[LOGO]
GE Funds
Semi-Annual Report
March 31, 1997
<PAGE>
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Understanding Your Report
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President's Letter 1
Review of Performance and Schedules of Investments
Portfolio managers discuss your Funds and what we
invested in and why
GE International Funds 3
GE Premier Growth Equity Fund 10
GE U.S. Equity Fund 13
GE Strategic Investment Fund 19
GE Tax-Exempt Fund 27
GE Fixed Income Funds 31
Notes to Performance 41
Notes to Schedules of Investments 42
Financial Statements 43
Financial Highlights and Statements of Assets and
Liabilities, Operations, and Changes in Net Assets
Notes 60
Notes to the Financial Statements
GE Funds Investment Team 68
Shareholder Inquiries Inside Back Cover
How you can obtain more information
<PAGE>
Top Rated GE Funds
By Morningstar
Through March 31, 1997
* * * * *
Overall and 3 year Ratings
Rated among 1919 Domestic Equity Funds
GE US Equity - D
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* * * *
Overall and 3 year Ratings
Funds Number of Funds
Fund/Class Peer Group in Peer Group
- ---------- ---------- -------------
GE International Equity - D
GE Global Equity - C & D International Equity 478
GE US Equity - A, B & C
GE Strategic Inv't. - C & D Domestic Equity 1919
GE Short-Term Gov't. - C & D Taxable Bond 1172
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* * * *
1 Year Rating
Funds Number of Funds
Fund/Class Peer Group in Peer Group
- ---------- ---------- -------------
GE International Equity - D International Equity 939
GE US Equity - B, C & D Domestic Equity 3048
GE Tax-Exempt - C & D Municipal Bond 1751
GE Short-Term Gov't. - C & D Taxable Bond 1696
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Morningstar is an independent fund ranking company that seeks to provide a
non-biased rating system used in making investment decisions. A fund is rated in
its investment class on a scale of one to five stars through the evaluation of
the historical balance of risk and return.
Morningstar proprietary ratings reflect historical risk-adjusted performance
through March 31, 1997. The ratings are subject to change every month.
Morningstar ratings are calculated from a fund's three-, five- and ten-year
returns (with fee and sales charge adjustments) in excess of 90-day T-bill
returns. The one-year rating is calculated using the same methodology, but is
not a component of a fund's overall rating. Ten percent of the funds in a rating
category receive five stars, the next 22.5% receive four stars and the next 35%
receive three stars.
The GE Funds ratings above are based on three years of performance history. No
class of GE Funds has either a five or ten year performance history. Star
ratings for the classes of shares not shown above were lower than those shown.
Investment return and principal value of an investment will fluctuate and you
may have a gain or loss when you sell your shares. The adviser has voluntarily
agreed to waive and/or bear certain fees and expenses. Without these provisions,
which may be terminated in the future, the results may have been lower. Returns
assume changes in share price and reinvestment of dividends and capital gains.
Past performance is no guarantee of future results.
<PAGE>
A Letter from the President
Dear Shareholder:
We are pleased to provide you with the GE Funds 1997 semi-annual report. The new
year has continued to bring exciting changes to the GE Funds. We are proud to
announce the addition of a new growth equity product to our family of funds. The
GE Premier Growth Equity Fund provides the opportunity to invest in the stocks
of growing companies with the objective of long-term growth of capital and
future income. Please refer to the portfolio manager's review of performance for
specific investment considerations. The introduction of this Fund is part of our
commitment to provide you with a diverse array of investment options.
Performance Highlights
Despite the volatile equity markets, our GE U.S. Equity Fund and GE Strategic
Investment Fund were able to achieve double digit returns for the year ended
March 31, 1997 (excluding loads).
The GE Family of funds continued to generate competitive returns for its
shareholders in 1997. The majority of our fund classes excluding loads,
outperformed the average returns of their peers on a six month, one year and
three year basis, as measured at March 31, by Lipper Analytical Services, an
independent mutual fund rating service. The Lipper Analytical Services average
total returns for each category and complete details on each fund's performance,
including reductions for the effect of loads, can be found on the various fund
performance profiles contained in this semi-annual report.
Additionally, our Funds received many favorable star ratings from Morningstar,
an independent fund ranking company which analyzes risk-adjusted performance
providing a non-biased ranking system. Refer to the inside front cover of this
report to see our Morningstar rankings.
Market Overview
The financial markets are off to a mixed start in 1997. Domestic equity markets
supported by good corporate earnings, strong mutual fund flows, and continued
signs of non-inflationary growth in the economy, rallied to record-highs by mid-
February, only to give back much of their gains during the last half of March
due to interest rate concerns. These factors resulted in an S&P 500 return of
2.6% for the first quarter of 1997 and brought the six-month return to 11.2% for
the period ended March 31, 1997.
The bond market reacted positively to the November election results during the
last quarter of 1996 but lost enthusiasm as a result of the 1997 first quarter
economic data. Recent reports suggested a bias towards stronger growth, which
convinced the Federal Reserve Board that a pre-emptive strike against inflation
was necessary to slow the economy. The Fed increased short term rates .25% in
March and appears ready to raise interest rates an additional .25% to .50%
during the coming months to further control economic expansion. This interest
rate pressure had a negative impact on the fixed income market pushing the
Lehman Brothers Aggregate Bond Index down .6% in the first quarter of 1997
resulting in a 2.4% return for the six months ended March 31, 1997.
[PHOTO OF MICHAEL J. COSGROVE]
1
<PAGE>
A LETTER FROM THE PRESIDENT (CONTINUED)
Municipal bonds began 1997 performing slightly better than taxable bonds on a
total return basis, with the Lehman Brothers Municipal Bond Index losing .2% in
the first quarter of 1997 and finishing the six months ended March 31, 1997 up
2.3%.
Outside the U.S., financial markets also lagged somewhat, with the Morgan
Stanley EAFE Index losing 1.6% in the first quarter of 1997 and remaining flat
for the six months ended March 31, 1997. Progress towards European Union,
productivity improvements, and a strong U.S. dollar continue to support European
share prices. Japan remains the world's underperformer, down 11.8% for the three
months and 22.0% for the six months ended March 31, 1997, respectively. We
continue to hold a favorable view of continental Europe, where corporate
restructuring efforts are underway and valuations are more attractive.
Market Outlook
We view the U.S. equity market with a sense of caution but believe that
continued earnings growth and a controlled inflation environment will generate
reasonable returns in a volatile market. International markets continue to offer
opportunities for attractive returns. Investors are encouraged by low interest
rates, benign inflation, and a renewed emphasis on shareholder value, even
though recently, local returns have been offset by the strength of the dollar.
Fixed income markets provide additional diversification and an attractive
risk-return tradeoff, provided inflation remains subdued.
As always, it is our pleasure to serve you, and we will continue to be dedicated
to helping you meet your financial objectives.
Sincerely,
/S/ SIGNATURE
- ----------------------
Michael J. Cosgrove
Mike Cosgrove is responsible for the marketing, product development and sales of
the GE Funds, and is a Trustee of the GE Pension Trust and GE's employee savings
program.
In Mike's previous position as Chief Financial Officer of GE Investments and
Assistant Treasurer-GE Company, he had financial responsibility for all assets
under GE Investments' management. Mike joined GE in 1970. After completing the
GE Financial Management Program he held a number of managerial positions in
finance and sales in the International Operation, including serving as Vice
President and Treasurer and later as the Vice President - Countertrade and
Barter for GE Trading Company.
Mike 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.
See page 41 for Notes to Performance.
2
<PAGE>
GE INTERNATIONAL FUNDS
Q&A
Ralph Layman manages the international equity team of GE Investments with total
assets of over $8 billion. 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 and GE's employee savings
program, and serves 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 GE International & GE Global Equity Funds' industry benchmarks and
Lipper peers perform for the six months ended March 31, 1997?
A. The GE International Equity Fund's benchmark, the MSCI EAFE Index, remained
flat for the six months ended March 31, 1997. Our Lipper peer group of 782
International Stock Funds returned an average of 5.7% for the same period.
The GE Global Equity Fund's benchmark, MSCI World Index, returned 4.9% for
the six months ended March 31, 1997. Our Lipper peer group of 210 Global
Stock Funds returned an average of 4.5% for the same period. Refer to the
following page for the GE International Equity Fund and page 7 for GE
Global Equity Fund, to see how your class of shares performed compared to
the above benchmarks.
Q. What drove the Funds' performance?
A. Stock selection drives our country allocation and our performance. Our
approach proved advan-tageous in Japan, where we have been underweighted in
one of the world's worst performing markets in the past six months (-22%).
More importantly, we have avoided Japan's financial sector, which has led
the decline. Japanese banks have been plagued with large non-performing
loans and questionable management oversight. In Europe, our performance has
been hampered by the strong U.S. dollar, which dampens our returns once
they are translated back into our local currency. We generally do not hedge
our currency exposure, preferring instead to buy quality exporters which we
believe are likely to benefit from a strong U.S. dollar (see the discussion
below on Novartis). For the GE Global Equity Fund, we have maintained our
underweight stance towards the U.S. It is our contention the U.S. indices
do not give a clear impression of what has been happening in the market,
where many quality names have fallen 20% or more from their highs. This has
provided us with some opportunities to add new names to the Fund, although
we remain cautious on the outlook for the large-cap, "nifty-fifty" stocks
(largest U.S. companies), especially in light of the recent change in Fed
policy.
Q. Which investments stand out?
A. Over the past six months, the Funds have benefited from our holdings in
Novartis, a merger between two Swiss pharmaceutical companies, Sandoz and
Ciba-Geigy. Novartis epitomizes two trends we are seeing in Europe;
corporate restructurings and strong exports. The company's profits have
been aided by cost savings and synergies related to the merger, while its
revenues have been boosted by a stronger U.S. dollar. Another favorite
worldwide would include HSBC Holdings, one of Asia's strongest banking
franchises. HSBC is well-positioned in China and other Asian markets, and
seems to have regained its focus on its core banking business.
Q. What is outlook for the Funds and how have you positioned them going
forward?
A. Looking ahead, we still feel there is good value in Europe and the emerging
markets. Europe merits an overweight position as we feel we are in the
early stages of the restructuring movement. While we have low expectations
for economic growth in these countries, we believe the region's economies
have bottomed and should improve going forward. We expect to remain
underweighted in Japan while we await signs that the government will tackle
the structural problems in its economy. As for the U.S., we believe a
two-tier market has developed. Many quality second-tier names have already
corrected, providing us with some opportunities. We remain more cautious on
the index names, however, and continue to take profits from our holdings
among the "nifty-fifty." We believe at some point the performance of these
names must revert back to the mean, and we wonder if further interest rate
increases may act as the catalyst for this move. In this environment, our
stock picking philosophy should prove rewarding, as investors are forced to
differentiate between their names.
[PHOTO OF RALPH LAYMAN]
3
<PAGE>
GE International Equity Fund
PORTFOLIO COMPOSITION
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Europe 61.0%
Cash & Other 5.1%
Other Regions 5.4%
Japan 13.9%
Pacific Rim 14.6%
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Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr. Inception Commencement
- --------------------------------------------------------------------------------
Class A 5.38% 9.86% 8.50% 7.39% 3/2/94
- --------------------------------------------------------------------------------
Class A* 0.38% 4.64% 6.75% 5.71% 3/2/94
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Class B 5.14% 9.34% 7.92% 6.83% 3/2/94
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Class B* 1.14% 5.34% 7.63% 6.54% 3/2/94
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Class C 5.61% 10.23% 8.72% 7.64% 3/2/94
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Class D 5.74% 10.54% 9.09% 7.98% 3/2/94
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MSCI EAFE 0.00% 1.45% 6.53%
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* With Load
<PAGE>
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, 1997
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Novartis AG 2.52%
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Total S.A. (Class B) 2.48%
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Medeva 2.21%
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Siebe 2.02%
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Canon Inc. 1.94%
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Carrefour 1.87%
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ABB AG 1.87%
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Airtours PLC 1.84%
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HSBC Holdings PLC 1.82%
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Telecom Italia Mobile 1.73%
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* Lipper Performance Comparison
International Stock Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 782 686 314
Peer group average
total return: 5.7% 8.9% 6.0%
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 41 for Notes to Performance.
Past performance is no guarantee of future results.
4
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE INTERNATIONAL EQUITY FUND
Number
of Shares Value
- --------------------------------------------------------------------------------
Common Stock -- 94.9%
- --------------------------------------------------------------------------------
Australia -- 3.1%
Brambles Industries Ltd. 59,559 $ 979,110
Burns Philip & Co. 611,712 1,021,438
Coca Cola Amatil Ltd. 38,669 367,683
F.H. Faulding & Co. Ltd. 36,134 212,453
2,580,684
Austria -- 2.8%
Creditanstalt Bankverein 8,930 345,429
Flughafen Wien AG 5,018 228,708
OMV AG 3,648 431,823
VA Technologie AG 9,114 1,343,441
2,349,401
Brazil -- 1.1%
Telecomunicacoes
de Sao Paulo S.A. 3,526,245 895,459
Canada -- 0.6%
Bombardier Inc. 26,062 470,603
Denmark -- 1.6%
Den Danske Bank 13,251 1,194,610
Tele Danmark AS (Series B) 2,315 121,408
1,316,018
Finland -- 1.0%
Merita Ltd. 46,224 157,300
Metra AB 948 55,412
Pohjola Insurance Group 8,144 218,451
Valmet Corp. 23,033 410,349
841,512
[GRAPHIC OF FLAG OF FRANCE]
France -- 10.9%
Alcatel Alsthom 11,700 1,412,877
AXA-UAP 8,182 542,552
Carrefour 2,486 1,545,752
Coflexip ADR 19,983 614,477(a)
Lyonnaise Des Eaux S.A. 6,674 683,507
Michelin CGDE 9,465 563,905
Total S.A. (Class B) 23,704 2,055,656
Usinor Sacilor 26,081 427,367
Valeo 17,756 1,196,067
9,042,160
GRAPHIC OF FLAG OF GERMANY]
Germany -- 9.4%
BASF AG 16,381 618,707
Deutsche Bank AG 2,805 157,907
Dresdner Bank AG 9,234 328,283
Fresenius Medical Care Inc.
AG ADR 10,506 912,651(a)
Gehe AG 15,294 1,049,858
Mannesmann AG 3,254 1,244,636
SGL Carbon 10,369 1,423,562
Siemens AG 20,911 1,127,038
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Veba AG 15,491 $ 877,173
7,739,815
Greece -- 0.5%
Alpha Credit Bank 5,616 412,336
Alpha Credit Bank (Rts.) 4,493 35,828
448,164
Hong Kong -- 4.9%
Cheung Kong (Holdings) Ltd. 84,000 739,866
China Resources Enterprise Ltd. 36,000 77,587
Giordano International 607,000 368,178
Hong Kong & Shang Hot 85,000 134,377
HSBC Holdings PLC 64,787 1,504,983
Johnson Electric Holdings 91,500 232,626
Lai Sun Development Co. Ltd. 109,000 126,602
Lai Sun Hotels International Ltd. 21,888 0
New World Development Co. Ltd. 65,150 351,449
Television Broadcasts Ltd. ADR 126,000 512,215
4,047,883
India -- 0.5%
BSES Ltd. 7,640 160,440
Tata Engineering &
Locomotive Co. Ltd. GDR 6,621 86,073(b)
Tata Engineering &
Locomotive Co. Ltd. GDR 6,442 83,746
Videsh Sanchar Nigam Ltd. GDR 2,550 44,752(b)
375,011
Indonesia -- 1.8%
Astra International 313,000 1,016,826
PT Mulia Industrindo 361,000 233,049
PT Tambang Timah GDR 13,622 211,141(b)
1,461,016
Italy -- 3.0%
Edison SPA 99,111 529,662
ENI SPA 54,976 279,455
Gucci Group N.V. ADR 1,783 128,599
Industrie Natuzzi Spa 5,324 127,110
Telecom Italia Mobile 496,237 1,428,663
2,493,489
[GRAPHIC OF FLAG OF JAPAN]
Japan -- 13.9%
Canon Inc. 75,000 1,607,100
Credit Saison Co. 64,285 1,174,772
DDI Corp. 180 1,136,735
Denso Corp. 10,000 196,491
Honda Motor Co. 40,000 1,193,499
Murata Manufacturing Co. 30,000 1,077,060
NEC Corp. 67,000 758,470
NTT Data Communications
Systems Co. 27 718,283
Promise Co. 5,700 238,748
Rohm Co. 17,000 1,253,659
Sega Enterprises 3,100 77,707
Sony Corp. 14,500 1,014,191
Sumitomo Realty & Development 23,000 154,734
Suzuki Motor Corp. 59,000 572,491
Tokyo Steel Manufacturing 29,300 289,043
11,462,983
- ----------
See Notes to Schedule of Investments and Financial Statements
5
<PAGE>
GE International Equity Fund March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
Malaysia -- 0.8%
AMMB Holdings Berhad 34,000 $ 282,613
AMMB Holdings Berhad (Rts.) 68,000 7,683
Telekom Malaysia 46,000 358,229
648,525
Mexico -- 0.9%
Gruma S.A. de C.V. 3,398 16,305
Grupo Carso S.A. de C.V. ADR 41,833 500,950
Grupo Financiero Bancomer
S.A. ADR (Series C) 22,016 151,366(a,b)
Grupo Televisa S.A. de C.V. ADR 3,723 92,610(a)
761,231
Netherlands -- 4.9%
IHC Caland N.V. 20,531 1,096,884
ING Groep N.V. 30,671 1,208,524
Nutricia Verenigde Bedrijven 1,561 241,370
PolyGram N.V. 20,512 1,031,342
Wolters Kluwer 4,205 506,484
4,084,604
New Zealand -- 0.1%
Carter Holt Harvey Ltd. 45,600 96,617
Panama -- 0.5%
Panamerican Beverages Inc.
(Class A) 7,950 426,319
Peru -- 1.0%
Telefonica del Peru
S.A. ADR (Class B) 38,300 852,175
Philippines -- 1.4%
Metro Bank & Trust Co. 19,800 514,432
San Miguel Corp. 177,180 614,905
1,129,337
Portugal -- 1.1%
Banco Comercial Portugues 42,231 629,975
Banco Comercial Portugues ADR 21,429 313,399
943,374
Singapore -- 0.5%
DBS Land Ltd. 68,960 235,834
Singapore Airlines Ltd. 25,000 200,762
436,596
South Africa -- 1.3%
Iscor 1,076,467 876,859
Malbak 45,562 226,805
1,103,664
South Korea -- 1.0%
Korea Electric Power 27,227 790,510
Spain -- 2.0%
Banco Popular (Regd.) 1,077 193,788
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Banco Santander S.A. 4,646 $ 320,641
Repsol S.A. 26,628 1,112,052
1,626,481
Sweden -- 3.7%
Astra AB (Series B) 2,480 116,661
Autoliv AB 32,991 1,424,969
Electrolux AB (Series B) 11,147 710,000
Kinnevik Investment (Series B) 13,305 372,526
LM Ericsson Telephone (Series B) 8,147 287,567
Netcom Systems AB (Series B) 11,689 172,171(a)
3,083,894
[GRAPHIC OF FLAG OF SWITZERLAND]
Switzerland -- 8.5%
ABB AG 1,285 1,544,858
Danzas Holdings (Regd.) 325 318,676
Nestle S.A. (Regd.) 810 948,471
Novartis AG 1,681 2,086,356
Roche Holdings AG 134 1,158,881
Schw Ruckversicher (Regd.) 616 654,955
Zurich Versicherungsgesellschaft 1,095 344,708
7,056,905
Thailand -- 0.5%
Banpu Public Co. Ltd. 6,200 90,773
Siam Cement Co. Ltd. 2,800 72,926
Thai Farmers Bank 32,731 213,120
376,819
[GRAPHIC OF FLAG OF UNITED KINGDOM]
United Kingdom -- 11.6%
Airtours PLC 93,337 1,520,297
Cordiant 324,031 645,076(a)
EMI Group 8,357 152,895
Granada Group 86,369 1,305,908
Medeva 363,667 1,830,900
Railtrack Group PLC 125,917 934,330
Reed International 64,587 1,188,027
Siebe 98,887 1,669,267
Thorn 111,956 303,928
9,550,628
Total Investments in Securities
(Cost $69,618,366) 78,491,877
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 3.9%
- --------------------------------------------------------------------------------
Repurchase Agreement -- 3.9%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $3,230,000) $3,230,000 3,230,000
(dated 03/31/97, proceeds $3,230,561,
collateralized by $3,299,796 United
States Treasury Note, 9.875%, 11/15/15)
Other Assets and Liabilities, net 1.2% 1,010,776
- --------------------------------------------------------------------------------
NET ASSETS - 100% $82,732,653
================================================================================
[GRAPHIC OF FLAG OF JAPAN]
- --------------------------------------------------------------------------------
Icons represent the top five country weightings in the
GE International Equity Fund at March 31, 1997.
6
<PAGE>
GE Global Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
EUROPE 42.6%
UNITED STATES 27.9%
JAPAN 8.8%
PACIFIC RIM 9.6%
CASH & OTHER 5.4%
OTHER REGIONS 5.7%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr. Inception Commencement
- --------------------------------------------------------------------------------
Class A 3.39% 8.99% 8.33% 7.63% 1/1/94
- --------------------------------------------------------------------------------
Class A* - 1.52% 3.81% 6.59% 6.02% 1/1/94
- --------------------------------------------------------------------------------
Class B 3.13% 8.38% 7.81% 7.98% 12/22/93
- --------------------------------------------------------------------------------
Class B* - 0.76% 4.38% 7.53% 7.72% 12/22/93
- --------------------------------------------------------------------------------
Class C 3.54% 9.25% 8.62% 12.43% 2/22/93
- --------------------------------------------------------------------------------
Class D 3.64% 9.50% 8.90% 10.66% 11/29/93
- --------------------------------------------------------------------------------
MSCI World 4.88% 9.35% 12.79%
================================================================================
* With Load
<PAGE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek
long-term growth of capital by investing primarily in
equity securities of global companies.
================================================================================
GE GLOBAL EQUITY FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1997
================================================================================
Novartis AG 2.70%
- --------------------------------------------------------------------------------
First Data Corp. 2.35%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 2.34%
- --------------------------------------------------------------------------------
HSBC Holdings PLC 2.21%
- --------------------------------------------------------------------------------
Telecom Italia Mobile 2.07%
- --------------------------------------------------------------------------------
Total S.A. (Class B) 1.89%
- --------------------------------------------------------------------------------
ING Groep N.V. 1.87%
- --------------------------------------------------------------------------------
Ecolab Inc. 1.86%
- --------------------------------------------------------------------------------
Citicorp 1.79%
- --------------------------------------------------------------------------------
UCAR International Inc. 1.75%
================================================================================
* Lipper Performance Comparison
Global Stock Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 210 191 112
Peer group average
total return: 4.5% 10.4% 10.6%
Lipper categories
in peer group: Global, Global Small Company
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
7
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE GLOBAL EQUITY FUND
Number
of Shares Value
- --------------------------------------------------------------------------------
Common Stock -- 94.6%
- --------------------------------------------------------------------------------
Australia -- 1.6%
Burns Philip & Co. 336,382 $ 561,692
Coca Cola Amatil Ltd. 22,035 209,519
771,211
Austria -- 1.8%
Flughafen Wien AG 3,317 151,180
VA Technologie AG 4,845 714,173
865,353
Brazil -- 1.2%
Ceval Alimentos S.A. 2,488,212 26,778
Telecomunicacoes
de Sao Paulo S.A. 2,289,610 581,426
608,204
Canada -- 0.3%
Bombardier Inc. 8,243 149,142
Finland -- 2.3%
Merita Ltd. 56,243 191,395
Sampo Insurance Co. Ltd. 5,260 483,293
Valmet Corp. 25,713 458,094
1,132,782
[GRAPHIC OF FLAG OF FRANCE]
France -- 7.2%
AXA-UAP 3,707 245,813
Carrefour 1,214 754,844
Coflexip ADR 19,573 601,870(a)
Michelin CGDE 8,049 479,542
Total S.A. (Class B) 10,654 923,935
Valeo 7,695 518,345
3,524,349
Germany -- 5.4%
BASF AG 7,101 268,203
Fresenius Medical Care Inc.
