GE Funds
SEMI-ANNUAL REPORT March 31, 1996
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UNDERSTANDING YOUR REPORT
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Page
PRESIDENT'S LETTER ........................................... 1 Mike Cosgrove on market events
REVIEW OF PERFORMANCE
AND SCHEDULES OF INVESTMENTS
GE INTERNATIONAL FUNDS ..................................... 2-8 Portfolio managers
GE U.S. EQUITY FUND ........................................ 9-15 discuss your Funds results
GE STRATEGIC INVESTMENT FUND ............................... 16-22
GE TAX-EXEMPT FUND ......................................... 23-26
GE FIXED INCOME FUNDS ...................................... 27-35
NOTES TO PERFORMANCE AND SCHEDULES OF INVESTMENTS ............ 36-37
FINANCIAL STATEMENTS ......................................... 38-49 Financial Highlights and Statements of Assets and
Liabilities, Operations, and Changes in Net Assets
NOTES ........................................................ 50-55 Notes to the Financial Statements
GE FUNDS' INVESTMENT TEAM .................................... 56
SHAREHOLDER INQUIRIES ................................. INSIDE BACK COVER How you can obtain more information
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CLASS STRUCTURE
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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
eligible investors described in the Funds' prospectus.
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' Inquiry Center Specialists are pictured
researching market events in our Intelligence Room, which provides
up-to-the-minute worldwide information.
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DEAR SHAREHOLDER:
The 1995 U.S. equity market rally continued into 1996 fueled by record cash
flows into equity mutual funds which topped $20 billion per month in the first
quarter, an increase of nearly 200% versus last year. Inflation and interest
rates remain low, although in March, leading economic indicators suggested a
stronger economy than expected, causing interest rates to rise. While daily
volatility increased after these announcements, the stock market continued its
upward trend, finishing the quarter up 5.5% as measured by the S&P 500. For the
last twelve months, the S&P 500 returned 32.3%.
The bond markets started off the quarter on a positive note after the
Federal Reserve lowered interest rates 25 basis points in January, as expected.
In March, the bond markets gave back those early gains when interest rates
jumped on news of a stronger than expected economy. For the quarter, the Lehman
Brothers Municipal and Taxable Bond Indices were down 1.2% and 1.8%
respectively. Over the last twelve months, however, the municipal and taxable
indices returned 8.4% and 10.8% respectively.
International equity markets continued to lag their U.S. counterpart, as
they did in 1995. The MSCI EAFE Index was up 2.9% through the first quarter,
hurt most by the Japanese market which was up only 0.4%. For the last twelve
months, the MSCI EAFE Index returned 12.3%. Continental European markets
continued to perform well, a trend we expect to continue as market valuations
compare favorably to most other global markets.
Domestic equity market valuations continue to loom at high levels. When
combined with mixed news about the strength of the economy and the dynamics of a
presidential election, we expect market volatility to continue throughout the
year. We remain confident, however, that the long term prospects for the
financial markets are good based on strong underlying fundamentals, plenty of
liquidity, controlled inflation, and low interest rates.
We appreciate your investment in the GE Funds and we will continue to be
dedicated to helping you meet your financial objectives.
Michael J. Cosgrove
Mike Cosgrove is responsible for the marketing, product development and sales of
the GE Funds.
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.
1
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GE INTERNATIONAL FUNDS
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Q&A
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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.
Q. How did the GE International & GE Global Equity Funds' industry
benchmark and Lipper peers perform for the first quarter of 1996?
A. The GE International Fund's benchmark, the MSCI EAFE Index, returned 2.9%
for the three months ended March 31, 1996. Our Lipper peer group of 601
International Stock Funds returned an average of 5.7% for the same
period.
The GE Global Equity Fund's benchmark, the MSCI World Index, returned
4.1% in the first quarter of 1996 and our Lipper peer group of 178 Global
Stock Funds returned 5.9% for the same period.
Refer to the following page, for GE International Fund, and page 6, for
GE Global Equity Fund, to see how your class of shares in the Funds'
performed compared to the above benchmarks.
Q. What drove the Funds' performance?
A. Performance was driven by our weightings in various markets. The Funds'
holdings in France (+ 8.4% return), Hong Kong (+11.7% return) and
emerging markets such as Mexico (+9.9% return) contributed greatly to our
positive performance compared to the benchmarks. The Funds also benefited
from a traditional underweighting in the United Kingdom and Japanese
markets which, in U.S. dollar terms, improved only 0.1% and 0.4%.
For the first time in quite a few quarters the U.S. market was in the
middle of the pack in terms of first quarter performance, rising 5.6%.
The U.S. dollar strengthened significantly versus all major currencies.
The Yen fell 3.3% while the Deutschmark fell 3.1% versus the dollar. This
has hurt our performance relative to the peer group because we do not
hedge equity positions. We believe that the currency decision should be
imbedded into the stock selection process. If we believe that the dollar
is undervalued on a medium-term basis, we will buy companies that will
benefit from dollar strength through either export sales or operations
based in dollar linked countries.
Q. What has your investment strategy been?
A. Our investment strategy is undervalued growth. Our analysts regularly
screen the world for globally competitive companies with growth rates in
excess of their valuation. We are bottom-up investors, our philosophy is
driven by where a company does business, not by where it is located.
Since our style is company specific, we are able to manage a tight,
diversified portfolio with a limited number of names.
Q. Which investments stand out?
A. During the quarter, many of our top ten holdings performed well.
Carrefour, a french based retailer, was among them. Carrefour specializes
in the discount retail format and is rapidly growing outside France.
Today, Carrefour has over 50% of their stores outside France and is
rapidly growing in Latin America, Asia and China.
Q. What is the outlook for the funds and how have you positioned them
going forward?
A. We continue to remain overweighted in Europe and underweighted in Japan
due to our undervalued growth investment philosophy. While European
economies are showing little in the way of strong recovery, most have
bottomed. Consumer confidence levels remain low, but Europe has started
the new year with improvements in auto sales, inventory levels and the
US dollar. We believe European markets will benefit from lower interest
rates during the course of 1996 due to low inflation rates, low
consumption levels and sluggish growth.
We remain opportunistic in Japan. We believe the economy will recover,
however our growth forecasts are below consensus. We continue to avoid
Japanese banks and prefer globally competitive exporters.
2
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GE INTERNATIONAL EQUITY FUND
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PORTFOLIO COMPOSITION
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Europe 62.8%
Japan 18.5%
Pacific Rim 13.6%
Cash & Other 1.5%
Other regions 3.6%
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AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
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SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
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Class A 3.04% 6.84% 17.10% 6.23% 3/2/94
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Class A* - 1.85% 1.77% 11.54% 3.76% 3/2/94
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Class B 2.88% 6.53% 16.42% 5.65% 3/2/94
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Class B* - 1.12% 2.53% 12.42% 4.73% 3/2/94
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Class C 3.11% 6.86% 17.27% 6.41% 3/2/94
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Class D 3.22% 7.12% 17.76% 6.78% 3/2/94
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MSCI EAFE 2.89% 7.05% 12.33%
======================================================================
* With Load
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of
capital by investing primarily in foreign equity securities.
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GE INTERNATIONAL EQUITY FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1996
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Veba AG 3.05%
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Total S. A. (Class B) 2.73%
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Roche Holdings AG 2.62%
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Carrefour 2.58%
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Siemens AG 2.46%
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BBC Brown Boveri 2.34%
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Suzuki Motor Corp. 2.29%
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Astra AB 2.20%
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Wolters Kluwer 2.18%
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DDI Corp. 2.07%
========================================================
* LIPPER PERFORMANCE COMPARISON
International Stock Peer Group
Based on total returns for the periods ending March 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
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Number of Funds
in peer group: 601 573 512
Peer group average
total return: 5.7% 6.2% 16.5%
Lipper categories
in peer group: International, European Region,
Pacific Region, Pacific Ex-Japan,
Japanese, Latin America,
Canadian, Emerging Markets,
International Small Company
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
3
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SCHEDULE OF INVESTMENTS MARCH 31, 1996 (unaudited)
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GE INTERNATIONAL EQUITY FUND
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NUMBER
OF SHARES VALUE
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COMMON STOCK - 97.9%
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AUSTRALIA - 3.4%
Brambles Industries Ltd. 75,170 $ 991,537
Burns Philip & Co. 358,938 765,727
1,757,264
AUSTRIA - 4.0%
Bohler Uddeholm 2,566 199,337 (a)
Creditanstalt Bankverein 8,433 501,301
Flughafen Wien AG 3,934 269,543
OMV AG 2,256 207,911
VA Technologie AG 6,843 843,942
2,022,034
DENMARK - 3.2%
Den Danske Bank 10,236 648,223
ISS (Series B) 17,218 480,250
Tele Danmark AS (Series B) 9,197 479,170
1,607,643
FRANCE - 12.8%
Alcatel Alsthom 5,687 527,214
Banque Nationale de Paris 19,291 754,572
Carrefour 1,802 1,319,549
Coflexip ADR 13,524 289,076
Eaux (Cie Generale) 4,191 428,553
Lyonnaise Des Eaux S.A. 4,117 385,018 (a)
Thomson CSF 7,185 180,467
Total S.A. (Class B) 20,638 1,393,241
Usinor Sacilor 17,068 279,078 (a)
Valeo 18,865 1,001,983
6,558,751
GERMANY - 9.7%
Deutsche Bank AG 5,632 283,565
Gehe AG 772 444,490
Gehe AG (new) 192 108,206 (a)
Sap AG 4,171 600,660
SGL Carbon 7,228 690,339 (a)
Siemens AG 2,282 1,255,927
Veba AG 32,015 1,555,968
4,939,155
HONG KONG - 4.3%
Consolidated Electric Power 293,000 484,923 (a)
Giordano International 467,000 483,062
Hutchison Whampoa Ltd. 142,000 895,992
Television Broadcasts Ltd. ADR 96,000 353,142
2,217,119
INDONESIA - 0.8%
Astra International 185,500 265,793
PT Tambang Timah GDR 7,772 131,347 (a,b)
397,140
ITALY - 2.5%
ENI Spa 41,305 149,805 (a)
Istituto Mobiliare Italiano ADR 12,286 254,935
Sasib 90,861 180,536
Stet 66,765 185,169 (a)
Stet (Savings) 52,703 104,718
Telecom Italia Mobile 226,807 411,654 (a)
1,286,817
JAPAN - 18.5%
Canon Inc. 53,000 1,010,703
Credit Saison Co. 18,900 411,657
DDI Corp. 139 1,058,986
Ito Yokado Co. 17,000 1,009,114
Murata Manufacturing Co. 26,000 894,415
Nintendo Co. 8,000 511,521
Nippon Express Co. 32,000 314,092
Nippondenso Co. 38,000 767,282
Omron Corp. 15,000 332,321
Rohm Co. 14,000 798,317
Secom Co. 15,000 980,136
Suzuki Motor Corp. 95,000 1,172,236
Tokyo Steel Manufacturing 11,000 199,486
9,460,266
MALAYSIA - 1.1%
AMMB Holdings Berhad 6,400 84,743
Telekom Malaysia 49,000 451,265
536,008
MEXICO - 2.0%
Grupo Carso S.A. (Series A) 53,000 413,590 (a)
Grupo Carso S.A. de C.V. ADR 26,482 410,471 (a,b)
Grupo Financiero Bancomer ADR
(Series C) 15,003 120,024 (a,b)
Grupo Televisa S.A. De C.V. ADR 3,636 90,445
1,034,530
NETHERLANDS - 7.3%
IHC Caland N.V. 14,794 603,545 (a)
International Nederlanden 8,739 634,756
Nutricia Verenigde Bedrijven 3,647 365,340 (a)
Polygram 11,102 671,993
Unilever N.V. 2,571 350,612
Wolters Kluwer 10,126 1,114,283
3,740,529
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See Notes to Schedule of Investments and Financial Statements
4
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NUMBER
OF SHARES VALUE
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PHILIPPINES - 0.7%
San Miguel Corp. 98,500 $ 331,092
PORTUGAL - 0.8%
Banco Comercial Portugues ADR 29,705 404,731
SINGAPORE - 0.9%
Singapore Airlines Ltd. 45,000 466,719
SOUTH AFRICA - 1.6%
Iscor 677,728 640,861
Malbak 31,767 187,744
828,605
SOUTH KOREA - 1.3%
Korea Electric Power 16,283 634,876 (a)
Korea Electric Power Corp. ADR 1,200 27,600
662,476
SPAIN - 1.5%
Banco Popular (Regd.) 727 125,584
Repsol S.A. 17,314 652,859 (a)
778,443
SWEDEN - 4.8%
Astra AB 24,435 1,125,354
Autoliv AB 8,692 443,921
Electrolux AB (Series B) 16,462 805,003
Linjebuss 9,058 73,258
2,447,536
SWITZERLAND - 8.9%
BBC Brown Boveri 982 1,194,681
Danzas Holdings 210 260,426 (a)
Nestle S.A. 711 802,221
Roche Holdings AG 161 1,337,380
Schw Ruckversicher 955 968,329
4,563,037
THAILAND - 1.1%
Siam Cement 5,500 283,191
Thai Farmers Bank 23,230 272,341
555,532
UNITED KINGDOM - 6.7%
Airtours PLC 63,359 444,828
BPB Industries 50,367 237,921
Medeva 207,938 775,959
Reed International 38,915 657,789
Saatchi & Saatchi 183,847 356,358
Siebe 29,391 392,284
Thorn Emi 8,958 230,171
Waste Management
International PLC ADR 34,914 344,776 (a)
3,440,086
TOTAL COMMON STOCK
(COST $45,697,565) 50,035,513
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PRINCIPAL
AMOUNT VALUE
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CONVERTIBLE BONDS - 0.6%
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Kinnevik Invest
10.50% 07/21/97 SEK 880,000 267,553
Sasib
9.25% 12/31/97 ITL 65,000,000 32,702
TOTAL CONVERTIBLE BONDS
(COST $245,051) 300,255
TOTAL INVESTMENTS IN SECURITIES
(COST $45,942,616) 50,335,768
SHORT TERM INVESTMENTS - 3.2%
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REPURCHASE AGREEMENT - 3.2%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $1,650,000) 1,650,000 1,650,000
(dated 3/29/96, proceeds
$1,650,708, collateralized by
$1,684,421 United States Treasury
Bond, 8.75%, 05/15/17)
Other Assets and Liabilities,
net (1.7%) (886,167)
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NET ASSETS - 100% $ 51,099,601
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See Notes to Schedule of Investments and Financial Statements
5
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GE GLOBAL EQUITY FUND
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PORTFOLIO COMPOSITION
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Europe 40.3%
United States 25.5%
Japan 13.0%
Pacific Rim 11.0%
Cash & Other 5.0%
Other regions 5.2%
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AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
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SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
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Class A 4.98% 5.47% 16.75% 7.03% 1/1/94
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Class A* - 0.01% 0.46% 11.21% 4.73% 1/1/94
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Class B 4.89% 5.25% 16.21% 7.81% 12/22/93
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Class B* 0.89% 1.25% 12.21% 7.00% 12/22/93
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Class C 5.05% 5.61% 17.02% 13.48% 2/22/93
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Class D 5.14% 5.74% 17.31% 11.17% 11/29/93
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MSCI World 4.07% 9.01% 20.02%
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* With Load
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of global companies.
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GE GLOBAL EQUITY FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1996
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Total S. A. (Class B) 2.63%
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Colgate Palmolive Co. 2.44%
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Veba AG 2.34%
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Suzuki Motor Corp. 2.28%
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Allied Signal Inc. 2.27%
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Secom Co. 2.24%
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First Data Corp. 2.05%
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BBC Brown Boveri 2.01%
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Citicorp 1.83%
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DDI Corp. 1.81%
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* LIPPER PERFORMANCE COMPARISON
Global Stock Peer Group
Based on total returns for the periods ending March 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
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Number of Funds
in peer group: 178 172 154
Peer group average
total return: 5.9% 7.1% 22.5%
Lipper categories
in peer group: Global, Global Small Company
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
6
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SCHEDULE OF INVESTMENTS MARCH 31, 1996 (unaudited)
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GE GLOBAL EQUITY FUND
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NUMBER
OF SHARES VALUE
- - ------------------------------------------------------------------------
COMMON STOCK - 95.0%
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AUSTRALIA - 1.7%
Burns Philip & Co. 295,595 $ 630,596
AUSTRIA - 3.7%
Creditanstalt Bankverein 4,884 290,330
Flughafen Wien AG 2,743 187,940 (a)
Omv AG 3,135 288,919
VA Technologie AG 5,305 654,262
1,421,451
BRAZIL - 1.0%
Brasmotor S.A 771,626 199,175
Ceval Alimentos S.A 15,697,505 198,463 (a)
397,638
DENMARK - 1.4%
ISS (Series B) 6,886 192,066
Tele Danmark AS (Series B) 6,826 355,639
547,705
FRANCE - 9.4%
Banque Nationale de Paris 8,307 324,930
Carrefour 830 607,783
Coflexip ADR 30,208 645,696
Technip 3,900 340,720
Total S.A. (Class B) 14,773 997,304
Valeo 12,223 649,204 (a)
3,565,637
GERMANY - 4.5%
Gehe AG 693 399,004
Gehe AG (new) 129 72,701 (a)
Sap AG 2,392 344,469
Veba AG 18,208 884,931
1,701,105
HONG KONG - 5.5%
Consolidated Electric Power 206,500 341,764 (a)
Giordano International 536,000 554,435
Hutchison Whampoa Ltd. 69,100 436,007
National Mutual Asia 303,000 276,202
Television Broadcasts Ltd.ADR 129,000 474,535
2,082,943
INDONESIA - 0.5%
Astra International 131,898 188,990
ITALY - 2.3%
Imi 23,482 160,609
Istituto Mobiliare Italiano ADR 2,305 47,829
Stet 38,074 105,596 (a)
Stet (Savings) 134,009 266,268
Telecom Italia Mobile 159,260 289,057 (a)
869,359
JAPAN - 13.0%
Canon Inc. 28,000 533,957
Credit Saison Co. 14,000 304,931
DDI Corp. 90 685,674
Ito Yokado Co. 6,000 356,158
Murata Manufacturing Co. 15,000 516,009
Omron Corp. 9,000 199,392
Rohm Co. 11,000 627,249
Secom Co. 13,000 849,451
Suzuki Motor Corp. 70,000 863,753
4,936,574
MALAYSIA - 1.0%
AMMB Holdings Berhad 22,800 301,897
Telekom Malaysia 10,000 92,095
393,992
MEXICO - 2.9%
Grupo Carso S.A. (Series A) 55,901 436,228 (a)
Grupo Carso S.A. de C.V. ADR 17,119 265,344 (a,b)
Grupo Financiero
Bancomer ADR (Series C) 22,664 181,312 (a,b)
Grupo Televisa S.A. De C.V. ADR 8,347 207,632
1,090,516
NETHERLANDS - 2.6%
International Nederlanden 8,012 581,950
Nutricia Verenigde Bedrijven 2,014 201,754 (a)
Polygram 3,189 193,027
976,731
NORWAY - 1.7%
Petroleum Geo Services 24,632 626,065 (a)
PHILIPPINES - 0.5%
San Miguel Corp. 59,400 199,664
South Africa - 1.3%
Iscor 501,931 474,627
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See Notes to Schedule of Investments and Financial Statements
7
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GE GLOBAL EQUITY FUND MARCH 31, 1996 (unaudited)
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NUMBER
OF SHARES VALUE
- - ------------------------------------------------------------------------
SOUTH KOREA - 0.9%
Korea Electric Power 8,597 $ 335,198 (a)
SPAIN - 0.8%
Repsol S.A. 7,706 290,570
SWEDEN - 1.9%
Astra AB 7,024 323,490
Autoliv AB 7,578 387,027
710,517
SWITZERLAND - 6.1%
BBC Brown Boveri 626 761,579
Nestle S.A. 513 578,818
Roche Holdings AG 74 614,697
Schw Ruckversicher 338 342,717
2,297,811
THAILAND - 0.9%
Thai Farmers Bank 27,820 326,153
United Kingdom - 5.9%
BPB Industries 71,236 336,501
Medeva 101,404 378,408
Reed International 40,003 676,180
Siebe 21,706 289,712
Takare 50,245 115,413
Thorn Emi 17,656 453,661
2,249,875
UNITED STATES - 25.5%
Airgas Inc. 14,836 589,731 (a)
Allied Signal Inc. 14,538 859,559
Avery Dennison Corp. 3,400 183,600
Chrysler Corp. 5,182 322,580
Citicorp 8,673 693,840
Colgate Palmolive Co. 11,886 925,622
Countrywide Credit Industries 13,615 301,232
Ecolab Inc. 19,624 588,720
First Data Corp. 11,034 777,897
Intel Corp. 4,015 228,353
International Business Machines 2,321 257,921
International Paper Co. 9,870 388,631
Medaphis Corp. 8,209 398,136 (a)
Motorola Inc. 8,219 435,607
Sensormatic Electronics Corp. 21,147 428,227
Sunrise Medical Inc. 18,532 259,448 (a)
Toys 'R Us 15,927 430,029 (a)
Travelers Group Inc. 8,600 567,600
Tyco International Ltd. 4,896 175,032
Ucar International Inc. 6,812 264,817 (a)
Wheelabrator Technologies Inc. 27,077 450,155 (a)
Zebra Technologies Corp
(Class A) 5,377 142,491
9,669,228
TOTAL INVESTMENTS IN SECURITIES
(COST $31,119,022) 35,982,945
- - -----------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- - -----------------------------------------------------------------------
SHORT TERM INVESTMENTS - 4.6%
- - -----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 2.6%
Federal Farm Credit Bank
5.25% 04/11/96 $1,000,000 998,542 (d)
REPURCHASE AGREEMENT - 2.0%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $760,000) 760,000 760,000
(dated 03/29/96, proceeds
$760,326, collateralized by
$780,283 United States
Treasury Bond, 8.75%, 5/15/17)
TOTAL SHORT TERM INVESTMENTS
(COST $1,758,542) 1,758,542
Other Assets and Liabilities, net 0.4% 144,233
------------
NET ASSETS - 100% $ 37,885,720
============
- - ----------------
See Notes to Schedule of Investments and Financial Statements
8
<PAGE>
- - --------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- - --------------------------------------------------------------------------------
Q&A
- - ---
Gene Bolton is responsible for the overall management of the U.S. equity
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.S. and Europe. Joining GE Investments in 1984 as
Chief Financial Officer, he moved to equities as a Portfolio Manager in 1986 and
was named to his present position in 1991. Gene is a Trustee of the GE Pension
Trust and GE's employee savings program, 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.A. in
Business Management.
