gillette Co 2,000 95,250
International Flavours 800 38,600
Johnson & Johnson 6,200 459,575
Lincare Holdings Inc 1,500 38,625 (a)
Living Centers of
America Inc 2,000 66,500 (a)
Medeva 5,226 21,469
Merck & CoInc 6,000 336,000
Pfizer Inc 11,000 587,125
Roche Holdings AG 41 289,412
Smithkline Beecham PLC ADR 4,500 227,812
Takare 18,961 67,108
4,213,372
Electrical & Electronics - 3.9%
Alcatel Alsthom 71 5,970
AMP Inc 6,500 250,250
Hewlett Packard Co 1,200 100,050
Hubbell Inc(Class B) 6,000 351,750
Intel Corp 4,200 252,525
Molex Inc(Class A) 2,813 94,219
Murata Manufacturing Co 5,000 187,775
Rohm Co 5,000 315,986
Siemens AG 460 232,189 (a)
1,790,714
[Graphic]
Icon for Energy & Energy
Energy & Energy Related - 4.7%
Amoco Corp 1,000 64,125
Anadarko Petroleum Co 3,400 161,075
Atlantic Richfield Co 1,800 193,275
Coflexip ADR 3,992 61,377
Exxon Corp 3,000 216,750
Omv AG 124 11,539
Petroleum Geo Services ADR 1,584 38,808 (a)
Royal Dutch Petroleum Co 3,300 405,075
Schlumberger Ltd 5,000 326,250
Texaco Inc 3,600 232,650
Total (Class B) 4,391 265,716
Unocal Corp 7,200 205,200
2,181,840
Forest Products, Paper & Packaging - 0.9%
Champion International Corp 900 48,487
Kimberly Clark Corp 3,000 201,375
Scott Paper Co 3,500 169,750
419,612
Industrial Products & Services - 2.0%
Browning-Ferris Industries Inc 5,000 151,875
Flightsafety International Inc 2,000 91,750
ISS (Series B) 371 9,772
Minnesota Mining & Manufacturing 3,000 169,500
Technip 2,116 139,219
Waste Management International
PLC ADR 2,548 28,028 (a)
WMX Technologies Inc 11,000 313,500
903,644
Insurance - 3.6%
Alleghany Corporation 520 88,920
American International Group Inc 3,000 255,000
Chubb Corp 2,000 192,000
General Reinsurance Corp 2,000 302,000
Marsh & McLennan Cos 3,000 263,625
Schw Ruckversicher 321 313,780
TIG Holdings Inc 3,500 94,063
UNUM Corp 2,900 152,975
1,662,363
Merchandising - 2.5%
American Greetings Corp(Class A) 2,000 61,000
Baker JInc 1,000 8,125
Carrefour 459 269,369
CUC International Inc 700 24,413 (a)
Giordano International 180,000 165,294
Home Depot Inc 3,500 139,562
Ito Yokado Co 4,000 221,291
TJX CosInc 2,000 23,750
Toys 'R Us 9,500 256,500(a)
1,169,304
Metals - 0.2%
Reynolds Metals Co 1,200 69,300
Office Equipment & Supplies - 3.1%
Automatic Data Processing Inc 4,600 313,375
Equifax Inc 10,000 418,750
First Financial Management Corp 5,900 575,988
Microsoft Corp 1,200 108,600(a)
Sap AG 144 23,449
1,440,162
20
<PAGE>
Real Estate - 0.1%
Debartolo Realty Corp 2,000 28,000
Glimcher Realty Trust 1,000 20,375
48,375
Telephone & Utilities - 3.7%
Airtouch Communications 8,000 245,000(a)
American Telephone & Telegraph 4,800 315,600
GTE Corp 6,000 235,500
International Cabletel Inc 7,866 220,248(a)
MCI Communications Corp 7,800 203,287
NYNEX Corp 2,000 95,500
Stet Savings 4,923 11,495
Telefonos De Mexico S.AADR 1,841 58,452
Telekom Malaysia 15,000 112,858
Veba AG 5,424 215,252
1,713,192
Transportation - 0.9%
Brambles Industries Ltd 1,410 15,558
Danzas Holding AG 11 9,611
Pittston Services Group 2,500 67,812
Union Pacific Corp 4,800 318,000
410,981
Total Common Stock
(Cost $23,022,317) 28,231,416
Principal
Amount Value
<S> <C> <C>
Bonds and Notes - 29.4%
U.STreasuries - 12.4%
U.STreasury Bonds
6.25% 08/15/23 $100,000 95,187
7.625% 02/15/25 773,000 875,299
8.125% 08/15/19 100,000 117,312
9.00% 11/15/18 200,000 254,812
12.00% 05/15/05 - 08/15/13 410,000 595,889
1,938,499
U.S. Treasury Notes
5.75% 09/30/97 - 10/31/97 200,000 199,656
5.875% 08/15/98 292,000 291,816
6.00% 08/31/97 338,000 338,845
6.125% 05/31/97 - 05/15/98 350,000 351,522
6.25% 05/31/00 385,000 388,488
6.50% 04/30/99 - 08/15/05 225,000 230,134
6.75% 04/30/00 680,000 699,230
6.875% 03/31/00 550,000 568,133
7.50% 02/15/05 440,000 479,257
7.75% 11/30/99 50,000 53,141
8.00% 05/15/01 150,000 163,664
3,763,886
Total U.S. Treasuries
(Cost $5,532,865) 5,702,385
Asset Backed - 0.6%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 34,010 32,852
Conti Mortgage Home Equity
7.63% 05/15/09 38,343 38,643
Discover Card Master Trust
6.70% 02/16/00 30,000 30,272
Fleetwood Credit Grantor Trust
6.55% 05/16/11 39,127 38,797
Household Finance Corp.
8.15% 03/19/96 29,460 29,743 (e)
MBNA Master Credit Card Trust
6.45% 02/15/08 40,000 39,500
6.60% 01/15/03 20,000 20,200
Premier Auto Trust
5.95% 12/06/98 20,000 19,937
Standard Credit Card Master Trust
6.75% 06/07/00 30,000 30,375
Total Asset Backed
(Cost $280,668) 280,319
Corporate Notes - 6.9%
American Home Products
7.70% 02/15/00 250,000 261,287
Associates CorpNorth America
8.625% 06/15/97 100,000 103,811
Capital One Bank Medium Term Note
6.43% 06/29/98 150,000 149,436
Carter Holt Harvey Ltd.
8.875% 12/01/04 200,000 226,992
Central Maine Power Co.
7.40% 06/02/98 200,000 201,750
Citicorp
8.625% 12/01/02 100,000 110,001
General Motors Acceptance Corp.
6.10% 09/11/97 125,000 124,500
8.625% 07/15/96 100,000 101,692
Great Lakes Power Inc.
8.90% 12/01/99 100,000 106,174
Gulf States Utilities Co.
8.25% 04/01/04 125,000 133,459
HSBC Finance Nederland B.V.
7.40% 04/15/03 100,000 101,723 (b)
Hydro Quebec
8.05% 07/07/24 75,000 81,879
Joy Technologies Inc.
10.25% 09/01/03 100,000 111,625
21
<PAGE>
KFW International Finance Inc.
8.20% 06/01/06 50,000 55,966
North Atlantic Energy Corp.
9.05% 06/01/02 150,000 154,687
Ontario Province Canada
6.125% 06/28/00 250,000 246,560
7.00% 08/04/05 50,000 50,656
Paramount Communications Inc.
5.875% 07/15/00 150,000 143,474
RJR Nabisco Inc.
8.00% 07/15/01 125,000 125,020
Security Pacific Corp.
9.90% 04/26/96 100,000 102,110
Taubman Realty Group LtdPartners
8.00% 06/15/99 80,000 82,251
Tele-Communications Inc.
7.13% 02/02/98 200,000 201,882
United Air Lines Inc.
9.75% 08/15/21 35,000 39,481
United CoFinancial Corp.
7.00% 07/15/98 150,000 150,734
Total Corporate Notes
(Cost $3,120,864) 3,167,150
Mortgage-Backed - 9.5%
Federal Home Loan Mortgage Corp.
6.50% 03/01/09 - 08/01/25 490,768 479,757
7.00% 08/01/25 335,335 330,933
7.50% 06/01/23 - 06/01/25 387,112 389,771
8.00% 09/01/25 122,500 125,332
9.00% 04/01/16 - 05/01/20 361,287 380,170
1,705,963
Federal National Mortgage Assoc.
7.00% 07/01/23 18,508 18,253
8.50% 04/01/17 36,497 38,046
9.00% 08/01/07 21,578 22,556
78,855
Government National Mortgage Assoc.
5.50% TBA 50,000 49,500 (c)
6.00% TBA 400,000 400,481 (c)
6.50% 02/15/24 - 09/20/25 145,117 140,092
7.00% 09/15/07 - 11/15/08 94,729 95,439
7.50% TBA 150,000 151,500 (c)
9.00% 12/15/09 - 01/15/20 445,472 473,729
9.50% 12/15/09 - 09/15/16 193,891 209,788
1,520,529
Collateralized Mortgage Obligations
American Southwest Financial Securities Corp.
0.70% 01/18/09 166,757 5,263 (g)
1.0781%01/18/09 229,365 12,615 (g)
7.30% 06/17/07 29,807 30,338
Collateralized Mortgage Obligation Trust
8.00% 01/01/17 147,051 149,345
Community Program Loan Trust
4.50% 10/01/18 170,000 143,544
FDIC REMIC Trust
7.85% 09/25/25 60,000 61,406
Federal Home Loan Mortgage Corp.
7.00% 06/15/21 100,000 98,380
8.00% 04/15/20 30,000 30,888
Federal National Mortgage Assoc.
2.21% 07/25/10 200,000 27,125 (g)
2.335% 07/25/10 52,000 5,996 (g)
2.525% 07/25/10 127,137 12,475 (g)
7.00% 04/01/23 127,464 38,638 (g)
8.82% 02/01/24 120,311 79,856 (f)
Federal National Mortgage AssocREMIC
6.965% 07/25/10 40,000 39,875
Merrill Lynch Mortgage Investments Inc.
7.067% 05/25/15 49,937 50,217
Mid-State Trust
8.33% 04/01/30 137,604 145,173
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 59,313
Vornado Finance Corp.
6.36% 11/23/00 105,000 103,162 (b)
1,093,609
Total Mortgage-Backed
(Cost $4,363,142) 4,398,956
Total Bonds and Notes
(Cost $13,297,539) 13,548,810
Convertible Bonds - 0.0%
Sasib
9.25% 12/31/97
(Cost $7,907) ITL 15,000,000 7,907
Expiration Number
Date/ of
Strike Price Contracts Value
<S> <C> <C> <C>
Put Options Purchased - 0.0%
S&P 500 Index Dec95/560 39 17,550
(Cost $32,779)
Total Investments in Securities
(Cost $36,360,542) 41,805,683
Principal
Amount Value
<S> <C> <C>
Short Term Investments - 12.6%
U.SGovernment Agencies and Time Deposits - 7.7%
Federal National Mortgage Assoc.
5.61% 10/04/95 1,000,000 999,533 (d)
5.64% 10/06/95 1,100,000 1,099,138 (d)
6.30% 10/02/95 1,000,000 999,825 (d)
State Street Cayman Islands
6.50% 10/02/95 450,000 450,000
3,548,496
22
<PAGE>
Repurchase Agreement - 4.9%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $2,280,000) 2,280,000 2,280,000
(dated 9/29/95, proceeds
$2,281,188, collateralized by
$2,331,251 United States Treasury
Bond, 9.25%, 2/15/16)
Total Short Term Investments
(Cost $5,828,496) 5,828,496
Expiration Number
Date/ of
Strike Price Contracts Value
Call Options Written - (0.2%)
S&P 500 Index Dec95/565 39 (112,125)
(Premium received $73,981)
Other Assets and Liabilities,
net (3.0%) (1,375,838)
NET ASSETS - 100% $ 46,146,216
</TABLE>
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE STRATEGIC INVESTMENT FUND AS OF SEPTEMBER 30, 1995.
See Notes to Schedule of Investments and Financial Statements
23
<PAGE>
GE TAX-EXEMPT FUND
Bob Kaelin manages the tax-exempt operation with total assets over $5 billion
His responsibilities include managing the Elfun Tax-Exempt Income and GE Tax-
Exempt Funds.
Prior to joining GE Investments in 1984, he was Senior Vice President
and Manager of Tax-Exempts for CIGNA/INA Insurance Company.
From 1969 to 1976, Bob was Vice President at Girard Bank in
Philadelphia and A.GBecker in New York, where he was a municipal bond
salesman.
Bob is a graduate of StJoseph University in Philadelphia with a
B.S. in Business Administration.
MARKET OVERVIEW
During the past year, a combination of three factors has impacted the
municipal market: the significant reduction in the supply of bonds, the
collapse of Orange County, California and the ongoing debate in Washington,
DC over tax reform.
[Graphic]
Photo of: Bob Kaelin
Current estimates for calendar year 1995 are that $50 billion in
outstanding municipal bond supply will have left the market. Based on the
lack of supply, expectations for 1995 were high that municipals would be a
top performer. However, the lack of supply helped only to support the market,
as the market was hurt by the problem with Orange County and questions over
tax reform.
The Orange County issue, which shook investor confidence at the end
of 1994, carried over into 1995. It brought into question the ability and
willingness of municipal issuers to make the difficult fiscal decisions to
meet their financial obligations to bondholders During the first quarter of
1995, the positive results of muni supply took hold and Orange County
gradually receded from investors' focus. However, in mid-April, tax reform
became a political hot button and began to negatively affect munis as
investors started selling their municipal bonds due to the uncertainty of
continued tax exempt status. Since then, individual investors have been
largely absent from the muni marketIn spite of all this, the municipal
market has generated a strong positive return over the past year. Declining
interest rates have been the primary driverOn a relative basis munis have
lagged behind other fixed income investment returns.
GE TAX-EXEMPT FUND
For the year ended September 30, 1995, the municipal bond market as measured
by the Lehman Brothers Municipal Bond Index returned 11.2%, which exceeded
the total returns of each class of the Fund. This can be attributed to our
positioning of the Fund during fiscal year 1995. In response to the market
conditions mentioned above, we shortened the average maturity of the Fund by
nearly 3.5 years to 10.6 years. As a result, we have reduced our exposure to
the long end of the market, where selling by other funds has kept prices from
rising as much as other fixed income investments. On a positive note, the
Fund did not hold any Orange County bonds. We have sought issues with high
quality and good structure, since these bonds provide liquidity in uncertain
markets.
Within this environment we will continue to look for value while
maintaining a cautious view towards the market.
24
<PAGE>
GE TAX-EXEMPT FUND
Quality Ratings
at September 30, 1995
Percent of
Moody's Ratings* Market Value
Aaa 47.0%
Aa 37.5%
A 15.5%
100.0%
* Moody's Investors Service, Incis a nationally recognized statistical rating
organization.
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: General Municipal
Number of Funds
in category: 213
Peer group average
total return: 9.84%
* Lipper is an independent mutual fund rating service located in Summit,
New Jersey.
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of current income
exempt from federal income taxes while preserving capital by investing
primarily in municipal obligations.