AG ADR 6,874 594,033(a)
Gehe AG 6,886 472,690
Mannesmann AG 1,866 713,734
Veba AG 10,831 613,302
2,661,962
Greece -- 0.7%
Alpha Credit Bank 4,401 323,132
Alpha Credit Bank (Rts.) 3,521 28,077
351,209
Hong Kong -- 4.1%
Cheung Kong (Holdings) Ltd. 38,000 334,701
Giordano International 576,000 349,375
HSBC Holdings PLC 46,708 1,085,013
Television Broadcasts Ltd. ADR 58,000 235,781
2,004,870
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Indonesia -- 1.4%
Astra International 132,000 $ 428,821
Steady Safe 193,700 229,923
658,744
Italy -- 3.7%
Edison SPA 54,320 290,293
Industrie Natuzzi Spa 21,688 517,801
Telecom Italia Mobile 351,789 1,012,798
1,820,892
[GRAPHIC OF FLAG OF JAPAN]
Japan -- 8.8%
Canon Inc. 34,000 728,552
Credit Saison Co. 27,025 493,867
DDI Corp. 126 795,714
Honda Motor Co. 17,000 507,237
NTT Data Communications
Systems Co. 16 425,649
Rohm Co. 7,000 516,212
Sega Enterprises 1,900 47,627
Sony Corp. 7,100 496,604
Suzuki Motor Corp. 33,000 320,207
4,331,669
Malaysia -- 1.0%
AMMB Holdings Berhad 55,000 457,168
AMMB Holdings Berhad (Rts.) 110,000 12,428
469,596
Mexico -- 1.1%
Gruma S.A. de C.V. 1,766 8,474
Grupo Carso S.A. de C.V.
(Series A) 31,216 149,791
Grupo Carso S.A. de C.V. ADR 3,440 41,194
Grupo Financiero Bancomer
S.A. ADR (Series C) 22,741 156,352(a,b)
Grupo Televisa S.A. de C.V. ADR 6,881 171,165(a)
526,976
Netherlands -- 2.7%
ING Groep N.V. 23,299 918,047
PolyGram N.V. 7,832 393,792
1,311,839
Norway -- 1.0%
Petroleum Geo Services 11,702 511,439(a)
Panama -- 1.2%
Banco Latinoamericano de
Exportaciones S.A. (Class E) 4,338 204,971
Panamerican Beverage Inc.
(Class A) 7,394 396,503
601,474
Peru -- 1.1%
Telefonica del Peru S.A. ADR
(Class B) 25,143 559,432
Philippines -- 1.0%
Pilipino Telephone 87,700 52,391(a)
San Miguel Corp. 125,700 436,243
488,634
- ----------
See Notes to Schedule of Investments and Financial Statements
8
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
Portugal --0.5%
Telecel-Comunicacoes Pessoais S.A. 2,922 $ 239,737(a)
South Africa -- 0.8%
Iscor 468,490 381,619
Spain -- 1.6%
Banco Santander S.A. 3,745 258,459
Repsol S.A. 13,078 546,170
804,629
Sweden -- 1.6%
Autoliv AB 18,328 791,635
[GRAPHIC OF FLAG OF SWITZERLAND]
Switzerland -- 7.1%
ABB AG 566 680,459
Novartis AG 1,065 1,321,814
Roche Holdings AG 61 527,550
Schw Ruckversicher (Regd.) 510 542,252
Tag Heuer International S.A. ADR 3,184 420,956(a)
3,493,031
Thailand -- 0.5%
Thai Farmers Bank 33,700 219,430
[GRAPHIC OF FLAG OF UNITED KINGDOM]
United Kingdom -- 7.0%
Granada Group 50,882 769,341
Medeva 144,616 728,077
Railtrack Group PLC 39,430 292,579
Reed International 34,921 642,344
Siebe 43,816 739,638
Thorn 93,512 253,858
3,425,837
[GRAPHIC OF FLAG OF UNITED STATES]
United States -- 27.9%
Airgas Inc. 32,481 548,117(a)
Airtouch Communications Inc. 30,421 699,683(a)
AlliedSignal Inc. 16,118 1,148,407
Avery Dennison Corp. 8,326 320,551
Citicorp 8,118 878,773
Colgate Palmolive Co. 4,604 458,674
Ecolab Inc. 24,036 913,368
Electronic Data Systems Corp. 18,855 761,271
First Data Corp. 33,922 1,149,108
Harman International
Industries Inc. 18,056 604,876
Home Depot Inc. 10,223 546,930
Intel Corp. 3,338 464,399
Motorola Inc. 12,640 763,140
Scherer (R.P.) Corp. Delaware 13,275 688,641(a)
Sears Roebuck & Co. 16,694 838,873
Sensormatic Electronics Corp. 24,599 415,108
Toys'R Us Inc. 8,816 246,848(a)
Travelers Group Inc. 17,131 820,147
Tyco International Ltd. 5,974 328,570
UCAR International Inc. 21,609 856,257(a)
Zebra Technologies Corp. (Class A) 9,030 207,690(a)
13,659,431
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Total Investments in Securities
(Cost $40,459,987) $46,365,126
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 3.3%
- --------------------------------------------------------------------------------
Repurchase Agreement -- 3.3%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $1,620,000) $1,620,000 1,620,000
(dated 03/31/97, proceeds 1,620,281,
collateralized by $1,656,445
United States Treasury Note,
9.875%, 11/15/15)
Other Assets and Liabilities, net 2.1% 1,005,057
- --------------------------------------------------------------------------------
NET ASSETS - 100% $48,990,183
================================================================================
[GRAPHIC OF FLAG OF UNITED STATES]
Icons represent the top five country weightings in the
GE Global Equity Fund at March 31, 1997.
- ----------
See Notes to Schedule of Investments and Financial Statements
9
<PAGE>
GE PREMIER GROWTH EQUITY FUND
Q&A
David Carlson manages pension and mutual fund portfolios with total assets of
over $4 billion. Dave joined GE in 1980 on the GE 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.
Q. How did the GE Premier Growth Equity Fund's industry benchmark and Lipper
peers perform for the three months ended March 31, 1997?
A. GE Premier Growth Equity Fund commenced investment operations on December
31, 1996, so we only have one quarter's data. For the three months ended
March 31, 1997, the S&P 500 rose 2.6% while our Lipper peer group of 843
Growth Funds posted an average return of -1.3%. Refer to the following page
to see how your class of shares in the GE Premier Growth Equity Fund
compared to these benchmarks.
Q. Why did the Fund's performance trail that of the S&P 500?
A. A look at the major stock market indices for the first quarter of 1997
shows that the large capitalization indices such as the Dow and the S&P 500
outperformed the broad market overall. For example, the NASDAQ index was
down 5.4% in the quarter. In addition, there were several holdings in the
GE Premier Growth Equity Fund which fell sharply in the quarter. With
approximately 30 holdings in the portfolio, the volatility of returns in
any one quarter can be fairly significant.
Q. What is the strategy of the GE Premier Growth Equity Fund?
A. GE Premier Growth Equity Fund is a growth fund that we believe will have
certain aggressive growth characteristics. We seek companies with the
following characteristics: high quality products/services with a leading
market share in their industries, strong financial characteristics
sustainable internal growth and superior financial returns (i.e.), a growth
rate of 15% or better, and well-regarded management. Initially, we plan to
limit the number of holdings to 30-40 names. We will invest in companies of
varying sizes, although a majority of the portfolio will be comprised of
companies with relatively large capitalizations. The portfolio will
typically be overweighted in growth industries such as Technology and
Healthcare, and underweighted in slow-growing industries such as Utilities
and Basic materials. We expect the turnover to be low by industry
standards, as our philosophy favors a buy and hold approach.
Q. What is the outlook for GE Premier Growth Equity Fund?
A. Currently, the portfolio holds 33 stocks; 5 Healthcare stocks, 3 Technology
stocks, 3 Software/services stocks, 3 Financial stocks, 2 Retail stocks, 2
cellular stocks, and the rest in a variety of industries. As of mid-to late
April the cash weighting in the portfolio is approximately 8%, slightly
higher than normal due to our concerns about the valuation level of the
U.S. market. We believe these companies can grow at a mid-teens or better
rate regardless of the strength in the economy or the level of interest
rates, and we believe the superior growth rate will drive superior
performance over the long term.
[PHOTO OF DAVID CARLSON]
10
<PAGE>
GE Premier Growth Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
- --------------------------------------------------------------------------------
ENERGY & BASIC MATERIALS 5.8%
CONSUMER 24.2%
CAPITAL GOODS 6.7%
HEALTHCARE 12.6%
FINANCIAL SERVICES 7.2%
RETAIL 5.2%
TECHNOLOGY 16.9%
Utilities 5.8%
Cash & Other 11.6%
Miscellaneous 4.0%
- --------------------------------------------------------------------------------
Total Return %
for the period ended March 31, 1997
- --------------------------------------------------------------------------------
Since
Inception Commencement
- --------------------------------------------------------------------------------
Class A - 4.73% 12/31/96
- --------------------------------------------------------------------------------
Class A* - 9.26% 12/31/96
- --------------------------------------------------------------------------------
Class B - 4.87% 12/31/96
- --------------------------------------------------------------------------------
Class B* - 8.67% 12/31/96
- --------------------------------------------------------------------------------
Class C - 4.67% 12/31/96
- --------------------------------------------------------------------------------
Class D - 4.60% 12/31/96
- --------------------------------------------------------------------------------
S&P 500 2.61%
================================================================================
* With Load
<PAGE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital and
future income by primarily investing in growth-oriented equity securities.
================================================================================
GE PREMIER GROWTH EQUITY FUND
TOP TEN LARGEST HOLDINGS AT MARCH 31, 1997
================================================================================
SPDR Trust 3.96%
- --------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 3.46%
- --------------------------------------------------------------------------------
Dover Corp. 3.44%
- --------------------------------------------------------------------------------
First Data Corp. 3.33%
- --------------------------------------------------------------------------------
Schlumberger Ltd. 3.24%
- --------------------------------------------------------------------------------
Molex Inc. (Class A) 3.21%
- --------------------------------------------------------------------------------
Reuters Holdings PLC ADR (Class B) 3.21%
- --------------------------------------------------------------------------------
Automatic Data Processing Inc. 3.19%
- --------------------------------------------------------------------------------
Lincare Holdings Inc. 3.03%
- --------------------------------------------------------------------------------
CUC International Inc. 2.95%
================================================================================
* Lipper Performance Comparison
Growth Peer Group
Based on total returns for the period ending March 31, 1997
Three
Months
Number of Funds
in peer group: 843
Peer group average
total return: -1.3%
Lipper categories
in peer group: Growth
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
11
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE PREMIER GROWTH EQUITY FUND
Number
of Shares Value
- --------------------------------------------------------------------------------
Common Stock -- 88.4%
- --------------------------------------------------------------------------------
Basic Materials -- 2.6%
Airgas Inc. 12,000 $ 202,500
Capital Goods -- 6.7%
Dover Corp. 5,000 262,500
Molex Inc. (Class A) 7,000 245,000
507,500
[GRAPHIC OF MONEY]
Consumer - Cyclical -- 24.2%
Automatic Data Processing Inc. 5,800 242,875
Carnival Corp. (Class A) 6,000 222,000
Catalina Marketing Corp. 5,500 223,437(a)
Circus Circus Enterprises Inc. 7,000 182,000(a)
Comcast UK Cable Partners Ltd.
(Class A) 11,000 122,375(a)
CUC International Inc. 10,000 225,000(a)
Harman International
Industries Inc. 5,200 174,200
Interpublic Group Cos. Inc. 5,000 263,750
Tele-Communications Inc.
Liberty Media Group (Series A) 9,600 191,400(a)
1,847,037
Energy -- 3.2%
Schlumberger Ltd. 2,300 246,675
[GRAPHIC OF DOLLAR SIGN]
Financial -- 7.2%
Citicorp 2,000 216,500
Travelers Group Inc. 4,000 191,500
Wells Fargo & Co. 500 142,063
550,063
[GRAPHIC]
Healthcare -- 12.6%
Cardinal Health Inc. 4,000 217,500
Columbia/HCA Healthcare Corp. 4,000 134,500
Johnson & Johnson 4,200 222,075
Lincare Holdings Inc. 5,600 231,000(a)
Scherer (R.P.) Corp. Delaware 3,000 155,625(a)
960,700
Miscellaneous -- 4.0%
SPDR Trust 4,000 301,875
Retail Trade -- 5.2%
Arbor Drugs Inc. 10,500 183,750
Home Depot Inc. 4,000 214,000
397,750
[GRAPHIC OF DISKETTES]
Software & Services -- 9.2%
First Data Corp. 7,500 254,062
Microsoft Corp. 2,200 201,713(a)
Reuters Holdings PLC ADR
(Class B) 4,200 244,387
700,162
Number
of Shares Value
- --------------------------------------------------------------------------------
[GRAPHIC OF COMPUTER]
Technology -- 7.7%
Applied Materials Inc. 4,500 $ 208,687(a)
Cisco Systems Inc. 3,800 182,875(a)
Intel Corp. 1,400 194,775
586,337
Utilities -- 5.8%
Airtouch Communications Inc. 9,000 207,000(a)
NTL Inc. 8,500 179,563(a)
Vanguard Cellular Systems Inc.
(Class A) 5,000 55,000(a)
441,563
Total Investments in Securities
(Cost $7,154,782) 6,742,162
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 12.6%
- --------------------------------------------------------------------------------
U.S. Government Agencies -- 9.2%
Federal Home Loan Bank
5.41% 04/17/97 $200,000 199,519(d)
Federal National Mortgage Assoc.
5.46% 04/10/97 500,000 499,318(d)
698,837
Repurchase Agreement -- 3.4%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $260,000) 260,000 260,000
(dated 03/31/97, proceeds $260,045,
collateralized by $268,436 United
States Treasury Note, 9.875%, 11/15/15)
Total Short Term Investments
(Cost $958,837) 958,837
Other Assets and Liabilities, net (1.0%) (76,404)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $7,624,595
================================================================================
[GRAPHIC OF DISKETTES]
Icons represent the top five industry weightings in the
GE Premier Growth Equity Fund at March 31, 1997.
- ----------
See Notes to Schedule of Investments and Financial Statements
12
<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 $24 billion. His
responsibilities include overseeing the portfolio management team of the GE U.S.
Equity Fund listed on page 66. 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 six months ended March 31, 1997?
A. The S&P 500 returned 11.2% for the six months ended March 31, 1997. Our
Lipper peer group of 648 Growth and Income Funds had an average return of
8.9% for the same period. Refer to the following page to see how your class
of shares in the GE U.S. Equity Fund performed compared to these
benchmarks.
Q. What were the primary performance drivers?
A. The Fund lagged the S&P 500 for the six months ended March 31, 1997, but
outperformed the average of its Lipper peer Growth & Income Funds. For the
past three years over seventy-five percent of general equity mutual funds
have underperformed the S&P 500 largely because of the narrowness of market
leadership and the relative weakness of smaller capitalization stocks. Our
strong performance relative to peers resulted from an overweighting in
Financial, Energy and selected Capital Goods and Consumer-Stable stocks,
and an underweighting in Utility and Consumer-Cyclical sectors. In the
Financial sector, Travelers Group, Dean Witter Discover & Co., and Citicorp
were leaders while Schlumberger was a particularly strong performer in the
Energy sector. Textron and United Technologies turned in good performances
in the Capital Goods sector while Bristol-Myers Squibb and Smithkline
Beecham were leading Healthcare stocks in the Consumer-Stable sector. In
the Technology sector our concern with valuations has kept us underweighted
in some strong performers such as Microsoft, and we were hurt by our
position in Reuters Holdings which underperformed even though fundamentals
remain strong.
Q. What has your investment strategy been?
A. Our strategy is to add value through stock selection by attempting to
identify companies with shareholder oriented managements, strong financials
and attractive valuations. We concentrate our efforts on fundamental
company research and do not try to time the stock market or rotate from one
"hot" sector to another. I lead a team of four portfolio managers, two of
whom focus principally on growth stocks and two who have a more
value-oriented approach. This results in a broadly diversified portfolio
that we believe can do well versus the market, regardless of the economic
environment. The portfolio managers, supported by a team of industry
analysts, focus on finding stocks that they believe will outperform the
market over the next three to five years.
Q. What industries have you liked?
A. As mentioned above, we are overweighted in the Financial, Capital Goods and
Energy sectors. These are the areas in which our managers are finding the
best values on a stock-by-stock basis. Within the Financial sector we
continue to find value in the insurance industry as well as with selected
financial service companies and money center banks. In Capital Goods we are
overweighted in a diverse group of companies that still look attractive
versus the market. Within the Energy sector, our principal thrust is in the
oil services industry which we believe is particularly attractive because
of strong demand and little excess capacity.
Q. What is the outlook for the Fund?
A. With most valuation measures at or near record levels, we believe the
upside is limited for the stock market in 1997. We also expect volatility
to increase and stock selection, as opposed to sector rotation, to be the
key to good performance. Given our emphasis on high quality companies with
attractive valuations, we believe the portfolio is well positioned for good
relative performance in the coming year.
[PHOTO OF GENE BOLTON]
13
<PAGE>
GE U.S. EQUITY FUND
PORTFOLIO COMPOSITION
RETAIL 4.3%
CONSUMER 17.1%
FINANCIAL SERVICES 17.8%
HEALTHCARE 11.4%
ENERGY & BASIC MATERIALS 14.8%
CAPITAL GOODS 11.4%
TECHNOLOGY 10.4%
UTILITIES 7.1%
CASH & OTHER 4.2%
TRANSPORTATION 1.5%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 10.63% 17.05% 19.91% 16.49% 1/1/94
- --------------------------------------------------------------------------------
Class A* 5.37% 11.49% 17.99% 14.76% 1/1/94
- --------------------------------------------------------------------------------
Class B 10.31% 16.56% 19.21% 16.21% 12/22/93
- --------------------------------------------------------------------------------
Class B* 6.32% 12.56% 18.98% 15.97% 12/22/93
- --------------------------------------------------------------------------------
Class C 10.75% 17.49% 20.15% 16.28% 2/22/93
- --------------------------------------------------------------------------------
Class D 10.91% 17.71% 20.43% 17.09% 11/29/93
- --------------------------------------------------------------------------------
S&P 500 11.23% 19.81% 22.30%
================================================================================
* With Load
<PAGE>
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, 1997
================================================================================
Intel Corp. 2.18%
- --------------------------------------------------------------------------------
Exxon Corp. 2.08%
- --------------------------------------------------------------------------------
Travelers Group Inc. 1.94%
- --------------------------------------------------------------------------------
Citicorp 1.78%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.75%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1.71%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 1.69%
- --------------------------------------------------------------------------------
Philip Morris Cos. Inc. 1.53%
- --------------------------------------------------------------------------------
American International Group Inc. 1.50%
- --------------------------------------------------------------------------------
Pepsico Inc. 1.48%
================================================================================
* Lipper Performance Comparison
Growth and Income Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 648 594 383
Peer group average
total return: 8.9% 15.8% 18.2%
Lipper categories
in peer group: Growth & Income, S&P 500 Index
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
14
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE U.S. EQUITY FUND
Number
of Shares Value
- --------------------------------------------------------------------------------
Common Stock -- 95.1%
- --------------------------------------------------------------------------------
Basic Materials -- 4.2%
Air Products & Chemicals Inc. 11,509 $ 781,173
Airgas Inc. 17,682 298,384(a)
Barrick Gold Corp. 12,437 295,379
Du Pont de Nemours (E.I.) & Co. 36,712 3,891,472
Eastman Chemical Co. 4,976 267,460
FMC Corp. 5,285 323,706
Freeport McMoran Copper &
Gold Inc. (Class A) 12,884 378,468
Hoechst AG 3,109 125,907
IMC Global Inc. 9,333 337,155
Mead Corp. 13,724 727,372
Morton International Inc. 38,657 1,633,258
Newmont Mining Corp. 15,335 594,231
Potash Corp. of Saskatchewan Inc 688 52,288
PPG Industries Inc. 2,382 128,628
Rayonier Inc. 11,307 421,186
Santa Fe Pacific Gold Corp. 29,718 490,347
Weyerhaeuser Co. 23,695 1,057,389
11,803,803
[GRAPHIC OF CAPITAL GOODS]
Capital Goods -- 11.4%
AlliedSignal Inc. 66,860 4,763,775
AMP Inc. 18,435 633,703
Armstrong World Industries Inc. 8,704 563,584
Avery Dennison Corp. 6,631 255,294
Boeing Co. 4,175 411,759
Browning-Ferris Industries Inc. 20,665 596,702
Corning Inc. 7,368 326,955
Deere & Co. 35,573 1,547,425
Dover Corp. 67,125 3,524,062
Emerson Electric Co. 81,502 3,667,590
General Signal Corp. 10,070 393,989
Hubbell Inc. (Class B) 71,129 3,005,200
Lockheed Martin Corp. 12,815 1,076,460
Mannesmann AG 417 159,500
Martin Marietta Materials Inc. 16,947 436,385
Masco Corp. 4,146 148,220
McDonnell Douglas Corp. 9,578 584,258
Minnesota Mining &
Manufacturing 7,501 633,835
Molex Inc. (Class A) 12,034 421,190
National Service Industries Inc. 8,291 324,385
Newport News Shipbuilding Inc. 2,986 43,297
Parker Hannifin Corp. 3,439 147,017
Sherwin Williams Co. 14,372 388,044
Textron Inc. 35,563 3,734,115
Timken Co. 8,291 443,569
Tyco International Ltd. 5,300 291,500
Ucar International Inc. 4,347 172,250(a)
United Technologies Corp. 32,215 2,424,179
Waste Management International
PLC ADR 7,933 59,498(a)
Wheelabrator Technologies Inc. 8,291 108,819
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
WMX Technologies Inc. 30,027 $ 919,577
32,206,136
Consumer - Cyclical -- 7.3%
ACNielson Corp. 17,194 257,910(a)
Automatic Data Processing Inc. 42,489 1,779,227
Carnival Corp. (Class A) 11,298 418,026
Catalina Marketing Corp. 5,895 239,484(a)
Circus Circus Enterprises Inc. 29,445 765,570(a)
Comcast Corp. (Class A) 46,698 788,029
Comcast UK Cable Partners Ltd.
(Class A) 12,771 142,077(a)
CUC International Inc. 9,578 215,505(a)
Disney (Walt) Co. 38,839 2,835,247
Donnelley (R.R.) & Sons Co. 704 24,552
Dun & Bradstreet Corp. 11,391 289,047
Eastman Kodak Co. 25,796 1,957,271
Federal-Mogul Corp. 5,158 127,016
Ford Motor Co. 33,063 1,037,352
Gannett Inc. 23,720 2,036,955
General Motors Corp. 14,187 785,605
Goodyear Tire & Rubber Co. 6,877 359,323
Harman International
Industries Inc. 6,877 230,380
Interpublic Group Cos. Inc. 26,986 1,423,511
ITT Industries Inc. 4,563 102,097
Knight Ridder Inc. 6,385 254,602
McDonalds Corp. 30,042 1,419,485
Metromedia International
Group Inc. 6,621 57,520(a)
Readers Digest Assoc. Inc. (Class A) 1,719 49,421
Scholastic Corp. 9,904 279,788(a)
Tele-Communications Inc.
