[GE LOGO]
GE FUNDS
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GE FUNDS
SEMI-ANNUAL
REPORT
MARCH 31, 1998
<PAGE>
UNDERSTANDING YOUR REPORT
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 INTERNATIONAL EQUITY
GE GLOBAL EQUITY
GE PREMIER GROWTH EQUITY FUND 10
GE U.S. EQUITY FUND 13
GE MID-CAP GROWTH FUND 18
GE VALUE EQUITY FUND 22
GE STRATEGIC INVESTMENT FUND 26
GE TAX-EXEMPT FUND 35
GE FIXED INCOME FUNDS 39
GE FIXED INCOME
GE GOVERNMENT SECURITIES
GE SHORT-TERM GOVERNMENT
GE MONEY MARKET
NOTES TO PERFORMANCE 54
NOTES TO SCHEDULES OF INVESTMENTS 55
FINANCIAL STATEMENTS 56
Financial Highlights and Statements of Assets and
Liabilities, Operations, and Changes in Net Assets
NOTES 76
Notes to the Financial Statements
GE FUNDS INVESTMENT TEAM 84
SHAREHOLDER INQUIRIES INSIDE BACK COVER
How you can obtain more information
<PAGE>
TOP RATED GE FUNDS
BY MORNINGSTAR
THROUGH MARCH 31, 1998
* * * * *
OVERALL AND 3 YEARS RATINGS
Rated among 2437 Domestic Equity Funds
GE US Equity - D
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* * * * *
OVERALL AND 3 YEARS RATINGS
FUNDS NUMBER OF FUNDS
FUND/CLASS PEER GROUP IN PEER GROUP
- ---------- ---------- -------------
GE Global Equity - C** & D
GE International Equity - C International Equity 722
GE US Equity - A, B & C*
GE Value Equity - B Domestic Equity 2437
GE Short-Term Gov't. - C & D Taxable Bond 1403
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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, 1998. The ratings are subject to change every month.
Morningstar ratings are calculated from a fund's three-, five- and ten-year
average annual returns with fee and sales charge adjustments in excess of 90-day
T-bill, if applicable, returns with appropriate fee adjustment and a risk factor
that reflects fund performance below 90-day T-bill returns. Top ten percent of
the funds in a rating category receive five stars, and the next 22.5% receive
four stars.
Star ratings for the Funds' and/or 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.
* Fund was rated among 1363 funds for the 5 year period in the Domestic
Equity category.
** Fund was rated among 311 funds for the 5 year period in the International
Equity category.
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This report has been prepared for shareholders and may be distributed to others
only if preceded or accompanied by a current prospectus.
<PAGE>
A Letter from the President
Dear Shareholder:
We are pleased to provide you with the GE Funds 1998 semi-annual report.
In the last six months, the U.S. economy continued to grow in the face of
financial problems in Asia. The flow of assets into mutual funds remained
strong. As has been the case in recent years, a substantial portion of those
assets flowed into equity mutual funds, which helped fuel a strong rally in
stocks. The end of 1997 marked the third consecutive year in which the Dow Jones
Industrial Average, a key benchmark of stock market activity, recorded a double
digit percentage gain. It also marked the end of the best consecutive three-year
performance period in stock market history.
[GRAPHIC OMITTED]
Photo of Michael J. Cosgrove
Will the trend continue? This report provides an overview of where we've been
and what we expect for the months ahead. But first, some performance highlights
for the period just past.
PERFORMANCE HIGHLIGHTS
Moving into 1998, the GE family of funds continued to generate solid performance
for its shareholders. All of our equity funds achieved double-digit returns for
the six month, one year, three year, and five year time periods ended March 31,
1998. The majority of our funds, in most if not all of their classes, excluding
loads, outperformed the average of their peers on a six month, one and three
year basis as measured at March 31, 1998 by Lipper Analytical Services, an
independent mutual fund rating service. Lipper's average returns for all fund
categories and complete details on each fund's performance, including reductions
for the effect of loads, can be found in the fund performance profile pages
contained in this semi-annual report.
Many of our funds also earned favorable ratings from Morningstar, an independent
fund ranking company which analyzes risk-adjusted performance. Refer to the
inside front cover to see the funds that were rated highly by Morningstar.
MARKET OVERVIEW
During the six-month period ended March 31,1998, the stock market recorded solid
investment results in an environment of low inflation, falling interest rates
and generally good corporate earnings. At the start of this year, some market
watchers wondered if the stock market could maintain its torrid pace in 1998,
given its strong investment results over the past few years. In January, it
appeared those concerns were having an effect on stock market valuations, but
those concerns were short-lived. In February and March, stocks bounced back
strongly, posting double-digit gains for the quarter and fueling speculation
about when the Dow Jones Industrial Average might hit the 10,000 mark. During
this period, financial services stocks were among the better market performers,
just as they have been over the last few years. These stocks benefited from the
sharp increase in the number of Americans saving and investing to help secure
their financial future.
Some of the other sectors that turned in solid gains included healthcare and
utilities stocks. Oil stocks fell, due in large part to a decline in oil prices.
Technology stocks turned in mixed investment results, as a number of major
companies in this sector announced earnings shortfalls due to the economic
problems in Asia.
European stocks also registered impressive investment results, thanks in large
part to a generally favorable economic environment
1
<PAGE>
A Letter from the President (continued)
on the Continent. Other positive factors that helped bolster prices included the
wave of restructurings taking place in Europe and the fact that plans designed
to lead to a single currency by next year remain on schedule.
The Japanese stock market finished 1997 on a down note, but showed considerable
strength in January, driven largely by technical factors that suggested prices
might be bottoming. However, investors' negative reactions to government
economic reform proposals put pressure on equity prices in March, wiping out a
large portion of their early-year gains.
While the Asian economic crisis had a substantial effect on the financial
markets in the last quarter of 1997, it had little bearing on global equity
prices during the first three months of this year. However, the underlying
problems in Asia remain a source of concern to investors.
Bonds also recorded solid performance, as long-term interest rates continued to
decline. Federal Reserve ("Fed") Chairman Alan Greenspan helped the bond market
in January by suggesting disinflation may creep into the economy due to the
Asian economic crisis.
During the period, the Fed maintained its neutral monetary policy, meaning it
neither raised nor lowered interest rates. The Fed has not raised short-term
interest rates since late March 1997 and has not lowered rates since late
January 1996.
The bond market rally was not without some concerns along the way. For example,
interest rates trended higher in January resulting from a stronger-than-expected
employment report released in early February.
OUTLOOK
Looking ahead, we expect the U.S. economy to continue to grow at a steady pace.
While we do not expect the Asian financial crisis to have a significant impact
on the U.S. economy, we believe it may result in a slowdown in corporate
earnings growth. Given this scenario, we would not be surprised to see a Federal
Reserve rate cut in the coming months. Furthermore, we think stock market gains
will return to more modest levels. In this environment, stock selection will be
critically important in achieving investment success.
A WORD ABOUT SERVICE
Over the next six months, we intend to make our voice response units more user
friendly and accessible to shareholders. In our ongoing effort to provide
investors with greater details about the GE Funds, we also plan to enhance our
presence on the internet with helpful, informative content. Finally, we would
like to mention that eligible investors can now establish Roth IRAs, in addition
to traditional IRAs. The Roth IRA enables you to enjoy tax-free earnings and
withdrawals when planning for your leisure years. Please take the time to
evaluate with your tax advisor the benefits of this new retirement planning
vehicle and determine whether you are eligible to establish one. If we can be of
any assistance in helping you fully understand its many benefits, please feel
free to call us at your convenience.
Sincerely,
/s/ Michael J. Cosgrove
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Michael J. Cosgrove
Mike Cosgrove is the President of the Investment Services Group of GE
Financial Assurance Holdings, Inc. and GE Investment Distributors, Inc.,
the funds' distributor. In this role, he is responsible for the marketing,
product development and sales of the funds, and is also 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.
2
<PAGE>
GE International Funds
Q&A
Ralph Layman (pictured on the left) manages the international equity operation
with assets under management exceeding $10 billion. He leads a team of portfolio
managers for the GE International Equity Fund and shares portfolio management
responsibility for the GE Global Equity Fund with Michael J. Solecki. Prior to
joining GE Investments in 1991, Ralph was Executive Vice President, Partner and
Portfolio Manager of the 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, a charter member of the International Society of Security
Analysts and a member of the New York Society of Security Analysts. Ralph is a
graduate of the University of Wisconsin with a B.S. in Economics and a M.S. in
Finance.
[GRAPHIC OMITTED]
Photo of Ralph Layman and Michael J. Solecki
Michael J. Solecki is Co-Portfolio Manager of the GE Global Equity Fund and has
served the fund in that capacity since September 1997. Mike has more than eight
years of investment experience and has held positions with GE Investments since
1990. He is currently a Vice President of GE Investments. Mike is a Chartered
Financial Analyst and a member of the New York Society of Security Analysts. He
holds a B.S. in Finance from Western New England College.
Q. HOW DID THE GE INTERNATIONAL AND GE GLOBAL EQUITY FUNDS' BENCHMARKS AND
LIPPER PEERS PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. The GE International Equity Fund's benchmark, MSCI EAFE, was up 5.73%. Our
Lipper peer group of 540 International Stock funds posted an average return
of 6.01% for the same period.
The GE Global Equity Fund's benchmark, MSCI World Index, returned 11.51%.
Our Lipper peer group of 240 Global funds returned an average of 7.10% for
the same period.
To see how your class of shares in the above funds performed compared to
their benchmarks, please refer to page 4 for the GE International Fund and
page 7 for the GE Global Equity Fund.
Q. WHAT DROVE THE PERFORMANCE OF THE FUNDS?
A. The weakness of the Japanese economy and the collapse of the Asian
economies in the second half of 1997 meant that our funds entered 1998 with
a very low exposure to the Far Eastern markets and the funds' performance
were only marginally affected by the region's poor market performance.
Conversely, our funds' overweighted positions in Continental Europe have
reaped the benefits of European economies recovering after a long period of
slow growth. The most important factor driving the European stock markets
is the convergence of the economies and currencies in preparation for the
introduction of a common currency in January 1999. Our underweighting in
U.S. stocks detracted from our performance in the Global Equity Fund as the
U.S. markets continued to outperform the international markets. Due to the
long run in the current bull market, we believe that U.S. stock valuations
are high and more attractive valuations can be found in European companies.
Q. WHICH INVESTMENTS STAND OUT?
A. Financial stocks, such as ING Groep N.V. (+24%), an attractively priced
global asset management company, and AXA-UAP (+53%), the world's largest
insurance company in terms of assets and second in terms of premium income,
contributed favorably to performance. Other notable investments included
Cap Gemini (+87%), a global computer services company that specializes in
systems integration, and Mannesmann (+54%), a German-based engineering and
telecommunications firm.
Q. WHAT IS YOUR OUTLOOK FOR THE FUNDS AND HOW HAVE YOU POSITIONED THEM GOING
FORWARD?
A. Because of the continued economic weakness in Asia and Japan and resulting
lack of earnings growth, we foresee that our discipline of seeking
undervalued companies relative to their long term growth potential will
continue to cause the funds to remain overweighted in Europe. We are
excited by the ongoing corporate restructuring and economic convergence in
Europe and expect to see further upside, in line with superior earnings
growth.
3
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GE International Equity Fund
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Portfolio Composition
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[GRAPHIC OMITTED]
Japan 6.7%
Pacific Rim 7.1%
Europe 73.9%
Other Regions 10.7%
Cash & Other 1.6%
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Average Annual Total Return
for the periods ended March 31, 1998
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Since
6 Mo. 1 Yr. 3 Yr Inception Commencement
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Class A 9.55% 23.10% 16.56% 11.04% 3/2/94
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Class A* 3.23% 16.02% 14.29% 9.43% 3/2/94
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Class B 9.25% 22.46% 15.95% 10.46% 3/2/94
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Class B* 5.71% 18.50% 15.45% 10.46% 3/2/94
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Class C 9.66% 23.36% 16.83% 11.29% 3/2/94
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Class D 9.95% 23.90% 17.27% 11.68% 3/2/94
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MSCI EAFE 5.73% 18.60% 10.56%
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* With Load
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital
by investing primarily in foreign equity securities.
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Top Ten Largest Holdings at March 31, 1998
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AXA-UAP 2.93%
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Siebe PLC 2.73%
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Total S.A. (Class B) 2.60%
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ING Groep N.V. 2.55%
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Mannesmann AG 2.41%
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Repsol S.A. 2.16%
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Airtours PLC 2.15%
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Cap Gemini S.A. 2.11%
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Schneider S.A. 2.02%
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Sony Corp. 2.01%
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* Lipper Performance Comparison
International Stock Peer Group
Based on average annual total returns for the periods ended March 31, 1998
SIX ONE THREE
MONTHS YEAR YEAR
Number of Funds
in peer group: 540 491 291
Peer group average
annual total return: 6.01% 19.11% 14.02%
Lipper categories
in peer group: International, Canadian, International Small Cap
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE INTERNATIONAL EQUITY FUND
NUMBER
OF SHARES VALUE
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COMMON STOCK -- 98.4%
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AUSTRALIA -- 2.0%
Brambles Industries Ltd. 21,207 $ 441,094
Coca Cola Amatil Ltd. 42,671 334,413
775,507
AUSTRIA -- 1.5%
OMV AG 793 102,199
VA Technologie AG 3,061 482,232
584,431
BRAZIL -- 3.0%
Telecomunicacoes Brasileiras
S.A. ADR 3,014 391,255
Telecomunicacoes de Rio de Janeiro
S.A. (Pfd. Shares) 376,936 53,109
Telecomunicacoes de Sao Paulo
S.A. - Telesp 1,224,893 397,525
Uniao de Banco Brasiliero
S.A. GDR 9,210 333,862
1,175,751
DENMARK -- 1.0%
Den Danske Bank 2,837 370,721
FINLAND -- 3.2%
Merita Ltd. (Series A) 69,931 420,997
Nokia AB Oy (Series A) (Pfd. Shares) 5,635 604,705
Pohjola Insurance Group (Series B) 1,603 74,234
Sampo Insurance Co. Ltd. (Series A) 3,794 150,018
1,249,954
[GRAPHIC OMITTED]FRANCE -- 18.7%
AXA-UAP 11,027 1,135,172
Cap Gemini S.A. 13,592 819,303(a)
Carrefour S.A. 957 563,622
Coflexip S.A. ADR 7,801 481,712
Lyonnaise Des Eaux S.A. 4,078 588,916
Michelin CGDE (Regd.) (Class B) 7,650 456,593
Renault S.A. 10,338 460,393
Rhone Poulenc S.A. 9,300 472,541
Schneider S.A. 10,157 781,749
Societe Generale 2,339 467,989
Total S.A. (Class B) 8,379 1,005,886
7,233,876
[GRAPHIC OMITTED]GERMANY -- 8.0%
Bayerische Vereinsbank AG 6,979 509,402
Daimler-Benz AG 5,896 541,927
Fresenius Medical Care AG 3,846 271,989
Fresenius Medical Care AG
(Pfd. Shares) 1,873 103,293
Mannesmann AG 1,278 935,586
Preussag AG 733 249,875
SGL Carbon AG 3,876 429,188
<PAGE>
NUMBER
OF SHARES VALUE
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Veba AG 717 $ 50,861
3,092,121
GREECE -- 0.4%
Alpha Credit Bank (Regd.) 1,990 154,107
HONG KONG -- 1.9%
Cheung Kong (Holdings) Ltd. 9,000 26,830
Giordano International Ltd. 164,000 42,117
HSBC Holdings PLC (Regd.) 15,330 468,874
Johnson Electric Holdings 46,400 198,204
736,025
INDONESIA -- 0.1%
PT Astra International Inc. 94,000 23,364
PT Mulia Industrindo 31,500 2,913
26,277
ISRAEL -- 2.7%
Comverse Technology Inc. 5,370 262,459(a)
ECI Telecommunications Ltd. 16,823 517,307
Teva Pharmaceutical Industries Ltd.
ADR 6,419 274,412
1,054,178
[GRAPHIC OMITTED]ITALY -- 6.3%
Banca Intesa S.p.A. 63,668 384,662
Credito Italiano 116,017 573,085
ENI S.p.A. (Regd.) 9,671 65,888
Industrie Natuzzi S.p.A. ADR 3,090 85,361
Montedison S.p.A. 382,312 563,087
Saipem 15,488 92,181
Telecom Italia Mobile S.p.A. 127,715 686,214
2,450,478
[GRAPHIC OMITTED]JAPAN -- 6.7%
Canon Inc. 26,000 587,427
Credit Saison Co. Ltd. 5,885 130,312
Honda Motor Co. 11,000 396,322
Minebea Co. Ltd. 8,000 87,671
NTT Data Corp. 7 311,578
Sony Corp. 9,200 780,334
Sumitomo Realty & Development 21,000 123,896
Takefuji Corp. 4,000 189,154
2,606,694
MEXICO -- 1.6%
Gruma S.A. de C.V. (Series B) 25,134 66,258
Grupo Carso S.A. de C.V. ADR 27,412 339,224
Grupo Financiero Bancomer S.A.
ADR (Series C) 16,834 199,904(a,b)
605,386
NETHERLANDS -- 4.4%
IHC Caland N.V. 7,459 411,775
ING Groep N.V. 17,395 986,992
Ispat International N.V. (Regd.)
(Class A) 1,731 49,333(a)
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See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
5
<PAGE>
GE International Equity Fund March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
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Philips Electronics N.V. 3,589 $ 263,372
1,711,472
NORWAY -- 0.8%
Den Norske Bank 55,917 304,351
PANAMA -- 1.1%
Panamerican Beverages Inc. (Class A) 10,185 408,673
PERU -- 0.8%
Telefonica del Peru S.A. ADR
(Class B) 14,875 320,742
PHILIPPINES -- 0.6%
Metro Bank & Trust Co. 16,600 152,895
San Miguel Corp. 48,498 84,233
237,128
PORTUGAL -- 1.5%
Banco Comercial Portugues 16,445 52,645(a)
Banco Comercial Portugues (Regd.) 16,931 546,781
599,426
SOUTH AFRICA -- 1.5%
Barlow Ltd. 19,168 156,070
Dimension Data Holdings Ltd. 63,887 409,166
Iscor Ltd. 68,165 18,816
584,052
SOUTH KOREA -- 1.5%
Hyundai Heavy Industries Co. 7,551 280,777
Pohang Iron & Steel 1,860 101,581
Samsung Display Devices Co. 4,423 207,578(a)
589,936
SPAIN -- 3.7%
Argentaria S.A. 3,141 260,215
Banco Santander S.A. (Regd.) 6,705 334,139
Repsol S.A. 16,424 838,365
1,432,719
SWEDEN -- 3.2%
Autoliv Inc. SDR 12,765 395,938
Electrolux AB (Series B) 899 74,209
Ericson LM Telephone (Series B) 4,670 221,950
Investor AB (Series B) 1,261 67,659
Kinnevik AB (Series B) 2,079 48,494(a)
NetCom Systems AB (Series B) 7,422 216,287
Pharmacia & Upjohn Inc. 4,940 216,125
1,240,662
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See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
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SWITZERLAND -- 6.0%
ABB AG 464 $ 693,337
Novartis AG (Regd.) 382 676,049
Roche Holdings AG 6 64,939
Schw Rueckversicher (Regd.) 110 241,646
Zurich Versicherungsgesellschaft
(Regd.) 1,125 653,083
2,329,054
TAIWAN -- 1.0%
Taiwan Semiconductor
Manufacturing Co. 78,000 384,365
[GRAPHIC OMITTED] UNITED KINGDOM -- 15.2%
Airtours PLC 100,199 833,633
Bank of Scotland PLC 31,134 368,998
Commercial Union PLC 15,764 307,959
Granada Group PLC 41,063 738,261
Johnson Matthey PLC 4,984 51,394
LucasVarity PLC 147,877 596,586
Medeva PLC 15,474 43,259
National Westminster Bank PLC 7,565 138,415
Railtrack Group PLC 21,481 352,400
Reed International PLC 42,386 429,982
Royal Sun Alliance Insurance
Group PLC 47,440 603,550
Saatchi & Saatchi PLC 28,353 75,703(a)
SEMA Group PLC 1,165 45,986
Siebe PLC 48,552 1,059,840
Vodafone Group PLC 23,766 246,861
5,892,827
TOTAL INVESTMENTS IN SECURITIES
(Cost $31,329,460) 38,150,913
OTHER ASSETS AND LIABILITIES,
NET 1.6% 606,035
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NET ASSETS - 100% $38,756,948
================================================================================
Icons represent the top five country weightings in the GE International Equity
Fund at March 31, 1998.
6
<PAGE>
GE Global Equity Fund
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Portfolio Composition
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[GRAPHIC OMITTED]
Europe 57.3%
U.S. 20.9%
Japan 4.8%
Pacific Rim 5.2%
Other Regions 9.9%
Cash & Other 1.9%
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Average Annual Total Return
for the periods ended March 31, 1998
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Since Commence-
6 Mo. 1 Yr. 3 Yr 5 Yr Inception ment
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Class A 8.39% 24.24% 16.49% N/A 11.34% 1/1/94
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Class A* 2.16% 17.10% 14.22% N/A 9.80% 1/1/94
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Class B 8.15% 23.65% 15.91% N/A 11.45% 12/22/93
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Class B* 4.30% 19.65% 15.42% N/A 11.45% 12/22/93
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Class C 8.49% 24.50% 16.76% 14.11% 14.69% 2/22/93
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Class D 8.68% 24.93% 17.08% N/A 13.81% 11/29/93
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MSCI
World 11.51% 31.95% 20.09% 16.54%
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* With Load
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of global companies.
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Top Ten Largest Holdings at March 31, 1998
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Airtouch Communications Inc. 2.85%
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Siebe PLC 2.60%
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ING Groep N.V. 2.51%
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AlliedSignal Inc. 2.23%
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Sony Corp. 2.18%
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AXA-UAP 2.13%
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Mannesmann AG 2.06%
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Daimler-Benz AG 1.83%
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Total S.A. (Class B) 1.79%
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Repsol S.A. 1.68%
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* Lipper Performance Comparison
Global Stock Peer Group
Based on average annual total returns for the periods ended March 31, 1998
SIX ONE THREE FIVE
MONTHS YEAR YEAR YEAR
Number of Funds
in peer group: 240 223 140 63
Peer group average
annual total
return: 7.10% 26.12% 19.24% 15.28%
Lipper categories
in peer group: Global, Global Small Cap
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
7
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE GLOBAL EQUITY FUND
NUMBER
OF SHARES VALUE
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COMMON STOCK -- 98.1%
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AUSTRALIA -- 0.8%
Coca Cola Amatil Ltd. 53,944 $ 422,759
AUSTRIA -- 0.9%
VA Technologie AG 3,107 489,479
BRAZIL -- 2.8% Telecomunicacoes
Brasileiras S.A. ADR 4,805 623,749
Telecomunicacoes de Sao Paulo
S.A. - Telesp 1,666,750 540,924
Uniao de Banco Brasiliero S.A. GDR 9,184 332,920
1,497,593
CROATIA -- 0.1%
Pliva D D GDR (Regd.) 3,384 63,450
FINLAND -- 3.9%
Merita Ltd. (Series A) 87,964 529,559
Nokia AB Oy (Series A) (Pfd. Shares) 7,031 754,513
Sampo Insurance Co. Ltd. (Series A) 20,883 825,731
2,109,803
[GRAPHIC OMITTED]FRANCE -- 13.4%
AXA-UAP 11,232 1,156,275
Cap Gemini S.A. 13,328 803,390(a)
Carrefour S.A. 838 493,538
Coflexip S.A. ADR 12,668 782,249
Lyonnaise Des Eaux S.A. 2,444 352,946
Michelin CGDE (Regd.) (Class B) 5,479 327,016
Renault S.A. 8,582 382,191
Rhone Poulenc S.A. 13,189 670,144
Schneider S.A. 11,078 852,635
Societe Generale 2,572 514,607
Total S.A. (Class B) 8,113 973,953
7,308,944
[GRAPHIC OMITTED]GERMANY -- 6.7%
Bayerische Vereinsbank AG 6,884 502,468
Daimler-Benz AG 10,833 995,707
Fresenius Medical Care AG 5,868 414,985
Fresenius Medical Care AG
(Pfd. Shares) 3,122 172,174
Mannesmann AG 1,533 1,122,263
Preussag AG 374 127,494
SGL Carbon AG 2,912 322,445
3,657,536
GREECE -- 0.0%
Alpha Credit Bank (Regd.) 75 5,808
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
HONG KONG -- 1.7%
Cheung Kong (Holdings) Ltd. 21,000 $ 62,603
Giordano International Ltd. 320,000 82,181
HSBC Holdings PLC (Regd.) 18,219 557,235
Johnson Electric Holdings 53,000 226,396
928,415
INDONESIA -- 0.1%
PT Astra International Inc. 197,000 48,965
ISRAEL -- 2.6%
Comverse Technology Inc. 6,908 337,629(a)
ECI Telecommunications Ltd. 14,614 449,380
Tecnomatix Technologies Ltd. 6,113 230,002(a)
Teva Pharmaceutical Industries Ltd.
ADR 9,526 407,236
1,424,247
ITALY -- 5.1%
Banca Intesa S.p.A. 27,371 165,367
Credito Italiano 153,075 756,139
Industrie Natuzzi S.p.A ADR 23,602 652,005
Montedison S.p.A. 359,393 529,331
Saipem 30,818 183,420
Telecom Italia Mobile S.p.A. 87,262 468,860
2,755,122
JAPAN -- 4.8%
Canon Inc. 22,000 497,054
Honda Motor Co. 10,000 360,293
Minebea Co. Ltd. 14,000 153,424
NTT Data Corp. 9 400,600
Sony Corp. 14,000 1,187,465
2,598,836
MEXICO -- 1.6%
Gruma S.A. de C.V. (Series B) 30,305 79,891
Grupo Carso S.A. de C.V. (Series A) 25,083 154,633
Grupo Carso S.A. de C.V. ADR 23,882 295,540
Grupo Financiero Bancomer S.A.