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
TAX EXEMPT TAX EXEMPT LBMI
1/1/94 w/ load
<S> <C> <C. <C>
Dec-93 10,000.00 10,000.00 10,000.00
10,121.70 9,691.53 10,114.00
9,772.10 9,356.78 9,852.05
Mar-94 9,381.70 8,982.98 9,451.07
9,453.19 9,051.43 9,531.40
9,519.74 9,115.15 9,614.33
Jun-94 9,430.35 9,029.56 9,555.68
9,606.04 9,197.78 9,730.55
9,633.41 9,223.99 9,764.60
Sep-94 9,460.21 9,058.15 9,621.07
9,271.19 8,877.17 9,449.81
9,079.28 8,693.41 9,278.77
Dec-94 9,242.16 8,849.37 9,482.90
9,541.98 9,136.44 9,754.11
9,832.24 9,414.37 10,037.96
Mar-95 9,927.02 9,505.13 10,153.39
9,912.33 9,491.06 10,165.58
10,288.21 9,850.96 10,489.86
Jun-95 10,103.43 9,674.04 10,398.60
10,183.65 9,750.85 10,497.38
10,270.83 9,834.32 10,630.70
Sep-95 10,307.90 9,869.82 10,697.67
</TABLE>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Tax-Exempt 8.96% 1.75%
GE Tax-Exempt w/load 4.35% (0.76%)
LBMI 11.19% 3.93%
Class B Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
TAX EXEMPT TAX EXEMPT LBMI
12/22/93 w/ load
<S> <C> <C> <C>
12/22/93* 10,000.00 10,000.00 -
Dec-93 10,051.40 10,051.40 10,000.00
10,169.50 10,169.50 10,114.00
9,813.27 9,813.27 9,852.05
Mar-94 9,417.10 9,417.10 9,451.07
9,485.00 9,485.00 9,531.40
9,547.70 9,547.70 9,614.33
Jun-94 9,454.03 9,454.03 9,555.68
9,626.19 9,626.19 9,730.55
9,649.58 9,649.58 9,764.60
Sep-94 9,472.13 9,472.13 9,621.07
9,278.90 9,278.90 9,449.81
9,083.11 9,083.11 9,278.77
Dec-94 9,242.25 9,242.25 9,482.90
9,538.19 9,538.19 9,754.11
9,824.62 9,824.62 10,037.96
Mar-95 9,914.81 9,914.81 10,153.39
9,896.37 9,896.37 10,165.58
10,267.28 10,267.28 10,489.86
Jun-95 10,078.67 10,078.67 10,398.60
10,154.36 10,154.36 10,497.38
10,245.65 10,245.65 10,630.70
Sep-95 10,278.33 9,991.02 10,697.67
</TABLE>
*INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Tax-Exempt 8.51% 1.56%
GE Tax-Exempt w/load 5.51% -0.05%
LBMI 11.19% 3.93%
Class C Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
TAX EXEMPT LBMI
12/26/93
<S> <C> <C>
2/26/93* 10,000.00 -
10,017.30 10,000.00
Mar-93 9,875.35 9,894.00
10,005.12 9,993.93
10,039.93 10,049.90
Jun-93 10,206.40 10,217.73
10,216.30 10,231.01
10,433.70 10,443.82
Sep-93 10,547.64 10,562.88
10,552.38 10,582.95
10,435.67 10,489.82
Dec-93 10,651.90 10,711.15
10,775.25 10,833.26
10,412.23 10,552.68
Mar-94 9,998.34 10,123.18
10,076.53 10,209.23
10,149.59 10,298.05
Jun-94 10,056.31 10,235.23
10,245.87 10,422.54
10,277.23 10,459.02
Sep-94 10,094.50 10,305.27
9,894.93 10,121.83
9,692.08 9,938.63
Dec-94 9,867.99 10,157.28
10,190.18 10,447.78
10,502.11 10,751.81
Mar-95 10,605.66 10,875.45
10,592.08 10,888.50
10,995.96 11,235.85
Jun-95 10,800.67 11,138.10
10,888.69 11,243.91
10,993.44 11,386.70
Sep-95 11,025.98 11,458.44
*INCEPTION DATE.
</TABLE>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Tax-Exempt 9.23% 3.84%
LBMI 11.19% 5.40%
Class D Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
TAX EXEMPT LBMI
12/26/93
<S> <C> <C>
2/26/93* 10,000.00 -
10,017.30 10,000.00
Mar-93 9,875.35 9,894.00
10,005.12 9,993.93
10,039.93 10,049.90
Jun-93 10,206.40 10,217.73
10,216.30 10,231.01
10,433.70 10,443.82
Sep-93 10,547.64 10,562.88
10,552.38 10,582.95
10,435.67 10,489.82
Dec-93 10,651.90 10,711.15
10,775.25 10,833.26
10,412.23 10,552.68
Mar-94 9,998.34 10,123.18
10,076.53 10,209.23
10,149.59 10,298.05
Jun-94 10,056.31 10,235.23
10,245.87 10,422.54
10,277.23 10,459.02
Sep-94 10,094.50 10,305.27
9,894.93 10,121.83
9,692.08 9,938.63
Dec-94 9,867.99 10,157.28
10,190.18 10,447.78
10,502.11 10,751.81
Mar-95 10,605.66 10,875.45
10,592.08 10,888.50
10,995.96 11,235.85
Jun-95 10,800.67 11,138.10
10,888.69 11,243.91
10,993.44 11,386.70
Sep-95 11,025.98 11,458.44
</TABLE>
*INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Tax-Exempt 9.59% 3.49%
LBMI 11.19% 4.94%
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
25
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE TAX-EXEMPT FUND
[GRAPHIC]
Pie Chart
Data for Pie Chart to follow:
GE TAX-EXEMPT
General Obligation 16.9%
Cash & Other 16.3%
Revenue 15.6%
Municipal Buildings 14.2%
Education 10.3%
Power 9.1%
Transportation 8.9%
Water & Sewer 4.4%
Hospital 4.3%
100.0%
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Municipal Bonds - 83.6%
Arizona - 2.3%
Phoenix Arizona Street & Highway
Rev- Trans.
6.60% 07/01/07 $250,000 $273,050
{Graphic]
Icom of state
Florida - 6.9%
Brevard County Utility
Rev-Water & Sewer, AMBAC Insured
5.25% 03/01/08 250,000 252,760
Orlando Florida Utilities Commission Water
Rev- Water
6.50% 10/01/20 500,000 559,640
812,400
Hawaii - 6.3%
Hawaii State G.O.
4.50% 06/01/01 500,000 500,220
Honolulu City & County, G.O.
6.10% 06/01/12 230,000 238,181
738,401
Illinois - 3.2%
Chicago Illinois Public Building Commerce
Rev- Building, MBIA Insured
4.90% 12/01/01 380,000 382,785
{Graphic]
Icom of state
Indiana - 6.9%
Indiana University Rev- Educ.
6.00% 11/15/14 290,000 294,756
Indianapolis Local Rev.- Trans.
6.00% 01/10/18 250,000 250,852
Petersburg Pollution Control
Rev- Pollution Control
6.625% 12/01/24 $250,000 $263,800
809,408
[Graphic]
Icon of State
Massachusetts - 6.4%
Massachusetts State G.O.
4.50% 01/01/04 510,000 495,256
Massachusetts State Water & Sewer
Rev- Water & Sewer
6.00% 11/01/06 250,000 263,755
759,011
Missouri - 4.3%
Sikeston Missouri Electric
Rev- Electric, MBIA Insured
6.25% 06/01/22 500,000 513,725
New Jersey - 6.3%
New Jersey Building Auth.
Rev.- MuniBldg.
5.00% 06/15/12 500,000 464,610
New Jersey TpkeAuth.
Rev.- Trans., AMBAC Insured
6.50% 01/01/16 250,000 274,765
739,375
[Graphic]
Icon of State
New York - 9.1%
New York State Local Government Assistance Corp.
Rev- Educ.
7.00% 04/01/18 500,000 574,125
New York State Thruway Auth.
Rev- Trans.
6.00% 04/01/14 500,000 500,380
1,074,505
Ohio - 2.2%
Ohio State Public Facilities
Rev- MuniBldg., AMBAC Insured
5.40% 11/01/07 250,000 255,248
Oklahoma - 4.3%
Tulsa Oklahoma Industrial Auth. Hospital
Rev- Health
6.10% 02/15/09 500,000 511,125
[Graphic]
Icon of State
Pennsylvania - 8.5%
Lehigh County Industrial
Development Authority
Rev- Pollution Control, MBIA Insured
6.40% 11/01/21 500,000 517,695
26
<PAGE>
Pennsylvania Intergovernmental Co-op.
Rev- Muni., MBIA Insured
5.60% 06/15/15 $500,000 $483,175
1,000,870
Puerto Rico - 4.8%
Puerto Rico Public Buildings Authority
Rev- Bond
6.875% 07/01/21 500,000 572,330
South Carolina - 4.3%
Charleston County SC, G.O.
6.00% 06/01/13 500,000 512,615
Texas - 4.2%
University of Texas Rev- Educ.
5.10% 08/15/08 500,000 493,015
Virginia - 3.6%
University Virginia Rev- Educ.
5.375% 06/01/20 445,000 422,550
Total Investments in Securities
(Cost $9,560,487) 9,870,413
Short Term Investments - 14.6%
U.SGovernment Agencies - 10.2%
Federal National Mortgage Assoc.
6.41% 10/04/95 1,200,000 1,199,439(d)
Repurchase Agreement - 4.4%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $520,000) 520,000 520,000
(dated 9/29/95, proceeds
$520,271, collateralized by
$531,342 United States Treasury
Note, 4.375, 8/15/96)
Total Short Term Investments
(Cost $1,719,439) 1,719,439
Other Assets and Liabilities,
net 1.8% 209,302
NET ASSETS - 100% $11,799,154
</TABLE>
ICONS REPRESENT THE TOP FIVE STATE WEIGHTINGS IN THE
GE TAX-EXEMPT FUND AS OF SEPTEMBER 30, 1995.
See Notes to Schedule of Investments and Financial Statements
27
<PAGE>
GE FIXED INCOME FUNDS
Bob MacDougall leads the taxable fixed income team at GE Investments
Assets under management exceed $14 billion His responsibilities include
managing the GE Fixed Income, GE Short-Term Government and GE Money
Market Funds.
Bob joined GE Investments in 1986 as Mutual Fund Portfolio Manager and was
named to his present position in 1992.
Previously he was with GE's Corporate Treasury Operation managing the
Company's $2 billion portfolio of marketable securities and supporting the
Treasurer in the areas of debt management and capital structure planning
Prior to that, Bob held various financial management positions since joining
GE in 1973.
He holds Bachelor's and Master's degrees in Business Administration
from the University of Massachusetts.
MARKET OVERVIEW
From October 1993 to November 1994 long-term interest rates rose
from below 6% to over 8%. This year they retraced about 3/4 of that move and
as of September 30, 1995 were close to 6 1\4%. Needless to say, these have been
interesting times for investors and portfolio managers alike.
[Graphic]
Photo of Bob MacDougall
GE FIXED INCOME FUND
For the year ended September 30, 1995 the domestic bond market, as measured
by the Lehman Brothers Aggregate Bond Index, returned 14.1%. Despite
achieving double digit returns on all Fund classes, we trailed the market
index during the rally early in 1995. The GE Fixed Income Fund lost some
relative performance by taking a defensive position in response to rising
interest rates. This position was designed to reduce duration (interest rate
exposure) to help preserve capital.
The Fund's under-performance was partially offset with favorable
sector allocation. Our underweighting of U.S. Treasuries in favor of
corporate bonds was clearly the right decision in 1995. Corporates added both
income and price appreciation to the Fund, as the yield spread of corporates
to Treasuries narrowed during the year.
GE SHORT-TERM
GOVERNMENT FUND
For the year ended September 30, 1995 the Lehman Brothers 1-3 Year Government
Bond Index returned 8.2%. Like the GE Fixed Income Fund, the price
performance of the GE Short-Term Government Fund was influenced by the
defensive posture we established during the sell off in the market in 1994.
The Fund is currently well positioned to participate in any further decline
in rates.
In its first full year of operation, the GE Short-Term Government
Fund performed as expected providing investors a higher yielding alternative
to the GE Money Market Fund with less price volatility than the GE Fixed
Income FundIn addition to taking less interest rate risk (duration) than
the GE Fixed Income Fund, the GE Short-Term Government Fund also assumes less
credit risk. At September 30, 1995, the Fund's portfolio was 88% invested in
Aaa rated securities U.S. Government positions, including Treasuries and
mortgage-backed securities, totaled 80.4%.
GE MONEY MARKET FUND
For the year ended September 30, 1995, the 90 day Treasury bill returned
6.0%. As interest rates began falling in early 1995, we gradually extended
the Fund's average maturity from a low of 16 days in December to 55 days at
September 30, 1995. The composition of the portfolio has been rather stable.
U.SGovernment securities account for about 40% of the Fund with the
remainder invested in commercial paper or certificates of deposit issued by
high quality corporations and banks. We continue to limit our investments to
issuers with the highest credit quality in order to maintain the Fund's
stability and liquidity.
We have constructed the Fixed Income Funds' portfolios in a manner
which we believe will perform well in an environment of stable to declining
interest rates.
28
<PAGE>
GE FIXED INCOME FUND
Quality Ratings
at September 30, 1995
Percent of
Moody's Ratings* Market Value
Aaa 80.8%
Aa 1.5%
A 4.4%
Baa 8.1%
Ba 4.9%
Not Rated 0.3%
100.0%
* Moody's Investors Service, Incis a nationally recognized statistical
rating organization.
INVESTMENT PROFILE
A mutual fund designed for investors who seek high current income and
preservation of capital by investing primarily in fixed income securities
including government and corporate bonds.
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Intermediate Bond
Number of Funds
in peer group: 144
Peer group average
total return: 12.15%
*Lipper is an independent mutual fund rating service located in
Summit, New Jersey.
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
GE FIXED INCOME GE FIXED INCOME LB AGGR.
1-Jan-94 w/ load
<S> <C> <C> <C>
Dec-93 10,000.00 10,000.00 10,000.00
10,161.20 9,729.35 10,135.00
9,963.67 9,540.21 9,958.65
Mar-94 9,746.86 9,332.62 9,712.67
9,687.89 9,276.15 9,634.97
9,662.89 9,252.22 9,634.01
Jun-94 9,654.97 9,244.63 9,612.81
9,793.52 9,377.29 9,804.11
9,814.57 9,397.46 9,815.87
Sep-94 9,698.17 9,286.00 9,671.58
9,679.55 9,268.17 9,662.87
9,660.19 9,249.64 9,641.62
Dec-94 9,719.60 9,306.52 9,708.14
9,885.23 9,465.10 9,900.36
10,084.51 9,655.92 10,135.99
Mar-95 10,150.16 9,718.78 10,197.82
10,289.83 9,852.51 10,340.59
10,665.10 10,211.83 10,740.77
Jun-95 10,735.92 10,279.64 10,819.18
10,689.97 10,235.64 10,795.38
10,808.20 10,348.85 10,926.00
Sep-95 10,908.39 10,444.78 11,031.99
</TABLE>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Fixed Income 12.48% 5.10%
GE Fixed Income w/load 7.70% 2.50%
LB Aggregate 14.06% 5.77%
Class B Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
GE FIXED INCOME GE FIXED INCOME LB AGGR.
22-Dec-93 w/ load
<S> <C> <C> <C>
12/22/93* 10,000.00 10,000.00 -
Dec-93 10,020.60 10,020.60 10,000.00
10,165.50 10,165.50 10,135.00
9,963.20 9,963.20 9,958.65
Mar-94 9,742.02 9,742.02 9,712.67
9,679.09 9,679.09 9,634.97
9,658.47 9,658.47 9,634.01
Jun-94 9,638.19 9,638.19 9,612.81
9,781.03 9,781.03 9,804.11
9,789.34 9,789.34 9,815.87
Sep-94 9,669.13 9,669.13 9,671.58
9,646.50 9,646.50 9,662.87
9,623.25 9,623.25 9,641.62
Dec-94 9,678.39 9,678.39 9,708.14
9,848.06 9,848.06 9,900.36
10,042.75 10,042.75 10,135.99
Mar-95 10,094.77 10,094.77 10,197.82
10,238.73 10,238.73 10,340.59
10,607.73 10,607.73 10,740.77
Jun-95 10,673.82 10,673.82 10,819.18
10,622.47 10,622.47 10,795.38
10,733.90 10,733.90 10,926.00
Sep-95 10,827.50 10,527.50 11,031.99
</TABLE>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Fixed Income 11.98% 4.59%
GE Fixed Income w/load 8.98% 2.97%
LB Aggregate 14.06% 5.77%
Class C Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
FIXED INCOME LB AGGR.
22-Dec-93
<S> <C> <C>
2/22/93* 10,000.00 -
10,050.00 10,000.00
Mar-93 10,081.05 10,042.00
10,160.39 10,112.29
10,122.39 10,125.44
Jun-93 10,293.97 10,308.71
10,310.75 10,367.47
10,466.64 10,548.90
Sep-93 10,524.00 10,577.38
10,561.89 10,616.52
10,472.11 10,526.28
Dec-93 10,521.85 10,583.12
10,680.95 10,725.99
10,475.34 10,539.36
Mar-94 10,249.59 10,279.04
10,189.74 10,196.81
10,174.45 10,195.79
Jun-94 10,159.39 10,173.36
10,316.36 10,375.81
10,331.73 10,388.26
Sep-94 10,211.26 10,235.55
10,202.89 10,226.34
10,175.54 10,203.84
Dec-94 10,240.36 10,274.25
10,426.33 10,477.68
10,638.40 10,727.04
Mar-95 10,700.74 10,792.48
10,859.43 10,943.57
11,257.54 11,367.09
Jun-95 11,334.65 11,450.07
11,287.39 11,424.88
11,412.90 11,563.12
Sep-95 11,519.50 11,675.28
</TABLE>
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Fixed Income 12.81% 5.59%
LB Aggregate 14.06% 6.16%
Class D Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
<CAPTION>
FIXED INCOME LB AGGR.