(Series A) 51,443 617,316(a)
Tele-Communications Inc. Liberty
Media Group (Series A) 49,525 987,405(a)
Time Warner Inc. 13,179 569,992
Viad Corp. 10,561 168,976
Xerox Corp. 7,150 406,656
20,625,345
[GRAPHIC OF CONSUMER ICON]
Consumer - Stable -- 9.8%
Anheuser Busch Cos. Inc. 71,543 3,013,749
Archer-Daniels Midland Co. 24,847 444,140
Avon Products Inc. 17,094 897,435
Coca Cola Co. 2,436 136,112
Colgate Palmolive Co. 15,075 1,501,847
Conagra Inc. 16,382 888,723
CPC International Inc. 16,176 1,326,432
General Mills Inc. 11,509 714,997
Gillette Co. 5,894 428,052
International Flavours 8,115 355,031
Kellogg Co. 4,146 278,818
Kimberly Clark Corp. 30,794 3,060,154
Nestle S.A. (Regd.) 441 516,390
Pepsico Inc. 128,021 4,176,685
Philip Morris Cos. Inc. 37,623 4,293,725(h)
Procter & Gamble Co. 29,074 3,343,510
Ralston Purina Co. 9,058 707,656
Sara Lee Corp. 22,350 905,175
Sysco Corp. 7,368 251,433
Unilever N.V. 1,474 274,532
27,514,596
- ----------
See Notes to Schedule of Investments and Financial Statements
15
<PAGE>
GE U.S. EQUITY FUND March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
[GRAPHIC OF GAS PUMP]
Energy -- 10.5%
Amoco Corp. 33,348 $ 2,888,770
Anadarko Petroleum Co. 9,618 539,810
Atlantic Richfield Co. 4,534 612,090
Baker Hughes Inc. 25,960 996,215
British Petroleum PLC ADR 2,511 344,635
Burlington Resources Inc. 29,324 1,253,601
Diamond Offshore Drilling Inc. 2,210 151,385(a)
Elf Aquitaine S.A. 3,807 187,495
Exxon Corp. 54,405 5,862,139
Halliburton Co. 7,673 519,846
Louisiana Land & Exploration Co. 3,438 162,875
Mobil Corp. 16,367 2,137,939
Nabors Industries Inc. 17,796 347,022(a)
Royal Dutch Petroleum Co. ADR 23,116 4,045,300
Schlumberger Ltd. 38,161 4,092,767
Texaco Inc. 22,296 2,441,412
Tosco Corp. 12,789 364,487
Total S.A. (Class B) 11,066 468,922
Union Pacific Resources
Group Inc. 19,682 526,493
Unocal Corp. 37,297 1,421,948
Valero Energy Corp. 2,088 75,951
29,441,102
[GRAPHIC OF DOLLAR SIGN]
Financial -- 11.8%
American Express Co. 43,594 2,610,191
Bank of Boston Corp. 16,201 1,085,467
Bank of New York Inc. 19,500 716,625
BankAmerica Corp. 4,740 477,555
Bankers Trust New York Corp. 3,142 257,644
Barnett Banks Inc. 2,947 137,036
Beneficial Corp. 10,314 666,542
Chase Manhattan Corp. 12,772 1,195,778
Citicorp 46,378 5,020,418
CMAC Investment Corp. 8,395 280,183
Countrywide Credit Industries 15,674 387,932
Dean Witter Discover & Co. 34,384 1,199,142
Echelon International Corp. 1 18(a)
Edwards A.G. Inc. 7,461 229,426
Federal National Mortgage Assoc. 136,410 4,927,811
ING Groep N.V. 4,431 174,594
Manufactured Home
Communities Inc. 5,008 109,550
Mellon Bank Corp. 10,989 799,450
Merrill Lynch & Co. Inc. 3,733 320,571
Morgan (J.P.) & Co. Inc. 16,629 1,633,799
Morgan Stanley Group Inc. 12,923 759,226
Norwest Corp. 982 45,418
Salomon Inc. 4,769 237,854
Standard Federal Bancorporation 5,388 312,504
State Street Boston Corp. 11,548 801,143
T. Rowe Price & Associates 4,667 173,262
Travelers Group Inc. 114,119 5,463,447
Trizec Hahn Corp. 6,631 148,369
United States Bancorp 8,596 459,886
Wells Fargo & Co. 9,063 2,575,025
33,205,866
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
[GRAPHIC OF HEALTHCARE]
Healthcare -- 11.4%
Abbott Laboratories 65,659 $ 3,685,111
Allergan Inc. 26,033 758,211
American Home Products Corp. 52,801 3,168,060
Amgen Inc. 4,390 245,291(a)
Arrow International Inc. 2,648 80,102
Baxter International Inc. 13,803 595,254
Bristol-Myers Squibb Co. 81,364 4,800,476
Cardinal Health Inc. 8,355 454,303
Columbia/HCA Healthcare Corp. 6,385 214,696
Dentsply International Inc. 3,964 198,200
Eli Lilly & Co. 19,554 1,608,316
Forest Labs Inc. 1,596 60,050(a)
Johnson & Johnson 68,139 3,602,850
Lincare Holdings Inc. 6,631 273,529(a)
Living Centers of America Inc. 9,579 330,476(a)
Merck & Co. Inc. 48,137 4,055,542
Pfizer Inc. 32,035 2,694,944
Scherer (R.P.) Corp. Delaware 15,266 791,924(a)
Schering Plough Corp. 21,257 1,546,447
Smithkline Beecham PLC ADR 34,089 2,386,230
St. Jude Medical Inc. 2,088 69,687(a)
Watson Pharmaceuticals Inc. 15,964 570,713(a)
32,190,412
Insurance -- 5.9%
American International Group Inc. 35,872 4,210,476
Chubb Corp. 8,709 469,197
Equitable Cos. Inc. (Series B) 2,948 80,333
Everest Reinsurance Holdings 3,144 92,355
General Reinsurance Corp. 11,744 1,855,552
ITT Hartford Group Inc. 7,186 518,290
Lincoln National Corp. 24,182 1,293,737
Loews Corp. 30,143 2,678,959
Marsh & McLennan Cos. Inc. 12,610 1,428,083
Provident Cos. Inc. 22,531 1,233,572
Providian Corp. 7,520 402,320
Reliastar Financial Corp. 2,701 159,697
TIG Holdings Inc. 54,741 1,738,027
UNUM Corp. 6,317 461,141
16,621,739
Retail Trade -- 4.3%
American Stores Co. 12,437 553,446
Arbor Drugs Inc. 28,647 501,323
Costco Cos. Inc. 21,613 597,059(a)
Dayton Hudson Corp. 17,939 748,953
Federated Department Stores Inc. 23,077 758,656(a)
Home Depot Inc. 29,089 1,556,261
K Mart Corp. 4,912 59,558(a)
Lowes Cos. Inc. 12,240 457,470
May Department Stores Co. 3,438 156,429
Office Max Inc. 6,081 79,053(a)
Penney J.C. Inc. 6,033 287,322
Sears Roebuck & Co. 43,523 2,187,031
Toys OR Us Inc. 42,185 1,181,180(a)
Wal Mart Stores Inc. 108,025 3,011,197
12,134,938
- ----------
See Notes to Schedule of Investments and Financial Statements
16
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
Technology - Computer Software & Services -- 3.6%
Computer Associates
International Inc. 21,430 $ 833,091
Electronic Data Systems Corp. 11,169 450,948
Equifax Inc. 90,410 2,463,673
First Data Corp. 101,014 3,421,849
Informix Corp. 4,146 62,708(a)
Intuit Inc. 4,878 113,414(a)
Microsoft Corp. 6,621 607,063(a)
Reuters Holdings PLC ADR
(Class B) 35,057 2,039,879
9,992,625
Technology - Electronics & Equipment -- 6.4%
3Com Corp. 4,175 136,731(a)
Applied Materials Inc. 12,958 600,927(a)
Cisco Systems Inc. 15,472 744,590(a)
DSC Communications Corp. 5,404 113,146(a)
Hewlett Packard Co. 68,508 3,648,051
Intel Corp. 44,194 6,148,490
International Business Machines 28,573 3,925,216
Lucent Technologies Inc. 6,528 344,352
Motorola Inc. 76 4,589
NCR Corp. 982 34,616(a)
Northern Telecom Ltd. 5,894 385,320
Perkin Elmer Corp. 737 47,444
Pitney Bowes Inc. 10,907 640,786
Rockwell International Corp. 2,999 194,560
Storage Technology Corp. 4,054 159,120(a)
Varian Associates Inc. 15,154 810,739
17,938,677
Transportation -- 1.4%
Burlington Northern Santa Fe 14,540 1,075,960
Canadian Pacific Ltd. 31,944 766,656
Continental Airlines Inc.
(Class B) 16,848 528,606(a)
Delta Air Lines Inc. 4,146 348,782
Pittston Brinks Group 8,351 210,863
Union Pacific Corp. 19,741 1,120,302
4,051,169
Utilities -- 7.1%
360 Communications Co. 3,193 55,079(a)
Airtouch Communications Inc. 103,339 2,376,797(a)
Allegheny Power Systems Inc. 6,533 193,540
American Electric Power Inc. 17,192 709,170
American Telephone &
Telegraph Corp. 38,005 1,320,674
Bellsouth Corp. 30,882 1,304,764
CMS Energy Corp. 3,438 113,024
Duke Power Co. 21,367 942,819
El Paso Natural Gas Co. 5,894 333,748
Florida Progress Corp. 16,210 492,379
FPL Group Inc. 14,431 636,768
GTE Corp. 78,608 3,665,098
Illinova Corp. 6,385 146,057
MCI Communications Corp. 30,856 1,099,245
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
NTL Inc. 57,441 $ 1,213,441(a)
NYNEX Corp. 15,826 722,061
Pacificorp 31,928 682,461
Pinnacle West Capital Corp. 11,052 332,942
Public Service Co. Colorado 9,122 353,478
SBC Communications Inc. 29,924 1,574,750
Scana Corp. 4,416 112,056
Sonat Inc. 13,685 745,832
Southern Co. 15,060 318,143
Sprint Corp. 4,912 223,496
Vanguard Cellular Systems Inc.
(Class A) 28,981 318,791(a)
19,986,613
Total Common Stock
(Cost $218,833,523) 267,713,021
Principal
Amount Value
- --------------------------------------------------------------------------------
Convertible Bonds -- 0.1%
- --------------------------------------------------------------------------------
Berkshire Hathaway Inc. Delaware
1.00% 12/02/01 $116,000 117,740
Continental Airlines Inc.
6.75% 04/15/06 15,000 18,450
6.75% 04/15/06 172,000 206,400(a,b)
Total Convertible Bonds
(Cost $297,830) 342,590
Number
of Shares Value
- --------------------------------------------------------------------------------
Preferred Stock -- 0.6%
- --------------------------------------------------------------------------------
Airtouch Communications Inc.
(Class B), 6.00% 4,534 116,184
Kmart Financing, 7.75% 982 52,537
Microsoft Corp. (Series A), $2.20 14,441 1,171,526
Occidental Petroleum Corp., $3.88 5,310 307,980(b)
Total Preferred Stock
(Cost $1,630,789) 1,648,227
Total Investments in Securities
(Cost $220,762,142) 269,703,838
- ----------
See Notes to Schedule of Investments and Financial Statements
17
<PAGE>
GE U.S. Equity Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 4.2%
- --------------------------------------------------------------------------------
Time Deposit -- 0.2%
State Street Cayman Islands $485,000 $ 485,000
6.50% 04/01/97
Repurchase Agreement -- 4.0%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $11,350,000) 11,350,000 11,350,000
(dated 03/31/97, proceeds $11,351,970,
collateralized by $11,582,023 United
States Treasury Note, 9.875%, 11/15/15)
Total Short Term Investments
(Cost $11,835,000) 11,835,000
Other Assets and Liabilities, net 0.0% (99,240)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $281,439,598
================================================================================
Other Information
- --------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long Futures Contracts open at March
31, 1997:
Number
Expiration of Underlying Unrealized
Description Date Contracts Face Value Loss
- --------------------------------------------------------------------------------
S&P 500 June 1997 19 $ 7,201,000 $ 414,750
[GRAPHIC OF CAPITAL GOODS]
Icons represent the top five industry weightings in the
GE U.S. Equity Fund at March 31, 1997.
- ----------
See Notes to Schedule of Investments and Financial Statements
18
<PAGE>
GE STRATEGIC INVESTMENT FUND
Q&A
David Carlson and Bob MacDougall share portfolio management responsibility for
the GE Strategic Investment Fund. Dave Carlson manages the equity portion and
Bob MacDougall manages the fixed income portion of the fund. Please refer to
page 10 for Dave's biographical details and page 31for Bob's biographical
details.
Q. How did GE Strategic Investment Fund's Lipper and industry benchmarks
perform for the six months ended March 31, 1997?
A. Our 322 peer Balanced funds as tracked by Lipper Analytical Services, had
an average return of 5.4% for the six months ended March 31, 1997. Looking
at the various asset classes, U.S. stocks (S&P 500) returned 11.2%,
international stocks MSCIEAFE had a 0.0% return, and bonds (LB Agg.)
returned 2.4% for the same period. Refer to the following page to see how
your class of shares in the GE Strategic Investment Fund compared to these
benchmarks.
Q. What is the current breakdown among U.S. stocks, international stocks,
bonds, and cash, and has this changed in the last six months?
A. Currently, U.S. stocks comprise 40% of the total Fund, international stocks
18%, bonds 31% and cash 11%. The only significant change over the last six
months is the lowering of U.S. stocks (from 45%) and the increase in
international stocks (from 14%). We continue to believe that the U.S.
market is expensive relative to the international markets, so U.S. stocks
are at a lower than normal level. The cash weighting is higher than normal
due in part to the full valuation of the stock market and the near term
risk that the Federal Reserve will continue to raise interest rates.
Q. You have made few changes in asset mix over the last two years. Should
investors expect fairly stable levels of asset mix or do you envision
greater changes in the future?
A. We have a rigorous analytical approach to asset allocation. The asset
allocation committee that sets the policy for the GE Pension Trust also
sets the policy for the GE Strategic Investment Fund as well. They employ a
variety of quantitative models that compare stocks versus bonds, U.S.
stocks versus international stocks, and all long duration assets versus
cash. Essentially, they assess the risk/reward offered in each market and
recommend an appropriate weight for each asset class. Volatility has been
fairly low in recent years so the changes have been few. If volatility
increases, the weightings will change more significantly and more
frequently.
Q. What is the outlook for the GE Strategic Investment Fund?
A. We would characterize the positioning of the GE Strategic Investment Fund
as somewhat defensive. Equities are lower than normal and cash is higher
than normal. At the time this is written, we are expecting at least one
more upward move in interest rates by the Federal Reserve. Stocks and bonds
do not typically do well when the Fed is tightening. Within each asset
class the focus remains the same; find high quality instruments at
attractive valuation levels. Should the market sell off in the coming
months, we believe we are in excellent position to take advantage of the
volatility.
[PHOTO OF DAVID CARLSON AND BOB MACDOUGALL]
19
<PAGE>
GE STRATEGIC INVESTMENT FUND
PORTFOLIO COMPOSITION
DOMESTIC EQUITY 40.4%
FOREIGN EQUITY 18.4%
BONDS AND NOTES 30.6%
CASH & OTHER 10.6%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 5.52% 10.75% 13.96% 11.34% 1/1/94
- --------------------------------------------------------------------------------
Class A* 0.51% 5.49% 12.13% 9.69% 1/1/94
- --------------------------------------------------------------------------------
Class B 5.31% 10.20% 13.27% 10.87% 12/22/93
- --------------------------------------------------------------------------------
Class B* 1.31% 6.20% 13.01% 10.61% 12/22/93
- --------------------------------------------------------------------------------
Class C 5.64% 10.98% 14.08% 11.39% 2/22/93
- --------------------------------------------------------------------------------
Class D 5.79% 11.35% 14.40% 11.97% 11/29/93
- --------------------------------------------------------------------------------
LB Agg. 2.43% 4.91% 6.86%
- --------------------------------------------------------------------------------
S&P 500 11.23% 19.81% 22.30%
================================================================================
* With Load
<PAGE>
INVESTMENT PROFILE
A mutual fund designed for investors who seek to maximize total return through
asset allocation designed to achieve 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, 1997
================================================================================
Gov't Nat'l Mortgage Assoc. 8.5% 10/15/17 2.46%
- --------------------------------------------------------------------------------
U.S. Treasury Note 6.5% 10/15/06 1.47%
- --------------------------------------------------------------------------------
U.S. Treasury Bond 6.5% 11/15/26 1.42%
- --------------------------------------------------------------------------------
First Data Corp. 1.34%
- --------------------------------------------------------------------------------
Travelers Group Inc. 1.26%
- --------------------------------------------------------------------------------
U.S. Treasury Note 5.875% 2/15/00 1.25%
- --------------------------------------------------------------------------------
Dover Corp. 1.22%
- --------------------------------------------------------------------------------
Federal National Mtg. Assn. 1.21%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 1.15%
- --------------------------------------------------------------------------------
Schlumberger Ltd. 1.08%
================================================================================
* Lipper Performance Comparison
Balanced Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 322 294 177
Peer group average
total return: 5.4% 10.7% 12.8%
Lipper categories
in peer group: Balanced
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
20
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE STRATEGIC INVESTMENT FUND
Number
of Shares Value
- --------------------------------------------------------------------------------
Common Stock -- 58.2%
- --------------------------------------------------------------------------------
Basic Materials -- 1.9%
Air Products & Chemicals Inc. 5,000 $ 339,375
Airgas Inc. 10,000 168,750(a)
Banpu Co. 1,200 17,569
BASF AG 3,255 122,940
Carter Holt Harvey Ltd. 9,061 19,198
Iscor Ltd. 213,917 174,251
Morton International Inc. 15,000 633,750
PT Tambang Timah GDR 2,707 40,605(b)
SGL Carbon 2,061 282,955
Tokyo Steel Manufacturing 5,800 57,217
1,856,610
[GRAPHIC OF CAPITAL GOODS]
Capital Goods -- 7.9%
ABB AG 255 306,567
Alcatel Alsthom 2,325 280,764
Alleghany Corp. Delaware 1,040 216,923
AlliedSignal Inc. 16,000 1,140,000
AMP Inc. 8,900 305,938
Astra International 62,500 203,040
Bombardier Inc. 5,180 93,536
Browning-Ferris Industries Inc. 5,000 144,375
Denso Corp. 2,000 39,298
Dover Corp. 23,000 1,207,500
Emerson Electric Co. 5,000 225,000
Grupo Carso S.A. de C.V. ADR 8,314 99,560
Hubbell Inc. (Class B) 18,225 770,006
Lyonnaise Des Eaux S.A. 1,326 135,800
Mannesmann AG 647 247,474
Metra AB 188 10,989
Molex Inc. (Class A) 9,000 315,000
NEC Corp. 14,000 158,486
PT Mulia Industrindo 73,000 47,126
Siam Cement Co. Ltd. 600 15,627
Siebe 19,651 331,720
Siemens AG 4,155 223,942
Tata Engineering &
Locomotive Co. Ltd. GDR 1,311 16,388(b)
Tata Engineering &
Locomotive Co. Ltd. GDR 1,280 16,000
Tyco International Ltd. 3,800 209,000
VA Technologie AG 1,811 266,949
Valeo 3,529 237,718
Valmet Corp. 4,577 81,542(a)
Waste Management International
PLC ADR 3,265 24,488(a)
WMX Technologies Inc. 12,500 382,812
7,753,568
[GRAPHIC OF MONEY]
Consumer - Cyclical -- 7.3%
Airtours PLC 18,548 302,114
Autoliv AB 6,556 283,171
Automatic Data Processing Inc. 15,000 628,125
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Canon Inc. 15,000 $ 321,420
Carnival Corp. (Class A) 7,000 259,000
Catalina Marketing Corp. 3,000 121,875(a)
Circus Circus Enterprises Inc. 8,000 208,000(a)
Comcast Corp. (Class A) 18,000 303,750
Comcast UK Cable Partners Ltd.
(Class A) 7,000 77,875(a)
CUC International Inc. 4,500 101,250(a)
Disney (Walt) Co. 9,000 657,000
Electrolux AB (Series B) 2,216 141,146
EMI Group 1,660 30,371
Gannett Inc. 3,800 326,325
Granada Group 17,205 260,141
Grupo Television S.A. de C.V. ADR 740 18,407(a)
Gucci Group N.V. ADR 355 25,604
Harman International
Industries Inc. 4,000 134,000
Honda Motor Co. 8,000 238,700
Hong Kong & Shang Hot 17,000 26,875
Industrie Natuzzi Spa 1,058 25,260
Interpublic Group Cos. Inc. 7,000 369,250
Johnson Electric Holdings 15,500 39,407
Kinnevik Investment (Series B) 2,644 74,029
McDonalds Corp. 6,500 307,125
Michelin CGDE 1,865 111,113
Polygram N.V. 4,076 204,941
Promise Co. 1,100 46,074
Reed International 12,835 236,090
Saatchi & Saatchi 64,392 128,191(a)
Scholastic Corp. 2,219 62,687
Sega Enterprises 600 15,040
Sony Corp. 3,700 258,794
Suzuki Motor Corp. 12,000 116,439
Tele-Communications Inc.
(Class A) 20,000 240,000(a)
Tele-Communications Inc. Liberty
Media Group (Series A) 10,000 199,375(a)
Television Broadcasts Ltd. ADR 25,000 101,630
Time Warner Inc. 3,800 164,350
7,164,944
Consumer - Stable -- 4.7%
Anheuser Busch Cos. Inc. 7,600 320,150
Avon Products Inc. 6,400 336,000
Coca Cola Amatil Ltd. 7,643 72,673
Coca Cola Co. 1,500 83,813
Colgate Palmolive Co. 1,200 119,550
Gehe AG (WT) 3,039 208,612
Gillette Co. 4,300 312,288
Gruma S.A. de C.V. 676 3,244
International Flavours 2,200 96,250
Kimberly Clark Corp. 9,000 894,375
Nestle S.A. (Regd.) 161 188,523
Nutricia Verenigde Bedrijven 310 47,934
Panamerican Beverages Inc.
(Class A) 1,695 90,894
Pepsico Inc. 19,000 619,875
Philip Morris Cos. Inc. 9,000 1,027,125
Procter & Gamble Co. 1,200 138,000
San Miguel Corp. 35,100 121,815
4,681,121
- ----------
See Notes to Schedule of Investments and Financial Statements
21
<PAGE>
GE Strategic Investment Fund March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
[GRAPHIC OF GAS PUMP]
Energy -- 5.5%
Amoco Corp. 1,700 $ 147,263
Anadarko Petroleum Co. 4,300 241,338
Atlantic Richfield Co. 2,300 310,500
Coflexip ADR 3,971 122,108(a)
ENI Spa (Regd.) 10,925 55,534
Exxon Corp. 5,500 592,625
OMV AG 725 85,820
Repsol S.A. 5,292 221,007
Royal Dutch Petroleum Co. ADR 5,000 875,000
Schlumberger Ltd. 10,000 1,072,500
Texaco Inc. 4,600 503,700
Total S.A. (Class B) 4,710 408,460
Union Pacific Resources
Group Inc. 5,928 158,574
Unocal Corp. 13,000 495,625
Veba AG 3,079 174,347
5,464,401
[GRAPHIC OF DOLLAR SIGN]
Financial -- 7.4%
Alpha Credit Bank 1,588 116,570
Alpha Credit Bank (Rts.) 895 7,137
American Express Co. 6,000 359,250
AMMB Holdings Berhad 6,800 56,522
AMMB Holdings Berhad (Rts.) 13,600 1,537
Banco Comercial Portugues ADR 12,628 187,084
Banco Popular (Regd.) 214 38,506
Banco Santander S.A. 885 61,078
Cheung Kong Holdings 16,000 140,927
China Resources Development 8,000 17,242
Citicorp 8,000 866,000
Countrywide Credit Industries 10,000 247,500
DBS Land 14,000 47,878
Den Danske Bank 2,633 237,371
Deutsche Bank AG 557 31,356
Dresdner Bank AG 1,835 65,237
Federal National Mortgage Assoc. 33,000 1,192,125
Grupo Financiero Bancomer
S.A. ADR (Series C) 5,180 35,620(a,b)
HSBC Holdings PLC 12,899 299,640
ING Groep N.V. 6,147 242,209
Lai Sun Development 22,000 25,553
Lai Sun Hotels International Ltd. 4,418 0(a)
Merita Ltd. 9,186 31,260
Metro Bank & Trust Co. 3,900 101,328
Morgan (J.P.) & Co. Inc. 3,000 294,750
New World Development Corp. 11,775 63,520
State Street Boston Corp. 8,000 555,000
Sumitomo Realty & Development 5,000 33,638
Thai Farmers Bank 6,500 42,323
Travelers Group Inc. 26,000 1,244,750
Wells Fargo & Co. 2,400 681,900
7,324,811
[GRAPHIC OF HEALTHCARE]
Healthcare -- 8.4%
Abbott Laboratories 17,000 954,125
American Home Products Corp. 10,000 600,000
Arrow International Inc. 2,500 75,625
Bristol-Myers Squibb Co. 12,000 708,000
<PAGE>
Number
of Shares Value
- --------------------------------------------------------------------------------
Cardinal Health Inc. 5,250 $ 285,469
Columbia/HCA Healthcare Corp. 4,500 151,313
Dentsply International Inc. 2,000 100,000
Eli Lilly & Co. 5,200 427,700
Faulding (F.H.) & Co. 7,181 42,221
Fresenius Medical Care Inc.