Q. How did the GE U.S. Equity Fund's industry benchmark and Lipper peers
perform for the first quarter of 1996?
A. The S&P 500 returned +5.5% for the three months ended March 31, 1996. Our
Lipper peer group of 569 Growth & Income Funds had an average return of
+5.6% for the same period.
Refer to the following page to see how your class of shares in the GE U.S.
Equity Fund compared to these benchmarks.
Q. Why did the Fund outperform its benchmark & peers?
A. The GE U.S. Equity Fund outperformed the S&P 500 and peers in the first
quarter principally because of good stock selection which has been our
historical strength. The greatest value added came in the Technology Sector
where our holdings in IBM and Reuters did well. We also avoided some of the
more volatile and poorly performing technology stocks that had significant
corrections during the quarter. Other sectors where stock selection added
value included: Consumer Stable, where we had large holdings of Pepsi and
American Home Products; Capital Goods, where we were helped by large
holdings in Allied Signal, United Technologies and Deere. We also benefited
from underweighting in the Utility Sector as that group was hurt by rising
interest rates.
Q. What has your investment strategy been?
A. Over the years we have determined that our primary investment skill is
stock selection. Thus we concentrate our effort on fundamental long-term
stock research and do not try to time the stock market or rotate from one
"hot" sector to another. We currently have five portfolio managers, two of
whom follow a growth investment style, two of whom follow a value style and
one who is a contrarian value investor. They have a longer term perspective
and, with the help of our nine research analysts, focus on finding the best
stocks to buy within their distinctive style of investing. The assets of
the fund are allocated among the five managers in such a way that the
aggregate portfolio is neutral to the S&P 500 in terms of style. Thus we
are not making a bet on Value or Growth but focusing on adding value
through stock selection.
Q. What sectors have you liked?
A. We continue to be overweighted in the Financial and Capital Goods Sectors.
These sectors are where we are finding the most attractive stocks on a
valuation basis using our bottom-up stock selection disciplines. The
financial stocks we own have good historical growth rates and strong
managements. They also have attractive valuation levels considering their
past and future projected growth rates. The capital goods stocks we own
have also shown superior growth and have attractive valuations compared to
other companies with similar growth prospects. These companies are globally
diversified and very competitive worldwide.
They have instituted cost cutting and productivity initiatives and are
generating strong cash flow. They should benefit from worldwide
infrastructure building and are not dependent on debt laden consumers to
achieve their forecasted growth rates.
Q. What is the outlook for the Fund?
A. With the current uncertainty regarding the outlook for the economy and
interest rates, we expect volatility in the market to be higher than it has
been in recent years. In this type of environment we believe it is a
particularly good time to be style neutral, between Valueand Growth, to the
S&P 500. We believe that aspect of our investment strategy coupled with our
strong record in stock selection make the Fund well positioned for good
relative performance during the balance of the year.
9
<PAGE>
- - --------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- - --------------------------------------------------------------------------------
- - ---------------------------------------
PORTFOLIO COMPOSITION
- - ---------------------------------------
Consumer 32.2%
Financial Services 15.4%
Energy & Basic Materials 14.7%
Capital Goods 13.4%
Technology 8.7%
Utilities 9.3%
Cash & Other 3.9%
Transportation 2.4%
- - ------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - ------------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - ------------------------------------------------------------------------------
Class A 6.36% 11.87% 31.52% 16.25% 1/1/94
- - ------------------------------------------------------------------------------
Class A* 1.31% 6.56% 25.28% 13.76% 1/1/94
- - ------------------------------------------------------------------------------
Class B 6.11% 11.47% 30.70% 16.06% 12/22/93
- - ------------------------------------------------------------------------------
Class B* 2.11% 7.47% 26.70% 15.30% 12/22/93
- - ------------------------------------------------------------------------------
Class C 6.27% 11.89% 31.74% 15.89% 2/22/93
- - ------------------------------------------------------------------------------
Class D 6.42% 12.10% 32.14% 16.82% 11/29/93
- - ------------------------------------------------------------------------------
S&P 500 5.51% 11.81% 32.26%
- - ------------------------------------------------------------------------------
* With Load
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.
- - ------------------------------------------------------------------------------
GE U.S. EQUITY FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1996
- - ------------------------------------------------------------------------------
American Telephone & Telegraph 2.06%
- - ------------------------------------------------------------------------------
Pepsico Inc. 1.98%
- - ------------------------------------------------------------------------------
International Business Machines 1.89%
- - ------------------------------------------------------------------------------
Exxon Corp. 1.72%
- - ------------------------------------------------------------------------------
Royal Dutch Petroleum Co. 1.55%
- - ------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.51%
- - ------------------------------------------------------------------------------
Allied Signal Inc. 1.44%
- - ------------------------------------------------------------------------------
Philip Morris Cos. Inc. 1.40%
- - ------------------------------------------------------------------------------
Hewlett Packard Co. 1.32%
- - ------------------------------------------------------------------------------
Merck & Co. Inc. 1.30%
- - ------------------------------------------------------------------------------
* LIPPER PERFORMANCE COMPARISON
GROWTH AND INCOME PEER GROUP
BASED ON TOTAL RETURNS FOR THE PERIODS ENDING MARCH 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
Number of Funds
in peer group: 569 557 523
Peer group average
total return: 5.6% 10.4% 28.0%
Lipper categories
in peer group: Growth & Income, S&P 500 Index
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
10
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - ------------------------------------------------------------------------------
GE U.S. EQUITY FUND
- - ------------------------------------------------------------------------------
Number
of Shares Value
- - ------------------------------------------------------------------------------
COMMON STOCK - 95.2%
- - ------------------------------------------------------------------------------
AEROSPACE - 2.7%
Boeing Co. 6,730 $ 582,986
General Dynamics Corp. 4,148 242,658
General Motors Corp. (Class H) 5,348 338,261
Lockheed Martin Corp. 17,628 1,337,524
McDonnell Douglas Corp. 12,724 1,165,837
Raytheon Co. 9,111 466,939
Rockwell International Corp. 5,149 303,147
United Technologies Corp. 14,468 1,624,033
6,061,385
AUTOMOTIVE - 2.3%
Eaton Corp. 5,010 301,853
Ford Motor Co. 57,517 1,977,136
General Motors Corp. 33,028 1,758,741
Goodyear Tire & Rubber Co. 19,412 990,012
Stewart & Stevenson Services Inc. 5,938 167,006
5,194,748
BANKS & FINANCIAL SERVICES - 9.9%
American Express Co. 37,367 1,844,996
Bank of New York Inc. 15,634 805,151
BankAmerica Corp. 7,519 582,722
BayBanks Inc. 3,695 397,213
Beneficial Corp. 17,355 1,000,082
Block H & R Inc. 1,177 42,519
Boatmen's Bancshares Inc. 12,280 481,990
Chemical Banking Corp. 6,041 425,890
Citicorp 29,765 2,381,220
Countrywide Credit Industries 10,696 236,649
Dean Witter Discover & Co. 24,957 1,428,788
Dime Bancorp Inc. (new) 8,517 105,398 (a)
Edwards A G Inc. 6,062 150,792
Federal National Mortgage Assoc 107,158 3,415,661
First Chicago Corp. 15,662 649,973
First Interstate Bancorp 3,367 584,174
Mellon Bank Corp. 10,583 583,388
Merrill Lynch & Co. Inc. 3,689 224,107
Morgan (J.P.) & Co. Inc. 16,146 1,340,118
Nationsbank Corp. 4,524 362,486
Rollins Inc. 1,889 44,155
Standard Federal Bancorporation 3,946 167,705
State Street Boston Corp. 7,923 396,150
Student Loan Marketing Assoc 475 36,338
T. Rowe Price & Associates 2,559 135,627
Transamerica Corp. 4,497 336,713
Travelers Group Inc. 43,825 2,892,450
United States Bancorp 14,468 491,912
Wells Fargo & Co. 2,995 781,695
22,326,062
BROADCASTING, ENTERTAINMENT & MEDIA - 4.1%
Carmike Cinemas Inc. 674 15,334 (a)
Carnival Corp. (Class A) 5,085 139,837
Circus Circus Enterprises Inc. 7,508 252,456
Comcast Corp. (Class A) 36,259 641,331
Disney (Walt) Co. 15,985 1,021,042
Donnelley (R.R.) & Sons Co. 27,251 940,159
Dun & Bradstreet Corp. 13,251 803,342
Gannett Inc. 19,463 1,308,887
Interpublic Group Cos. Inc. 11,344 536,004
Knight Ridder Inc. 1,636 111,452
Readers Digest Association Inc. (Class A) 1,390 65,678
Reuters Holdings PLC ADR (Class B) 23,263 1,515,003
Tele-Communications Inc. 19,871 524,098 (a)
Tele-Communications Inc. (Class A) 26,541 492,667 (a)
Time Warner, Inc. 16,792 686,373
Viacom Inc. (Class B) 7,528 317,117 (a)
9,370,780
BUILDING MATERIALS & CONSTRUCTION - 0.1%
Masco Corp. 4,060 117,740
Sherwin Williams Co. 3,566 158,241
275,981
CHEMICAL - 2.9%
Air Products & Chemicals Inc. 16,311 890,988
Airgas Inc. 3,320 131,970 (a)
Du Pont de Nemours (E.I.) 34,269 2,844,327
Eastman Chemical Co. 5,951 411,363
FMC Corp. 2,376 178,497
Grace (WR) & Co. 3,058 239,289
IMC Global Inc. 8,136 296,964
Lubrizol Corp. 11,107 327,656
Morton International Inc. 22,850 876,869
Olin Corp. 1,843 160,341
Witco Corp. 7,923 279,286
6,637,550
CONSUMER RELATED - 11.7%
Albertsons Inc. 1,894 70,315
American Stores Co. 21,554 711,282
Anheuser Busch Cos. Inc. 26,549 1,788,739
Archer-Daniels Midland Co. 18,421 338,486
Armstrong World Industries Inc. 8,623 535,704
Catalina Marketing Corp. 1,397 109,141 (a)
Coca Cola Co. 979 80,890
Colgate Palmolive Co. 17,993 1,401,205
Conagra Inc. 10,842 440,456
- - ----------------
See Notes to Schedule of Investments and Financial Statements
11
<PAGE>
GE U.S. EQUITY FUND MARCH 31, 1996 (unaudited)
- - ------------------------------------------------------------------------------
Number
of Shares Value
- - ------------------------------------------------------------------------------
CPC International Inc. 10,107 $ 701,173
Dole Food Inc. 6,548 252,098
Duracell International Inc. 2,182 108,282
Earthgrains Co. 1,062 31,726 (a)
Eastman Kodak Co. 31,406 2,229,826
General Mills Inc. 9,123 532,555
Kellogg Co. 5,210 394,657
Loewen Group Inc. 871 25,477
Marriot International Inc. 407 19,333
McDonalds Corp. 28,300 1,358,400
Nestle S.A. 668 753,704 (a)
Nine West Group Inc. 2,498 108,038 (a)
Penney J C Inc. 4,556 226,661
Pepsico Inc. 70,886 4,483,539
Philip Morris Cos. Inc. 36,125 3,169,969
Procter & Gamble Co. 27,026 2,290,453
Quilmes Industrial S.A. 3,522 37,862 (a)
Ralston Purina Co. 3,763 251,651
Rubbermaid Inc. 3,141 89,126
Sara Lee Corp. 7,855 256,269
Scholastic Corp. 843 57,956 (a)
Stanhome Inc. 5,518 175,886
Sysco Corp. 8,304 272,994
Tambrands Inc. 2,873 134,313
Timken Co. 7,725 356,316
Tyson Foods Inc. (Class A) 2,971 69,076
Wal Mart Stores Inc. 107,844 2,493,892
26,357,450
DIVERSIFIED MANUFACTURING - 5.1%
Allied Signal Inc. 55,262 3,267,366
Canadian Pacific Ltd. 24,660 493,200
Dover Corp. 27,644 1,264,713
Hanson PLC ADR 34,079 511,185
ITT Corp. (new) 4,160 249,600
ITT Industries Inc. 5,898 150,399
Loews Corp. 18,192 1,375,770
Minnesota Mining & Manufacturing 26,790 1,738,001
Tecumseh Products Co. (Class A) 2,595 152,781
Tenneco Inc. 11,694 653,402
Textron Inc. 20,349 1,627,920
Trinova Corp. 2,356 75,097
Tyco International Ltd. 1,980 70,785
11,630,219
DRUGS, HEALTHCARE & COSMETICS - 10.9%
Abbott Laboratories 49,297 2,008,853
Allergan Inc. 27,631 1,018,893
American Home Products Corp. 23,424 2,538,576
American Medical Response 3,278 116,369 (a)
Arbor Drugs Inc. 5,916 124,236
Arrow International Inc. 7,863 327,297
Avon Products Inc. 6,271 537,738
Baxter International Inc. 18,106 819,297
Bristol-Myers Squibb Co. 30,432 2,605,740
Cardinal Health Inc. 2,764 177,587
Dentsply International Inc. 2,265 91,166
Eli Lilly & Co. 24,404 1,586,260
FHP International Corp. 17,063 539,617 (a)
Gillette Co. 2,160 111,780
International Flavours 3,982 190,638
Johnson & Johnson 28,958 2,671,376
Lincare Holdings Inc. 2,381 77,383 (a)
Living Centers Of America Inc. 2,781 103,592 (a)
Merck & Co. Inc. 47,316 2,945,421
Pfizer Inc. 33,142 2,220,514
Pharmacia & Upjohn Inc. 19,614 782,108
Schering Plough Corp. 22,501 1,307,871
Smithkline Beecham PLC ADR 33,289 1,714,384
24,616,696
ELECTRICAL & ELECTRONICS - 7.9%
ADT Ltd. 15,442 272,165 (a)
Airtouch Communications 41,407 1,288,793 (a)
AMP Inc. 30,183 1,248,822
Applied Materials Inc. 15,588 543,632 (a)
BBC Brown Boveri 713 867,422
Digital Equipment Corp. 891 49,116 (a)
EG & G Inc. 16,123 360,752
Emerson Electric Co. 33,039 2,667,899
General Signal Corp. 14,916 540,705
Hewlett Packard Co. 31,902 2,998,788
Hubbell Inc. (Class B) 27,940 1,812,608
Intel Corp. 28,839 1,640,218
Molex Inc. (Class A) 5,165 165,280
Motorola Inc. 16,607 880,171
National Service Industries Inc. 3,869 140,251
Northern Telecom Ltd. 6,580 314,195
Perkin Elmer Corp. 6,793 367,671
Philips Electronics N.V. 15,053 547,553
Sensormatic Electronics Corp. 801 16,220
Ucar International Inc. 4,247 165,102 (a)
Varian Associates Inc. 19,433 969,221
17,856,584
ELECTRIC UTILITIES - 2.4%
CMS Energy Corp. 7,575 223,462
Dominion Resources Inc. 12,676 502,286
Duke Power Company 1,413 71,357
Florida Progress Corp. 5,348 182,501
Illinova Corp. 6,735 189,422
NIPSCO Industries Inc. 9,931 369,930
Pacificorp 28,919 603,684
Pinnacle West Capital Corp. 15,901 459,141
Portland General Corp. 6,406 196,984
Public Service Co. Colorado 8,319 293,245
Public Service Co. New Mexico 17,886 333,127
Southern Co. 42,784 1,021,468
Unicom Corp. 36,647 989,469
5,436,076
- - ----------------
See Notes to Schedule of Investments and Financial Statements
12
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - ------------------------------------------------------------------------------
Number
of Shares Value
- - ------------------------------------------------------------------------------
ENERGY & ENERGY RELATED - 10.0%
Amerada Hess Corp. 2,080 $ 114,400
Amoco Corp. 30,052 2,171,257
Anadarko Petroleum Co. 9,275 514,762
Atlantic Richfield Co. 2,303 274,057
Baker Hughes Inc. 20,373 595,910
British Petroleum PLC ADR 3,170 336,813
Burlington Resources Inc. 25,845 959,496
Chevron Corp. 8,038 451,133
Columbia Gas Systems Inc. 2,615 119,963
Dresser Industries Inc. 7,709 235,125
Eastern Enterprises 8,074 286,627
Exxon Corp. 47,735 3,896,369
FPL Group Inc. 17,019 770,110
Louisiana Land & Exploration Co. 2,774 129,338
Mobil Corp. 15,166 1,757,360
Occidental Petroleum Corp. 10,434 279,110
Phillips Petroleum Co. 8,759 345,980
Royal Dutch Petroleum Co. 24,862 3,511,757
Santa Fe Energy Resources Inc. 9,728 102,144 (a)
Schlumberger Ltd. 29,992 2,373,117
Texaco Inc. 25,219 2,168,834
Unocal Corp. 25,723 858,505
USX Marathon Group 13,746 264,611
22,516,778
FOREST PRODUCTS, PAPER & PACKAGING - 1.9%
Avery Dennison Corp. 3,170 171,180
Crown Cork & Seal Inc. 3,961 193,099
International Paper Co. 5,111 201,246
Kimberly Clark Corp. 18,691 1,392,480
Mead Corp. 15,766 851,364
Owens Illinois Inc. 16,035 258,564 (a)
Weyerhaeuser Co. 24,363 1,123,743
4,191,676
INDUSTRIAL PRODUCTS & SERVICES - 1.1%
Browning-Ferris Industries Inc. 15,421 485,761
Corning Inc. 8,021 280,735
Ecolab Inc. 2,940 88,200
Flightsafety International Inc. 2,582 143,947
Waste Management
International PLC ADR 4,528 44,714 (a)
Wheelabrator Technologies Inc. 8,311 138,170
WMX Technologies Inc. 38,461 1,221,137
2,402,664
INSURANCE - 4.7%
American International Group Inc. 27,911 2,613,167
Chubb Corp. 2,655 249,238
CMAC Investment Corp. 3,367 190,236
CNA Financial Corp. 991 110,249 (a)
General Reinsurance Corp. 7,376 1,075,052
ITT Hartford Group Inc. 10,238 501,662
Jefferson Pilot Corp. 587 49,308
Lincoln National Corp. 17,385 882,289
Marsh & McLennan Cos 9,919 921,227
Providian Corp. 22,258 993,263
Reliastar Financial Corp. 6,124 277,111
St. Paul Cos. Inc. 20,221 1,122,265
TIG Holdings Inc. 42,693 1,387,522
UNUM Corp. 5,645 335,878
10,708,467
MACHINERY & MACHINE TOOLS - 1.1%
Caterpillar Inc. 2,759 187,612
Cooper Industries Inc. 8,778 342,342
Deere & Co. 36,861 1,538,947
Ingersoll Rand Co. 9,904 403,588
2,472,489
MERCHANDISING - 2.6%
American Greetings Corp. (Class A) 9,183 253,680
Charming Shoppes Inc. 25,649 132,253
Circuit City Stores Inc. 10,696 319,543
CUC International Inc. 756 22,113 (a)
Dayton Hudson Corp. 3,565 302,579
Eckerd Jack Corp. 793 38,163
Federated Department Stores Inc. 26,907 867,751 (a)
Home Depot Inc. 17,520 838,770
Limited Inc. 2,620 49,780
May Department Stores Co. 3,862 186,342
Melville Corp. 1,981 71,068
Price Costco Inc. 20,021 375,394 (a)
Sears Roebuck & Co. 41,697 2,032,729
Toys 'R Us 17,684 477,468 (a)
5,967,633
METALS - 0.7%
Barrick Gold Corp. 11,437 347,399
Freeport McMoran Copper & Gold (Class A) 14,170 435,727
Inco Ltd. 3,020 95,508
Newmont Mining Corp. 12,675 717,734
Santa Fe Pacific Gold Corp. 2,971 47,536
1,643,904
NATURAL GAS - 0.5%
Enserch Corp. 15,743 255,824
Nabors Industries Inc. 17,002 242,278 (a)
Petroleum Geo Services ADR 1,311 33,021 (a)
Sonat Inc. 12,581 452,916
Tosco Corp. 4,952 232,125
1,216,164
- - ----------------
See Notes to Schedule of Investments and Financial Statements
13
<PAGE>
GE U.S. EQUITY FUND MARCH 31, 1996 (unaudited)
- - ------------------------------------------------------------------------------
Number
of Shares Value
- - ------------------------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES - 4.6%
3Com Corp. 1,981 $ 78,992
Amdahl Corp. 7,690 65,365 (a)
Automatic Data Processing Inc. 27,363 1,077,418
Cisco Systems Inc. 11,092 514,391 (a)
Compaq Computer Corp. 4,357 168,289 (a)
Computer Associates International Inc. 12,942 926,971
Equifax Inc. 67,391 1,356,244
First Data Corp. 19,838 1,398,579
International Business Machines 38,493 4,277,535
Microsoft Corp. 1,888 194,700 (a)
Pitney Bowes Inc. 4,477 219,373
Wallace Computer Series Inc. 1,823 106,418
10,384,275
REAL ESTATE - 0.2%
Camden Property Trust 3,368 77,885
Debartolo Realty Corp. 10,862 162,930
Manufactured Home Communities Inc. 2,870 50,943
Oasis Residential Inc. 2,675 62,862
354,620
TELEPHONE & UTILITIES - 5.8%
American Telephone & Telegraph 76,152 4,664,310
Bellsouth Corp. 30,587 1,131,719
Cellular Communications Inc. 7,130 364,521 (a)
Frontier Corp. 3,942 124,173
GTE Corp. 64,894 2,847,224
International Cabletel Inc. 25,871 779,364 (a)
MCI Communications Corp. 35,734 1,080,954
NYNEX Corp. 15,283 762,240
SBC Communications Inc. 19,866 1,045,448
U.S. West Inc. 12,293 397,986
13,197,939
TRANSPORTATION - 2.0%
America West Airlines Inc. 3,091 66,070 (a)
AMR Corp. 10,392 930,084 (a)
Burlington Northern Santa Fe 13,071 1,073,456
CSX Corp. 11,727 535,044
Delta Air Lines Inc. 3,553 273,137
Pittston Brinks Group 3,771 100,874
Pittston Burlington Group 1,369 26,867
Union Pacific Corp. 23,269 1,596,835
4,602,367
TOTAL COMMON STOCK
(COST $175,678,794) 215,422,507
- - ------------------------------------------------------------------------------
Principal
Amount Value
- - ------------------------------------------------------------------------------
CONVERTIBLE BONDS - 0.3%
- - -----------------------------------------------------------------------------
ADT Operations Inc.
5.05% 07/06/10 $ 90,000 $ 43,650 (d)
AMR Corp.