ADR (Series C) 26,511 314,818(a,b)
844,882
[GRAPHIC OMITTED]NETHERLANDS -- 5.5%
IHC Caland N.V. 9,457 522,075
ING Groep N.V. 24,075 1,366,015
Ispat International N.V. (Regd.)
(Class A) 28,643 816,326(a)
Philips Electronic N.V. 4,141 303,879
3,008,295
NORWAY -- 0.9%
Den Norske Bank ASA 59,678 324,822
Petroleum Geo Services 3,183 185,772
510,594
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
8
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PANAMA -- 1.4%
Banco Latinoamericano
de Exportaciones S.A. (Class E) 5,858 $ 220,407
Panamerican Beverages Inc.
(Class A) 13,917 558,420
778,827
PERU -- 0.6%
Telefonica del Peru S.A. ADR
(Class B) 13,723 295,902
PHILIPPINES -- 0.6%
Metro Bank & Trust Co. 17,900 164,868
San Miguel Corp. 84,080 146,034
310,902
PORTUGAL -- 1.4%
Banco Comercial Portugues 15,830 50,676(a)
Banco Comercial Portugues (Regd.) 15,830 511,225
Telecel-Comunicacoes Pessoais S.A. 1,263 196,104(a)
758,005
SOUTH AFRICA -- 0.9%
Dimension Data Holdings Ltd. 77,300 495,070
SOUTH KOREA -- 0.9%
Hyundai Heavy Industries Co. 7,917 294,387
Pohang Iron & Steel Co. 1,180 64,444
Samsung Display Devices Co. 3,176 149,054(a)
507,885
SPAIN -- 2.5%
Argentaria S.A. 3,510 290,785
Banco Santander S.A. (Regd.) 3,492 174,022
Repsol S.A. 17,938 915,647
1,380,454
SWEDEN -- 2.0%
Autoliv Inc. SDR 15,355 476,273
Ericson LM Telephone (Series B) 2,897 137,685
Pharmacia & Upjohn Inc. 10,303 450,756
1,064,714
SWITZERLAND -- 3.6%
ABB AG 467 697,820
Novartis AG (Regd.) 430 760,997
Zurich Versicherungsgesellechaft
(Regd.) 848 492,279
1,951,096
TAIWAN -- 1.1%
Taiwan Semiconductor
Manufacturing Co. 120,000 591,331
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]UNITED KINGDOM -- 11.3%
Airtours PLC 93,320 $ 776,401
Bank of Scotland PLC 29,491 349,525
Commercial Union PLC 13,472 263,183
Granada Group PLC 47,618 856,112
Johnson Matthey PLC 63,190 651,605
LucasVarity PLC 166,203 670,519
Railtrack Group PLC 16,050 263,303
Reed International PLC 24,754 251,115
Royal & Sun Alliance Insurance
Group PLC 39,840 506,860
Siebe PLC 64,641 1,411,045
Vodafone Group PLC 14,190 147,394
6,147,062
[GRAPHIC OMITTED]UNITED STATES -- 20.9%
Airtouch Communications Inc. 31,717 1,552,151(a)
AlliedSignal Inc. 28,921 1,214,682
Avery Dennison Corp. 2,510 133,971
Citicorp 4,966 705,172
Du Pont de Nemours (E.I.) & Co. 5,395 366,860
Ecolab Inc. 11,327 328,483
EMC Corp. 5,548 209,784(a)
First Data Corp. 21,108 686,010
Harman International Industries Inc. 14,329 630,476
Intel Corp. 4,299 335,591
International Business Machines 3,206 333,023
Morgan Stanley, Dean Witter 8,002 583,146
Motorola Inc. 7,438 450,929
Scherer (R.P.) Corp. 8,667 585,022(a)
Schlumberger Ltd. 5,430 411,322
Sears Roebuck & Co. 10,537 605,219
Sensormatic Electronics Corp. 43,292 708,906
Sun Microsystems Inc. 1,692 70,588(a)
Thermo Electron Corp. 11,776 475,456(a)
Travelers Group Inc. 11,104 666,240
Zebra Technologies Corp. (Class A) 7,957 306,345(a)
11,359,376
TOTAL INVESTMENTS IN SECURITIES
(Cost $43,263,170) 53,315,352
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.2%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $675,668) 675,668 675,668
OTHER ASSETS AND LIABILITIES,
NET 0.7% 377,830
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $54,368,850
================================================================================
Icons represent the top five country weightings in the GE Global Equity Fund at
March 31, 1998.
9
<PAGE>
GE Premier Growth Equity Fund
Q&A
David Carlson manages pension and mutual fund portfolios with total assets of
nearly $6 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 SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. For the six-month period ended March 31, 1998, the Standard & Poor's 500
Composite Index advanced 17.21%. Our Lipper peer group of 936 Growth funds
posted an average return of 11.55% for the same period. To see how your
class of shares in the Premier Growth Equity Fund performed compared to
their respective benchmarks, please refer to the following page.
Q. WHAT DROVE THE FUND'S PERFORMANCE.
A. This is a very concentrated portfolio with only 35 stocks presently.
Performance in the short term will be driven by stock specific news rather
than broad industry trends. Our holdings in the media (Tele-Communications
Inc. Liberty Media, NTL), retail trade (Home Depot, Arbor Drugs) and
financial services (Travelers Group) industries were all strong performers
in the six-month period. Our technology (Intel and Molex) and energy
holdings (Schlumberger, Baker-Hughes) were laggards due to concerns
surrounding Asia and declines in crude oil prices.
Q. WHAT NOTABLE CHANGES WERE MADE TO THE FUND?
A. The fund reduced its exposure in the technology sector due to concerns that
Asia's economic and currency problems might translate to lower earnings
estimates for stocks in this sector. Specifically, we reduced our exposure
to Intel and eliminated Applied Materials. We added to our healthcare
weighting with Omnicare and Sybron International. Our investment approach
is to find what we believe to be high quality growth companies and hold
them for the long term to keep the turnover as low as possible. Our hope is
to generate long-term capital gains as opposed to short-term capital gains,
resulting in lower tax liability for shareholders who own the fund in
taxable accounts.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The general environment for equities appears good. Inflation remains low.
Interest rates, while somewhat volatile during the first quarter, finished
the period virtually unchanged, and corporate earnings, while not stellar,
were still favorable on balance. While a slowdown in economic growth due to
the problems in Asia may have an impact on earnings in the coming months,
we do not expect the fund to be affected as much as the broader market.
Since the companies represented in the portfolio are leaders in their
respective industries, they are typically less dependent on a strong
economy for earnings growth. Although past performance is no guarantee of
future results, we continue to believe that the above-average growth
demonstrated by these companies will result in above-average performance
over the long term.
[GRAPHIC OMITTED]
Photo of David Carlson
10
<PAGE>
GE Premier Growth Equity Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Energy 5.5%
Consumer 21.7%
Capital Goods 7.4%
Healthcare 21.8%
Financial Services 5.1%
Retail 4.5%
Technology 18.8%
Utilities 4.8%
Cash & Other 10.40%+
+ Includes cash equitized with futures of 3.3%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the period ended March 31, 1998
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. Inception Commencement
- --------------------------------------------------------------------------------
Class A 16.69% 49.52% 32.82% 12/31/96
- --------------------------------------------------------------------------------
Class A* 9.97% 40.94% 26.62% 12/31/96
- --------------------------------------------------------------------------------
Class B 16.36% 48.82% 32.17% 12/31/96
- --------------------------------------------------------------------------------
Class B* 12.36% 44.82% 29.91% 12/31/96
- --------------------------------------------------------------------------------
Class C 16.85% 49.94% 33.19% 12/31/96
- --------------------------------------------------------------------------------
Class D 16.98% 50.25% 33.49% 12/31/96
- --------------------------------------------------------------------------------
S&P 500 17.21% 48.04%
- --------------------------------------------------------------------------------
* With Load
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.
- --------------------------------------------------------------------------------
Top Ten Largest Holdings at March 31, 1998
- --------------------------------------------------------------------------------
Carnival Corp. (Class A) 3.30%
- --------------------------------------------------------------------------------
Tele-Communications Inc.
Liberty Media Group (Series A) 3.27%
- --------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 3.18%
- --------------------------------------------------------------------------------
Lincare Holdings Inc. 3.10%
- --------------------------------------------------------------------------------
Airtouch Communications Inc. 3.09%
- --------------------------------------------------------------------------------
Cardinal Health Inc. 3.06%
- --------------------------------------------------------------------------------
First Data Corp. 3.05%
- --------------------------------------------------------------------------------
Equifax Inc. 2.99%
- --------------------------------------------------------------------------------
Automatic Data Processing Inc. 2.83%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 2.82%
- --------------------------------------------------------------------------------
* Lipper Performance Comparison
Growth Peer Group
Based on total returns for the period ended March 31, 1998
SIX ONE
MONTHS YEAR
Number of Funds 936 858
in peer group:
Peer group average
annual total return: 11.55% 42.90%
Lipper categories
in peer group: Growth
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
11
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE PREMIER GROWTH EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 89.6%
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]CAPITAL GOODS -- 7.4%
Dover Corp. 18,444 $ 700,872
Molex Inc. (Class A) 23,345 625,938(h)
Waste Management Inc. 17,447 537,586
1,864,396
[GRAPHIC OMITTED]CONSUMER -- 21.7%
Carnival Corp. (Class A) 11,880 828,630
Catalina Marketing Corp. 13,127 690,808(a)
Cendant Corp. 17,280 684,720(a)
Comcast UK Cable Partners Ltd.
(Class A) 24,591 328,905(a)
Interpublic Group Cos. Inc. 12,877 799,984
NTL Inc. 14,954 646,760(a)
Tele-Communications Inc. Liberty
Media Group (Series A) 23,927 822,491(a)
Walt Disney Co. 6,148 656,299
5,458,597
[GRAPHIC OMITTED]ENERGY -- 5.5%
Baker Hughes Inc. 17,447 702,242
Schlumberger Ltd. 9,138 692,203
1,394,445
FINANCIAL -- 5.1%
Citicorp 4,320 613,440
Travelers Group Inc. 11,050 663,000
1,276,440
[GRAPHIC OMITTED]HEALTHCARE-- 21.8%
Cardinal Health Inc. 8,723 769,260
Dentsply International Inc. 20,853 650,353(h)
Johnson & Johnson 9,222 676,088
Lincare Holdings Inc. 11,050 780,406(a)
Omnicare Inc. 14,124 559,664
Scherer (R.P.) Corp. 10,053 678,577(a)
Sybron International Corp. 25,755 672,849(a)
Tenet Healthcare Corp. 19,025 690,845(a)
5,478,042
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
RETAIL TRADE -- 4.5%
Arbor Drugs Inc. 20,770 $ 489,393
Home Depot Inc. 9,388 633,103
1,122,496
TECHNOLOGY -
ELECTRONICS AND EQUIPMENT -- 5.1%
Cisco Systems Inc. 10,385 710,074(a)
Intel Corp. 7,228 564,236
1,274,310
[GRAPHIC OMITTED]TECHNOLOGY -
SOFTWARE & SERVICES -- 13.7%
Automatic Data Processing Inc. 10,468 712,479
Equifax Inc. 20,604 752,046
First Data Corp. 23,594 766,805(h)
Microsoft Corp. 7,644 684,138(a)
Reuters Holdings PLC ADR 8,072 521,148
3,436,616
UTILITIES -- 4.8%
Airtouch Communications Inc. 15,868 776,540(a,h)
WorldCom Inc. 9,970 429,333
1,205,873
TOTAL INVESTMENTS IN SECURITIES
(COST $17,398,797) 22,511,215
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.8%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $2,476,216) 2,476,216 2,476,216
OTHER ASSETS AND LIABILITIES,
NET 0.6% 150,058
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $25,137,489
================================================================================
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following long futures contracts open
at March 31, 1998:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
- --------------------------------------------------------------------------------
S&P 500 June 1998 3 $832,875 $10,838
Icons represent the top five industry weightings in the GE Premier Growth Equity
Fund at March 31, 1998.
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 $30 billion. His
responsibilities include overseeing the portfolio management team of the GE U.S.
Equity Fund. 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.
[GRAPHIC OMITTED]
Photo of Gene Bolton
Q. HOW DID THE GE U.S. EQUITY FUND'S INDUSTRY BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. For the six-months ended March 31, 1998, the Standard & Poor's 500
Composite Index posted a 17.21% return. Our Lipper peer group of 780 Growth
and Income funds posted an average return of 12.96% for the same period. To
see how your class of shares in the U.S. Equity Fund performed compared to
its respective benchmarks, please refer to the following page.
Q. WHAT FACTORS CONTRIBUTED TO THE STOCK MARKET'S PERFORMANCE?
A. Financial services companies continued to benefit from low inflation,
declining interest rates and consolidation within the industry. Retail
stocks also registered strong gains, thanks largely to the strength of the
U.S economy. The aging of America's population helped prop up the values of
attractively priced healthcare stocks, while utility stocks benefited from
declining interest rates and a move to safe, domestic equities. Despite
their attractive valuations and above-average dividend yields, energy
stocks were hurt by falling oil prices.
Q. WHICH STOCKS CONTRIBUTED FAVORABLY TO THE FUND'S TOTAL RETURN?
A. Morgan Stanley, Dean Witter picked up where it left off six months ago with
solid investment results during the period. The retail stocks that served
us well included Sears Roebuck and Lowes Cos., a building materials
supplier. Superior returns were recorded by Pfizer and Bristol-Myers Squibb
in the healthcare sector. Our better performing technology stocks included
Xerox and Cisco Systems. Other contributors to the fund's positive
investment results included Tele-Communications, Inc., a cable operator,
and Airtouch Communications, our best performer in the utility sector.
Q. WHAT NOTEWORTHY CHANGES WERE MADE TO THE PORTFOLIO?
A. We added to our technology sector holdings by purchasing EMC and Sun
Microsystems, which should do especially well in the ongoing move toward
networking. Temporary weakness in IBM, Equifax and First Data gave us the
opportunity to add to our positions in these stocks. In the energy sector,
we bought Schlumberger, R&B Falcon and Burlington Resources and sold
positions in Amoco, Atlantic Richfield, Texaco and Union Pacific Resources.
In the healthcare sector, we took advantage of high prices to reduce our
exposure to Pfizer, Schering Plough and added to Merck, whose earnings
growth rate is rising, as well as other attractively priced stocks such as
Pharmacia & Upjohn and Allergan.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. While not a significant factor in the direction of U.S. stock prices last
quarter, the Asian crisis remains a threat to our economy and, therefore,
to the domestic financial markets. The crisis, in our judgment, is unlikely
to have a major impact on our economy, but it is likely to offset profit
growth in certain industries. In turn, we expect inflation to be moderate,
earnings growth to slow and stock price gains to return to more modest
levels. In this environment, stock selection will be critically important
in delivering superior investment results.
13
<PAGE>
GE U.S. Equity Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Energy & Basic Materials 12.2%
Consumer 16.3%
Capital Goods 10.7%
Healthcare 12.5%
Financial Services 17.8%
Retail Trade 4.4%
Technology 11.0%
Transportation 2.3%
Utilities 7.5%
Cash & Other 5.3%+
+ Includes cash equitized with futures 0f 4.1%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since Commence-
6 Mo. 1 Yr. 3 Yr 5 Yr Inception ment
- --------------------------------------------------------------------------------
Class A 14.59% 44.43% 30.52% N/A 22.56% 1/1/94
- --------------------------------------------------------------------------------
Class A* 7.99% 36.15% 27.97% N/A 20.86% 1/1/94
- --------------------------------------------------------------------------------
Class B 14.27% 43.73% 29.86% N/A 22.12% 12/22/93
- --------------------------------------------------------------------------------
Class B* 10.27% 39.73% 29.46% N/A 22.12% 12/22/93
- --------------------------------------------------------------------------------
Class C 14.74% 44.79% 30.86% 20.63% 21.37% 2/22/93
- --------------------------------------------------------------------------------
Class D 14.85% 45.14% 31.18% N/A 23.05% 11/29/93
- --------------------------------------------------------------------------------
S&P 500 17.21% 48.04% 32.82% 22.40%
- --------------------------------------------------------------------------------
* With Load
Investment Profile
A mutual fund designed for investors who seek long-term growth of capital by
primarily investing in a diversified portfolio of growth and value stocks of
U.S. companies.
- --------------------------------------------------------------------------------
Top Ten Largest Holdings at March 31, 1998
- --------------------------------------------------------------------------------
Travelers Group Inc. 2.03%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.90%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1.87%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 1.83%
- --------------------------------------------------------------------------------
Merck & Co. Inc. 1.79%
- --------------------------------------------------------------------------------
International Business Machines 1.73%
- --------------------------------------------------------------------------------
Johnson & Johnson 1.66%
- --------------------------------------------------------------------------------
Du Pont de Nemours (E.I.) & Co. 1.51%
- --------------------------------------------------------------------------------
Dover Corp. 1.48%
- --------------------------------------------------------------------------------
Schlumberger Ltd. 1.45%
- --------------------------------------------------------------------------------
* Lipper Performance Comparison
Growth and Income Peer Group Based on average annual total returns for the
periods ended March 31, 1998
SIX ONE THREE FIVE
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds
in peer group: 780 717 473 287
Peer group average
annual total
return: 12.96% 40.83% 28.32% 19.39%
Lipper categories
in peer group: Growth & Income, S&P 500 Index
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
14
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE U.S. EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 94.1%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 3.6%
Air Products & Chemicals Inc. 16,823 $ 1,394,206
Airgas Inc. 31,275 539,494(a)
Barrick Gold Corp. 25,582 553,211
Champion International Corp. 6,799 369,271
Du Pont de Nemours (E.I.) & Co. 103,654 7,048,472
FMC Corp. 1,595 125,207(a)
Great Lakes Chemical Corp. 3,198 172,692
IMC Global Inc. 12,794 486,972
Mead Corp. 26,863 962,031
Morton International Inc. 49,635 1,628,648
Newmont Mining Corp. 49,916 1,525,558
Rayonier Inc. 16,404 749,458
Union Camp Corp. 4,797 286,621
W.R. Grace & Co. 3,840 321,360(a)
Weyerhaeuser Co. 9,593 542,004
16,705,205
[GRAPHIC OMITTED]CAPITAL GOODS -- 10.7%
AlliedSignal Inc. 202,608 8,509,536
AMP Inc. 6,719 294,376
Armstrong World Industries Inc. 5,967 516,518
Avery Dennison Corp. 8,730 465,964
Boeing Co. 9,276 483,512
Cooper Industries Inc. 18,223 1,083,130
Deere & Co. 32,618 2,020,277
Dover Corp. 181,399 6,893,162(h)
Emerson Electric Co. 81,612 5,320,082
Hubbell Inc. (Class B) 90,414 4,554,605
Jacobs Engineering Group Inc. 6,718 217,495(a)
Lockheed Martin Corp. 9,915 1,115,437
Mannesmann AG 462 338,216
Martin Marietta Materials Inc. 51,810 2,237,544
Masco Corp. 4,351 258,885
Molex Inc. (Class A) 31,662 848,937
National Service Industries Inc. 8,957 526,784
Parker Hannifin Corp. 8,955 458,944
Sherwin-Williams Co. 57,608 2,045,084
Textron Inc. 73,696 5,674,592
Timken Co. 10,872 367,610
Tyco International Ltd. 11,738 641,188
U.S. Filter Corp. 314 11,029(a)
U.S.A. Waste Services Inc. 29,102 1,296,858(a)
United Technologies Corp. 28,402 2,621,860
Waste Management Inc. 31,665 975,678
49,777,303
[GRAPHIC OMITTED]CONSUMER - CYCLICAL -- 8.6%
ACNielsen Corp. 32,460 858,161(a)
Carnival Corp. (Class A) 13,434 937,022
Catalina Marketing Corp. 12,154 639,604(a)
Cendant Corp. 22,572 894,416(a)
Circus Circus Enterprises Inc. 24,305 510,405(a)
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Comcast Corp. (Class A) 45,063 $ 1,591,287
Comcast UK Cable Partners Ltd.
(Class A) 27,500 367,813(a)
Echlin Inc. 6,938 363,811
Federal-Mogul Corp. 2,400 127,650
Ford Motor Co. 30,570 1,981,318
Gannett Inc. 54,488 3,916,325
General Motors Corp. 4,796 323,430
Goodyear Tire & Rubber Co. 14,073 1,066,030
Harman International Industries Inc. 12,156 534,864
Interpublic Group Cos. Inc. 51,448 3,196,207
ITT Industries Inc. 17,590 669,519
Knight-Ridder Inc. 14,393 804,209
McDonald's Corp. 50,329 3,019,740
Metromedia International Group Inc. 7,332 111,355(a)
NTL Inc. 64,366 2,783,830(a)
Safety-Kleen Corp. 9,594 272,230
Stanley Works 27,631 1,540,428
Tele-Communications Inc. (Series A) 68,715 2,136,607
Tele-Communications Inc. Liberty
Media Group (Series A) 25,272 868,725(a)
Tele-Communications TCI Ventures
Group 21,346 374,889(a)
Time Warner Inc. 18,456 1,328,832
Viad Corp. 6,397 155,127
Walt Disney Co. 47,829 5,105,746(h)
Xerox Corp. 32,229 3,430,374
39,909,954
CONSUMER - STABLE -- 7.7%
Anheuser Busch Cos. Inc. 67,542 3,128,039(h)
Archer-Daniels Midland Co. 28,785 631,471
Avon Products Inc. 19,096 1,489,488
Bestfoods 17,108 1,999,498
Coca Cola Co. 2,698 208,926
Colgate-Palmolive Co. 20,865 1,807,431
Conagra Inc. 35,179 1,130,125
General Mills Inc. 15,931 1,210,756
Gillette Co. 5,167 613,258
Hershey Foods Corp. 6,239 446,868
International Multifoods Corp. 4,796 143,580
Kellogg Co. 7,195 310,284
Kimberly Clark Corp. 83,657 4,193,307
Nestle S.A. (Regd.) 488 932,466
Pepsico Inc. 131,020 5,592,916
Philip Morris Cos. Inc. 99,720 4,157,078(h)
Procter & Gamble Co. 33,104 2,793,150
Ralston Purina Co. 15,638 1,657,628
Sara Lee Corp. 35,893 2,211,906
Sysco Corp. 17,910 458,944
Unilever N.V. 11,204 768,875
35,885,994
[GRAPHIC OMITTED]ENERGY -- 8.6%
Amoco Corp. 13,196 1,139,804
Anadarko Petroleum Co. 10,234 706,146
Atlantic Richfield Co. 17,267 1,357,618
Baker Hughes Inc. 52,771 2,124,033
British Petroleum PLC ADR 19,024 1,637,253
Burlington Resources Inc. 62,719 3,006,592
Diamond Offshore Drilling Inc. 4,478 203,189
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
15
<PAGE>
GE U.S. Equity Fund March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Elf Aquitaine S.A. ADR 5,596 $ 362,341
Exxon Corp. 96,212 6,506,336(h)
Halliburton Co. 6,393 320,849
Mobil Corp. 52,022 3,986,186
Nabors Industries Inc. 34,545 818,285(a)
Occidental Petroleum Corp. 12,792 374,965
Pennzoil Co. 3,835 247,837
R & B Falcon Corp. 23,025 682,116(a)
Royal Dutch Petroleum Co. ADR 75,471 4,287,696
Schlumberger Ltd. 89,257 6,761,218
Texaco Inc. 29,064 1,751,106
Tosco Corp. 11,191 394,483
Total S.A. ADR 14,711 883,579
Unocal Corp. 50,131 1,939,443
Valero Energy Corp. 6,074 202,720
YPF Sociedad Anonima ADR
(Class D) 12,792 434,928
40,128,723
[GRAPHIC OMITTED]FINANCIAL -- 12.1%
American Express Co. 48,695 4,470,810(h)
AmSouth Bancorp. 5,984 353,430
Bank of New York Inc. 21,009 1,319,628
BankAmerica Corp. 24,348 2,011,753
BankBoston Corp. 24,621 2,714,465
Beneficial Corp. 1,279 158,996
Chase Manhattan Corp. 19,953 2,691,161
Citicorp 41,351 5,871,842
Comerica Inc. 3,198 338,388
CoreStates Financial Corp. 6,396 574,041
Countrywide Credit Industries 7,291 387,790
Crestar Financial Corp. 7,076 418,369
Edwards A.G. Inc. 12,393 542,194
Federal National Mortgage Assoc. 139,836 8,844,627
First Chicago NBD Corp. 7,997 704,736
First of America Bank Corp. 6,441 557,146
First Union Corp. 6,396 362,973
Fleet Financial Group Inc. 5,759 489,875
GATX Corp. 2,142 167,076
ING Groep N.V. ADR 9,594 546,258
Mellon Bank Corp. 20,978 1,332,103
Merrill Lynch & Co. Inc. 5,760 478,080
Morgan Stanley, Dean Witter 67,893 4,947,702
National City Corp. 7,995 586,133
Norwest Corp. 13,431 558,226
State Street Corp. 19,308 1,314,151
Summit Bancorp. 4,479 224,230
T. Rowe Price & Associates 5,167 363,628
Travelers Group Inc. 157,730 9,463,800
United States Bancorp. 9,914 1,236,771
Wachovia Corp. 6,396 542,461
Waddell & Reed Financial Inc.