AG ADR 855 81,963(a)
Johnson & Johnson 19,000 1,004,625
Lincare Holdings Inc. 4,000 165,000(a)
Living Centers of America Inc. 3,000 103,500(a)
Medeva 72,269 363,842
Merck & Co. Inc. 10,000 842,500
Novartis AG 334 414,541(a)
Pfizer Inc. 10,500 883,312
Roche Holdings AG 27 233,506
Scherer (R.P.) Corp. Delaware 3,000 155,625
Smithkline Beecham PLC ADR 6,600 462,000
St. Jude Medical Inc. 2,000 66,750(a)
Watson Pharmaceuticals Inc. 5,000 178,750(a)
8,300,367
Insurance -- 3.3%
American International Group Inc. 4,500 528,188
AXA-UAP 1,625 107,754
Chubb Corp. 5,000 269,375
General Reinsurance Corp. 3,500 553,000
Loews Corp. 8,000 711,000
Marsh & McLennan Cos. Inc. 3,800 430,350
Pohjola 1,618 43,401
Schw Ruckversicher (Regd.) 123 130,778
TIG Holdings Inc. 9,000 285,750
UNUM Corp. 2,000 146,000
Zurich Versicherungsgesellechaft 218 68,627
3,274,223
Retail Trade -- 1.6%
Arbor Drugs Inc. 12,750 223,125
Carrefour 495 307,782
Credit Saison Co. 12,650 231,172
Giordano International 94,000 57,016
Home Depot Inc. 3,800 203,300
Tag Heuer International S.A. ADR 608 80,384(a)
Thorn 10,669 28,963
Toys'R Us Inc. 16,000 448,000(a)
1,579,742
Software & Services -- 3.7%
Equifax Inc. 34,000 926,500
First Data Corp. 39,000 1,321,125
Intuit Inc. 3,000 69,750(a)
Microsoft Corp. 3,800 348,413
NTT Data Corp. 6 159,618
Reuters Holdings PLC ADR
(Class B) 15,000 872,812
3,698,218
Technology -- 2.2%
Applied Materials Inc. 2,000 92,750(a)
Brambles Industries Ltd. 11,548 189,841
Cisco Systems Inc. 4,000 192,500(a)
- ----------
See Notes to Schedule of Investments and Financial Statements
22
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
Number
of Shares Value
- --------------------------------------------------------------------------------
Hewlett Packard Co. 3,400 $ 181,050
Intel Corp. 6,500 904,313
Murata Manufacturing Co. 7,000 251,314
Rohm Co. 3,000 221,234
Wolters Kluwer 836 100,694
2,133,696
Transportation -- 1.1%
Burns Philip & Co. 119,080 198,840
IHC Caland N.V. 4,080 217,977
Pittston Brinks Group 5,500 138,875
Railtrack Group PLC 25,022 185,669
Singapore Airlines Ltd. 5,000 40,152
Union Pacific Corp. 5,700 323,475
1,104,988
Utilities -- 3.2%
Airtouch Communications Inc. 31,000 713,000(a)
BSES 1,518 31,878(a)
DDI Corp. 37 233,662
Edison SPA 19,696 105,258
GTE Corp. 5,000 233,125
Korea Electric Power 5,411 157,103
LM Ericsson Telephone (Series B) 1,619 57,146
MCI Communications Corp. 7,500 267,188
Netcom Systems AB (Series B) 2,323 34,216(a)
NTL Inc. 22,000 464,750(a)
NYNEX Corp. 2,000 91,250
Tele Danmark AS (Series B) 460 24,124
Telecom Italia Mobile 98,613 283,906
Telecomunicacoes de
Sao Paulo S.A. 700,745 177,948
Telefonica del Peru S.A. ADR
(Class B) 7,229 160,845
Telekom Malaysia 9,000 70,089
Vanguard Cellular Systems Inc.
(Class A) 5,000 55,000(a)
Videsh Sanchar Nigam Ltd. GDR 507 8,898(b)
3,169,386
Total Common Stock
(Cost $43,922,790) 57,506,075
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds and Notes -- 30.6%
- --------------------------------------------------------------------------------
Federal Agency -- 0.2%
Federal National Mortgage Assoc.
6.375% 01/16/02
(Cost $224,703) $ 225,000 220,289
U.S. Treasuries -- 12.0%
U.S. Treasury Bonds
5.63% 04/02/98 631,000 594,762
6.50% 11/15/26 1,523,000 1,402,104(h)
6.75% 08/15/26 860,000 814,850(h)
8.125% 08/15/19 787,000 863,489(h)
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
12.00% 05/15/05 $182,000 $ 238,249(h)
12.50% 08/15/14 121,000 173,464(h)
13.75% 08/15/04 233,000 323,760(h)
4,410,678
U.S. Treasury Notes
5.625% 02/28/01 238,000 229,187(h)
5.875% 10/31/98 - 02/15/00 2,789,000 2,752,724(h)
6.00% 09/30/98 682,000 679,013(h)
6.25% 01/31/02 - 02/28/02 1,168,000 1,142,860(h)
6.50% 10/15/06 1,504,000 1,457,240(h)
6.625% 07/31/01 630,000 626,850(h)
7.75% 12/31/99 566,000 582,182(h)
7,470,056
Total U.S. Treasuries
(Cost $12,162,794) 11,880,734
Asset Backed -- 0.5%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 24,119 23,251
First Plus Home Improvement Loan Trust
7.80% 03/20/16 44,000 44,076
Lehman FHA Title I Loan Trust
7.83% 09/25/17 40,000 40,150
Premier Auto Trust
6.50% 03/06/00 50,000 50,031
Provident Bank Home Equity Loan Trust
6.72% 01/25/13 242,203 238,267
The Money Store Home Equity Trust
7.50% 01/15/26 49,000 48,326
7.90% 10/15/22 29,000 29,290
Total Asset Backed
(Cost $476,335) 473,391
Corporate Notes -- 6.2%
Abbey National PLC
7.35% 10/29/49 30,000 29,237
AFC Capital Trust
8.207% 02/03/27 100,000 98,256(b)
Aon Capital Trust
8.205% 01/01/27 100,000 98,620(b)
Argentaria Capital Fund
6.375% 02/14/06 60,000 55,275
Bancomer S.A.
9.00% 06/01/00 45,000 45,169(b)
BCH Cayman Islands
8.25% 06/15/04 25,000 25,670
Bell Telephone Co. - Canada
9.50% 10/15/10 150,000 173,669
BT Preferred Capital Trust
7.875% 02/25/27 120,000 112,199
Capital One Bank
6.43% 06/29/98 150,000 149,685
Carter Holt Harvey Ltd.
8.875% 12/01/04 200,000 215,032
Central Maine Power Co.
7.40% 06/02/98 200,000 201,000
China International Trust &
Investment Corp.
9.00% 10/15/06 65,000 70,113
- ----------
See Notes to Schedule of Investments and Financial Statements
23
<PAGE>
GE Strategic Investment Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Circus Circus Enterprises Inc.
6.70% 11/15/2096 $ 70,000 $ 66,947
Citicorp
8.625% 12/01/02 100,000 106,448
Continental Cablevision Inc.
8.50% 09/15/01 70,000 73,110
Dao Heng Bank Ltd.
7.75% 01/24/07 100,000 97,459(b)
Deutsche Bank Financial Inc.
6.70% 12/13/06 85,000 80,746
Developers Diversified Realty Corp.
7.00% 03/05/01 115,000 112,419
Dresser Industries Inc.
7.60% 08/15/2096 50,000 48,629
Empresa Nacional De Electricid
7.875% 02/01/27 70,000 67,589
8.125% 02/01/2097 65,000 63,591
FBOP Capital Trust
10.20% 02/06/27 85,000 82,294(b)
Federated Department Stores Inc.
10.00% 02/15/01 190,000 205,078
First Security Capital
8.41% 12/15/26 41,000 40,838(b)
Freeport Term Malta Ltd.
7.50% 03/29/09 55,000 54,676(b)
Freeport-McMoran Resource
Partners L.P.
7.00% 02/15/08 35,000 32,892
Guangdong International Trust &
Investment Corp.
8.75% 10/24/16 50,000 50,867
HSBC Finance Nederland B.V.
7.40% 04/15/03 100,000 99,182(b)
Hydro-Quebec
8.05% 07/07/24 95,000 100,415
8.25% 04/15/26 50,000 50,668
Ikon Capital Resource Inc.
6.96% 03/27/01 200,000 199,022
Israel Electric Corp. Ltd.
8.10% 12/15/2096 25,000 24,160(b)
ITT Corp. (new)
6.25% 11/15/00 31,000 29,898
Korea Electric Power Corp.
7.75% 04/01/13 48,000 47,485
Landeskreditbank Baden
7.875% 04/15/04 40,000 41,428
Lehman Brothers Holdings Inc.
6.90% 03/30/01 160,000 157,978
Loewen Group International Inc.
7.50% 04/15/01 105,000 104,081
Morgan Stanley Finance PLC
8.03% 02/28/17 40,000 38,796
New York State Dormitory
Authority Revenues
6.32% 04/01/99 90,000 89,157
News America Holdings Inc.
8.15% 10/17/36 270,000 255,401
North Atlantic Energy Corp.
9.05% 06/01/02 88,000 86,567
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
Ontario Province of Canada
6.125% 06/28/00 $ 250,000 $245,325
Oryx Energy Co.
9.50% 11/01/99 75,000 78,254
10.00% 06/15/99 100,000 104,987
Paramount Communications Inc.
5.875% 07/15/00 150,000 143,289
Pennzoil Co.
10.625% 06/01/01 50,000 53,214
Petroleos Mexicanos
7.75% 10/29/99 50,000 49,875(b)
Philip Morris Cos. Inc.
7.20% 02/01/07 30,000 28,852
Provident Capital Trust
8.60% 12/01/26 35,000 33,937(b)
Reliance Industries Ltd.
10.375% 06/24/16 40,000 43,185(b)
10.50% 08/06/46 30,000 31,718(b)
Republic of Columbia
7.25% 02/15/03 35,000 33,304
Republic of Panama
7.875% 02/13/02 100,000 96,500(b)
Republic of Poland
3.75% 10/27/14 50,000 39,875
Riggs Capital Trust
8.625% 12/31/26 40,000 39,608(b)
RJR Nabisco Inc.
8.00% 07/15/01 125,000 124,234
Southern Investments UK PLC
6.375% 11/15/01 75,000 72,476
Sovereign Capital Trust
9.00% 04/01/27 105,000 102,453(b)
Taubman Realty Group L.P.
8.00% 06/15/99 80,000 81,117
TCI Communications Inc.
6.69% 03/31/06 100,000 97,683
Tele-Communications Inc.
8.25% 01/15/03 85,000 85,019
Tenet Healthcare Corp.
8.00% 01/15/05 70,000 67,375
Time Warner, Inc.
6.10% 12/30/01 180,000 169,002
Total Access Communication PLC
7.625% 11/04/01 185,000 181,922(b)
United Co. Financial Corp.
7.00% 07/15/98 150,000 149,841
WorldCom Inc.
7.55% 04/01/04 105,000 104,826
Yale University Notes
7.375% 04/15/2096 65,000 62,096
Total Corporate Notes
(Cost $6,187,477) 6,101,713
Mortgage-Backed -- 11.7%
Federal Home Loan Mortgage Corp.
6.50% 03/01/04 25,289 24,811
8.00% 10/01/25 - 02/01/26 640,301 644,604
9.00% 04/01/16 - 04/01/25 490,050 515,386
9.00% 06/01/21 89,002 94,351(h)
1,279,152
- ----------
See Notes to Schedule of Investments and Financial Statements
24
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc.
6.50% 01/01/04 $ 14,843 $ 14,554
8.50% 12/01/24 246,375 252,687
8.50% 04/01/17 27,340 28,290(h)
9.00% 10/01/24 115,310 120,805
416,336
Government National Mortgage Assoc.
7.00% TBA 236,000 226,707(c)
7.50% 04/15/22 - 11/15/24 1,573,211 1,551,854
7.50% TBA 518,000 508,126(c)
8.00% 01/15/23 - 12/15/23 523,817 528,401
8.50% 10/15/17 2,324,549 2,435,709
9.00% 02/15/17 121,000 128,713
9.50% 12/15/09 136,915 147,258
5,526,768
Mid-State Trust
8.33% 04/01/30 699,391 722,230
Collateralized Mortgage Obligations
Aetna Commercial Mortgage Trust
6.42% 12/26/30 44,529 44,279
Asset Securitization Corp.
7.41% 01/13/30 120,000 121,219
Collateralized Mortgage Obligation Trust
7.22% 11/01/18 40,401 25,301(d,f)
8.16% 09/01/15 38,187 30,167(d,f)
Community Program Loan Trust
4.50% 10/01/18 170,000 141,658
CS First Boston Mortgage Securities Corp.
6.425% 08/20/30 65,035 64,608
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 32,456 31,807(b)
6.85% 12/17/27 123,000 118,964(b)
7.29% 11/12/21 40,000 39,675(b)
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 30,000 30,253
1009.00% 09/15/21 876 36,092(g)
Federal National Mortgage Assoc.
6.965% 07/25/10 40,000 38,637
7.00% 10/17/06 190,000 189,109
7.00% 09/01/23 - 10/01/23 772,319 271,798(g)
7.148% 10/17/09 81,000 79,839
7.165% 01/17/13 82,000 81,026
7.351% 08/17/08 169,000 167,284
7.41% 03/25/21 95,000 94,466
8.00% 02/01/23 159,993 55,498(g)
8.50% 03/01/17 - 07/25/22 196,787 64,193(g)
9.00% 05/25/22 90,351 30,578(g)
9.76% 09/25/23 147,948 79,568(d,f)
10.45% 09/25/23 195,000 99,694(d,f)
Federal National Mortgage Assoc. REMIC
3.60% 12/25/22 3,175 3,155(d,f)
6.71% 08/25/23 127,131 87,800(d,f)
6.84% 12/25/22 85,539 59,877(d,f)
6.856% 06/17/11 61,000 59,037
7.18% 07/25/20 101,000 83,451(d,f)
7.63% 09/25/22 90,871 69,289(d,f)
9.76% 09/25/23 41,105 22,107(d,f)
13.29% 10/25/23 79,774 53,448(d,f)
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
GMAC Commercial Mortgage Securities Inc.
6.79% 10/15/28 $ 99,300 $ 96,243
LB Commercial Conduit Mortgage Trust
7.144% 08/25/04 255,921 253,522
7.416% 10/25/26 49,684 49,676
Merrill Lynch Mortgage Investor's Inc.
7.098% 05/25/15 45,280 45,110
7.46% 06/15/21 118,011 118,141
Morgan Stanley Capital Inc.
6.476% 10/15/10 139,217 135,215(b)
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 58,706
Structured Asset Securities Corp.
1.34% 02/25/28 1,038,177 53,207(g)
8.495% 04/25/27 140,222 142,807
9.087% 09/25/31 240,191 251,751
Vornado Finance Corp.
6.36% 12/01/00 105,000 102,637(b)
3,680,892
Total Mortgage-Backed
(Cost $11,698,938) 11,625,378
Total Bonds and Notes
(Cost $30,750,247) 30,301,505
Number
of Shares Value
- --------------------------------------------------------------------------------
Preferred Stock -- 0.6%
- --------------------------------------------------------------------------------
Airtouch Communications Inc.
(Class B), 6.00% 3,000 76,875
Central Hispano Capital, 9.43% 1,330 35,245
Entergy Gulf States Inc., $1.75 2,875 71,628
Fresenius Medical Care Inc.
AG ADR 1,233 99,424(a)
Grand Metropolitan Delaware,
9.42% 1,500 41,625
National Rural Utilities Cooperative
Finance Corp., 8.00% 375 9,187
Norwest Corp./Marquette Real
Estate Funding Corp., 13.70% 250 241,687(b)
Security Capital
Industrial Trust, 8.54% 1,185 56,820
Total Preferred Stock
(Cost $643,792) 632,491
Total Investments in Securities
(Cost $75,316,829) 88,440,071
- ----------
See Notes to Schedule of Investments and Financial Statements
25
<PAGE>
GE Strategic Investment Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 12.3%
- --------------------------------------------------------------------------------
U.S. Government Agencies -- 7.7%
Federal Home Loan Bank
5.41% 04/17/97 $2,000,000 $ 1,995,191(d)
Federal Home Loan Mortgage Corp.
5.44% 04/18/97 1,590,000 1,585,976(d)
6.50% 04/01/97 1,000,000 1,000,000(d)
Federal National Mortgage Assoc.
5.46% 04/10/97 3,000,000 2,995,905(d)
7,577,072
Repurchase Agreement -- 4.6%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $4,530,000) 4,530,000 4,530,000
(dated 03/31/97, proceeds
$4,530,786, collateralized by
$4,622,334 United States Treasury
Note, 9.875%, 11/15/15)
Total Short Term Investments
(Cost $12,107,072) 12,107,072
Number
Expiration Date/ of
Strike Price Contracts Value
- --------------------------------------------------------------------------------
Put Options Written -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr. 97/94.13 263 (1,151)
(Premium $(904))
Other Assets and Liabilities, net (1.7%) (1,654,602)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $98,891,390
================================================================================
[GRAPHIC OF MONEY]
Icons represent the top five industry weightings in the
GE Strategic Investment Fund as of March 31, 1997.
- ----------
See Notes to Schedule of Investments and Financial Statements
26
<PAGE>
GE TAX-EXEMPT FUND
Q&A
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 peer group
perform for the six months ended March 31, 1997?
A. The Lehman Municipal Index returned 2.3% for the 6 months ended March 31,
1997. Our Lipper peer group of 238 General Municipal funds had an average
return of 2.0% 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 over or under perform its benchmark and peers?
A. The Fund's strong performance for the six months ended March 31, 1997,
compared to its benchmark and its peer group was due to its shorter than
average duration. As of March 31, the duration of the GE Tax-Exempt Fund's
portfolio was 6.0 years compared to the Lehman Municipal Bond Index with a
duration of 7.27 years. Duration is a measure of how sensitive an
investment is to changes in interest rates. The longer the duration of a
portfolio the greater the impact of changes in interest rates. By
maintaining a lower duration, the impact of rising interest rates on the GE
Tax-Exempt Fund's portfolio was minimized.
Q. What has your investment strategy been?
A. In anticipation of higher interest rates, we reduced the portfolio's
interest rate exposure. This was achieved by replacing securities with low
coupons and longer maturities with securities with shorter maturities and
higher coupons. This approach reduced portfolio duration from 8.5 years to
6 years by March 31, 1997. As a result, the Fund decreased its exposure to
interest rates and improved its income generating ability. A 10% cash
position was also maintained in order to further reduce the portfolio's
interest rate exposure. This higher cash position also provides the Fund
with the flexibility to react as investment opportunities arise during this
period of interest rate volatility.
Q. How did interest rate changes impact the Fund?
A. The Federal Reserve's interest rate hike on March 26 was the most
significant event in the financial markets during the first quarter of
1997. The potential for more such Federal Reserve action will weigh heavily
on the bond markets. Investors will be reluctant to buy bonds as they try
to assess the likelihood that the Federal Reserve will continue to raise
interest rates. We believe the GE Tax-Exempt Fund is well positioned to
weather this uncertainty. The portfolio's shorter duration will minimize
the impact of interest rate rises while the cash position will allow it to
take advantage of any buying opportunities arising from Federal Reserve
monetary policy changes.
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 the next six
months. The Federal Open Market Committee continues to be aggressive in
fighting inflation which means higher interest rates and lower prices. As
such, the Fund is positioned slightly shorter than the index and peer group
with respect to duration in order to minimize the impact of rising interest
rates. Cash will be recycled into higher coupon bonds with low volatility
to enhance the income generation in the Fund. New issue supply should
continue to be light. Refunding activity will decline as rising interest
rates make it uneconomical to retire old debt. This lack of supply should
prevent prices from declining too rapidly.
The major issue facing the municipal market in the coming year continues to
be tax reform. With the Republicans retaining control of Congress we can
expect some form of tax reform to materialize but not the broad based tax
initiative that we saw during last term. There has been talk of setting
aside tax reform, by the Republicans, in exchange for other budget
concessions by the Democrats.
[PHOTO OF STELLA LOU]
27
<PAGE>
GE TAX-EXEMPT FUND
PORTFOLIO COMPOSITION
GENERAL OBLIGATION 38.2%
CASH & OTHER 5.1%
SALES TAX SPECIAL 18.3%
EDUCATION 8.4%
LEASE REVENUE 11.7%
TRANSPORTATION 5.4%
WATER & SEWER 2.1%
HOUSING 2.8%
HEALTH 8.0%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 2.12% 4.52% 5.12% 2.68% 1/1/94
- --------------------------------------------------------------------------------
Class A* - 2.22% 0.08% 3.60% 1.31% 1/1/94
- --------------------------------------------------------------------------------
Class B 1.95% 4.10% 4.66% 2.37% 12/22/93
- --------------------------------------------------------------------------------
Class B* - 1.05% 1.10% 4.35% 2.09% 12/22/93
- --------------------------------------------------------------------------------
Class C 2.34% 4.86% 5.41% 3.93% 2/26/93
- --------------------------------------------------------------------------------
Class D 2.46% 5.14% 5.67% 3.85% 11/29/93
- --------------------------------------------------------------------------------
LBMI 2.31% 5.45% 7.08%
================================================================================
* 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, 1997
================================================================================
Percent of
Moody's Ratings+ Market Value
- --------------------------------------------------------------------------------
Aaa 70.5%
- --------------------------------------------------------------------------------
Aa 27.4%
- --------------------------------------------------------------------------------
A 2.1%
- --------------------------------------------------------------------------------
+ Moody's Investors Service, Inc. is a nationally recognized statistical
rating organization.
* Lipper Performance Comparison
General Municipal Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 238 228 165
Peer group average
total return: 2.0% 4.8% 6.1%
Lipper categories
in peer group: General Municipal
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
28
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE TAX-EXEMPT FUND
Principal
Amount Value
- --------------------------------------------------------------------------------
Municipal Bonds -- 94.9%
- --------------------------------------------------------------------------------
[GRAPHIC OF ARIZONA STATE]
Arizona -- 8.6%
Arizona Transportation Board
Rev. - Sales Tax, AMBAC Insured
5.60% 07/01/02 $ 500,000 $ 518,310
Maricopa County Elementary School
G.O., AMBAC Insured
6.30% 07/01/07 500,000 547,785
1,066,095
California -- 4.0%
Los Angeles California Regional Airport
Rev. - Lease Rev., VRDN
3.80% 12/01/24 500,000 500,000
Colorado -- 4.0%
Colorado State Rev. - Sales Tax
4.50% 06/27/97 500,000 500,735
[GRAPHIC OF CONNECTICUT STATE]
Connecticut -- 8.1%
Connecticut State G.O., AMBAC Insured
5.50% 01/01/03 500,000 515,070
Connecticut State Health & Educational Fac. Auth.
Rev. - Health, MBIA Insured
5.50% 07/01/12 500,000 495,880
1,010,950
Delaware -- 4.0%
Wilmington Delaware Hospital
Rev. - Health, VRDN
3.80% 07/01/11 500,000 500,000
Illinois -- 4.2%
Chicago Illinois G.O., FGIC Insured
6.00% 01/01/08 500,000 525,830
Indiana -- 2.4%
Indiana University Rev. - Education
6.00% 11/15/14 290,000 297,546
Maryland -- 4.2%
Baltimore County G.O.
5.50% 08/01/04 500,000 517,935
Massachusetts -- 2.1%
Massachusetts State Water & Sewer
Rev. - Water & Sewer
6.00% 11/01/06 250,000 262,223
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
Michigan -- 4.3%
Michigan State Underground Storage Tank
Rev. - Sales Tax, AMBAC Insured
6.00% 05/01/04 $ 500,000 $ 531,615
Minnesota -- 4.1%
Minnesota State G.O.
6.60% 08/01/98 500,000 516,870
Nebraska -- 2.7%
Lancaster County Nebraska
School District G.O.
5.00% 07/15/09 350,000 335,695
[GRAPHIC OF NEW JERSEY STATE]
New Jersey -- 6.0%
New Jersey Building Auth.
Rev. - Lease Rev.
5.00% 06/15/12 500,000 469,525
New Jersey Tpke. Auth.
Rev. - Trans., AMBAC Insured
6.50% 01/01/16 250,000 276,497
746,022
New York -- 2.0%
Westchester County New York G.O.
4.90% 11/15/97 250,000 251,985
[GRAPHIC OF OHIO STATE]
Ohio -- 5.9%
Ohio State Building Authority
Rev. - Lease Rev., AMBAC Insured
5.50% 04/01/16 500,000 484,540
Ohio State Public Facilities
Rev. - Education, AMBAC Insured
5.40% 11/01/07 250,000 253,240
737,780
Oregon -- 2.0%
Portland G.O.