29-Nov-93
<S> <C> <C>
11/29/93* 10,000.00 -
9,994.20 10,000.00
Dec-93 10,043.77 10,054.00
10,197.84 10,189.73
10,003.47 10,012.43
Mar-94 9,790.00 9,765.12
9,734.78 9,687.00
9,713.75 9,686.03
Jun-94 9,709.77 9,664.72
9,853.28 9,857.05
9,878.61 9,868.88
Sep-94 9,765.50 9,723.81
9,750.95 9,715.05
9,735.44 9,693.68
Dec-94 9,799.50 9,760.57
9,979.52 9,953.83
10,184.40 10,190.73
Mar-95 10,246.42 10,252.89
10,400.42 10,396.43
10,783.89 10,798.77
Jun-95 10,859.91 10,877.60
10,817.02 10,853.67
10,939.68 10,985.00
Sep-95 11,044.37 11,091.56
</TABLE>
*INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Fixed Income 13.10% 5.55%
LB Aggregate 14.06% 5.82%
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
29
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE FIXED INCOME FUND
[Graphic]
Pie Chart Data as follows:
GE FIXED INCOME
U.S. Treasuries 45.0%
Corporate Notes 18.8%
Mortgage Backed 30.6%
Asset Backed 2.0%
Cash & Other 3.6%
100.0%
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Bonds and Notes - 97.5%
U.STreasuries - 45.0%
U.STreasury Bonds
6.25% 08/15/23 $250,000 $237,968
6.875% 08/15/25 85,000 89,316
7.50% 11/15/24 85,000 94,602
7.625% 02/15/25 1,109,000 1,255,765
8.125% 08/15/19 250,000 293,280
11.625%11/15/04 950,000 1,300,607
12.00% 05/15/05 - 08/15/13 375,000 544,083
3,815,621
U.S. Treasury Notes
5.625% 01/31/98 2,179,000 2,166,409
5.75% 09/30/97 - 10/31/97 1,110,000 1,108,305
6.00% 08/31/97 700,000 701,750
6.125% 05/31/97 - 05/15/98 1,150,000 1,154,945
6.375% 08/15/02 80,000 81,187
6.50% 04/30/99 - 08/15/05 ,555,000 1,590,699
6.75% 04/30/00 1,035,000 1,064,270
7.75% 11/30/99 1,850,000 1,966,198
7.875% 11/15/04 73,000 81,178
8.00% 05/15/01 1,300,000 1,418,417
11,333,358
Total U.S. Treasuries
(Cost $14,898,233) 15,148,979
Asset Backed - 2.0%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 68,021 65,703
Conti Mortgage Home Equity
7.63% 05/16/09 87,144 87,825
Discover Card Master Trust
6.70% 02/16/00 70,000 70,634
Fleetwood Credit Grantor Trust
6.55% 05/16/11 78,255 77,595
Household Finance Corp.
8.15% 03/19/96 67,336 67,983(e)
MBNA Master Credit Card Trust
6.45% 02/15/08 90,000 88,875
6.60% 01/15/03 60,000 60,600
Premier Auto Trust
5.95% 12/06/98 60,000 59,812
Standard Credit Card Master Trust
6.75% 06/07/00 80,000 81,000
Total Asset Backed
(Cost $661,377) 660,027
Corporate Notes - 18.8%
American Airlines
9.71% 01/02/07 101,681 114,264
American Home Products
7.70% 02/15/00 125,000 130,644
Bank of China
8.25% 03/15/14 50,000 47,292
Banque Paribas
8.35% 06/15/07 50,000 54,115
Bell Telephone Co.
8.35% 12/15/30 125,000 149,143
Capital One Bank Medium Term Note
6.43% 06/29/98 400,000 398,496
6.48% 08/15/97 105,000 104,986
Central Maine Power Co.
7.40% 06/02/98 125,000 126,094
Delta Air Lines Inc.
7.79% 12/01/98 125,000 128,710
Dresdner Bank A G
7.25% 09/15/15 40,000 39,867
Duty Free International Inc.
7.00% 01/15/04 195,000 182,060
General Motors Acceptance Corp.
6.10% 09/11/97 250,000 249,000
Grand Metropolitan Investment Corp.
7.45% 04/15/35 60,000 64,088
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 75,000 78,617
Great Lakes Power Inc.
8.90% 12/01/99 100,000 106,174
Gulf States Utilities Co.
8.25% 04/01/04 250,000 266,917
HSBC Finance Nederland B.V.
7.40% 04/15/03 150,000 152,584(b)
Hydro Quebec
8.25% 04/15/26 250,000 265,845
11.75% 02/01/12 120,000 167,968
Joy Technologies Inc.
10.25% 09/01/03 200,000 223,250
KFW International Finance Inc.
8.20% 06/01/06 115,000 128,721
Lehman Brothers Inc.
7.125% 07/15/02 120,000 120,120
30
<PAGE>
Liberty Mutual Insurance Co.
8.50% 05/15/25 $100,000 $102,882(b)
Markel Corp.
7.25% 11/01/03 50,000 49,207
Merrill Lynch & CoInc.
6.64% 09/19/02 150,000 149,559
National Westminster Bancorp
9.375% 11/15/03 100,000 116,269
News America Holdings Inc.
10.125%10/15/12 195,000 228,121
North Atlantic Energy Corp.
9.05% 06/01/02 189,000 194,906
Ontario Province Canada
7.00% 08/04/05 100,000 101,313
RJR Nabisco Inc.
8.00% 07/15/01 300,000 300,048
Saskatchewan Province Canada
7.375% 07/15/13 100,000 101,027
Swiss Bank Corp.
7.50% 07/15/25 100,000 100,940
Taubman Realty Group L.P.
8.00% 06/15/99 60,000 61,688
Tele-Communications Inc.
7.13% 02/02/98 110,000 111,035
8.75% 08/01/15 75,000 78,260
9.25% 04/15/02 100,000 110,383
Time Warner Entertainment CoL.P.
10.15% 05/01/12 75,000 89,654
Time Warner Inc.
7.75% 06/15/05 175,000 175,969
Toledo Edison Co.
7.38% 03/31/00 250,000 239,430
United Air Lines Inc.
9.75% 08/15/21 160,000 180,486
United CoFinancial Corp.
7.00% 07/15/98 300,000 301,467
Viacom Inc.
7.75% 06/01/05 125,000 127,415
Woolworth Corp.
7.00% 06/01/00 125,000 124,635
Total Corporate Notes
(Cost $6,241,126) 6,343,649
Mortgage-Backed - 30.6%
Federal Home Loan Mortgage Corp.
6.50% 06/01/08 - 08/01/25
1,002,601 980,293
7.00% 08/01/25
1,223,092 1,207,032
7.50% 06/01/23 - 08/01/25
1,500,340 1,510,647
8.00% 03/01/07 - 08/01/08
38,997 40,082
8.75% 04/01/08 73,401 76,288
9.00% 12/01/16 712,142 747,856
9.50% 04/01/21 64,060 68,479
4,630,677
Federal National Mortgage Assoc.
6.00% 07/01/09 98,001 95,061
7.00% 07/01/17 49,566 49,879
7.50% 02/01/14 36,368 37,019
8.50% 04/01/17 145,988 152,185
9.00% 08/01/07 46,238 48,333
382,477
Government National Mortgage Assoc.
5.50% TBA 100,000 99,000(c)
6.00% TBA 500,000 500,594(c)
6.50% 07/20/25 - 08/20/25
1,860 1,885(h)
7.00% 06/15/08 - 09/15/08
119,156 120,049
8.00% 05/15/17 185,725 192,836
9.00% 12/15/09 - 11/15/19
806,035 855,648
9.50% 12/15/09 - 08/15/17
685,189 741,488
2,511,500
Collateralized Mortgage Obligations
American Southwest Financial Securities Corp.
0.70% 01/18/09 385,026 12,152(g)
1.0781%01/18/09 529,349 29,114(g)
7.30% 10/17/01 49,678 50,563
Collateralized Mortgage Obligation Trust
8.00% 01/01/17 637,220 647,160
Community Program Loan Trust
4.50% 10/01/18 300,000 253,313
FDIC REMIC Trust
7.85% 09/25/25 140,000 143,281
Federal Home Loan Mortgage Corp.
7.00% 06/15/21 600,000 590,280
8.00% 04/15/20 70,000 72,072
Federal National Mortgage Assoc.
2.21% 07/25/10 400,000 54,250(g)
2.335% 07/25/10 104,000 11,992(g)
2.525% 07/25/10 254,275 24,951(g)
7.00% 04/01/23 263,425 79,851(g)
7.10% 02/01/24 249,876 165,855(f)
Federal National Mortgage AssocREMIC
6.965% 07/25/10 80,000 79,750
Mid-State Trust
8.33% 04/01/30 255,551 269,606
Sawgrass Finance REMIC Trust
6.45% 01/20/06 100,000 98,856
Vornado Finance Corp.
6.36% 12/01/00 210,000 206,325(b)
2,789,371
Total Mortgage-Backed
(Cost $10,179,427) 10,314,025
31
<PAGE>
Foreign Denominated Notes - 1.1%
Canada Government
9.00% 12/01/04 CAD 127,000 $102,088
New Zealand Government
6.50% 02/15/00 NZD 436,000 271,567
Total Foreign Denominated Notes
(Cost $368,927) 373,655
Total Investments in Securities
(Cost $32,349,090) 32,840,335
Short Term Investments - 5.0%
U.SGovernment Agencies - 0.6%
Federal National Mortgage Assoc.
6.30% 10/02/95 200,000 199,965(d)
Repurchase Agreement - 4.4%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $1,490,000) 1,490,000 1,490,000
(dated 9/29/95, proceeds
$1,490,776, collateralized by
$1,524,504 United States Treasury
Note, 4.375%, 8/15/96)
Total Short Term Investments
(Cost $1,689,965) 1,689,965
Other Assets and Liabilities,
net (2.5%) (853,588)
NET ASSETS - 100% $ 33,676,712
</TABLE>
See Notes to Schedule of Investments and Financial Statements
32
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
[Graphic]
Line Chart Data as follows:
<TABLE>
2 YEAR TREASURY YIELD CURVE
10/1/95 - 9/30/95
<S> <C>
OCT-94 6.66
NOV-94 6.82
DEC-94 7.40
JAN-95 7.70
FEB-95 6.76
MAR-95 6.74
APR-95 6.59
MAY-95 5.85
JUN-95 5.80
JUL-95 5.87
AUG-95 5.85
SEP-95 5.86
</TABLE>
HIGH 7.73
AVERAGE 6.56
LOW 5.52
INVESTMENT PROFILE
A mutual fund designed for investors who seek high
current income and preservation of capital by
investing primarily in short-term government securities.
Wall Street Journal/Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Short-Term Gov't.
Number of Funds
in category: 150
Peer group average
total return: 8.16%
*Lipper is an independent mutual fund rating service located in
Summit, New Jersey.
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
GE SHORT-TERM GOVERNMENT FUND
Comparison of Change in Value of a $10,000 Investment
Class A Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
SHORT TERM GOVOT SHORT TERM GOVOT LB 1-3 YR.
2-Mar-94 w/ load
<S> <C> <C> <C>
3/2/94* 10,000.00 10,000.00 10,000.00
Mar-94 9,942.30 9,693.74 9,949.00
9,864.55 9,617.94 9,911.19
9,901.54 9,654.00 9,925.07
Jun-94 9,939.96 9,691.46 9,949.88
10,014.71 9,764.34 10,039.43
10,048.16 9,796.95 10,072.56
Sep-94 10,039.62 9,788.63 10,049.39
10,058.09 9,806.64 10,072.51
10,023.69 9,773.10 10,030.20
Dec-94 10,046.85 9,795.68 10,049.26
10,162.18 9,908.13 10,185.93
10,277.42 10,020.49 10,324.46
Mar-95 10,323.98 10,065.88 10,382.28
10,422.68 10,162.11 10,474.68
10,568.91 10,304.69 10,653.80
Jun-95 10,642.26 10,376.20 10,711.33
10,678.23 10,411.27 10,754.17
10,742.94 10,474.36 10,818.70
Sep-95 10,790.10 10,520.35 10,871.71
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Short Term Gov't 7.48% 4.93%
GE Short Term Gov't
w/load 4.79% 3.25%
LB 1-3 YR 8.19% 5.40%
Class B Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
SHORT TERM GOVOT SHORT TERM GOVOT LB 1-3 YR.
3/2/94 w/ load
<S> <C> <C> <C>
3/2/94* 10,000.00 10,000.00 10,000.00
Mar-94 9,939.30 9,939.30 9,949.00
9,867.04 9,867.04 9,911.19
9,892.79 9,892.79 9,925.07
Jun-94 9,936.92 9,936.92 9,949.88
10,000.31 10,000.31 10,039.43
10,030.91 10,030.91 10,072.56
Sep-94 10,019.58 10,019.58 10,049.39
10,026.39 10,026.39 10,072.51
9,989.09 9,989.09 10,030.20
Dec-94 10,017.76 10,017.76 10,049.26
10,129.76 10,129.76 10,185.93
10,233.19 10,233.19 10,324.46
Mar-95 10,285.38 10,285.38 10,382.28
10,372.18 10,372.18 10,474.68
10,523.62 10,523.62 10,653.80
Jun-95 10,593.60 10,593.60 10,711.33
10,626.23 10,626.23 10,754.17
10,678.51 10,678.51 10,818.70
Sep-95 10,722.29 10,422.29 10,871.71
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Short Term Gov't 7.01% 4.51%
GE Short Term Gov't
w/load 4.01% 2.66%
LB 1-3 YR 8.19% 5.40%
Class C Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
SHORT TERM GOVOT LB 1-3 YR.
3/2/94
<S> <C> <C>
3/2/94* 10,000.00 10,000.00
Mar-94 9,942.80 9,949.00
9,875.39 9,911.19
9,906.20 9,925.07
Jun-94 9,955.14 9,949.88
10,023.63 10,039.43
10,059.31 10,072.56
Sep-94 10,052.77 10,049.39
10,073.28 10,072.51
10,040.84 10,030.20
Dec-94 10,074.78 10,049.26
10,192.35 10,185.93
10,301.01 10,324.46
Mar-95 10,359.10 10,382.28
10,451.30 10,474.68
10,609.11 10,653.80
Jun-95 10,684.97 10,711.33
10,723.43 10,754.17
10,781.66 10,818.70
Sep-95 10,831.26 10,871.71
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Short Term Gov't 7.74% 5.18%
LB 1-3 YR 8.19% 5.40%
Class D Shares
[GRAPHIC]
LINE CHART
DATA FOR LINE CHART
<TABLE>
SHORT TERM GOVOT LB 1-3 YR.
3/2/94
<S> <C> <C>
3/2/94* 10,000.00 10,000.00
Mar-94 9,946.30 9,949.00
9,880.85 9,911.19
9,913.76 9,925.07
Jun-94 9,964.81 9,949.88
10,035.46 10,039.43
10,073.30 10,072.56
Sep-94 10,068.86 10,049.39
10,082.96 10,072.51
10,061.08 10,030.20
Dec-94 10,088.45 10,049.26
10,208.40 10,185.93
10,328.04 10,324.46
Mar-95 10,379.78 10,382.28
10,474.14 10,474.68
10,634.60 10,653.80
Jun-95 10,712.87 10,711.33
10,753.69 10,754.17
10,814.34 10,818.70
Sep-95 10,866.25 10,871.71
</TABLE>
* INCEPTION DATE
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Short Term Gov't 7.92% 5.40%
LB 1-3 YR 8.19% 5.40%
33
<PAGE>
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE SHORT-TERM GOVERNMENT FUND
[GRAPHIC]
Pie Chart
Data for the Pie Chart to follow:
GE SHORT TERM GOVERNMENT
U.S. Government 77.6%
Corporate Notes 10.5%
Asset Backed 8.6%
Cash & Other 3.3%
100.0%
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Bonds and Notes - 99.5%
U.SGovernments - 77.6%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 $186,570 $182,708
8.00% 03/01/02 - 08/01/03 1,106,074 1,135,236
1,317,944
Federal Home Loan Mortgage CorpREMIC
543.498% 09/15/05 341 3,676(g)
1002.00% 07/15/06 705 13,717(g)
17,393
Federal National Mortgage Assoc.
5.61% 10/04/95 200,000 199,907
7.744% 07/01/22 45,888 46,619
8.00% 06/01/02 - 07/01/02 657,683 673,710
8.884% 10/21/01 156,495 161,777
1,082,013
Federal National Mortgage AssocREMIC
6.02% 11/25/06 112,749 99,197(d,f)
7.95% 11/25/19 132,831 134,452
233,649
Government National Mortgage Assoc.