(Class A) 2,897 75,322(a)
Wells Fargo & Co. 4,607 1,526,069
56,174,234
[GRAPHIC OMITTED]HEALTHCARE -- 12.5%
Abbott Laboratories 80,187 6,039,083
Allergan Inc. 72,601 2,758,838
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Alza Corp. 5,757 $ 257,986
American Home Products Corp. 15,384 1,467,249(h)
Baxter International Inc. 16,825 927,478
Bristol-Myers Squibb Co. 83,333 8,692,674
Cardinal Health Inc. 34,284 3,023,420
Columbia/HCA Healthcare Corp. 5,116 164,991
Dentsply International Inc. 21,429 668,317
Eli Lilly & Co. 8,426 502,400
Johnson & Johnson 105,622 7,743,413
Lincare Holdings Inc. 12,782 902,729(a)
Merck & Co. Inc. 64,950 8,337,956
Omnicare Inc. 3,197 126,681
Pfizer Inc. 53,726 5,355,811
Pharmacia & Upjohn Inc. 17,589 769,519
Scherer (R.P.) Corp. 16,360 1,104,300(a)
Schering Plough Corp. 34,216 2,795,019
Shire Pharmaceuticals Group
PLC ADR 5,117 109,696(a)
Smithkline Beecham PLC ADR 43,515 2,722,407
Sun Healthcare Group Inc. 13,870 258,329(a)
Sybron International Corp. 19,186 501,234(a)
Tenet Healthcare Corp. 12,470 452,817(a)
Watson Pharmaceuticals Inc. 73,692 2,652,912(a)
58,335,259
INSURANCE -- 5.7%
American International Group Inc. 38,369 4,832,096
AXA-UAP 5,117 526,768
Chubb Corp. 30,323 2,376,565
CIGNA Corp. 1,597 327,385
Equitable Cos. Inc. 5,439 306,964
General Reinsurance Corp. 21,904 4,832,570
Hartford Financial Services
Group Inc. 6,255 678,668
Jefferson-Pilot Corp. 3,836 341,164
Lincoln National Corp. 17,364 1,473,769
Loews Corp. 38,448 4,008,204
Marsh & McLennan Cos. Inc. 33,653 2,938,328
Provident Cos. Inc. 63,321 2,172,702
Reliastar Financial Corp. 22,262 1,025,443
UNUM Corp. 16,534 912,470
26,753,096
RETAIL TRADE -- 4.4%
Arbor Drugs Inc. 37,412 881,520
Costco Cos. Inc. 20,467 1,092,426(a)
Dayton Hudson Corp. 25,745 2,265,560
Federated Department Stores Inc. 31,665 1,640,643(a)
Home Depot Inc. 50,471 3,403,638
Lowes Cos. Inc. 23,925 1,679,236
Sears Roebuck & Co. 49,932 2,867,969
Toys 'R Us Inc. 12,796 384,680(a)
Wal-Mart Stores Inc. 118,772 6,035,102
20,250,774
TECHNOLOGY -
ELECTRONICS AND EQUIPMENT -- 6.0%
Analog Devices Inc. 12,154 404,120(a)
Applied Materials Inc. 10,220 360,894(a)
Cisco Systems Inc. 53,013 3,624,764(a)
DSC Communications Corp. 372 6,766(a)
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
16
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
EG & G Inc. 7,995 $ 232,355
EMC Corp. 26,223 991,557(a)
Hewlett Packard Co. 34,175 2,165,841
Intel Corp. 68,439 5,342,519
International Business Machines 77,395 8,039,406
Perkin Elmer Corp. 8,950 647,197
Pitney Bowes Inc. 63,911 3,207,533
Storage Technology Corp. 7,035 535,100(a)
Sun Microsystems Inc. 31,839 1,328,283(a)
Varian Associates Inc. 18,228 1,009,375
27,895,710
TECHNOLOGY - SOFTWARE & SERVICES -- 4.4%
Automatic Data Processing Inc. 55,858 3,801,835
Computer Associates
International Inc. 17,267 997,169
Computer Sciences Corp. 2,558 140,690
Equifax Inc. 155,647 5,681,116
First Data Corp. 185,723 6,035,997
Microsoft Corp. 11,000 984,500(a)
Reuters Holdings PLC ADR 36,565 2,360,728
Symantec Corp. 7,676 206,772(a)
UNOVA Inc. 9,597 191,940(a)
20,400,747
TRANSPORTATION -- 2.3%
Burlington Northern Santa Fe 32,577 3,388,008
Canadian Pacific Ltd. 57,563 1,698,108
Continental Airlines Inc. (Class B) 43,494 2,557,991(a)
Delta Air Lines Inc. 3,839 453,962
FDX Corp. 3,838 272,978(a)
KLM Royal Dutch Air Lines N.V. 9,594 389,756
Pittston Brinks Group 12,471 475,457
U.S. Airways Group Inc. 2,239 165,966(a)
UAL Corp. 12,793 1,188,949(a)
10,591,175
UTILITIES -- 7.5%
Airtouch Communications Inc. 124,222 6,079,114(a)
American Electric Power Inc. 21,748 1,092,837
American Telephone &
Telegraph Corp. 35,719 2,344,059
Bell Atlantic Corp. 35,812 3,670,730
Bellsouth Corp. 19,831 1,339,832
CMS Energy Corp. 14,709 690,404
Duke Energy Corp. 33,577 1,999,930
Edison International 7,036 206,683
El Paso Natural Gas Co. 10,269 724,606
Florida Progress Corp. 21,749 906,661
FPL Group Inc. 16,535 1,062,374
GTE Corp. 32,781 1,962,762
Illinova Corp. 6,396 193,079
MCI Communications Corp. 5,117 253,292
MCN Corp. 15,029 561,709
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
New Century Energies Inc. 13,431 $ 676,587
Northern States Power Co. 8,955 528,345
Pinnacle West Capital Corp. 12,792 568,445
SBC Communications Inc. 113,482 4,950,652
Sonat Inc. 11,514 500,859
Sprint Corp. 17,911 1,212,351
Teleport Communications
Group, Inc. 5,116 300,565(a)
U.S. WEST Communications Group 19,188 1,050,543
WorldCom Inc. 49,172 2,117,469
34,993,888
TOTAL COMMON STOCK
(Cost $299,011,769) 437,802,062
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), $2.20
(Cost $3,375,176) 28,143 2,603,227
TOTAL INVESTMENTS IN SECURITIES
(Cost $301,386,945) 440,405,289
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.0%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund 22,874,103 22,874,103
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TIME DEPOSIT
State Street Cayman Islands
5.75% 04/01/98 $ 485,000 485,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $23,359,103) 23,359,103
OTHER ASSETS AND LIABILITIES,
NET 0.3% 1,497,664
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $465,262,056
================================================================================
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long futures
contracts open at March 31, 1998:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
- --------------------------------------------------------------------------------
S&P 500 June 1998 68 $18,878,500 $95,474
Icons represent the top five industry weightings in the GE U.S. Equity Fund at
March 31, 1998.
17
<PAGE>
GE Mid-Cap Growth Fund
Q&A
Elaine G. Harris is the Portfolio Manager of the GE Mid-Cap Growth Fund. Elaine
is currently a Senior Vice President of GE Investments and manages equity assets
which exceed $1 billion. She has more than 14 years of investment experience and
has held positions with GE Investments since 1993. From 1991 to 1993, Elaine
served as Senior Vice President and Portfolio Manager at SunAmerica Asset
Management and, before that, as Portfolio Manager at Alliance Capital Management
Company and in various positions at Fidelity Management and Research
Corporation. Elaine is a member of the New York Society of Security Analysts.
She holds an MBA in Finance from the Wharton School and a BA in Math and
Computer Science from Tufts University.
[GRAPHIC OMITTED]
Photo of Elaine G. Harris
Q. HOW DID THE GE MID-CAP GROWTH FUND'S INDUSTRY BENCHMARK AND LIPPER PEERS
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. For the six-month period ended March 31, 1998, the Standard & Poor's
Mid-Cap 400 Index returned 11.93%. Our Lipper peer group of 295 Mid-Cap
funds posted an average return of 8.41% for the same period. To see how
your class of shares in the Mid-Cap Growth Fund performed compared to their
respective benchmarks, please refer to the following page.
Q. PLEASE ELABORATE ON THE FUND'S PERFORMANCE.
A. While underperforming its peers and benchmark for the last six months, the
fund has outperformed since the beginning of 1998 following a restructuring
during the fourth quarter of 1997 after GEIM took over management. Retail
stocks contributed favorably to our investment results. Brand name apparel
makers were among the better performers within the retail group.
Specifically, we enjoyed good investment results from our exposure to Jones
Apparel, St. John Knits and Wolverine Worldwide. Other stocks that
contributed to our investment results include United Rentals, an equipment
rental company that is rapidly expanding through acquisitions; HealthCare
Financial Partners, a specialty lender; Compuware, a mainframe software
company; and Gilat Satellite Networks, a satellite company based in Israel
that specializes in setting up telephone service in third-world countries.
Q. WHAT NOTABLE CHANGES WERE MADE TO THE FUND?
A. Fearing an economic backlash from the Asian financial crisis, we reduced
our exposure to technology stocks. Many of these companies depend on Asia
for a significant portion of their revenues. This strategy proved effective
late in the period as companies that failed to meet analysts' earnings
expectations weighed heavily on stock prices in this sector.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. Our outlook for mid-cap stocks remains positive. Since mid-cap stocks have
not kept pace with their large-cap counterparts for many quarters, values
can still be found. The major threat remains a flare-up in the Asian
economic crisis. While the stock market shrugged off the Asian flu in
recent months, uncertainty about the future course of events continues to
pose a threat to the U.S. economy. Continuing economic problems in Asia may
result in a flood of cheap Asian products into the U.S., which would put
pressure on U.S. corporations to lower prices, thereby impacting their
earnings potential. Furthermore, with the U.S. dollar already strong
against most major currencies, any downturn in Asian demand would put
pressure on U.S. corporations with a strong export business. Given this
scenario, we intend to focus on high-quality companies with broadly
diversified global exposure.
18
<PAGE>
GE Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Energy & Basic Materials 9.5%
Consumer 8.4%
Capital Goods 16.2%
Healthcare 11.5%
Financial Services 18.3%
Retail Trade 9.1%
Technology 10.2%
Transportation 4.1%
Utilities 2.3%
Cash & Other 10.4%+
+ Includes cash equitized with futures of 2.0%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 7.22% 45.35% 26.40% 19.37% 9/8/93
- --------------------------------------------------------------------------------
Class A* 1.05% 36.99% 23.93% 17.83% 9/8/93
- --------------------------------------------------------------------------------
Class B 6.90% 44.45% 25.59% 18.56% 9/8/93
- --------------------------------------------------------------------------------
Class B* 4.57% 41.29% 25.16% 18.56% 9/8/93
- --------------------------------------------------------------------------------
Class C N/A N/A N/A 6.46% 10/2/97
- --------------------------------------------------------------------------------
Class D N/A N/A N/A 11.20% 1/5/98
- --------------------------------------------------------------------------------
S&P 400 11.93% 49.23% 28.23%
- --------------------------------------------------------------------------------
* With Load
Investment Profile
GE Mid-Cap Growth Fund's investment objective is long-term growth of capital
which the fund seeks to achieve by investing primarily in equity securities of
companies with medium-sized market capitalization that have the potential for
above-average growth.
- --------------------------------------------------------------------------------
Top Ten Largest Holdings at March 31, 1998
- --------------------------------------------------------------------------------
HealthCare Financial Partners Inc. 1.45%
- --------------------------------------------------------------------------------
First Commerce Corp. 1.42%
- --------------------------------------------------------------------------------
HBO & Co. 1.34%
- --------------------------------------------------------------------------------
Barnes & Noble Inc. 1.33%
- --------------------------------------------------------------------------------
SunGard Data Systems Inc. 1.31%
- --------------------------------------------------------------------------------
Comdisco Inc. 1.25%
- --------------------------------------------------------------------------------
Sterling Commerce Inc. 1.23%
- --------------------------------------------------------------------------------
Tyco International Ltd. 1.22%
- --------------------------------------------------------------------------------
Equitable Cos. Inc. 1.22%
- --------------------------------------------------------------------------------
Airtouch Communications Inc. 1.21%
- --------------------------------------------------------------------------------
* Lipper Performance Comparison
Mid-Cap Peer Group
Based on average annual total returns for the periods ended
March 31, 1998
SIX ONE THREE
MONTHS YEAR YEAR
------ ---- ----
Number of Funds
in peer group: 295 274 157
Peer group average
annual total return: 8.41% 43.06% 24.46%
Lipper categories
in peer group: Mid-Cap
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
19
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
MID-CAP GROWTH FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 89.6%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 2.9%
Crompton & Knowles Corp. 16,330 $ 472,549
Minerals Technologies Inc. 9,237 465,314
Morton International Inc. 11,876 389,681
1,327,544
[GRAPHIC OMITTED]CAPITAL GOODS -- 16.2%
AlliedSignal Inc. 9,897 415,674
AVX Corp. 12,206 245,646
Berg Electronics Corp. 18,141 465,997(a)
Case Corp. 6,103 415,767
Deere & Co. 7,588 469,982
Dover Corp. 12,536 476,368
Hexcel Corp. 14,020 385,550(a)
Hubbell Inc. (Class B) 8,742 440,378
Kennametal Inc. 8,412 442,682
Martin Marietta Materials Inc. 11,711 505,769
Masco Corp. 8,907 529,966
Molex Inc. (Class A) 12,990 348,294
Textron Inc. 6,433 495,341
Thermo Electron Corp. 10,557 426,239(a)
Thomas & Betts Corp. 7,423 475,072
Tyco International Ltd. 10,227 558,650
U.S. Filter Corp. 9,897 347,632(a)
7,445,007
[GRAPHIC OMITTED]
CONSUMER - CYCLICAL-- 7.3%
Cendant Corp. 13,476 533,986(a)
CKS Group Inc. 10,557 198,604(a)
Interpublic Group Cos. Inc. 8,412 522,595
Jacor Communications Inc. 9,237 544,983(a)
Jones Apparel Group Inc. 7,917 435,930(a)
Sunbeam Corp. 9,402 414,276
United Rentals Inc. 11,018 286,468(a)
Wolverine World Wide Inc. 15,505 438,016
3,374,858
CONSUMER - STABLE -- 1.1%
Sealed Air Corp. 7,588 497,014(a)
ENERGY -- 6.6%
Anadarko Petroleum Co. 5,773 398,337
Apache Corp. 9,897 363,715(h)
BJ Services Co. 11,216 408,683(a)
Burlington Resources Inc. 8,049 385,849
Nabors Industries Inc. 10,557 250,069(a)
Schlumberger Ltd. 5,113 387,310
Tosco Corp. 12,371 436,077
USX-Marathon Group 11,216 422,002
3,052,042
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
FINANCIAL -- 13.9%
American Express Co. 5,113 $ 469,437(h)
Comdisco Inc. 13,196 575,675
Crestar Financial Corp. 8,742 516,871
FINOVA Group Inc. 8,907 524,400
First American Corp. 8,742 428,358
First Commerce Corp. 7,588 650,671
Firstar Corp. 11,216 443,032
GATX Corp. 6,433 501,774
HealthCare Financial Partners Inc. 14,020 664,197(a)
Imperial Credit Industries Inc. 16,330 386,817(a)
New Century Financial Corp. 23,422 231,292(a)
Summit Bancorp. 9,402 470,688
Travelers Group Inc. 8,907 534,420
6,397,632
[GRAPHIC OMITTED]
HEALTHCARE-- 11.5%
Baxter International Inc. 7,917 436,425
Cardinal Health Inc. 5,938 523,657
Covance Inc. 19,629 482,137(a)
HBO & Co. 10,227 617,455
Henry Schein Inc. 11,711 486,007(a)
McKesson Corp. 8,248 476,322
Medpartners Inc. 7,422 76,076(a)
Mylan Laboratories Inc. 13,436 309,028(h)
Sybron International Corp. 19,464 508,497(a)
Tenet Healthcare Corp. 14,680 533,067(a)
Teva Pharmaceutical
Industries Ltd. ADR 7,423 317,333
United Healthcare Corp. 8,082 523,310
5,289,314
INSURANCE -- 4.4%
American International Group Inc. 4,124 519,366(h)
Equitable Cos. Inc. 9,897 558,562
Hartford Financial Services
Group Inc. 4,783 518,956
Provident Cos. Inc. 12,206 418,818
2,015,702
[GRAPHIC OMITTED]
RETAIL TRADE -- 9.1%
Barnes & Noble Inc. 15,670 611,130(a)
Consolidated Stores Corp. 9,732 417,868(a)
Federated Department Stores Inc. 9,402 487,141(a)
General Nutrition Cos. Inc. 13,855 550,736(a)
Pier 1 Imports Inc. 13,258 359,623
Polo Ralph Lauren Corp. (Class A) 8,412 252,886(a)
Samsonite Corp. 5,773 169,582(a)
St. John Knits Inc. 9,072 428,652
Tiffany & Co. 9,237 449,726
Zale Corp. 15,010 433,414(a,h)
4,160,758
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
20
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TECHNOLOGY - ELECTRONICS
AND EQUIPMENT -- 4.9%
Analog Devices Inc. 12,206 $ 405,850(a)
Gilat Satellite Networks Ltd. 11,381 415,406(a)
Nokia Corp. ADR 4,618 498,455
Northern Telecom Ltd. 7,918 511,701
Perkin Elmer Corp. 5,608 405,529
2,236,941
TECHNOLOGY -
SOFTWARE & SERVICES-- 5.3%
Cadence Design Systems Inc. 15,505 536,861(a)
Compuware Corp. 5,526 272,846(a)
National Data Corp. 10,721 445,592
Sterling Commerce Inc. 12,206 566,053(a)
SunGard Data Systems Inc. 16,330 601,148(a)
2,422,500
TRANSPORTATION -- 4.1%
Canadian Pacific Ltd. 14,020 413,590
CNF Transportation Inc. 9,897 355,673
Laidlaw Inc. 26,226 416,338(h)
U.S. Xpress Enterprises Inc.
(Class A) 16,495 342,271(a)
Wisconsin Central Transportation
Corp. 12,536 352,967(a)
1,880,839
UTILITIES -- 2.3%
Airtouch Communications Inc. 11,381 556,958(a)
WorldCom Inc. 11,381 490,094
1,047,052
TOTAL INVESTMENTS IN SECURITIES
(COST $36,487,719) 41,147,203
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 10.8%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $4,937,058) 4,937,058 $ 4,937,058
OTHER ASSETS AND LIABILITIES,
NET (0.4%) (176,808)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $45,907,453
================================================================================
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Mid-Cap Growth Fund had the following long futures contracts open at
March 31, 1998:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
- --------------------------------------------------------------------------------
S&P Mid-Cap
400 June 1998 5 $933,625 $18,725
Icons represent the top five industry weightings in the GE Mid-Cap Growth Fund
at March 31, 1998.
21
<PAGE>
GE Value Equity Fund
Q&A
Peter J. Hathaway is the Portfolio Manager for the GE Value Equity Fund. He is
currently a Senior Vice President of GE Investments and manages equity assets of
over $6 billion. Pete has more than 36 years of investment experience and has
held positions with GE Investments since 1985. Pete was Senior Vice President
and portfolio manager at Ameritrust from 1975 to 1985, and previously he held
investment positions at Merrill Lynch, Equitable Life and US Trust. He holds an
MBA from the Wharton School at the University of Pennsylvania and a BS in
Finance from Arizona State University.
Q. HOW DID THE GE VALUE EQUITY FUND'S INDUSTRY BENCHMARK AND LIPPER PEERS
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. For the six-month period ended March 31, 1998, the Standard & Poor's
500/Barra Value Index returned 14.03%. Our Lipper peer group of 780 Growth
and Income funds posted an average return of 12.96% for the same period. To
see how your class of shares in the Value Equity Fund performed compared to
its respective benchmarks, please refer to the following page.
Q. WHAT DROVE THE FUND'S PERFORMANCE.
A. Large-cap stocks continued to generate solid investment results in an
environment of low inflation. But some sectors fared better than others:
The strong economy helped the fund's retail stocks and other economically
sensitive companies, as consumers continued to show optimism about their
rising income levels. Financial stocks benefited from the wave of
consolidations sweeping the industry. Transportation stocks, especially
airlines, enjoyed solid gains, thanks in part to lower oil prices. However,
falling oil prices hurt our exposure in the energy industry. Finally, our
performance in the technology sector was mixed, as companies that announced
negative earnings surprises, primarily due to falling Asia demand, proved
to be a drag on even the best quality companies in the sector.
Q. WHICH STOCKS CONTRIBUTED FAVORABLY TO THE FUND'S PERFORMANCE?
A. Some of the better performing stocks that received a boost from the strong
economy included Lowes Cos., a building material supplier, and retailers
Sears Roebuck and Dayton Hudson. Financial companies, such as Morgan
Stanley, Dean Witter and Citicorp also fared well. Xerox recorded solid
investment results following the introduction of two products that were
well received in the marketplace. Airline stocks, such as Continental,
posted above-average gains. Two technology stocks that fared well for the
fund were EMC, an information storage provider, and Sun Microsystems, a
maker of servers and network workstations. Both companies benefited from
business activities associated with the internet.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED IT GOING
FORWARD?
A. Looking ahead, we remain optimistic about the outlook for financial and
transportation stocks for the same reasons that have fueled their advance
in the first quarter. Since we believe the current oversupply in oil due to
last winter's unusually warm climate is only temporary, our long-term
outlook on energy stocks remains favorable based on their attractive
valuations and dividend yields. As always, we will continue to focus on
what we believe to be financially sound, well-managed companies with
consistent long-term earnings growth potential selling at reasonable
valuations compared to the market. Our strategy will be to hold these types
of securities over the long term and to use market downturns to add to
their positions at more favorable prices. Portfolio turnover is expected to
be low. Our hope is to generate long-term capital gains as opposed to
short-term capital gains, resulting in lower tax liability for shareholders
who own the fund in taxable accounts.
[GRAPHIC OMITTED]
Photo of Peter J. Hathaway
22
<PAGE>
GE Value Equity Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Energy & Basic Materials 12.0%
Consumer 13.8%
Capital Goods 10.0%
Healthcare 10.8%
Financial Services 18.7%
Retail Trade 6.0%
Technology 10.2%
Transportation 3.6%
Utilities 9.7%
Cash & Other 5.2%+
+ Includes cash equitized with futures of 4.2%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 14.92% 45.99% 30.28% 20.86% 9/8/93
- --------------------------------------------------------------------------------
Class A* 8.32% 37.60% 27.73% 19.30% 9/8/93
- --------------------------------------------------------------------------------
Class B 14.59% 45.04% 29.37% 20.04% 9/8/93
- --------------------------------------------------------------------------------
Class B* 11.43% 41.05% 28.97% 20.04% 9/8/93
- --------------------------------------------------------------------------------
Class C N/A N/A N/A 14.07% 10/2/97
- --------------------------------------------------------------------------------
Class D N/A N/A N/A 12.40% 1/5/98
- --------------------------------------------------------------------------------
S&P/Barra
500 Value 14.03% 42.48% 30.25%
- --------------------------------------------------------------------------------
* With Load
Investment Profile
GE Value Equity Fund's investment objective is long-term growth of capital and
future income which the Fund seeks to achieve by investing primarily in equity
securities of companies with large-sized market capitalization that the Fund's
management considers to be undervalued by the market.
- --------------------------------------------------------------------------------
Top Ten Largest Holdings at March 31, 1998
- --------------------------------------------------------------------------------
International Business Machines 2.51%
- --------------------------------------------------------------------------------
Du Pont de Nemours (E.I.) & Co. 2.13%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2.06%
- --------------------------------------------------------------------------------
Wal-Mart Stores Inc. 1.99%
- --------------------------------------------------------------------------------
Morgan Stanley, Dean Witter 1.93%
- --------------------------------------------------------------------------------
Merck & Co. Inc. 1.90%
- --------------------------------------------------------------------------------
Johnson & Johnson 1.58%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.50%
- --------------------------------------------------------------------------------
Textron Inc. 1.48%
- --------------------------------------------------------------------------------
Travelers Group Inc. 1.44%
- --------------------------------------------------------------------------------
* Lipper Performance Comparison
Growth and Income Peer Group
Based on average annual total returns for the periods ended
March 31, 1998
SIX ONE THREE
MONTHS YEAR YEAR
------ ---- ----
Number of Funds
in peer group: 780 717 473
Peer group average
annual total return: 12.96% 40.83% 28.32%
Lipper categories
in peer group: Growth & Income, S&P 500 Index
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
23
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 93.9%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 3.8%
Barrick Gold Corp. 7,776 $ 168,156
Du Pont de Nemours (E.I.) & Co. 20,912 1,422,016
Mead Corp. 5,054 180,996
Newmont Mining Corp. 13,608 415,894
Rayonier Inc. 3,802 173,704
Weyerhaeuser Co. 2,917 164,811
2,525,577
[GRAPHIC OMITTED]
CAPITAL GOODS -- 10.0%
AlliedSignal Inc. 18,785 788,970(h)
Armstrong World Industries Inc. 1,814 157,024
Boeing Co. 1,555 81,054
Cooper Industries Inc. 5,538 329,165
Deere & Co. 7,722 478,281
Dover Corp. 14,905 566,390
Emerson Electric Co. 10,527 686,229
Hubbell Inc. (Class B) 10,497 528,786
Jacobs Engineering Group Inc. 2,040 66,045(a)
Lockheed Martin Corp. 3,013 338,963
Martin Marietta Materials Inc. 10,303 444,961
Parker Hannifin Corp. 2,722 139,503
Sherwin-Williams Co. 7,096 251,908
Textron Inc. 12,845 989,065
Timken Co. 3,305 111,750
U.S.A. Waste Services Inc. 3,500 155,969(a)
United Technologies Corp. 5,215 481,410
Waste Management Inc. 3,449 106,272
6,701,745
CONSUMER - CYCLICAL -- 5.8%
ACNielsen Corp. 2,722 71,963(a)
Ford Motor Co. 6,804 440,984
Gannett Inc. 4,963 356,716
Goodyear Tire & Rubber Co. 4,276 323,907
Interpublic Group Cos. Inc. 2,722 169,104
ITT Industries Inc. 1,944 73,994
Knight-Ridder Inc. 972 54,311
McDonald's Corp. 8,359 501,540
Stanley Works 3,009 167,752
Tele-Communications Inc. (Series A) 3,888 120,892
Time Warner Inc. 1,361 97,992
Walt Disney Co. 5,342 570,258
Xerox Corp. 8,748 931,115
3,880,528
CONSUMER - STABLE -- 8.0%
Anheuser Busch Cos. Inc. 11,664 540,189(h)
Archer-Daniels Midland Co. 8,748 191,909
Bestfoods 3,888 454,410
Colgate-Palmolive Co. 2,811 243,503
Conagra Inc. 10,692 343,480
General Mills Inc. 3,345 254,220
Kimberly Clark Corp. 6,415 321,552
Nestle S.A. (Regd.) 149 284,708
Pepsico Inc. 18,019 769,186(h)
Philip Morris Cos. Inc. 8,359 348,466
Procter & Gamble Co. 6,651 561,178
Ralston Purina Co. 3,307 350,542
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Sara Lee Corp. 8,748 $ 539,095
Sysco Corp. 5,444 139,503
5,341,941
[GRAPHIC OMITTED]ENERGY -- 8.2%
Amoco Corp. 2,009 173,527
Atlantic Richfield Co. 68 5,347
Baker Hughes Inc. 1,763 70,961
British Petroleum PLC ADR 4,314 371,274
Burlington Resources Inc. 8,748 419,357
Diamond Offshore Drilling Inc. 1,363 61,846
Exxon Corp. 13,745 929,506
Halliburton Co. 1,999 100,325
Mobil Corp. 11,077 848,775
Nabors Industries Inc. 4,859 115,098(a)
Occidental Petroleum Corp. 3,888 113,967
R & B Falcon Corp. 5,541 164,152(a)
Royal Dutch Petroleum Co. ADR 10,580 601,076
Schlumberger Ltd. 6,998 530,098
Texaco Inc. 6,462 389,335
Total S.A. ADR 4,483 269,260
Unocal Corp. 5,832 225,626
YPF Sociedad Anonima ADR
(Class D) 2,916 99,144
5,488,674
[GRAPHIC OMITTED]FINANCIAL -- 13.1%
American Express Co. 7,582 696,122
AmSouth Bancorp. 1,818 107,376
Bank of New York Inc. 3,888 244,215
BankAmerica Corp. 2,138 176,652
BankBoston Corp. 3,499 385,765
Chase Manhattan Corp. 2,916 393,295
Citicorp 5,499 780,858
Comerica Inc. 944 99,887
CoreStates Financial Corp. 1,944 174,474
Crestar Financial Corp. 2,138 126,409
Edwards A.G. Inc. 3,767 164,806
Federal National Mortgage Assoc. 15,832 1,001,374
First Chicago NBD Corp. 2,429 214,056
First of America Bank Corp. 1,930 166,945
First Union Corp. 1,944 110,322
Fleet Financial Group Inc. 1,749 148,774
ING Groep N.V. ADR 2,916 166,030
Mellon Bank Corp. 3,484 221,234
Merrill Lynch & Co. Inc. 1,778 147,574
Morgan Stanley, Dean Witter 17,691 1,289,232
National City Corp. 1,944 142,520
Norwest Corp. 4,051 168,370
Summit Bancorp. 1,362 68,185
T. Rowe Price & Associates 1,571 110,559
Travelers Group Inc. 16,052 963,120
United States Bancorp. 2,429 303,018
Wachovia Corp. 1,944 164,875
Waddell & Reed Financial Inc.