6.125% 11/01/24 192,000 223,680
Cemex
4.25% 11/01/97 202,000 182,810 (b)
Continental Airlines Inc.
6.75% 04/15/06 178,000 193,130 (b)
Federated Department Stores Inc.
5.00% 10/01/03 83,000 92,130
Valhi Inc.
7.03% 10/20/07 130,000 57,525 (d)
TOTAL CONVERTIBLE BONDS
(COST $734,557) 792,925
- - -----------------------------------------------------------------------------
Number
of Shares Value
- - -----------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK - 0.6%
- - -----------------------------------------------------------------------------
Continental Airlines
Finance Trust, 8.50% 3,565 232,616 (b)
Delta Air Lines Inc., (Series C) 3,509 214,488 (a)
International Paper
Capital Trust, 5.25% 3,117 143,382
Occidental Petroleum Corp., 7.75% 7,598 469,176 (b)
Santa Fe Energy Resources Inc.
(Series A) 8.25% 4,865 96,692
St. Paul Capital LLC, 6.00% 527 29,776
Unocal Corp., 7.00% 2,571 142,690 (b)
TOTAL CONVERTIBLE PREFERRED STOCK
(COST $1,213,908) 1,328,820
- - -----------------------------------------------------------------------------
Expiration Number
Date/ of
Strike Price Contracts Value
- - -----------------------------------------------------------------------------
CALL OPTIONS PURCHASED -- 0.0%
- - -----------------------------------------------------------------------------
Hewlett Packard May 96/85 39 7,312
Inco Ltd. Apr. 96/30 10 469
International Business
Machines Apr. 96/115 19 11,044
Motorola Inc. Apr. 96/50 14 1,690
Motorola Inc. Apr. 96/55 39 12,919
TOTAL CALL OPTIONS PURCHASED
(COST $32,185) 33,434
TOTAL INVESTMENTS IN SECURITIES
(COST $177,659,444) 217,577,686
- - ------------
See Notes to Schedule of Investments and Financial Statements
14
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (unaudited)
- - -----------------------------------------------------------------------------
Principal
Amount Value
- - -----------------------------------------------------------------------------
SHORT TERM INVESTMENTS - 4.8%
- - -----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES AND TIME DEPOSITS - 3.5%
Federal Home Loan Bank
5.03% 05/29/96 $ 5,000,000 $ 4,959,480 (d)
Federal Home Loan Mortgage Corp.
5.35% 04/11/96 2,500,000 2,496,285 (d)
State Street Cayman Islands
5.375% 04/01/96 485,000 485,000
7,940,765
REPURCHASE AGREEMENT - 1.3%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $2,950,000) 2,950,000 2,950,000
(dated 3/29/96 proceeds
$2,951,266, collateralized by
$3,009,664 United States Treasury
Bond, 8.75%, 5/15/17)
TOTAL SHORT TERM INVESTMENTS
(COST $10,890,765) 10,890,765
- - -----------------------------------------------------------------------------
Expiration Number
Date/ of
Strike Price Contracts Value
- - -----------------------------------------------------------------------------
CALL OPTIONS WRITTEN - 0.0%
- - -----------------------------------------------------------------------------
Dun & Bradstreet May 96/65 3 (85)
Hewlett Packard May 96/100 39 (12,431)
International Business
Machines Apr. 96/100 8 (9,600)
Motorola Inc. Apr. 96/60 39 (853)
TOTAL CALL OPTIONS WRITTEN
(PREMIUM RECEIVED $20,407) (22,969)
Other Assets and Liabilities, net (0.9%) (2,084,203)
---------------
NET ASSETS - 100% $ 226,361,279
===============
OTHER INFORMATION
- - -----------------------------------------------------------------------------
The GE U.S. Equity Fund had the following Futures
Contracts open at March 31, 1996:
Number
Expiration of Underlying Unrealized
Description Date Contracts Face Value Loss
- - -----------------------------------------------------------------------------
S&P 500 June 1996 19 $6,186,875 $44,025
- - ------------
See Notes to Schedule of Investments and Financial Statements
15
<PAGE>
GE STRATEGIC INVESTMENT FUND
- - --------------------------------------------------------------------------------
Q&A
- - ---
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
portfolio. Please refer to page 27 for Bob's biographical details.
Q. How did the GE Strategic Investment Fund's industry benchmarks and Lipper
peers perform for the first quarter of 1996?
A. Please refer to specific discussions of the industry benchmarks which are
included in the respective Q&A sections for the GE International Funds, GE
U.S. Equity Fund, and the GE Fixed Income Funds.
The GE Strategic Investment Fund's Lipper peer group of 261 Balanced Funds
had an average return of 2.7% for the three months ended March 31, 1996. In
general, GE Strategic Investment Fund performed in line with peer funds for
the three month period, but outperformed the average 7.0% return of its 259
Lipper peer funds on a six month basis.
Refer to the following page to see how your class of shares in the GE
Strategic Fund performed.
Q. What is the current breakdown in the asset mix for the Fund and has it
changed since last year?
A. The weightings at March 31, 1996 were as follows: domestic equities 43%,
international equities 15%, fixed income 31% and cash 11%. There has been
no change in policy for the first part of the year. The total equity weight
of 58% is below what we would consider a more normal weighting of 60-70%
due to the record high valuation levels present in today's U.S. equity
market. Correspondingly, the cash weighting is higher than normal. We are
well positioned to add to equities should there be a sell-off in the equity
market.
Q. How do you decide the weights to have in each asset class?
A. We have an asset allocation committee that meets monthly to assess the
outlook for the financial markets. They recommend an asset mix for the GE
Pension Trust and mutual funds, such as GE Strategic Investment Fund,
following an asset allocation strategy. They employ a number of
quantitative models and assess qualitative issues in coming up with their
recommendations. Over the last few years, the stock and bond markets have
pretty much moved in the same direction, and shifts in asset mix have been
few. If the markets move in opposite directions or in disproportionate
magnitudes, we may be much more active in adjusting the weights.
Q. What is the outlook for the Fund for the balance of the year?
A. The answer is a long one because of the multiple asset classes. Please see
the commentary for the other GE Funds for the outlook of the different
asset classes. Overall, we feel the economy is in a slow- growth mode which
should be favorable for interest rates and inflation. We don't see much
risk of higher rates than what has already occurred year to date. Our
enthusiasm for the US stock market is tempered by the record high valuation
measures present. International stocks look more attractive,
valuation-wise, than U.S. stocks.
Going forward, our efforts remain focused on the asset allocation decision
in order to properly position GE Strategic for the continuously changing
financial markets.
16
<PAGE>
GE STRATEGIC INVESTMENT FUND
- - ----------------------------------------------------------------------------
- - ----------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- - ----------------------------------------------------------------------------
Domestic Equity 42.9%
Bonds & Notes 31.4%
Foreign Equity 14.8%
Cash & Other 10.9%
- - ----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - ----------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - ----------------------------------------------------------------------------
Class A 2.60% 7.99% 21.81% 11.60% 1/1/94
- - ----------------------------------------------------------------------------
Class A* - 2.28% 2.86% 16.02% 9.22% 1/1/94
- - ----------------------------------------------------------------------------
Class B 2.46% 7.72% 21.19% 11.16% 12/22/93
- - ----------------------------------------------------------------------------
Class B* - 1.54% 3.72% 17.19% 10.37% 12/22/93
- - ----------------------------------------------------------------------------
Class C 2.70% 8.11% 22.07% 11.52% 2/22/93
- - ----------------------------------------------------------------------------
Class D 2.75% 8.27% 22.44% 12.24% 11/29/93
- - ----------------------------------------------------------------------------
LB Agg. - 1.77% 2.40% 10.79%
- - ----------------------------------------------------------------------------
S&P 500 5.51% 11.81% 32.26%
============================================================================
* With Load
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.
- - ----------------------------------------------------------------------------
GE STRATEGIC INVESTMENT FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1996
- - ----------------------------------------------------------------------------
U.S. Treasury Note, 5.25%, 1/31/01 2.91%
- - ----------------------------------------------------------------------------
U.S. Treasury Note, 5.875%, 11/15/05 2.55%
- - ----------------------------------------------------------------------------
U.S. Treasury Note, 5.50%, 12/31/00 1.74%
- - ----------------------------------------------------------------------------
GNMA, 9%, 4/15/11 1.50%
- - ----------------------------------------------------------------------------
U.S. Treasury Bond, 7.625%, 2/15/25 1.43%
- - ----------------------------------------------------------------------------
GNMA, 7.50%, TBA 1.41%
- - ----------------------------------------------------------------------------
U.S. Treasury Note, 6.75%, 4/30/00 1.39%
- - ----------------------------------------------------------------------------
Reuters Holding PLC ADR (Class B) 1.36%
- - ----------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.36%
- - ----------------------------------------------------------------------------
Travelers Group Inc. 1.29%
============================================================================
* LIPPER PERFORMANCE COMPARISON
BALANCED PEER GROUP
BASED ON TOTAL RETURNS FOR THE PERIODS ENDING MARCH 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
- - -----------------------------------------------------------------------
Number of Funds
in peer group: 261 259 239
Peer group average
total return: 2.7% 7.0% 21.1%
Lipper categories
in peer group: Balanced
* SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
17
<PAGE>
- - ----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - ----------------------------------------------------------------------------
GE STRATEGIC INVESTMENT FUND
- - ----------------------------------------------------------------------------
Number
of Shares Value
- - ----------------------------------------------------------------------------
COMMON STOCK - 57.7%
- - ----------------------------------------------------------------------------
AUTOMOTIVE - 0.5%
Suzuki Motor Corp. 14,000 $ 172,750
Valeo 3,148 167,201 (a)
339,951
BANKS & FINANCIAL SERVICES - 7.1%
American Express Co. 7,100 350,563
Banco Comercial Portugues ADR 8,527 116,180
Banque Nationale de Paris 2,590 101,309 (a)
Block H & R Inc. 800 28,900
Citicorp 6,400 512,000
Countrywide Credit Industries 10,800 238,950
Den Danske Bank 1,844 116,776
Deutsche Bank AG 3,615 182,011
Federal National Mortgage Assoc. 31,000 988,125
Grupo Financiero Bancomer ADR (Series C) 5,517 44,136 (a,b)
International Nederlanden 1,735 126,021
Morgan (J.P.) & Co. Inc. 3,000 249,000
Rollins Inc. 1,600 37,400
State Street Boston Corp. 8,000 400,000
Thai Farmers Bank 22,300 261,439
Travelers Group Inc. 14,200 937,200
Wells Fargo & Co. 1,900 495,900
5,185,910
BROADCASTING, ENTERTAINMENT & MEDIA - 5.7%
Carmike Cinemas Inc. 500 11,375 (a)
Carnival Corp. (Class A) 5,800 159,500
Circus Circus Enterprises Inc. 2,500 84,063 (a)
Comcast Corp. (Class A) 13,600 240,550
Disney (Walt) Co. 8,700 555,712
Donnelley (R.R.) & Sons Co. 8,300 286,350
Gannett Inc. 3,800 255,550
Interpublic Group Cos. Inc. 4,400 207,900
Polygram 2,075 125,598
Readers Digest Association Inc. (Class A) 1,800 85,050
Reed International 10,661 180,205
Reuters Holdings PLC ADR (Class B) 15,200 989,900
Tele-Communications Inc. 2,850 75,169 (a)
Tele-Communications Inc. (Class A) 16,500 306,281 (a)
Television Broadcasts Ltd. ADR 22,000 80,928
Thorn Emi 6,069 155,940
Time Warner, Inc. 3,800 155,325
Wolters Kluwer 2,014 221,624
4,177,020
BUILDING MATERIALS & CONSTRUCTION - 0.6%
Hutchison Whampoa Ltd. 34,000 214,533
Siam Cement 100 5,149
VA Technologie AG 1,461 180,184 (a)
399,866
CHEMICAL - 1.2%
Air Products & Chemicals Inc. 3,300 180,263
Airgas Inc. 2,900 115,275
Morton International Inc. 12,700 487,362
SGL Carbon 942 89,970
872,870
CONSUMER RELATED - 5.1%
Anheuser Busch Cos. Inc. 3,200 215,600
Arbor Drugs Inc. 4,500 94,500
Burns Philip & Co. 74,496 158,923
Canon Inc. 10,000 190,699
Catalina Marketing Corp. 1,500 117,187 (a)
Coca Cola Co. 1,000 82,625
Colgate Palmolive Co. 1,200 93,450
Duracell International Inc. 1,300 64,513
Earthgrains Co. 128 3,824
Electrolux AB (Series B) 256 12,519
General Mills Inc. 1,500 87,562
Izumi Co. 7,000 132,835
Loewen Group Inc. 1,800 52,650
McDonalds Corp. 6,500 312,000
Nestle S.A. 100 112,830 (a)
Nine West Group Inc. 1,000 43,250
Nutricia Verenigde Bedrijven 1,831 183,421 (a)
Pepsico Inc. 12,700 803,275
Philip Morris Cos. Inc. 8,600 754,650
Procter & Gamble Co. 1,200 101,700
Scholastic Corp. 800 55,000 (a)
3,673,013
DIVERSIFIED MANUFACTURING - 4.8%
Alleghany Corp. 1,020 201,450
Allied Signal Inc. 14,000 827,750
BBC Brown Boveri 275 334,559
Dover Corp. 18,800 860,100
Grupo Carso S.A. de C.V. ADR 1,078 16,709 (a,b)
Hanson PLC ADR 17,100 256,500
Imi 14,617 99,976
Loews Corp. 7,600 574,750
Sasib 40,199 79,873 (a)
Siebe 5,301 70,753
Tokyo Steel Manufacturing 5,000 90,675
Tyco International Ltd. 2,200 78,650
3,491,745
- - ------------
See Notes to Schedule of Investments and Financial Statements
18
<PAGE>
- - ----------------------------------------------------------------------------
Number
of Shares Value
- - ----------------------------------------------------------------------------
DRUGS, HEALTHCARE & COSMETICS - 8.7%
Abbott Laboratories 15,200 $ 619,400
American Home Products Corp. 3,800 411,825
American Medical Response 3,200 113,600 (a)
Arrow International Inc. 1,200 49,950
Astra AB 8,721 401,646
Avon Products Inc. 3,200 274,400
Bristol-Myers Squibb Co. 4,800 411,000
Cardinal Health Inc. 2,400 154,200
Dentsply International Inc. 2,000 80,500
Eli Lilly & Co. 5,600 364,000
FHP International Corp. 2,500 79,062 (a)
Gehe AG 222 127,820 (a)
Gehe AG (new) 5 2,818
Gillette Co. 2,500 129,375
International Flavours 2,200 105,325
Johnson & Johnson 7,900 728,775
Lincare Holdings Inc. 2,500 81,250 (a)
Living Centers of America Inc. 3,100 115,475 (a)
Medeva 46,810 174,680
Merck & Co. Inc. 7,600 473,100
Pfizer Inc. 12,000 804,000
Roche Holdings AG 33 274,121
Smithkline Beecham PLC ADR 5,700 293,550
Takare 26,913 61,819
6,331,691
ELECTRICAL & ELECTRONICS - 3.7%
Alcatel Alsthom 71 6,582 (a)
AMP Inc. 8,900 368,237
Emerson Electric Co. 2,500 201,875
Hewlett Packard Co. 1,200 112,800
Hubbell Inc. (Class B) 7,600 493,050
Intel Corp. 6,500 369,687
Molex Inc. (Class A) 5,100 163,200
Murata Manufacturing Co. 3,000 103,202
Nippondenso Co. 5,000 100,958
Rohm Co. 7,000 399,159
Secom Co. 2,000 130,685
Siemens AG 397 218,494
2,667,929
ENERGY & ENERGY RELATED - 4.7%
Amoco Corp. 1,000 72,250
Anadarko Petroleum Co. 4,300 238,650
Atlantic Richfield Co. 2,300 273,700
Coflexip ADR 5,666 121,111
Exxon Corp. 3,800 310,175
Omv AG 1,075 99,071
Repsol S.A. 6,170 232,652
Royal Dutch Petroleum Co. 4,700 663,875
Schlumberger Ltd. 7,600 601,350
Texaco Inc. 4,600 395,600
Total S.A. (Class B) 2,975 200,838 (a)
Unocal Corp. 7,200 240,300
3,449,572
FOREST PRODUCTS, PAPER & PACKAGING - 0.9%
Kimberly Clark Corp. 8,300 618,350
INDUSTRIAL PRODUCTS & SERVICES - 1.6%
Browning-Ferris Industries Inc. 7,600 239,400
Flightsafety International Inc. 2,500 139,375
ISS (Series B) 3,354 93,551
Technip 3,003 262,354
Waste Management International PLC ADR 3,265 32,242 (a)
WMX Technologies Inc. 13,500 428,625
1,195,547
INSURANCE - 2.6%
American International Group Inc. 3,800 355,775
Chubb Corp. 2,500 234,687
General Reinsurance Corp. 2,500 364,375
Marsh & McLennan Cos. 3,800 352,925
Schw Ruckversicher 208 210,903
TIG Holdings Inc. 4,500 146,250
UNUM Corp. 3,700 220,150
1,885,065
MERCHANDISING - 1.5%
Carrefour 350 256,294
CUC International Inc. 700 20,475 (a)
Giordano International 126,000 130,334
Home Depot Inc. 3,800 181,925
Ito Yokado Co. 3,000 178,079
Toys 'R Us 12,100 326,700 (a)
1,093,807
OFFICE EQUIPMENT & SUPPLIES - 3.3%
Automatic Data Processing Inc. 11,700 460,687
Cisco Systems Inc. 3,000 139,125
Equifax Inc. 31,000 623,875
First Data Corp. 11,856 835,848
Microsoft Corp. 1,900 195,938 (a)
Sap AG 1,229 176,987
2,432,460
TELEPHONE & UTILITIES - 4.4%
Airtouch Communications 12,100 376,613 (a)
American Telephone & Telegraph 6,100 373,625
Cellular Communications Inc. 5,000 255,625 (a)
DDI Corp. 38 289,507
GTE Corp. 8,900 390,487
International Cabletel Inc. 17,000 512,125 (a)
MCI Communications Corp. 9,900 299,475
- - ------------
See Notes to Schedule of Investments and Financial Statements
19
<PAGE>
- - ----------------------------------------------------------------------------
GE STRATEGIC INVESTMENT FUND MARCH 31, 1996 (unaudited)
- - ----------------------------------------------------------------------------
Number
of Shares Value
- - ----------------------------------------------------------------------------
NYNEX Corp. 2,000 $ 99,750
Stet 31,450 87,225 (a)
Stet (Savings) 1,330 2,643 (a)
Telecom Italia Mobile 3,514 6,378 (a)
Telefonos De Mexico S.A. ADR 1,841 60,523
Telekom Malaysia 21,000 193,399
Veba AG 5,900 286,747
3,234,122
TRANSPORTATION - 1.3%
Brambles Industries Ltd. 11,643 153,578
Danzas Holdings 116 143,854 (a)
Pittston Brinks Group 4,000 107,000
Pittston Burlington Group 1,750 34,344
Union Pacific Corp. 7,600 521,550
960,326
TOTAL COMMON STOCK
(COST $33,376,662) 42,009,244
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
BONDS AND NOTES - 31.4%
- - ----------------------------------------------------------------------------
U.S. TREASURIES - 14.3%
U.S. TREASURY BONDS
6.25% 08/15/23 $ 60,000 $ 55,472
6.875% 08/15/25 549,000 557,575
7.625% 02/15/25 948,000 1,043,245
8.125% 08/15/19 60,000 68,569
9.00% 11/15/18 140,000 174,082
12.00% 05/15/05 - 08/15/13 360,000 512,192
2,411,135
U.S. TREASURY NOTES
5.00% 02/15/99 34,000 33,203
5.25% 01/31/01 2,194,000 2,118,570
5.50% 12/31/00 1,300,000 1,267,708
5.625% 02/15/06 75,000 71,133
5.875% 08/15/98 - 11/15/05 2,217,000 2,147,309
6.00% 08/31/97 410,000 411,665
6.125% 09/30/00 83,000 83,013
6.25% 08/31/00 100,000 100,500
6.50% 05/15/05 - 08/15/05 185,000 185,776
6.75% 04/30/00 985,000 1,008,552
7.50% 02/15/05 400,000 429,248
8.00% 05/15/01 100,000 108,078
7,964,755
TOTAL U.S. TREASURIES
(COST $10,605,269) 10,375,890
ASSET BACKED - 0.3%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 30,457 29,163
AT & T Universal Card Master Trust
5.95% 10/17/02 20,000 19,669
CIT RV Trust
5.40% 12/15/11 39,393 38,497
Discover Card Master Trust
6.05% 08/18/08 60,000 56,381
6.70% 02/16/00 50,000 50,500
Standard Credit Card Master Trust
6.75% 06/07/00 50,000 50,593
TOTAL ASSET BACKED
(COST $247,949) 244,803
<PAGE>
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
CORPORATE NOTES - 5.7%
American Home Products
7.70% 02/15/00 250,000 $ 260,397
Arkla Inc.
8.875% 07/15/99 75,000 78,713
Bangkok Bank Public Ltd.
8.25% 03/15/16 30,000 29,856 (b)
BCH Cayman Islands
8.25% 06/15/04 25,000 26,181
BHP Finance USA
6.42% 03/01/26 40,000 39,328
Blockbuster Entertainment
6.625% 02/15/98 175,000 175,455
Capital One Bank
6.43% 06/29/98 150,000 149,896
Carter Holt Harvey Ltd.
8.875% 12/01/04 200,000 221,190
Central Maine Power Co.
7.40% 06/02/98 200,000 200,130
Citicorp
8.625% 12/01/02 100,000 109,482
Developers Diversified
7.00% 03/05/01 115,000 112,775
Disney (Walt) Co.
6.375% 03/30/01 100,000 99,790
Foster Technology Inc.
6.75% 11/15/05 35,000 34,191
Freeport McMoran Resource Partner
7.00% 02/15/08 35,000 33,206
General Motors Acceptance Corp.
6.10% 09/11/97 125,000 125,326
General Motors Corp.
8.89% 08/18/03 30,000 33,114
Glaxo Wellcome PLC
6.125% 01/25/06 40,000 37,625
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 100,000 104,000
- - ---------
See Notes to Schedule of Investments and Financial Statements
20
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (unaudited)
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
HSBC Finance Nederland B.V.
7.40% 04/15/03 $ 100,000 $ 100,397 (b)
Hydro Quebec
8.05% 07/07/24 75,000 81,449
ITT Corp. (new)
6.25% 11/15/00 35,000 34,396
Joy Technologies Inc.