5.50% TBA 40,000 39,600(c)
6.00% TBA 340,000 340,425(c)
380,025
U.S. Treasury Notes
5.625% 06/30/97 100,000 99,641
5.875% 07/31/97 3,370,000 3,371,045
6.625% 03/31/97 1,900,000 1,921,964
5,392,650
Total U.S. Governments
(Cost $8,421,820) 8,423,674
Asset Backed - 8.6%
CIT RV Grantor Trust
4.90% 07/15/09 238,540 232,278
Discover Card Master Trust
6.70% 02/16/00 100,000 100,906
First Chicago
6.045% 01/15/99 50,000 50,000(e)
Fleetwood Credit Grantor Trust
6.55% 05/16/11 78,255 77,594
Household Finance Corp.
8.15% 03/19/96 21,043 21,245(e)
Premier Auto Trust
6.45% 05/02/98 110,000 110,515
7.15% 02/04/99 200,000 203,374
Structured Asset Securities Corp.
6.87% 08/25/26 32,320 32,530
TLFC Equipment Lease Trust
6.40% 10/30/25 100,000 100,094
Total Asset Backed
(Cost $926,922) 928,536
Corporate Notes - 10.5%
A T & T Capital Corp.
7.59% 01/31/97 100,000 101,852
Advanta Corp.
5.125% 11/15/96 100,000 98,625
Central Maine Power Co.
7.40% 06/02/98 100,000 100,875
First USA Bank
6.88% 09/12/96 200,000 200,400
General Motors Acceptance Corp.
7.85% 11/17/97 100,000 102,926
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 168,000 176,101
Great Northern Nekoosa Corp.
9.125% 02/01/98 100,000 105,460
Lehman Brothers Holdings Inc.
6.875% 06/08/98 150,000 150,688
United CoFinancial Corp.
7.00% 07/15/98 100,000 100,489
Total Corporate Notes
(Cost $1,132,273) 1,137,416
Mortgage-Backed - 2.8%
FDIC REMIC Trust
7.85% 09/25/25
(Cost $305,177) 300,000 307,031
Total Investments in Securities
(Cost $10,786,192) 10,796,657
Short Term Investments - 4.6%
Repurchase Agreement - 4.6%
State Street Bank and Trust Co.
6.25% 10/02/95
(Cost $500,000) 500,000 500,000
(dated 9/29/95, proceeds $500,260,
collateralized by $511,478 United States
Treasury Note, 4.375%, 8/15/96)
Other Assets and Liabilities,
net (4.1%) (443,497)
NET ASSETS - 100% 10,853,160
</TABLE>
See Notes to Schedule of Investments and Financial Statements
34
GE MONEY MARKET FUND
INVESTMENT PROFILE
A mutual fund designed for investors who seek current income and
liquidity while preserving their capital by investing in
short-term, high grade money market securities.
Average Annual
Total Return
ONE SINCE
YEAR INCEPTION
GE Money Market 5.52% 4.02%
90 Day T-Bill 5.96% 4.57%
Lipper*
Performance Comparison
Based on 10/1/94 - 9/30/95
total returns
Peer group: Money Market
Number of Funds
in peer group: 251
Peer group average
total return: 4.24%
*Lipper is an independent mutual fund rating service located in
Summit, New Jersey.
See page 37 for Notes to Performance.
Past performance is no guarantee
of future results.
GE MONEY MARKET FUND
Comparison of Change in Value of a $10,000 Investment
[Graphic]
Line Chart
Data for the Line chart to follow:
<TABLE>
<CAPTION>
MONEY MARKET 90 DAY T-BILL
12/22/93
<S> <C> <C>
2/22/93* 10,000.00 -
10,005.00 10,000.00
Mar-93 10,029.01 10,031.00
10,050.07 10,054.07
10,070.17 10,076.19
Jun-93 10,094.34 10,105.41
10,116.55 10,133.71
10,140.83 10,163.09
Sep-93 10,164.15 10,190.53
10,188.55 10,217.03
10,211.98 10,244.62
Dec-93 10,236.49 10,276.37
10,260.03 10,308.23
10,282.61 10,326.79
Mar-94 10,307.28 10,359.83
10,332.02 10,388.84
10,361.98 10,424.16
Jun-94 10,393.07 10,466.90
10,427.37 10,510.86
10,462.82 10,552.90
Sep-94 10,500.49 10,595.12
10,540.39 10,640.68
10,581.50 10,680.05
Dec-94 10,628.05 10,737.72
10,678.01 10,795.70
10,723.92 10,846.44
Mar-95 10,778.61 10,901.76
10,826.04 10,957.36
10,878.00 11,014.34
Jun-95 10,928.04 11,069.41
10,979.40 11,123.65
11,029.91 11,179.27
Sep-95 11,078.44 11,226.22
</TABLE>
*INCEPTION DATE
An investment in the GE Money Market Fund is neither insured
nor guaranteed by the U.SGovernment, and no assurance can be given that
the GE Money Market Fund will be able to maintain a stable net asset value
of $1.00 per share.
Fund Yield
Fund Donoghue
7 day current 5.3% 5.3%
7 day effective 5.5% 5.4%
CURRENT YIELD represents income earned on an investment in the Money Market
Fund for a seven day period and then annualized.
EFFECTIVE YIELD is calculated similarly but is slightly higher because it
reflects the compounding effect of earnings on reinvested dividends.
35
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 1995
GE MONEY MARKET FUND
[Graphic]
Pie Chart
Data for the Line chart to follow:
GE MONEY MARKET
U.S. Government 40.9%
Commercial Paper 39.7%
Certificate of Deposit & Other 19.4%
100.0%
<TABLE>
<CAPTION>
Principal Amortized
Amount Cost
<S> <C> <C>
Short Term Investments - 107.5%
U.S. Governments - 40.9%
Federal Home Loan Bank
5.40% 03/15/96 $810,000 $789,831
5.53% 12/27/95 2,600,000 2,565,253
5.81% 11/06/95 940,000 934,539
5.91% 01/11/96 2,600,000 2,560,220
6,849,843
Federal Home Loan Mortgage Corp.
5.58% 10/02/95 2,330,000 2,329,639
5.65% 10/06/95 1,640,000 1,638,713
5.83% 10/02/95 730,000 729,882
4,698,234
Federal National Mortgage Assoc.
5.50% 02/20/96 1,690,000 1,653,336
5.55% 02/28/96 2,200,000 2,149,125
5.57% 12/12/95 2,000,000 1,977,720
5.61% 11/07/95 2,000,000 1,988,468
5.80% 11/27/95 2,250,000 2,229,337
5.83% 10/12/95 - 10/26/95
3,110,000 3,100,878
5.92% 10/10/95 170,000 169,748
5.95% 10/24/95 3,000,000 2,988,596
6.30% 10/02/95 1,540,000 1,539,731
17,796,939
Total U.S. Governments
(Cost $29,345,016) 29,345,016
Commercial Paper - 39.7%
Abbey National PLC
5.61% 10/25/95 2,600,000 2,590,276
Associates CorpNorth America
5.71% 10/27/95 2,250,000 2,240,721
Chemical Bank and Trust Company
5.62% 10/18/95 2,600,000 2,593,100
Commonwealth Bank Australia
5.65% 12/04/95 2,800,000 2,772,315
First Union Corp.
5.56% 12/14/95 2,750,000 2,718,570
Kredietbank
5.70% 01/05/96 2,800,000 2,757,883
Merrill Lynch & CoInc.
5.71% 10/02/95 2,730,000 2,729,567
Nationsbank Corp.
5.70% 11/17/95 2,600,000 2,580,652
Norwest Corp.
5.71% 10/19/95 2,750,000 2,742,149
Republic National Bank
5.56% 12/19/95 2,750,000 2,716,447
Union Bank Switzerland
6.50% 10/02/95 2,000,000 1,999,639
Total Commercial Paper
(Cost $28,441,319) 28,441,319
Certificates of Deposit(d) - 26.7%
Algemene Bank Nederland N.V.
5.73% 10/17/95 2,600,000 2,600,000
Bayerische Vereinsbank AG
5.75% 10/04/95 2,700,000 2,700,000
Credit Suisse
5.63% 12/18/95 2,750,000 2,750,000
Royal Bank of Canada
5.69% 01/02/96 2,750,000 2,750,000
Societe Generale
5.74% 12/06/95 2,700,000 2,700,000
Swiss Bank Corp.
5.65% 12/22/95 2,800,000 2,800,000
West Deutsche Landesbank
5.67% 01/04/96 2,800,000 2,800,000
Total Certificates of Deposit
(Cost $19,100,000) 19,100,000
Time Deposits - 0.2%
State Street Cayman Islands
6.50% 10/02/95
(Cost $170,000) 170,000 170,000
Total Short Term Investments
(Cost $77,056,335) 77,056,335
Other Assets and Liabilities,
net (7.5%) (5,392,347)
NET ASSETS - 100% $ 71,663,988
</TABLE>
See Notes to Schedule of Investments and Financial Statements
36
<PAGE>
NOTES TO PERFORMANCE (UNAUDITED)
Total returns assume changes in share price and reinvestment of dividends and
capital gainsInvestment returns and principal value on an investment will
fluctuate and you may have a loss or gain when you sell your shares. Classes
A and B assume the reduction of the maximum applicable sales charges as
described in Note 1 of the Notes to Financial Statements.
Shares of the GE Short-Term Government Fund are neither insured nor
guaranteed by the U.S. Government and their prices will fluctuate with market
conditions.
A portion of the GE Tax-Exempt Fund's income may be subject to state, federal
and/or alternative minimum tax. Capital gains, if any, are subject to capital
gains tax.
GEIM has agreed to waive or limit certain fees and expenses as described in
detail in the Funds' prospectus. In the absence of these waivers or expense
limits, the returns would have been reduced for all classes of each Fund by
the following amounts for all the periods depicted ended September 30, 1995:
0% to 1.5% for GE International Equity Fund, 0% to 1.5% for GE Global Equity
Fund, 0% to 2.5% for GE U.S. Equity Fund, 0% to 2.2% for GE Strategic
Investment Fund, 0% to 2.1% for GE Tax-Exempt Fund, 0% to 2.2% for GE Fixed
Income Fund, 0% to 2.3% for GE Short-Term Government Fund and 0% to .6% for
GE Money Market Fund. The 7-day current yield and 7-day effective yield for
the GE Money Market Fund would have been 4.9% and 5.0%, respectively.
The Standard & Poor's Composite Index of 500 Stocks (S&P 500), MSCI World
Index, MSCI Europe Australia Far East Index (MSCI EAFE), Lehman Brothers
Aggregate Bond Index, Lehman Brothers Municipal Bond Index, Lehman Brothers
1-3 Year Government Bond Index (LB 1-3) and the 90 Day U.S. Treasury Index
are unmanaged indices and do not reflect the actual cost of investing in the
instruments that comprise each index. The S&P 500 Index is a composite of the
prices of 500 widely held U.S. stocks recognized by investors to be
representative of the stock market in general. The MSCI World Index is a
composite of 1,577 stocks of companies in 22 countries representing the
European, Pacific Basin and American regions. The MSCI World Index is widely
used by global investors. The MSCI EAFE is a composite of 1,110 stocks of 20
companies located in Europe, Australia, New Zealand and the Far East. The
Lehman Brothers Aggregate Bond Index is a composite index of short, medium,
and long-term bond performance and is widely recognized as a barometer of the
bond market in general. The Lehman Brothers Municipal Bond Index is a
composite of investment-grade (Baa or greater), fixed-rate municipal bonds
with maturities greater than two years and is considered to be representative
of the municipal bond market. The LB 1-3 year Government Bond Index is a
composite of government and U.S. Treasury obligations with maturities of 1-3
years. The 90 Day U.S. Treasury Index is the average return on three month
U.S. Treasury Bills. The results shown for the foregoing indices assume reinve
stment of net dividends.
Broad market index returns are calculated from the nearest month end to the
Funds' inception date. The majority of the broad market returns are not
available from the Funds' commencement of investment operations through
September 30, 1995.
The specific holdings cited throughout the report are for illustrative
purposes and may not represent current or future investments of the Funds.
NOTES TO SCHEDULES OF INVESTMENTS
(a) Non-income producing security.
(b) Pursuant to Rule 144A of Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At September 30, 1995, these securities amounted to
$311,117, $450,869, $1,473,863, $239,767 and $461,791 or 0.8%, 1.2%, 0.9%,
0.5% and 1.4% of net assets for the GE International Equity, GE Global
Equity, GE U.S. Equity, GE Strategic Investment and GE Fixed Income Funds,
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
September 30, 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 notional value of the interest only
holding.
(h) Adjustable rate mortgage couponThe stated rate represents the rate at
September 30, 1995.
(i)Includes the notional value of call options written.
ABBREVIATIONS:
CURRENCY TERMS
CAD -- Canadian Dollar
ITL - Italian Lira
NZD - New Zealand Dollar
ADR - American Depository Receipt
AMBAC - AMBACIndemnity Corporation
MBIA - Municipal Bond Insurance Association
REMIC - Real Estate Mortgage Investment Conduit
TAX INFORMATION (UNAUDITED)
Of the dividends paid from net investment income by the GE Tax-Exempt Fund for
the fiscal year ended September 30, 1995, 89.49% represented exempt interest
dividends for Federal income tax purposes.