(Class A) 881 22,906(a)
8,758,953
[GRAPHIC OMITTED]HEALTHCARE-- 10.8%
Abbott Laboratories 7,776 585,630
Allergan Inc. 16,982 645,316
Alza Corp. 1,749 78,377
Baxter International Inc. 2,916 160,744
Bristol-Myers Squibb Co. 13,219 1,378,907(h)
Cardinal Health Inc. 1,555 137,132
Johnson & Johnson 14,386 1,054,674
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
24
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Merck & Co. Inc. 9,915 $1,272,838
Pfizer Inc. 4,764 474,911
Pharmacia & Upjohn Inc. 3,888 170,100
Schering Plough Corp. 9,720 794,002
Smithkline Beecham PLC ADR 3,306 206,832
Watson Pharmaceuticals Inc. 7,192 258,912(a)
7,218,375
INSURANCE -- 5.6%
American International Group Inc. 5,807 731,319
AXA-UAP 1,555 160,079
Chubb Corp. 3,554 278,545
CIGNA Corp. 487 99,835
Equitable Cos. Inc. 1,652 93,235
General Reinsurance Corp. 3,111 686,364
Hartford Financial Services
Group Inc. 1,901 206,259
Jefferson-Pilot Corp. 1,153 102,545
Lincoln National Corp. 3,596 305,210
Loews Corp. 4,463 465,268
Provident Cos. Inc. 9,720 333,517
Reliastar Financial Corp. 5,774 265,965
3,728,141
RETAIL TRADE -- 6.0%
Costco Cos. Inc. 6,221 332,046(a)
Dayton Hudson Corp. 6,027 530,376
Federated Department Stores Inc. 5,929 307,196(a)
Home Depot Inc. 7,776 524,394
Lowes Cos. Inc. 5,249 368,414
Sears Roebuck & Co. 10,692 614,122
Wal-Mart Stores Inc. 26,244 1,333,523(h)
4,010,071
TECHNOLOGY - ELECTRONICS AND
EQUIPMENT -- 7.4%
Analog Devices Inc. 1,944 64,638(a)
Applied Materials Inc. 1,571 55,476(a)
Cisco Systems Inc. 12,052 824,055(a)
EMC Corp. 6,221 235,232(a)
Hewlett Packard Co. 5,785 366,624
Intel Corp. 9,720 758,768
International Business Machines 16,135 1,676,023
Perkin Elmer Corp. 1,555 112,446
Pitney Bowes Inc. 5,443 273,171
Sun Microsystems Inc. 9,720 405,506(a)
Varian Associates Inc. 3,110 172,216
4,944,155
TECHNOLOGY -
SOFTWARE & SERVICES -- 1.9%
Automatic Data Processing Inc. 3,307 225,083
Computer Associates
International Inc. 3,499 202,067
Computer Sciences Corp. 778 42,790
Equifax Inc. 8,456 308,644
First Data Corp. 14,580 473,850
UNOVA Inc. 2,916 58,320(a)
1,310,754
TRANSPORTATION -- 3.6%
Burlington Northern Santa Fe 6,221 646,984
Canadian Pacific Ltd. 12,831 378,514
Continental Airlines Inc.
(Class B) 11,247 661,464(a)
Delta Air Lines Inc. 1,151 136,106
FDX Corp. 1,166 82,932(a)
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
KLM Royal Dutch Air Lines N.V. 2,916 $ 118,463
UAL Corp. 3,887 361,248(a)
2,385,711
[GRAPHIC OMITTED]UTILITIES -- 9.7%
Airtouch Communications Inc. 7,776 380,538(a)
American Electric Power Inc. 6,610 332,152(h)
American Telephone &
Telegraph Corp. 6,804 446,512
Bell Atlantic Corp. 6,804 697,410
Bellsouth Corp. 6,026 407,132
CMS Energy Corp. 4,471 209,858
Duke Energy Corp. 8,720 519,385
El Paso Natural Gas Co. 2,148 151,568
Florida Progress Corp. 6,576 274,137
FPL Group Inc. 2,916 187,353
GTE Corp. 8,111 485,646
MCN Corp. 3,111 116,274
New Century Energies Inc. 4,051 204,069
Northern States Power Co. 2,708 159,772
Pinnacle West Capital Corp. 3,879 172,373
SBC Communications Inc. 19,440 848,070
Sonat Inc. 3,499 152,207
Sprint Corp. 2,653 179,575
U.S. WEST Communications
Group 5,832 319,302
WorldCom Inc. 6,613 284,773
6,528,106
TOTAL COMMON STOCK
(Cost $52,525,778) 62,822,731
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.9%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), $2.20
(Cost $601,291) 6,804 629,370
TOTAL INVESTMENTS IN SECURITIES
(Cost $53,127,069) 63,452,101
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.4%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $3,589,078) 3,589,078 3,589,078
OTHER ASSETS AND LIABILITIES,
NET (0.2%) (134,628)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $66,906,551
================================================================================
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Value Equity Fund had the following long futures contracts open at March
31, 1998:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
- --------------------------------------------------------------------------------
S&P 500 June 1998 10 $2,776,250 $56,150
cons represent the top five industry weightings in the GE Value Equity Fund at
March 31, 1998.
25
<PAGE>
GEStrategic Investment Fund
Q&A
The GE Strategic Investment Fund is managed jointly by David Carlson, Ralph
Layman and Bob MacDougall. The fund follows an asset allocation strategy and
each portfolio manager is responsible for investments within his area of
expertise: Mr. Carlson manages the domestic equity investments in the portfolio
(please refer to page 10 for Dave's biographical details), Mr. Layman manages
the international equity holdings within the portfolio (please refer to page 3
for Ralph's biographical details) and Mr. MacDougall manages the fixed income
related investments in the portfolio (please refer to page 39 for Bob's
biographical details).
Q. HOW DID THE GE STRATEGIC INVESTMENT FUND'S INDUSTRY BENCHMARK AND LIPPER
PEERS PERFORM FOR THE SIXTH-MONTH PERIOD ENDED MARCH 31, 1998?
A. The 387 Balanced funds that comprise our peer group as tracked by Lipper
Analytical Services had an average return of 8.92% for the six-month period
ended March 31, 1998. As for the various asset classes, U.S. stocks, as
measured by the Standard & Poor's 500 Composite Price Index, returned
17.21%, international stocks, as represented by the MSCI EAFE Index,
registered a 5.71% return and bonds, according to the Lehman Brothers
Aggregate Bond Index, posted a 4.53% return for the same period. To see how
your class of shares in the Strategic Investment Fund performed compared to
the respective benchmarks, please refer to the following page.
Q. WHAT DROVE THE FUND'S PERFORMANCE.
A. Once again, U.S. stocks were the best performing asset class. Our
overweighted positions in healthcare and financial stocks helped
performance. However, our overweighting in energy hurt performance as stock
prices for these securities fell with the decline in crude oil prices. We
remain positive on the longer term outlook for energy stocks, particularly
oil service stocks.
Q. HOW DID THE FUND'S ASSET ALLOCATION CHANGE DURING THE PERIOD?
A. At the end of the period, 45% of the fund was invested in U.S. equities,
16% was invested in international equities, 35% was invested in fixed
income securities and 4% was in cash. At the start of the period, we had
41% in U.S. equities, 19% in international equities, 30% in fixed-income
securities and 10% in cash. We reduced our exposure in international
equities and increased our position in domestic equities due to our
concerns about the impact of Asia's economic and currency crisis on the
Japanese and southeast Asian markets. We increased our exposure to
fixed-income securities and reduced our cash position because we believe
the Asian crisis will lead to a slowdown in economic growth, causing
interest rates to decline and the prices of fixed-income securities to go
up in value. It's worth noting that the asset allocation process employed
for this fund is the same used for the $42 billion GE pension plan.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. In light of the uncertainty in Asia, investors are likely to continue
viewing the U.S. as a safe haven for their assets. However, our enthusiasm
for the U.S. market is tempered by record high valuation levels. As a
result, our U.S. stock weighting remains somewhat lower than normal. We
remain concerned about Asia's potential impact on international markets,
but are still bullish on Europe. We remain positive on fixed-income
securities due to their attractive real rates of return, the declining
supply of bonds and the impact of Asian problem on U.S. economic growth.
Given this scenario, we do not anticipate any major shift in strategy. We
will continue to focus on large-cap, fundamentally sound companies with
solid growth prospects and attractive valuations compared to the market.
26
<PAGE>
GE Strategic Investment Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Domestic Equity 45.8%
Foreign Equity 15.6%
Bonds and Notes 35.2%
Cash & Other 3.4%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since Commence-
6 Mo. 1 Yr. 3 Yr 5 Yr Inception ment
- --------------------------------------------------------------------------------
Class A 9.67% 26.96% 19.65% N/A 14.84% 1/1/94
- --------------------------------------------------------------------------------
Class A* 3.38% 19.63% 17.30% N/A 13.26% 1/1/94
- --------------------------------------------------------------------------------
Class B 9.25% 26.12% 18.98% N/A 14.25%1 2/22/93
- --------------------------------------------------------------------------------
Class B* 5.25% 22.12% 18.51% N/A 14.25%1 2/22/93
- --------------------------------------------------------------------------------
Class C 9.82% 27.30% 19.92% 13.96% 14.33% 2/22/93
- --------------------------------------------------------------------------------
Class D 9.92% 27.55% 20.25% N/A 15.39%1 1/29/93
- --------------------------------------------------------------------------------
LB Agg. 4.53% 12.00% 9.18% 6.94%
- --------------------------------------------------------------------------------
S&P 500 17.21% 48.04% 32.82% 22.40%
- --------------------------------------------------------------------------------
* With Load
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.
- --------------------------------------------------------------------------------
Top Ten Largest Holdings at March 31, 1998
- --------------------------------------------------------------------------------
U.S. Treasury Notes 5.375% 2/28/03 1.77%
- --------------------------------------------------------------------------------
Travelers Group Inc. 1.71%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds 6.125% 11/15/27 1.70%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds 10.625% 8/15/15 1.69%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds 12.50% 8/15/14 1.42%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.41%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc.
7.00% TBA 1.40%
- --------------------------------------------------------------------------------
U.S. Treasury Notes 5.875% 7/31/99 1.35%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 1.33%
- --------------------------------------------------------------------------------
Dover Corp. 1.32%
- --------------------------------------------------------------------------------
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
27
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE STRATEGIC INVESTMENT FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
DOMESTIC EQUITY -- 45.4%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.9%
Air Products & Chemicals Inc. 3,328 $ 275,808
Airgas Inc. 16,743 288,817(a)
Du Pont de Nemours (E.I.) & Co. 1,893 128,724
Morton International Inc. 16,264 533,662
1,227,011
[GRAPHIC OMITTED]
CAPITAL GOODS -- 5.5%
Alleghany Corp. Delaware 1,040 353,600
AlliedSignal Inc. 41,599 1,747,158
AMP Inc. 3,596 157,550
Dover Corp. 45,386 1,724,668
Emerson Electric Co. 7,422 483,822
Hubbell Inc. (Class B) 16,305 821,364
Molex Inc. (Class A) 16,949 454,445
Sherwin-Williams Co. 5,821 206,646
Textron Inc. 2,702 208,054
Tyco International Ltd. 6,283 343,209
U.S.A. Waste Services Inc. 4,278 190,638(a)
United Technologies Corp. 1,886 174,101
Waste Management Inc. 9,074 279,593
7,144,848
[GRAPHIC OMITTED]
CONSUMER - CYCLICAL -- 5.7%
Carnival Corp. (Class A) 7,190 501,503
Catalina Marketing Corp. 6,504 342,273(a)
Cendant Corp. 6,841 271,075(a)
Circus Circus Enterprises Inc. 6,163 129,423(a)
Comcast Corp. (Class A) 15,562 549,533
Comcast UK Cable Partners Ltd.
(Class A) 8,731 116,777(a)
Gannett Inc. 8,732 627,612
Harman International
Industries Inc. 6,505 286,220
Interpublic Group Cos. Inc. 11,210 696,421
McDonald's Corp. 5,578 334,680
Metromedia International
Group Inc. 3,924 59,596
NTL Inc. 20,936 905,482(a)
Stanley Works 3,784 210,958
Tele-Communications Inc.(Series A) 12,326 383,262
Tele-Communications Inc.
Liberty Media Group (Series A) 13,759 472,966(a)
Tele-Communications
TCI Ventures Group 11,300 198,456(a)
Time Warner Inc. 3,718 267,696
Walt Disney Co. 10,846 1,157,810
7,511,743
CONSUMER - STABLE -- 3.2%
Anheuser Busch Cos. Inc. 6,406 296,678
Avon Products Inc. 7,019 547,482
Coca Cola Co. 1,445 111,897
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Colgate-Palmolive Co. 3,140 $ 272,003
Gillette Co. 2,767 328,408
Kimberly Clark Corp. 16,435 823,804
Pepsico Inc. 21,547 919,788
Philip Morris Cos. Inc. 19,654 819,326
4,119,386
[GRAPHIC OMITTED]ENERGY -- 4.1%
Anadarko Petroleum Co. 5,478 377,982
Atlantic Richfield Co. 4,794 376,928
Baker Hughes Inc. 12,155 489,239
Burlington Resources Inc. 5,408 259,246
Exxon Corp. 7,338 496,232
Nabors Industries Inc. 6,506 154,111(a)
Royal Dutch Petroleum Co. ADR 20,544 1,167,156
Schlumberger Ltd. 20,783 1,574,312
Unocal Corp. 13,217 511,333
5,406,539
[GRAPHIC OMITTED]FINANCIAL -- 5.8%
American Express Co. 6,333 581,449
Citicorp 8,491 1,205,722
Countrywide Credit Industries 3,903 207,591
Federal National Mortgage Assoc. 29,246 1,849,809
Morgan Stanley, Dean Witter 2,619 190,860
State Street Corp. 10,337 703,562
Travelers Group Inc. 37,403 2,236,380
Wells Fargo & Co. 1,952 646,600
7,621,973
[GRAPHIC OMITTED]HEALTHCARE-- 8.8%
Abbott Laboratories 18,051 1,359,466
American Home Products Corp. 2,910 277,541
Bristol-Myers Squibb Co. 10,323 1,076,818
Cardinal Health Inc. 13,524 1,192,648
Dentsply International Inc. 11,469 357,689
Eli Lilly & Co. 2,911 173,568
Johnson & Johnson 20,092 1,472,995
Lincare Holdings Inc. 6,841 483,146(a)
Merck & Co. Inc. 10,615 1,362,701
Omnicare Inc. 1,713 67,878
Pfizer Inc. 13,868 1,382,466
Pharmacia & Upjohn Inc. 4,425 193,594
Scherer (R.P.) Corp. 5,677 383,197(a)
Smithkline Beecham PLC ADR 9,173 573,886
Sun Healthcare Group Inc. 7,423 138,253(a)
Sybron International Corp. 10,272 268,356(a)
Tenet Healthcare Corp. 6,677 242,458(a)
Watson Pharmaceuticals Inc. 15,141 545,076(a)
11,551,736
INSURANCE -- 2.9%
American International Group Inc. 7,322 922,114
Chubb Corp. 6,259 490,549
General Reinsurance Corp. 2,740 604,513
Loews Corp. 7,570 789,172
Marsh & McLennan Cos. Inc. 8,732 762,413
UNUM Corp. 3,201 176,655
3,745,416
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
28
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
RETAIL TRADE -- 0.8%
Arbor Drugs Inc. 14,552 $ 342,882
Home Depot Inc. 6,819 459,856
Toys 'R' Us Inc. 6,847 205,838(a)
1,008,576
TECHNOLOGY -
ELECTRONICS AND EQUIPMENT-- 1.4%
Applied Materials Inc. 1,883 66,493(a)
Cisco Systems Inc. 5,675 388,028(a)
Comverse Technology Inc. 2,896 141,542(a)
EMC Corp. 1,712 64,735(a)
Hewlett Packard Co. 3,492 221,306
Intel Corp. 10,957 855,331
Pitney Bowes Inc. 1,472 73,876
1,811,311
TECHNOLOGY -
SOFTWARE & SERVICES -- 4.3%
Automatic Data Processing Inc. 16,887 1,149,371
Equifax Inc. 41,431 1,512,232
First Data Corp. 48,964 1,591,330
Microsoft Corp. 5,890 527,155(a)
Reuters Holdings PLC ADR 14,095 910,008
5,690,096
TRANSPORTATION -- 0.2%
Pittston Brinks Group 6,676 254,522
UTILITIES -- 1.8%
Airtouch Communications Inc. 33,774 1,652,815(a)
Bell Atlantic Corp. 3,201 328,103
GTE Corp. 1,455 87,118
SBC Communications Inc. 1,712 74,686
WorldCom Inc. 5,650 243,303
2,386,025
TOTAL DOMESTIC EQUITY
(COST $38,047,581) 59,479,182
- --------------------------------------------------------------------------------
FOREIGN EQUITY -- 15.6%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.7%
Barlow Ltd. 10,418 84,825
Fresenius Medical Care AG 2,001 141,511
Iscor Ltd. 28,686 7,918
Ispat International N.V. (Regd.)
(Class A) 940 26,790(a)
Johnson Matthey PLC 2,754 28,399
Montedison S.p.A. 207,689 305,894
Pohang Iron & Steel Co. Ltd. 440 24,030
SGL Carbon AG 2,106 233,197
852,564
[GRAPHIC OMITTED]CAPITAL GOODS -- 1.9%
ABB AG 252 376,554
Cheung Kong (Holdings) Ltd. 5,000 14,905
Grupo Carso S.A. de C.V. ADR 15,068 186,466
Hyundai Heavy Industries 4,128 153,496
Lyonnaise Des Eaux S.A. 2,215 319,875
Mannesmann AG 693 507,324
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Preussag AG $ 398 $ 135,676
PT Mulia Industrindo 17,000 1,572
Siebe PLC 26,384 575,935
VA Technologie AG 1,619 255,059
2,526,862
[GRAPHIC OMITTED]
CONSUMER - CYCLICAL -- 2.9%
Airtours PLC 54,431 452,854
Autoliv Inc. SDR 6,932 215,013
Canon Inc. 15,000 338,900
Daimler-Benz AG 3,105 285,394
Electrolux AB (Series B) 504 41,603
Granada Group PLC 22,307 401,052
Honda Motor Co. 5,000 180,146
Industrie Natuzzi S.p.A. ADR 1,619 44,725
Johnson Electric Holdings 22,800 97,393
Kinnevik AB (Series B) 1,074 25,052
LucasVarity PLC 78,872 318,196
Michelin CGDE (Regd.) (ClassB) 4,131 246,560
Philips Electronics N.V. 2,002 146,913
PT Astra International Inc. 50,000 12,428
Reed International PLC 23,026 233,586
Renault S.A. 5,616 250,103
Saatchi & Saatchi PLC 14,945 39,904(a)
SEMA Group PLC 784 30,947
Sony Corp. 5,100 432,576
3,793,345
CONSUMER - STABLE -- 0.4%
Coca Cola Amatil Ltd. 23,197 181,795
Gruma S.A. de C.V. (Series B) 13,356 35,209
Panamerican Beverages Inc.(Class A) 5,393 216,394
San Miguel Corp. 24,610 42,744
476,142
[GRAPHIC OMITTED]ENERGY -- 1.1%
Coflexip S.A. ADR 4,239 261,758
ENI S.p.A. (Regd.) 4,831 32,913
OMV AG 408 52,582
Repsol S.A. 8,922 455,425
Saipem 8,416 50,090
Total S.A. (Class B) 4,551 546,340
Veba AG 390 27,665
1,426,773
[GRAPHIC OMITTED]FINANCIAL -- 3.0%
Alpha Credit Bank (Regd.) 1,057 81,855
Argentaria S.A. 1,664 137,854
Banca Intesa S.p.A. 33,652 203,315
Banco Comercial Portugues 8,833 28,277(a)
Banco Comercial Portugues (Regd.) 9,085 293,397
Banco Santander S.A. (Regd.) 3,533 176,064
Bank of Scotland PLC 16,914 200,463
Bayerische Vereinsbank AG 3,792 276,781
Credito Italiano 61,106 301,843
Den Danske Bank 1,552 202,805
Den Norske Bank 30,388 165,399
Grupo Financiero Bancomer S.A.
ADR (Series C) 9,145 108,597(a,b)
HSBC Holdings PLC (Regd.) 7,547 230,828
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
29
<PAGE>
GE Strategic Investment Fund March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ING Groep N.V. 9,450 $ 536,193
Investor AB (Series B) 672 36,056
Merita Ltd. (Series A) 37,990 228,707
Metro Bank & Trust Co. 9,100 83,816
National Westminster Bank PLC 4,538 83,031
Societe Generale 1,270 254,102
Sumitomo Realty & Development 12,000 70,797
Takefuji Corp. 2,000 94,577
Uniao de Banco Brasiliero S.A. GDR 5,004 181,395
3,976,152
[GRAPHIC OMITTED]HEALTHCARE -- 0.7%
Fresenius Medical Care AG 972 53,605
Medeva PLC 10,620 29,689
Novartis AG (Regd.) 208 368,110
Rhone-Poulenc Ltd. 5,052 256,696
Roche Holdings AG 3 32,470
Shire Pharmaceuticals Group
PLC ADR 2,739 58,717(a)
Teva Pharmaceutical
Industries Ltd. ADR 3,487 149,069
948,356
INSURANCE -- 1.3%
AXA-UAP 5,991 616,742
Commercial Union PLC 8,563 167,283
Pohjola Insurance Group (Series B) 882 40,844
Royal & Sun Alliance Insurance
Group PLC 25,252 321,266
Sampo Insurance Co. Ltd.
(Series A) 2,008 79,398
Schw Rueckversicher (Regd.) 57 125,217
Zurich Versicherungsgesellschaft
(Regd.) 600 348,311
1,699,061
RETAIL TRADE -- 0.3%
Carrefour S.A. 520 306,253
Credit Saison Co. Ltd. 3,150 69,750
Giordano International Ltd. 88,000 22,600
398,603
TECHNOLOGY -
ELECTRONICS AND EQUIPMENT -- 1.4%
Brambles Industries Ltd. 12,290 255,625
ECI Telecommunications Ltd. 9,139 281,024
Ericson LM Telephone (Series B) 2,538 120,623
Minebea Co. 4,000 43,836
NetCom Systems AB (Series B) 3,959 115,371
Nokia OY (Series A) (Pfd.Shares) 3,062 328,590
Samsung Display Devices Co. 2,349 110,242(a)
Schneider S.A. 5,517 424,624
Taiwan Semiconductor
Manufacturing Co. 39,000 192,183
1,872,118
TECHNOLOGY -
SOFTWARE & SERVICES -- 0.7%
Cap Gemini S.A. 7,372 444,372(a)
Dimension Data Holdings Ltd. 34,454 220,661
NTT Data Corp. 4 178,045
843,078
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TRANSPORTATION -- 0.3%
IHC Caland N.V. 4,052 $ 223,691
Railtrack Group PLC 11,707 192,056
415,747
UTILITIES -- 0.9%
Telecom Italia Mobile S.p.A. 69,773 374,891
Telecomunicacoes Brasileiras
S.A. ADR 1,637 212,503
Telecomunicacoes de Rio de Janeiro
S.A. (Pfd. Shares) 200,000 28,179
Telecomunicacoes de Sao Paulo
S.A. - Telesp 685,613 222,508
Telefonica de Peru S.A. ADR
(Class B) 8,080 174,225
Vodafone Group PLC 12,650 131,398
1,143,704
TOTAL FOREIGN EQUITY
(Cost $15,852,841) 20,372,505
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 35.2%
- --------------------------------------------------------------------------------
FEDERAL AGENCY -- 2.6%
Federal Home Loan Banks
6.15% 10/23/00 $ 95,000 95,119
6.172% 11/24/00 185,000 185,289
280,408
Federal Home Loan Mortgage Corp.