5.375% 06/01/13 250,000 244,308
Pennsylvania -- 3.9%
Pennsylvania Intergovernmental Co-op.
Rev. - Sales Tax, MBIA Insured
5.60% 06/15/15 500,000 484,430
Tennessee -- 3.2%
Metropolitan Nashville Airport Authority
Rev. - Trans., VRDN
3.80% 10/01/12 400,000 400,000
- ----------
See Notes to Schedule of Investments and Financial Statements
29
<PAGE>
GE Tax-Exempt Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
[GRAPHIC OF TEXAS STATE]
Texas -- 12.4%
Dallas Texas G.O.
5.50% 02/15/01 $ 500,000 $ 515,565
Houston G.O.
6.00% 04/01/04 500,000 531,020
University of Texas Rev. - Education
5.10% 08/15/08 500,000 492,345
1,538,930
West Virginia -- 2.8%
West Virginia Housing Development
Fund Rev. - Housing
5.60% 11/01/11 355,000 353,931
Wisconsin -- 4.0%
Wisconsin State G.O.
5.30% 11/01/11 500,000 494,975
Total Investments in Securities
(Cost $11,677,288) 11,817,855
Other Assets and Liabilities, net 5.1% 636,142
- --------------------------------------------------------------------------------
NET ASSETS - 100% $12,453,997
================================================================================
[GRAPHIC OF CONNECTICUT STATE]
Icons represent the top five state weightings in the
GE Tax-Exempt Fund as of March 31, 1997.
- ----------
See Notes to Schedule of Investments and Financial Statements
30
<PAGE>
GE FIXED INCOME FUNDS
Q&A
Bob MacDougall leads the fixed income team at GE Investments. Assets under
management exceed $19 billion. Bob joined GE Investments in 1986 as Mutual Fund
Portfolio Manager, became Senior Vice President - Fixed Income in 1992 and was
named to his present position in 1997. 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. Describe what happened in the fixed income markets over the past six
months.
A. Data released in October and November 1996 showed that our economy was
growing at a very modest pace and that inflation was stable at low levels.
Speculation of a possible easing of monetary policy drove interest rates
down .50% reaching a low in November of 5.6% on two year Treasury notes and
6.4% on 30 year bonds. The economy subsequently picked up steam, however,
which rekindled fears of inflation among fixed income investors and members
of the Federal Reserve. Despite continued good inflation reports, the Fed
raised short term interest rates in March 1997 in a "pre-emptive" move to
relieve building price pressures. As a result, yields on 2 year Treasuries
ended the six month period .30% higher at 6.4% while 30 year bond yields
hit 7.1%, about .20% higher than they were at the end of September 1996.
While rising interest rates improve income levels, they tend to have a
negative impact on net asset values (NAVs). This is reflected in the
performance of our fixed income funds each of which targets a different
level of interest rate risk (duration).
GE Fixed Income Fund
Q. How did the GE Fixed Income Fund's market benchmark and Lipper peer group
perform for the six months ended March 31, 1997?
A. The Lehman Brothers Aggregate Bond Index returned 2.4%, while the average
return for the 142 Intermediate Maturity U.S. Government Bond mutual funds
tracked by Lipper was 1.9%. Refer to the following page to see how your
class of shares in the GE Fixed Income Fund performed compared to these
benchmarks.
Q. What drove the Fund's performance?
A. Our portfolio is well-diversified, holding U.S. Treasuries, Mortgage-backed
securities issued by U.S. Government agencies and corporate bonds. During
this period, our allocation to corporate bonds performed well compared with
both the corporate sector of the index as well as the overall index.
GE Short-Term Government Fund
Q. How did the GE Short-Term Government Fund's benchmarks perform for the six
months ended March 31, 1997?
A. The Lehman Brothers 1-3 year Government Index returned 2.6%. Our Lipper
peer group of 186 Short-Term Government mutual funds averaged a return of
2.3%. Refer to page 37 to see how your class of shares in the GE Short-Term
Government Fund performed compared with these benchmarks.
Q. To what do you attribute this performance?
A. Our strategy of holding securities with yields higher than the index paid
off not only in terms of greater income but also in better price
performance as spreads to U.S. Treasuries narrowed. Examples of these types
of securities are adjustable rate mortgage-backed securities and issues
collateralized by assets such as automobile loans.
GE Money Market Fund
Q. How did the GE Money Market Fund perform relative to its benchmarks for the
six months ended March 31, 1997?
A. The GE Money Market Fund had a total return of 2.5% for the six months
ended March 31, 1997. For this same period, 90-day Treasury Bills returned
2.6% and the average return of the 302 Money Market funds reported by
Lipper was 2.4%. Our approach of maintaining a very high quality portfolio
and holding the average maturity of the Fund below 60 days was applied
consistently during this period.
Q. What is your outlook?
A. The Fed's "pre-emptive" tightening, while painful in the short run, is good
news for bond investors with a long investment horizon because real returns
will be maximized with low stable rates of inflation.
[PHOTO OF BOB MACDOUGALL]
31
<PAGE>
GE FIXED INCOME FUND
PORTFOLIO COMPOSITION
CASH & OTHER 11.1%
U.S. TREASURIES 30.5%
CORPORATE NOTES 19.7%
MORTGAGE-BACKED 38.7%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 2.32% 4.43% 5.97% 4.67% 1/1/94
- --------------------------------------------------------------------------------
Class A* - 2.03% - 0.01% 4.43% 3.27% 1/1/94
- --------------------------------------------------------------------------------
Class B 2.15% 4.00% 5.49% 4.19% 12/22/93
- --------------------------------------------------------------------------------
Class B* - 0.83% 1.04% 5.19% 3.92% 12/22/93
- --------------------------------------------------------------------------------
Class C 2.52% 4.68% 6.25% 5.17% 2/22/93
- --------------------------------------------------------------------------------
Class D 2.66% 4.96% 6.51% 5.16% 11/29/93
- --------------------------------------------------------------------------------
LB Agg. 2.43% 4.91% 6.86%
================================================================================
* 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, 1997
================================================================================
Percent of
Moody's Ratings+ Market Value
- --------------------------------------------------------------------------------
Aaa 80.2%
- --------------------------------------------------------------------------------
Aa 2.0%
- --------------------------------------------------------------------------------
A 5.5%
- --------------------------------------------------------------------------------
Baa 7.0%
- --------------------------------------------------------------------------------
Ba 5.0%
- --------------------------------------------------------------------------------
B 0.3%
================================================================================
+ Moody's Investors Service, Inc. is a nationally recognized statistical
rating organization.
* Lipper Performance Comparison
Intermediate Government Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 142 132 90
Peer group average
total return: 1.9% 3.8% 5.3%
Lipper categories
in peer group: Intermediate U.S. Government,
Intermediate U.S. Treasury
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
32
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE FIXED INCOME FUND
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds and Notes -- 92.2%
- --------------------------------------------------------------------------------
Federal Agency -- 0.7%
Federal National Mortgage Assoc.
6.375% 01/16/02
(Cost $414,452) $ 415,000 $ 406,311
U.S. Treasuries -- 30.5%
U.S. Treasury Bonds
5.63% 04/02/98 1,007,000 949,168
6.50% 11/15/26 2,317,000 2,133,077(h)
6.75% 08/15/26 883,000 836,643(h)
8.125% 08/15/19 1,665,000 1,826,821(h)
12.00% 05/15/05 358,000 468,643(h)
12.50% 08/15/14 602,000 863,021(h)
13.75% 08/15/04 428,000 594,719(h)
7,672,092
U.S. Treasury Notes
5.625% 02/28/01 398,000 383,262(h)
5.875% 10/31/98 - 02/15/00 3,208,000 3,172,356(h)
6.00% 09/30/98 1,522,000 1,515,334(h)
6.25% 01/31/02 - 02/28/02 1,983,000 1,940,589(h)
6.625% 07/31/01 1,567,000 1,559,165(h)
7.75% 12/31/99 2,445,000 2,514,903(h)
11,085,609
Total U.S. Treasuries
(Cost $19,119,456) 18,757,701
Asset Backed -- 0.2%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 48,237 46,500
Lehman FHA Title I Loan Trust
7.83% 09/25/17 80,000 80,300
Total Asset Backed
(Cost $126,164) 126,800
Corporate Notes -- 19.7%
Abbey National PLC
7.35% 10/29/49 110,000 107,203
AFC Capital Trust
8.207% 02/03/27 165,000 162,122(b)
Aon Capital Trust
8.205% 01/01/27 105,000 103,551(b)
Argentaria Capital Fund
6.375% 02/14/06 160,000 147,400
Bancomer S.A.
9.00% 06/01/00 100,000 100,375(b)
BCH Cayman Islands
8.25% 06/15/04 125,000 128,351
Bell Telephone Co. - Canada
9.50% 10/15/10 265,000 306,814
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 $ 75,000 $ 83,957
BT Preferred Capital Trust
7.875% 02/25/27 240,000 224,398
Capital One Bank
6.43% 06/29/98 300,000 299,370
Central Maine Power Co.
7.40% 06/02/98 125,000 125,625
China International Trust & Investment Corp.
9.00% 10/15/06 170,000 183,372
China Light & Power Ltd.
7.50% 04/15/06 150,000 147,767
Circus Circus Enterprises Inc.
6.70% 11/15/2096 150,000 143,459
Conseco Inc.
10.50% 12/15/04 100,000 114,849
Continental Cablevision Inc.
8.30% 05/15/06 130,000 134,582
8.50% 09/15/01 125,000 130,554
Dao Heng Bank Ltd.
7.75% 01/24/07 100,000 97,459(b)
Delta Air Lines Inc.
7.79% 12/01/98 125,000 127,084
Deutsche Bank Financial Inc.
6.70% 12/13/06 655,000 622,217
Developers Diversified Realty Corp.
7.00% 03/05/01 300,000 293,268
Dresser Industries Inc.
7.60% 08/15/2096 113,000 109,900
Empresa Nacional De Electricid
7.875% 02/01/27 120,000 115,867
8.125% 02/01/2097 100,000 97,832
FBOP Capital Trust
10.20% 02/06/27 65,000 62,931(b)
Federated Department Stores Inc.
8.50% 06/15/03 110,000 113,614
10.00% 02/15/01 95,000 102,539
First Security Capital
8.41% 12/15/26 90,000 89,645(b)
Freeport Term Malta Ltd.
7.50% 03/29/09 150,000 149,117(b)
Freeport-McMoran Resource Partners L.P.
7.00% 02/15/08 150,000 140,967
Guangdong International Trust & Investment Corp.
8.75% 10/24/16 105,000 106,821
HSBC Finance Nederland B.V.
7.40% 04/15/03 150,000 148,773(b)
Hydro-Quebec
8.05% 07/07/24 60,000 63,420
8.25% 04/15/26 360,000 364,806
11.75% 02/01/12 75,000 101,087
Israel Electric Corp. Ltd.
8.10% 12/15/2096 240,000 231,936(b)
ITT Corp. (new)
6.25% 11/15/00 63,000 60,760
- ----------
See Notes to Schedule of Investments and Financial Statements
33
<PAGE>
GE Fixed Income Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Korea Electric Power Corp.
7.75% 04/01/13 $ 164,000 $ 162,242
Landeskreditbank Baden
7.875% 04/15/04 160,000 165,710
Lehman Brothers Holdings Inc.
6.90% 03/30/01 210,000 207,346
Liberty Mutual Insurance Co.
8.20% 05/04/07 125,000 129,658(b)
Loewen Group International Inc.
7.50% 04/15/01 225,000 223,031
Lumbermans Mutual Casualty Co.
9.15% 07/01/26 150,000 156,510(b)
Metropolitan Life Insurance Co.
7.80% 11/01/25 250,000 238,247(b)
Midland Bank PLC
6.95% 03/15/11 310,000 287,782
Morgan Stanley Finance PLC
8.03% 02/28/17 90,000 87,291
National Bank of Hungary
8.875% 11/01/13 90,000 93,531
New York State Dormitory Authority Revenues
6.32% 04/01/99 200,000 198,126
News America Holdings Inc.
8.15% 10/17/36 125,000 118,241
North Atlantic Energy Corp.
9.05% 06/01/02 166,000 163,298
Oryx Energy Co.
9.50% 11/01/99 150,000 156,507
10.00% 06/15/99 150,000 157,480
Pennzoil Co.
10.625% 06/01/01 150,000 159,642
Petroleos Mexicanos
7.75% 10/29/99 100,000 99,750(b)
Philip Morris Cos. Inc.
7.20% 02/01/07 100,000 96,174
Provident Capital Trust
8.60% 12/01/26 70,000 67,875(b)
PSI Energy Inc.
6.25% 12/15/98 100,000 98,973
Reliance Industries Ltd.
10.375% 06/24/16 105,000 113,361(b)
10.50% 08/06/46 85,000 89,868(b)
Republic of Columbia
7.25% 02/15/03 100,000 95,154
Republic of Panama
7.875% 02/13/02 200,000 193,000(b)
Republic of Poland
3.75% 10/27/14 110,000 87,725
Riggs Capital Trust
8.625% 12/31/26 90,000 89,119(b)
RJR Nabisco Inc.
8.00% 07/15/01 300,000 298,161
Southern Investments UK PLC
6.375% 11/15/01 120,000 115,962
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
Taubman Realty Group L.P.
8.00% 06/15/99 $ 160,000 $ 162,234
TCI Communications Inc.
6.69% 03/31/06 125,000 122,104
Tele-Communications Inc.
8.25% 01/15/03 70,000 70,015
9.25% 04/15/02 100,000 105,108
Tenet Healthcare Corp.
8.00% 01/15/05 120,000 115,500
Time Warner Entertainment Co. L.P.
10.15% 05/01/12 75,000 87,578
Time Warner Inc.
6.10% 12/30/01 100,000 93,890
7.95% 02/01/00 150,000 153,076
Toledo Edison Co.
7.38% 03/31/00 250,000 242,275
Total Access Communication PLC
7.625% 11/04/01 155,000 152,421(b)
United Co. Financial Corp.
7.00% 07/15/98 300,000 299,682
Viacom Inc.
7.75% 06/01/05 250,000 241,440
WorldCom Inc.
7.55% 04/01/04 200,000 199,668
Yale University Notes
7.375% 04/15/2096 100,000 95,533
Total Corporate Notes
(Cost $12,327,646) 12,134,080
Mortgage-Backed -- 38.7%
Federal Home Loan Mortgage Corp.
6.50% 03/01/04 74,483 73,075
8.00% 03/01/07 - 10/01/25 899,483 905,822
8.75% 04/01/08 51,956 54,051
9.00% 12/01/16 - 04/01/25 1,155,328 1,214,451
9.50% 04/01/21 43,580 46,998(h)
2,294,397
Federal National Mortgage Assoc.
6.50% 01/01/04 43,709 42,860
7.50% 02/01/14 27,039 26,871
8.50% 12/01/24 543,133 557,048
8.50% 04/01/17 109,358 113,158(h)
9.00% 10/01/24 211,662 221,747
961,684
Government National Mortgage Assoc.
6.00% 08/20/26 612,981 620,742(e)
7.00% TBA 436,000 418,832(c)
7.50% 05/15/22 - 11/15/24 5,355,000 5,278,642
7.50% TBA 1,285,000 1,260,504(c)
8.00% 05/15/22 - 12/15/23 1,876,355 1,893,294
8.50% 10/15/17 1,074,436 1,125,815
9.00% 02/15/17 177,000 188,282
9.00% 11/15/19 176,233 187,026(h)
9.50% 12/15/09 414,779 446,413
11,419,550
- ----------
See Notes to Schedule of Investments and Financial Statements
34
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Mid-State Trust
8.33% 04/01/30 $ 1,297,976 $ 1,340,363
Collateralized Mortgage Obligations
Aetna Commercial Mortgage Trust
6.42% 12/26/30 115,944 115,292
Collateralized Mortgage Obligation Trust
7.22% 11/01/18 111,649 69,920(d,f)
8.16% 09/01/15 105,530 83,369(d,f)
Community Program Loan Trust
4.50% 10/01/18 300,000 249,984
CS First Boston Mortgage Securities Corp.
6.425% 08/20/30 97,553 96,913
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 71,403 69,975(b)
7.29% 11/12/21 87,000 86,293(b)
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 70,000 70,591
1009.00% 09/15/21 2,396 98,723(g)
Federal National Mortgage Assoc.
6.965% 07/25/10 80,000 77,275
7.00% 10/17/06 352,000 350,350
7.00% 09/01/23 - 10/01/23 1,060,545 373,232(g)
7.148% 10/17/09 176,000 173,470
7.165% 01/17/13 153,000 151,183
7.351% 08/17/08 313,000 309,821
7.41% 03/25/21 245,000 243,622
8.00% 02/01/23 366,436 127,107(g)
8.50% 03/01/17 - 07/25/22 516,014 172,207(g)
9.00% 05/25/22 166,593 56,381(g)
9.76% 09/25/23 332,534 178,841(d,f)
10.45% 09/25/23 87,000 44,479(d,f)
Federal National Mortgage Assoc. REMIC
3.60% 12/25/22 5,854 5,818(d,f)
6.71% 08/25/23 289,677 200,058(d,f)
6.84% 12/25/22 157,736 110,415(d,f)
6.856% 06/17/11 132,000 127,751
7.18% 07/25/20 255,000 208,144(d,f)
7.63% 09/25/22 250,236 190,805(d,f)
9.76% 09/25/23 92,389 49,688(d,f)
13.29% 10/25/23 175,428 117,537(d,f)
GMAC Commercial Mortgage Securities Inc.
6.79% 10/15/28 124,125 120,304
LB Commercial Conduit Mortgage Trust
7.144% 08/25/04 671,189 664,896
7.416% 10/25/26 113,279 113,261
Merrill Lynch Mortgage Investor's Inc.
7.098% 05/25/15 249,041 248,107
7.46% 06/15/21 865,954 866,901
Morgan Stanley Capital Inc.
6.476% 10/15/10 233,336 226,628(b)
Sawgrass Finance REMIC Trust
6.45% 01/20/06 100,000 97,844
Structured Asset Securities Corp.
1.34% 02/25/28 2,126,793 108,998(g)
8.495% 04/25/27 440,569 448,692
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
9.087% 09/25/31 $ 509,206 $ 533,711
Vornado Finance Corp.
6.36% 12/01/00 210,000 205,275(b)
7,843,861
Total Mortgage-Backed
(Cost $24,043,209) 23,859,855
Foreign Denominated Notes -- 2.4%
Dutch Government
6.00% 01/15/06 NLG 526,000 286,489
Federal Republic of Germany
6.25% 04/26/06 DEM 448,000 276,992
Government of Canada
7.00% 12/01/06 CAD 473,000 348,130
Kingdom of Belgium
7.00% 05/15/06 BEL 9,310,000 292,480
Kingdom of Denmark
8.00% 03/15/06 DKK 1,678,000 286,843
Total Foreign Denominated Notes
(Cost $1,589,976) 1,490,934
Total Bonds and Notes
(Cost $57,620,903) 56,775,681
Number
of Shares Value
- --------------------------------------------------------------------------------
Preferred Stock -- 1.6%
- --------------------------------------------------------------------------------
Central Hispano Capital, 9.43% 3,200 84,800
Entergy Gulf States Inc., $1.75 6,435 160,322
Grand Metropolitan Delaware,
9.42% 3,500 97,125
National Rural Utilities Cooperative
Finance Corp., 8.00% 1,088 26,656
Norwest Corp./Marquette Real
Estate Funding Corp., 13.70% 500 483,375(b)
Security Capital Industrial Trust,
8.54% 2,620 125,626
Total Preferred Stock
(Cost $988,263) 977,904
Total Investments in Securities
(Cost $58,609,166) 57,753,585
Principal
Amount Value
- --------------------------------------------------------------------------------
Short Term Investments -- 11.7%
- --------------------------------------------------------------------------------
U.S. Government Agencies -- 7.1%
Federal Home Loan Mortgage Corp.
5.44% 04/18/97 $1,410,000 1,406,431(d)
6.50% 04/01/97 1,000,000 1,000,000(d)
Federal National Mortgage Assoc.
5.46% 04/10/97 2,000,000 1,997,270(d)
4,403,701
- ----------
See Notes to Schedule of Investments and Financial Statements
35
<PAGE>
GE Fixed Income Fund March 31, 1997 (unaudited)
Principal
Amount Value
- --------------------------------------------------------------------------------
Repurchase Agreement -- 4.6%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $2,820,000) $2,820,000 $ 2,820,000
(dated 03/31/97, proceeds
$2,820,490, collateralized by
$2,880,775 United States Treasury
Note, 9.875%, 11/15/15)
Total Short Term Investments
(Cost $7,223,701) 7,223,701
Number
Expiration Date/ of
Strike Price Contracts Value
- --------------------------------------------------------------------------------
Put Options Written -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr. 97/94 .13 484 (2,118)
(Premium $(1664))
Other Assets and Liabilities, net (5.5%) (3,379,217)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $61,595,951
================================================================================
FORWARD FOREIGN CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
At March 31, 1997, the outstanding forward foreign currency contracts, which
contractually obligate the GE Fixed Income Fund to deliver currencies at a
specified date, were as follows:
<TABLE>
<CAPTION>
U.S. $ Cost U.S. $ Unrealized
Foreign on Origination Current Appreciation
Foreign Currency Sale Contracts Currency Date Value (Depreciation)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BEL, expiring 05/02/97 10,617,800 $ 305,241 $ 309,306 $ (4,065)
CAD, expiring 05/02/97 499,100 363,246 361,277 1,969
DEM, expiring 04/28/97 28,000 16,582 16,819 (237)
DEM, expiring 05/02/97 460,475 273,429 276,676 (3,247)
DKK, expiring 05/02/97 1,836,480 285,700 289,461 (3,761)
NLG, expiring 05/02/97 545,325 288,227 291,419 (3,192)
---------- ---------- --------
$1,532,425 $1,544,958 $(12,533)
========== ========== ========
</TABLE>
- ----------
See Notes to Schedule of Investments and Financial Statements
36
<PAGE>
GE Short-Term Government Fund
Portfolio Composition
U.S. GOVERNMENTS 70.7%
ASSET BACKED 5.2%
CASH & OTHER 5.0%
CORPORATES NOTES 10.2%
MORTGAGE-BACKED 8.9%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 2.57% 4.83% 5.21% 4.88% 3/2/94
- --------------------------------------------------------------------------------
Class A* 0.01% 2.21% 4.34% 4.01% 3/2/94
- --------------------------------------------------------------------------------
Class B 2.31% 4.46% 4.82% 4.49% 3/2/94
- --------------------------------------------------------------------------------
Class B* - 0.68% 1.48% 4.52% 4.19% 3/2/94
- --------------------------------------------------------------------------------
Class C 2.61% 5.09% 5.48% 5.13% 3/2/94
- --------------------------------------------------------------------------------
Class D 2.74% 5.35% 5.71% 5.37% 3/2/94
- --------------------------------------------------------------------------------
LB 1-3 Yr.+ 2.55% 5.36% 5.79%
================================================================================
* With Load
+ Lehman Brothers 1-3 Year Government Bond Index
INVESTMENT PROFILE
A mutual fund designed for investors who seek high current income and
preservation of capital by investing primarily in short-term U.S.
Government securities.
[LINEGRAPH]
2 YEAR TREASURY NOTE YIELD HISTORY
04/01/96 - 03/31/97
High 6.43% Low 5.60% Avg. 6.02%
* Lipper Performance Comparison
Short-Term U.S. Government Peer Group
Based on average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 186 175 127
Peer group average
total return: 2.3% 4.5% 5.1%
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 41 for Notes to Performance.
Past performance is no guarantee of future results.
37
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE SHORT-TERM GOVERNMENT FUND
Principal
Amount Value
- --------------------------------------------------------------------------------
Bonds and Notes -- 95.0%
- --------------------------------------------------------------------------------
U.S. Governments -- 70.7%
Federal Home Loan Mortgage Corp.
6.00% 12/01/08 $ 116,589 $ 113,345(h)
8.00% 08/01/03 332,747 339,090
452,435
Federal Home Loan Mortgage Corp. REMIC
543.497% 09/15/05 225 2,552(g)
1002.00% 07/15/06 451 9,378(g)
11,930
Federal National Mortgage Assoc.