10.25% 09/01/03 100,000 110,950
KFW International Finance Inc.
8.20% 06/01/06 30,000 33,179
Kingdom of Sweden
10.25% 11/01/15 50,000 63,875
Landeskreditbank Baden
7.875% 04/15/04 40,000 42,752
Lyondell Petrochemical Co.
7.55% 02/15/26 50,000 46,838
Matsushita Electric Industrial Ltd.
7.25% 08/01/02 50,000 51,523
Nestle S.A.
7.375% 04/12/05 70,000 72,555
New York New York
6.10% 02/01/98 100,000 99,560
Noranda Inc.
8.00% 06/01/03 70,000 73,173
North Atlantic Energy Corp.
9.05% 06/01/02 150,000 150,750
Ontario Province Canada
6.125% 06/28/00 250,000 246,437
Paramount Communications Inc.
5.875% 07/15/00 150,000 144,349
Pennzoil Co.
10.625% 06/01/01 50,000 55,291
Quaker Oats Co.
7.28% 08/29/05 25,000 25,372
Republic of Columbia
7.25% 02/15/03 35,000 33,359
RJR Nabisco Inc.
8.00% 07/15/01 125,000 122,117
Salomon Inc.
6.75% 02/15/03 110,000 104,876
Smurfit Capital
7.50% 11/20/25 50,000 46,934
Solectron Corp.
7.375% 03/01/06 35,000 34,213 (b)
Taubman Realty Group L.P.
8.00% 06/15/99 80,000 81,596
TCI Communications Inc.
6.46% 03/06/00 125,000 123,437
6.69% 03/31/06 100,000 100,000
United Air Lines Inc.
11.21% 05/01/14 40,000 51,396
United Co. Financial Corp.
7.00% 07/15/98 150,000 150,807
TOTAL CORPORATE NOTES
(COST $4,171,673) 4,152,236
- - ---------
See Notes to Schedule of Investments and Financial Statements
<PAGE>
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
MORTGAGE-BACKED - 11.1%
Federal Home Loan Mortgage Corp.
6.50% 03/01/04 - 01/01/24 $ 314,200 $ 307,555
6.50% TBA 208,000 197,730 (c)
7.00% 11/01/09 - 02/01/26 68,365 68,205
7.50% 06/01/23 - 02/01/26 462,971 462,849
8.00% 10/01/25 - 02/01/26 760,938 774,489
9.00% 04/01/16 - 06/01/21 575,924 608,636
2,419,464
FEDERAL NATIONAL MORTGAGE ASSOC.
6.50% 01/01/04 - 01/01/24 81,931 78,457
6.50% TBA 223,000 211,711 (c)
7.00% 07/01/23 - 03/15/26 468,194 456,272
8.50% 04/01/17 33,037 34,548
9.00% 08/01/07 - 08/01/24 51,351 53,971
834,959
GOVERNMENT NATIONAL MORTGAGE ASSOC.
7.00% TBA 180,000 175,331 (c)
7.50% 04/15/23 - 08/15/23 132,313 132,544
7.50% TBA 1,025,000 1,022,758 (c)
7.50% 03/20/25 23 23 (h)
8.00% 07/15/17 100,471 103,618
9.00% 07/15/09 - 05/15/16 1,348,025 1,449,933
9.50% 12/15/09 166,900 181,412
3,065,619
COLLATERALIZED MORTGAGE OBLIGATIONS
Aetna Commercial Mortgage Trust
6.422% 12/26/30 30,038 29,682
American Southwest Financial Securities Corp.
0.70% 01/18/09 165,499 5,017 (g)
1.08% 01/18/09 228,110 12,047 (g)
7.30% 06/17/07 29,206 29,535
Asset Securitization Corp.
7.10% 08/13/29 49,735 49,781
Collateralized Mortgage Obligation Trust
4.932% 11/01/18 44,921 29,872 (d,f)
6.406% 09/01/15 51,266 41,526 (d,f)
8.00% 01/01/17 148,974 150,404
Community Program Loan Trust
4.50% 10/01/18 170,000 144,341
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 34,514 34,212
6.85% 12/17/27 73,000 71,198
FDIC REMIC Trust
7.85% 09/25/25 60,000 60,975
Federal Home Loan Mortgage Corp.
3.50% 11/15/07 109,000 88,222
8.00% 04/15/20 30,000 30,825
1009.00% 09/15/21 1,017 35,151 (g)
Federal National Mortgage Assoc.
2.21% 07/25/10 200,000 26,500 (g)
2.335% 07/25/10 52,000 5,769 (g)
2.525% 07/25/10 125,348 11,614 (g)
- - ---------
See Notes to Schedule of Investments and Financial Statements
21
<PAGE>
GE STRATEGIC INVESTMENT FUND MARCH 31, 1996 (unaudited)
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
6.16% 10/01/24 $ 117,651 $ 87,503 (d,f)
8.00% 07/01/24 122,135 36,793 (g)
8.50% 03/01/17 - 01/01/18 97,903 28,391 (g)
Federal National Mortgage Assoc. REMIC
6.20% 09/25/22 103,139 81,609 (d,f)
6.965% 07/25/10 40,000 39,731
LB Commercial Conduit Mortgage Trust
7.144% 08/25/04 39,770 40,068
Merrill Lynch Mortgage Investor's Inc.
6.815% 06/15/21 48,421 48,905
7.054% 05/25/15 48,232 48,398
Mid-State Trust
8.33% 04/01/30 133,710 139,225
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 59,588
Structured Asset Securities Corp.
8.509% 04/01/26 150,000 153,795
Vornado Finance Corp.
6.36% 12/01/00 105,000 102,795 (b)
1,723,472
TOTAL MORTGAGE-BACKED
(COST $8,114,309) 8,043,514
TOTAL BONDS AND NOTES
(COST $23,139,200) 22,816,443
- - ----------------------------------------------------------------------------
CONVERTIBLE BONDS - 0.0%
- - ---------------------------------------------------------------------------
Sasib
9.25% 12/31/97
(Cost $8,075) ITL 15,000,000 7,547
TOTAL INVESTMENTS IN SECURITIES
(COST $56,523,937) 64,833,234
SHORT TERM INVESTMENTS - 11.7%
- - ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 9.7%
Federal Farm Credit Bank
5.29% 04/01/96 1,000,000 1,000,000 (d)
Federal Home Loan Bank
5.29% 04/30/96 1,100,000 1,095,312 (d)
Federal Home Loan Mortgage Corp.
5.27% 04/15/96 2,000,000 1,995,901 (d)
5.35% 04/11/96 3,000,000 2,995,542 (d)
7,086,755
REPURCHASE AGREEMENT - 2.0%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $1,430,000) 1,430,000 1,430,000
(dated 3/29/96, proceeds
$1,430,614, collateralized by
$1,461,483 United States Treasury
Bond, 8.75%, 5/15/17)
TOTAL SHORT TERM INVESTMENTS
(COST $8,516,755) 8,516,755
Other Assets and Liabilities,
net (0.8%) (555,897)
-----------
NET ASSETS - 100% $72,794,092
===========
- - ---------
See Notes to Schedule of Investments and Financial Statements
22
<PAGE>
- - --------------------------------------------------------------------------------
GE TAX-EXEMPT FUND
- - --------------------------------------------------------------------------------
Q&A
- - ---
Bob Kaelin, who has overall responsibility for the GE Investments' tax-exempt
operation with assets exceeding $5 billion, has also managed the GE Tax-Exempt
Fund since its inception. His responsibilities also include managing the Elfun
Tax-Exempt Income Fund.
Effective in February, 1996 Stella Lou assumed management responsibility for the
GE Tax-Exempt Fund. Stella has 11 years of investment experience and has been
with GE Investments since 1994. Prior to joining GE Investments, she was a Vice
President and Portfolio Manager for Alliance Capital Management in New York.
Stella graduated from Cornell University with a B.S. degree in Applied Economics
and received her M.B.A. degree in Finance from New York University.
Q. How did the GE Tax-Exempt Fund's industry benchmark and Lipper peers
perform for the first quarter of 1996?
A. The Lehman Brothers Municipal Bond Index returned -1.2% for the three
months ended March 31, 1996. Our Lipper peer group of 238 General Municipal
Bond funds had an average return of -1.9% for the same period.
Refer to the following page to see how your class of shares in the GE
Tax-Exempt Fund performed compared to these benchmarks.
Q. Why did the Fund underperform its benchmark and peers?
A. The GE Tax-Exempt Fund underperformed its benchmarks due to a longer
average duration than the benchmark and the average for the peer group. The
longer duration is caused by longer maturity securities that are purchased
to maximize the tax-exempt income to the Fund. The Lehman Brothers
Municipal Bond Index also holds a greater percentage of pre-refunded bonds
that tend to outperform in down markets but are, in general, lower
yielding. Quality is also a contributing factor to the performance at March
31, 1996; the GE Tax-Exempt Fund had an average quality rating of Aa1/AA
while the Lehman Brothers Municipal Bond Index had an average quality
rating of A1/AA2. The lower average rating of the benchmark reflects the
greater potential risk and volatility of its performance.
Q. What has your investment strategy been?
A. The current strategy for this Fund has been to purchase high quality, high
federally income tax-exempt securities in the 20 to 30 year maturity range.
These provide the maximum amount of current income. As investor sentiment
turned against the market in the wake of the higher than expected
employment number of 705,000 jobs released in March, the Fund's cash
position was increased to 10% in anticipation of higher rates. This
strategy helped to mitigate the potential decline in the net asset value at
this time by reducing the duration of the portfolio by one year. The
negative market reaction was offset by the return to the market of the
retail investor. This increased retail demand served to stabilize the
municipal bond market.
Q. How has tax reform influenced the municipal market?
A. Tax reform seems to be diminishing in importance as a factor in the
municipal market. This is not to say it will not re-emerge if the 1996
presidential election makes it a campaign issue. The consensus opinion is
that very little significance will come from the tax reform debate.
Q. What is the outlook for the Fund and how have you positioned the Fund going
forward?
A. The municipal market will continue to be volatile during 1996. Economic
improvement and tax reform will be the primary influences on the market. We
are using sell offs in the market to purchase new securities at
advantageous yields. The goal in the coming months will be to increase the
average coupon of the portfolio to maximize tax-exempt income distributed
by the portfolio and reduce volatility.
23
<PAGE>
- - -----------------------------------------------------------------------------
GE TAX-EXEMPT FUND
- - -----------------------------------------------------------------------------
- - -----------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- - -----------------------------------------------------------------------------
Water & Sewer 18.5%
General Obligation 17.8%
Cash & Other 13.9%
Municipal Buildings 13.7%
Education 10.0%
Power 7.7%
Hospital 7.6%
Transportation 4.6%
Other Revenue Bonds 4.0%
Pollution 2.2%
- - -----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - -----------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - -----------------------------------------------------------------------------
Class A - 2.99% 1.14% 5.02% 1.87% 1/1/94
- - -----------------------------------------------------------------------------
Class A* - 7.11% - 3.16% 0.56% - 0.09% 1/1/94
- - -----------------------------------------------------------------------------
Class B - 3.03% 0.89% 4.59% 1.61% 12/22/93
- - -----------------------------------------------------------------------------
Class B* - 5.91% - 2.08% 1.59% 0.79% 12/22/93
- - -----------------------------------------------------------------------------
Class C - 2.93% 1.27% 5.28% 3.63% 2/26/93
- - -----------------------------------------------------------------------------
Class D - 2.87% 1.31% 5.54% 3.31% 11/29/93
- - -----------------------------------------------------------------------------
LBMI - 1.20% 2.87% 8.38%
=============================================================================
* With Load
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.
- - -----------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 1996
- - -----------------------------------------------------------------------------
Percent of
Moody's Ratings+ Market Value
- - -----------------------------------------------------------------------------
Aaa 58.95%
- - -----------------------------------------------------------------------------
Aa 32.34%
- - -----------------------------------------------------------------------------
A 8.71%
- - -----------------------------------------------------------------------------
+ Moody's Investors Service, Inc. is a nationally recognized statistical
rating organization.
* LIPPER PERFORMANCE COMPARISON
GENERAL MUNICIPAL PEER GROUP
BASED ON TOTAL RETURNS FOR THE PERIODS ENDING MARCH 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
- - -------------------------------------------------------------------------
Number of Funds
in peer group: 238 236 228
Peer group average
total return: - 1.9% 2.7% 7.2%
Lipper categories
in peer group: General Municipal
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
24
<PAGE>
- - -----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - -----------------------------------------------------------------------------
GE TAX-EXEMPT FUND
- - -----------------------------------------------------------------------------
Principal
Amount Value
- - -----------------------------------------------------------------------------
MUNICIPAL BONDS - 86.1%
- - -----------------------------------------------------------------------------
ARIZONA - 2.2%
Phoenix Arizona Street & Highway Rev. - Trans.
6.60% 07/01/07 $ 250,000 $ 271,643
CONNECTICUT - 7.6%
Connecticut State Health & Educational Facility
Rev - Educ., MBIA Insured
5.125% 11/01/13 500,000 466,215
Connecticut State Municipal Electric Energy
Rev. - Power, MBIA Insured
5.00% 01/01/18 500,000 454,325
920,540
FLORIDA - 2.1%
Brevard County Utility
Rev. - Water & Sewer, AMBAC Insured
5.25% 03/01/08 250,000 251,400
HAWAII - 4.1% Hawaii State G.O.
4.50% 06/01/01 500,000 495,205
ILLINOIS - 3.2%
Chicago Illinois Public Building Commerce
Rev.- Building, MBIA Insured
4.90% 12/01/01 380,000 384,469
INDIANA - 8.4%
Indiana Health Facility Hospital
Rev. - Health
5.25% 11/01/15 500,000 457,115
Indiana University Rev. - Educ.
6.00% 11/15/14 290,000 299,071
Petersburg Pollution Control
Rev. - Pollution Control
6.625% 12/01/24 250,000 265,385
1,021,571
KENTUCKY - 2.7%
Louisville & Jefferson County Kentucky
Rev. - Sewer, MBIA Insured
5.30% 05/15/19 345,000 326,522
MASSACHUSETTS - 6.2%
Massachusetts State G.O.
4.50% 01/01/04 510,000 495,664
Massachusetts State Water & Sewer
Rev. - Water & Sewer
6.00% 11/01/06 250,000 262,100
757,764
MICHIGAN - 7.7%
Detroit Michigan Sewage Disposal
Rev. - Sewer, MBIA Insured
5.25% 07/01/21 500,000 460,015
Warren Michigan Consolidated
School District G.O., MBIA Insured
5.50% 05/01/21 500,000 472,090
932,105
NEW JERSEY - 6.1%
New Jersey Building Auth.
Rev.- Muni. Bldg.
5.00% 06/15/12 500,000 457,810
New Jersey Tpke. Auth.
Rev.- Trans., AMBAC Insured
6.50% 01/01/16 250,000 278,565
736,375
OHIO - 6.0%
Ohio State Public Facilities
Rev. - Muni. Bldg.,
AMBAC Insured
5.40% 11/01/07 250,000 253,722
Ohio State Water Development Authority
Rev. - Water & Sewer, AMBAC Insured
5.50% 12/01/18 500,000 476,935
730,657
PENNSYLVANIA - 4.0%
Pennsylvania Intergovernmental Co-op.
Rev. - Muni., MBIA Insured
5.60% 06/15/15 500,000 483,405
- - ------------
See Notes to Schedule of Investments and Financial Statements
25
<PAGE>
- - -----------------------------------------------------------------------------
GE TAX-EXEMPT FUND MARCH 31, 1996 (unaudited)
- - -----------------------------------------------------------------------------
Principal
Amount Value
- - -----------------------------------------------------------------------------
PUERTO RICO - 4.7%
Puerto Rico Public Buildings Authority
Rev.- Bond
6.875% 07/01/21 $ 500,000 $ 568,190
SOUTH CAROLINA - 5.9%
Myrtle Beach SC Water & Sewer
Rev. - Sewer, MBIA Insured
5.25% 03/01/20 500,000 465,860
South Carolina G.O.
4.60% 04/01/06 250,000 244,512
710,372
TEXAS - 4.1%
University of Texas
Rev.- Educ.
5.10% 08/15/08 500,000 492,315
UTAH - 3.9%
Intermountain Power Agency Utah
Rev. - Power
5.50% 07/01/20 500,000 470,040
VIRGINIA - 3.4%
University Virginia
Rev. - Educ.
5.375% 06/01/20 445,000 417,797
WASHINGTON - 3.8%
Seattle Municipal Light & Power
Rev. - Power
5.375% 11/01/18 500,000 466,860
TOTAL INVESTMENTS IN SECURITIES
(COST $10,432,047) 10,437,230
SHORT TERM INVESTMENTS - 11.3%
- - -----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 7.7%
Federal Farm Credit Bank
5.25% 04/11/96 200,000 199,708 (d)
Federal Home Loan Bank
5.23% 04/03/96 440,000 439,872 (d)
5.29% 04/30/96 300,000 298,722 (d)
938,302
REPURCHASE AGREEMENT - 3.6%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $440,000) $ 440,000 $ 440,000
(dated 3/29/96, proceeds
$440,189, collateralized by
$452,069 United States Treasury
Bond, 8.75%, 5/15/17)
TOTAL SHORT TERM INVESTMENTS
(COST $1,378,302) 1,378,302
Other Assets and Liabilities, net 2.6% 310,694
-----------
NET ASSETS - 100% $12,126,226
===========
- - ------------
See Notes to Schedule of Investments and Financial Statements
26
<PAGE>
- - --------------------------------------------------------------------------------
GE FIXED INCOME FUNDS
- - --------------------------------------------------------------------------------
Q&A
- - ---
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.
Q. What is your overview of the fixed income markets for the first quarter of
1996?
A. 1995's bond market rally came to a screeching halt during the first quarter
of 1996. Despite the easing of monetary policy by the Federal Reserve in
January, yields on securities with maturities 2 years and longer rose about
1 percentage point. This market movement affected our three fixed income
funds quite differently and provides a good example of the varying degrees
of interest rate exposure (risk) taken in each fund.
Having three fixed income funds allows investors to express their market
view and risk tolerance.
GE FIXED INCOME FUND
Q. How did the GE Fixed Income Fund's market benchmark and Lipper peers
perform for the first quarter of 1996?
A. The Lehman Brothers Aggregate Bond Index returned -1.8% for the three
months ended March 31, 1996. Our Lipper peer group of 134 Intermediate
Government Bond mutual funds had an average return of -1.7% for the same
period.
Refer to the following page to see how your class of shares in the GE Fixed
Income Fund performed compared to these benchmarks.
Q. Why did the Fund underperform for this period?
A. The unanticipated strength of the first quarter employment data pushed bond
yields up. This hurt the performance of GE Fixed Income Fund as price
declines due to our duration (interest rate exposure) more than offset the
income advantage of our sector allocation. Comparisons over longer time
periods are more favorable.
GE SHORT-TERM GOVERNMENT FUND
Q. How did the GE Short-Term Government Fund's benchmarks perform for the
first quarter of 1996?
A. The Lehman Brothers 1-3 year Government Index returned .4% for the three
months ended March 31, 1996. Our Lipper peer group of 172 Short-Term
Government mutual funds had an average return of -0.3% for the same period.
Refer to page 32 to see how your class of shares in the GE Short-Term
Government Fund performed compared to these benchmarks.
Q. What drove the Fund's performance?
A. This Fund, which has an average maturity of about 2 years, was also hurt by
the increase in interest rates but to a much lesser degree than the GE
Fixed Income Fund. Income was sufficient to offset price declines and
produce a flat return. Overall this fund has a high credit quality (87%
AAA-rated at March 31, 1996) but we do take some credit risk to help
improve yield.
GE MONEY MARKET FUND
Q. How did the GE Money Market Fund's industry benchmark and Lipper peers
perform for the first quarter of 1996?
A. The 90-day T-Bills returned 1.3% for the three months ended March 31, 1996.
Our Lipper peer group of 286 Money Market funds had an average return of
1.2% for the same period.
Refer to page 34 to see how your class of shares in the GE Money Market
Fund performed compared to these benchmarks.
Q. What is your approach in this Fund?
A. The strategy for this fund is to provide a competitive money market yield
while minimizing the interest rate risk inherent in the other two fixed
income funds. Our average maturity during the first quarter was maintained
at approximately 40 - 50 days and our portfolio continued to hold high
quality liquid securities.
27
<PAGE>
- - ----------------------------------------------------------------------------
GE FIXED INCOME FUND
- - ----------------------------------------------------------------------------
- - ----------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- - ----------------------------------------------------------------------------
U.S. Treasuries 41.8%
Mortgage Backed 31.6%
Corporate Notes 22.2%
Cash & Other 3.3%
Asset Backed 1.1%
- - ----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - ----------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - ----------------------------------------------------------------------------
Class A - 2.22% 1.81% 9.41% 4.77% 1/1/94
- - ----------------------------------------------------------------------------
Class A* - 6.38% - 2.52% 4.76% 2.75% 1/1/94
- - ----------------------------------------------------------------------------
Class B - 2.29% 1.57% 8.94% 4.28% 12/22/93
- - ----------------------------------------------------------------------------
Class B* - 5.19% - 1.41% 5.94% 3.45% 12/22/93
- - ----------------------------------------------------------------------------
Class C - 2.11% 1.95% 9.75% 5.32% 2/22/93
- - ----------------------------------------------------------------------------
Class D - 2.09% 2.03% 9.98% 5.24% 11/29/93
- - ----------------------------------------------------------------------------
LB Agg. - 1.77% 2.40% 10.79%
- - ----------------------------------------------------------------------------
* With Load
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 and asset- and mortgage-backed
securities.