37
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
Class A Class B
GE International Equity Fund 9/30/95 9/30/94 9/30/95
9/30/94
Inception date - 3/2/94 -
3/2/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $15.18 $15.00 $15.13
$15.00
Income (loss) from investment operations:
Net investment income 0.09 0.06 0.01
0
Net realized and unrealized
gains (losses) on investments 0.64 0.12 0.64
0.13
Total income (loss) from investment
operations 0.73 0.18 0.65
0.13
Less distributions from:
Net investment income 0.04 0 0.01
0
Net realized gains 0 0 0
0
Total distributions 0.04 0 0.01
0
Net asset value, end of period $15.87 $15.18 $15.77
$15.13
TOTAL RETURN (a) 4.87% 1.20% 4.33%
0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,948 $25 $57
$34
Ratio of net investment income
to average net assets* 1.28% 1.01% 0.10%
0.47%
Ratio of expenses to average net assets* 1.60% 1.60% 2.10%
2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.95% 1.93% 3.50%
2.43%
Portfolio turnover rate 27% 6% 27%
6%
Class C Class D
GE International Equity Fund 9/30/95 9/30/94 9/30/95
9/30/94
Inception date - 3/2/94 -
3/2/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $15.19 $15.00 $15.22
$15.00
Income (loss) from investment operations:
Net investment income 0.12 0 0.12
0.1
Net realized and unrealized
gains (losses) on investments 0.65 0.19 0.7
0.12
Total income (loss) from investment operations 0.77 0.19 0.82
0.22
Less distributions from:
Net investment income 0.08 0 0.1
0
Net realized gains 0 0 0
0
Total distributions 0.08 0 0.1
0
Net asset value, end of period $15.88 $15.19 $15.94
$15.22
TOTAL RETURN (a) 5.16% 1.27% 5.45%
1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,262 $481 $32,907
$26,460
Ratio of net investment income
to average net assets* 0.83% 0.66% 0.97%
1.52%
Ratio of expenses to average net assets* 1.35% 1.35% 1.07%
1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.75% 1.68% 1.18%
1.43%
Portfolio turnover rate 27% 6% 27%
6%
<PAGE>
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
</TABLE>
<TABLE>
<CAPTION>
Class A
Class
B
GE Global Equity Fund 9/30/95 9/30/94(b) 9/30/95
9/30/94
Inception date - 12/22/93 -
12/22/93
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $19.34 $18.61 $19.32
$18.48
Income (loss) from investment operations:
Net investment income 0.1 0.03 0
(0.01)
Net realized and unrealized
gains (losses) on investments 1.22 0.91 1.23
1.06
Total income (loss) from
investment operations 1.32 0.94 1.23
1.05
Less distributions from:
Net investment income 0.09 0.01 0.02
0.01
Net realized gains 0.39 0.2 0.39
0.2
Total distributions 0.48 0.21 0.41
0.21
Net asset value, end of period $20.18 $19.34 $20.14
$19.32
TOTAL RETURN (a) 7.16% 3.09% 6.62%
5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,811 $694 $356
$128
Ratio of net investment income
to average net assets* 0.47% 0.44% (0.11%)
(0.08%)
Ratio of expenses to average net assets* 1.60% 1.60% 2.10%
2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.17% 2.02% 3.50%
2.52%
Portfolio turnover rate 46% 26% 46%
26%
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
Class C
GE Global Equity Fund 9/30/95 9/30/94
9/30/93(c)
Inception date - -
1/5/93
<S> <C> <C> <C>
Net asset value, beginning of period $19.40 $17.16
$15.00
Income (loss) from investment operations:
Net investment income 0.09 0.07
0.08
Net realized and unrealized
gains (losses) on investments 1.30 2.37
2.08
Total income (loss) from investment
operations 1.39 2.44
2.16
Less distributions from:
Net investment income 0.09 0.00
0.00
Net realized gains 0.39 0.20
0.00
Total distributions 0.48 0.20
0.00
Net asset value, end of period $20.31 $19.40
$17.16
TOTAL RETURN (a) 7.47% 14.28%
14.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $23,683 $20,432
$11,999
Ratio of net investment income
to average net assets* 0.59% 0.52%
1.00%
Ratio of expenses to average net assets* 1.35% 1.31%
1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.42% 1.77%
2.19%
Portfolio turnover rate 46% 26%
28%
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
Class D
GE Global Equity Fund 9/30/95 9/30/94
Inception date - 11/29/93
<S> <C> <C>
Net asset value, beginning of period $19.45 $17.49
Income (loss) from investment operations:
Net investment income 0.13 0.11
Net realized and unrealized
gains (losses) on investments 1.31 2.06
Total income (loss) from investment
operations 1.44 2.17
Less distributions from:
Net investment income 0.13 0.01
Net realized gains 0.39 0.20
Total distributions 0.52 0.21
Net asset value, end of period $20.37 $19.45
TOTAL RETURN (a) 7.76% 12.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,785 $10,504
Ratio of net investment income
to average net assets* 0.84% 0.82%
Ratio of expenses to average net assets* 1.10% 1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.75% 1.52%
Portfolio turnover rate 46% 26%
</TABLE>
38
<PAGE>
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
<TABLE>
<CAPTION>
Class A Class B
GE U.S. Equity Fund 9/30/95 9/30/94(b) 9/30/95
9/30/94
Inception date - 12/22/93 -
12/22/93
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $16.12 $16.48 $16.03
$16.41
Income (loss) from investment operations:
Net investment income (2.54) 3.23 0.27
0.24
Net realized and unrealized
gains (losses) on investments 6.79 (3.22) 3.78
(0.25)
Total income (loss) from investment
operations 4.25 0.01 4.05
(0.01)
Less distributions from:
Net investment income 0.00 0.20 0.28
0.20
Net realized gains 0.09 0.17 0.09
0.17
Total distributions 0.09 0.37 0.37
0.37
Net asset value, end of period $20.28 $16.12 $19.71
$16.03
TOTAL RETURN (a) 26.52% (0.86%) 25.92%
(0.09%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $15,148 $1,214 $1,563
$91
Ratio of net investment income
to average net assets* 1.85% 1.87% 1.29%
1.28%
Ratio of expenses to average net assets* 1.00% 1.00% 1.50%
1.50%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.25% 1.46% 3.50%
1.96%
Portfolio turnover rate 43% 51% 43%
51%
Class C
GE U.S. Equity Fund 9/30/95 9/30/94
9/30/93(c)
Inception date - - 1/5/93
<S> <C> <C> <C>
Net asset value, beginning of period $16.13 $16.35 $15.00
Income (loss) from investment operations:
Net investment income 0.17 1.00 0.12
Net realized and unrealized
gains (losses) on investments 4.06 (0.85) 1.23
Total income (loss) from investment operations 4.23 0.15 1.35
Less distributions from:
Net investment income 0.29 0.20 0.00
Net realized gains 0.09 0.17 0.00
Total distributions 0.38 0.37 0.00
Net asset value, end of period $19.98 $16.13 $16.35
TOTAL RETURN (a) 26.86% 0.88% 10.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $26,007 $16,382 $74,415
Ratio of net investment income
to average net assets* 2.12% 2.11% 1.86%
Ratio of expenses to average net assets* 0.75% 0.62% 0.50%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.19% 1.21% 1.34%
Portfolio turnover rate 43% 51% 15%
Class D
GE U.S. Equity Fund 9/30/95 9/30/94
Inception date - 11/29/93
<S> <C> <C>
Net asset value, beginning of period $16.16 $16.37
Income (loss) from investment operations:
Net investment income 0.38 0.32
Net realized and unrealized
gains (losses) on investments 3.88 (0.16)
Total income (loss) from investment operations 4.26 0.16
Less distributions from:
Net investment income 0.35 0.20
Net realized gains 0.09 0.17
Total distributions 0.44 0.37
Net asset value, end of period $19.98 $16.16
TOTAL RETURN (a) 27.14% 0.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $128,247 $114,885
Ratio of net investment income
to average net assets* 2.36% 2.27%
Ratio of expenses to average net assets* 0.50% 0.50%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.71% 0.96%
Portfolio turnover rate 43% 51%
Class A
Class
B
GE Strategic Investment Fund 9/30/95 9/30/94(b) 9/30/95
9/30/94
Inception date - 12/22/93 -
12/22/93
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $15.71 $16.21 $15.62
$16.14
Income (loss) from investment operations:
Net investment income 0.40 0.48 0.43
0.27
Net realized and unrealized
gains (losses) on investments 2.69 (0.65) 2.55
(0.46)
Total income (loss) from
investment operations 3.09 (0.17) 2.98
(0.19)
Less distributions from:
Net investment income 0.37 0.27 0.34
0.27
Net realized gains 0.00 0.06 0.00
0.06
Total distributions 0.37 0.33 0.34
0.33
Net asset value, end of period 18.43 15.71 18.26
15.62
TOTAL RETURN (a) 20.12% (1.32%) 19.53%
(1.25%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $8,778 $1,104 $882
$150
Ratio of net investment income
to average net assets* 2.95% 2.59% 2.46%
1.92%
Ratio of expenses to average net assets* 1.15% 1.15% 1.65%
1.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.19% 1.58% 3.50%
2.08%
Portfolio turnover rate 98% 68% 98%
68%
Class C
GE Strategic Investment Fund 9/30/95 9/30/94
9/30/93(c)
Inception date - -
1/5/93
<S> <C> <C>
<C>
Net asset value, beginning of period $15.72 $16.08
$15.00
Income (loss) from investment operations:
Net investment income 0.48 0.44
0.23
Net realized and unrealized
gains (losses) on investments 2.64 (0.48)
0.85
Total income (loss) from investment operations 3.12 (0.04)
1.08
Less distributions from:
Net investment income 0.38 0.26
0.00
Net realized gains 0.00 0.06
0.00
Total distributions 0.38 0.32
0.00
Net asset value, end of period 18.46 15.72
16.08
TOTAL RETURN (a) 20.35% (0.27%)
8.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $17,821 $13,018
$12,780
Ratio of net investment income
to average net assets* 3.21% 2.62%
2.68%
Ratio of expenses to average net assets* 0.90% 0.85%
0.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.03% 1.33%
1.65%
Portfolio turnover rate 98% 68%
20%
Class D
GE Strategic Investment Fund 9/30/95 9/30/94
Inception date - 11/29/93
Net asset value, beginning of period $15.74 $16.02
Income (loss) from investment operations:
Net investment income 0.55 0.45
Net realized and unrealized
gains (losses) on investments 2.62 (0.40)
Total income (loss) from investment operations 3.17 0.05
Less distributions from:
Net investment income 0.42 0.27
Net realized gains 0.00 0.06
Total distributions 0.42 0.33
Net asset value, end of period 18.49 15.74
TOTAL RETURN (a) 20.70% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $18,665 $17,159
Ratio of net investment income
to average net assets* 3.46% 2.93%
Ratio of expenses to average net assets* 0.65% 0.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.97% 1.08%
Portfolio turnover rate 98% 68%
39
<PAGE>
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
Class A
Class B
GE Tax-Exempt Fund 9/30/95 9/30/94(b)
9/30/95
9/30/94
Inception date - 12/22/93
- - -
12/22/93
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $11.32 $12.31
$11.32
$12.30
Income (loss) from investment operations:
Net investment income 0.53 0.39
0.47
0.34
Net realized and unrealized
gains (losses) on investments 0.46 (1.00)
0.47
(0.98)
Total income (loss) from investment operations 0.99 (0.61)
0.94
(0.64)
Less distributions from:
Net investment income 0.54 0.38
0.48
0.34
Net realized gains 0.00 0.00
0.00
0.00
Total distributions 0.54 0.38
0.48
0.34
Net asset value, end of period $11.77 $11.32
$11.78
$11.32
TOTAL RETURN (a) 8.96% (5.40%)
8.51% (5.28%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $389 $53
$689
$61
Ratio of net investment income
to average net assets* 4.54% 4.34%
3.81% 3.68%
Ratio of expenses to average net assets* 1.10% 1.10%
1.60% 1.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 3.00% 1.58%
3.50% 2.08%
Portfolio turnover rate 86% 23% 86% 23%
Class C
GE Tax-Exempt Fund 9/30/95 9/30/94
9/30/93(c)
Inception date - - 1/5/93
<S> <C> <C> <C>
Net asset value, beginning of period $11.32 $12.36 $12.00
Income (loss) from investment operations:
Net investment income 0.57 0.54 0.33
Net realized and unrealized
gains (losses) on investments 0.45 (1.06) 0.36
Total income (loss) from investment operations 1.02 (0.52) 0.69
Less distributions from:
Net investment income 0.57 0.52 0.33
Net realized gains 0.00 0.00 0.00
Total distributions 0.57 0.52 0.33
Net asset value, end of period $11.77 $11.32 $12.36
TOTAL RETURN (a) 9.23% (4.30%)
5.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $6,816 $6,917 $10,136
Ratio of net investment income
to average net assets* 4.94% 4.41%
3.56%
Ratio of expenses to average net assets* 0.85% 0.79%
0.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.18% 1.33%
1.53%
Portfolio turnover rate 86% 23%
29%
Class D
GE Tax-Exempt Fund 9/30/95 9/30/94
Inception date - 11/29/93
<S> <C> <C>
Net asset value, beginning of period $11.32 $12.11
Income (loss) from investment operations:
Net investment income 0.60 0.47
Net realized and unrealized
gains (losses) on investments 0.46 (0.80)
Total income (loss) from investment operations 1.06 (0.33)
Less distributions from:
Net investment income 0.60 0.46
Net realized gains 0.00 0.00
Total distributions 0.60 0.46
Net asset value, end of period $11.78 $11.32
TOTAL RETURN (a) 9.59% (2.80%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,905 $4,995
Ratio of net investment income
to average net assets* 5.20% 4.65%
Ratio of expenses to average net assets* 0.60% 0.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.47% 1.08%
Portfolio turnover rate 86% 23%
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
Class A Class
B
GE Fixed Income Fund 9/30/95 9/30/94(b) 9/30/95
9/30/94
Inception date - 12/22/93 -
12/22/93
<S> <C> <C> <C>
<C>
Net asset value, beginning of period $11.27 $12.19 $11.26
$12.15
Income (loss) from investment operations:
Net investment income 0.73 0.47 0.65
0.42
Net realized and unrealized
gains (losses) on investments 0.63 (0.84) 0.66
(0.81)
Total income (loss) from investment
operations 1.36 (0.37) 1.31
(0.39)
Less distributions from:
Net investment income 0.72 0.47 0.66
0.42
Net realized gains 0.00 0.08 0.00
0.08
Total distributions 0.72 0.55 0.66
0.50
Net asset value, end of period $11.91 $11.27 $11.91
$11.26
TOTAL RETURN (a) 12.48% (3.02%) 11.98%
(3.31%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $5,400 $26,023 $234
$65
Ratio of net investment income
to average net assets* 6.22% 5.37% 5.57%
4.83%
Ratio of expenses to average net assets* 1.08% 1.10% 1.60%
1.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.18% 1.51% 3.50%
2.01%
Portfolio turnover rate 315% 298% 315%
298%
Class C
GE Fixed Income Fund 9/30/95 9/30/94 9/30/93(c)
Inception date - - 1/5/93
<S> <C> <C> <C>
Net asset value, beginning of period $11.27 $12.31 $12.00
Income (loss) from investment operations:
Net investment income 0.73 0.61 0.36
Net realized and unrealized
gains (losses) on investments 0.67 (0.96) 0.31
Total income (loss) from investment
operations 1.40 (0.35) 0.67
Less distributions from:
Net investment income 0.75 0.61 0.36
Net realized gains 0.00 0.08 0.00
Total distributions 0.75 0.69 0.36
Net asset value, end of period $11.92 $11.27 $12.31
TOTAL RETURN (a) 12.81% (2.97%) 5.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $21,401 $13,600 $11,485
Ratio of net investment income
to average net assets* 6.37% 5.22% 3.87%
Ratio of expenses to average net assets* 0.85% 0.79% 0.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.95% 1.26% 1.63%
Portfolio turnover rate 315% 298% 68%
Class D
GE Fixed Income Fund 9/30/95 9/30/94
Inception date - 11/29/93
<S> <C> <C>
Net asset value, beginning of period $11.27 $12.17
Income (loss) from investment operations:
Net investment income 0.77 0.55
Net realized and unrealized
gains (losses) on investments 0.65 (0.83)
Total income (loss) from investment
operations 1.42 (0.28)
Less distributions from:
Net investment income 0.77 0.54
Net realized gains 0.00 0.08
Total distributions 0.77 0.62
Net asset value, end of period $11.92 $11.27
TOTAL RETURN (a) 13.10% (2.34%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $6,642 $2,732
Ratio of net investment income
to average net assets* 6.57% 5.40%
Ratio of expenses to average net assets* 0.59% 0.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.50% 1.01%
Portfolio turnover rate 315% 298%
</TABLE>
See Notes to Financial Highlights and Financial Statements
40
<PAGE>
Financial Highlights
Selected data based on a share outstanding
throughout the period(s) indicated
<TABLE>
<CAPTION>
Class A Class B
GE Short-Term Government Fund 9/30/95 9/30/94 9/30/95
9/30/94
Inception date - 3/2/94 -
3/2/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.72 $12.00 $11.72
$12.00
Income (loss) from investment operations:
Net investment income 0.64 0.35 0.59
0.33
Net realized and unrealized
gains (losses) on investments 0.21 (0.30) 0.21
(0.31)
Total income from investment
operations 0.85 0.05 0.80
0.02
Less distributions from:
Net investment income 0.66 0.33 0.62
0.30
Net realized gains 0.00 0.00 0.00
0.00
Total distributions 0.66 0.33 0.62
0.30
Net asset value, end of period $11.91 $11.72 $11.90
$11.72
TOTAL RETURN (a) 7.48% 0.40% 7.01%
0.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $285 $35 $83
$25
Ratio of net investment income
to average net assets* 5.27% 4.75% 5.07%
4.38%
Ratio of expenses to average net assets* 0.95% 0.95% 1.30%
1.30%
Ratio of expenses to average net assets
before voluntary expense limitation* 3.00% 1.71% 3.35%
2.06%
Portfolio turnover rate 415% 146% 415%
146%
Class C Class D
GE Short-Term Government Fund 9/30/95 9/30/94 9/30/95
9/30/94
Inception date - 3/2/94 -
3/2/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.72 $12.00 $11.72
$12.00
Income (loss) from investment operations:
Net investment income 0.66 0.36 0.69
0.39
Net realized and unrealized
gains (losses) on investments 0.22 (0.30) 0.21
(0.31)
Total income from investment operations 0.88 0.06 0.90
0.08
Less distributions from:
Net investment income 0.69 0.34 0.72
0.36
Net realized gains 0.00 0.00 0.00
0.00
Total distributions 0.69 0.34 0.72
0.36
Net asset value, end of period $11.91 $11.72 $11.90
$11.72
TOTAL RETURN (a) 7.74% 0.53% 7.92%
0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $2,437 $287 $8,048
$7,822
Ratio of net investment income
to average net assets* 5.62% 5.18% 5.89%
5.32%
Ratio of expenses to average net assets* 0.70% 0.70% 0.45%
0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.84% 1.46% 0.98%
1.21%
Portfolio turnover rate 415% 146% 415%
146%
GE Money Market Fund 9/30/95 9/30/94
9/30/93(c)
Inception date - -
1/5/93
<S> <C> <C>
<C>
Net asset value, beginning of period $1.00 $1.00
$1.00
Income (loss) from investment operations:
Net investment income 0.05 0.03
0.02
Net realized and unrealized
gains (losses) on investments 0.00 0.00
0.00
Total income from investment operations 0.05 0.03
0.02
Less distributions from:
Net investment income 0.05 0.03
0.02
Net realized gains 0.00 0.00
0.00
Total distributions 0.05 0.03
0.02
Net asset value, end of period $1.00 $1.00
$1.00
TOTAL RETURN (a) 5.52% 3.31%
1.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $71,664 $53,607
$17,197
Ratio of net investment income
to average net assets* 5.32% 3.41%
2.27%
Ratio of expenses to average net assets* 0.45% 0.45%
0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.70% 1.04%
1.48%
</TABLE>
Notes to Financial Highlights
(a) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains, and assume no sales
charge. Had the advisor not absorbed a portion of expenses,
total return would have been lower. Periods less than
one year are not annualized.