6.521% 09/17/04 261,345 257,180
6.88% 11/17/02 150,000 149,156
7.00% 10/17/06 75,000 74,649
7.373% 08/17/03 304,664 307,139
9.00% 08/01/10 347,976 364,578
1,152,702
Federal National Mortgage Assoc. REMIC
7.06% 11/25/06 63,009 57,023(d,f)
7.95% 11/25/19 55,037 55,363
112,386
Government National Mortgage Assoc.
6.50% 02/20/23 500,805 508,787(e)
7.125% 09/20/18 - 06/20/24 1,927,442 1,975,828(e)
9.00% 08/15/09 - 12/15/09 1,009,057 1,062,096
3,546,711
U.S. Treasury Notes
5.50% 02/28/99 186,000 182,920(h)
5.875% 10/31/98 185,000 183,642(h)
6.00% 09/30/98 1,875,000 1,866,787(h)
6.125% 08/31/98 713,000 711,439(h)
6.25% 06/30/98 1,000,000 1,000,470(h)
3,945,258
Total U.S. Governments
(Cost $9,276,157) 9,221,422
Asset Backed -- 5.2%
Chase Manhatten Auto Owner Trust
6.25% 11/15/00 50,000 49,662
CIT RV Owner Trust
5.40% 12/15/11 209,074 204,684
Fleetwood Credit Grantor Trust
6.00% 01/15/08 84,809 84,013
6.75% 10/17/11 78,273 78,029
6.90% 03/15/12 25,231 25,121
Ford Credit Auto Owner Trust
6.50% 11/15/99 60,000 60,075
Lehman FHA Title I Loan Trust
7.30% 05/25/17 76,092 76,163
Provident Bank Home Equity Loan Trust
6.72% 01/25/13 96,881 95,307
Total Asset Backed
(Cost $675,676) 673,054
Corporate Notes -- 10.2%
Central Maine Power Co.
7.40% 06/02/98 100,000 100,500
<PAGE>
Principal
Amount Value
- --------------------------------------------------------------------------------
First USA Bank
6.125% 10/30/97 $ 100,000 $ 99,917
General Motors Acceptance Corp.
8.375% 01/19/99 100,000 102,894
Great Atlantic & Pacific Tea Inc.
9.125% 01/15/98 168,000 171,496
Great Northern Nekoosa Corp.
9.125% 02/01/98 100,000 102,147
Lehman Brothers Holdings Inc.
6.875% 06/08/98 150,000 150,575
New York State Dormitory Authority Revenues
6.32% 04/01/99 40,000 39,625
New York Taxable General Obligation
6.10% 02/01/98 100,000 99,481
News America Holdings Inc.
9.125% 10/15/99 110,000 115,482
Province of Manitoba
6.125% 05/28/98 125,000 124,656
Republic of Columbia
8.75% 10/06/99 50,000 52,188
Salomon Inc.
6.70% 12/01/98 75,000 74,882
United Co. Financial Corp.
7.00% 07/15/98 100,000 99,894
Total Corporate Notes
(Cost $1,336,069) 1,333,737
Mortgage-Backed -- 8.9%
Collateralized Mortgage Obligations
Merrill Lynch Mortgage Investor's Inc.
7.46% 06/15/21 39,337 39,380
Morgan (J.P.) Commercial Mortgage Finance Corp.
6.939% 12/26/28 173,180 172,097
Morgan Stanley Capital Inc.
6.85% 02/15/20 115,000 114,569
Salomon Brothers Mortgage Securities Inc.
6.469% 01/20/28 380,414 374,708
8.125% 11/01/12 38,607 38,728
Structured Asset Securities Corp.
6.75% 06/25/30 227,882 225,674
9.087% 09/25/31 192,153 201,401
Total Mortgage-Backed
(Cost $1,182,214) 1,166,557
Total Investments in Securities
(Cost $12,470,116) 12,394,770
- --------------------------------------------------------------------------------
Short Term Investments -- 4.2%
- --------------------------------------------------------------------------------
Repurchase Agreement -- 4.2%
State Street Bank and Trust Co.
6.25% 04/01/97
(Cost $550,000) 550,000 550,000
(dated 03/31/97, proceeds
$550,095, collateralized by
$563,060 United States Treasury
Note, 9.875%, 11/15/15)
Other Assets and Liabilities, net 0.8% 108,317
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $13,053,087
================================================================================
- ----------
See Notes to Schedule of Investments and Financial Statements
38
<PAGE>
GE MONEY MARKET FUND
PORTFOLIO COMPOSITION
U.S. GOVERNMENTS 45.3%
COMMERCIAL PAPER 28.0%
CERTIFICATE OF DEPOSITS 26.7%
- --------------------------------------------------------------------------------
Average Annual Total Return %
for the periods ended March 31, 1997
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3Yr Inception Commencement
- --------------------------------------------------------------------------------
Fund 2.50% 5.06% 5.04% 4.43% 2/22/93
- --------------------------------------------------------------------------------
90 Day T-Bill 2.55% 5.19% 5.22%
================================================================================
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
as of March 31, 1997
- --------------------------------------------------------------------------------
Fund Donoghue
- --------------------------------------------------------------------------------
7 day current 5.0 5.0
7 day effective 5.2 5.1
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 average annual total returns for the periods ending March 31, 1997
Six One Three
Months Year Year
Number of Funds
in peer group: 302 292 225
Peer group average
total return: 2.4% 4.8% 4.8%
Lipper categories
in peer group: Money Market
* See Notes to Performance for explanation of peer categories
See page 41 for Notes to Performance.
Past performance is no guarantee of future results.
39
<PAGE>
Schedule of Investments March 31, 1997 (unaudited)
GE MONEY MARKET FUND
Principal Amortized
Amount Cost
- --------------------------------------------------------------------------------
Short Term Investments -- 100.4%
- --------------------------------------------------------------------------------
U.S. Governments(d) -- 45.3%
Federal Agricultural Mortgage Corp.
5.69% 06/13/97 $ 3,000,000 $ 2,966,663
Federal Farm Credit Bank
5.53% 04/23/97 3,400,000 3,388,718
Federal Home Loan Mortgage Corp.
5.43% 06/13/97 4,810,000 4,759,086
5.67% 04/17/97 3,400,000 3,391,825
5.70% 04/18/97 4,310,000 4,298,918
6.50% 04/01/97 8,160,000 8,160,000
20,609,829
Federal National Mortgage Assoc.
5.34% 05/12/97 2,810,000 2,793,343
5.39% 04/16/97 2,350,000 2,344,859
5.42% 06/13/97 1,470,000 1,454,306
5.44% 06/17/97 5,500,000 5,438,240
5.59% 05/02/97 - 05/09/97 5,250,000 5,221,782
5.72% 07/09/97 3,200,000 3,151,380
20,403,910
Total U.S. Governments
(Cost $47,369,120) 47,369,120
Commercial Paper(d) -- 28.0%
Abbey National PLC
5.34% 05/22/97 3,900,000 3,870,883
Bank of Montreal
5.37% 04/09/97 2,500,000 2,497,028
Chase Manhattan Corp.
5.31% 05/27/97 3,900,000 3,868,271
Halifax Building Society
5.32% 04/14/97 3,700,000 3,692,959
Merrill Lynch & Co. Inc.
5.40% 05/20/97 4,000,000 3,970,927
Norwest Corp.
5.31% 05/29/97 3,900,000 3,867,138
Republic National Bank
5.30% 05/23/97 3,900,000 3,870,538
Toronto Dominion Bank
5.33% 04/17/97 3,700,000 3,691,317
Total Commercial Paper
(Cost $29,329,061) 29,329,061
Certificates of Deposit -- 27.1%
Algemene Bank Nederland N.V.
5.38% 05/06/97 3,800,000 3,800,000
Bayerische Vereinsbank AG
5.34% 04/07/97 3,650,000 3,650,000
<PAGE>
Principal Amortized
Amount Cost
- --------------------------------------------------------------------------------
Credit Suisse
5.34% 05/12/97 $ 2,000,000 $ 2,000,000
Deutsche Bank AG
5.32% 04/15/97 3,700,000 3,700,000
Dresdner Bank AG
5.31% 05/28/97 3,900,000 3,900,000
Royal Bank of Canada
5.38% 06/13/97 4,020,000 4,020,000
Societe Generale
5.40% 04/11/97 3,550,000 3,550,000
Swiss Bank Corp.
5.40% 04/03/97 3,700,000 3,700,000
Total Certificates of Deposit
(Cost $28,320,000) 28,320,000
Total Short Term Investments
(Cost $105,018,181) 105,018,181
Other Assets and Liabilities, net (0.4%) (391,741)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $104,626,440
================================================================================
- ----------
See Notes to Schedule of Investments and Financial Statements
40
<PAGE>
Notes to Performance (unaudited)
Average annual total returns take into account changes in share price and assume
reinvestment of dividends and capital gains. Investment returns and net asset
value on an investment will fluctuate and you may have a loss or gain when you
sell your shares. Classes A and B are shown both without the sales charge and
also assuming the reduction of the returns by 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.
GE Investment Management Incorporated ("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), Morgan Stanley
Capital International Index (MSCI World), Morgan Stanley Capital International
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 1,557 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 1,093 stocks of
companies in 20 countries located in Europe, Australasia, New Zealand and the
Far East. The LB 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 LBMI 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. T-Bill 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 month end nearest 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, 1997. The Donahue yields
represent the average yields of 815 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.
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice. The securities cited
may not represent future holdings and should not be considered as a
recommendation to purchase or sell a particular security. See the prospectus for
complete descriptions of investment objectives, policies, risks and permissible
investments.
41
<PAGE>
Notes to Schedules of Investments
(a) Non-income producing security.
(b) Pursuant to Rule 144A of the Securities Act of 1933, these securities may
only be resold in transactions exempt from registration, normally to
qualified institutional buyers. At March 31, 1997, these securities
amounted to $493,332; $156,352; $514,380; $1,991,348; and $3,547,264 or
0.6%, 0.3%, 0.2%, 2.0%, and 5.8% 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) Adjustable rate mortgage coupon. The stated rate represents the rate at
March 31, 1997.
(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) At March 31, 1997, all or a portion of this security was pledged to cover
collateral requirements for futures, options and TBA's.
Abbreviations:
ADR -- American Depositary Receipt
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guarantee Insurance Corporation
GDR -- Global Depository Receipt
G.O. -- General Obligation
MBIA -- Municipal Bond Investors Assurance
Corporation
REMIC -- Real Estate Mortgage Investment Conduit
VRDN -- Variable Rate Demand Note
Rts. -- Rights
WT -- Warrant
Currency Terms:
BEL -- Belgian Franc
CAD -- Canadian Dollar
DEM -- Deutsche Mark
DKK -- Danish Krone
NLG -- Netherlands Guilder
42
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s)
indicated (March 31, 1997 data is unaudited)
GE International Equity Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Class B
- -----------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95 9/30/94 3/31/97 9/30/96(c) 9/30/95 9/30/94
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 3/2/94 -- -- -- 3/2/94
Net asset value, beginning of period $17.65 $15.87 $15.18 $15.00 $17.47 $15.77 $15.13 $15.00
Income (loss) from investment operations:
Net investment income (0.03) 0.07 0.09 0.06 (0.06) 0.05 0.01 0.00
Net realized and unrealized
gains (losses) on investments 0.97 1.74 0.64 0.12 0.95 1.65 0.64 0.13
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.94 1.81 0.73 0.18 0.89 1.70 0.65 0.13
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.06 0.03 0.04 0.00 0.00 0.00 0.01 0.00
Net realized gains 0.50 0.00 0.00 0.00 0.50 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.56 0.03 0.04 0.00 0.50 0.00 0.01 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.03 $17.65 $15.87 $15.18 $17.86 $17.47 $15.77 $15.13
===================================================================================================================================
TOTAL RETURN (a) 5.38% 11.39% 4.87% 1.20% 5.14% 10.78% 4.33% 0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $11,962 $8,462 $3,948 $25 $339 $272 $57 $34
Ratio of net investment income
to average net assets* (0.21%) 0.43% 1.28% 1.01% (0.72%) 0.28% 0.10% 0.47%
Ratio of expenses to average net assets* 1.60% 1.59% 1.60% 1.60% 2.10% 2.10% 2.10% 2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.60% 1.66% 1.95% 1.93% 4.29% 3.50% 3.50% 2.43%
Portfolio turnover rate 28% 36% 27% 6% 28% 36% 27% 6%
Average brokerage commissions (b) $.002 $.031 N/A N/A $.002 $.031 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95 9/30/94 3/31/97 9/30/96(c) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 3/2/94 -- -- -- 3/2/94
Net asset value, beginning of period $17.65 $15.88 $15.19 $15.00 $17.76 $15.94 $15.22 $15.00
Income (loss) from investment operations:
Net investment income (0.01) 0.11 0.12 0.00 0.03 0.17 0.12 0.10
Net realized and unrealized
gains (losses) on investments 0.98 1.72 0.65 0.19 0.98 1.73 0.70 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.97 1.83 0.77 0.19 1.01 1.90 0.82 0.22
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.03 0.06 0.08 0.00 0.14 0.08 0.10 0.00
Net realized gains 0.50 0.00 0.00 0.00 0.50 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.53 0.06 0.08 0.00 0.64 0.08 0.10 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.09 $17.65 $15.88 $15.19 $18.13 $17.76 $15.94 $15.22
====================================================================================================================================
TOTAL RETURN (a) 5.61% 11.54% 5.16% 1.27% 5.74% 11.97% 5.45% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,805 $3,230 $1,262 $481 $65,627 $63,225 $32,907 $26,460
Ratio of net investment income
to average net assets* 0.04% 0.68% 0.83% 0.66% 0.34% 0.99% 0.97% 1.52%
Ratio of expenses to average net assets* 1.35% 1.35% 1.35% 1.35% 1.03% 1.03% 1.07% 1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.51% 1.96% 2.75% 1.68% 1.03% 1.03% 1.18% 1.43%
Portfolio turnover rate 28% 36% 27% 6% 28% 36% 27% 6%
Average brokerage commissions (b) $.002 $.031 N/A N/A $.002 $.031 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
43
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1997 data is unaudited)
GE Global Equity Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94(d) 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 12/22/93 -- -- -- 12/22/93
Net asset value, beginning of period $22.01 $20.18 $19.34 $18.61 $21.87 $20.14 $19.32 $18.48
Income (loss) from investment operations:
Net investment income 0.04 0.02 0.10 0.03 (0.04) (0.04) 0.00 (0.01)
Net realized and unrealized
gains (losses) on investments 0.71 2.20 1.22 0.91 0.73 2.14 1.23 1.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.75 2.22 1.32 0.94 0.69 2.10 1.23 1.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.02 0.09 0.01 0.00 0.00 0.02 0.01
Net realized gains 1.29 0.37 0.39 0.20 1.29 0.37 0.39 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.29 0.39 0.48 0.21 1.29 0.37 0.41 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.47 $22.01 $20.18 $19.34 $21.27 $21.87 $20.14 $19.32
====================================================================================================================================
TOTAL RETURN (a) 3.39% 11.18% 7.16% 3.09% 3.13% 10.61% 6.62% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $857 $4,054 $2,811 $694 $713 $600 $356 $128
Ratio of net investment income/(loss)
to average net assets* (0.08%) 0.12% 0.47% 0.44% (0.58%) (0.34%) (0.11%) (0.08%)
Ratio of expenses to average net assets* 1.60% 1.60% 1.60% 1.60% 2.10% 2.10% 2.10% 2.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 3.41% 1.90% 2.17% 2.02% 3.36% 3.50% 3.50% 2.52%
Portfolio turnover rate 34% 46% 46% 26% 34% 46% 46% 26%
Average brokerage commissions (b) $.003 $.006 N/A N/A $.003 $.006 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 9/30/93(e) 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93 -- -- -- 11/29/93
Net asset value, beginning of period $22.18 $20.31 $19.40 $17.16 $15.00 $22.25 $20.37 $19.45 $17.49
Income (loss) from investment operations:
Net investment income 0.01 0.06 0.09 0.07 0.08 0.04 0.13 0.13 0.11
Net realized and unrealized
gains (losses) on investments 0.78 2.22 1.30 2.37 2.08 0.77 2.21 1.31 2.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.79 2.28 1.39 2.44 2.16 0.81 2.34 1.44 2.17
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.06 0.04 0.09 0.00 0.00 0.17 0.09 0.13 0.01
Net realized gains 1.29 0.37 0.39 0.20 0.00 1.29 0.37 0.39 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.35 0.41 0.48 0.20 0.00 1.46 0.46 0.52 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.62 $22.18 $20.31 $19.40 $17.16 $21.60 $22.25 $20.37 $19.45
====================================================================================================================================
TOTAL RETURN (a) 3.54% 11.44% 7.47% 14.28% 14.10% 3.64% 11.71% 7.76% 12.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $30,457 $28,682 $23,683 $20,432 $11,999 $16,963 $10,123 $9,785 $10,504
Ratio of net investment income/(loss)
to average net assets* 0.16% 0.33% 0.59% 0.52% 1.00% 0.43% 0.56% 0.84% 0.82%
Ratio of expenses to average net assets* 1.35% 1.35% 1.35% 1.31% 1.10% 1.10% 1.10% 1.10% 1.10%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.45% 1.60% 1.42% 1.77% 2.19% 1.10% 1.12% 1.75% 1.52%
Portfolio turnover rate 34% 46% 46% 26% 28% 34% 46% 46% 26%
Average brokerage commissions (b) $.003 $.006 N/A N/A N/A $.003 $.006 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
44
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s)
indicated (March 31, 1997 data is unaudited) GE Premier Growth Equity Fund
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Class A Class B Class C Class D
3/31/97 3/31/97 3/31/97 3/31/97
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Inception date 12/31/96 12/31/96 12/31/96 12/31/96
Net asset value, beginning of period $15.00 $15.00 $15.00 $15.00
Income (loss) from investment operations:
Net investment income 0.01 (0.01) 0.01 0.03
Net realized and unrealized
gains (losses) on investments (0.72) (0.72) (0.71) (0.72)
- --------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations (0.71) (0.73) (0.70) (0.69)
- --------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.00 0.00
Net realized gains 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------
Total distributions 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.29 $14.27 $14.30 $14.31
==============================================================================================================
TOTAL RETURN (a) (4.73%) (4.87%) (4.67%) (4.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $115 $106 $2,918 $4,486
Ratio of net investment income
to average net assets* 0.18% (0.32%) 0.47% 0.67%
Ratio of expenses to average net assets* 1.40% 1.90% 1.15% 0.90%
Ratio of expenses to average net assets
before voluntary expense limitation* 13.77% 14.68% 2.15% 1.18%
Portfolio turnover rate 8% 8% 8% 8%
Average brokerage commissions (b) $.049 $.049 $.049 $.049
- --------------------------------------------------------------------------------------------------------------
</TABLE>
[PHOTO OF BUILDING]
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
45
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s)
indicated (March 31, 1997 data is unaudited)
GE U.S. Equity Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95(c) 9/30/94(d) 3/31/97 9/30/96(c) 9/30/95(c) 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 12/22/93 -- -- -- 12/22/93
Net asset value, beginning of period $23.34 $20.28 $16.12 $16.48 $22.57 $19.71 $16.03 $16.41
Income (loss) from investment operations:
Net investment income 0.16 0.31 .34 3.23 0.08 0.19 0.21 0.24
Net realized and unrealized
gains (losses) on investments 2.32 3.34 3.91 (3.22) 2.25 3.25 3.84 (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.48 3.65 4.25 0.01 2.33 3.44 4.05 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.28 0.32 0.00 0.20 0.17 0.31 0.28 0.20
Net realized gains 2.19 0.27 0.09 0.17 2.19 0.27 0.09 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.47 0.59 0.09 0.37 2.36 0.58 0.37 0.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $23.35 $23.34 $20.28 $16.12 $22.54 $22.57 $19.71 $16.03
====================================================================================================================================
TOTAL RETURN (a) 10.63% 18.36% 26.52% (0.86%) 10.31% 17.78% 25.92% (0.09%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $36,302 $34,523 $15,148 $1,214 $9,548 $7,194 $1,563 $91
Ratio of net investment income
to average net assets* 1.03% 1.40% 1.85% 1.87% 0.53% 0.90% 1.29% 1.28%
Ratio of expenses to average net assets* 1.00% 1.00% 1.00% 1.00% 1.50% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.11% 1.15% 1.25% 1.46% 1.83% 2.08% 3.50% 1.96%
Portfolio turnover rate 22% 49% 43% 51% 22% 49% 43% 51%
Average brokerage commissions (b) $.065 $.045 N/A N/A $.065 $.045 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95(c) 9/30/94 9/30/93(e) 3/31/97 9/30/96(c) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93 -- -- -- 11/29/93
Net asset value, beginning of period $23.02 $19.98 $16.13 $16.35 $15.00 $23.03 $19.98 $16.16 $16.37
Income (loss) from investment operations:
Net investment income 0.05 0.36 0.37 1.00 0.12 0.19 0.40 0.38 0.32
Net realized and unrealized
gains (losses) on investments 2.42 3.30 3.86 (0.85) 1.23 2.32 3.31 3.88 (0.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.47 3.66 4.23 0.15 1.35 2.51 3.71 4.26 0.16
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.32 0.35 0.29 0.20 0.00 0.41 0.39 0.35 0.20
Net realized gains 2.19 0.27 0.09 0.17 0.00 2.19 0.27 0.09 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.51 0.62 0.38 0.37 0.00 2.60 0.66 0.44 0.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $22.98 $23.02 $19.98 $16.13 $16.35 $22.94 $23.03 $19.98 $16.16
====================================================================================================================================
TOTAL RETURN (a) 10.75% 18.70% 26.86% 0.88% 10.32% 10.91% 18.97% 27.14% 0.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $67,313 $50,035 $26,007 $16,382 $74,415 $168,277 $144,470 $128,247 $114,885
Ratio of net investment income
to average net assets* 1.28% 1.66% 2.12% 2.11% 1.86% 1.54% 1.90% 2.36% 2.27%
Ratio of expenses to
average net assets* 0.75% 0.75% 0.75% 0.62% 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of expenses to
average net assets
before voluntary expense limitation* 0.92% 1.06% 1.19% 1.21% 1.34% 0.54% 0.59% 0.71% 0.96%
Portfolio turnover rate 22% 49% 43% 51% 15% 22% 49% 43% 51%
Average brokerage commissions (b) $.065 $.045 N/A N/A N/A $.065 $.045 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
46
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s)
indicated (March 31, 1997 data is unaudited) GE Strategic Investment Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95(c) 9/30/94(d) 3/31/97 9/30/96(c) 9/30/95(c) 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 12/22/93 -- -- -- 12/22/93
Net asset value, beginning of period $20.33 $18.43 $15.71 $16.21 $20.04 $18.26 $15.62 $16.14
Income (loss) from investment operations:
Net investment income 0.33 0.51 0.52 0.48 0.20 0.41 0.40 0.27
Net realized and unrealized
gains (losses) on investments 0.80 1.90 2.57 (0.65) 0.87 1.87 2.58 (0.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.13 2.41 3.09 (0.17) 1.07 2.28 2.98 (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.47 0.43 0.37 0.27 0.33 0.42 0.34 0.27
Net realized gains 0.25 0.08 0.00 0.06 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.72 0.51 0.37 0.33 0.58 0.50 0.34 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.74 $20.33 $18.43 $15.71 $20.53 $20.04 $18.26 $15.62
====================================================================================================================================
TOTAL RETURN (a) 5.52% 13.35% 20.12% (1.32%) 5.31% 12.73% 19.53% (1.25%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $32,573 $25,232 $8,778 $1,104 $4,318 $3,701 $882 $150
Ratio of net investment income
to average net assets* 2.39% 2.60% 2.95% 2.59% 1.88% 2.11% 2.46% 1.92%
Ratio of expenses to average net assets* 1.15% 1.12% 1.15% 1.15% 1.65% 1.65% 1.65% 1.65%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.15% 1.15% 1.19% 1.58% 1.88% 2.10% 3.50% 2.08%
Portfolio turnover rate 57% 93% 98% 68% 57% 93% 98% 68%
Average brokerage commissions (b) $.025 $.046 N/A N/A $.025 $.046 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96(c) 9/30/95(c) 9/30/94 9/30/93(e) 3/31/97 9/30/96(c) 9/30/95 9/30/94
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93 -- -- -- 11/29/93
Net asset value, beginning of period $20.38 $18.46 $15.72 $16.08 $15.00 $20.44 $18.49 $15.74 $16.02
Income (loss) from investment
operations:
Net investment income 0.22 0.54 0.53 0.44 0.23 0.27 0.63 0.55 0.45