6.22% 03/18/08 175,000 174,207
Federal National Mortgage Assoc.
5.96% 07/23/99 385,000 386,024
5.82% 08/25/99 225,000 225,245
5.60% 03/27/00 500,000 498,515
5.38% 01/16/01 665,000 657,931
6.41% 07/08/02 200,000 204,156
6.99% 07/09/07 210,000 215,676
6.27% 02/05/08 435,000 431,330
7.00% 10/01/27 269,016 272,463
2,891,340
Small Business Administration
6.55% 10/01/17 67,000 67,754
6.55% 12/01/17 65,000 65,670
133,424
TOTAL FEDERAL AGENCY
(COST $3,474,154) 3,479,379
U.S. TREASURIES -- 14.5%
U.S. Treasury Bonds
11.875% 11/15/03 159,000 205,309(h)
13.75% 08/15/04 1,123,000 1,597,816
12.50% 08/15/14 1,212,000 1,865,910
10.625% 08/15/15 1,473,000 2,209,043
6.125% 11/15/27 2,177,000 2,232,448(h)
8,110,526
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
30
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. Treasury Notes
5.875% 07/31/99 - 08/31/99 $3,137,000 $3,147,997
5.625% 11/30/99 448,000 448,139
7.75% 12/31/99 81,000 83,860
5.375% 01/31/00 902,000 898,617
5.75% 11/15/00 980,000 982,754
6.625% 07/31/01 556,000 572,074
6.625% 03/31/02 486,000 502,174
5.375% 02/28/03 2,339,000 2,325,106
5.50% 03/31/03 732,000 727,996
6.625% 05/15/07 392,000 416,132
5.50% 02/15/08 19,000 18,768
10,123,617
U.S. Treasury STRIP
6.02% 08/15/11 973,000 440,117(d)
6.02% 02/15/12 845,000 370,803(d)
810,920
TOTAL U.S. TREASURIES
(COST $18,762,208) 19,045,063
ASSET BACKED -- 0.7%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 19,070 18,834
California Infrastructure
6.42% 12/26/09 38,000 38,672
Carco Auto Loan Master Trust
6.689% 08/15/04 148,000 148,971
First USA Credit Card Trust
5.798% 02/17/05 42,000 41,987
Iroquois Trust
6.68% 11/10/03 118,000 118,479(b)
6.752% 06/25/07 141,000 141,854(b)
Tiers Trust
6.688% 11/17/03 94,000 94,812
IMC Home Equity Loan Trust
7.23% 05/20/27 73,000 74,916
Mid State Trust
7.54% 07/01/25 30,257 31,802
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 168,593 168,721
TOTAL ASSET BACKED
(COST $870,942) 879,048
CORPORATE NOTES -- 7.2%
Abbey National PLC
7.35% 10/29/49 42,000 44,046
AFC Capital Trust
8.207% 02/03/27 100,000 111,630
Ameritech Capital Funding Corp.
6.55% 01/15/28 75,000 73,637
Applied Materials Inc.
7.125% 10/15/17 40,000 40,350
Arvin Industries Inc.
6.75% 03/15/08 55,000 54,326
Bancomer S.A.
9.00% 06/01/00 60,000 61,050(b)
Bank Austria AG
7.25% 02/15/17 250,000 262,660
Bank of Scotland
7.00% 11/29/49 100,000 100,875(b)
Bell Telephone Co. - Canada
9.50% 10/15/10 55,000 68,919
Boston University
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
7.625% 07/15/97 $ 30,000 $ 33,675
Brascan Ltd.
7.375% 10/01/02 60,000 62,068
BT Preferred Capital Trust
7.875% 02/25/27 120,000 122,521
Carter Holt Harvey Ltd.
8.875% 12/01/04 200,000 222,694
Circus Circus Enterprises Inc.
6.70% 11/15/96 70,000 69,945
Cleveland Electric Illuminating Co.
7.19% 07/01/00 30,000 30,452
Columbia University
6.83% 12/15/20 65,000 67,807
Conseco Inc.
8.70% 11/15/26 90,000 100,085
Continental Cablevision Inc.
8.50% 09/15/01 70,000 74,411
8.30% 05/15/06 40,000 43,942
Corporacion Andina De Fomento
6.75% 03/15/05 130,000 129,201
CSX Corp.
7.05% 05/01/02 85,000 86,930
DDR Pass-Through Asset Trust
7.125% 03/15/02 330,000 330,822(b)
Deutsche Bank Financial Inc.
7.50% 04/25/09 55,000 59,531
Digital Equipment Corp.
7.125% 10/15/02 30,000 30,769
Empresa Nacional de Electricid
8.125% 02/01/97 65,000 67,079
Energy Group Overseas
7.375% 10/15/17 75,000 77,518
Farmers Insurance Exchange
8.625% 05/01/24 50,000 57,480(b)
FBOP Capital Trust
10.20% 02/06/27 55,000 62,571(b)
Federated Department Stores Inc.
10.00% 02/15/01 145,000 158,685
First Security Capital
8.41% 12/15/26 41,000 44,608
Ford Motor Credit Corp.
7.32% 05/23/02 187,000 189,454
Fujian International
Trust & Investment Corp.
7.375% 08/25/07 65,000 59,688(b)
Goldman Sachs Group L.P.
6.20% 12/15/00 100,000 100,000(b)
Guangdong International
Trust & Investment Corp.
8.75% 10/24/16 50,000 45,793(b)
Heritage Media Corp.
8.75% 02/15/06 65,000 70,281
Hydro-Quebec
8.05% 07/07/24 95,000 110,318
8.25% 04/15/26 50,000 57,447
Ikon Capital Resource Inc.
6.27% 07/19/99 150,000 150,646
Israel Electric Corp. Ltd.
8.10% 12/15/96 25,000 25,594(b)
Korea Development Bank
7.125% 09/17/01 70,000 65,824
6.625% 11/21/03 75,000 65,816
Landeskreditbank Baden
7.875% 04/15/04 40,000 43,500
LCI International Inc.
7.25% 06/15/07 49,000 49,103
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
31
<PAGE>
GE Strategic Investment Fund March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Lehman Brothers Holdings Inc.
6.90% 03/30/01 $ 115,000 $ 116,940
Loewen Group International Inc.
6.70% 10/01/99 300,000 298,992(b)
7.50% 04/15/01 180,000 183,609(b)
Long Island Lighting
7.30% 07/15/99 80,000 80,958
Meditrust
7.114% 08/15/04 100,000 99,104
MIC Financing Trust
8.375% 02/01/27 130,000 136,024(b)
Morgan Stanley Finance PLC
8.03% 02/28/17 40,000 42,550
Nabisco Inc.
6.125% 02/01/33 70,000 68,741
National Westminster Bank PLC
7.75% 04/29/49 35,000 37,517
New Jersey Economic
Development Authority
7.425% 02/15/29 65,000 71,653
New York State Dormitory
Authority Revenue
6.32% 04/01/99 90,000 90,265
News America Holdings Inc.
8.15% 10/17/36 210,000 229,320
Niagara Mohawk Power Corp.
9.50% 06/01/00 80,000 84,330
Norfolk Southern Corp.
7.90% 05/15/97 138,000 155,890
North Atlantic Energy Corp.
9.05% 06/01/02 82,000 84,191
NRG Energy Inc.
7.50% 06/15/07 160,000 166,368
NWCG Holding Corp.
6.66% 06/15/99 120,000 111,406(d)
Ontario Province of Canada
6.125% 06/28/00 250,000 250,795
Oryx Energy Co.
10.00% 06/15/99 100,000 103,780
9.50% 11/01/99 75,000 78,257
Paramount Communications Inc.
5.875% 07/15/00 150,000 147,256
Petroleos Mexicanos
7.75% 10/29/99 50,000 50,188(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 60,000 61,691
7.20% 02/01/07 30,000 30,951
Raytheon Co.
7.20% 08/15/27 230,000 239,184
Reliance Industries Ltd.
10.50% 08/06/46 30,000 29,554(b)
Republic New York Corp.
7.20% 07/15/97 75,000 77,461
Republic of Argentina
9.50% 11/30/02 84,000 84,252
Republic of Columbia
7.25% 02/15/03 35,000 34,404
Republic of Panama
7.875% 02/13/02 50,000 50,125(b)
Riggs Capital Trust
8.625% 12/31/26 40,000 42,449(b)
RJR Nabisco Inc.
8.00% 07/15/01 125,000 128,376
7.625% 09/15/03 50,000 50,472
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
St. George Funding Co.
8.485% 12/31/49 $ 180,000 $ 182,477(b)
Stop & Shop Co. Inc.
9.75% 02/01/02 40,000 44,900
Sun Life Canada Capital Trust
8.526% 05/29/49 95,000 103,987(b)
Suntrust Banks Inc.
6.00% 01/15/28 60,000 58,470
Talisman Energy
7.25% 10/15/27 40,000 40,337
Taubman Realty Group L.P.
8.00% 06/15/99 80,000 81,538
TCI Communications Inc.
8.65% 09/15/04 85,000 93,235
Tele-Communications Inc.
6.469% 12/20/00 71,000 71,568
Tenet Healthcare Corp.
7.875% 01/15/03 60,000 60,900
8.00% 01/15/05 25,000 25,625
Time Warner Inc.
4.90% 07/29/99 100,000 98,091(b)
6.10% 12/30/01 180,000 176,881(b)
Total Access Communication PLC
7.625% 11/04/01 185,000 133,200(b)
Transamerica Capital
7.625% 11/15/37 100,000 103,766(b)
Universal Outdoor Inc.
9.75% 10/15/06 40,000 45,500
US West Capital Funding Inc.
7.90% 02/01/27 50,000 55,997
USX Marathon Group
9.80% 07/01/01 60,000 66,015
8.125% 07/15/23 60,000 65,798
Washington Mutual Capital
8.375% 06/01/27 65,000 69,845
Waterford Funding Corp.
8.09% 01/02/17 200,000 207,862
Westdeutsche Landesbank
6.75% 06/15/05 100,000 102,758
Williams Cos. Inc.
6.125% 02/15/02 120,000 119,075
Yale University Notes
7.375% 04/15/96 65,000 73,052
Zurich Capital Trust
8.376% 06/01/37 40,000 43,378(b)
TOTAL CORPORATE NOTES
(cost $9,250,869) 9,425,059
MORTGAGE BACKED -- 10.2%
Agency Mortgage Backed
Federal Home Loan Mortgage Corp.
7.50% 06/01/10 316,924 326,707
9.00% 04/01/16 - 07/01/16 124,748 133,133
9.00% 02/01/17 172,488 184,062
9.00% 06/01/21 70,474 75,550(h)
9.00% 12/01/24 320,269 341,086
1,060,538
Federal National Mortgage Assoc.
6.50% 01/01/04 11,508 11,546
8.50% 04/01/17 22,146 23,374(h)
6.247% 03/25/21 81,000 80,544
9.00% 10/01/24 91,328 96,837
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
32
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
6.103% 03/01/33 $ 35,724 $ 35,948(e)
6.154% 11/01/35 558,116 561,604(e)
6.139% 05/01/36 319,557 321,554(e)
6.00% TBA 180,000 177,075(c)
7.00% TBA 1,815,000 1,833,150(c)
3,141,632
Government National
Mortgage Assoc.
8.50% 10/15/17 1,578,310 1,689,265
7.50% 01/15/23 195,340 200,710
6.50% 02/15/24 - 03/15/24 1,020,597 1,013,575
7.50% TBA 610,000 627,347(c)
3,530,897
Federal National Mortgage
Assoc. REMIC
8.00% 10/25/20 43,081 45,154
Total Agency Mortgage Backed 7,778,221
Agency Collateralized Mortgage Obligations
Collateralized Mortgage Obligation Trust
5.47% 09/01/15 28,108 25,060(d,f)
5.76% 11/01/18 36,139 26,743(d,f)
51,803
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 27,002 27,854
4.93% 04/01/27 480,713 354,977(d,f)
382,831
Federal National Mortgage Assoc
8.50% 04/01/17 58,187 15,019(g)
8.50% 01/01/18 6,900 1,781(g)
7.00% 06/18/20 164,451 165,273
9.00% 05/25/22 71,791 18,592(g)
8.50% 07/25/22 93,954 24,859(g)
7.50% 05/01/23 358,447 88,940(g)
4.65% 07/01/26 12,792 10,186(d,f)
4.68% 04/01/27 62,811 50,189(d,f)
374,839
Federal National
Mortgage Assoc. REMIC
7.623% 12/17/04 94,987 99,292(d)
6.856% 06/17/11 61,000 62,372(d)
6.909% 06/25/16 124,000 127,371
7.75% 07/25/20 78,255 73,646(d,f)
5.58% 12/25/22 70,714 57,433(d,f)
8.85% 09/25/23 195,000 147,642(d,f)
567,756
Federal National
Mortgage Assoc. STRIP
6.00% 08/25/23 291,399 87,875(g)
6.32% 12/15/24 291,399 194,873(d,f)
282,748
Total Agency Collateralized
Mortgage Obligations 1,659,977
Non-Agency Mortgage Backed
Amresco Commercial
Mortgage Funding Corp.
6.73% 06/17/29 87,997 88,699
Asset Securitization Corp.
6.50% 02/14/02 75,847 76,748
BHN Mortgage Trust
7.54% 04/30/07 66,704 64,911(b)
7.916% 02/15/12 34,917 34,590(b)
Community Program Loan Trust
4.50% 10/01/18 159,017 144,482
CS First Boston Mortgage
Securities Corp.
6.425% 08/20/30 15,999 15,949
DLJ Mortgage Acceptance Corp.
6.55% 11/15/06 121,089 122,564(b)
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
6.65% 12/17/27 $ 29,241 $ 29,534(b)
GS Mortgage Securities Corp.
6.46% 07/13/30 117,000 119,687
Merrill Lynch Mortgage
Investors Inc.
6.36% 11/15/26 291,000 291,546
Morgan Stanley Capital Inc.
6.52% 01/15/08 204,000 206,325(b)
6.476% 10/15/10 120,187 121,164(b)
6.86% 07/15/29 132,439 135,636(b)
6.70% 10/03/30 48,444 49,114(b)
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 128,420 130,386
7.00% 10/01/27 95,538 95,919
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 60,581
Structured Asset Securities Corp.
5.65% 09/25/99 45,069 45,055(b)
6.256% 08/25/00 571,840 571,661(b)
8.495% 04/25/27 115,000 119,384(b)
6.79% 11/01/27 73,325 75,113(b)
1.86% 02/25/28 847,818 46,100(b)
Vornado Finance Corp.
6.36% 12/01/00 355,000 356,331(b)
Total Non-Agency Mortgage Backed 3,001,479
Non-Agency Collateralized Mortgage Obligations
BlackRock Capital Financial
7.22% 11/25/28 255,000 258,985
7.25% 11/25/28 153,293 148,838
5.476% 11/25/38 101,827 102,622
Residential Assets Securitization Trust
7.75% 04/25/27 - 06/25/27 251,370 259,089
7.50% 08/25/27 140,200 145,611
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS 915,145
TOTAL MORTGAGE BACKED
(Cost $13,178,937) 13,354,822
TOTAL BONDS AND NOTES
(Cost $45,537,110) 46,183,371
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
- --------------------------------------------------------------------------------
DOMESTIC PREFERRED -- 0.4%
Microsoft Corp. (Series A), $2.20 3,081 284,993
New Plan Realty Trust, 7.80% 1,915 95,725
News Corp. Exchange Trust, 5.0% 680 46,953(a,b)
Simon DeBartolo Group Inc.
(Series C), 7.89% 1,455 71,077
498,748
INTERNATIONAL PREFERRED -- 0.0%
Banesto Holdings Ltd.(Series A),
10.50% 2,400 78,720(a,b)
TOTAL PREFERRED STOCK
(COST $570,683) 577,468
TOTAL INVESTMENTS IN SECURITIES
(COST $100,008,215) 126,612,526
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
33
<PAGE>
GEStrategic Investment Fund March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.6%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $5,980,749) 5,980,749 $ 5,980,749
NUMBER
EXPIRATION DATE/ OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/105.69 380,000 (920)
(Premium $(1,069))
- --------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/99.69 380,000 (1,158)
(Premium $(1,187))
OTHER ASSETS AND LIABILITIES,
NET (1.2%) (1,556,181)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $131,035,016
================================================================================
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Strategic Investment Fund had the following short futures contract open
at March 31, 1998:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 June 1998 4 $1,110,500 $ 500
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
Icons represent the top five combined industry weightings for
the domestic and foreign equities in the GE Strategic Investment Fund as of
March 31, 1998.
34
<PAGE>
GE Tax-Exempt Fund
Q&A
Barbara A. Brinkley, a Manager of Brown Brothers Harriman and Co. and a member
of its U.S. Bond Policy Group and its Fixed Income Credit Committee, is the
Portfolio Manager of the GE Tax-Exempt Fund. Ms. Brinkley has been employed by
Brown Brothers since 1976. Total assets under Brown Brothers management exceed
$30 billion. Throughout her career with Brown Brothers, and during her previous
four years with American Re-Insurance Company, Ms. Brinkley has specialized as a
municipal bond credit analyst, trader and portfolio manager. Ms. Brinkley is a
member and former chairman of the Municipal Analysts Group of New York, and is a
member of the Fixed Income Analysts Society, Inc. Ms. Brinkley holds a B.A.
degree from Smith College.
[GRAPHIC OMITTED]
Photo of Barbara A. Brinkley
Q. HOW DID THE GE TAX-EXEMPT FUND'S INDUSTRY BENCHMARK AND LIPPER PEERS
PERFORM FOR THE SIXTH-MONTH PERIOD ENDED MARCH 31, 1998?
A. The Lehman 10-Year General Obligation Municipal Bond Index returned 3.67%
for the six-month period ended March 31, 1998. Our Lipper peer group of 350
Intermediate Municipal Bond funds posted an average return of 2.92% for the
same period. To see how your class of shares in the Tax-Exempt Fund
performed compared to the Lipper benchmarks, please refer to the following
page.
Q. WHAT DROVE THE FUND'S PERFORMANCE?
A. The fund invests in higher-quality bonds, which did not perform as well as
their lower-quality counterparts during the period. Lower-quality bonds
recorded good investment results because investors turned to these
securities as a way to maintain the yield of their portfolios as interest
rates fell. The fund's conservative orientation limits our exposure to
these bonds.
Another factor that affected the fund's relative performance was the sharp
decline in interest rates. When interest rates fall, portfolios that take
the most price risk typically perform the best. Your fund is conservatively
managed. We want to generate a steady flow of tax-exempt income without
assuming as much price risk as other funds. While that may cause the fund
to underperform when the bond market rallies, it will benefit the fund when
bond yields rise. It's a strategy we believe will serve investors well over
time.
Q. HOW DID YOU POSITION THE FUND IN LIGHT OF SPECIFIC EVENTS THAT TOOK PLACE
DURING THE PERIOD?
A. In September, we shortened the fund's average duration compared to the
benchmark, anticipating the strength of the economy would result in a rate
hike by the Federal Reserve. However, when the Asian financial crisis hit
in mid-November and the threat of a rate hike dissolved, we lengthened the
fund's duration.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. In our view, the long-term outlook for the tax-exempt bond market is
favorable. Inflation is benign, and we expect the economy to slow as the
Asian financial crisis reduces our exports later this year. Short-term, we
do see cautionary signs, including a substantial increase in the supply of
municipal bonds, which we expect will raise interest rates somewhat. As we
see it, the higher rates will be an opportunity to lock in attractive
tax-exempt yields for the longer term.
35
<PAGE>
GE Tax-Exempt Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Education 10.8%
Government Obligation 7.6%
Hospital 20.1%
Housing 13.7%
Sales Tax 4.2%
Utility 23.1%
Water & Sewer 11.2%
Cash & Other 9.3%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr. Inception Commencement
- --------------------------------------------------------------------------------
Class A 2.43% 7.34% 6.80% 5.38% 9/8/93
- --------------------------------------------------------------------------------
Class A* -1.92% 2.78% 5.27% 4.38% 9/8/93
- --------------------------------------------------------------------------------
Class B 2.18% 6.86% 6.63% 5.14% 9/8/93
- --------------------------------------------------------------------------------
Class B* -0.82% 3.86% 6.04% 5.14% 9/8/93
- --------------------------------------------------------------------------------
Class C 2.63% N/A N/A 2.76% 9/26/97
- --------------------------------------------------------------------------------
Class D 2.77% N/A N/A 2.91% 9/26/97
- --------------------------------------------------------------------------------
LB 10 Yr. GO
Muni Bond 3.67% 10.49% 8.17%
- --------------------------------------------------------------------------------
* 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 tax-exempt debt obligations.
- --------------------------------------------------------------------------------
Quality Ratings
At March 31, 1998
- --------------------------------------------------------------------------------
PERCENT OF
MOODY'S/S&P RATINGS+ NET ASSETS
- --------------------------------------------------------------------------------
Aaa/AAA or better 89.32%
- --------------------------------------------------------------------------------
A/A to Aa/AA 10.68%
+ Moody's Investors Service, Inc. and Standard and Poor's are nationally
recognized statistical rating organizations.
* Lipper Performance Comparison
Intermediate Municipal Peer Group
Based on average annual total returns for the periods ended March 31, 1998
SIX ONE THREE
MONTHS YEAR YEAR
------ ---- ----
Number of Funds
in peer group: 350 336 281
Peer group average
annual total return: 2.92% 8.11% 6.33%
Lipper categories
in peer group: Intermediate Municipal Debt, including single state bonds
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
36
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.5%
- --------------------------------------------------------------------------------
ARKANSAS -- 3.9%
Arkansas Housing Development
Agency Rev. - Housing
8.375% 07/01/10 $ 270,000 $ 336,633(i)
8.375% 07/01/11 290,000 390,642(i)
Pulaski County Arkansas Hospital
Rev. - Health
9.25% 03/01/10 155,000 200,427(i)
927,702
CALIFORNIA -- 5.4%
Sacramento California Utility
Rev. - Electric Utility
9.00% 04/01/13 670,000 917,364(i)
San Diego California Hospital
Rev. - Health
8.875% 02/01/11 280,000 359,615(i)
1,276,979
COLORADO -- 3.9%
Colorado Springs Colorado Utility
Rev. - Electric Utility
8.50% 11/15/11 100,000 130,177(i)
Denver Colorado City & County,
Housing Finance Authority -
Housing
7.00% 08/01/10 500,000 577,035(i)
Loveland Cnty Rev. - Water & Sewer
8.875% 11/01/05 165,000 205,097(i)
912,309
[GRAPHIC OMITTED]CONNECTICUT -- 7.8%
Connecticut State Health &
Educational Fac.
Auth. Rev.- Health
5.50% 07/01/12 500,000 525,140(k)
7.00% 07/01/12 765,000 886,428(i)
Connecticut State Housing
Finance Auth.
Rev. - Housing
6.05% 05/15/14 410,000 433,202
1,844,770
FLORIDA -- 2.5%
Florida State Broward County G.O.
10.00% 07/01/14 235,000 360,102
Gainesville Florida
Utilities Systems
Rev. - ElectricUtility
8.125% 10/01/14 175,000 230,157(i)
590,259
GEORGIA -- 2.0%
Clarke County Georgia
Hospital Auth.
Rev. - Health
9.875% 01/01/06 80,000 103,927(i,k)
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Columbus Georgia Medical Center
Hospital Auth. Rev. - Health
7.75% 07/01/10 $ 305,000 $ 371,685(i)
475,612
IDAHO -- 3.5%
Idaho Falls Idaho Electric
Rev. - Electric Utility
10.375% 04/01/07 570,000 814,912(j)
ILLINOIS -- 0.2%
Chicago Illinois Motor Fuel
Tax Rev. - Sales Tax
6.50% 01/01/01 20,000 21,275(j,k)
Chicago Illinois
Wastewater Treatment
Rev. - Water & Sewer
6.30% 01/01/03 20,000 22,141(j,k)
43,416
INDIANA -- 1.3%
Indiana University Rev. -
Education
6.00% 11/15/14 290,000 311,469
IOWA -- 5.2%
Muscatine Iowa Electric Rev. -
Electric Utility
9.70% 01/01/13 865,000 1,228,386(i)
LOUISIANA -- 5.8%
Jefferson Parish Louisiana
Hospital Rev. - Health
7.25% 01/01/09 575,000 663,176(i)
Saint Charles Parish
Louisiana Pollution
Control Rev. - VRDN
3.70% 10/01/22 700,000 700,000
1,363,176
MAINE -- 0.0%
Maine Municipal Bond Bank G.O.
7.10% 11/01/99 10,000 10,701(j)
MASSACHUSETTS -- 5.5%
Massachusetts State G.O.
6.75% 08/01/09 90,000 98,660(k)
Massachusetts State Port
Auth. Rev. - Trans.
13.00% 07/01/13 535,000 916,112(i)
Massachusetts State Water Res. Auth.
Rev. - Water & Sewer
6.00% 11/01/06 250,000 270,200
1,284,972
[GRAPHIC OMITTED]MICHIGAN -- 6.0%
Michigan State Hospital Finance Auth.
Rev. - Health
9.00% 05/01/08 595,000 775,410(i)
7.125% 05/01/09 545,000 627,546(i)
1,402,956
MINNESOTA -- 1.4%
Rochester Minnesota Health Care
Facilities Rev. - Health
6.25% 11/15/14 300,000 328,005
MISSISSIPPI -- 2.8%
Mississippi State G.O.
6.20% 02/01/08 580,000 655,986(i)
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
37
<PAGE>
GE Tax-Exempt Fund March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MISSOURI -- 0.1%
Lees Summit Missouri Water & Sewer
Rev. - Water & Sewer
10.00% 07/01/00 $ 20,000 $ 22,576(j,k)
NEW JERSEY -- 2.7%
Atlantic City New Jersey
Improvement Auth.
Rev. - Trans.
7.40% 03/01/12 270,000 331,266(i,k)
New Jersey State Tpke.
Auth. Rev. - Trans.