- - ----------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 1996
- - ----------------------------------------------------------------------------
Percent of
Moody's Ratings+ Market Value
- - ----------------------------------------------------------------------------
Aaa 77.9%
- - ----------------------------------------------------------------------------
Aa 1.5%
- - ----------------------------------------------------------------------------
A 5.8%
- - ----------------------------------------------------------------------------
Baa 8.6%
- - ----------------------------------------------------------------------------
Ba 6.2%
- - ----------------------------------------------------------------------------
+Moody's Investors Service, Inc. is a nationally recognized statistical rating
organization.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE GOVERNMENT PEER GROUP
BASED ON TOTAL RETURNS FOR THE PERIODS ENDING MARCH 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
- - ----------------------------------------------------------------------
Number of Funds
in peer group: 134 134 124
Peer group average
total return: - 1.7% 1.9% 8.9%
Lipper categories
in peer group: Intermediate U.S. Government,
Intermediate U.S. Treasury
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
28
<PAGE>
- - ----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - ----------------------------------------------------------------------------
GE FIXED INCOME FUND
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
BONDS AND NOTES - 98.2%
- - ----------------------------------------------------------------------------
U.S. TREASURIES - 41.8%
U.S. Treasury Bonds
6.00% 02/15/26 $ 2,500,000 $ 2,283,975
6.25% 08/15/23 170,000 157,170
6.875% 08/15/25 1,622,000 1,647,336
7.50% 11/15/24 60,000 64,894
7.625% 02/15/25 779,000 857,266
8.125% 08/15/19 250,000 285,702
12.00% 05/15/05 - 08/15/13 465,000 663,457
5,959,800
U.S. Treasury Notes
5.00% 02/15/99 100,000 97,656
5.25% 01/31/01 1,925,000 1,858,818
5.625% 11/30/00 - 02/15/06 9,820,000 9,571,828
5.75% 09/30/97 550,000 550,600
5.875% 11/15/05 1,990,000 1,917,862
6.125% 05/15/98 - 09/30/00 3,297,000 3,308,121
6.50% 08/15/05 40,000 40,156
6.75% 04/30/00 370,000 378,847
7.50% 02/15/05 383,000 411,005
8.00% 05/15/01 1,200,000 1,296,936
19,431,829
TOTAL U.S. TREASURIES
(COST $26,178,543) 25,391,629
ASSET BACKED - 1.1%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 60,914 58,325
AT & T Universal Card Master Trust
5.95% 10/17/02 60,000 59,006
CIT RV Trust
5.40% 12/15/11 98,482 96,243
Discover Card Master Trust
6.05% 08/18/08 170,000 159,746
6.70% 02/16/00 130,000 131,300
Standard Credit Card Master Trust
6.75% 06/07/00 150,000 151,780
TOTAL ASSET BACKED
(COST $664,009) 656,400
CORPORATE NOTES - 22.2%
360 Communications Co.
7.125% 03/01/03 310,000 302,380
American Airlines
9.71% 01/02/07 98,583 110,314
American Home Products
7.70% 02/15/00 125,000 130,199
Arkla Inc.
8.875% 07/15/99 150,000 157,425
Bangkok Bank Public Ltd.
8.25% 03/15/16 100,000 99,520 (b)
Bank of China
8.25% 03/15/14 50,000 46,291
Banque Paribas
8.35% 06/15/07 50,000 52,696
BBV International Finance Ltd.
7.00% 12/01/25 80,000 73,000
BCH Cayman Islands
8.25% 06/15/04 125,000 130,904
Bell Telephone Co.
8.35% 12/15/30 75,000 86,711
BHP Finance USA
6.42% 03/01/26 45,000 44,244
Blockbuster Entertainment
6.625% 02/15/98 500,000 501,300
Capital One Bank
6.43% 06/29/98 400,000 399,724
6.48% 08/15/97 105,000 105,323
8.125% 03/01/00 400,000 419,100
CCP Insurance
10.50% 12/15/04 100,000 114,120
Central Maine Power Co.
7.40% 06/02/98 125,000 125,081
China International Trust & Investment Corp.
9.00% 10/15/06 90,000 96,543
Columbia/Healthcare Corp.
8.36% 04/15/24 100,000 107,827
Delta Air Lines Inc.
7.79% 12/01/98 125,000 128,310
Developers Diversified
7.00% 03/05/01 300,000 294,195
Disney (Walt) Co.
6.375% 03/30/01 500,000 498,950
Duty Free International Inc.
7.00% 01/15/04 145,000 133,667
Equitable Life Assured Society
7.70% 12/01/15 100,000 99,180 (b)
Fairfax Financial Holdings Ltd.
7.75% 12/15/03 100,000 101,625
Finova Capital Corp.
6.375% 10/15/00 100,000 98,687
Ford Motor Credit Co.
7.25% 05/15/99 125,000 127,725
Foster Technology Inc.
6.75% 11/15/05 100,000 97,688
Freeport McMoran Resource Partner
7.00% 02/15/08 150,000 142,311
General Motors Acceptance Corp.
6.10% 09/11/97 250,000 250,652
General Motors Corp.
8.89% 08/18/03 100,000 110,379
Glaxo Wellcome PLC
6.125% 01/25/06 350,000 329,219
- - ------------
See Notes to Schedule of Investments and Financial Statements
29
<PAGE>
- - ----------------------------------------------------------------------------
GE FIXED INCOME FUND MARCH 31, 1996 (unaudited)
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 $ 100,000 $ 104,000
HSBC Finance Nederland B.V.
7.40% 04/15/03 150,000 150,596 (b)
Hydro Quebec
8.25% 04/15/26 250,000 262,225
11.75% 02/01/12 165,000 228,258
ITT Corp. (new)
6.25% 11/15/00 75,000 73,706
Joy Technologies Inc.
10.25% 09/01/03 200,000 221,900
KFW International Finance Inc.
8.20% 06/01/06 125,000 138,244
Kingdom of Sweden
10.25% 11/01/15 395,000 504,612
La Quinta Inns Inc.
7.25% 03/15/04 130,000 126,331
Landeskreditbank Baden
7.875% 04/15/04 160,000 171,006
Lehman Brothers Inc.
7.125% 07/15/02 120,000 120,355
Liberty Mutual Insurance Co.
8.20% 05/04/07 150,000 159,931 (b)
8.50% 05/15/25 100,000 104,711 (b)
Lyondell Petrochemical Co.
7.55% 02/15/26 200,000 187,352
Markel Corp.
7.25% 11/01/03 250,000 246,875
Matsushita Electric Industrial Ltd.
7.25% 08/01/02 200,000 206,092
MBNA America Bank N.A.
6.92% 05/30/00 125,000 126,563
Merrill Lynch & Co. Inc.
6.64% 09/19/02 90,000 89,333
Methanex Corp.
7.40% 08/15/02 70,000 70,368
Metropolitan Life Insurance Co.
7.80% 11/01/25 250,000 244,725 (b)
Nestle S.A.
7.375% 04/12/05 210,000 217,665
New York New York
6.10% 02/01/98 150,000 149,340
Newfoundland Province Canada
9.875% 06/01/20 100,000 122,393
News America Holdings Inc.
10.125% 10/15/12 135,000 154,271
Noranda Inc.
8.00% 06/01/03 250,000 261,332
North Atlantic Energy Corp.
9.05% 06/01/02 189,000 189,945
Oryx Energy Co.
10.00% 06/15/99 150,000 160,442
Pennzoil Co.
10.625% 06/01/01 150,000 165,871
Quaker Oats Co.
7.28% 08/29/05 50,000 50,744
Republic of Columbia
7.25% 02/15/03 100,000 95,312
RJR Nabisco Inc.
8.00% 07/15/01 300,000 293,082
Salomon Inc.
6.75% 02/15/03 300,000 286,026
Smurfit Capital
7.50% 11/20/25 100,000 93,868
Solectron Corp.
7.375% 03/01/06 225,000 219,937 (b)
St. George Bank Ltd.
7.15% 10/15/05 150,000 148,808 (b)
Taubman Realty Group L.P.
8.00% 06/15/99 160,000 163,192
TCI Communications Inc.
6.46% 03/06/00 100,000 98,750
6.69% 03/31/06 125,000 125,000
Tele-Communications Inc.
8.75% 08/01/15 50,000 52,311
9.25% 04/15/02 100,000 109,231
Tenaga Nasional Berhad
7.50% 01/15/2096 100,000 91,618 (b)
Time Warner Entertainment Co. L.P.
10.15% 05/01/12 75,000 89,466
Time Warner Inc.
7.95% 02/01/00 150,000 155,309
Toledo Edison Co.
7.38% 03/31/00 250,000 236,350
United Air Lines Inc.
11.21% 05/01/14 125,000 160,613
United Co. Financial Corp.
7.00% 07/15/98 300,000 301,614
Viacom Inc.
7.75% 06/01/05 250,000 249,047
TOTAL CORPORATE NOTES (COST $13,686,200) 13,494,010
MORTGAGE-BACKED - 31.6%
Federal Home Loan Mortgage Corp.
6.50% 03/01/04 - 11/01/25 1,023,761 995,940
6.50% TBA 410,000 389,756 (c)
7.00% 11/01/09 - 08/01/25 140,743 140,753
7.50% 06/01/23 - 02/01/26 1,272,404 1,270,522
8.00% 03/01/07 - 02/01/26 1,105,085 1,125,160
8.75% 04/01/08 61,287 64,256
9.00% 12/01/16 640,078 675,897
9.50% 04/01/21 57,569 61,939
4,724,223
Federal National Mortgage Assoc.
6.00% 07/01/09 95,071 91,536
6.50% 01/01/04 - 01/01/24 363,225 346,820
7.00% 07/01/17 - 03/15/26 1,394,645 1,360,168
7.50% 02/01/14 33,117 33,538
8.50% 04/01/17 132,147 138,193
9.00% 08/01/07 39,962 42,072
2,012,327
- - ------------
See Notes to Schedule of Investments and Financial Statements
30
<PAGE>
- - ----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (unaudited)
- - ----------------------------------------------------------------------------
Principal
Amount Value
- - ----------------------------------------------------------------------------
Government National Mortgage Assoc.
7.00% TBA $ 550,000 $ 535,735 (c)
7.50% 04/15/23 - 08/15/23 301,922 302,451
7.50% TBA 3,115,000 3,108,186 (c)
7.50% 03/20/25 60 60 (h)
8.00% 04/15/17 - 06/15/23 1,304,907 1,345,856
9.00% 10/15/08 - 11/15/19 2,042,653 2,190,859
9.50% 12/15/09 508,346 553,186
8,036,333
Collateralized Mortgage Obligations
Aetna Commercial Mortgage Trust
6.422% 12/26/30 67,586 66,783
American Southwest Financial Securities Corp.
0.70% 01/18/09 382,122 11,583 (g)
1.08% 01/18/09 526,452 27,803 (g)
7.30% 06/17/07 48,677 49,225
Asset Securitization Corp.
7.10% 08/13/29 113,395 113,502
Collateralized Mortgage Obligation Trust
4.932% 11/01/18 124,141 82,554 (d,f)
6.406% 09/01/15 141,676 114,757 (d,f)
8.00% 01/01/17 844,187 852,291
Community Program Loan Trust
4.50% 10/01/18 300,000 254,719
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 75,931 75,267
6.85% 12/17/27 183,000 178,482
FDIC REMIC Trust
7.85% 09/25/25 140,000 142,275
Federal Home Loan Mortgage Corp.
3.50% 11/15/07 241,000 195,060
8.00% 04/15/20 70,000 71,925
1009.00% 9/15/21 2,783 96,150 (g)
Federal National Mortgage Assoc.
2.21% 07/25/10 400,000 53,000 (g)
2.335% 07/25/10 104,000 11,537 (g)
2.525% 07/25/10 250,696 23,229 (g)
6.159% 10/01/24 268,916 200,006 (d,f)
8.00% 07/01/24 279,670 84,251 (g)
8.50% 03/01/17 - 01/01/18 270,262 78,376 (g)
Federal National Mortgage Assoc. REMIC
6.20% 09/25/22 282,129 223,234 (d,f)
6.965% 07/25/10 80,000 79,463
LB Commercial Conduit Mortgage Trust
2.369% 05/25/05 995,452 108,877 (g)
7.144% 08/25/04 94,453 95,162
Merrill Lynch Mortgage Investor's Inc.
6.815% 06/15/21 106,526 107,591
Mid-State Trust
8.33% 04/01/30 248,318 258,561
Sawgrass Finance REMIC Trust
6.45% 01/20/06 100,000 99,313
Structured Asset Securities Corp.
8.509% 04/01/26 470,000 481,891
Vornado Finance Corp.
6.36% 12/01/00 210,000 205,590 (b)
4,442,457
TOTAL MORTGAGE-BACKED
(COST $19,439,228) 19,215,340
FOREIGN DENOMINATED NOTES - 1.5%
Dutch Government
8.50% 06/01/06 NLG 336,000 233,274
Kingdom of Belgium
6.50% 03/31/05 BEL 10,261,000 333,425
Kingdom of Denmark
8.00% 03/15/06 DKK 1,904,000 345,028
TOTAL FOREIGN DENOMINATED NOTES
(COST $939,726) 911,727
TOTAL INVESTMENTS IN SECURITIES
(COST $60,907,706) 59,669,106
SHORT TERM INVESTMENTS - 1.5%
- - ----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.5%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $940,000) $ 940,000 $ 940,000
(dated 3/29/96, proceeds
$940,403, collateralized by
$959,872 United States Treasury
Bond, 8.75%, 05/15/17)
Other Assets and Liabilities, net 0.3% 155,456
-----------
NET ASSETS - 100% $60,764,562
===========
FORWARD FOREIGN CURRENCY CONTRACTS
- - --------------------------------------------------------------------------------
At March 31, 1996, the outstanding forward foreign currency contracts, which
contractually obligate the GE Fixed Income Fund to deliver currencies at a
specified date, were as follows:
U.S.$ COST
FOREIGN ON U.S. $ UNREALIZED
FOREIGN CURRENCY CURRENCY ORIGINATION CURRENT APPRECIATION
SALE CONTRACTS COST DATE VALUE (DEPRECIATION)
- - ------------------------------------------------------------------------------
BEL, expiring 04/15/96 3,798,479 $125,259 $125,328 $ (69)
BEL, expiring 04/18/96 7,161,913 237,165 236,343 822
DEM, expiring 04/15/96 738,041 501,506 500,363 1,143
DEM, expiring 04/16/96 728,880 509,614 494,178 15,436
DKK, expiring 04/15/96 98,000 17,223 17,201 22
DKK, expiring 04/16/96 710,408 124,460 124,695 (235)
DKK, expiring 04/16/96 1,313,431 236,774 230,542 6,232
NLG, expiring 04/15/96 412,889 250,539 250,182 357
---------- ---------- ---------
$2,002,540 $1,978,832 $ 23,708
========== ========== =========
31
<PAGE>
- - ---------------------------------------------------------------------------
GE SHORT-TERM GOVERNMENT FUND
- - ---------------------------------------------------------------------------
- - ---------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- - ---------------------------------------------------------------------------
U.S. Government 75.8%
Corporate Note 12.9%
Mortgage Backed 6.5%
Asset Backed, Cash & Other 4.8%
- - ---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - ---------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - ---------------------------------------------------------------------------
Class A 0.21% 2.38% 7.00% 4.90% 3/2/94
- - ---------------------------------------------------------------------------
Class A* - 2.29% - 0.18% 4.33% 3.62% 3/2/94
- - ---------------------------------------------------------------------------
Class B 0.12% 2.20% 6.54% 4.50% 3/2/94
- - ---------------------------------------------------------------------------
Class B* - 2.85% - 0.78% 3.54% 3.59% 3/2/94
- - ---------------------------------------------------------------------------
Class C 0.19% 2.51% 7.18% 5.16% 3/2/94
- - ---------------------------------------------------------------------------
Class D 0.25% 2.63% 7.44% 5.38% 3/2/94
- - ---------------------------------------------------------------------------
LB 1-3 Yr. 0.38% 2.85% 7.69%
- - ---------------------------------------------------------------------------
* With Load
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.
- - ----------------------------------------
2 YEAR TREASURY NOTE YIELD HISTORY
03/31/95 -- 03/31/96
- - ----------------------------------------
HIGH 6.78%
AVERAGE 5.67
LOW 4.79
- - ----------------------------------------
Date %
3/95 .............................6.78
6.58
5.84
6/95 .............................5.79
5.87
5.85
9/95 .............................5.85
5.61
5.34
12/95 ............................5.15
4.93
5.43
3/96 .............................5.75
- - ----------------------------------------
Source: Bloomberg
* LIPPER PERFORMANCE COMPARISON
Short-Term U.S. Government Peer Group
Based on total returns for the periods ending March 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
- - --------------------------------------------------------------
Number of Funds
in peer group: 172 80 164
Peer group average
total return: - 0.3% 2.5% 7.6%
Lipper categories
in peer group: Short-Term U.S. Treasury,
Short U.S. Government,
Short-Intermediate U.S. Government
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
32
<PAGE>
- - -----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - -----------------------------------------------------------------------------
GE SHORT-TERM GOVERNMENT FUND
- - -----------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- - -----------------------------------------------------------------------------
BONDS AND NOTES - 99.8%
- - -----------------------------------------------------------------------------
U.S. GOVERNMENTS - 75.8%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 $ 160,686 $ 157,167
8.00% 08/01/03 453,918 466,543
623,710
Federal Home Loan Mortgage Corp. REMIC
543.498% 09/15/05 297 3,441 (g)
1002.00% 07/15/06 609 12,638 (g)
16,079
Federal National Mortgage Assoc.
7.739% 07/01/22 37,035 37,544 (h)
8.165% 12/01/27 51,697 53,701 (h)
8.169% 05/01/21 199,695 206,652 (h)
8.475% 12/01/17 54,844 56,901 (h)
8.896% 10/01/21 112,732 118,227 (h)
473,025
Federal National Mortgage Assoc. REMIC
5.485% 11/25/06 94,011 84,299 (d,f)
7.95% 11/25/19 103,764 105,165
189,464
Government National Mortgage Assoc.
7.375% 06/20/24 476,662 485,599 (h)
7.50% 03/20/25 328,055 330,926 (h)
816,525
U.S. Treasury Notes
5.00% 01/31/98 3,125,000 3,083,500
5.125% 02/28/98 1,050,000 1,037,862
5.50% 11/15/98 2,365,000 2,341,350
7.00% 04/15/99 90,000 92,559
6,555,271
Total U.S. Governments (Cost $8,772,606) 8,674,074
ASSET BACKED - 4.6%
CIT RV Trust
5.40% 12/15/11 78,785 76,994
Discover Card Master Trust
6.70% 02/16/00 100,000 101,000
Fleetwood Credit Grantor Trust
6.00% 01/15/08 110,978 110,526
Premier Auto Trust
6.00% 10/06/99 110,000 109,835
Standard Credit Card Master Trust
4.65% 03/07/99 100,000 99,093
Structured Asset Securities Corp.
6.87% 08/25/26 25,594 25,658
Total Asset Backed (Cost $523,343) 523,106
CORPORATE NOTES - 12.9%
A T & T Capital Corp.
7.59% 01/31/97 100,000 101,553
Advanta Corp.
5.125% 11/15/96 100,000 99,499
6.02% 11/13/97 100,000 99,350
Central Maine Power Co.
7.40% 06/02/98 100,000 100,065
First USA Bank
6.125% 10/30/97 150,000 150,334
General Motors Acceptance Corp.
8.375% 01/19/99 100,000 105,213
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 168,000 174,720
Great Northern Nekoosa Corp.
9.125% 02/01/98 100,000 104,566
Lehman Brothers Holdings Inc.
6.875% 06/08/98 150,000 150,762
New York New York
6.10% 02/01/98 100,000 99,560
News America Holdings Inc.
9.125% 10/15/99 110,000 118,752
Salomon Inc.
6.70% 12/01/98 75,000 74,594
United Co. Financial Corp.
7.00% 07/15/98 100,000 100,538
Total Corporate Notes (Cost $1,479,400) 1,479,506
MORTGAGE-BACKED - 6.5%
Collateralized Mortgage Obligations
FDIC REMIC Trust
7.85% 09/25/25 150,000 152,437
Salomon Brothers Mortgage Securities Inc.
6.469% 03/20/06 298,921 297,333
Structured Asset Securities Corp.
7.75% 02/25/28 296,950 300,755
Total Mortgage-Backed (Cost $757,253) 750,525
Total Investments in Securities (Cost $11,532,602) 11,427,211
SHORT TERM INVESTMENTS - 1.5%
- - -----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 1.5%
State Street Bank and Trust Co.
5.15% 04/01/96
(Cost $170,000) 170,000 170,000
(dated 03/29/96, proceeds
$170,073, collateralized by
$179,589 United States Treasury
Bond, 8.75%, 5/15/17)
Other Assets and Liabilities, net (1.3%) (152,321)
-------------
NET ASSETS - 100% $ 11,444,890
=============
- - ------------
See Notes to Schedule of Investments and Financial Statements
33
<PAGE>
- - -----------------------------------------------------------------------------
GE MONEY MARKET FUND
- - -----------------------------------------------------------------------------
- - -----------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- - -----------------------------------------------------------------------------
U.S. Government 41.9%
Certificates of Deposit 35.9%
Commercial Paper 19.5%
Time Deposits & Other 2.7%
- - -----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN %
for the periods ended March 31, 1996
- - -----------------------------------------------------------------------------
SINCE
3 MO. 6 MO. 1YR INCEPTION COMMENCEMENT
- - -----------------------------------------------------------------------------
Fund 1.26% 2.62% 5.49% 4.23% 2/22/93
- - -----------------------------------------------------------------------------
90 Day T-Bill 1.32% 2.79% 5.84%
- - -----------------------------------------------------------------------------
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.
FUND YIELD
Fund Donoghue
- - -----------------------------------------------------------------------------
7 day current 4.86% 4.79%
- - -----------------------------------------------------------------------------
7 day effective 4.98% 4.90%
- - -----------------------------------------------------------------------------
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.
An investment in the GE Money Market Fund is neither insured nor
guaranteed by the U.S. Government, 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.
* LIPPER PERFORMANCE COMPARISON
Money Market Peer Group
Based on total returns for the periods ending March 31, 1996
THREE SIX ONE
MONTHS MONTHS YEAR
- - --------------------------------------------------------------
Number of Funds
in peer group: 286 285 272
Peer group average
total return: 1.2% 2.5% 5.2%
Lipper categories
in peer group: Money Market
* See notes to performance for explanation of peer categories
See page 36 for Notes to Performance.
Past performance is no guarantee of future results.
34
<PAGE>
- - -----------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
- - -----------------------------------------------------------------------------
- - -----------------------------------------------------------------------------
GE MONEY MARKET FUND
- - -----------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT COST
- - -----------------------------------------------------------------------------
SHORT TERM INVESTMENTS - 100.7%
- - -----------------------------------------------------------------------------
U.S. GOVERNMENTS (D) - 41.9%
Federal Home Loan Bank
5.03% 05/29/96 $ 3,680,000 $ 3,650,178
5.23% 04/03/96 1,140,000 1,139,669
5.34% 05/21/96 1,700,000 1,687,391
5.35% 05/14/96 2,150,000 2,136,261
5.38% 04/15/96 1,600,000 1,596,652
10,210,151
Federal Home Loan Mortgage Corp.
4.96% 05/07/96 2,000,000 1,990,080
5.28% 04/01/96 4,750,000 4,750,000
6,740,080
Federal National Mortgage Assoc.