Net realized and unrealized
gains (losses) on investments 0.94 1.92 2.59 (0.48) 0.85 0.92 1.90 2.62 (0.40)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.16 2.46 3.12 (0.04) 1.08 1.19 2.53 3.17 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.49 0.46 0.38 0.26 0.00 0.56 0.50 0.42 0.27
Net realized gains 0.25 0.08 0.00 0.06 0.00 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.74 0.54 0.38 0.32 0.00 0.81 0.58 0.42 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.80 $20.38 $18.46 $15.72 $16.08 $20.82 $20.44 $18.49 $15.74
====================================================================================================================================
TOTAL RETURN (a) 5.64% 13.58% 20.35% (0.27%) 8.06% 5.79% 13.95% 20.70% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $31,684 $26,467 $17,821 $13,018 $12,780 $30,316 $36,162 $18,665 $17,159
Ratio of net investment income
to average net assets* 2.62% 2.81% 3.21% 2.62% 2.68% 2.86% 3.16% 3.46% 2.93%
Ratio of expenses to
average net assets* 0.90% 0.90% 0.90% 0.85% 0.65% 0.65% 0.58% 0.65% 0.65%
Ratio of expenses to
average net assets
before voluntary expense
limitation* 0.91% 1.05% 1.03% 1.33% 1.65% 0.65% 0.59% 0.97% 1.08%
Portfolio turnover rate 57% 93% 98% 68% 20% 57% 93% 98% 68%
Average brokerage commissions (b) $.025 $.046 N/A N/A N/A $.025 $.046 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
47
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1997 data is unaudited)
GE Tax-Exempt Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94(d) 3/31/97 9/30/96 9/30/95 9/30/94
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 12/22/93 -- -- -- 12/22/93
Net asset value, beginning of period $11.67 $11.77 $11.32 $12.31 $11.68 $11.78 $11.32 $12.30
Income (loss) from investment operations:
Net investment income 0.25 0.51 0.53 0.39 0.22 0.45 0.47 0.34
Net realized and unrealized
gains (losses) on investments 0.00 (0.10) 0.46 (1.00) 0.01 (0.10) 0.47 (0.98)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.25 0.41 0.99 (0.61) 0.23 0.35 0.94 (0.64)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.25 0.51 0.54 0.38 0.22 0.45 0.48 0.34
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.25 0.51 0.54 0.38 0.22 0.45 0.48 0.34
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.67 $11.67 $11.77 $11.32 $11.69 $11.68 $11.78 $11.32
====================================================================================================================================
TOTAL RETURN (a) 2.12% 3.52% 8.96% (5.40%) 1.95% 3.01% 8.51% (5.28%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $541 $537 $389 $53 $1,243 $1,318 $689 $61
Ratio of net investment income
to average net assets* 4.29% 4.33% 4.54% 4.34% 3.78% 3.83% 3.81% 3.68%
Ratio of expenses to average net assets* 0.75% 1.02% 1.10% 1.10% 1.25% 1.52% 1.60% 1.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.29% 2.85% 3.00% 1.58% 1.94% 2.41% 3.50% 2.08%
Portfolio turnover rate 70% 145% 86% 23% 70% 145% 86% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 9/30/93(e) 3/31/97 9/30/96 9/30/95 9/30/94
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93 -- -- -- 11/29/93
Net asset value, beginning of period $11.67 $11.77 $11.32 $12.36 $12.00 $11.67 $11.78 $11.32 $12.11
Income (loss) from investment operations:
Net investment income 0.26 0.53 0.57 0.54 0.33 0.28 0.58 0.60 0.47
Net realized and unrealized
gains (losses) on investments 0.01 (0.09) 0.45 (1.06) 0.36 0.01 (0.12) 0.46 (0.80)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.27 0.44 1.02 (0.52) 0.69 0.29 0.46 1.06 (0.33)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.26 0.54 0.57 0.52 0.33 0.28 0.57 0.60 0.46
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.26 0.54 0.57 0.52 0.33 0.28 0.57 0.60 0.46
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.68 $11.67 $11.77 $11.32 $12.36 $11.68 $11.67 $11.78 $11.32
====================================================================================================================================
TOTAL RETURN (a) 2.34% 3.77% 9.23% (4.30%) 5.48% 2.46% 3.95% 9.59% (2.80%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $7,638 $7,728 $6,816 $6,917 $10,136 $3,032 $2,960 $3,905 $4,995
Ratio of net investment income
to average net assets* 4.54% 4.57% 4.94% 4.41% 3.56% 4.80% 4.83% 5.20% 4.65%
Ratio of expenses to average net assets* 0.50% 0.78% 0.85% 0.79% 0.60% 0.25% 0.53% 0.60% 0.60%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.84% 1.34% 1.18% 1.33% 1.53% 0.55% 1.03% 1.47% 1.08%
Portfolio turnover rate 70% 145% 86% 23% 29% 70% 145% 86% 23%
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
48
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1997 data is unaudited)
GE Fixed Income Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94(d) 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 12/22/93 -- -- -- 12/22/93
Net asset value, beginning of period $11.69 $11.91 $11.27 $12.19 $11.70 $11.91 $11.26 $12.15
Income (loss) from investment operations:
Net investment income 0.34 0.65 0.73 0.47 0.31 0.60 0.65 0.42
Net realized and unrealized
gains (losses) on investments (0.07) (0.19) 0.63 (0.84) (0.06) (0.20) 0.66 (0.81)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.27 0.46 1.36 (0.37) 0.25 0.40 1.31 (0.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.34 0.68 0.72 0.47 0.31 0.61 0.66 0.42
Net realized gains 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.34 0.68 0.72 0.55 0.31 0.61 0.66 0.50
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.62 $11.69 $11.91 $11.27 $11.64 $11.70 $11.91 $11.26
====================================================================================================================================
TOTAL RETURN (a) 2.32% 3.91% 12.48% (3.02%) 2.15% 3.41% 11.98% (3.31%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $15,020 $15,653 $5,400 $26,023 $1,518 $1,673 $234 $65
Ratio of net investment income
to average net assets* 5.75% 5.66% 6.22% 5.37% 5.24% 5.19% 5.57% 4.83%
Ratio of expenses to average net assets* 1.10% 1.05% 1.08% 1.10% 1.60% 1.60% 1.60% 1.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.13% 1.12% 1.18% 1.51% 2.13% 2.44% 3.50% 2.01%
Portfolio turnover rate 128% 275% 315% 298% 128% 275% 315% 298%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 9/30/93(e) 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93 -- -- -- 11/29/93
Net asset value, beginning of period $11.70 $11.92 $11.27 $12.31 $12.00 $11.69 $11.92 $11.27 $12.17
Income (loss) from investment operations:
Net investment income 0.35 0.69 0.73 0.61 0.36 0.37 0.72 0.77 0.55
Net realized and unrealized
gains (losses) on investments (0.06) (0.21) 0.67 (0.96) 0.31 (0.06) (0.22) 0.65 (0.83)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.29 0.48 1.40 (0.35) 0.67 0.31 0.50 1.42 (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.35 0.70 0.75 0.61 0.36 0.37 0.73 0.77 0.54
Net realized gains 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.00 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.35 0.70 0.75 0.69 0.36 0.37 0.73 0.77 0.62
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.64 $11.70 $11.92 $11.27 $12.31 $11.63 $11.69 $11.92 $11.27
====================================================================================================================================
TOTAL RETURN (a) 2.52% 4.10% 12.81% (2.97%) 5.24% 2.66% 4.32% 13.10% (2.34%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $30,343 $28,115 $21,401 $13,600 $11,485 $14,715 $19,098 $6,642 $2,732
Ratio of net investment income
to average net assets* 5.98% 5.84% 6.37% 5.22% 3.87% 6.21% 6.14% 6.57% 5.40%
Ratio of expenses to average net assets* 0.85% 0.85% 0.85% 0.79% 0.60% 0.60% 0.55% 0.59% 0.58%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.92% 0.99% 0.95% 1.26% 1.63% 0.60% 0.57% 2.50% 1.01%
Portfolio turnover rate 128% 275% 315% 298% 68% 128% 275% 315% 298%
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
49
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the period(s)
indicated (March 31, 1997 data is unaudited)
GE Short-Term Government Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 3/2/94 -- -- -- 3/2/94
Net asset value, beginning of period $11.78 $11.91 $11.72 $12.00 $11.78 $11.90 $11.72 $12.00
Income (loss) from investment operations:
Net investment income 0.31 0.60 0.64 0.35 0.28 0.56 0.59 0.33
Net realized and unrealized
gains (losses) on investments (0.02) (0.06) 0.21 (0.30) (0.02) (0.05) 0.21 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.29 0.54 0.85 0.05 0.26 0.51 0.80 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.31 0.61 0.66 0.33 0.29 0.57 0.62 0.30
Net realized gains 0.01 0.06 0.00 0.00 0.01 0.06 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.32 0.67 0.66 0.33 0.30 0.63 0.62 0.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.75 $11.78 $11.91 $11.72 $11.74 $11.78 $11.90 $11.72
====================================================================================================================================
TOTAL RETURN (a) 2.57% 4.63% 7.48% 0.40% 2.31% 4.35% 7.01% 0.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $616 $340 $285 $35 $88 $145 $83 $25
Ratio of net investment income
to average net assets* 5.26% 5.04% 5.27% 4.75% 4.85% 4.67% 5.07% 4.38%
Ratio of expenses to average net assets* 0.95% 0.95% 0.95% 0.95% 1.30% 1.30% 1.30% 1.30%
Ratio of expenses to average net assets
before voluntary expense limitation* 2.76% 3.00% 3.00% 1.71% 7.28% 3.35% 3.35% 2.06%
Portfolio turnover rate 94% 201% 415% 146% 94% 201% 415% 146%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class C Class D
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 3/31/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- 3/2/94 -- -- -- 3/2/94
Net asset value, beginning of period $11.79 $11.91 $11.72 $12.00 $11.78 $11.90 $11.72 $12.00
Income (loss) from investment operations:
Net investment income 0.32 0.63 0.66 0.36 0.34 0.66 0.69 0.39
Net realized and unrealized
gains (losses) on investments (0.02) (0.05) 0.22 (0.30) (0.03) (0.05) 0.21 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.30 0.58 0.88 0.06 0.31 0.61 0.90 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.33 0.64 0.69 0.34 0.34 0.67 0.72 0.36
Net realized gains 0.01 0.06 0.00 0.00 0.01 0.06 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.34 0.70 0.69 0.34 0.35 0.73 0.72 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.75 $11.79 $11.91 $11.72 $11.74 $11.78 $11.90 $11.72
====================================================================================================================================
TOTAL RETURN (a) 2.61% 4.98% 7.74% 0.53% 2.74% 5.24% 7.92% 0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,819 $3,653 $2,437 $287 $7,530 $7,786 $8,048 $7,822
Ratio of net investment income
to average net assets* 5.46% 5.28% 5.62% 5.18% 5.69% 5.54% 5.89% 5.32%
Ratio of expenses to average net assets* 0.70% 0.70% 0.70% 0.70% 0.45% 0.45% 0.45% 0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 1.10% 1.34% 1.84% 1.46% 0.72% 0.83% 0.98% 1.21%
Portfolio turnover rate 94% 201% 415% 146% 94% 201% 415% 146%
</TABLE>
- ----------
See Notes to Financial Highlights on page 51 and Notes to Financial Statements
50
<PAGE>
Financial Highlights (continued)
Selected data based on a share outstanding throughout the
period(s) indicated (March 31, 1997 data is unaudited)
GE Money Market Fund
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
3/31/97 9/30/96 9/30/95 9/30/94 9/30/93(e)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 1/5/93
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income (loss) from investment operations:
Net investment income 0.02 0.05 0.05 0.03 0.02
Net realized and unrealized
gains (losses) on investments 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.02 0.05 0.05 0.03 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.02 0.05 0.05 0.03 0.02
Net realized gains 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.02 0.05 0.05 0.03 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
====================================================================================================================================
TOTAL RETURN (a) 2.50% 5.18% 5.52% 3.31% 1.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $104,626 $85,842 $71,664 $53,607 $17,197
Ratio of net investment income
to average net assets* 4.97% 5.06% 5.32% 3.41% 2.27%
Ratio of expenses to average net assets* 0.45% 0.45% 0.45% 0.45% 0.45%
Ratio of expenses to average net assets
before voluntary expense limitation* 0.58% 0.66% 0.70% 1.04% 1.48%
</TABLE>
- ----------
Notes to Financial Highlights
(a) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains, and assume no sales charge.
Had the advisor not absorbed a portion of expenses, total return would have
been lower. Periods less than one year are not annualized.
(b) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. Mark-ups, mark-downs and spreads on shares
traded on a principal basis are not included unless they are disclosed on
confirmations prepared in accordance with rule 10b-10 under the 1934 Act.
(c) Per share data is based on average shares outstanding during the period.
Certain reclassifications have been made to prior year balances to conform
to the classifications used in 1996.
(d) 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.
(e) Per share information is for the period since inception through September
30, 1993, and the total return information is for the period February 22,
1993, commencement of investment operations, through September 30, 1993,
except for GE Tax-Exempt Fund, which is from February 26, 1993 through
September 30, 1993.
* Annualized for periods less than one year.
- ----------
See Notes to Financial Statements
51
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S.
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND** FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost
$69,618,366; $40,459,987; $7,154,782;
$220,762,142; $75,316,829; $11,677,288;
$58,609,166; $12,470,116; and $0, respectively) $ 78,491,877 $ 46,365,126 $ 6,742,162 $ 269,703,838
Short term investments (at amortized cost) 3,230,000 1,620,000 958,837 11,835,000
Cash 43,850 43,406 16,593 34,899
Foreign currency (cost $705,251; $871,296; $0, $680;
$125,909; $0; $119; $0; and $0, respectively) 710,515 877,061 0 652
Receivable for investments sold 446,714 210,234 0 566,084
Income receivables 244,823 122,505 7,472 432,102
Receivable for fund shares sold 72,960 65,027 104,370 454,745
Deferred organizational costs 39,149 17,122 14,076 26,657
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 83,279,888 49,320,481 7,843,510 283,053,977
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market
(Premium received $0, $0, $0, $0, $904,
$0, $1,664, $0, and $0, respectively) 0 0 0 0
Distributions payable to shareholders 0 0 0 0
Payable for investments purchased 415,364 242,646 199,121 769,821
Payable for fund shares repurchased 20,567 24,692 0 528,638
Payable to GEIM 111,304 62,960 19,794 149,670
Variation margin payable 0 0 0 166,250
Payable to custodian 0 0 0 0
Payable on forward foreign currency contracts 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 547,235 330,298 218,915 1,614,379
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 82,732,653 $ 48,990,183 $ 7,624,595 $ 281,439,598
====================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in $ 73,024,762 $ 42,158,855 $ 8,058,669 $ 220,990,908
Undistributed (overdistributed) net investment income 105,807 3,543 9,493 926,746
Accumulated net realized gain (loss) 732,977 919,819 (30,947) 10,995,836
Net unrealized appreciation / (depreciation) on:
Investments 8,873,511 5,905,139 (412,620) 48,941,696
Futures 0 0 0 (414,750)
Written options 0 0 0 0
Foreign currency transactions (4,404) 2,827 0 (838)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 82,732,653 $ 48,990,183 $ 7,624,595 $ 281,439,598
====================================================================================================================================
Class A:
Net assets $ 11,961,918 $ 856,762 $ 114,743 $ 36,301,834
Shares outstanding ($.001 par value) 663,348 39,912 8,029 1,554,546
Net asset value per share $ 18.03 $ 21.47 $ 14.29 $ 23.35
Maximum offering price per share $ 18.93 $ 22.54 $ 15.00 $ 24.51
Class B:
Net assets $ 338,705 $ 712,633 $ 106,179 $ 9,547,796
Shares outstanding ($.001 par value) 18,961 33,499 7,439 423,504
Net asset value per share* $ 17.86 $ 21.27 $ 14.27 $ 22.54
Class C:
Net assets $ 4,805,425 $ 30,457,193 $ 2,917,494 $ 67,312,515
Shares outstanding ($.001 par value) 265,574 1,408,998 204,017 2,929,265
Net asset value per share $ 18.09 $ 21.62 $ 14.30 $ 22.98
Class D:
Net assets $ 65,626,605 $ 16,963,595 $ 4,486,179 $ 168,277,453
Shares outstanding ($.001 par value) 3,620,698 785,274 313,536 7,335,628
Net asset value per share $ 18.13 $ 21.60 $ 14.31 $ 22.94
</TABLE>
- ----------
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** For the period December 31, 1996 (inception) thru March 31, 1997.
*** GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements
52
<PAGE>
<TABLE>
<CAPTION>
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>
$ 88,440,071 $ 11,817,855 $ 57,753,585 $ 12,394,770 $ 0
12,107,072 0 7,223,701 550,000 105,018,181
0 0 56,952 60,535 46,388
127,438 0 123 0 0
787,598 518,706 1,547,981 200,130 0
515,489 191,807 772,406 99,759 223,443
125,271 5,948 120,254 42,338 309,438
17,123 13,942 20,300 39,148 13,941
- ---------------------------------------------------------------------------------------------------------------------------
102,120,062 12,548,258 67,495,302 13,386,680 105,611,391
- ---------------------------------------------------------------------------------------------------------------------------
1,151 0 2,118 0 0
0 8,690 59,364 12,184 86,266
3,018,144 0 5,647,935 274,883 0
123,288 0 125,798 2,402 845,983
72,605 16,734 51,603 44,124 52,702
0 0 0 0 0
13,484 68,837 0 0 0
0 0 12,533 0 0
- ---------------------------------------------------------------------------------------------------------------------------
3,228,672 94,261 5,899,351 333,593 984,951
- ---------------------------------------------------------------------------------------------------------------------------
$ 98,891,390 $ 12,453,997 $ 61,595,951 $ 13,053,087 $ 104,626,440
===========================================================================================================================
$ 83,593,962 $ 12,870,809 $ 65,934,686 $ 13,154,692 $ 104,602,966
690,266 32,503 3,848 (6,596) 32,532
1,483,875 (589,882) (3,471,927) (19,663) (9,058)
13,123,242 140,567 (855,581) (75,346) 0
0 0 0 0 0
(247) 0 (454) 0 0
292 0 (14,621) 0 0
- ---------------------------------------------------------------------------------------------------------------------------
$ 98,891,390 $ 12,453,997 $ 61,595,951 $ 13,053,087 $ 104,626,440
===========================================================================================================================
$ 32,572,979 $ 540,684 $ 15,020,260 $ 615,681 $ 0
1,570,283 46,313 1,292,261 52,418 0
$ 20.74 $ 11.67 $ 11.62 $ 11.75 $ 0
$ 21.77 $ 12.19 $ 12.14 $ 12.05 $ 0
$ 4,318,071 $ 1,243,461 $ 1,517,658 $ 87,677 $ 0
210,337 106,386 130,385 7,469 0
$ 20.53 $ 11.69 $ 11.64 $ 11.74 $ 0
$ 31,684,049 $ 7,638,104 $ 30,342,627 $ 4,819,197 $ 104,626,440
1,522,940 654,161 2,607,867 410,005 104,635,570
$ 20.80 $ 11.68 $ 11.64 $ 11.75 $ 1.00
$ 30,316,291 $ 3,031,748 $ 14,715,406 $ 7,530,532 $ 0
1,455,971 259,612 1,265,316 641,270 0
$ 20.82 $ 11.68 $ 11.63 $ 11.74 $ 0
</TABLE>
53
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended March 31, 1997 (unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S.
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND* FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 502,438 $ 319,404 $ 13,290 $ 2,414,736
Interest 97,490 57,006 12,748 303,093
Less: Foreign taxes withheld (56,223) (22,247) (697) (9,795)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income 543,705 354,163 25,341 2,708,034
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory and administration fees 316,490 174,983 9,398 534,387
Distribution fees
Class A 25,334 1,925 131 81,392
Class B 1,497 3,295 256 43,644
Class C 5,034 37,493 862 75,943
Blue Sky fees
Class A 3,296 3,921 2,310 5,654
Class B 2,617 3,126 2,310 3,914
Class C 3,218 8,064 2,310 7,435
Class D 9,615 4,923 2,311 18,753
Transfer agent fees
Class A 5,570 3,850 924 9,886
Class B 923 1,728 924 9,829
Class C 3,483 38,665 924 40,835
Class D 24,202 11,113 924 5,624
Trustees' fees 2,275 1,308 237 7,153
Custody and accounting expenses 4,458 2,564 499 14,029
Professional fees 22,600 12,987 2,288 71,049
Registration expenses 3,209 1,845 337 10,093
Amortization of deferred organization
expense 9,147 9,675 924 14,968
Other expenses 8,079 4,646 826 25,408
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 451,047 326,111 28,695 979,996
Less: Expenses waived or borne by
the advisor (6,456) (26,467) (12,847) (111,594)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 444,591 299,644 15,848 868,402
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 99,114 54,519 9,493 1,839,632
====================================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Realized gain (loss) on:
Investments 1,269,557 1,104,361 (30,947) 12,204,144
Futures 0 0 0 1,285,548
Written options 0 0 0 1,401
Foreign currency transactions (47,265) (40,448) 0 (2,526)
Increase (decrease) in unrealized
appreciation/depreciation on:
Investments 3,136,472 423,566 (412,620) 10,291,996
Futures 0 0 0 (533,850)
Written options 0 0 0 0
Foreign currency transactions 2,895 3,509 0 (943)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 4,361,659 1,490,988 (443,567) 23,245,770
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 4,460,773 $ 1,545,507 $ (434,074) $25,085,402
====================================================================================================================================
</TABLE>
* For the period December 31, 1996 (inception) thru March 31, 1997.
** GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements
54
<PAGE>
<TABLE>
<CAPTION>
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>
$ 423,435 $ 0 $ 23,998 $ 0 $ 0
1,299,875 312,942 2,149,634 387,175 2,496,511
(11,923) 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
1,711,387 312,942 2,173,632 387,175 2,496,511
- ------------------------------------------------------------------------------------------------------------------------------------
169,931 22,054 111,579 18,896 115,166
65,552 1,359 35,991 1,180 0
20,541 6,269 7,986 448 0
37,870 9,737 37,227 5,403 0
4,610 3,539 6,531 3,287 0
3,237 3,274 3,139 2,852 0
5,587 5,785 4,464 4,213 17,245
7,069 4,460 4,588 6,038 0
18,951 591 3,215 713 0
5,049 1,000 1,928 236 0
23,648 7,752 21,436 2,179 81,765
25,402 224 5,365 533 0
2,771 374 1,900 360 2,570
5,430 733 3,723 707 5,045
27,521 3,709 18,890 3,579 25,518
3,908 527 2,682 511 3,627
9,675 7,911 11,439 9,147 7,912
9,837 1,328 6,755 1,281 9,125
- ------------------------------------------------------------------------------------------------------------------------------------
446,589 80,626 288,838 61,563 267,973
(6,835) (47,507) (16,410) (26,172) (60,685)
- ------------------------------------------------------------------------------------------------------------------------------------
439,754 33,119 272,428 35,391 207,288
- ------------------------------------------------------------------------------------------------------------------------------------
1,271,633 279,823 1,901,204 351,784 2,289,223
====================================================================================================================================
1,709,546 20,065 295,456 5,712 (200)
994 0 1,988 0 0
1,147 0 2,461 0 0
(8,175) 0 152,237 0 0
2,136,142 (12,193) (739,485) (27,050) 0
0 0 0 0 0
(247) 0 (454) 0 0
998 0 (23,847) 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3,840,405 7,872 (311,644) (21,338) (200)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,112,038 $ 287,695 $ 1,589,560 $ 330,446 $ 2,289,023
====================================================================================================================================
</TABLE>
55
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S.