(b) Per share information is for the period since inception through
September 30, 1994, and the total return information is for
the period January 1, 1994, commencement of investment
operations, through September 30, 1994.
(c) Per share information is for the period since inception through
September 30, 1993, and the total return information is for
the period February 22, 1993, commencement of investment
operations, through September 30, 1993,
except for GE Tax-Exempt Fund, which is from February 26, 1993 through
September 30, 1993.
* Annualized for periods less than one year.
41
<PAGE>
Statements Of Assets
And Liabilities September 30, 1995
<TABLE>
<CAPTION>
GE GE
GE
INTERNATIONAL GLOBAL
U.S.
EQUITY EQUITY
EQUITY
FUND FUND
FUND
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost
$33,631,107, $30,630,345, $130,871,941,
$36,360,542, $9,560,487, $32,349,090,
$10,786,192, and $0, respectively) $35,720,081 $34,675,677
$159,185,554
Short term investments (at amortized cost) 2,099,948 2,049,533
11,384,182
Cash 1,490 30,983
46,817
Foreign currency (cost $15,833, $161,811,
$66, $231,311, $0, $183, $0, and $0,
respectively) 15,686 159,465
66
Receivable for investments sold 115,281 0
519,428
Income receivables 110,018 93,852
382,490
Receivable for fund shares sold 144,975 42,063
393,416
Deferred organizational costs 66,643 46,199
71,641
Total assets 38,274,122 37,097,772
171,983,594
LIABILITIES
Options written, at market (premiums
received $0, $0, $11,280, $73,981,
$0, $0, $0, and $0, respectively) 0 0
15,600
Distributions payable to shareholders 0 0
0
Payable for investments purchased 0 311,831
599,248
Payable for fund shares repurchased 0 68,790
254,052
Payable to GEIM 100,468 82,541
140,208
Variation margin payable 0 0
9,000
Total liabilities 100,468 463,162
1,018,108
NET ASSETS $38,173,654 $36,634,610
$170,965,486
NET ASSETS CONSIST OF:
Capital paid in $36,253,802 $31,995,667
$139,138,916
Undistributed net investment income 218,407 78,059
2,397,013
Accumulated net realized gain (loss) (390,458) 517,609
1,121,011
Net unrealized appreciation/(depreciation) on:
Investments 2,088,974 4,045,332
28,313,613
Futures 0 0
(1,050)
Written options 0 0
(4,320)
Foreign currency transactions 2,929 (2,057)
303
NET ASSETS 38,173,654 36,634,610
170,965,486
Class A:
Net assets $3,948,490 $2,811,266
$15,148,097
Shares outstanding ($.001 par value) $248,736 $139,305
$746,994
Net asset value per class A share $16 $20
$20
Maximum offering price per class A share $17 $21
$21
Class B:
Net assets $56,868 $355,714
$1,563,056
Shares outstanding ($.001 par value) 3,605 17,660
79,311
Net asset value per class B share* $15.77 $20.14
$19.71
Class C:
Net assets $1,261,761 $23,682,877
$26,007,230
Shares outstanding ($.001 par value) 79,457 1,166,038
1,301,573
Net asset value per class C share $15.88 $20.31
$19.98
Class D:
Net assets $32,906,535 $9,784,753
$128,247,103
Shares outstanding ($.001 par value) 2,064,695 480,365
6,417,653
Net asset value per class D share $15.94 $20.37
$19.98
</TABLE>
* Redemption price per share is equal to net asset
value per share less any applicable contingent deferred sales charge.
** GE Money Market Fund is a no load fund offering
only one class of shares to all investors.
42
<PAGE>
Statements Of Assets
And Liabilities September 30, 1995
<TABLE>
<CAPTION>
GE GE
GE
STRATEGIC TAX-
FIXED
INVESTMENT EXEMPT
INCOME
FUND FUND
FUND
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost
$33,631,107, $30,630,345, $130,871,941,
$36,360,542, $9,560,487, $32,349,090,
$10,786,192, and $0, respectively) $41,805,683 $9,870,413
$32,840,335
Short term investments (at amortized cost) 5,828,496 1,719,439
1,689,965
Cash 52,322 15,740
42,550
Foreign currency (cost $15,833, $161,811,
$66, $231,311, $0, $183, $0,
and $0, respectively) 231,277 0
183
Receivable for investments sold 247,178 0
195,999
Income receivables 263,449 185,422
537,253
Receivable for fund shares sold 188,324 20,558
262,722
Deferred organizational costs 46,199 37,719
54,680
Total assets 48,662,928 11,849,291
35,623,687
LIABILITIES
Options written, at market (premiums
received $0, $0, $11,280, $73,981,
$0, $0, $0, and $0, respectively) 112,125 0
0
Distributions payable to shareholders 0 3,716
16,822
Payable for investments purchased 2,270,582 0
1,823,083
Payable for fund shares repurchased 63,964 2,868
36,566
Payable to GEIM 70,041 43,553
70,504
Variation margin payable 0 0
0
Total liabilities 2,516,712 50,137
1,946,975
NET ASSETS $46,146,216 $11,799,154
$33,676,712
NET ASSETS CONSIST OF:
Capital paid in $39,656,859 $12,124,125
$35,891,842
Undistributed net investment income 955,672 32,478
47,858
Accumulated net realized gain (loss) 130,995 (667,375)
(2,756,509)
Net unrealized appreciation/(depreciation) on:
Investments 5,445,141 309,926
491,245
Futures 0 0
0
Written options (38,144) 0
0
Foreign currency transactions (4,307) 0
2,276
NET ASSETS $46,146,216 $11,799,154
$33,676,712
Class A:
Net assets $8,777,681 $388,799
$5,400,280
Shares outstanding ($.001 par value) 476,280 33,026
453,496
Net asset value per class A share $18 $12
$12
Maximum offering price per class A share $19 $12
$12
Class B:
Net assets $881,989 $688,958
$233,664
Shares outstanding ($.001 par value) 48,294 58,507
19,622
Net asset value per class B share* $18 $12
$12
Class C:
Net assets $17,821,257 $6,816,453
$21,400,773
Shares outstanding ($.001 par value) 965,483 578,911
1,795,713
Net asset value per class C share $18 $12
$12
Class D:
Net assets $18,665,289 $3,904,944
$6,641,995
Shares outstanding ($.001 par value) 1,009,556 331,608
557,325
Net asset value per class D share $18 $12
$12
GE GE
SHORT-TERM MONEY
GOVERNMENT MARKET
FUND FUND**
<S> <C> <C>
ASSETS
Investments in securities, at market (cost
$33,631,107, $30,630,345, $130,871,941,
$36,360,542, $9,560,487, $32,349,090,
$10,786,192, and $0, respectively) $10,796,657 $0
Short term investments (at amortized cost) 500,000 77,056,335
Cash 10,191 4,964
Foreign currency (cost $15,833, $161,811,
$66, $231,311, $0, $183, $0, and $0, respectively) 0 0
Receivable for investments sold 0 0
Income receivables 142,815 89,491
Receivable for fund shares sold 12,035 394,508
Deferred organizational costs 66,643 37,719
Total assets 11,528,341 77,583,017
LIABILITIES
Options written, at market (premiums
received $0, $0, $11,280, $73,981,
$0, $0, $0, and $0, respectively) 0 0
Distributions payable to shareholders 527 10,626
Payable for investments purchased 592,134 5,530,198
Payable for fund shares repurchased 14,331 314,626
Payable to GEIM 68,189 63,579
Variation margin payable 0 0
Total liabilities 675,181 5,919,029
NET ASSETS $10,853,160 $71,663,988
NET ASSETS CONSIST OF:
Capital paid in $10,786,370 $71,634,826
Undistributed net investment income 15,666 32,532
Accumulated net realized gain (loss) 40,659 (3,370)
Net unrealized appreciation/(depreciation) on:
Investments 10,465 0
Futures 0 0
Written options 0 0
Foreign currency transactions 0 0
NET ASSETS $10,853,160 $71,663,988
Class A:
Net assets $285,229 $0
Shares outstanding ($.001 par value) 23,954 0
Net asset value per class A share $12 $0
Maximum offering price per class A share $12 $0
Class B:
Net assets $83,183 $0
Shares outstanding ($.001 par value) 6,991 0
Net asset value per class B share* $12 $0
Class C:
Net assets $2,437,321 $71,663,988
Shares outstanding ($.001 par value) 204,577 71,667,430
Net asset value per class C share $12 $1
Class D:
Net assets $8,047,427 $0
Shares outstanding ($.001 par value) 676,084 0
Net asset value per class D share $12 $0
</TABLE>
* Redemption price per share is equal to net asset
value per share less any applicable contingent deferred sales charge.
** GE Money Market Fund is a no load fund offering
only one class of shares to all investors.
43
<PAGE>
Statements Of Operations
For the year ended September 30, 1995
<TABLE>
<CAPTION>
GE GE
GE
INTERNATIONAL GLOBAL
U.S.
EQUITY EQUITY
EQUITY
FUND FUND
FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $604,977 $594,633
$3,408,14
Interest 84,992 109,663
645,542
Less: Foreign taxes withheld (65,096) (55,429)
(28,071)
Total income 624,873 648,867
4,025,611
Expenses:
Advisory and administration fees 237,427 249,803
563,259
Distribution fees
Class A 10,119 8,071
36,024
Class B 540 2,653
4,306
Class C 2,116 55,247
49,115
Blue Sky
Class A 8,907 8,708
10,129
Class B 7,849 7,976
7,917
Class C 11,288 25,767
19,042
Class D 26,727 14,212
58,537
Transfer agent
Class A 1,082 2,490
1,932
Class B 966 2,780
2,585
Class C 2,451 53,649
40,996
Class D 7,052 562
7,536
TrusteesO fees 3,277 3,871
16,084
Custody and accounting 7,341 8,671
36,028
Professional fees 39,328 46,451
193,011
Registration 2,910 3,437
14,281
Amortization of deferred organization
expense 18,346 19,403
30,016
Other 11,189 13,172
51,359
Total expenses before waiver 398,915 526,923
1,142,157
Less: Expenses waived or borne by
the advisor (66,501) (94,488)
(348,302)
Net expenses 332,414 432,435
793,855
Net investment income 292,459 216,432
3,231,756
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain (loss) on:
Investments (288,759) 514,484
630,339
Futures 0 0
1,033,381
Written options 0 0
1,100
Foreign currency transactions (49,158) (98,992)
4,209
Increase (decrease) in unrealized
appreciation/depreciation on:
Investments 1,715,497 1,775,941
29,026,716
Futures 0 0
9,791
Written options 0 0
(4,548)
Foreign currency transactions 922 (4,287)
(778)
Net realized and unrealized gain
(loss) on investments 1,378,502 2,187,146
30,700,210
Net increase (decrease) in net assets
resulting from operations $1,670,961 $2,403,578
$33,931,966
</TABLE>
See Notes to Financial Statements.
44
<PAGE>
Statements Of Operations
For the year ended September 30, 1995
<TABLE>
<CAPTION>
GE GE GE
STRATEGIC TAX- FIXED
INVESTMENT EXEMPT INCOME
FUND FUND FUND
<C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $483,508 $0 $0
Interest 1,028,253 632,890 1,755,196
Less: Foreign
taxes withheld (13,925) 0 0
Total income 1,497,836 632,890 1,755,196
Expenses:
Advisory and
administration
fees 127,625 38,285 85,281
Distribution fees
Class A 22,649 657 25,003
Class B 3,759 1,287 1,294
Class C 37,791 15,860 42,616
Blue Sky
Class A 10,107 7,926 11,908
Class B 7,963 7,892 7,895
Class C 20,580 18,954 24,146
Class D 18,618 13,722 8,759
Transfer agent
Class A 1,566 613 731
Class B 2,032 387 850
Class C 30,708 11,899 25,074
Class D 2,587 323 472
TrusteesO fees 4,059 1,310 2,631
Custody and
accounting 9,095 2,934 5,892
Professional fees 48,723 15,718 31,567
Registration 3,605 1,163 2,336
Amortization of deferred organization
expense 19,403 15,865 22,941
Other 13,516 4,643 9,171
Total expenses
before waiver 384,386 159,438 308,567
Less: Expenses waived or borne by
the advisor (83,026) (76,006) (95,425)
Net expenses 301,360 83,432 213,142
Net investment
income 1,196,476 549,458 1,542,054
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain (loss) on:
Investments 257,640 (518,751) (930,937)
Futures 73,975 0 22,126
Written options (38,503) 0 742
Foreign currency
transactions 3,415 0 (3,438)
Increase (decrease) in unrealized
appreciation/depreciation on:
Investments 5,619,577 926,079 1,960,231
Futures 0 0 562
Written options (35,258) 0 2,886
Foreign currency
transactions (4,667) 0 690
Net realized and
unrealized gain
(loss) on
investments 5,876,179 407,328 1,052,862
Net increase (decrease)
in net assets
resulting from
operations $7,072,655 $956,786 $2,594,916
Statements Of Operations
For the year ended September 30, 1995
GE GE
SHORT-TERM MONEY
GOVERNMENT MARKET
FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends $0 $0
Interest 600,649 3,756,623
Less: Foreign taxes
withheld 0 0
Total income 600,649 3,756,623
Expenses:
Advisory and
administration fees 28,438 161,393
Distribution fees
Class A 453 0
Class B 337 0
Class C 3,737 0
Blue Sky
Class A 7,878 0
Class B 7,867 0
Class C 12,551 46,948
Class D 19,521 0
Transfer agent
Class A 492 0
Class B 464 0
Class C 1,592 82,743
Class D 302 0
TrusteesO fees 1,083 7,684
Custody and accounting 2,425 17,212
Professional fees 12,992 92,210
Registration 961 6,823
Amortization of deferred organization
expense 18,346 15,865
Other 4,141 24,660
Total expenses
before waiver 123,580 455,538
Less: Expenses waived or borne by
the advisor (76,414) (165,031)
Net expenses 47,166 290,507
Net investment income 553,483 3,466,116
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain (loss) on:
Investments 93,023 0
Futures 0 0
Written options (547) 0
Foreign currency transactions 0 0
Increase (decrease) in unrealized
appreciation/depreciation on:
Investments 87,066 0
Futures 0 0
Written options 0 0
Foreign currency transactions 0 0
Net realized and unrealized gain
(loss) on investments 179,542 0
Net increase (decrease) in net assets
resulting from operations $733,025 $3,466,116
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
Statement Of Changes
In Net Assets
<TABLE>
<CAPTION>
GE GE
INTERNATIONAL GLOBAL
EQUITY EQUITY
FUND FUND
Year Ended Period Ended Year Ended
Year Ended
September 30, September 30, September 30,
September 30,
1995 1994* 1995
1994
<S> <C> <C> <C>
<C>
INCREASE IN NET ASSETS
Operations:
Net investment income $292,459 $230,409 $216,432
$141,473
Net realized gain (loss)
on investments,
futures, written options,
and foreign currency
transactions (337,917) (216,886) 415,492
679,898
Net increase (decrease)
in unrealized
appreciation/
depreciation 1,716,419 375,484 1,771,654
1,409,525
Net increase (decrease)
from operations 1,670,961 389,007 2,403,578
2,230,896
Distributions to
shareholders from:
Net investment income
Class A (85) 0 (4,762)
0
Class B (45) 0 (213)
(31)
Class C (4,356) 0 (101,076)
(2,565)
Class D (171,765) 0 (77,394)
(2,823)
Net realized gains
Class A 0 0 (19,779)
(8)
Class B 0 0 (4,264)
(756)
Class C 0 0 (446,448)
(111,868)
Class D 0 0 (229,385)
(69,949)
Total distributions (176,251) 0 (883,321)
(188,000)
Increase (decrease) in net
assets from
operations and
distributions 1,494,710 389,007 1,520,257
2,042,896
Share transactions:
Proceeds from sale of shares
Class A 4,108,324 25,100 2,331,228
752,279
Class B 65,940 33,992 260,340
125,650
Class C 1,027,313 511,129 6,650,382
14,612,569
Class D 17,424,643 26,075,100 3,165,696
9,849,901)**
Value of distributions reinvested
Class A 85 0 24,540 8
Class B 45 0 4,476 786
Class C 4,212 0 533,926 114,350
Class D 171,765 0 306,780 72,772
Cost of shares redeemed
Class A (576,926) (4) (374,151)
(64,307)
Class B (46,018) (4) (58,967) (379)
Class C (295,940) (33,754) (5,042,589)
(7,619,985)**
Class D (12,205,061) (4) (4,445,663)
(127,067)
Net increase
(decrease) from
share transactions 9,678,382 26,611,555 3,355,998
17,716,577
Total increase (decrease)
in net assets 11,173,092 27,000,562 4,876,255
19,759,473
NET ASSETS
Beginning of period 27,000,562 0 31,758,355
11,998,882
End of period $38,173,654 $27,000,562 $36,634,610
$31,758,355
Undistributed net investment
income, end of period $218,407 $173,667 $78,059
$154,184
</TABLE>
<TABLE>
GE
U.S.