4.85% 09/06/96 4,000,000 3,914,856
4.89% 06/11/96 3,400,000 3,367,210
4.91% 08/08/96 3,600,000 3,536,661
5.15% 09/24/96 3,600,000 3,509,360
5.19% 06/21/96 5,260,000 5,198,655
5.27% 06/12/96 1,100,000 1,088,406
20,615,148
Total U.S. Governments
(Cost $37,565,379) 37,565,379
COMMERCIAL PAPER - 19.5%
Associates Corp. North America
5.10% 06/04/96 3,640,000 3,606,997
Chemical Bank and Trust Co.
5.06% 05/15/96 3,500,000 3,478,355
Koch Industries
5.45% 04/01/96 410,000 410,000
Merrill Lynch & Co. Inc.
5.38% 04/12/96 3,400,000 3,394,411
Nationsbank Corp.
5.27% 07/03/96 3,150,000 3,107,115
Toronto Dominion Bank
5.26% 07/02/96 3,600,000 3,551,608
Total Commercial Paper
(Cost $17,548,486) 17,548,486
CERTIFICATES OF DEPOSIT - 35.9%
Abbey National PLC
5.09% 06/06/96 3,500,000 3,500,000 (e)
Algemene Bank Nederland N.V.
5.34% 06/28/96 2,620,000 2,620,000
Bank of Montreal
5.23% 04/02/96 3,020,000 3,020,000
Bayerische Hypotheken Bank
5.31% 06/26/96 3,120,000 3,120,000
Commerzbank
5.43% 04/15/96 3,400,000 3,400,000
Credit Suisse
5.41% 04/08/96 3,400,000 3,400,000
Dresdner Bank AG
5.09% 05/24/96 3,400,000 3,400,000
Royal Bank of Canada
5.43% 04/16/96 3,400,000 3,400,000
Societe Generale
5.25% 06/19/96 3,000,000 3,000,000
Union Bank of Switzerland
5.40% 04/11/96 3,400,000 3,400,000
Total Certificates of Deposit
(Cost $32,260,000) 32,260,000
TIME DEPOSITS - 3.4%
Deutsche Bank AG
5.50% 04/03/96
(cost $3,020,000) 3,020,000 3,020,000
Total Short Term Investments
(Cost $90,393,865) 90,393,865
Other Assets and Liabilities, net (0.7%) (634,463)
-------------
NET ASSETS - 100% $ 89,759,402
=============
- - ------------
See Notes to Schedule of Investments and Financial Statements
35
<PAGE>
- - --------------------------------------------------------------------------------
NOTES TO PERFORMANCE (UNAUDITED)
- - --------------------------------------------------------------------------------
Total returns assume changes in share price and reinvestment of dividends and
capital gains. Investment returns and principal value on an investment will
fluctuate and you may have a loss or gain when you sell your shares. 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 voluntarily agreed to waive and/or bear certain fees and Fund expenses.
Without these provisions, the returns (and/or yields) would have been lower.
These provisions may be terminated in the future.
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 (LB Aggregate), Lehman Brothers Municipal Bond Index (LBMI), Lehman
Brothers 1-3 Year Government Bond Index (LB 1-3 YR.) and the 90 Day U.S.
Treasury Index (90 Day T-Bill) 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 1,575 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 1,112 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 reinvestment of net dividends or
interest. 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 March
31, 1996. The Donahue yields represent the average yields of 782 taxable money
market funds.
The peer universe of funds used in our peer ranking calculation is based on the
blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal (except for the GE Strategic
Investment Fund for which we use the specific Lipper peer group and the GE Money
Market Fund which is not in the Wall Street Journal). The actual number of funds
and numerical rankings in the Lipper and Wall Street Journal universes could
differ since the Wall Street Journal excludes certain funds which do not meet
their net asset or shareholder publication thresholds. Lipper is an independent
mutual fund rating service located in Summit, New Jersey.
The Funds' portfolios are actively managed and their composition will vary over
time. The specific holdings cited throughout the report are for illustrative
purposes only and may not represent current or future investments of the Funds.
They are not intended to constitute a recommendation to purchase or sell any
particular security. See the prospectus for complete descriptions of investment
objectives, policies, risks and permissible investments.
36
<PAGE>
- - --------------------------------------------------------------------------------
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 March 31, 1996, these securities amounted to
$661,842, $446,656, $1,220,422, $328,106 and $1,524,616 or 1.3%, 1.2%,
0.5%, 0.5%, and 2.5% 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) Euro Certificate of Deposit.
(f) Principal only securities represent the right to receive the monthly
principal payments on an underlying pool of mortgages. No payments of
interest on the pool are passed through to the principal only holder.
(g) Interest only securities represent the right to receive the monthly
interest payments on an underlying pool of mortgages. Payments of principal
on the pool reduce the value of the interest only holding.
(h) Adjustable rate mortgage coupon. The stated rate represents the rate at
March 31, 1996.
ABBREVIATIONS:
Currency Terms
BEL -- Belgian Franc
DEM -- Deutsche Mark
DKK -- Danish Krone
ITL -- Italian Lira
NLG -- Netherlands Guilder
SEK -- Swedish Krona
ADR -- American Depository Receipt
AMBAC -- AMBAC Indemnity Corporation
GDR -- Global Depository Receipt
MBIA -- Municipal Bond Insurance Association
REMIC -- Real Estate Mortgage Investment Conduit
37
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
CLASS A CLASS B
GE INTERNATIONAL EQUITY FUND 3/31/96 9/30/95 9/30/94 3/31/96 9/30/95 9/30/94
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 3/2/94 -- -- 3/2/94
Net asset value, beginning of period $15.87 $15.18 $15.00 $15.77 $15.13 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (0.06) 0.09 0.06 (0.04) 0.01 0.00
Net realized and unrealized
gains (losses) on investments 1.15 0.64 0.12 1.07 0.64 0.13
------ ------ ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.09 0.73 0.18 1.03 0.65 0.13
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.03 0.04 0.00 0.00 0.01 0.00
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.03 0.04 0.00 0.00 0.01 0.00
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $16.93 $15.87 $15.18 $16.80 $15.77 $15.13
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 6.84% 4.87% 1.20% 6.53% 4.33% 0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,936 $3,948 $25 $192 $57 $34
Ratio of net investment income
to average net assets* (0.53%) 1.28% 1.01% (0.87%) 0.10% 0.47%
Ratio of expenses to average net assets* 1.60% 1.60% 1.60% 2.10% 2.10% 2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.74% 1.95% 1.93% 3.50% 3.50% 2.43%
Portfolio turnover rate 19% 27% 6% 19% 27% 6%
Average brokerage commissions (d) $.033 N/A N/A $.033 N/A N/A
------ ------ ------ ------ ------ ------
<CAPTION>
CLASS C CLASS D
GE INTERNATIONAL EQUITY FUND 3/31/96 9/30/95 9/30/94 3/31/96 9/30/95 9/30/94
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 3/2/94 -- -- 3/2/94
Net asset value, beginning of period $15.88 $15.19 $15.00 $15.94 $15.22 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (0.02) 0.12 0.00 (0.03) 0.12 0.10
Net realized and unrealized
gains (losses) on investments 1.11 0.65 0.19 1.16 0.70 0.12
------ ------ ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.09 0.77 0.19 1.13 0.82 0.22
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.06 0.08 0.00 0.08 0.10 0.00
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.06 0.08 0.00 0.08 0.10 0.00
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $16.91 $15.88 $15.19 $16.99 $15.94 $15.22
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 6.86% 5.16% 1.27% 7.12% 5.45% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,282 $1,262 $481 $43,690 $32,907 $26,460
Ratio of net investment income
to average net assets* (0.24%) 0.83% 0.66% 0.07% 0.97% 1.52%
Ratio of expenses to average net assets* 1.35% 1.35% 1.35% 0.99% 1.07% 1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.13% 2.75% 1.68% 0.99% 1.18% 1.43%
Portfolio turnover rate 19% 27% 6% 19% 27% 6%
Average brokerage commissions (d) $.033 N/A N/A $.033 N/A N/A
<FN>
- - ------------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE GLOBAL EQUITY FUND 3/31/96 9/30/95 9/30/94(b) 3/31/96 9/30/95 9/30/94
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 12/22/93 -- -- 12/22/93
Net asset value, beginning of period $20.18 $19.34 $18.61 $20.14 $19.32 $18.48
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (0.06) 0.10 0.03 (0.09) 0.00 (0.01)
Net realized and unrealized
gains (losses) on investments 1.15 1.22 0.91 1.13 1.23 1.06
------ ------ ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.09 1.32 0.94 1.04 1.23 1.05
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.02 0.09 0.01 0.00 0.02 0.01
Net realized gains 0.37 0.39 0.20 0.37 0.39 0.20
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.39 0.48 0.21 0.37 0.41 0.21
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $20.88 $20.18 $19.34 $20.81 $20.14 $19.32
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 5.47% 7.16% 3.09% 5.25% 6.62% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,140 $2,811 $694 $454 $356 $128
Ratio of net investment income
to average net assets* (0.61%) 0.47% 0.44% (1.09%) (0.11%) (0.08%)
Ratio of expenses to average net assets* 1.60% 1.60% 1.60% 2.10% 2.10% 2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.97% 2.17% 2.02% 3.50% 3.50% 2.52%
Portfolio turnover rate 22% 46% 26% 22% 46% 26%
Average brokerage commissions (d) $.005 N/A N/A $.005 N/A N/A
<CAPTION>
CLASS C CLASS D
GE GLOBAL EQUITY FUND 3/31/96 9/30/95 9/30/94 9/30/93(c) 3/31/96 9/30/95 9/30/94
- - --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- -- 1/5/93 -- -- 11/29/93
Net asset value, beginning of period $20.31 $19.40 $17.16 $15.00 $20.37 $19.45 $17.49
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (0.04) 0.09 0.07 0.08 0.02 0.13 0.11
Net realized and unrealized
gains (losses) on investments 1.16 1.30 2.37 2.08 1.13 1.31 2.06
------- ------- ------- ------- ------ ------ -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.12 1.39 2.44 2.16 1.15 1.44 2.17
------- ------- ------- ------- ------ ------ -------
LESS DISTRIBUTIONS FROM:
Net investment income 0.04 0.09 0.00 0.00 0.09 0.13 0.01
Net realized gains 0.37 0.39 0.20 0.00 0.37 0.39 0.20
------- ------- ------- ------- ------ ------ -------
TOTAL DISTRIBUTIONS 0.41 0.48 0.20 0.00 0.46 0.52 0.21
------- ------- ------- ------- ------ ------ -------
NET ASSET VALUE, END OF PERIOD $21.02 $20.31 $19.40 $17.16 $21.06 $20.37 $19.45
======= ======= ======= ======= ====== ====== =======
TOTAL RETURN (a) 5.61% 7.47% 14.28% 14.10% 5.74% 7.76% 12.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $26,220 $23,683 $20,432 $11,999 $8,072 $9,785 $10,504
(in thousands)
Ratio of net investment income
to average net assets* (0.36%) 0.59% 0.52% 1.00% (0.14%) 0.84% 0.82%
Ratio of expenses to average
net assets* 1.35% 1.35% 1.31% 1.10% 1.10% 1.10% 1.10%
Ratio of expenses to average net
assets before voluntary
expense limitation* 1.59% 1.42% 1.77% 2.19% 1.12% 1.75% 1.52%
Portfolio turnover rate 22% 46% 26% 28% 22% 46% 26%
Average brokerage commissions (d) $.005 N/A N/A N/A $.005 N/A N/A
<FN>
- - ----------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE U.S. EQUITY FUND 3/31/96 9/30/95 9/30/94(b) 3/31/96 9/30/95 9/30/94
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 12/22/93 -- -- 12/22/93
Net asset value, beginning of period $20.28 $16.12 $16.48 $19.71 $16.03 $16.41
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.05 (2.54) 3.23 0.18 0.27 0.24
Net realized and unrealized
gains (losses) on investments 2.32 6.79 (3.22) 2.05 3.78 (0.25)
------- ------- ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 2.37 4.25 0.01 2.23 4.05 (0.01)
------- ------- ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.32 0.00 0.20 0.31 0.28 0.20
Net realized gains 0.27 0.09 0.17 0.27 0.09 0.17
------- ------- ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.59 0.09 0.37 0.58 0.37 0.37
------- ------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $22.06 $20.28 $16.12 $21.36 $19.71 $16.03
======= ======= ====== ====== ====== ======
TOTAL RETURN (a) 11.87% 26.52% (0.86%) 11.47% 25.92% (0.09%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $24,228 $15,148 $1,214 $4,256 $1,563 $91
Ratio of net investment income
to average net assets* 1.43% 1.85% 1.87% 0.94% 1.29% 1.28%
Ratio of expenses to average net assets* 1.00% 1.00% 1.00% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.14% 1.25% 1.46% 2.07% 3.50% 1.96%
Portfolio turnover rate 25% 43% 51% 25% 43% 51%
Average brokerage commissions (d) $.042 N/A N/A $.042 N/A N/A
------- ------- ------ ------ ------ ------
<CAPTION>
CLASS C CLASS D
GE U.S. EQUITY FUND 3/31/96 9/30/95 9/30/94 9/30/93(C) 3/31/96 9/30/95 9/30/94
- - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEPTION DATE .......................... -- -- -- 1/5/93 -- -- 11/29/93
Net asset value, beginning of period ... $19.98 $16.13 $16.35 $15.00 $19.98 $16.16 $16.37
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income ................. (0.02) 0.17 1.00 0.12 0.22 0.38 0.32
Net realized and unrealized
gains (losses) on investments ....... 2.36 4.06 (0.85) 1.23 2.16 3.88 (0.16)
------- ------- ------- ------- -------- -------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 2.34 4.23 0.15 1.35 2.38 4.26 0.16
------- ------- ------- ------- -------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.35 0.29 0.20 0.00 0.39 0.35 0.20
Net realized gains ..................... 0.27 0.09 0.17 0.00 0.27 0.09 0.17
------- ------- ------- ------- -------- -------- --------
TOTAL DISTRIBUTIONS ..................... 0.62 0.38 0.37 0.00 0.66 0.44 0.37
------- ------- ------- ------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD .......... $21.70 $19.98 $16.13 $16.35 $21.70 $19.98 $16.16
======= ======= ======= ======= ======== ======== ========
TOTAL RETURN (A) ........................ 11.89% 26.86% 0.88% 10.32% 12.10% 27.14% 0.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period ............. $39,639 $26,007 $16,382 $74,415 $158,238 $128,247 $114,885
(in thousands)
Ratio of net investment income
to average net assets* ............... 1.69% 2.12% 2.11% 1.86% 1.93% 2.36 2.27%
Ratio of expenses to average
net assets* ......................... 0.75% 0.75% 0.62% 0.50% 0.50% 0.50 0.50%
Ratio of expenses to average net assets
before voluntary expense limitation* . 1.03% 1.19% 1.21% 1.34% 0.59% 0.71 0.96%
Portfolio turnover rate ............... 25% 43% 51% 15% 25% 43% 51%
Average brokerage commissions (d) ..... $.042 N/A N/A N/A $.042 N/A N/A
------- ------- ------- ------- -------- -------- --------
<FN>
- - ------------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE STRATEGIC INVESTMENT FUND 3/31/96 9/30/95 9/30/94(b) 3/31/96 9/30/95 9/30/94
- - -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 12/22/93 -- -- 12/22/93
Net asset value, beginning of period $18.43 $15.71 $16.21 $18.26 $15.62 $16.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.20 0.40 0.48 0.21 0.43 0.27
Net realized and unrealized
gains (losses) on investments 1.25 2.69 (0.65) 1.18 2.55 (0.46)
------- ------ ------ ------ ---- ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.45 3.09 (0.17) 1.39 2.98 (0.19)
------- ------ ------ ------ ---- ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.43 0.37 0.27 0.42 0.34 0.27
Net realized gains 0.08 0.00 0.06 0.08 0.00 0.06
------- ------ ------ ------ ---- ------
TOTAL DISTRIBUTIONS 0.51 0.37 0.33 0.50 0.34 0.33
------- ------ ------ ------ ---- ------
NET ASSET VALUE, END OF PERIOD $19.37 $18.43 $15.71 $19.15 $18.26 $15.62
======= ====== ====== ====== ====== ======
TOTAL RETURN (a) 7.99% 20.12% (1.32%) 7.72% 19.53% (1.25%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $11,394 $8,778 $1,104 $2,616 $882 $150
Ratio of net investment income
to average net assets* 2.33% 2.95% 2.59% 1.85% 2.46% 1.92%
Ratio of expenses to average net assets* 1.13% 1.15% 1.15% 1.65% 1.65% 1.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.22% 1.19% 1.58% 2.40% 3.50% 2.08%
Portfolio turnover rate 46% 98% 68% 46% 98% 68%
Average brokerage commissions (d) $.047 N/A N/A $.047 N/A N/A
<FN>
- - ----------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CLASS C CLASS D
GE STRATEGIC INVESTMENT FUND 3/31/96 9/30/95 9/30/94 9/30/93(c) 3/31/96 9/30/95 9/30/94
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- -- 1/5/93 -- -- 11/29/93
Net asset value, beginning of period $18.46 $15.72 $16.08 $15.00 $18.49 $15.74 $16.02
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.18 0.48 0.44 0.23 0.28 0.55 0.45
Net realized and unrealized
gains (losses) on investments 1.30 2.64 (0.48) 0.85 1.23 2.62 (0.40)
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.48 3.12 (0.04) 1.08 1.51 3.17 0.05
------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income 0.46 0.38 0.26 0.00 0.50 0.42 0.27
Net realized gains 0.08 0.00 0.06 0.00 0.08 0.00 0.06
------- ------- ------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS 0.54 0.38 0.32 0.00 0.58 0.42 0.33
------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $19.40 $18.46 $15.72 $16.08 $19.42 $18.49 $15.74
======= ======= ======= ======= ======= ======= =======
TOTAL RETURN (a) 8.11% 20.35% (0.27%) 8.06% 8.27% 20.70% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $22,988 $17,821 $13,018 $12,780 $35,796 $18,665 $17,159
(in thousands)
Ratio of net investment income
to average net assets* 2.57% 3.21% 2.62% 2.68% 2.91% 3.46% 2.93%
Ratio of expenses to average
net assets* 0.90% 0.90% 0.85% 0.65% 0.60% 0.65% 0.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.08% 1.03% 1.33% 1.65% 0.63% 0.97% 1.08%
Portfolio turnover rate 46% 98% 68% 20% 46% 98% 68%
Average brokerage commissions (d) $.047 N/A N/A N/A $.047 N/A N/A
<FN>
- - ----------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
39
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE TAX-EXEMPT FUND 3/31/96 9/30/95 9/30/94(b) 3/31/96 9/30/95 9/30/94
- - --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 12/22/93 -- -- 12/22/93
Net asset value, beginning of period $11.77 $11.32 $12.31 $11.78 $11.32 $12.30
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.26 0.53 0.39 0.23 0.47 0.34
Net realized and unrealized
gains (losses) on investments (0.12) 0.46 (1.00) (0.12) 0.47 (0.98)
------ ------ ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 0.14 0.99 (0.61) 0.11 0.94 (0.64)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.26 0.54 0.38 0.23 0.48 0.34
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.26 0.54 0.38 0.23 0.48 0.34
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.65 $11.77 $11.32 $11.66 $11.78 $11.32
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 1.14% 8.96% (5.40%) 0.89% 8.51% (5.28%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $472 $389 $53 $1,280 $689 $61
Ratio of net investment income
to average net assets* 4.31% 4.54% 4.34% 3.82% 3.81% 3.68%
Ratio of expenses to average net assets* 1.10% 1.10% 1.10% 1.60% 1.60% 1.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 3.00% 3.00% 1.58% 2.43% 3.50% 2.08%
Portfolio turnover rate 61% 86% 23% 61% 86% 23%
------ ------ ------ ------ ------ ------
<CAPTION>
CLASS C CLASS D
GE TAX-EXEMPT FUND 3/31/96 9/30/95 9/30/94 9/30/93(c) 3/31/96 9/30/95 9/30/94
- - ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- -- 1/5/93 -- -- 11/29/93
Net asset value, beginning of period $11.77 11.32 $12.36 $12.00 $11.78 $11.32 $12.11
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.27 0.57 0.54 0.33 0.29 0.60 0.47
Net realized and unrealized
gains (losses) on investments (0.12) 0.45 (1.06) 0.36 (0.13) 0.46 (0.80)
------ ------ ------ ------- ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 0.15 1.02 (0.52) 0.69 0.16 1.06 (0.33)
------ ------ ------ ------- ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.27 0.57 0.52 0.33 0.29 0.60 0.46
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------- ------ ------ ------
TOTAL DISTRIBUTIONS 0.27 0.57 0.52 0.33 0.29 0.60 0.46
------ ------ ------ ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.65 $11.77 $11.32 $12.36 $11.65 $11.78 $11.32
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 1.27 9.23% (4.30%) 5.48% 1.31% 9.59% (2.80%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $7,489 $6,816 $6,917 $10,136 $2,885 $3,905 $4,995
Ratio of net investment income
to average net assets* 4.56% 4.94% 4.41% 3.56% 4.82% 5.20% 4.65%
Ratio of expenses to average net assets* 0.85% 0.85% 0.79% 0.60% 0.60% 0.60% 0.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.33% 1.18% 1.33% 1.53% 0.99% 1.47% 1.08%
Portfolio turnover rate 61% 86% 23% 29% 61% 86% 23%
------ ------ ------ ------- ------ ------ ------
<FN>
- - ----------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE FIXED INCOME FUND 3/31/96 9/30/95 9/30/94(b) 3/31/96 9/30/95 9/30/94
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 2/22/93 -- -- 12/22/93
Net asset value, beginning of period $11.91 $11.27 $12.19 $11.91 $11.26 $12.15
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.32 0.73 0.47 0.30 0.65 0.42
Net realized and unrealized
gains (losses) on investments (0.10) 0.63 (0.84) (0.11) 0.66 (0.81)
------ ------ ------ ------ ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 0.22 1.36 (0.37) 0.19 1.31 (0.39)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.34 0.72 0.47 0.30 0.66 0.42
Net realized gains 0.00 0.00 0.08 0.00 0.00 0.08
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.34 0.72 0.55 0.30 0.66 0.50
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.79 $11.91 $11.27 $11.80 $11.91 $11.26
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 1.81% 12.48% (3.02%) 1.57% 11.98% (3.31%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $14,448 $5,400 $26,023 $1,317 $234 $65
Ratio of net investment income
to average net assets* 5.39% 6.22% 5.37% 4.80% 5.57% 4.83%
Ratio of expenses to average net assets* 0.97% 1.08% 1.10% 1.60% 1.60% 1.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.97% 1.18% 1.51% 3.08% 3.50% 2.01%
Portfolio turnover rate 149% 315% 298% 149% 315% 298%
<CAPTION>
CLASS C CLASS D
GE FIXED INCOME FUND 3/31/96 9/30/95 9/30/94 9/30/93(c) 3/31/96 9/30/95 9/30/94
- - --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- -- 1/5/93 -- -- 11/29/93
Net asset value, beginning of period $11.92 $11.27 $12.31 $12.00 $11.92 $11.27 $12.17
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.34 0.73 0.61 0.36 0.36 0.77 0.55
Net realized and unrealized
gains (losses) on investments (0.10) 0.67 (0.96) 0.31 (0.11) 0.65 (0.83)
------- ------- ------- ------- ------- ------ ------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 0.24 1.40 (0.35) 0.67 0.25 1.42 (0.28)
------- ------- ------- ------- ------- ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.35 0.75 0.61 0.36 0.37 0.77 0.54
Net realized gains 0.00 0.00 0.08 0.00 0.00 0.00 0.08
------- ------- ------- ------- ------- ------ ------
TOTAL DISTRIBUTIONS 0.35 0.75 0.69 0.36 0.37 0.77 0.62
------- ------- ------- ------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD $11.81 $11.92 $11.27 $12.31 $11.80 $11.92 $11.27
======= ======= ======= ======= ======= ====== ======
TOTAL RETURN (a) 1.95% 12.81% (2.97%) 5.24% 2.03% 13.10% (2.34%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,606 $21,401 $13,600 $11,485 $19,394 $6,642 $2,732
Ratio of net investment income
to average net assets* 5.56% 6.37% 5.22% 3.87% 5.50% 6.57% 5.40%
Ratio of expenses to average net assets* 0.85% 0.85% 0.79% 0.60% 0.50% 0.59% 0.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.94% 0.95% 1.26% 1.63% 0.50% 2.50% 1.01%
Portfolio turnover rate 149% 315% 298% 68% 149% 315% 298%
<FN>
- - ----------
See Notes to Financial Highlights and Financial Statements
</FN>
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
CLASS A CLASS B
GE SHORT-TERM GOVERNMENT FUND 3/31/96 9/30/95 9/30/94 3/31/96 9/30/95 9/30/94
- - -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 3/2/94 -- -- 3/2/94
Net asset value, beginning of period $11.91 $11.72 $12.00 $11.90 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.30 0.64 0.35 0.29 0.59 0.33
Net realized and unrealized
gains (losses) on investments (0.02) 0.21 (0.30) (0.03) 0.21 (0.31)
------ ------ ------ ------ ------ ------
TOTAL INCOME FROM
INVESTMENT OPERATIONS 0.28 0.85 0.05 0.26 0.80 0.02
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.31 0.66 0.33 0.29 0.62 0.30
Net realized gains 0.06 0.00 0.00 0.06 0.00 0.00
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS 0.37 0.66 0.33 0.35 0.62 0.30
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.82 $11.91 $11.72 $11.81 $11.90 $11.72
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 2.38% 7.48% 0.40% 2.20% 7.01% 0.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $316 $285 $35 $172 $83 $25
Ratio of net investment income
to average net assets* 5.03% 5.27% 4.75% 4.65% 5.07% 4.38%
Ratio of expenses to average net assets* 0.95% 0.95% 0.95% 1.30% 1.30% 1.30%
Ratio of expenses to average net assets
before voluntary expense limitation* 3.00% 3.00% 1.71% 3.35% 3.35% 2.06%
Portfolio turnover rate 120% 415% 146% 120% 415% 146%
------ ------ ------ ------ ------ ------
<CAPTION>
CLASS C CLASS D
GE SHORT-TERM GOVERNMENT FUND 3/31/96 9/30/95 9/30/94 3/31/96 9/30/95 9/30/94
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- 3/2/94 -- -- 3/2/94
Net asset value, beginning of period $11.91 $11.72 $12.00 $11.90 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.32 0.66 0.36 0.33 0.69 0.39
Net realized and unrealized
gains (losses) on investments (0.02) 0.22 (0.30) (0.02) 0.21 (0.31)
------ ------ ---- ------ ------ ------
TOTAL INCOME FROM
INVESTMENT OPERATIONS 0.30 0.88 0.06 0.31 0.90 0.08
------ ------ ---- ------ ------ ------
LESS DISTRIBUTIONS FROM:
Net investment income 0.33 0.69 0.34 0.34 0.72 0.36
Net realized gains 0.06 0.00 0.00 0.06 0.00 0.00
------ ------ ---- ------ ------ ------
TOTAL DISTRIBUTIONS 0.39 0.69 0.34 0.40 0.72 0.36
------ ------ ---- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $11.82 $11.91 $11.72 $11.81 $11.90 $11.72
====== ====== ====== ====== ====== ======
TOTAL RETURN (a) 2.51% 7.74% 0.53% 2.63% 7.92% 0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $3,283 $2,437 $287 $7,674 $8,048 $7,822
Ratio of net investment income
to average net assets* 5.26% 5.62% 5.18% 5.53% 5.89% 5.32%
Ratio of expenses to average net assets* 0.70% 0.70% 0.70% 0.45% 0.45% 0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.34% 1.84% 1.46% 0.82% 0.98% 1.21%
Portfolio turnover rate 120% 415% 146% 120% 415% 146%
------ ------ ---- ------ ------ ------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
(MARCH 31, 1996 DATA IS UNAUDITED)
GE MONEY MARKET FUND 3/31/96 9/30/95 9/30/94 9/30/93(c)
- - ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCEPTION DATE -- -- -- 1/5/93
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.03 0.02
Net realized and unrealized
gains (losses) on investments 0.00 0.00 0.00 0.00
------- ------- ------- -------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.03 0.05 0.03 0.02
------- ------- ------- -------
LESS DISTRIBUTIONS FROM:
Net investment income 0.03 0.05 0.03 0.02
Net realized gains 0.00 0.00 0.00 0.00
------- ------- ------- -------
TOTAL DISTRIBUTIONS 0.03 0.05 0.03 0.02
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
======= ======= ======= =======
TOTAL RETURN (a) 2.62% 5.52% 3.31% 1.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $89,759 $71,664 $53,607 $17,197
Ratio of net investment income
to average net assets* 5.17% 5.32% 3.41% 2.27%
Ratio of expenses to average net assets* 0.45% 0.45% 0.45% 0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.62% 0.70% 1.04% 1.48%
<FN>
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.