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Period Ended Six Months Ended Year Ended
March 31, 1997 September March 31,1997 September March 31, 1997* March 31, 1997 September
(unaudited) 30, 1996 (unaudited) 30, 1996 (unaudited) (unaudited) 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income $ 99,114 $ 536,695 $ 54,519 $ 137,419 $ 9,493 $1,839,632 $ 3,718,848
Net realized gain
(loss) on investments,
futures, written
options, and
foreign currency
transactions 1,222,292 2,070,867 1,063,913 2,565,385 (30,947) 13,488,567 21,400,380
Net increase (decrease)
in unrealized
appreciation/
depreciation 3,139,367 3,637,837 427,075 1,437,616 (412,620) 9,757,203 10,460,359
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations 4,460,773 6,245,399 1,545,507 4,140,420 (434,074) 25,085,402 35,579,587
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Net investment income
Class A (31,255) (6,640) 0 (2,429) 0 (332,785) (262,767)
Class B 0 0 0 0 0 (58,927) (33,028)
Class C (6,212) (5,998) (75,298) (47,344) 0 (758,606) (515,508)
Class D (492,285) (206,019) (111,661) (29,722) 0 (2,607,415) (2,441,173)
Net realized gains
Class A (262,419) 0 (41,620) (54,657) 0 (2,630,802) (220,116)
Class B (8,157) 0 (36,858) (7,141) 0 (765,822) (29,002)
Class C (106,194) 0 (1,688,506) (439,601) 0 (5,196,483) (397,494)
Class D (1,792,954) 0 (832,366) (126,339) 0 (14,080,728) (1,698,965)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (2,699,476) (218,657) (2,786,309) (707,233) 0 (26,431,568) (5,598,053)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in
net assets from
operations and
distributions 1,761,297 6,026,742 (1,240,802) 3,433,187 (434,074) (1,346,166) 29,981,534
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale
of shares
Class A 4,106,843 4,999,853 265,852 1,784,436 120,390 10,027,635 20,169,488
Class B 66,746 264,006 118,900 248,489 111,533 2,074,280 5,416,144
Class C 1,744,293 2,057,845 3,386,350 6,612,036 3,145,003 16,244,760 22,892,916
Class D 31,529,240 46,890,336 7,679,290 4,132,262 4,703,150 23,548,676 64,219,284
Value of distributions
reinvested
Class A 293,144 6,640 41,520 56,966 0 2,963,444 483,588
Class B 6,989 0 36,754 7,140 0 808,910 62,916
Class C 107,547 5,587 1,735,843 477,266 0 5,853,741 897,146
Class D 2,285,228 206,019 944,022 156,060 0 16,688,105 4,140,136
Cost of shares redeemed
Class A (1,127,842) (1,078,451) (3,490,068) (903,662) 0 (11,031,571) (4,687,102)
Class B (14,250) (65,189) (24,353) (53,819) 0 (454,719) (409,610)
Class C (377,475) (327,094) (2,598,277) (4,463,175) (21,407) (4,256,077) (5,137,572)
Class D (32,838,658) (21,970,397) (1,324,203) (4,662,441) 0 (15,903,440) (72,772,334)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from share
transactions 5,781,805 30,989,155 6,771,630 3,391,558 8,058,669 46,563,744 35,275,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 7,543,102 37,015,897 5,530,828 6,824,745 7,624,595 45,217,578 65,256,534
NET ASSETS
Beginning of period 75,189,551 38,173,654 43,459,355 36,634,610 0 236,222,020 170,965,486
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $82,732,653 $75,189,551 $48,990,183 $43,459,355 $7,624,595 $281,439,598 $236,222,020
====================================================================================================================================
Undistributed (overdistributed)
net investment income,
end of period $ 105,807 $ 484,828 $ 3,543 $ 107,597 $ 9,493 $ 926,746 $ 2,857,691
</TABLE>
* For the period December 31, 1996 (inception) thru March 31, 1997.
** GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements
56 &
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE
STRATEGIC TAX- FIXED SHORT-TERM MONEY
INVESTMENT EXEMPT INCOME GOVERNMENT MARKET
FUND FUND FUND FUND FUND**
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30,
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,271,633 $2,018,226 $ 279,823 $ 546,656 $1,901,204 $3,244,634 $ 351,784 $625,423 $2,289,223 $4,151,611
1,703,512 1,002,244 20,065 57,428 452,142 (1,167,977) 5,712 (1,342) (200) (5,488)
2,136,893 5,583,704 (12,193) (157,166) (763,786) (600,391) (27,050) (58,761) 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
5,112,038 8,604,174 287,695 446,918 1,589,560 1,476,266 330,446 565,320 2,289,023 4,146,123
- ----------------------------------------------------------------------------------------------------------------------------------
(461,097) (224,561) (11,455) (20,080) (418,928) (709,900) (12,654) (17,871) 0 0
(63,980) (36,223) (23,296) (43,346) (42,454) (57,106) (2,648) (6,475) 0 0
(691,773) (480,651) (173,959) (333,411) (900,371) (1,490,082) (121,478) (169,713) (2,289,223) (4,151,611)
(1,079,566) (515,952) (71,113) (149,794) (567,528) (1,011,836) (225,831) (442,799) 0 0
(243,915) (44,020) 0 0 0 0 (468) (1,457) 0 0
(48,212) (7,310) 0 0 0 0 (143) (405) 0 0
(353,335) (89,301) 0 0 0 0 (5,468) (13,646) 0 0
(478,496) (88,357) 0 0 0 0 (9,662) (33,443) 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
(3,420,374) (1,486,375) (279,823) (546,631) (1,929,281) (3,268,924) (378,352) (685,809) (2,289,223) (4,151,611)
- ----------------------------------------------------------------------------------------------------------------------------------
1,691,664 7,117,799 7,872 (99,713) (339,721) (1,792,658) (47,906) (120,489) (200) (5,488)
- ----------------------------------------------------------------------------------------------------------------------------------
14,086,393 17,883,706 4,173 184,398 2,477,573 14,465,090 353,280 729,588 0 0
644,764 2,827,055 109,850 910,235 140,452 1,637,270 1,508 89,871 0 0
5,831,703 8,576,408 530,281 2,158,514 5,067,765 10,046,924 1,412,039 1,743,456 114,082,444 177,814,977
7,116,788 25,183,286 25 0 4,261,135 20,655,949 4,700,097 1,694,811 0 0
703,419 268,659 5,847 10,092 412,744 690,901 11,373 14,905 0 0
111,422 42,201 16,965 28,592 38,596 47,491 1,543 4,689 0 0
1,017,042 553,077 144,346 272,411 735,237 1,206,983 117,554 174,763 2,179,275 3,800,372
1,558,067 472,353 70,871 147,775 568,867 991,882 227,163 469,809 0 0
(7,854,385) (3,072,661) (6,416) (42,587) (3,438,536) (4,397,297) (85,800) (684,827) 0 0
(221,581) (281,702) (202,692) (289,191) (327,727) (211,360) (60,504) (30,407) 0 0
(2,110,512) (2,710,357) (770,096) (1,436,700) (3,370,824) (4,014,201) (342,471) (666,107) (97,476,764) (167,432,164)
(15,245,148) (11,444,286) (3) (1,100,006) (9,168,837) (8,464,459) (5,158,637) (2,349,374) 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
5,637,972 38,297,739 (96,849) 843,533 (2,603,555) 32,655,173 1,177,145 1,191,177 18,784,955 14,183,185
- ----------------------------------------------------------------------------------------------------------------------------------
7,329,636 45,415,538 (88,977) 743,820 (2,943,276) 30,862,515 1,129,239 1,070,688 18,784,755 14,177,697
91,561,754 46,146,216 12,542,974 11,799,154 64,539,227 33,676,712 11,923,848 10,853,160 85,841,685 71,663,988
- ----------------------------------------------------------------------------------------------------------------------------------
$98,891,390 $91,561,754 $12,453,997 $12,542,974 $61,595,951 $64,539,227 $13,053,087 $11,923,848 $104,626,440 $85,841,685
==================================================================================================================================
$ 690,266 $ 1,623,000 $ 32,503 $ 44,788 $ 3,848 $ 95,901 $ (6,596) $ 22,580 $ 32,532 $ 44,818
</TABLE>
57
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS (continued)
CHANGES IN FUND SHARES
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S.
EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Period Ended Six Months Ended Year Ended
March 31,1997 September March 31,1997 September March 31,1997* March 31,1997 September
(unaudited) 30, 1996 (unaudited) 30, 1996 (unaudited) (unaudited) 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A:
Shares sold by subscription 230,398 294,637 12,069 85,979 8,029 414,920 920,456
Issued for distributions
reinvested 16,627 405 1,932 2,868 0 127,023 23,382
Shares redeemed (63,208) (64,247) (158,350) (43,891) 0 (466,384) (211,845)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Fund shares 183,817 230,795 (144,349) 44,956 8,029 75,559 731,993
====================================================================================================================================
CLASS B:
Shares sold by subscription 3,792 15,817 5,465 11,994 7,439 88,333 255,210
Issued for distributions
reinvested 400 0 1,724 360 0 35,856 3,135
Shares redeemed (810) (3,843) (1,115) (2,589) 0 (19,432) (18,909)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares 3,382 11,974 6,074 9,765 7,439 104,757 239,436
====================================================================================================================================
CLASS C:
Shares sold by subscription 97,562 122,659 152,898 319,353 205,405 677,954 1,066,216
Issued for distributions
reinvested 6,083 341 80,285 23,887 0 255,064 44,064
Shares redeemed (21,056) (19,472) (117,370) (216,093) (1,388) (177,531) (238,075)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares 82,589 103,528 115,813 127,147 204,017 755,487 872,205
====================================================================================================================================
CLASS D:
Shares sold by subscription 1,763,561 2,756,412 346,415 197,330 313,536 995,069 3,068,016
Issued for distributions
reinvested 129,182 12,531 43,705 7,803 0 729,057 203,647
Shares redeemed (1,832,140) (1,273,543) (59,820) (230,524) 0 (660,978) (3,416,836)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in Fund shares 60,603 1,495,400 330,300 (25,391) 313,536 1,063,148 (145,173)
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE
STRATEGIC TAX- FIXED SHORT-TERM MONEY
INVESTMENT EXEMPT INCOME GOVERNMENT MARKET
FUND FUND FUND FUND FUND**
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30, March 31, Sept. 30,
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
676,044 906,804 353 15,739 209,717 1,202,556 29,903 61,992 0 0
33,689 14,267 496 857 34,862 58,607 962 1,258 0 0
(380,661) (156,140) (546) (3,612) (291,710) (375,267) (7,257) (58,394) 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
329,072 764,931 303 12,984 (47,131) 885,896 23,608 4,856 0 0
====================================================================================================================================
30,981 148,617 9,227 76,606 11,836 137,322 127 7,523 0 0
5,385 2,264 1,437 2,434 3,255 4,042 131 396 0 0
(10,674) (14,530) (17,150) (24,675) (27,665) (18,027) (5,113) (2,586) 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
25,692 136,351 (6,486) 54,365 (12,574) 123,337 (4,855) 5,333 0 0
====================================================================================================================================
275,070 443,753 44,971 183,515 427,112 843,984 119,173 146,513 114,082,444 177,814,977
48,594 29,341 12,233 23,130 62,039 101,965 9,931 14,742 2,179,275 3,800,372
(99,496) (139,805) (65,244) (123,355) (284,513) (338,433) (28,889) (56,042) (97,476,764) (167,432,164)
- ------------------------------------------------------------------------------------------------------------------------------------
224,168 333,289 (8,040) 83,290 204,638 607,516 100,215 105,213 18,784,955 14,183,185
====================================================================================================================================
341,558 1,328,680 2 0 360,663 1,711,763 397,301 142,334 0 0
74,406 25,058 6,006 12,532 47,994 84,091 19,207 39,635 0 0
(729,476) (593,811) (0) (90,536) (776,607) (719,913) (436,040) (197,251) 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
(313,512) 759,927 6,008 (78,004) (367,950) 1,075,941 (19,532) (15,282) 0 0
====================================================================================================================================
</TABLE>
* For the period December 31, 1996 (inception) through March 31, 1997.
** GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements
58 & 59
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
1. Organization of the Funds
GE Funds (the "Trust") is registered under the Investment Company Act of 1940
(as amended) as an 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 eleven
investment portfolios (the "Funds") only nine of which are currently being
offered, as follows: GE International Equity Fund, GE Global Equity Fund, GE
Premier Growth 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.
The commencement dates of the Funds were as follows:
GE Premier Growth Equity - Class A, B,C, and D - December 31, 1996; 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. Between certain of the Funds' which effective
date was January 5, 1993 and the commencement of investment operations date was
March 2, 1994, the Funds' adviser absorbed all expenses.
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 Premier Growth Equity Fund
GE U.S. Equity Fund
GE Strategic Investment Fund
Maximum Contingent Deferred Sales Load (as a percentage of redemption proceeds):
1.00% 3.00% 4.00%
- -----------------------------------------------------------------------
Class A* All funds -- --
Class B -- GE Tax-Exempt Fund GE International Equity Fund
GE Fixed Income Fund GE Global Equity Fund
GE Short-Term GE Premier Growth Equity
Government Fund 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, is 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. Class C shares
pay for certain shareholder servicing fees as described in note 3 below.
* 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: Class
C shares pay for certain shareholders servicing fees as described
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results may differ from those estimates.
60
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
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.
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
fair 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.
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 denominated in a foreign currency are translated to U.S.
dollars at the prevailing exchange rate on the respective dates of such
transactions.
The Funds do not isolate the portion of the results of operations resulting from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in their market prices. Such fluctuations are included in net
realized and unrealized gain or loss from investments. Reported net realized
exchange gains or losses from foreign currency transactions represent sale of
foreign currencies, currency gains or losses between the trade date and the
settlement date on securities transactions, realized gains and losses on forward
foreign currency contracts, and the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the 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 exchange rates.
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.
61
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
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,
1997, the Funds had capital loss carryovers as follows:
Fund Amount Expires
- --------------------------------------------------------------------------------
GE Tax-Exempt Fund $ 56,890 2002
97,452 2003
455,605 2004
GE Fixed Income Fund 2,559,595 2003
38,636 2004
GE Short-Term Government Fund 161 2004
GE Money Market Fund 3,370 2003
Any net capital and currency losses incurred after October 31, within the Fund's
tax year, are deemed to arise on the first day of the Fund's next tax year if
the Fund so elects to defer such losses. The Funds incurred and elected to defer
capital losses as follows:
GE Fixed Income Fund $ 1,366,561
GE Short-Term Government Fund 443
GE Money Market Fund 5,488
Investment Income
Corporate actions (including cash dividends) are recorded net of nonreclaimable
tax withholdings on the ex-dividend date, except for certain foreign securities
for which corporate actions are recorded as soon after ex-dividend date as such
information is available. Interest income is recorded on the accrual basis. All
discounts and premiums on taxable bonds and premiums on tax exempt bonds are
amortized to call or maturity date, whichever is shorter using the effective
yield method. On tax exempt bonds purchased before May 1, 1993, only original
issue discount is amortized. For tax exempt bonds purchased after April 30,
1993, both market discount and original issue discount are amortized.
Expenses
Expenses of the Trust which are directly identifiable to a specific Fund are
allocated to that Fund. Expenses which are not readily identifiable to a
specific Fund are allocated in such a manner as deemed equitable, taking into
consideration the nature and type of expense and the relative sizes of the
Funds. All expenses of the Funds are paid by the Investment Adviser and
reimbursed by the Funds up to the voluntary expense limitations.
Distributions to Shareholders
GE Tax-Exempt Fund, GE Fixed Income Fund, GE Short-Term Government Fund and GE
Money Market Fund declare investment income dividends daily and pay monthly. GE
International Equity Fund, GE Global Equity Fund, GE Premier Growth 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. These differences include
treatment of realized and unrealized gains and losses on forward foreign
currency transactions, paydown gains and losses on mortgage-backed securities,
losses on wash sale transactions, and deferred organization expenses.
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.
62
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
When-Issued Securities
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 liquid assets as collateral 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.
Forward Foreign Currency Contracts
A forward foreign currency contract ("Forward") is an agreement between two
parties to buy and sell a currency at a set price on a future date. The market
value of the Forward fluctuates with changes in currency exchange rates. The
Forward is marked-to-market daily and the change in the market value is recorded
by the Fund as an unrealized gain or loss. When the Forward is closed, the Fund
records a realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed. The Fund could be
exposed to risk if a counterparty is unable to meet the terms of the contract or
if the value of the currency changes unfavorably. The Fund may enter into
Forwards in connection with planned purchases and sales of securities, to hedge
specific receivables or payables against changes in future exchange rates or to
hedge the U.S. dollar value of portfolio securities denominated in a foreign
currency.
Repurchase Agreements
The Funds' custodian takes possession of the collateral pledged for investments
in repurchase agreements on behalf of the Funds. It is the policy of the Funds
to value the underlying collateral daily on a mark-to-market basis to determine
that 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
Statements of Assets and Liabilities. The face or contract amounts reflect the
extent of the involvement the Funds have in the particular classes of these
instruments. Risks may be caused by an imperfect correlation between movements
in the price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary market
for the instruments, or an inability of counterparties to perform. The Funds may
invest in these instruments for the following reasons: to hedge against the
effects of changes in value of portfolio securities due to anticipated changes
in interest rates and/or market conditions, to equitize a cash position, for
duration management, or when the transactions are economically appropriate to
reduce the risk inherent in the management of the 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.
63
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
Security Lending
The Funds may loan securities to well known and recognized U.S. and foreign
brokers and banks and receive a lenders fee. These fees are included in interest
income. The loans of securities will be collateralized by cash, letters of
credit or U.S. Government securities. The collateral will be segregated and
maintained at all times with the custodian and must be equal to the current
value of the securities loaned. In the event the counterparty (borrower) does
not meet its contracted obligation to return the securities, the Fund may be
exposed to the risk of loss of reacquiring the loaned securities at prevailing
market prices.
Other
There are certain additional risks involved when investing in foreign securities
that are not inherent in domestic securities. These risks may involve foreign
currency exchange rate fluctuations, adverse political and economic developments
and the imposition of unfavorable foreign governmental laws and restrictions.
3. Fees and Compensation Paid to Affiliates
Advisory and Administration Fees
Compensation of 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 fees are based on the annual
rates listed in the table below. Until further notice, GEIM has agreed to reduce
other operating expenses (exclusive of advisory, 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 Premier Growth Equity Fund .60% .30%
GE U.S Equity Fund .40% .10%
GE Strategic Investment Fund .35% .30%
GE Tax-Exempt Fund* .35% .25%
GE Fixed Income Fund .35% .20%
GE Short-Term Government Fund .30% .15%
GE Money Market Fund .25% .25%
* Effective July 18, 1996, GEIM agreed to waive the advisory and
administration fees for the GE Tax-Exempt Fund until further notice.
Distribution and Shareholder Servicing Fees
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 wholly-owned subsidiary of GEIM and the
Funds' principal underwriter, a monthly fee for distribution and/or shareholder
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.
64
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
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 period ended March 31, 1997, GEIS acting as underwriter received net
commissions of $4,993 from the sale of Class A shares and $26,615 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 of approximately
$40,000 are included in blue sky fees in the Statements of Operations.
4. Aggregate Unrealized Appreciation and Depreciation
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at March 31, 1997, were as follows:
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
GE International
Equity Fund $ 12,368,792 $ 3,495,281 $ 8,873,511
GE Global
Equity Fund 7,607,570 1,702,431 5,905,139
GE Premier Growth
Equity Fund 153,372 565,992 (412,620)
GE U.S.
Equity Fund 52,351,912 3,410,216 48,941,696
GE Strategic
Investment Fund 14,790,462 1,667,220 13,123,242
GE Tax-Exempt
Fund 159,605 19,038 140,567
GE Fixed Income
Fund 195,623 1,051,204 (855,581)
GE Short-Term
Government Fund 19,129 94,475 (75,346)
<PAGE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at March 31, 1997.
5. Options
During the period ended March 31, 1997, the following option contracts were
written:
GE U.S. Equity Fund GE Strategic Investment Fund
- --------------------------------------------------------------------------------
Number Number
of Contracts Premium of Contracts Premium
- --------------------------------------------------------------------------------
Balance as of
September
30, 1996 0 $ 0 0 $ 0
Written 11 1,867 264 2,050
Closed and
Expired (8) (1,401) (1) (1,146)
Exercised (3) (466) (0) (0)
- --------------------------------------------------------------------------------
Balance as of
March 31, 1997 0 $ 0 263 $ 904
================================================================================
GE Fixed Income Fund
- ---------------------------------------
Number
of Contracts Premium
- ---------------------------------------
Balance as of
September
30, 1996 0 $ 0
Written 3,004 4,125
Closed and
Expired (2,520) (2,461)
Exercised (0) (0)
- --------------------------------------
Balance as of
March 31, 1997 484 $ 1,664
======================================
65
<PAGE>
Notes to Financial Statements -- March 31, 1997 (unaudited)
6. Investment Transactions
The cost of purchases and the proceeds from sales of investments, other than
U.S. Government securities, short term securities and options, for the period
ended March 31, 1997, were:
Purchases Sales
- --------------------------------------------------------------------------------
GE International
Equity Fund $ 22,853,679 $ 21,119,727
GE Global Equity Fund 18,606,634 14,875,815
GE Premier Growth
Equity Fund 7,641,274 455,545
GE U.S. Equity Fund 78,892,583 56,272,576
GE Strategic Investment
Fund 18,468,298 16,627,870
GE Tax-Exempt Fund 8,662,948 9,047,150
GE Fixed Income Fund 12,541,198 13,397,061
GE Short-Term
Government Fund 2,361,811 2,000,230
The cost of purchases and the proceeds from sales of long term U.S. Government
securities for the period ended March 31, 1997, were:
Purchases Sales
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $ 1,472,297 $ 182,084
GE Strategic Investment
Fund 35,551,478 33,126,261
GE Fixed Income Fund 66,723,474 68,619,994
GE Short-Term
Government Fund 10,476,424 9,487,607
7. Beneficial Interest
The schedule below shows the number of shareholders each owning 5% or more of a
Fund and the total percentage of the Fund held by such shareholders.
5% or Greater Shareholders
- --------------------------------------------------------------------------------
Number % of Fund Held
- --------------------------------------------------------------------------------
GE International Equity Fund 4 82%
GE Global Equity Fund 3 31%
GE Premier Growth Equity Fund 1 59%
GE U.S. Equity Fund 6 38%
GE Strategic Investment Fund 5 42%
GE Tax-Exempt Fund 1 25%
GE Fixed Income Fund 3 23%
GE Short-Term Government Fund 2 56%
GE Money Market Fund 1 9%
At March 31, 1997, GE Company owned 25% of the shares outstanding of the GE
Tax-Exempt Fund; and GE Capital Assurance Company, an indirect wholly owned
subsidiary of GE Company, owned 61% and 35%, respectively, of the shares
outstanding of the GE Premier Growth Equity and GE Short-Term Government Funds.
66
<PAGE>
[This Page Left Intentionally Blank]
67
<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
Paul C. Reinhardt
GE Premier Growth Equity Fund
David B. Carlson
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
Trustees
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn
Secretary
Matthew J. Simpson
Treasurer
Jeffrey A. Groh
Distributor
GE Investment Services Inc.
Member NASD and SIPC
Counsel
Willkie Farr & Gallagher
Custodian
State Street Bank & Trust Company
Independent Accountants
Price Waterhouse LLP
Officers of the Investment Adviser
John H. Meyers, 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
Robert A. MacDougall, EVP, Fixed Income
Geoffrey R. Norman, EVP, Institutional Marketing
Don W. Torey, EVP, Finance and Administration
68
<PAGE>
Shareholder Inquiries
Everyone breathes a sigh of relief at the end of tax season. For the inquiry
center representatives, it means we can step back and assess how we handled the
enormous call volume which comes into our center between January and the middle
of April. This year our numbers reflect many of the quality upgrades we
implemented as a result of a needs assessment conducted at the end of 1996's tax
season.
We see, for example, that while our call volume was 57,000 an increase of 10%
versus the same period last year, we were able to answer 99% of all incoming
calls, cutting our rate of abandoned calls in half from their level in 1996. Our
figures also show that the average speed of answering a call was under 10
seconds.
What do these numbers mean to the shareholder trying to get answers? It means
you can expect to reach a representative quickly...which is what we're all
about.
In upcoming weeks, you can also expect to receive information on the newly
streamlined automated voice response system. Research conducted while preparing
for the redesign of the system clearly showed our shareholders' frustration at
not being able to immediately access a representative. Among many other
improvements, the new system will enable you to dial "O" at any time during the
menu to speak with a representative.
Thank you for your continued confidence in GE Investments. Your comments and
suggestions are always welcome.
Class A, B and C investors:
For questions regarding the Funds or your account call your investment
professional or call the GE Funds Inquiry Center at 1-800-242-0134
Address inquiries regarding Address inquiries regarding your
the Funds to: account to:
GE Funds GE Funds
3003 Summer Street P.O. Box 8309
P.O. Box 120065 Boston, MA 02266-8309
Stamford, CT 06912-0065
Class D investor: Contact your designated GE Investments 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