6.50% 01/01/16 250,000 294,902(k)
626,168
NEW MEXICO -- 3.0%
Farmington New Mexico Power
Rev. - Electric Utility
9.875% 07/01/05 400,000 535,028(j)
Farmington New Mexico
Utility Systems
Rev. - Electric Utility
9.875% 01/01/08 125,000 165,077(i,k)
700,105
[GRAPHIC OMITTED]NEW YORK -- 8.5%
Erie County New York Water Auth.
Rev. - Water & Sewer
6.00% 12/01/08 400,000 440,380(i,k)
New York New York G.O.
6.00% 08/01/06 300,000 308,532(i,k)
New York State Dormitory
Auth. Rev. - Education
7.50% 05/15/11 165,000 202,892
7.375% 07/01/16 640,000 807,763(i)
New York State
Environmental Facilities
Rev. - Water & Sewer
6.80% 11/15/10 200,000 227,696
1,987,263
[GRAPHIC OMITTED]
NORTH CAROLINA -- 5.9%
North Carolina Municipal Power
Rev. - Electric Utility
10.50% 01/01/10 990,000 1,379,209(i)
OHIO -- 4.2%
Columbus Ohio G.O.
6.00% 07/01/02 50,000 54,458(j)
Ohio State Higher Educational
Rev. - Education
6.00% 05/15/09 550,000 610,582(k)
Ohio State Water Development Auth.
Rev. - Water & Sewer
7.00% 12/01/09 275,000 323,507(i,k)
988,547
[GRAPHIC OMITTED]
PENNSYLVANIA -- 10.0%
Allegheny County
Pennsylvania Hospital
Development Rev. - Health
7.375% 07/01/12 315,000 381,619(i)
Delaware River Port
Authority Pennsylvania &
New Jersey - Trans.
6.50% 01/15/11 90,000 101,067(i)
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Pennsylvania Intergovernmental
Co-op. - Special Tax
5.60% 06/15/15 $ 500,000 $ 514,300(k)
Philadelphia Pennsylvania
Hospital Rev. - Health
9.875% 07/01/05 505,000 673,564(j)
Pittsburgh Pennsylvania
Water & Sewer
Rev. - Water & Sewer
7.25% 09/01/14 555,000 680,147(i)
2,350,697
PUERTO RICO -- 2.8%
Puerto Rico Commonwealth Aquaduct &
Sewer Rev. - Water & Sewer
10.25% 07/01/09 470,000 651,834(i)
SOUTH CAROLINA -- 2.2%
Spartanburg South Carolina Waterworks
Rev. - Water & Sewer
6.00% 06/01/05 475,000 509,452
TEXAS -- 0.2%
Austin Texas Utility Systems
Rev. - Electric Utility
7.25% 11/15/03 50,000 52,087
UTAH -- 0.0%
Intermountain Power Agency Utah
Rev. - Electric Utility
7.20% 07/01/99 10,000 10,617(j)
VIRGINIA -- 0.6%
Richmond Virginia
Metropolitan Expressway
Auth. Rev. - Trans.
7.00% 10/15/13 115,000 132,595(i,k)
WASHINGTON -- 0.1%
Snohomish County Washington
Public Utility
Rev. - Electric Utility
6.375% 01/01/05 20,000 22,277(i)
WEST VIRGINIA -- 1.0%
Wood County West Virginia
Building Commission -
St. Joseph Hospital - Health
6.625% 01/01/06 215,000 232,641(i,k)
TOTAL INVESTMENTS IN SECURITIES
(Cost $22,019,746) 23,137,678
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $61,019) 61,019 61,019
OTHER ASSETS AND LIABILITIES,
NET 1.2% 279,235
- --------------------------------------------------------------------------------
NET ASSETS - 100% $23,477,932
================================================================================
Icons represent the top five state weightings in the GE Tax-Exempt Fund as of
March 31, 1998.
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
38
<PAGE>
GE Fixed Income Funds
Q&A
Bob MacDougall leads the fixed income team at GE Investments. Assets under
management exceed $23 billion. His responsibilities include leading a team of
managers for the GE Fixed Income, GE Short-Term Government, GE Government
Securities and GE Money Market Funds. Bob joined GE Investments in 1986 as a
Mutual Fund Portfolio Manager and was appointed to head the taxable Fixed Income
team in 1992, and the tax-exempt Fixed Income team 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.
[GRAPHIC OMITTED]
Photo of Bob MacDougall
Q. DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS OVER THE SIX MONTHS
ENDED MARCH 31, 1998.
A. Volatility in Asian markets dominated the financial news during the fourth
quarter of 1997. As investors assessed the impact of the Asian crisis on
the U.S. economy and inflation, they were attracted to U.S. Treasury bonds
for their good value and their high quality. This rallied the market,
bringing the 30-year Treasury yield to a low of 5.7% in early January.
Since that time, however, the market has traded in a narrow range. The
anticipated slowdown in the U.S. economy has yet to materialize. While
inflation remains benign, tight labor markets continue to concern both the
bond market and the Federal Reserve.
GE Fixed Income Fund
Q. HOW DID THE GE FIXED INCOME FUND'S MARKET BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. The Lehman Brothers Aggregate Bond Index returned 4.53% while the average
return for the 133 Intermediate U.S. Government Bond funds tracked by
Lipper Analytical Services was 3.94%. To see how your class of shares in
the GE Fixed Income Fund performed compared to these benchmarks, please
refer to page 41.
Q. WHAT WERE THE DRIVERS OF FUND PERFORMANCE?
A. Two offsetting factors resulted in the fund performing in line with the
market and peer averages. On the plus side, our outlook for declining
interest rates prompted us to reduce our exposure to mortgage-backed
securities in favor of Treasuries. The performance of mortgages lagged
because of prepayments as homeowners refinanced. On the other hand, our
corporate sector underperformed due to an overweight in bonds of foreign
issuers, particularly Asian entities. Our performance during this time
period was a good example of how diversification of risk across different
market segments can reduce overall fund volatility.
39
<PAGE>
GE Fixed Income Funds (continued)
GE Government Securities Fund
Q. HOW DID THE GE GOVERNMENT SECURITIES FUND'S MARKET BENCHMARK AND LIPPER
PEER GROUP PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. The Lehman Brothers Government Bond Index returned 4.88% while the Lipper
peer group of similar funds averaged 3.94%. To see how your class of shares
in the GE Government Securities Fund performed compared to these
benchmarks, please refer to page 46.
Q. WHAT DROVE THIS FUND'S PERFORMANCE?
A. In addition to U.S. Treasury securities, this fund holds mortgage-backed
securities issued by federal government agencies because of their high
quality and good yield. During the market rally in the fourth quarter of
1997, these securities underperformed Treasuries due to their callability
as homeowners refinanced their mortgages at lower rates.
GE Short-Term Government Fund
Q. HOW DID THE GE SHORT TERM GOVERNMENT FUND'S MARKET BENCHMARK AND LIPPER
PEER GROUP PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. The Lehman Brothers 1 - 3 year Government Bond Index returned 3.14%. Our
Lipper peer group of 200 Short-Term U.S. Government mutual funds averaged a
return of 2.93%. To see how your class of shares in the GE Short-Term
Government Fund performed compared to these benchmarks, please refer to
page 49.
Q. WHAT FACTORS INFLUENCED THIS FUND'S PERFORMANCE?
A. The securities we held in this portfolio performed in line with the market
index before deduction of fund expenses. While the fund diversified its
exposure across various segments of the market, these segments performed
consistently during this period.
GE Money Market Fund
Q. HOW DID THE GE MONEY MARKET FUND'S MARKET BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1998?
A. The GE Money Market Fund had a total return of 2.59% for the six- months
ended March 31, 1998. For the same period 90-day Treasury Bills returned
2.57% and the average return of the 319 Money Market funds reported by
Lipper was 2.45%.
Q. TO WHAT DO YOU ATTRIBUTE THIS PERFORMANCE?
A. Although long term interest rates fell almost 0.5% during this period,
short term money market rates were stable. Federal Reserve policy did not
change and that led to consistency of returns. As always, our goal is to
maintain a high quality, liquid portfolio.
OVERALL
Q. WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
A. The growth of U.S. economy has been surprisingly strong. As a result the
unemployment rate has fallen to levels not seen since the 1970's. While
this has obvious implications for labor costs, we believe that global
competition and productivity improvements will limit price increases and
keep inflation under control. If so, bonds at recent yield levels should
have good value.
40
<PAGE>
GE Fixed Income Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Cash & Other 6.3%
U.S. Treasuries/Agencies 43.2%
Corporate Notes 20.3%
Mortgage-Backed 30.2%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since Commence-
6 Mo. 1 Yr. 3 Yr 5 Yr Inception ment
- --------------------------------------------------------------------------------
Class A 3.89% 10.87% 8.20% N/A 6.10% 1/1/94
- --------------------------------------------------------------------------------
Class A* -0.49% 6.12% 6.64% N/A 5.01% 1/1/94
- --------------------------------------------------------------------------------
Class B 3.72% 10.31% 7.72% N/A 5.59% 12/22/93
- --------------------------------------------------------------------------------
Class B* 0.72% 7.31% 7.14% N/A 5.59% 12/22/93
- --------------------------------------------------------------------------------
Class C 4.02% 11.04% 8.46% 6.25% 6.29% 2/22/93
- --------------------------------------------------------------------------------
Class D 4.23% 11.42% 8.75% N/A 6.57% 11/29/93
- --------------------------------------------------------------------------------
LB Agg. 4.53% 12.00% 9.18% 6.94%
- --------------------------------------------------------------------------------
* 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 including CMO's and ARM's.
- --------------------------------------------------------------------------------
Quality Ratings
At March 31, 1998
- --------------------------------------------------------------------------------
PERCENT OF
MOODY'S/S&P RATINGS+ NET ASSETS
- --------------------------------------------------------------------------------
Aaa/AAA or better 79.52%
- --------------------------------------------------------------------------------
A/A to Aa/AA 8.49%
- --------------------------------------------------------------------------------
Below A/A 11.99%
- --------------------------------------------------------------------------------
+ Moody's Investors Service, Inc. and Standard and Poor's are nationally
recognized statistical rating organizations.
* Lipper Performance Comparison
Intermediate U.S. Government Bond Peer Group Based on average annual total
returns for the periods ended March 31, 1998
SIX ONE THREE FIVE
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds
in peer group: 133 130 104 57
Peer group average
annual total
return: 3.94% 10.30% 7.67% 5.60%
Lipper categories
in peer group: Intermediate U.S. Government,
Intermediate U.S. Treasury
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
41
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 95.1%
- --------------------------------------------------------------------------------
FEDERAL AGENCIES -- 4.4%
Federal Home Loan Bank
6.15% 10/23/00 $ 175,000 $ 175,219
6.172% 11/24/00 295,000 295,461
470,680
Federal Home Loan Mortgage Corp.
6.22% 03/18/08 330,000 328,505
Federal National Mortgage Assoc.
5.96% 07/23/99 635,000 636,689
5.82% 08/25/99 490,000 490,534(a)
6.41% 07/08/02 370,000 377,688(a)
6.99% 07/09/07 365,000 374,866
6.27% 02/05/08 615,000 609,811
2,489,588
Small Business Administration
6.55% 10/01/17 - 12/01/17 233,000 235,513
6.125% 01/10/18 550,000 542,438
777,951
TOTAL FEDERAL AGENCIES
(COST $4,054,283) 4,066,724
U.S. TREASURIES -- 38.8%
U.S. Treasury Bonds
11.875% 11/15/03 273,000 352,511
13.75% 08/15/04 1,286,000 1,829,734
12.50% 08/15/14 1,499,000 2,307,755
10.625% 08/15/15 2,479,000 3,717,732
6.125% 11/15/27 4,245,000 4,353,120
12,560,852
U.S. Treasury Notes
6.00% 06/30/99 534,000 536,670
5.875% 07/31/99 - 08/31/99 5,533,000 5,552,382
7.75% 12/31/99 1,910,000 1,977,442
5.375% 01/31/00 2,375,000 2,366,094
6.25% 04/30/01 887,000 901,964(h)
6.625% 07/31/01 1,773,000 1,824,257
6.625% 03/31/02 1,786,000 1,845,438
5.75% 11/30/02 350,000 351,039
5.625% 12/31/02 1,434,000 1,431,534
5.50% 02/28/03 - 03/31/03 3,664,000 3,642,970
6.625% 05/15/07 544,000 577,489
5.50% 02/15/08 299,000 295,355
21,302,634
U.S. Treasury STRIP
6.02% 08/15/11 2,530,000 1,144,395(d)
6.02% 02/15/12 1,650,000 724,053(d)
1,868,448
TOTAL U.S. TREASURIES
(COST $35,380,139) 35,731,934
ASSET BACKED -- 1.4%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 38,138 37,668
California Infrastructure
6.42% 12/26/09 69,000 70,219
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Carco Auto Loan Master Trust
6.689% 08/15/04 $ 260,000 $ 261,706
Fleetwood Credit Grantor Trust
6.40% 05/15/13 120,774 121,000
IMC Home Equity Loan Trust
7.23% 05/20/27 132,000 135,465
Iroquois Trust
6.68% 11/10/03 209,000 209,849(b)
6.752% 06/25/07 248,000 249,502(b)
Mid State Trust
7.54% 07/01/25 60,513 63,605
Tiers Trust
6.688% 11/17/03 167,000 168,443
TOTAL ASSET BACKED
(COST $1,303,640) 1,317,457
CORPORATE NOTES -- 20.3%
Abbey National PLC
7.35% 10/15/06 145,000 152,063
AFC Capital Trust
8.207% 02/03/27 165,000 184,190
Ameritech Capital Funding Corp.
6.55% 01/15/28 115,000 112,910
Applied Materials Inc.
7.125% 10/15/17 100,000 100,875
Arizona Public Service Co.
6.25% 01/15/05 120,000 117,262
Arvin Industries Inc,
6.75% 03/15/08 100,000 98,774
Atlantic City Electric Co.
6.19% 01/17/06 305,000 302,163
Banco Hipotecario Nacional
8.00% 06/04/99 250,000 249,375(b)
Bancomer S.A.
9.00% 06/01/00 125,000 127,188(b)
Bank Austria AG
7.25% 02/15/17 250,000 262,660
Bank of Scotland
7.00% 11/29/49 250,000 252,187(b)
Bell Telephone Co. - Canada
9.50% 10/15/10 100,000 125,308
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 75,000 93,086
Boston University
7.625% 07/15/97 55,000 61,738
Brascan Ltd.
7.375% 10/01/02 120,000 124,135
BT Preferred Capital Trust
7.875% 02/25/27 240,000 245,042
Circus Circus Enterprises Inc.
6.70% 11/15/03 150,000 149,883
Cleveland Electric Illuminating Co.
7.19% 07/01/00 60,000 60,905
Columbia University
6.83% 12/15/20 120,000 125,183
Conseco Inc.
8.70% 11/15/26 160,000 177,928
Continental Cablevision Inc.
8.50% 09/15/01 125,000 132,878
8.30% 05/15/06 210,000 230,695
Corporacion Andina De Fomento
6.75% 03/15/05 190,000 188,832
CSX Corp.
7.05% 05/01/02 55,000 56,249
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
42
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
DDR Pass-Through Asset Trust
7.125% 03/15/02 $ 415,000 $ 416,033(b)
Delta Air Lines Inc.
7.79% 12/01/98 125,000 126,534
Deutsche Bank Financial Inc.
7.50% 04/25/09 405,000 438,368
Digital Equipment Corp.
7.125% 10/15/02 70,000 71,795
Dow Chemical Co.
8.55% 10/15/09 110,000 126,951
Empresa Nacional de Electricid
8.125% 02/01/97 100,000 103,198
Energy Group Overseas
7.375% 10/15/17 180,000 186,043
Farmers Insurance Exchange
8.625% 05/01/24 340,000 390,864(b)
FBOP Capital Trust
10.20% 02/06/27 40,000 45,506(b)
Federated Department Stores Inc.
10.00% 02/15/01 130,000 142,269
Felcor Suites Ltd.
7.375% 10/01/04 100,000 99,500(b)
First Security Capital
8.41% 12/15/26 90,000 97,920
Ford Motor Credit Corp.
7.32% 05/23/02 328,000 332,305
Fujian International
Trust & Investment Corp.
7.375% 08/25/07 65,000 59,688(b)
Goldman Sachs Group L.P.
6.20% 12/15/00 195,000 195,000(b)
Gruma SA de C.V.
7.625% 10/15/07 100,000 98,750
Guangdong International
Trust & Investment Corp.
8.75% 10/24/16 65,000 59,531(b)
Heritage Media Corp.
8.75% 02/15/01 85,000 91,906
Hydro-Quebec
8.05% 07/07/24 60,000 69,674
8.25% 04/15/26 360,000 413,619
Ikon Capital Inc.
6.27% 07/19/99 300,000 301,293
Israel Electric Corp. Ltd.
8.10% 12/15/96 240,000 245,700(b)
Korea Development Bank
7.125% 09/17/01 50,000 47,017
6.625% 11/21/03 135,000 118,469
Landeskreditbank Baden
7.875% 04/15/04 160,000 174,002
LCI International Inc.
7.25% 06/15/07 226,000 226,475
Lehman Brothers Holdings Inc.
6.90% 03/30/01 155,000 157,615
Liberty Mutual Insurance Co.
8.20% 05/04/07 125,000 139,090(b)
Loewen Group International Inc.
7.50% 04/15/01 285,000 290,714
Loewen Pass Through Asset Trust
6.70% 10/01/99 510,000 508,286(b)
Long Island Lighting
7.30% 07/15/99 130,000 131,556
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Meditrust
7.114% 08/15/04 $ 130,000 $ 128,835
Merita Bank Ltd.
7.15% 12/29/49 145,000 146,277(b)
MIC Financing Trust
8.375% 02/01/27 160,000 167,414(b)
Morgan Stanley Finance PLC
8.03% 02/28/17 90,000 95,738
Nabisco Inc.
6.125% 02/01/33 140,000 137,483
National Westminster Bank PLC
7.75% 04/29/49 265,000 284,056
New England Mutual Life
Insurance Co.
7.875% 02/15/24 250,000 272,047(b)
New Jersey Economic
Development Authority
7.425% 02/15/29 115,000 126,771
New York State Dormitory
Authority Revenue
6.32% 04/01/99 200,000 200,588
News America Holdings Inc.
8.15% 10/17/36 100,000 109,200
Niagara Mohawk Power Corp.
9.50% 06/01/00 145,000 152,847
Norfolk Southern Corp.
7.90% 05/15/97 252,000 284,669
North Atlantic Energy Corp.
9.05% 06/01/02 155,000 159,142
NRG Energy Inc.
7.50% 06/15/07 140,000 145,572
NWCG Holding Corp.
6.66% 06/15/99 215,000 199,602(d)
Oryx Energy Co.
10.00% 06/15/99 150,000 155,670
9.50% 11/01/99 150,000 156,514
Paramount Communications Inc.
7.50% 01/15/02 125,000 128,069
Petroleos Mexicanos
7.75% 10/29/99 100,000 100,375(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 120,000 123,382
7.20% 02/01/07 100,000 103,171
PSI Energy Inc.
6.25% 12/15/98 100,000 100,180
Reliance Industries Ltd.
10.50% 08/06/46 85,000 83,737(b)
Republic New York Corp.
7.20% 07/15/97 125,000 129,101
Republic of Argentina
9.50% 11/30/02 150,000 150,450
Republic of Columbia
7.25% 02/15/03 100,000 98,297
Republic of Panama
7.875% 02/13/02 100,000 100,250(b)
Riggs Capital Trust
8.625% 12/31/26 90,000 95,510(b)
RJR Nabisco Inc.
8.00% 07/15/01 300,000 308,103
7.625% 09/15/03 105,000 105,990
St. George Funding Co.
8.485% 12/31/49 415,000 420,710(b)
Stop & Shop Cos. Inc.
9.75% 02/01/02 80,000 89,800
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
43
<PAGE>
GE Fixed Income Fund March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Sun Life Canada Capital Trust
8.526% 05/29/49 $ 175,000 $ 191,555(b)
Suntrust Bank Inc.
6.00% 01/15/28 120,000 116,940
Talisman Energy Inc.
7.25% 10/15/27 100,000 100,842
Taubman Realty Group L.P.
8.00% 06/15/99 160,000 163,077
TCI Communications Inc.
8.65% 09/15/04 70,000 76,782
Tele-Communications Inc.
6.469% 12/20/00 130,000 131,040
9.25% 04/15/02 100,000 109,445
Tenet Healthcare Corp.
7.875% 01/15/03 105,000 106,575
8.00% 01/15/05 40,000 41,000
Time Warner Entertainment Co. L.P.
10.15% 05/01/12 75,000 96,596
Time Warner Inc.
4.90% 07/29/99 315,000 308,987(b)
6.10% 12/30/01 100,000 98,267(b)
Toledo Edison Co.
7.38% 03/31/00 250,000 252,707
Total Access Communication PLC
7.625% 11/04/01 155,000 111,600(b)
Transamerica Capital
7.625% 11/15/37 105,000 108,954(b)
Universal Outdoor Inc.
9.75% 10/15/06 80,000 91,000
US West Capital Funding Inc.
7.90% 02/01/27 90,000 100,795
USX Marathon Group
9.80% 07/01/01 120,000 132,030
8.125% 07/15/23 120,000 131,597
Viacom Inc.
7.75% 06/01/05 250,000 262,187
Washington Mutual Capital
8.375% 06/01/27 131,000 140,765
Waterford Funding Corp.
8.09% 01/02/17 400,000 415,724
Westdeutsche Landesbank
6.75% 06/15/05 200,000 205,516
Williams Cos. Inc.
6.125% 02/15/02 235,000 233,188
Yale University Notes
7.375% 04/15/96 100,000 112,387
Zurich Capital Trust
8.376% 06/01/37 100,000 108,445(b)
TOTAL CORPORATE NOTES
(Cost $18,311,474) 18,644,731
MORTGAGE BACKED -- 30.2%
Agency Mortgage Backed
Federal Home Loan Mortgage Corp.
7.50% 06/01/10 814,946 840,103
9.00% 12/01/16 405,614 432,863
6.247% 03/25/21 176,000 175,010
9.50% 04/01/21 34,360 37,377(h)
9.00% 12/01/24 400,336 426,358(a)
8.00% 08/01/25 - 10/01/25 714,613 739,953
4.93% 04/01/27 1,522,099 1,123,975(d,f)
3,775,639
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc.
5.60% 03/27/00 $ 1,080,000 $1,076,792
5.38% 01/16/01 895,000 885,486
6.50% 01/01/04 33,889 34,001
8.50% 04/01/17 88,584 93,497
7.00% 06/18/20 304,667 306,191
9.00% 10/01/24 167,641 177,752
7.50% 08/01/27 - 09/01/27 1,235,337 1,266,603
7.00% 10/01/27 1,295,262 1,311,858
6.154% 11/01/35 1,493,563 1,502,898(e)
6.139% 05/01/36 543,881 547,280(e)
6.00% TBA 2,140,000 2,105,225
7.00% TBA 2,228,000 2,250,280
11,557,863
Federal National Mortgage
Assoc. REMIC
7.623% 12/17/04 173,375 181,231(a)
6.856% 06/17/11 132,000 134,970(a)
6.909% 06/25/16 237,000 243,443(a)
559,644
Government National Mortgage Assoc.
7.50% 01/15/23 - 05/15/23 570,836 586,529
6.50% 02/15/24 - 04/15/24 1,187,682 1,179,510
7.50% TBA 1,810,000 1,861,472
3,627,511
Total Agency Mortgage Backed 19,520,657
Agency Collateralized Mortgage Obligations
Collateralized Mortgage Obligation Trust
5.47% 09/01/15 77,677 69,254(d,f)
5.76% 11/01/18 99,872 73,905(d,f)
143,159
Federal National Mortgage Assoc.
8.50% 03/01/17 53,745 13,873(g)
8.50% 03/01/17 106,859 27,583(g,h)
8.50% 01/01/18 19,067 4,922(g)
8.00% 10/25/20 86,162 90,308
9.00% 05/25/22 132,370 34,280(g)
8.50% 07/01/22 237,246 62,778(g)
7.50% 05/01/23 156,452 38,820(g)
6.00% 08/25/23 523,929 157,997(g)
6.32% 12/15/24 523,929 350,377(d,f)
4.65% 07/01/26 23,878 19,013(d,f)
4.68% 04/01/27 114,280 91,317(d,f)
891,268
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 63,004 64,993
Federal National
Mortgage Assoc. REMIC
7.75% 07/25/20 197,575 185,938(d,f)
5.58% 12/25/22 130,399 105,908(d,f)
8.85% 09/25/23 87,000 65,871(d,f)
357,717
Total Agency Collateralized
Mortgage Obligations 1,457,137
Non-Agency Mortgage Backed
Amresco Commercial
Mortgage Funding Corp.
6.73% 06/17/29 159,556 160,827
Asset Securitization Corp.
6.50% 02/14/41 123,252 124,716
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
44
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BHN Mortgage Trust
7.54% 04/30/07 $ 123,878 $ 120,549(b)
7.916% 02/15/12 69,834 69,179(b)
Community Program Loan Trust
4.50% 10/01/18 280,618 254,968
CS First Boston Mortgage
Securities Corp.
6.425% 08/20/30 23,999 23,924
DLJ Mortgage Acceptance Corp.
6.65% 12/17/27 64,331 64,974(b)
GS Mortgage Securities Corp.
6.46% 07/13/30 207,000 211,754(d)
Merrill Lynch Mortgage
Investors Inc.
6.36% 02/15/30 376,000 376,705
Morgan Stanley Capital Inc.
6.52% 01/15/08 400,000 404,560
6.476% 10/15/10 201,441 203,077(b)
6.86% 07/15/29 239,732 245,519(b)
6.70% 10/03/30 86,012 87,202
Salomon Brothers Mortgage
Securities Inc.
7.00% 10/01/27 397,081 401,245
Sawgrass Finance REMIC Trust
6.45% 01/20/06 100,000 100,969
Structured Asset Securities Corp.