(d) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. This rate does not reflect mark-ups,
mark-downs or spreads on shares traded on a principal basis.
* Annualized for periods less than one year.
See Notes to Financial Statements
</FN>
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
- - ----------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL U.S.
EQUITY EQUITY EQUITY
FUND FUND FUND
- - ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $45,942,616,
$31,119,022, $177,659,444, $56,523,937, $10,432,047,
$60,907,706, $11,532,602, and $0, respectively) $50,335,768 $35,982,945 $217,577,686
Short term investments (at amortized cost) ....................... 1,650,000 1,758,542 10,890,765
Cash ............................................................. 18,723 15,339 11,498
Foreign currency (cost $5,010, $49,565, $10, $2,819, $0,
$17,264, $0, and $0, respectively).............................. 4,994 48,061 10
Receivable for investments sold .................................. 263,510 43,984 308,714
Income receivables ............................................... 146,506 82,044 418,688
Receivable for fund shares sold .................................. 12,111 51,525 150,691
Net receivable on forward foreign currency contracts ............. 0 0 0
Deferred organizational costs .................................... 57,469 36,498 56,633
----------- ----------- ------------
Total assets ..................................................... 52,489,081 38,018,938 229,414,685
----------- ----------- ------------
LIABILITIES
Options written, at market (premiums received
$0, $0, $20,407, $0, $0, $0, $0, and $0, respectively) ........... 0 0 22,969
Distributions payable to shareholders ............................ 0 0 0
Payable for investments purchased ................................ 370,456 50,791 647,133
Payable for fund shares repurchased .............................. 916,609 11,504 2,198,832
Payable to GEIM .................................................. 102,415 70,923 151,222
Variation margin payable ......................................... 0 0 33,250
Payable to custodian ............................................. 0 0 0
----------- ----------- ------------
Total liabilities ................................................ 1,389,480 133,218 3,053,406
----------- ----------- ------------
NET ASSETS ............................................................ $51,099,601 $37,885,720 $226,361,279
=========== =========== ============
NET ASSETS CONSIST OF:
Capital paid in .................................................. $46,043,880 $32,011,364 $177,868,857
Undistributed (overdistributed) net investment income ............ (508) (62,265) 946,516
Accumulated net realized gain (loss) ............................. 661,973 1,073,241 7,674,447
Net unrealized appreciation / (depreciation) on:
Investments .................................................... 4,393,152 4,863,923 39,918,242
Futures ........................................................ 0 0 (44,025)
Written options ................................................ 0 0 (2,562)
Foreign currency transactions .................................. 1,104 (543) (196)
----------- ----------- ------------
NET ASSETS ............................................................ $51,099,601 $37,885,720 $226,361,279
=========== =========== ============
Class A:
Net assets ............................................................ $ 4,935,750 $ 3,140,318 $ 24,228,212
Shares outstanding ($.001 par value) .................................. 291,601 150,383 1,098,426
Net asset value per class A share ..................................... $ 16.93 $ 20.88 $ 22.06
Maximum offering price per class A share .............................. $ 17.77 $ 21.92 $ 23.16
Class B:
Net assets ............................................................ $ 192,273 $ 453,480 $ 4,255,787
Shares outstanding ($.001 par value) .................................. 11,444 21,794 199,282
Net asset value per class B share* .................................... $ 16.80 $ 20.81 $ 21.36
Class C:
Net assets ............................................................ $ 2,281,413 $26,220,004 $ 39,638,647
Shares outstanding ($.001 par value) .................................. 134,887 1,247,309 1,826,764
Net asset value per class C share ..................................... $ 16.91 $ 21.02 $ 21.70
Class D:
Net assets ............................................................ $43,690,165 $ 8,071,918 $158,238,633
Shares outstanding ($.001 par value) .................................. 2,571,555 383,259 7,293,458
Net asset value per class D share ..................................... $ 16.99 $ 21.06 $ 21.70
<FN>
* 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.
See Notes to Financial Statements.
</FN>
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
- - ---------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE
STRATEGIC TAX- FIXED SHORT-TERM MONEY
INVESTMENT EXEMPT INCOME GOVERNMENT MARKET
FUND FUND FUND FUND FUND**
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost
$45,942,616, $31,119,022, $177,659,444,
$56,523,937, $10,432,047, $60,907,706,
$11,532,602, and $0, respectively........ $64,833,234 $ 10,437,230 $ 59,669,106 $ 11,427,211 $ 0
Short term investments (at amortized cost). 8,516,755 1,378,302 940,000 170,000 90,393,865
Cash ...................................... 7,807 17,663 7,691 18,677 0
Foreign currency (cost $5,010, $49,565,
$10, $2,819, $0, $17,264, $0, and $0,
respectively) ............................ 2,816 0 17,256 0 0
Receivable for investments sold ........... 2,068,417 0 7,501,939 4 0
Income receivables ........................ 382,934 174,427 959,800 134,261 243,724
Receivable for fund shares sold ........... 58,033 135,032 99,650 2,474 104,795
Net receivable on forward foreign currency
contracts................................. 0 0 23,708 0 0
Deferred organizational costs ............. 36,498 29,786 43,209 57,469 29,786
------------ ------------ ------------ ------------ ------------
Total assets ............................ 75,906,494 12,172,440 69,262,359 11,810,096 90,772,170
------------ ------------ ------------ ------------ ------------
LIABILITIES
Options written, at market (premiums
received $0, $0, $20,407, $0, $0, $0,
$0, and $0, respectively)................. 0 0 0 0 0
Distributions payable to shareholders ..... 1,417 8,383 57,491 9,914 68,657
Payable for investments purchased ......... 3,028,204 0 5,771,250 0 0
Payable for fund shares repurchased ....... 10,611 1,969 2,595,826 295,818 878,912
Payable to GEIM ........................... 72,170 35,862 73,230 59,474 64,055
Variation margin payable .................. 0 0 0 0 0
Payable to custodian ...................... 0 0 0 0 1,144
------------ ------------ ------------ ------------ ------------
Total liabilities ....................... 3,112,402 46,214 8,497,797 365,206 1,012,768
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 72,794,092 $ 12,126,226 $ 60,764,562 $ 11,444,890 $ 89,759,402
============ ============ ============ ============ ============
NET ASSETS CONSIST OF:
Capital paid in ........................... $ 63,274,116 $ 12,570,677 $ 64,228,667 $ 11,469,028 $ 89,730,240
Undistributed (overdistributed)
net investment income..................... 471,526 32,504 19,146 4,447 32,532
Accumulated net realized gain (loss) ...... 738,948 (482,138) (2,269,102) 76,806 (3,370)
Net unrealized appreciation /
(depreciation) on:
Investments ............................. 8,309,297 5,183 (1,238,600) (105,391) 0
Futures ................................. 0 0 0 0 0
Written options ......................... 0 0 0 0 0
Foreign currency transactions ........... 205 0 24,451 0 0
------------ ------------ ------------ ------------ ------------
NET ASSETS .................................. $ 72,794,092 $ 12,126,226 $ 60,764,562 $ 11,444,890 $ 89,759,402
============ ============ ============ ============ ============
Class A:
Net assets .................................. $ 11,393,781 $ 472,368 $ 14,448,032 $ 316,063 $ 0
Shares outstanding ($.001 par value) ........ 588,231 40,552 1,225,113 26,748 0
Net asset value per class A share ........... $ 19.37 $ 11.65 $ 11.79 $ 11.82 $ 0
Maximum offering price per class A share .... $ 20.34 $ 12.17 $ 12.31 $ 12.12 $ 0
Class B:
Net assets .................................. $ 2,615,865 $ 1,279,609 $ 1,316,751 $ 171,726 $ 0
Shares outstanding ($.001 par value) ........ 136,594 109,771 111,553 14,542 0
Net asset value per class B share* .......... $ 19.15 $ 11.66 $ 11.80 $ 11.81 $ 0
Class C:
Net assets .................................. $ 22,988,464 $ 7,489,603 $ 25,605,825 $3,283,473 $ 89,759,402
Shares outstanding ($.001 par value) ........ 1,185,065 642,854 2,168,912 277,726 89,762,844
Net asset value per class C share ........... $ 19.40 $ 11.65 $ 11.81 $ 11.82 $ 1.00
Class D:
Net assets .................................. $ 35,795,982 $ 2,884,646 $ 19,393,954 $ 7,673,628 $ 0
Shares outstanding ($.001 par value) ........ 1,843,133 247,557 1,643,462 649,657 0
Net asset value per class D share ........... $ 19.42 $ 11.65 $ 11.80 $ 11.81 $ 0
<FN>
* 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.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL U.S.
EQUITY EQUITY EQUITY
FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends ................................................ $ 207,473 $ 137,006 $ 2,041,281
Interest ................................................. 68,263 47,662 362,397
Less: Foreign taxes withheld ............................. (21,854) (8,092) (8,746)
------------ ------------ ------------
Total income ............................................... 253,882 176,576 2,394,932
------------ ------------ ------------
Expenses:
Advisory and administration fees ......................... 190,271 134,753 391,845
Distribution fees
Class A ................................................ 10,895 7,421 49,010
Class B ................................................ 466 1,970 12,968
Class C ................................................ 2,136 30,435 40,029
Blue Sky
Class A ................................................ 5,396 3,614 4,205
Class B ................................................ 3,763 3,310 3,287
Class C ................................................ 5,625 10,695 7,904
Class D ................................................ 12,346 5,900 24,299
Transfer agent
Class A ................................................ 1,757 4,245 4,842
Class B ................................................ 1,519 3,032 3,567
Class C ................................................ 2,603 37,392 29,650
Class D ................................................ 3,613 672 4,350
Trustees' fees ........................................... 1,204 1,504 7,653
Custody and accounting ................................... 779 2,097 10,672
Professional fees ........................................ 12,308 15,590 79,341
Registration ............................................. 574 1,545 7,863
Amortization of deferred organization
expense ................................................ 9,174 9,701 15,008
Other .................................................... 4,899 5,697 28,982
------------ ------------ ------------
Total expenses before waiver ............................... 269,328 279,573 725,475
Less: Expenses waived or borne by
the advisor ............................................ (15,188) (42,168) (132,521)
------------ ------------ ------------
Net expenses ............................................. 254,140 237,405 592,954
------------ ------------ ------------
Net investment income ...................................... (258) (60,829) 1,801,978
============ ============ ============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on:
Investments .............................................. 1,078,089 1,206,381 8,157,723
Futures .................................................. 0 0 706,100
Written options .......................................... 0 0 37,180
Foreign currency transactions ............................ (25,658) (23,011) (1,990)
Increase (decrease) in unrealized appreciation/
depreciation on:
Investments .............................................. 2,304,178 818,591 11,604,629
Futures .................................................. 0 0 (42,975)
Written options .......................................... 0 0 1,758
Foreign currency transactions ............................ (1,825) 1,514 (499)
------------ ------------ ------------
Net realized and unrealized gain
(loss) on investments ..................................... 3,354,784 2,003,475 20,461,926
------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations .................................... $ 3,354,526 $ 1,942,646 $ 22,263,904
============ ============ ============
<FN>
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE
STRATEGIC TAX- FIXED SHORT-TERM MONEY
INVESTMENT EXEMPT INCOME GOVERNMENT MARKET
FUND FUND FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends ...................................... $ 288,999 $ 0 $ 0 $ 0 $ 0
Interest ....................................... 731,032 324,870 1,545,514 336,170 2,277,933
Less: Foreign taxes withheld ................... (6,623) 0 0 0 0
----------- ----------- ----------- ----------- -----------
Total income ..................................... 1,013,408 324,870 1,545,514 336,170 2,277,933
----------- ----------- ----------- ----------- -----------
Expenses:
Advisory and administration fees .............. 101,293 20,955 84,146 16,829 101,122
Distribution fees
Class A ..................................... 25,115 1,053 25,189 757 0
Class B ..................................... 8,465 4,875 3,121 493 0
Class C ..................................... 25,599 9,083 29,842 3,573 0
Blue Sky
Class A ..................................... 6,459 3,290 1,405 3,270 0
Class B ..................................... 3,957 3,276 3,823 3,265 0
Class C ..................................... 11,063 7,867 17,451 5,210 19,488
Class D ..................................... 8,076 5,697 3,492 8,083
Transfer agent
Class A ..................................... 780 873 435 1,005 0
Class B ..................................... 3,188 602 1,316 571 0
Class C ..................................... 15,538 8,251 13,150 1,684 65,661
Class D ..................................... 1,701 194 585 382 0
Trustees' fees ................................ 3,068 534 438 483 3,203
Custody and accounting ........................ 838 747 610 673 4,467
Professional fees ............................. 34,828 5,549 4,540 5,010 33,213
Registration .................................. 618 551 450 496 3,292
Amortization of deferred organization
expense ..................................... 9,701 7,933 11,471 9,174 7,933
Other ......................................... 14,194 2,018 4,553 1,801 12,125
----------- ----------- ----------- ----------- -----------
Total expenses before waiver ..................... 274,481 83,348 206,017 62,759 250,504
Less: Expenses waived or borne by
the advisor ................................. (34,314) (32,423) (15,972) (32,705) (68,484)
----------- ----------- ----------- ----------- -----------
Net expenses .................................. 240,167 50,925 190,045 30,054 182,020
----------- ----------- ----------- ----------- -----------
Net investment income ............................ 773,241 273,945 1,355,469 306,116 2,095,913
=========== =========== =========== =========== ===========
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain (loss) on:
Investments ................................... 1,005,784 185,237 487,817 85,098 0
Futures ....................................... 0 0 0 0 0
Written options ............................... (164,863) 0 639 0 0
Foreign currency transactions ................. (3,980) 0 (1,049) 0 0
Increase (decrease) in unrealized
appreciation / depreciation on:
Investments ................................... 2,864,156 (304,743) (1,729,845) (115,856) 0
Futures ....................................... 0 0 0 0 0
Written options ............................... 38,144 0 0 0 0
Foreign currency transactions ................. 4,512 0 22,175 0 0
----------- ----------- ----------- ----------- -----------
Net realized and unrealized gain
(loss) on investments .......................... 3,743,753 (119,506) (1,220,263) (30,758) 0
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations ...................... $ 4,516,994 $ 154,439 $ 135,206 $ 275,358 $ 2,095,913
=========== =========== =========== =========== ===========
<FN>
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL U.S.