EQUITY
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income $3,231,756 $2,351,641
Net realized gain (loss)
on investments,
futures, written options, and
foreign currency transactions 1,669,029 859,952
Net increase (decrease)
in unrealized
appreciation/depreciation 29,031,181 (3,277,388)
Net increase (decrease)
from operations 33,931,966 (65,795)
Distributions to shareholders from:
Net investment income
Class A 0 (9)
Class B (2,872) (236)
Class C (300,089) (129,607)
Class D (2,525,130) (812,755)
Net realized gains
Class A (12,003) (7)
Class B (914) (203)
Class C (94,068) (113,242)
Class D (647,519) (698,648)
Total distributions (3,582,595) (1,754,707)
Increase (decrease) in net assets from
operations and distributions 30,349,371 (1,820,502)
Share transactions:
Proceeds from sale of shares
Class A 12,433,013 32,034,641
Class B 1,432,986 116,902
Class C 8,583,711 10,001,430
Class D 66,777,376 140,715,949)**
Value of distributions reinvested
Class A 12,000 15
Class B 3,784 588
Class C 386,529 38,560
Class D 3,144,247 1,511,402
Cost of shares redeemed
Class A (680,682) (29,177,900)
Class B (80,582) (25,119)
Class C (3,885,378) (68,193,656)**
Class D (80,082,954) (27,244,780)
Net increase (decrease) from
share transactions 8,044,050 59,978,032
Total increase (decrease)
in net assets 38,393,421 58,157,530
NET ASSETS
Beginning of period 132,572,065 74,414,535
End of period $170,965,486 $132,572,065
Undistributed net investment
income, end of period $2,397,013 $2,004,484
</TABLE>
*See Note 1 to Financial Statements for
FundsO inception date.
** Includes non-taxable transfers which occurred during
the Funds transition to a multiple class distribution system.
*** GE Money Market is a no load Fund offering only
one class of shares to all investors.
See Notes to Financial Statements.
46
<PAGE>
Statement Of Changes
In Net Assets
<TABLE>
<CAPTION>
GE GE
STRATEGIC TAX-
INVESTMENT EXEMPT
FUND FUND
Year Ended Year Ended Year Ended
Year Ended
September 30, September 30, September 30,
September 30,
1995 1994 1995
1994
<S> <C> <C> <C>
<C>
INCREASE IN NET ASSETS
Operations:
Net investment income $1,196,476 $637,203 $549,458
$524,980
Net realized gain (loss)
on investments,
futures, written options, and
foreign currency
transactions 296,527 (156,153) (518,751)
(91,734)
Net increase (decrease) in unrealized
appreciation/depreciation 5,579,652 (570,088) 926,079
(941,698)
Net increase (decrease)
from operations 7,072,655 (89,038) 956,786
(508,452)
Distributions to shareholders from:
Net investment income
Class A (29,230) (12) (5,971)
(1,323)
Class B (5,064) (1,304) (4,896)
(1,493)
Class C (340,668) (166,824) (313,359)
(323,627)
Class D (460,723) (97,584) (225,257)
(198,537)
Net realized gains
Class A 0 (3) 0
0
Class B 0 (284) 0
0
Class C 0 (36,780) 0
0
Class D 0 (21,263) 0
0
Total distributions (835,685) (324,054) (549,483)
(524,980)
Increase (decrease) in
net assets from
operations and
distributions 6,236,970 (413,092) 407,303
(1,033,432)
Share transactions:
Proceeds from sale of shares
Class A 7,182,929 1,228,698 332,712
55,963
Class B 786,579 151,784 629,874
64,077
Class C 4,463,118 7,959,910 1,118,157
3,489,161
Class D 7,201,248 18,228,367)** 0
5,237,149)**
Value of distributions reinvested
Class A 29,239 14 3,506
1,322
Class B 5,063 1,695 4,370
1,491
Class C 327,979 198,570 257,523
258,277
Class D 460,719 120,436 225,255 198,548
Cost of shares redeemed
Class A (535,113) (99,749) (2,873) (504)
Class B (131,483) (204) (10,148) (4)
Class C (2,565,433) (7,625,660)** (1,692,201)
(6,282,502)**
Class D (8,746,818) (1,099,610) (1,500,060)
(100,005)
Net increase (decrease) from
share transactions 8,478,027 19,064,251 (633,885)
2,922,973
Total increase (decrease)
in net assets 14,714,997 18,651,159 (226,582)
1,889,541
NET ASSETS
Beginning of period 31,431,219 12,780,060 12,025,736
10,136,195
End of period $46,146,216 $31,431,219 $11,799,154
$12,025,736
Undistributed net investment
income, end of period $955,672 $560,399 $32,478 $20,088
GE GE
FIXED SHORT-TERM
INCOME GOVERNMENT
FUND FUND
Year Ended Year Ended Year Ended
Period Ended
September 30, September 30, September 30,
September 30,
1995 1994 1995
1994*
<S> <C> <C> <C>
<C>
INCREASE IN NET ASSETS
Operations:
Net investment income $1,542,054 $1,744,360 $553,483
$216,594
Net realized gain (loss)
on investments,
futures, written
options, and
foreign currency
transactions (911,507) (1,807,949) 92,476
(51,817)
Net increase (decrease)
in unrealized
appreciation/
depreciation 1,964,369 (1,624,120) 87,066
(76,601)
Net increase (decrease)
from operations 2,594,916 (1,687,709) 733,025
88,176
Distributions to shareholders from:
Net investment income
Class A (306,883) (989,196) (4,851)
(916)
Class B (7,292) (1,542) (2,070)
(643)
Class C (1,099,467) (594,926) (86,748)
(5,736)
Class D (142,189) (158,696) (480,304)
(209,278)
Net realized gains
Class A 0 (5) 0
0
Class B 0 (5) 0
0
Class C 0 (55,199) 0
0
Class D 0 (34,689) 0
0
Total distributions (1,555,831) (1,834,258) (573,973)
(216,573)
Increase (decrease)
in net assets from
operations and
distributions 1,039,085 (3,521,967) 159,052
(128,397)
Share transactions:
Proceeds from sale of shares
Class A 5,700,365 30,283,920 247,621
35,100
Class B 255,439 77,037 70,000
25,800
Class C 8,923,222 11,029,767 2,185,367
376,164
Class D 6,272,781 6,045,011)** 167,065
7,896,433
Value of distributions reinvested
Class A 300,894 988,464 4,195
915
Class B 6,850 1,521 2,041
637
Class C 912,679 539,267 84,867
5,371
Class D 141,112 213,313 480,184
209,250
Cost of shares redeemed
Class A (26,636,640) (3,027,817) (3,158)
(4)
Class B (100,613) (9,861) (15,199)
(503)
Class C (3,031,354) (8,424,499)** (152,811)
(91,740)
Class D (2,526,883) (3,259,038) (544,992)
(160,098)
Net increase (decrease) from
share transactions (9,782,148) 34,457,085 2,525,180
8,297,325
Total increase (decrease)
in net assets (8,743,063) 30,935,118 2,684,232
8,168,928
NET ASSETS
Beginning of period 42,419,775 11,484,657 8,168,928
0
End of period $33,676,712 $42,419,775 $10,853,160
$8,168,928
Undistributed net investment
income, end of period $47,858 $29,935 $15,666
$17,810
GE
MONEY
MARKET
FUND***
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income $3,466,116 $1,111,339
Net realized gain (loss) on investments,
futures, written options, and
foreign currency transactions 0 (3,370)
Net increase (decrease) in unrealized
appreciation/depreciation 0 0
Net increase (decrease)
from operations 3,466,116 1,107,969
Distributions to shareholders from:
Net investment income
Class A 0 0
Class B 0 0
Class C (3,466,116) (1,111,339)
Class D 0 0
Net realized gains
Class A 0 0
Class B 0 0
Class C 0 0
Class D 0 0
Total distributions (3,466,116) (1,111,339)
Increase (decrease)
in net assets from
operations and distributions 0 (3,370)
Share transactions:
Proceeds from sale of shares
Class A 0 0
Class B 0 0
Class C 185,442,103 156,933,180
Class D 0 0
Value of distributions reinvested
Class A 0 0
Class B 0 0
Class C 3,344,476 1,086,335
Class D 0 0
Cost of shares redeemed
Class A 0 0
Class B 0 0
Class C (170,729,355) (121,606,273)
Class D 0 0
Net increase (decrease) from
share transactions 18,057,224 36,413,242
Total increase (decrease)
in net assets 18,057,224 36,409,872
NET ASSETS
Beginning of period 53,606,764 17,196,892
End of period $71,663,988 $53,606,764
Undistributed net investment
income, end of period $32,532 $20,087
</TABLE>
* See Note 1 to Financial Statements for
FundsO inception date.
** Includes non-taxable transfers which occurred during
the Funds transition to a multiple class distribution system.
*** GE Money Market is a no load Fund offering only
one class of shares to all investors.
See Notes to Financial Statements.
47
<PAGE>
Changes In Fund Shares
<TABLE>
<CAPTION>
GE
INTERNATIONAL
EQUITY
FUND
Year Ended Period Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 284,516 1,673
Issued for distributions reinvested 6 0
Shares redeemed (37,459) 0
Net increase (decrease)
in Fund shares 247,063 1,673
CLASS B:
Shares sold by subscription 4,284 2,259
Issued for distributions reinvested 3 0
Shares redeemed (2,941) 0
Net increase (decrease) in
Fund shares 1,346 2,259
CLASS C:
Shares sold by subscription 67,513 33,825
Issued for distributions reinvested 295 0
Shares redeemed (20,008) (2,168)
Net increase (decrease)
in Fund shares 47,800 31,657
CLASS D:
Shares sold by subscription 1,129,189 1,738,340
Issued for distributions
reinvested 11,978 0
Shares redeemed (814,812) 0
Net increase (decrease)
in Fund shares 326,355 1,738,340
GE
GLOBAL
EQUITY
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 121,585 39,387
Issued for distributions reinvested 1,382 0
Shares redeemed (19,572) (3,477)
Net increase (decrease) in
Fund shares 103,395 35,910
CLASS B:
Shares sold by subscription 13,889 6,597
Issued for distributions reinvested 252 42
Shares redeemed (3,099) (21)
Net increase (decrease) in
Fund shares 11,042 6,618
CLASS C:
Shares sold by subscription 349,633 818,966
Issued for distributions reinvested 30,042 6,098
Shares redeemed (266,651) (471,480)*
Net increase (decrease) in
Fund shares 113,024 353,584
CLASS D:
Shares sold by subscription 167,151 542,827)*
Issued for distributions reinvested 17,187 3,879
Shares redeemed (244,112) (6,567)
Net increase (decrease) in Fund
shares (59,774) 540,139
GE
U.S.
EQUITY
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 708,859 1,916,504
Issued for distributions
reinvested 760 1
Shares redeemed (37,975) (1,841,155)
Net increase (decrease)
in Fund shares 671,644 75,350
CLASS B:
Shares sold by subscription 77,863 7,223
Issued for distributions reinvested 246 27
Shares redeemed (4,451) (1,597)
Net increase (decrease)
in Fund shares 73,658 5,653
CLASS C:
Shares sold by subscription 489,072 682,358
Issued for distributions
reinvested 24,846 14,622
Shares redeemed (227,802) (4,233,742)*
Net increase (decrease)
in Fund shares 286,116 (3,536,762)
CLASS D:
Shares sold by subscription 3,838,354 8,731,494)*
Issued for distributions
reinvested 202,724 92,781
Shares redeemed (4,733,502) (1,714,198)
Net increase (decrease)
in Fund shares (692,424) 7,110,077
</TABLE>
* Includes non-taxable transfers which occurred during the
Funds transition to a multiple class distribution system.
** GE Money Market Fund is a no load Fund offering only one
class of shares to all investors.
See Notes to Financial Statements.
48
<PAGE>
Changes In Fund Shares
<TABLE>
<CAPTION>
GE
STRATEGIC
INVESTMENT
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 435,194 76,726
Issued for distributions reinvested 1,910 1
Shares redeemed (31,089) (6,462)
Net increase (decrease) in
Fund shares 406,015 70,265
CLASS B:
Shares sold by subscription 45,807 9,497
Issued for distributions reinvested 332 100
Shares redeemed (7,429) (13)
Net increase (decrease) in
Fund shares 38,710 9,584
CLASS C:
Shares sold by subscription 272,667 566,913
Issued for distributions reinvested 21,452 12,426
Shares redeemed (157,028) (545,837)*
Net increase (decrease) in
Fund shares 137,091 33,502
CLASS D:
Shares sold by subscription 415,926 1,152,671)*
Issued for distributions reinvested 30,112 7,533
Shares redeemed (526,586) (70,100)
Net increase (decrease) in
Fund shares (80,548) 1,090,104
GE
TAX-
EXEMPT
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 28,305 4,587
Issued for distributions reinvested 304 115
Shares redeemed (244) (41)
Net increase (decrease) in
Fund shares 28,365 4,661
CLASS B:
Shares sold by subscription 53,644 5,217
Issued for distributions reinvested 377 129
Shares redeemed (860) 0
Net increase (decrease) in
Fund shares 53,161 5,346
CLASS C:
Shares sold by subscription 97,435 290,182
Issued for distributions
reinvested 22,483 21,902
Shares redeemed (151,987) (521,453)*
Net increase (decrease) in
Fund shares (32,069) (209,369)
CLASS D:
Shares sold by subscription 0 432,382)*
Issued for distributions
reinvested 19,730 16,957
Shares redeemed (129,315) (8,146)
Net increase (decrease) in
Fund shares (109,585) 441,193
GE
FIXED
INCOME
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
CLASS B:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
CLASS C:
Shares sold by subscription 185,465,791 156,933,180
Issued for distributions
reinvested 3,320,860 1,086,335
Shares redeemed (170,729,355) (121,606,273)
Net increase (decrease) in
Fund shares 18,057,296 36,413,242
CLASS D:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
GE
SHORT-TERM
GOVERNMENT
FUND
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 20,854 2,933
Issued for distributions reinvested 354 78
Shares redeemed (265) 0
Net increase (decrease) in Fund shares 20,943 3,011
CLASS B:
Shares sold by subscription 5,935 2,151
Issued for distributions reinvested 174 54
Shares redeemed (1,280) (43)
Net increase (decrease) in
Fund shares 4,829 2,162
CLASS C:
Shares sold by subscription 185,888 31,854
Issued for distributions reinvested 7,195 457
Shares redeemed (13,001) (7,816)
Net increase (decrease) in
Fund shares 180,082 24,495
CLASS D:
Shares sold by subscription 14,219 663,325
Issued for distributions reinvested 40,870 17,778
Shares redeemed (46,499) (13,609)
Net increase (decrease) in
Fund shares 8,590 667,494
GE
MONEY
MARKET
FUND**
Year Ended Year Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
CLASS A:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
CLASS B:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
CLASS C:
Shares sold by subscription 185,465,791 156,933,180
Issued for distributions
reinvested 3,320,860 1,086,335
Shares redeemed (170,729,355) (121,606,273)
Net increase (decrease) in
Fund shares 18,057,296 36,413,242
CLASS D:
Shares sold by subscription 0 0
Issued for distributions reinvested 0 0
Shares redeemed 0 0
Net increase (decrease) in Fund shares 0 0
</TABLE>
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- SEPTEMBER 30, 1995
1. ORGANIZATION OF THE FUNDS
GE Funds (the "Trust") is registered under the Investment Company Act of 1940
(as amended) as a diversified, open-end management
investment company. The Trust was organized as a Massachusetts business trust
on August 10, 1992, and is authorized to issue an unlimited number of shares.
It is comprised of ten investment portfolios (the "Funds"), only eight of
which are currently being offered, as follows: GE International Equity Fund,
GE Global Equity Fund, GE U.S. Equity Fund, GE Strategic Investment Fund, GE
Tax-Exempt Fund, GE Fixed Income Fund, GE Short-Term Government Fund and GE
Money Market Fund. The Funds (except GE Money Market Fund) are presently
authorized to issue four classes of shares.