5.65% 09/25/99 81,374 81,349(b)
6.256% 08/25/00 1,040,561 1,040,236(b)
8.495% 04/25/27 361,323 375,098
6.79% 11/01/27 129,806 132,970
1.86% 02/25/28 1,736,825 94,440(d)
Vornado Finance Corp.
6.36% 12/01/00 572,000 574,145(b)
Total Non-Agency Mortgage Backed 5,148,406
Non-Agency Collateralized
Mortgage Obligations
BlackRock Capital Financial
7.22% 11/25/28 456,000 463,125
7.25% 11/25/28 274,733 266,749
5.476% 11/25/38 182,520 183,945
Residential Assets
Securitization Trust
7.75% 04/25/27 690,490 713,652
Total Non-Agency Collateralized
Mortgage Obligations 1,627,471
TOTAL MORTGAGE BACKED
(Cost $27,508,195) 27,753,671
TOTAL BONDS AND NOTES
(Cost $86,557,731) 87,514,517
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 1.1%
- --------------------------------------------------------------------------------
Banesto Holdings Ltd., 10.5% 4,600 150,880(b)
New Plan Realty Trust, 7.80% 4,151 207,496
News Corp. Ltd., 5.0% 1,600 110,477(b)
Pinto Totta International
Finance Ltd., 7.777% 270 270,837(b)
<PAGE>
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Simon DeBartolo Group Inc.
(Series C), 7.89% 2,860 $ 139,711
Travelers Group Inc., 6.213% 2,300 123,050
TOTAL PREFERRED STOCK
(Cost $1,005,674) 1,002,451
TOTAL INVESTMENTS IN SECURITIES
(Cost $87,563,405) 88,516,968
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.9%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund 193,835 193,835
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
FEDERAL AGENCY
Federal Home Loan Mortgage Corp.
5.90% 04/01/98 $8,980,000 8,980,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,173,835) 9,173,835
NUMBER
EXPIRATION DATE/ OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/105.69 735,000 (1,780)
(Premium $(2,067))
- --------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/99.69 735,000 (2,240)
(Premium $(2,298))
OTHER ASSETS AND LIABILITIES,
NET (6.1%) (5,657,919)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $92,028,864
================================================================================
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
45
<PAGE>
GE Government Securities Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
U.S. Government 78.7%
Corporate Notes 16.2%
Cash & Other 5.1%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since Commence-
6 Mo. 1 Yr. 5 Yr. 10 Yr. Inception ment
- --------------------------------------------------------------------------------
Class A 4.05% 11.21% N/A N/A 3.68% 9/8/93
- --------------------------------------------------------------------------------
Class A* -0.37% 6.48% N/A N/A 2.69% 9/8/93
- --------------------------------------------------------------------------------
Class B 3.77% 10.46% 3.83% 6.81% N/A 4/22/87
- --------------------------------------------------------------------------------
Class B* 0.77% 7.46% 3.83% 6.81% N/A 4/22/87
- --------------------------------------------------------------------------------
Class C N/A N/A N/A N/A 2.70% 10/28/97
- --------------------------------------------------------------------------------
LB Gov't. 4.88% 12.14% 6.71% 8.70%
- --------------------------------------------------------------------------------
* With Load
Investment Profile
GE Government Securities Fund's investment objective is a high level of current
income consistent with safety of principal which the fund attempts to achieve by
investing primarily in obligations issued or guaranteed by the U.S. Government
or by its agencies or instrumentalities.
5 YEAR TREASURY NOTE YIELD HISTORY
04/01/97 -- 03/31/98
[GRAPHIC OMITTED]
HIGH 6.86%
LOW 5.21%
AVG. 6.01%
* Lipper Performance Comparison
Intermediate U.S. Government Peer Group
Based on average annual total returns for the periods ended 3/31/98
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds
in peer group: 133 130 57 16
Peer group average
annual total
return: 3.94% 10.30% 5.60% 7.62%
Lipper categories
in peer group: Intermediate U.S. Treasury, Intermediate U.S. Government
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
46
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE GOVERNMENT SECURITIES FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 98.8%
- --------------------------------------------------------------------------------
U.S. GOVERNMENTS -- 78.7%
Federal Home Loan Mortgage Corp.
7.50% 02/01/07 $ 111,776 $ 115,248
5.50% 12/01/08 39,566 38,416
7.50% 02/01/09 - 09/01/09 201,963 208,159
7.50% 06/01/10 - 12/01/10 6,913,838 7,124,416
7.50% 02/01/11 - 11/01/11 6,535,169 6,732,168
7.50% 01/01/12 - 07/01/12 5,849,322 6,020,181
9.00% 12/01/14 2,020,880 2,136,434
6.50% 08/01/25 - 12/01/25 8,158,705 8,089,846
6.50% 01/01/26 2,528,524 2,507,183
7.00% 12/01/26 22,731 22,980
7.00% 01/01/27 1,318,090 1,332,496
6.50% 02/01/27 877,689 868,912
7.50% 10/01/27 26,642,829 27,308,900(h)
62,505,339
Federal National Mortgage Assoc.
11.875% 05/19/00 34,000,000 38,111,960
12.00% 11/13/00 50,000,000 57,461,000(h)
10.45% 10/13/15 10,000,000 14,381,200
9.00% 05/01/21 2,255,771 2,408,394
7.00% 04/01/26 1,634,777 1,651,124
7.00% 01/01/27 - 12/01/27 17,566,272 17,766,856
7.00% 12/01/99 2,310,000 2,333,100
134,113,634
Federal National Mortgage Assoc. REMIC
3.50% 10/25/21 14,200,000 12,132,054
5.00% 01/25/23 3,171,578 3,002,216
15,134,270
Government National Mortgage Assoc.
9.00% 05/15/13 236,800 256,038
9.50% 05/15/16 249,433 271,176
8.00% 03/15/17 - 08/15/17 6,748,712 7,081,896
9.50% 06/15/17 - 12/15/17 1,973,026 2,145,297
8.50% 05/15/21 110,209 117,268
8.50% 10/15/22 17,721 18,756
8.50% 03/15/23 531,330 561,712
6.50% 05/15/23 - 12/15/23 4,939,023 4,908,154
6.50% 01/15/24 - 04/15/24 3,891,776 3,865,000
7.00% 08/15/25 - 10/15/25 13,501,142 13,640,338
7.00% 04/15/26 2,457,564 2,482,902
7.50% 04/15/27 - 05/15/27 5,686,399 5,830,322
41,178,859
Small Business Administration
8.15% 02/01/15 1,815,431 1,955,559
8.10% 03/01/15 8,759,251 9,451,779
7.60% 05/01/16 3,764,514 3,990,973
7.55% 06/01/16 7,924,517 8,385,129
7.70% 07/01/16 5,557,245 5,928,886
7.15% 03/01/17 4,799,827 4,993,320
34,705,646
U.S. Treasury Bonds
11.875% 11/15/03 12,500,000 16,140,625
6.125% 11/15/27 59,340,000 60,851,390(l)
76,992,015
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. Treasury Notes
6.25% 08/31/02 $ 2,000,000 $2,043,740
5.50% 02/28/03 4,000,000 3,976,240(l)
6,019,980
TOTAL U.S. GOVERNMENTS
(COST $368,762,796) 370,649,743
CORPORATE NOTES -- 16.2%
Abbey National PLC
7.35% 10/29/49 2,500,000 2,621,775
Bank Austria AG
7.25% 02/15/17 2,500,000 2,626,600
Continental Cablevision Inc.
8.30% 05/15/06 2,500,000 2,746,375
Financing Corp.
10.70% 10/06/17 28,165,000 42,207,787(h)
9.65% 11/02/18 2,020,000 2,801,801
Hydro-Quebec
8.25% 04/15/26 2,500,000 2,872,350
Korea Development Bank
7.125% 09/17/01 2,500,000 2,350,850
Merita Bank Ltd.
7.15% 12/29/49 2,500,000 2,522,025(b)
National Westminster Bank PLC
7.75% 04/29/49 2,500,000 2,679,775
Philip Morris Cos. Inc.
7.20% 02/01/07 2,500,000 2,579,275
Sun Life Canada Capital Trust
8.526% 05/29/49 2,500,000 2,736,500(b)
Tele-Communications Inc.
9.25% 04/15/02 2,500,000 2,736,125
Time Warner Inc.
4.90% 07/29/99 2,500,000 2,452,275(b)
Washington Mutual Capital
8.375% 06/01/27 2,500,000 2,686,350
TOTAL CORPORATE NOTES
(COST $68,590,098) 76,619,863
MORTGAGE BACKED -- 3.9%
Non-Agency Mortgage Backed
BHN Mortgage Trust
7.916% 02/15/12 872,920 864,737(b)
DLJ Mortgage Acceptance Corp.
6.99% 02/15/05 937,153 944,767(b)
Structured Asset Securities Corp.
6.256% 03/25/98 7,358,924 7,356,625(b)
Total Non-Agency Mortgage Backed 9,166,129
Non-Agency Collateralized
Mortgage Obligations
Norwest Asset Securities Corp.
7.25% 11/25/27 3,378,000 3,433,061
NYC Mortgage Loan Trust
6.75% 06/25/06 5,630,787 5,628,148(b)
Total Non-Agency Collateralized
Mortgage Obligations 9,061,209
TOTAL MORTGAGE BACKED
(COST $18,028,292) 18,227,338
TOTAL INVESTMENTS IN SECURITIES
(COST $455,381,186) 465,496,944
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
47
<PAGE>
GE Government Securities Fund March 31, 1998 (unaudited)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 10.0%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $46,955,015) 46,955,015 $46,955,015
NUMBER
EXPIRATION DATE/ OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/105.69 4,355,000 (10,547)
(Premium $(12,249))
PUT OPTIONS WRITTEN -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Bond Apr. 98/99.69 4,355,000 (13,269)
(Premium $(13,609))
OTHER ASSETS AND LIABILITIES,
NET (8.8%) (41,506,086)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $470,922,057
================================================================================
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
48
<PAGE>
GE Short-Term Government Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
U.S. Government 78.1%
Asset Backed 4.8%
Cash & Other 7.0%
Corporate Notes 10.1%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since
6 Mo. 1 Yr. 3 Yr Inception Commencement
- --------------------------------------------------------------------------------
Class A 2.76% 6.49% 6.10% 5.27% 3/2/94
- --------------------------------------------------------------------------------
Class A* 0.22% 3.84% 5.21% 4.61% 3/2/94
- --------------------------------------------------------------------------------
Class B 2.58% 6.12% 5.71% 4.88% 3/2/94
- --------------------------------------------------------------------------------
Class B* -0.42% 3.12% 5.11% 4.88% 3/2/94
- --------------------------------------------------------------------------------
Class C 2.80% 6.76% 6.34% 5.53% 3/2/94
- --------------------------------------------------------------------------------
Class D 2.93% 7.03% 6.60% 5.77% 3/2/94
- --------------------------------------------------------------------------------
LB 1-3 Yr. 3.14% 7.50% 6.85%
- --------------------------------------------------------------------------------
* With Load
Investment Profile
A mutual fund designed for investors who seek high current income and
preservation of capital by investing primarily in short-term U.S. Government
securities.
2 YEAR TREASURY NOTE YIELD HISTORY
04/01/97 -- 03/31/98
[GRAPHIC OMITTED]
HIGH 6.54%
LOW 5.16%
AVG. 5.83%
* Lipper Performance Comparison
Short-Term U.S. Bond Peer Group
Based on average annual total returns for the periods ended March 31, 1998
SIX ONE THREE
MONTHS YEAR YEAR
------ ---- ----
Number of Funds
in peer group: 200 193 150
Peer group average
annual total return: 2.93% 7.34% 6.49%
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 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
49
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE SHORT-TERM GOVERNMENT FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 99.6%
- --------------------------------------------------------------------------------
U.S. GOVERNMENTS -- 78.1%
Federal Home Loan Mortgage Corp.
5.90% 04/01/98 $1,740,000 $1,740,000
8.00% 08/01/03 238,136 243,168
5.929% 05/17/06 248,156 246,139
6.00% 12/01/08 79,288 78,912(h)
0.496% 10/17/16 1,800,000 84,375(g)
6.25% 09/15/18 150,000 150,375
2,542,969
Federal Home Loan Mortgage Corp. REMIC
543.497% 09/15/05 170 1,795(g)
1002.00% 07/15/06 326 6,133(g)
7,928
Federal National Mortgage Assoc.
5.96% 07/23/99 2,370,000 2,376,304
5.60% 03/27/00 2,500,000 2,492,575
5.38% 01/16/01 675,000 667,825
6.59% 03/25/02 489,116 492,938
6.88% 11/17/02 139,100 141,099
7.373% 08/17/03 221,528 226,720
6.521% 09/17/04 197,080 198,188
9.00% 08/01/10 279,257 295,759
7.00% 06/18/20 64,915 65,240
6,956,648
Federal National Mortgage Assoc. REMIC
6.85% 11/25/06 37,791 35,563(d,f)
7.95% 11/25/19 14,747 14,752
50,315
Government National Mortgage Assoc.
9.00% 08/15/09 777,088 828,110
9.50% 12/15/09 776,645 845,601
8.50% 04/15/10 1,485,100 1,557,963
3,231,674
U.S. Treasury Notes
6.00% 06/30/99 1,305,000 1,311,525
5.875% 08/31/99 334,000 335,199
5.75% 11/15/00 4,355,000 4,367,238
6,013,962
TOTAL U.S. GOVERNMENTS
(COST $18,815,541) 18,803,496
ASSET BACKED -- 4.8%
California Infrastructure
6.17% 03/25/03 200,000 200,978
Capital Asset Research Funding L.P.
6.40% 03/15/02 99,838 99,901
Carco Auto Loan Master Trust
6.689% 08/15/04 54,000 54,355
Fleetwood Credit Grantor Trust
6.40% 05/15/13 143,140 143,408
Ford Motor Credit Corp.
5.65% 10/15/01 260,000 258,741
Lehman FHA Title I Loan Trust
7.30% 05/25/17 51,167 51,710
<PAGE>
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Premier Auto Trust
5.77% 01/06/02 $ 250,000 $ 249,648
6.34% 01/06/02 33,000 33,289
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 67,437 67,488
TOTAL ASSET BACKED
(COST $1,158,293) 1,159,518
CORPORATE NOTES -- 10.1%
America West Airlines
6.86% 07/02/04 310,000 310,310
Fleet Credit Card LLC
6.45% 10/30/00 250,000 252,540
Ford Motor Credit Corp.
7.32% 05/23/02 150,000 151,969
General Motors Acceptance Corp.
8.375% 01/19/99 100,000 101,885
Goldman Sachs Group L.P.
6.20% 12/15/00 100,000 100,000(b)
Ikon Capital Resource Inc.
6.27% 07/19/99 100,000 100,431
Lehman Brothers Holdings Inc.
6.875% 06/08/98 150,000 150,252
National City Capital Trust
6.75% 06/01/99 150,000 151,009
New York State Dormitory
Authority Revenue
6.32% 04/01/99 40,000 40,118
NWCG Holding Corp.
6.66% 06/15/99 135,000 125,331(d)
Province of Manitoba
6.125% 05/28/98 125,000 125,056
Republic of Columbia
8.75% 10/06/99 50,000 51,313
Salomon Inc.
6.70% 12/01/98 75,000 75,351
Tele-Communications Inc.
6.469% 12/20/00 170,000 171,360
Teleport Communications Group
11.10% 07/01/07 320,000 276,000
Videotron Holdings PLC
11.10% 07/01/04 100,000 96,653
Woolworth Corp.
7.00% 06/01/00 150,000 152,152
TOTAL CORPORATE NOTES
(COST $2,420,560) 2,431,730
NON-AGENCY MORTGAGE BACKED -- 6.6%
Asset Securitization Corp.
6.50% 02/14/02 70,159 70,992
BlackRock Capital Finance
7.05% 12/25/08 672,339 674,230
GS Mortgage Securities Corp.
6.94% 07/13/30 153,779 156,519
Morgan Stanley Capital Inc.
6.85% 02/15/20 99,118 100,667
Salomon Brothers Mortgage
Securities Inc.
8.125% 11/01/12 30,474 31,302
6.47% 01/20/28 270,005 271,190
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
50
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Structured Asset Securities Corp.
6.75% 06/25/30 $ 295,695 $ 296,665(b)
TOTAL NON-AGENCY MORTGAGE BACKED
(COST $1,597,835) 1,601,565
TOTAL INVESTMENTS IN SECURITIES
(COST $23,992,229) 23,996,309
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(Cost $1,752,467) 1,752,467 1,752,467
OTHER ASSETS AND LIABILITIES,
NET (6.9%) (1,663,829)
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $24,084,947
================================================================================
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
51
<PAGE>
GE Money Market Fund
- --------------------------------------------------------------------------------
Portfolio Composition
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Commercial Paper 48.0%
U.S. Governments 34.6%
Certificates of Deposit and Other 17.4%
- --------------------------------------------------------------------------------
Average Annual Total Return
for the periods ended March 31, 1998
- --------------------------------------------------------------------------------
Since Commence-
6 Mo. 1 Yr. 3 Yr 5 Yr Inception ment
- --------------------------------------------------------------------------------
GE Money
Market 2.59% 5.24% 5.26% 4.62% 4.58% 2/22/93
- --------------------------------------------------------------------------------
90 Day
T-Bill 2.57% 5.20% 5.28% 4.79%
- --------------------------------------------------------------------------------
Fund Yield
as of March 31,1998
- --------------------------------------------------------------------------------
Fund IBC Money Fund
- --------------------------------------------------------------------------------
7 day current 5.08%+ 5.05%
7 day effective 5.21% 5.18%
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.
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.
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.
+ The seven day yield, rather than the total return, more closely reflects
the current earning of the GE Money Market Fund at March 31, 1998.
* Lipper Performance Comparison
Money Market Peer Group
Based on average annual total returns for the periods ended March 31, 1998
SIX ONE THREE FIVE
MONTHS YEAR YEAR YEAR
------ ---- ---- ----
Number of Funds
in peer group: 319 308 252 188
Peer group average
total return: 2.45% 4.96% 5.01% 4.43%
Lipper categories
in peer group: Money Market
* See Notes to Performance for explanation of peer categories
SEE PAGE 54 FOR NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
52
<PAGE>
Schedule of Investments March 31, 1998 (unaudited)
GE MONEY MARKET FUND
PRINCIPAL AMORTIZED
AMOUNT COST
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 99.4%
- --------------------------------------------------------------------------------
U.S. GOVERNMENTS(D) -- 34.6%
Federal Farm Credit Bank
5.59% 04/07/98 $ 3,100,000 $3,097,194
Federal Home Loan Bank
5.42% 04/13/98 2,670,000 2,665,238
5.72% 06/10/98 3,750,000 3,709,896
5.47% 07/29/98 3,800,000 3,733,552
10,108,686
Federal Home Loan Mortgage Corp.
5.38% 04/30/98 4,600,000 4,580,083
Federal National Mortgage Assoc.
5.78% 04/13/98 2,700,000 2,695,077
5.42% 04/22/98 2,440,000 2,432,406
5.36% 05/05/98 3,000,000 2,984,842
5.42% 06/12/98 4,200,000 4,155,228
5.73% 06/19/98 3,000,000 2,963,726
5.48% 06/29/98 1,010,000 996,791
5.58% 08/24/98 - 08/28/98 7,300,000 7,141,506
23,369,576
TOTAL U.S. GOVERNMENTS
(COST $41,155,539) 41,155,539
COMMERCIAL PAPER(D) -- 48.0%
Abbey National PLC
5.43% 04/17/98 3,400,000 3,391,908
Associates Corp. of North America
5.55% 07/01/98 4,700,000 4,635,013
Bank of Nova Scotia
5.49% 05/01/98 4,590,000 4,569,299
Credit Suisse
5.53% 05/22/98 4,620,000 4,584,330
Halifax Building Society
5.54% 07/01/98 4,910,000 4,842,234
Koch Industries
6.05% 04/01/98 5,000,000 5,000,000
Merrill Lynch & Co. Inc.
5.53% 05/14/98 4,700,000 4,669,404
Morgan (J.P.) & Co. Inc.
5.56% 05/15/98 4,700,000 4,668,348
Morgan Stanley Group Inc.
5.58% 06/15/98 4,750,000 4,695,573
NationsBank Corp.
5.53% 06/04/98 4,650,000 4,604,947
Norwest Corp.
5.57% 05/22/98 4,720,000 4,683,157
Toronto Dominion Bank
5.56% 06/23/98 4,700,000 4,640,618
UBS Finance Delaware Inc.
6.00% 04/01/98 2,200,000 2,200,000
TOTAL COMMERCIAL PAPER
(COST $57,184,831) 57,184,831
<PAGE>
PRINCIPAL AMORTIZED
AMOUNT COST
- --------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 16.5%
Bank of Montreal
5.54% 04/13/98 $ 4,340,000 $4,340,000
Bayerische Vereinsbank AG
5.62% 04/10/98 4,590,000 4,590,000
Deutsche Bank AG
5.56% 04/13/98 4,600,000 4,600,000
Societe Generale
5.49% 04/23/98 4,590,000 4,590,000
Swiss Bank New York
5.54% 07/02/98 1,550,000 1,550,000
TOTAL CERTIFICATE OF DEPOSIT
(COST $19,670,000) 19,670,000
TIME DEPOSIT -- 0.3%
State Street Cayman Islands
5.75% 04/01/98 310,000 310,000
TOTAL SHORT-TERM INVESTMENTS
(COST $118,320,370) 118,320,370
OTHER ASSETS AND LIABILITIES,
NET 0.6% 696,757
- --------------------------------------------------------------------------------
NET ASSETS -- 100% $119,017,127
================================================================================
- ----------
See Notes to Schedules of Investments on page 55 and Notes to Financial
Statements on page 76
53
<PAGE>
Notes to Performance March 31, 1998 (unaudited)
Total returns take into account changes in share price and assume reinvestment
of dividends and capital gains, if any. 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 current maximum applicable sales
charges as described in Note 1 of the Notes to Financial Statements.
The performance data relating to Class A and B shares of GE Mid-Cap Growth Fund,
GE Value Equity Fund, GE Tax-Exempt Fund and GE Government Securities Fund, for
all periods except the six months ended March 31, 1998, reflect the prior
performance and expense ratios (adjusted to reflect GE Funds current sales
charges) of Investors Trust Growth Fund, Investors Trust Value Fund, Investors
Trust Tax Free Fund and Investors Trust Government Fund respectively, each a
series of Investors Trust (collectively, the "Investors Trust Funds"), the
assets of which were acquired by the corresponding GE Fund on September 26, 1997
(the "Merger Date"). Because the Investors Trust Funds did not offer Class C or
D shares, performance data relating to the Class C and D shares of GE Tax-Exempt
Fund is limited to the period from the Merger Date to March 31, 1998. GE
Government Securities Fund did not offer Class D shares during the semi-annual
period ended March 31, 1998, therefore no performance data is shown for Class D
shares of this fund.
Shares of the GE Government Securities Fund and 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.
The Adviser has voluntarily agreed to waive and/or bear certain fees and Fund
expenses. Without these provisions, the performance returns (and/or yields)
would have been lower. These provisions may be terminated in the future.
The Standard & Poor's ("S&P") 500 Composite Price Index of stocks (S&P 500
Index), the S&P 400 Mid-Cap Composite Price Index of 400 (S&P Mid-Cap 400
Index), the S&P/Barra Composite Index of 500 value stocks (S&P/Barra 500 Value
Index), Morgan Stanley Capital International World Index (MSCI World), Morgan
Stanley Capital International EAFE Index (MSCI EAFE), Lehman Brothers Aggregate
Bond Index (LB Aggregate), the Lehman Brothers Municipal Bond Index (LBMI),
Lehman Brothers 1-3 Year Government Bond Index (LB 1-3), the Lehman Brothers
10-Year General Obligation Municipal Bond Index (LB 10yr. GO Muni Bond)and the
Lehman Brothers Government Bond Index are unmanaged indices and do not reflect
the actual cost of investing in the instruments that comprise each index. The
S&P 500 Index is a composite of the prices of 500 widely held stocks recognized
by investors to be representative of the stock market in general. The S&P
Mid-Cap 400 Index is a capitalization-weighted index of 400 U.S. stocks with a
median market capitalization of approximately $700 million. The S&P/Barra 500
Value Index is a capitalization-weighted index of all the stocks in the S&P 500
Index that have low price-to-book ratios. MSCI World Index is a composite of
1,578 stocks in companies from 23 countries representing the European, Pacific
Basin and American regions. MSCI EAFE Index is a composite of 1,109 stocks of
companies from 21 countries representing stock markets of Europe, Australasia,
New Zealand and the Far East. LB Aggregate 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. LBMI is a composite of investment grade, fixed
rate municipal bonds and is considered to be representative of the municipal
bond market. The LB 1-3 is a composite of government and U.S. Treasury
obligations with maturities of 1-3 years. The LB 10yr. GO Muni Bond Index is
comprised of all municipal general obligation investment-grade debt issues with
maturities between 8 and 11 years and each issue must be at least $50 million.
The Lehman Brothers Government Bond Index is comprised of all U.S. dollar
fixed-rate U.S. agency and Treasury bond issues (excluding stripped issues) with
remaining maturities greater than one year and with at least $100 million in
outstanding issuance. The majority of the broad market returns are not available
from the funds' commencement of investment operations through March 31, 1998.
The IBC Money Fund Report yields represent the average yields of 889 taxable
money market funds. The results shown for the foregoing indices assume the
reinvestment of net dividends or interest.
The peer universe of funds used in our peer ranking calculation is based on the
blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal (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 number of 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.
54
<PAGE>
Notes to Schedules of Investments March 31, 1998 (unaudited)
(a) Non-income producing security.
(b) Pursuant to Rule 144A under the Securities Act of 1933, these securities
may be resold in transactions exempt from registration, normally to
qualified institutional buyers. At March 31, 1998, these securities
amounted to $199,904, $314,818, $4,948,679, $8,492,649, $22,505,077 and
$396,665 or 0.5%, 0.6%, 3.8%, 9.2%, 4.8% and 1.6% of net assets for the GE
International Equity, GE Global Equity, GE Strategic Investment, GE Fixed
Income, GE Government Securities and GE Short-Term Government 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, 1998.
(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, 1998, all or a portion of this security was pledged to cover
collateral requirements for futures, options and TBAs.