EQUITY EQUITY EQUITY
FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995 (unaudited) 30, 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income .............. $ (258) $ 292,459 $ (60,829) $ 216,432 $ 1,801,978 $ 3,231,756
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
transactions ...................... 1,052,431 (337,917) 1,183,370 415,492 8,899,013 1,669,029
Net increase (decrease) in
unrealized appreciation/
depreciation ...................... 2,302,353 1,716,419 820,105 1,771,654 11,562,913 29,031,181
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) from
operations ........................ 3,354,526 1,670,961 1,942,646 2,403,578 22,263,904 33,931,966
----------- ----------- ----------- ----------- ------------ ------------
Distributions to shareholders from:
Net investment income
Class A ........................... (6,640) (85) (2,429) (4,762) (262,767) 0
Class B ........................... 0 (45) 0 (213) (33,028) (2,872)
Class C ........................... (5,998) (4,356) (47,344) (101,076) (515,508) (300,089)
Class D ........................... (206,019) (171,765) (29,722) (77,394) (2,441,173) (2,525,130)
Net realized gains
Class A ........................... 0 0 (54,657) (19,779) (220,116) (12,003)
Class B ........................... 0 0 (7,141) (4,264) (29,002) (914)
Class C ........................... 0 0 (439,601) (446,448) (397,494) (94,068)
Class D ........................... 0 0 (126,339) (229,385) (1,698,965) (647,519)
----------- ----------- ----------- ----------- ------------ ------------
Total distributions .................. (218,657) (176,251) (707,233) (883,321) (5,598,053) (3,582,595)
----------- ----------- ----------- ----------- ------------ ------------
Increase (decrease) in net assets from
operations and distributions ........ 3,135,869 1,494,710 1,235,413 1,520,257 16,665,851 30,349,371
----------- ----------- ----------- ----------- ------------ ------------
Share transactions:
Proceeds from sale of shares
Class A ........................... 1,137,717 4,108,324 734,549 2,331,228 8,486,625 12,433,013
Class B ........................... 131,031 65,940 91,789 260,340 2,467,926 1,432,986
Class C ........................... 1,022,640 1,027,313 3,824,760 6,650,382 12,428,653 8,583,711
Class D ........................... 9,163,321 17,424,643 2,005,570 3,165,696 52,065,035 66,777,376
Value of distributions reinvested
Class A ........................... 6,640 85 56,966 24,540 482,795 12,000
Class B ........................... 0 45 7,141 4,476 62,915 3,784
Class C ........................... 5,586 4,212 477,264 533,926 897,146 386,529
Class D ........................... 206,019 171,765 156,061 306,780 4,140,138 3,144,247
Cost of shares redeemed
Class A ........................... (448,889) (576,926) (574,359) (374,151) (1,621,361) (680,682)
Class B ........................... (2,617) (46,018) (16,013) (58,967) (52,922) (80,582)
Class C ........................... (122,215) (295,940) (2,666,729) (5,042,589) (2,390,388) (3,885,378)
Class D ........................... (1,309,155) (12,205,061) (4,081,302) (4,445,663) (38,236,620) (80,082,954)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) from
share transactions .................. 9,790,078 9,678,382 15,697 3,355,998 38,729,942 8,044,050
----------- ----------- ----------- ----------- ------------ ------------
Total increase (decrease) in
net assets .......................... 12,925,947 11,173,092 1,251,110 4,876,255 55,395,793 38,393,421
NET ASSETS
Beginning of period .................. 38,173,654 27,000,562 36,634,610 31,758,355 170,965,486 132,572,065
----------- ----------- ----------- ----------- ------------ ------------
End of period ........................ $51,099,601 $38,173,654 $37,885,720 $36,634,610 $226,361,279 $170,965,486
=========== =========== =========== =========== ============ ============
Undistributed (overdistributed) net
investment income, end of period ...... $ (508) $ 218,407 $ (62,265) $ 78,059 $ 946,516 $ 2,397,013
<FN>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
STRATEGIC TAX- FIXED
INVESTMENT EXEMPT INCOME
FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995 (unaudited) 30, 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income ............... $ 773,241 $ 1,196,476 $ 273,945 $ 549,458 $ 1,355,469 $ 1,542,054
Net realized gain (loss) on investments,
futures, written options, and
foreign currency transactions ...... 836,941 296,527 185,237 (518,751) 487,407 (911,507)
Net increase (decrease) in unrealized
appreciation/depreciation .......... 2,906,812 5,579,652 (304,743) 926,079 (1,707,670) 1,964,369
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
from operations..................... 4,516,994 7,072,655 154,439 956,786 135,206 2,594,916
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders from:
Net investment income
Class A ............................ (224,561) (29,230) (9,110) (5,971) (277,118) (306,883)
Class B ............................ (36,223) (5,064) (18,654) (4,896) (15,386) (7,292)
Class C ............................ (480,651) (340,668) (166,254) (313,359) (682,466) (1,099,467)
Class D ............................ (515,952) (460,723) (79,901) (225,257) (409,211) (142,189)
Net realized gains
Class A ............................ (44,020) 0 0 0 0 0
Class B ............................ (7,310) 0 0 0 0 0
Class C ............................ (89,301) 0 0 0 0 0
Class D ............................ (88,357) 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- -----------
Total distributions .................. (1,486,375) (835,685) (273,919) (549,483) (1,384,181) (1,555,831)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations and distributions ... 3,030,619 6,236,970 (119,480) 407,303 (1,248,975) 1,039,085
----------- ----------- ----------- ----------- ----------- -----------
Share transactions:
Proceeds from sale of shares
Class A ............................ 2,514,478 7,182,929 104,376 332,712 10,386,456 5,700,365
Class B ............................ 1,680,111 786,579 714,280 629,874 1,139,967 255,439
Class C ............................ 4,910,117 4,463,118 1,010,200 1,118,157 5,840,936 8,923,222
Class D ............................ 21,572,237 7,201,248 0 0 17,060,802 6,272,781
Value of distributions reinvested
Class A ............................ 268,475 29,239 4,647 3,506 262,070 300,894
Class B ............................ 42,201 5,063 11,456 4,370 12,191 6,850
Class C ............................ 553,077 327,979 132,767 257,523 542,739 912,679
Class D ............................ 472,353 460,719 77,609 225,255 386,705 141,112
Cost of shares redeemed
Class A ............................ (662,054) (535,113) (20,443) (2,873) (1,238,632) (26,636,640)
Class B ............................ (61,457) (131,483) (112,816) (10,148) (45,332) (100,613)
Class C ............................ (1,285,099) (2,565,433) (375,521) (1,692,201) (1,872,370) (3,031,354)
Class D ............................ (6,387,182) (8,746,818) (1,100,003) (1,500,060) (4,138,707) (2,526,883)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
share transactions .................. 23,617,257 8,478,027 446,552 (633,885) 28,336,825 (9,782,148)
----------- ----------- ----------- ----------- ----------- -----------
Total increase (decrease)
in net assets....................... 26,647,876 14,714,997 327,072 (226,582) 27,087,850 (8,743,063)
NET ASSETS
Beginning of period .................. 46,146,216 31,431,219 11,799,154 12,025,736 33,676,712 42,419,775
----------- ----------- ----------- ----------- ----------- -----------
End of period ........................ $72,794,092 $46,146,216 $12,126,226 $11,799,154 $60,764,562 $33,676,712
=========== =========== =========== =========== =========== ===========
Undistributed (overdistributed) net
investment income, end of period ...... $ 471,526 $ 955,672 $ 32,504 $ 32,478 $ 19,146 $ 47,858
<FN>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- - -----------------------------------------------------------------------------------------------------------------
GE GE
SHORT-TERM MONEY
GOVERNMENT MARKET
FUND FUND*
- - -----------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995
- - -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income ............... $ 306,116 $ 553,483 $ 2,095,913 $ 3,466,116
Net realized gain (loss) on
investments, futures, written options,
and foreign currency transactions .. 85,098 92,476 0 0
Net increase (decrease) in unrealized
appreciation/depreciation .......... (115,856) 87,066 0 0
----------- ----------- ----------- ------------
Net increase (decrease)
from operations...................... 275,358 733,025 2,095,913 3,466,116
----------- ----------- ----------- ------------
Distributions to shareholders from:
Net investment income
Class A ............................ (7,954) (4,851) 0 0
Class B ............................ (2,783) (2,070) 0 0
Class C ............................ (78,503) (86,748) (2,095,913) (3,466,116)
Class D ............................ (228,095) (480,304) 0 0
Net realized gains
Class A ............................ (1,457) 0 0 0
Class B ............................ (405) 0 0 0
Class C ............................ (13,646) 0 0 0
Class D ............................ (33,443) 0 0 0
----------- ----------- ----------- ------------
Total distributions .................. (366,286) (573,973) (2,095,913) (3,466,116)
----------- ----------- ----------- ------------
Increase (decrease) in net assets from
operations and distributions ........ (90,928) 159,052 0 0
----------- ----------- ----------- ------------
Share transactions:
Proceeds from sale of shares
Class A ............................ 30,988 247,621 0 0
Class B ............................ 88,124 70,000 0 0
Class C ............................ 1,221,412 2,185,367 82,782,043 185,442,103
Class D ............................ 1,471,541 167,065
Value of distributions reinvested
Class A ............................ 7,641 4,195 0 0
Class B ............................ 2,114 2,041 0 0
Class C ............................ 86,399 84,867 1,922,327 3,344,476
Class D ............................ 254,720 480,184 0 0
Cost of shares redeemed
Class A ............................ (5,297) (3,158) 0 0
Class B ............................ (3) (15,199) 0 0
Class C ............................ (434,026) (152,811) (66,608,956) (170,729,355)
Class D ............................ (2,040,955) (544,992) 0 0
----------- ----------- ----------- ------------
Net increase (decrease) from
share transactions .................. 682,658 2,525,180 18,095,414 18,057,224
----------- ----------- ----------- ------------
Total increase (decrease) in
net assets........................... 591,730 2,684,232 18,095,414 18,057,224
NET ASSETS
Beginning of period .................. 10,853,160 8,168,928 71,663,988 53,606,764
----------- ----------- ----------- ------------
End of period ........................ $11,444,890 $10,853,160 $89,759,402 $ 71,663,988
=========== =========== =========== ============
Undistributed (overdistributed) net
investment income, end of period ...... $ 4,447 $ 15,666 $ 32,532 $ 32,532
<FN>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
CHANGES IN FUND SHARES
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL U.S.
EQUITY EQUITY EQUITY
FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995 (unaudited) 30, 1995
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
Shares sold by subscription .......... 70,074 284,516 36,659 121,585 403,782 708,859
Issued for distributions reinvested .. 405 6 2,869 1,382 23,346 760
Shares redeemed ...................... (27,614) (37,459) (28,450) (19,572) (75,696) (37,975)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in Fund shares 42,865 247,063 11,078 103,395 351,432 671,644
========== ========== ========== ========== ========== ==========
CLASS B:
Shares sold by subscription .......... 8,002 4,284 4,576 13,889 119,391 77,863
Issued for distributions reinvested .. 0 3 360 252 3,135 246
Shares redeemed ...................... (163) (2,941) (802) (3,099) (2,555) (4,451)
---------- ---------- ---------- ---------- ---------- ----------
Net increase in Fund shares .......... 7,839 1,346 4,134 11,042 119,971 73,658
========== ========== ========== ========== ========== ==========
CLASS C:
Shares sold by subscription .......... 62,547 67,513 189,374 349,633 594,930 489,072
Issued for distributions reinvested .. 341 295 23,887 30,042 44,064 24,846
Shares redeemed ...................... (7,458) (20,008) (131,990) (266,651) (113,803) (227,802)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in Fund shares 55,430 47,800 81,271 113,024 525,191 286,116
========== ========== ========== ========== ========== ==========
CLASS D:
Shares sold by subscription .......... 572,774 1,129,189 98,631 167,151 2,518,059 3,838,354
Issued for distributions reinvested .. 12,532 11,978 7,803 17,187 203,647 202,724
Shares redeemed ...................... (78,446) (814,812) (203,540) (244,112) (1,845,901) (4,733,502)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in Fund shares 506,860 326,355 (97,106) (59,774) 875,805 (692,424)
========== ========== ========== ========== ========== ==========
<FN>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
CHANGES IN FUND SHARES
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
STRATEGIC TAX- FIXED
INVESTMENT EXEMPT INCOME
FUND FUND FUND
- - ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995 (unaudited) 30, 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A:
Shares sold by subscription ............ 132,247 435,194 8,837 28,305 853,037 495,095
Issued for distributions reinvested .... 14,258 1,910 389 304 21,767 26,214
Shares redeemed ........................ (34,554) (31,089) (1,700) (244) (103,187) (2,376,760)
--------- -------- ------- -------- --------- ----------
Net increase (decrease) in Fund shares . 111,951 406,015 7,526 28,365 771,617 (1,855,451)
========= ======== ======= ======== ========= ==========
CLASS B:
Shares sold by subscription ............ 89,280 45,807 59,741 53,644 94,674 22,118
Issued for distributions reinvested .... 2,264 332 958 377 1,013 589
Shares redeemed ........................ (3,244) (7,429) (9,435) (860) (3,756) (8,853)
--------- -------- ------- -------- --------- ----------
Net increase in Fund shares ............ 88,300 38,710 51,264 53,161 91,931 13,854
========= ======== ======= ======== ========= ==========
CLASS C:
Shares sold by subscription ............ 257,562 272,667 84,303 97,435 482,944 774,361
Issued for distributions reinvested .... 29,341 21,452 11,095 22,483 44,963 78,996
Shares redeemed ........................ (67,321) (157,028) (31,455) (151,987) (154,708) (264,064)
--------- -------- ------- -------- --------- ----------
Net increase (decrease) in Fund shares . 219,582 137,091 63,943 (32,069) 373,199 589,293
========= ======== ======= ======== ========= ==========
CLASS D:
Shares sold by subscription ........... 1,145,035 415,926 0 0 1,402,190 527,225
Issued for distributions reinvested ... 25,059 30,112 6,484 19,730 32,134 12,081
Shares redeemed ....................... (336,517) (526,586) (90,535) (129,315) (348,187) (224,431)
--------- -------- ------- -------- --------- ----------
Net increase (decrease) in Fund shares. 833,577 (80,548) (84,051) (109,585) 1,086,137 314,875
========= ======== ======= ======== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------------------------
GE GE
SHORT-TERM MONEY
GOVERNMENT MARKET
FUND FUND*
- - ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1996 September March 31, 1996 September
(unaudited) 30, 1995 (unaudited) 30, 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A:
Shares sold by subscription ........................ 2,596 20,854 0 0
Issued for distributions reinvested ................ 641 354 0 0
Shares redeemed .................................... (443) (265) 0 0
-------- -------- ----------- ------------
Net increase (decrease) in Fund shares ............. 2,794 20,943 0 0
======== ======== =========== ============
CLASS B:
Shares sold by subscription ........................ 7,374 5,935 0 0
Issued for distributions reinvested ................ 177 174 0 0
Shares redeemed .................................... (0) (1,280) 0 0
-------- -------- ----------- ------------
Net increase in Fund shares ........................ 7,551 4,829 0 0
======== ======== =========== ============
CLASS C:
Shares sold by subscription ........................ 102,200 185,888 82,782,043 185,465,791
Issued for distributions reinvested ................ 7,238 7,195 1,922,327 3,320,860
Shares redeemed .................................... (36,289) (13,001) (66,608,956) (170,729,355)
-------- -------- ----------- ------------
Net increase (decrease) in Fund shares ............. 73,149 180,082 18,095,414 18,057,296
======== ======== =========== ============
CLASS D:
Shares sold by subscription ........................ 123,334 14,219 0 0
Issued for distributions reinvested ................ 21,353 40,870 0 0
Shares redeemed .................................... (171,114) (46,499) 0 0
-------- -------- ----------- ------------
Net increase (decrease) in Fund shares ............. (26,427) 8,590 0 0
======== ======== =========== ============
<FN>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- - ----------
See Notes to Financial Statements.
</FN>
</TABLE>
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
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' adviser 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 Tax-Exempt Fund GE Short-Term Government Fund
GE Global Equity Fund GE Fixed Income 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 Government Fund GE U.S. Equity 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
based on prices 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. Options that
are written or purchased are valued using the mean between the last asked and
bid prices. Forward foreign currency contracts are valued at the mean between
the bid and the offered forward rates as last quoted by a recognized dealer.
Short term investments maturing within 60 days are valued at amortized cost or
original cost plus accrued interest, each of which approximates fair value.
Portfolio positions which cannot be valued as set forth above are valued at fair
value determined under procedures approved by the Trustees.
50
<PAGE>
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 specific identification 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.
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, U.S. Government securities or other liquid, high grade
debt obligations) with the Funds' custodian sufficient to cover the purchase
price, unless they enter into an offsetting contract for the sale of equal
securities and value.
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities and purchases and sales of
investment securities are denominated in foreign currency and translated to U.S.
dollars at the prevailing exchange rate on the respective dates of such
transactions.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized exchange gains or losses from foreign currency
transactions represent sale of foreign currencies, currency gains or losses
between the trade date and the settlement date on securities transactions,
realized gains and losses on forward foreign currency contracts, and the
difference between the amounts of dividends, interest, and foreign withholding
taxes recorded on the Fund's books, and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from 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 March 31,
1996, 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
97,452 2003
GE Fixed Income Fund 2,559,595 2003
GE Money Market Fund 3,370 2003
51
<PAGE>
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 513,033
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 such information is
available. 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.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results differ from those estimates.
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.
FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward") is an agreement between two
parties to buy and sell a currency at a set price on a future date. The market
value of the Forward fluctuates with changes in currency exchange rates. The
Forward is marked-to-market daily and the change in the market value is recorded
by the Fund as an unrealized gain or loss. When the Forward is closed, the Fund
records a realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed. The Fund could be
exposed to risk if a counterparty is unable to meet the terms of the contract or
if the value of the currency changes unfavorably. The Fund may enter into
Forwards in connection with planned purchases and sales of securities, to hedge
specific receivables or payables against changes in future exchange rates or to
hedge the U.S. dollar value of portfolio securities denominated in a foreign
currency.
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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 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 proceeds
on the sale of the security for a purchased put or cost of the security for a
call option is adjusted by the amount of premium received or paid.
SECURITY LENDING
The Funds may loan securities to well known and recognized U.S. and foreign
brokers and banks. 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 Fund's
Investment Adviser and Administrator, a wholly owned subsidiary of General
Electric Company, for investment advisory and administrative services, is paid
monthly based on the average daily net assets of each 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 Government Fund .30% .15%
GE Money Market Fund .25% .20%
53
<PAGE>
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 receive an annual fee of $10,000 and an
additional fee of $500 for each Trustees' meeting attended.
For the six months ended March 31, 1996, GEIS acting as underwriter received net
commissions of $6,112 from the sale of Class A shares and $6,205 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 March 31, 1996, were as follows:
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
- - --------------------------------------------------------------------------------
GE International Equity Fund $ 6,947,451 $ 2,554,299 $ 4,393,152
GE Global Equity Fund 6,323,587 1,459,664 4,863,923
GE U.S. Equity Fund 40,783,103 864,861 39,918,242
GE Strategic Investment Fund 9,230,491 921,194 8,309,297
GE Tax-Exempt Fund 169,243 164,060 5,183
GE Fixed Income Fund 217,891 1,456,491 (1,238,600)
GE Short-Term Government Fund 18,905 124,296 (105,391)
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at March 31, 1996.
5. OPTIONS
- - ----------
During the period ended March 31, 1996, the following option contracts were
written:
GE Strategic
GE U.S. Equity Fund Investment Fund
-----------------------------------------------
Number Number
of Contracts Premium of Contracts Premium
- - --------------------------------------------------------------------------------
Balance as of September 30, 1995 19 $ 11,280 39 $ 73,981
Written 187 56,652 0 0
Closed and Expired (101) (37,173) (39) (73,981)
Exercised (16) (10,352) (0) (0)
- - --------------------------------------------------------------------------------
Balance as of March 31, 1996 89 $ 20,407 0 $ 0
================================================================================
54
<PAGE>
6. INVESTMENT TRANSACTIONS
- - --------------------------
The cost of purchases and the proceeds from sales of investments, other than
U.S. Government obligations, short-term securities and options, for the period
ended March 31, 1996, were:
Purchases Sales
- - --------------------------------------------------------------------------------
GE International Equity Fund $19,879,672 $ 8,623,010
GE Global Equity Fund 7,523,398 8,238,390
GE U.S. Equity Fund 84,576,857 46,354,582
GE Strategic Investment Fund 17,472,705 6,494,502
GE Tax-Exempt Fund 7,352,846 6,666,686
GE Fixed Income Fund 16,831,521 7,127,443
GE Short-Term Government Fund 1,871,065 1,268,817
The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the period ended March 31, 1996, were:
Purchases Sales
- - --------------------------------------------------------------------------------
GE U.S. Equity Fund $ 690,091 $ 279,141
GE Strategic Investment Fund 26,109,774 17,560,155
GE Fixed Income Fund 79,730,187 60,693,205
GE Short-Term Government Fund 12,320,055 11,596,969
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 93%
GE Global Equity Fund 3 27%
GE U.S. Equity Fund 7 55%
GE Strategic Investment Fund 5 59%
GE Tax-Exempt Fund 1 24%
GE Fixed Income Fund 4 42%
GE Short-Term Government Fund 2 67%
GE Money Market Fund 2 19%
55
<PAGE>
GE FUNDS INVESTMENT TEAM
- - --------------------------------------------------------------------------------
PORTFOLIO MANAGERS
GE International Equity Fund
GE Global Equity Fund
- - ----------------------------
Ralph R. Layman
GE U.S. Equity Fund
- - -------------------
Eugene K. Bolton
Christopher D. Brown
David B. Carlson
Peter J. Hathaway
A. John Kohlhepp
Paul C. Reinhardt
GE Strategic Investment Fund
- - ----------------------------
David B. Carlson
Robert A. MacDougall
GE Tax-Exempt Fund
- - ------------------
Stella V. Lou
GE Fixed Income Fund
GE Short-Term Government Fund
GE Money Market Fund
- - --------------------
Robert A. MacDougall
INVESTMENT ADVISER AND ADMINISTRATOR
GE Investment Management Incorporated
Officers of the Investment Adviser
- - ----------------------------------
Dale F. Frey, Chairman of the Board and President
Eugene K. Bolton, EVP, Domestic Equities
Michael J. Cosgrove, EVP, Mutual Funds
Ralph R. Layman, EVP, International Equities
Alan M. Lewis, EVP, General Counsel and Secretary
John H. Myers, EVP, Fixed Income and Alternative Investments
Geoffrey R. Norman, EVP, Institutional Marketing
Don W. Torey, EVP, Finance and Administration
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
56
<PAGE>
- - --------------------------------------------------------------------------------
SHAREHOLDER INQUIRIES
- - --------------------------------------------------------------------------------
We believe there are two crucial factors contributing to shareholder
satisfaction, perfor-mance of your investments as measured against industry
benchmarks and the quality of service you receive.
In the first part of this report, the portfolio managers have discussed your
funds' performance. We would like to take this opportunity to tell you about the
people who are here to service your account and the technology we have in place.
On average, our Specialists have a college degree, are registered with the
National Association of Security Dealers and have over two years of Inquiry
Center experience.
In 1995 our Specialists handled 246,951 calls with an average speed of answer of
less than five seconds and an average talk time of three minutes. Our busiest
period is between January 1 and April 15 (tax season) during which time each
Specialist handles over 75 calls per day!
Our Automated Telephone Response System has equally impressive statistics. This
service handled 358,625 inquiries in 1995, allowing shareholders instant access
to account balances, duplicate statements, share redemption, etc., simply by
following the menu on their touch-tone telephones. While our Specialists are
available Monday through Friday from 8:30 AM to 5:00 PM (except holidays), our
Automated Telephone Response System is accessible Monday through Saturday from
6:00 AM to 10:00 PM. In the upcoming months, we will be upgrading our Automated
System. Watch for more information on the new services in upcoming issues of
your quarterly newsletter.
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 regarding the Funds to:
GE Funds
3003 Summer Street
P.O. Box 120065
Stamford, CT 06912-0065
Address inquiries regarding your account to:
GE Funds
P.O. Box 8309
Boston, MA 02266-8309
CLASS D INVESTOR: Contact your designated GE Investment's 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
Canton, MA
Permit No. 313
Distributed by GE Investment Services Inc., member NASD and SIPC