Between the Funds' effective date (January 5, 1993) and the commencement of
investment operations, the Funds' advisor absorbed all expenses. The
commencement dates are as follows: GE International Equity Fund - Classes A,
B, C, and D and GE Short-Term Government Fund - Classes A, B, C, and D -
March 2, 1994; Class A, all other funds - January 1, 1994; Class B, all other
funds - December 22, 1993; Class D, all other funds - November 29, 1993;
Class C, GE Tax-Exempt Fund - February 26, 1993; Class C, all other funds,
including the single class of the GE Money Market Fund - February 22, 1993.
MAXIMUM SALES LOAD IMPOSED ON PURCHASES OF CLASS A SHARES (AS A PERCENTAGE OF
OFFERING PRICE):
4.75% 4.25% 2.50%
GE International Equity Fund GE Fixed Income Fund GE Short-Term
GE Global Equity Fund GE Tax-Exempt Fun Government Fund
GE U.S. Equity Fund
GE Strategic Investment Fund
MAXIMUM CONTINGENT DEFERRED SALES LOAD (AS A PERCENTAGE OF REDEMPTION
PROCEEDS):
1.00% 3.00% 4.00%
Class A* All funds -- --
Class B -- GE Tax-Exempt Fund GE International Equity Fund
GE Fixed Income Fund GE Global Equity Fund
GE Short-Term GE U.S. Equity Fund
Government Fund GE Strategic Investment Fund
The maximum contingent deferred sales load for Class B redemptions for all
Funds, after the first year, are as follows: 3.00% within the second year,
2.00% within the third year, 1.00% within the fourth year; and 0.00%
thereafter.
No sales charges or redemption fees are assessed by the Trust with respect to
Class C and Class D shares and shares of GE Money Market Fund.
* IMPOSED ONLY FOR SHARES REDEEMED WITHIN ONE YEAR OF
PURCHASE WHICH WERE SUBJECT TO NO FRONT END SALES CHARGE BY VIRTUE OF
BEING PART OF A PURCHASE OF $1 MILLION OR MORE.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following summarizes the significant accounting policies of the Trust:
SECURITY 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. Valuations for municipal
bonds are obtained from a qualified municipal bond pricing service; prices
represent the mean of the secondary market.
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. Forward foreign
currency contracts are valued at the mean between the bid and the offered
forward rates as last quoted by a recognized dealer.
Short term investments maturing within 60 days are valued at amortized cost
or original cost plus accrued interest, each of which approximates market
value.
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
GE Money Market Fund values its securities using the amortized cost method,
which values securities initially at cost and thereafter assumes a constant
amortization to maturity of any discount or premium. Amortized cost
approximates market value.
Transactions are accounted for as of the trade date. Cost is determined and
gains and losses are based upon the identified cost method for both financial
statement and federal tax purposes.
The Funds will accrue distribution fees, blue sky fees and transfer agent
fees to the respective class. Each Fund's income, expenses (other than the
fees mentioned above) and realized and unrealized gains and losses are
allocated proportionally each day among the classes based upon the relative
net assets of each class.
To secure prices or yields deemed advantageous at a particular time, the
Funds may purchase or sell securities on a when-issued or forward commitment
basis. Payment and delivery may take place a month or more after the date of
the transaction. The price of the underlying securities and the date when the
securities will be delivered and paid for are fixed at the time the
transaction is negotiated. This may increase the risk if the other party
involved in the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous yields. In connection with such
purchases the Fund is required to hold collateral (cash, Government
securities or other liquid, high grade debt obligations) with the Funds'
custodian sufficient to cover the purchase price, unless if they enter into
an offsetting contract for the sale of equal securities and value.
50
<PAGE>
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities and purchases and sales of
investment securities are denominated in foreign currency and translated to
U.S. dollars at the prevailing exchange rate on the respective dates of such
transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments. Reported net realized exchange gains or losses from foreign
currency transactions represent sale of foreign currencies, currency gains or
losses between the trade date and the settlement date on securities
transactions, realized gains and losses on forward foreign currency
contracts, and the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end, as a
result of changes in the exchange rate.
INCOME TAXES
It is each Fund's policy to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of
its taxable income, tax-exempt income, and gains to its shareholders and
therefore no provision for federal income tax has been made. Each Fund is
treated as a separate taxpayer for federal income tax purposes.
Capital loss carryovers are available to offset future realized capital
gains. To the extent that these carryover losses are used to offset future
capital gains, it is probable that the gains so offset will not be
distributed to shareholders because they would be taxable as ordinary income.
At September 30, 1995, the Funds had capital loss carryovers as follows:
FUND AMOUNT EXPIRES
GE International Equity Fund $ 81,615 2003
GE Tax-Exempt Fund 56,890 2002
92,229 2003
GE Fixed Income Fund 2,559,939 2003
GE Money Market Fund 3,370 2003
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. The
Funds incurred and elected to defer net capital and currency losses as
follows, during the period in fiscal 1995:
GE International Equity Fund $ 308,779
GE Tax-Exempt Fund 518,256
GE Fixed Income Fund 194,750
GE Short-Term Government Fund 4,081
INVESTMENT INCOME
Corporate actions (including cash dividends) are recorded net of
nonreclaimable tax withholdings on the ex-dividend date, except for certain
foreign securities for which corporate actions are recorded as soon as the
Funds are informed. Interest income is recorded on the accrual basis. All
discounts and premiums on taxable bonds and premiums on tax exempt bonds are
amortized to call or maturity date, whichever is shorter using the effective
yield method. On tax exempt bonds purchased before May 1, 1993 only original
issue discount is amortized. For tax exempt bonds purchased after April 30,
1993 both market discount and original issue discount are amortized.
EXPENSES
Expenses of the Trust which are directly identifiable to a specific Fund are
allocated to that Fund. Expenses which are not readily identifiable to a
specific Fund are allocated in such a manner as deemed equitable, taking into
consideration the nature and type of expense and the relative sizes of the
Funds. All expenses of the Funds are paid by the Investment Adviser and
reimbursed by the Funds up to the voluntary expense limitations.
DISTRIBUTIONS TO SHAREHOLDERS
GE Tax-Exempt Fund, GE Fixed Income Fund, GE Short-Term Government Fund and
GE Money Market Fund declare investment income dividends daily (paid
monthly). GE International Equity Fund, GE Global Equity Fund, GE U.S. Equity
Fund and GE Strategic Investment Fund declare and pay dividends of net
investment income annually. All Funds declare and pay net realized capital
gain distributions annually. The character of income and gains to be
distributed are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. Reclassifications
are made to the Funds' 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 Funds 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 Funds' custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Funds. It is the policy
of the Funds to value the underlying collateral daily on a mark-to-market
basis to determine that the value, including accrued interest, is at least
equal to the repurchase price. In the event of default of the obligation to
repurchase, the Funds have the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation.
FUTURES AND OPTIONS
The Funds, other than the GE Money Market Fund, 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 Funds have in the
particular classes of instruments. Risks may be caused by an imperfect
correlation between movements in the price of the instruments and the price of
the underlying securities and interest rates. Risks also may arise if there
is an illiquid secondary market for the instruments, or due to the inability
of counterparties to perform. The Funds will invest in these instruments to
hedge against the effects of changes in value of portfolio securities due to
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anticipated changes in interest rates and/or market conditions, to equitize a
cash position, for duration management, or when the transactions are
economically appropriate to the reduction of risk inherent in the management
of the Fund involved.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as
unrealized gains and losses. The Fund recognizes a realized gain or loss when
the futures contract is closed. The Fund will realize a gain or loss upon the
expiration or closing of 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.
SECURITY LENDING
The Funds may loan securities to well known and recognized U.S. and foreign
brokers and banks and receive a lenders fee. These fees are included in
interest income. The loans of securities will be collateralized by cash,
letters of credit or U.S. Government Securities. The collateral will be
segregated and maintained at all times with the custodian and must be equal
to the current value of the securities loaned. In the event the counterparty
(borrower) does not meet its contracted obligation to return the securities,
the Fund may be exposed to the risk of loss of reacquiring the loaned
securities at prevailing market prices.
OTHER
There are certain additional risks involved when investing in foreign
securities that are not inherent in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the imposition of unfavorable foreign governmental
laws and restrictions.
3. FEES AND COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION FEES
Compensation of GE Investment Management Incorporated ("GEIM"), the Funds'
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 Fund. 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, administration and distribution fees) for
each Fund as indicated in the following table:
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND LIMITATION OF OTHER
ADMINISTRATION FEES OPERATING EXPENSES
GE International Equity Fund .80% .30%
GE Global Equity Fund .75% .35%
GE U.S Equity Fund .40% .10%
GE Strategic Investment Fund .35% .30%
GE Tax-Exempt Fund .35% .25%
GE Fixed Income Fund .35% .25%
GE Short-Term Gov't Fund .30% .15%
GE Money Market Fund .25% .20%
DISTRIBUTION FEE
The Funds have adopted a Shareholder Servicing and Distribution Plan ("the
Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940 with
respect to each Fund except the GE Money Market Fund. Each Fund pays GE
Investment Services Inc. ("GEIS"), a subsidiary of GEIM and the Funds'
principal underwriter, a monthly fee for shareholder and distribution
services provided, at an annual rate of .50% of the average daily net assets
of Class A of all applicable Funds, 1.00% for Class B of all applicable Funds
(except GE Short-Term Government Fund which is .85%), and .25% for Class C of
all applicable Funds. Currently Class D is not subject to a 12b-1 fee plan.
OTHER
The Funds pay no compensation to their Trustees who are employees of GEIM.
Trustees who are not GEIM employees received an annual fee of $10,000 and an
additional fee of $500 for each Trustees' meeting attended.
For the year ended September 30, 1995, GE Investment Services acting as
underwriter received net commissions of $8,073 from the sale of Class A
shares and $2,584 in contingent deferred sales charges from redemptions of
Class A and Class B shares.
GNA Corporation, a wholly owned subsidiary of General Electric Company, acts
as Blue Sky administrator for the GE Funds. Fees paid to GNA are reflected in
Blue Sky expense in the Statement of Operations.
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for
each Fund at September 30, 1995, were as follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
GE International
Equity Fund 4,575,406 2,486,432 2,088,974
GE Global Equity
Fund 5,643,768 1,598,436 4,045,332
GE U.S. Equity
Fund $ 29,287,914 $ 974,301 $ 28,313,613
GE Strategic
Investment Fund 5,994,913 549,772 5,445,141
GE Tax-Exempt
Fund 324,312 14,386 309,926
GE Fixed Income
Fund 522,160 30,915 491,245
GE Short-Term
Gov't Fund 22,040 11,575 10,465
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at September 30, 1995.
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5. OPTIONS
During the period ended September 30, 1995, the following option contracts
were written:
GE U.S. EQUITY FUND GE STRATEGIC INVESTMENT FUND
NUMBER NUMBER
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
Balance as of
September
30, 1994 4 $ 503 1 $ 344
Written 84 32,421 428 94,444
Closed and
Expired (55) (18,660) (119) (19,282)
Exercised (14) (2,984) (271) (1,525)
Balance as of
September
30, 1995 19 $ 11,280 39 $ 73,981
GE FIXED INCOME FUND
____________________
NUMBER OF CONTRACTSPREMIUM
Balance as of
September 30,
1994 1 $ 344
Written 675 3,398
Closed and
Expired (675) (3,398)
Exercised (1) (344)
Balance as of
September 30,
1995 0 $ 0
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 September 30, 1995, were:
PURCHASES SALES
GE International
Equity Fund $ 15,331,908 $ 7,718,077
GE Global Equity Fund 18,432,179 14,462,599
GE U.S. Equity Fund 59,418,850 56,376,075
GE Strategic
Investment Fund 15,454,691 11,220,899
GE Tax-Exempt Fund 8,545,063 10,724,072
GE Fixed Income Fund 14,912,522 19,888,369
GE Short-Term
Government Fund 2,983,192 3,202,242
The cost of purchases and the proceeds from sales of long-term U.S.
Government obligations for the period ended September 30, 1995, were:
PURCHASES SALES
GE U.S. Equity Fund $ 310,217 $ 84,993
GE Strategic
Investment Fund 24,170,717 22,349,697
GE Fixed Income Fund 59,717,583 64,243,245
GE Short-Term
Government Fund 37,886,279 34,962,684
7. BENEFICIAL INTEREST
The following schedule shows the number of shareholders each owning 5% or
more of a Fund and the total percentage of the Fund held by such
shareholders:
5% OR GREATER
SHAREHOLDERS
NUMBER % OF FUND HELD
GE International Equity Fund 4 95%
GE Global Equity Fund 4 32%
GE U.S. Equity Fund 7 62%
GE Strategic Investment Fund 5 55%
GE Tax-Exempt Fund 1 33%
GE Fixed Income Fund 2 26%
GE Short-Term Government Fund 2 74%
GE Money Market Fund 2 23%
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REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND TRUSTEES OF GE FUNDS
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 International Equity Fund, GE Global Equity Fund, GE U.S. Equity Fund,
GE Strategic Investment Fund, GE Tax-Exempt Fund, GE Fixed Income Fund, GE
Short-Term Government Fund and GE Money Market Fund, each a series of GE
Funds (the "Trust"), at September 30, 1995 and the results of their
operations, the changes in their net assets and the financial highlights for
the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Trust's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that our audits,
which included confirmation of securities at September 30, 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
November 10, 1995
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GE FUNDS MANAGEMENT TEAM
PORTFOLIO MANAGERS
GE INTERNATIONAL EQUITY FUND
GE GLOBAL EQUITY FUND
Ralph R. Layman
GE U.S. EQUITY FUND
Eugene K. Bolton
David B. Carlson
Elaine G. Harris
Peter J. Hathaway
A. John Kohlhepp
Paul C. Reinhardt
GE STRATEGIC INVESTMENT FUND
David B. Carlson
Robert A. MacDougall
GE TAX-EXEMPT FUND
Robert R. Kaelin
GE FIXED INCOME FUND
GE SHORT-TERM GOVERNMENT FUND
GE MONEY MARKET FUND
Robert A. MacDougall
Investment Adviser
and Administrator
GE Investment Management Incorporated
Trustees
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn
Secretary
Matthew J. Simpson
Treasurer
Jeffrey A. Groh
Distributor
GE Investment Services Inc.
Member NASD and SIPC
Counsel
Willkie Farr & Gallagher
Custodian
State Street Bank & Trust Company
Independent Accountants
Price Waterhouse LLP
Officers of the Investment Adviser
Dale F. Frey, CHAIRMAN OF THE BOARD AND PRESIDENT
Eugene K. Bolton, EVP, DOMESTIC EQUITIES
Ralph R. Layman, EVP, INTERNATIONAL EQUITIES
John H. Myers, EVP, FIXED INCOME AND ALTERNATIVE INVESTMENTS
Alan M. Lewis, EVP, GENERAL COUNSEL AND SECRETARY
Don W. Torey, EVP, FINANCE AND ADMINISTRATION
Michael J. Cosgrove, EVP, MUTUAL FUNDS
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SHAREHOLDER INQUIRIES
In the early part of 1995, the GE Inquiry Center moved into a new home
within our Stamford, Connecticut, headquarters. The expanded facility
provided for the installation of state-of-the-art technology. The upgraded
Inquiry Center provides improved service for customers with questions
pertaining to the GEFunds. In addition, we've added to our Inquiry Center
staff, now 20 highly trained specialists - all Series 7 and 63 licensed.
Computer upgrades have been installed in order to enable the Inquiry
Specialists to provide shareholders with the most efficient and accurate
information. Virtually all information is being stored electronically.
Essential information can be found rapidly at the touch of a button.
STAYING ON TOP OF MARKET TRENDS
One of the most innovative features of the Inquiry Center is our
Intelligence Room. A panel of monitors provides information on market
trends, dividends and other key investment information. Financial news
wires, such as Bloomberg and Reuters are on-line along with the NBC. Personal
Financial News network, all designed to help specialists stay on top of
market trends and the latest economic news on Wall Street.
Scattered about the Inquiry Center are ticker-tape screens showing the
latest currency fluctuations and the Dow Jones Industrial stock prices.
Such data is helpful in providing valuable information to shareholders.
CLASS A AND B INVESTOR: Call your investment professional or 1-800-735-4547
CLASS C INVESTOR: Call the GE Funds Inquiry Center at 1-800-242-0134
Address inquiries Address inquiries regarding
regarding the Funds to: your account to:
GE Funds GE Funds
3003 Summer Street P.O. Box 8309
P.O. Box 120065 Boston, MA 02266-8309
Stamford, CT 06912-0065
CLASS D INVESTOR: Contact your designated GE Investment
account representative
401(K) PLAN INVESTOR: Call your company's designated plan number
This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.
<PAGE>
GE Funds
3003 Summer Street
Stamford, CT 06904-7900
Bulk Rate
U.S. Postage
PAID
Boston, MA
Permit No. 54201
Distributed by GE Investment Services Inc., member NASD and SIPC