(i) Escrowed to maturity. Bonds which are collateralized by U.S. Treasury
securities which are held in escrow by a trustee and used to pay principal
and interest on such bonds.
(j) Prerefunded. Bonds which are collateralized by U.S. Treasury securities
which are held in escrow and are used to pay principal and interest on the
tax-exempt issue and to retire the bonds at the earliest refunding date.
(k) The security is insured by AMBAC, MBIA or FGIC. The GE Tax-Exempt Fund had
insurance concentrations of 5% or greater as of March 31, 1998 (as a
percentage of net assets) as follows:
AMBAC 8.8%
MBIA 8.8%
(l) All or a portion of security out on loan.
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
Pfd -- Preferred
Regd -- Registered
REMIC -- Real Estate Mortgage Investment Conduit
SDR -- Special Drawing Rights
VRDN -- Variable Rate Demand Note
55
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE International Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
3/31/98 9/30/97 9/30/96(c) 9/30/95 9/30/94 3/31/98 9/30/97 9/30/96(c) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 3/2/94 -- -- -- -- 3/2/94
Net asset value, beginning of period $20.26 $17.65 $15.87 $15.18 $15.00 $20.02 $17.47 $15.77 $15.13 $15.00
Income (loss) from investment
operations:
Net investment income (loss) (0.08) 0.01 0.07 0.09 0.06 (0.06) (0.06) 0.05 0.01 0.00
Net realized and unrealized
gains (losses) on investments 1.58 3.16 1.74 0.64 0.12 1.48 3.11 1.65 0.64 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.50 3.17 1.81 0.73 0.18 1.42 3.05 1.70 0.65 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.06 0.03 0.04 0.00 0.00 0.00 0.00 0.01 0.00
Net realized gains 3.74 0.50 0.00 0.00 0.00 3.74 0.50 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 3.74 0.56 0.03 0.04 0.00 3.74 0.50 0.00 0.01 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.02 $20.26 $17.65 $15.87 $15.18 $17.70 $20.02 $17.47 $15.77 $15.13
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.55% 18.41% 11.39% 4.87% 1.20% 9.25% 17.86% 10.78% 4.33% 0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $19,542 $17,270 $8,462 $3,948 $25 $660 $455 $272 $57 $34
Ratios to average net assets:
Net investment income (loss)* (0.54%) 0.20% 0.43% 1.28% 1.01% (0.98%) (0.30%) 0.28% 0.10% 0.47%
Net expenses* 1.60% 1.60% 1.59% 1.60% 1.60% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* 1.62% 1.60% 1.66% 1.95% 1.93% 3.11% 4.12% 3.50% 3.50% 2.43%
Portfolio turnover rate 47% 51% 36% 27% 6% 47% 51% 36% 27% 6%
Average brokerage
commission rate (b) $0.015 $0.021 $0.031 N/A N/A $0.015 $0.021 $0.031 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Class D
3/31/98 9/30/97 9/30/96(c) 9/30/95 9/30/94 3/31/98 9/30/97 9/30/96(c) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- 3/2/94 -- -- -- -- 3/2/94
Net asset value,
beginning of period $20.36 $17.65 $15.88 $15.19 $15.00 $20.43 $17.76 $15.94 $15.22 $15.00
Income (loss) from
investment operations:
Net investment income (loss) (0.05) 0.05 0.11 0.12 0.00 (0.56) 0.13 0.17 0.12 0.10
Net realized and unrealized
gains (losses) on investments 1.58 3.19 1.72 0.65 0.19 2.14 3.18 1.73 0.70 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.53 3.24 1.83 0.77 0.19 1.58 3.31 1.90 0.82 0.22
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.03 0.06 0.08 0.00 0.06 0.14 0.08 0.10 0.00
Net realized gains 3.74 0.50 0.00 0.00 0.00 3.74 0.50 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 3.74 0.53 0.06 0.08 0.00 3.80 0.64 0.08 0.10 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.15 $20.36 $17.65 $15.88 $15.19 $18.21 $20.43 $17.76 $15.94 $15.22
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.66% 18.79% 11.54% 5.16% 1.27% 9.95% 19.16% 11.97% 5.45% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $6,525 $6,152 $3,230 $1,262 $481 $12,030 $75,098 $63,225 $32,907 $26,460
Ratios to average net assets:
Net investment income (loss)* (0.27%) 0.45% 0.68% 0.83% 0.66% (0.22%) 0.76% 0.99% 0.97% 1.52%
Net expenses* 1.35% 1.35% 1.35% 1.35% 1.35% 1.02% 1.01% 1.03% 1.07% 1.10%
Gross expenses* 1.47% 1.58% 1.96% 2.75% 1.68% 1.03% 1.01% 1.03% 1.18% 1.43%
Portfolio turnover rate 47% 51% 36% 27% 6% 47% 51% 36% 27% 6%
Average brokerage
commission rate (b) $0.015 $0.021 $0.031 N/A N/A $0.015 $0.021 $0.031 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
56
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Global Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94(d) 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 12/22/93 -- -- -- -- 12/22/93
Net asset value, beginning of period $24.61 $22.01 $20.18 $19.34 $18.61 $24.32 $21.87 $20.14 $19.32 $18.48
Income (loss) from
investment operations:
Net investment income (loss) (0.06) 0.00 0.02 0.10 0.03 (0.11) (0.08) (0.04) 0.00 (0.01)
Net realized and unrealized
gains (losses) on investments 1.70 3.89 2.20 1.22 0.91 1.67 3.82 2.14 1.23 1.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.64 3.89 2.22 1.32 0.94 1.56 3.74 2.10 1.23 1.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.02 0.09 0.01 0.00 0.00 0.00 0.02 0.01
Net realized gains 2.47 1.29 0.37 0.39 0.20 2.47 1.29 0.37 0.39 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.47 1.29 0.39 0.48 0.21 2.47 1.29 0.37 0.41 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $23.78 $24.61 $22.01 $20.18 $19.34 $23.41 $24.32 $21.87 $20.14 $19.32
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 8.39% 18.51% 11.18% 7.16% 3.09% 8.15% 17.92% 10.61% 6.62% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,445 $1,524 $4,054 $2,811 $694 $993 $877 $600 $356 $128
Ratios to average net assets:
Net investment income (loss)* (0.75%) (0.09%) 0.12% 0.47% 0.44% (1.25%) (0.52%) (0.34%) (0.11%) (0.08%)
Net expenses* 1.60% 1.60% 1.60% 1.60% 1.60% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* 2.30% 3.10% 1.90% 2.17% 2.02% 2.77% 3.33% 3.50% 3.50% 2.52%
Portfolio turnover rate 44% 70% 46% 46% 26% 44% 70% 46% 46% 26%
Average brokerage
commission rate (b) $0.020 $0.006 $0.006 N/A N/A $0.020 $0.006 $0.006 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Class D
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94(d) 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- -- 1/5/93 -- -- -- -- 11/29/93
Net asset value,
beginning of period $24.81 $22.18 $20.31 $19.40 $17.16 $15.00 $24.83 $22.25 $20.37 $19.45 $17.49
Income (loss) from
investment operations:
Net investment income (loss) (0.08) 0.04 0.06 0.09 0.07 0.08 (0.16) 0.10 0.13 0.13 0.11
Net realized and unrealized
gains (losses) on investments 1.76 3.94 2.22 1.30 2.37 2.08 1.87 3.94 2.21 1.31 2.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.68 3.98 2.28 1.39 2.44 2.16 1.71 4.04 2.34 1.44 2.17
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.02 0.06 0.04 0.09 0.00 0.00 0.10 0.17 0.09 0.13 0.01
Net realized gains 2.47 1.29 0.37 0.39 0.20 0.00 2.47 1.29 0.37 0.39 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.49 1.35 0.41 0.48 0.20 0.00 2.57 1.46 0.46 0.52 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $24.00 $24.81 $22.18 $20.31 $19.40 $17.16 $23.97 $24.83 $22.25 $20.37 $19.45
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 8.49% 18.82% 11.44% 7.47% 14.28% 14.10% 8.68% 19.14% 11.71% 7.76% 12.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) 35,773 $35,120 $28,682 $23,683 $20,432 $11,999 $16,157 $22,642 $10,123 $9,785 $10,504
Ratios to average net assets:
Net investment income (loss)* (0.49%) 0.24% 0.33% 0.59% 0.52% 1.00% (0.30%) 0.48% 0.56% 0.84% 0.82%
Net expenses* 1.35% 1.35% 1.35% 1.35% 1.31% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10%
Gross expenses* 1.38% 1.45% 1.60% 1.42% 1.77% 2.19% 1.09% 1.10% 1.12% 1.75% 1.52%
Portfolio turnover rate 44% 70% 46% 46% 26% 28% 44% 70% 46% 46% 26%
Average brokerage
commission rate (b) $0.020 $0.006 $0.006 N/A N/A N/A $0.020 $0.006 $0.006 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
57
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Premier Growth Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B Class C Class D
3/31/98 9/30/97(c, h) 3/31/98 9/30/97(c, h) 3/31/98 9/30/97(c, h) 3/31/98 9/30/97(c, h)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- 12/31/96 -- 12/31/96 -- 12/31/96 -- 12/31/96
Net asset value, beginning of period $18.31 $15.00 $18.25 $15.00 $18.35 $15.00 $18.38 $15.00
Income (loss) from investment operations:
Net investment income (loss) 0.06 (0.04) 0.03 (0.09) 0.07 0.00 0.09 0.04
Net realized and unrealized
gains (losses) on investments 2.95 3.35 2.91 3.34 2.97 3.35 2.97 3.34
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.01 3.31 2.94 3.25 3.04 3.35 3.06 3.38
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.00 0.00 0.03 0.00 0.05 0.00
Net realized gains 0.29 0.00 0.29 0.00 0.29 0.00 0.29 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.29 0.00 0.29 0.00 0.32 0.00 0.34 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.03 $18.31 $20.90 $18.25 $21.07 $18.35 $21.10 $18.38
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 16.69% 22.07% 16.36% 21.67% 16.85% 22.33% 16.98% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $5,223 $1,395 $1,132 $447$ 11,025 $7,287 $7,758 $5,770
Ratios to average net assets:
Net investment income (loss)* 0.72% (0.34%) 0.05% (0.76%) 0.71% (0.03%) 0.97% 0.31%
Net expenses* 1.40% 1.40% 1.90% 1.90% 1.15% 1.15% 0.90% 0.90%
Gross expenses* 1.53% 4.09% 2.85% 9.30% 1.23% 1.62% 0.93% 1.17%
Portfolio turnover rate 23% 17% 23% 17% 23% 17% 23% 17%
Average brokerage commission rate (b) $0.049 $0.053 $0.049 $0.053 $0.049 $0.053 $0.049 $0.053
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[GRAPHIC OMITTED]
Photo of Greek Columns & Relief
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
58
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE U.S. Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
(c) (c) (c) (d) (c) (c) (c)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 12/22/93 -- -- -- -- 12/22/93
Net asset value,
beginning of period $29.43 $23.34 $20.28 $16.12 $16.48 $28.35 $22.57 $19.71 $16.03 $16.41
Income (loss) from
investment operations:
Net investment income 0.09 0.23 0.31 0.34 3.23 0.05 0.11 0.19 0.21 0.24
Net realized and unrealized
gains (losses) on investments 3.83 8.33 3.34 3.91 (3.22) 3.65 8.03 3.25 3.84 (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.92 8.56 3.65 4.25 0.01 3.70 8.14 3.44 4.05 (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.21 0.28 0.32 0.00 0.20 0.06 0.17 0.31 0.28 0.20
Net realized gains 2.43 2.19 0.27 0.09 0.17 2.43 2.19 0.27 0.09 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.64 2.47 0.59 0.09 0.37 2.49 2.36 0.58 0.37 0.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $30.71 $29.43 $23.34 $20.28 $16.12 $29.56 $28.35 $22.57 $19.71 $16.03
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 14.59% 39.44% 18.36% 26.52% (0.86%) 14.27% 38.75% 17.78% 25.92% (0.09%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $90,097 $65,535 $34,523 $ 15,148 $1,214 $ 19,375 $14,380 $7,194 $1,563 $91
Ratios to average net assets:
Net investment income* 0.77% 0.93% 1.40% 1.85% 1.87% 0.27% 0.44% 0.90% 1.29% 1.28%
Net expenses* 1.03% 1.00% 1.00% 1.00% 1.00% 1.54% 1.50% 1.50% 1.50% 1.50%
Gross expenses* 1.09% 1.11% 1.15% 1.25% 1.46% 1.70% 1.88% 2.08% 3.50% 1.96%
Portfolio turnover rate 15% 38% 49% 43% 51% 15% 38% 49% 43% 51%
Average brokerage
commission rate (b) $0.060 $0.069 $0.045 N/A N/A $0.060 $0.069 $0.045 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Class D
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 9/30/93 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
(c) (c) (c) (e) (c) (c)
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- -- 1/5/93 -- -- -- -- 11/29/93
Net asset value,
beginning of period $29.00 $23.02 $19.98 $16.13 $16.35 $15.00 $28.99 $23.03 $19.98 $16.16 $16.37
Income (loss) from
investment operations:
Net investment income 0.09 0.30 0.36 0.37 1.00 0.12 0.18 0.37 0.40 0.38 0.32
Net realized and
unrealized gains
(losses) on investments 3.80 8.19 3.30 3.86 (0.85) 1.23 3.73 8.19 3.31 3.88 (0.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.89 8.49 3.66 4.23 0.15 1.35 3.91 8.56 3.71 4.26 0.16
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.24 0.32 0.35 0.29 0.20 0.00 0.33 0.41 0.39 0.35 0.20
Net realized gains 2.43 2.19 0.27 0.09 0.17 0.00 2.43 2.19 0.27 0.09 0.17
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 2.67 2.51 0.62 0.38 0.37 0.00 2.76 2.60 0.66 0.44 0.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $30.22 $29.00 $23.02 $19.98 $16.13 $16.35 $30.14 $28.99 $23.03 $19.98 $16.16
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 14.74% 39.76% 18.70% 26.86% 0.88% 10.32% 14.85% 40.16% 18.97% 27.14% 0.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets,
end of period
(in thousands) $127,363 $97,886 $50,035 $26,007 $16,382 $74,415 $228,427 $212,957 $144,470 $128,247 $114,885
Ratios to
average net assets:
Net investment income* 1.04% 1.18% 1.66% 2.12% 2.11% 1.86% 1.27% 1.45% 1.90% 2.36% 2.27%
Net expenses* 0.77% 0.75% 0.75% 0.75% 0.62% 0.50% 0.53% 0.50% 0.50% 0.50% 0.50%
Gross expenses* 0.86% 0.93% 1.06% 1.19% 1.21% 1.34% 0.56% 0.52% 0.59% 0.71% 0.96%
Portfolio turnover rate 15% 38% 49% 43% 51% 15% 15% 38% 49% 43% 51%
Average brokerage
commission rate (b) $0.060 $0.069 $0.045 N/A N/A N/A $0.060 $0.069 $0.045 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
59
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Mid-Cap Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value,
beginning of period $17.61 $13.16 $11.38 $8.81 $8.69 $8.50
Income (loss) from investment
operations:
Net investment income (loss) 0.10 (0.07) 0.00 0.01 (0.01) 0.00
Net realized and unrealized
gains (losses)
on investments 0.30 4.52 1.78 2.56 0.21 0.19
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.40 4.45 1.78 2.57 0.20 0.19
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gains 7.44 0.00 0.00 0.00 0.08 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 7.44 0.00 0.00 0.00 0.08 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $10.57 $17.61 $13.16 $11.38 $8.81 $8.69
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 7.22% 33.81% 15.64% 29.17% 2.48% 2.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $12,803 $10,885 $8,222 $5,986 $4,182 $3,261
Ratios to average net assets:
Net investment income (loss)* (0.36%) (0.51%) 0.03% 0.10% (0.11%) (0.30%)
Net expenses* 1.40% 1.31% 1.35% 1.35% 1.34% 1.39%
Gross expenses* 1.49% 1.46% 1.70% 2.44% 3.53% 4.83%
Portfolio turnover rate 5% 139% 41% 74% 100% 46%
Average brokerage commission
rate (b) $0.054 $0.067 $0.050 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Class B
3/31/98 9/30/97 (f) 10/31/96 10/31/95 10/31/94 10/31/93
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value,
beginning of period $17.11 $12.87 $11.21 $8.74 $8.70 $8.50
Income (loss) from investment
operations:
Net investment income (loss) 0.12 (0.18) (0.09) (0.05) (0.04) 0.00
Net realized and unrealized
gains (losses)
on investments 0.21 4.42 1.75 2.52 0.16 0.20
- --------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.33 4.24 1.66 2.47 0.12 0.20
- --------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gains 7.44 0.00 0.00 0.00 0.08 0.00
- --------------------------------------------------------------------------------------------------------
Total distributions 7.44 0.00 0.00 0.00 0.08 0.00
- --------------------------------------------------------------------------------------------------------
Net asset value,
end of period $10.00 $17.11 $12.87 $11.21 $8.74 $8.70
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 6.90% 33.02% 14.81% 28.26% 1.67% 2.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $30,972 $32,280 $27,616 $14,311 $5,857 $592
Ratios to average net assets:
Net investment income (loss)* (0.87%) (1.26%) (0.73%) (0.66%) (0.82%) (1.38%)
Net expenses* 1.90% 2.06% 2.10% 2.10% 2.09% 1.86%
Gross expenses* 1.95% 2.21% 2.41% 3.19% 4.06% 5.04%
Portfolio turnover rate 5% 139% 41% 74% 100% 46%
Average brokerage commission
rate (b) $0.054 $0.067 $0.050 N/A N/A N/A
- --------------------------------------------------------------------------------------------------------
</TABLE>
Class C Class D
3/31/98 3/31/98
- --------------------------------------------------------------------------------
Inception date 10/2/97 1/5/98
Net asset value, beginning of period $10.00 $10.00
Income (loss) from investment operations:
Net investment income 0.00 0.01
Net realized and unrealized
gains (losses) on investments (0.26) 1.11
- --------------------------------------------------------------------------------
Total income (loss) from investment operations (0.26) 1.12
- --------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00
Net realized gains 7.44 0.00
- --------------------------------------------------------------------------------
Total distributions 7.44 0.00
- --------------------------------------------------------------------------------
Net asset value, end of period $2.30 $11.12
- --------------------------------------------------------------------------------
TOTAL RETURN (a) 6.46% 11.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,554 $578
Ratios to average net assets:
Net investment income (loss)* (0.06)% 0.34%
Net expenses* 1.21% 0.87%
Gross expenses* 1.66% 0.93%
Portfolio turnover rate 5% 5%
Average brokerage commission rate (b) $0.054 $0.054
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
60
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Value Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value,
beginning of period $13.58 $10.83 $8.95 $7.51 $7.63 $7.50
Income (loss) from investment
operations:
Net investment income (loss) 0.02 0.07 0.05 0.14 0.13 0.01
Net realized and unrealized
gains (losses) on investments 1.34 3.59 1.99 1.45 (0.16) 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.36 3.66 2.04 1.59 (0.03) 0.13
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.04 0.09 0.15 0.09 0.00
Net realized gains 4.16 0.87 0.07 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 4.16 0.91 0.16 0.15 0.09 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.78 $13.58 $10.83 $8.95 $7.51 $7.63
====================================================================================================================================
TOTAL RETURN (a) 14.92% 36.18% 23.10% 21.45% (0.32%) 1.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $13,782 $8,236 $5,833 $4,083 $3,267 $2,249
Ratios to average net assets:
Net investment income (loss)* 0.45% 0.63% 1.03% 1.71% 1.92% 0.73%
Net expenses* 1.35% 1.30% 1.35% 1.35% 1.35% 1.42%
Gross expenses* 1.38% 1.33% 1.73% 2.43% 3.55% 6.37%
Portfolio turnover rate 24% 131% 100% 27% 15% 6%
Average brokerage commission
rate (b) $0.055 $0.046 $0.050 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value,
beginning of period $13.48 $10.79 $8.93 $7.50 $7.64 $7.50
Income (loss) from investment
operations:
Net investment income (loss) 0.00 (0.01) 0.04 0.07 0.08 (0.01)
Net realized and unrealized
gains (losses) on investments 1.31 3.57 1.93 1.45 (0.17) 0.15
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.31 3.56 1.97 1.52 (0.09) 0.14
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00 0.04 0.09 0.05 0.00
Net realized gains 4.16 0.87 0.07 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 4.16 0.87 0.11 0.09 0.05 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.63 $13.48 $10.79 $8.93 $7.50 $7.64
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 14.59% 35.23% 22.30% 20.50% (1.10%) 1.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $50,118 $46,035 $33,318 $14,450 $7,970 $529
Ratios to average net assets:
Net investment income (loss)* 0.06% (0.12%) 0.23% 0.94% 1.09% (1.07%)
Net expenses* 1.83% 2.05% 2.10% 2.10% 2.10% 2.04%
Gross expenses* 1.83% 2.07% 2.40% 3.18% 4.02% 6.38%
Portfolio turnover rate 24% 131% 100% 27% 15% 6%
Average brokerage commission
rate (b) $0.055 $0.046 $0.050 N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Class C Class D
3/31/98 3/31/98
- --------------------------------------------------------------------------------
Inception date 10/2/97 1/5/98
Net asset value, beginning of period $10.00 $10.00
Income (loss) from investment operations:
Net investment income 0.01 0.02
Net realized and unrealized
gains (losses) on investments 0.72 1.22
- --------------------------------------------------------------------------------
Total income (loss) from investment operations 0.73 1.24
- --------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.00 0.00
Net realized gains 4.16 0.00
- --------------------------------------------------------------------------------
Total distributions 4.16 0.00
- --------------------------------------------------------------------------------
Net asset value, end of period $6.57 $11.24
- --------------------------------------------------------------------------------
TOTAL RETURN (a) 14.07% 12.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,352 $1,655
Ratios to average net assets:
Net investment income* 0.65% 0.86%
Net expenses* 1.10% 0.82%
Gross expenses* 1.79% 0.82%
Portfolio turnover rate 24% 24%
Average brokerage commission rate (b) $0.055 $0.055
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
61
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Strategic Investment Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
3/31/98 9/30/97(c) 9/31/96(c) 9/30/95(c) 9/30/94(d)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 12/22/93
Net asset value, beginning of period $24.01 $20.33 $18.43 $15.71 $16.21
Income (loss) from investment operations:
Net investment income 0.23 0.53 0.51 0.52 0.48
Net realized and unrealized
gains (losses) on investments 1.97 3.87 1.90 2.57 (0.65)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.20 4.40 2.41 3.09 (0.17)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.47 0.47 0.43 0.37 0.27
Net realized gains 0.78 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.25 0.72 0.51 0.37 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $24.96 $24.01 $20.33 $18.43 $15.71
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.67% 22.16% 13.35% 20.12% (1.32%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $30,032 $39,731 $25,232 $8,778 $1,104
Ratios to average net assets:
Net investment income* 2.39% 2.42% 2.60% 2.95% 2.59%
Net expenses* 1.28% 1.15% 1.12% 1.15% 1.15%
Gross expenses* 1.27% 1.15% 1.15% 1.19% 1.58%
Portfolio turnover rate 52% 106% 93% 98% 68%
Average brokerage commission rate (b) $0.026 $0.027 $0.046 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
3/31/98 9/30/97(c) 9/30/96(c) 9/30/95(c) 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- 12/22/93
Net asset value, beginning of period $23.70 $20.04 $18.26 $15.62 $16.14
Income (loss) from investment operations:
Net investment income 0.18 0.42 0.41 0.40 0.27
Net realized and unrealized
gains (losses) on investments 1.91 3.82 1.87 2.58 (0.46)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.09 4.24 2.28 2.98 (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.38 0.33 0.42 0.34 0.27
Net realized gains 0.78 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.16 0.58 0.50 0.34 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $24.63 $23.70 $20.04 $18.26 $15.62
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.25% 21.57% 12.73% 19.53% (1.25%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,481 $5,685 $3,701 $882 $150
Ratios to average net assets:
Net investment income* 1.87% 1.92% 2.11% 2.46% 1.92%
Net expenses* 1.76% 1.65% 1.65% 1.65% 1.65%
Gross expenses* 1.77% 1.93% 2.10% 3.50% 2.08%
Portfolio turnover rate 52% 106% 93% 98% 68%
Average brokerage commission rate (b) $0.026 $0.027 $0.046 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
3/31/98 9/30/97(c) 9/30/96(c) 9/30/95(c) 9/30/94 9/30/93(e)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 1/5/93
Net asset value, beginning of period $24.11 $20.38 $18.46 $15.72 $16.08 $15.00
Income (loss) from investment operations:
Net investment income 0.26 0.59 0.54 0.53 0.44 0.23
Net realized and unrealized
gains (losses) on investments 1.98 3.88 1.92 2.59 (0.48) 0.85
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 2.24 4.47 2.46 3.12 (0.04) 1.08
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.52 0.49 0.46 0.38 0.26 0.00
Net realized gains 0.78 0.25 0.08 0.00 0.06 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.30 0.74 0.54 0.38 0.32 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.05 $24.11 $20.38 $18.46 $15.72 $16.08
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.82% 22.45% 13.58% 20.35% (0.27%) 8.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $48,192 $40,516 $26,467 $17,821 $13,018 $12,780
Ratios to average net assets:
Net investment income* 2,63% 2.66% 2.81% 3.21% 2.62% 2.68%
Net expenses* 0.89% 0.90% 0.90% 0.90% 0.85% 0.65%
Gross expenses* 0.89% 0.94% 1.05% 1.03% 1.33% 1.65%
Portfolio turnover rate 52% 106% 93% 98% 68% 20%
Average brokerage commission rate (b) $0.026 $0.027 $0.046 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class D
3/31/98 9/30/97(c) 9/30/96(c) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 11/29/93
Net asset value, beginning of period $24.16 $20.44 $18.49 $15.74 $16.02
Income (loss) from investment operations:
Net investment income 0.30 0.64 0.63 0.55 0.45
Net realized and unrealized
gains (losses) on investments 1.96 3.89 1.90 2.62 (0.40)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 2.26 4.53 2.53 3.17 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.57 0.56 0.50 0.42 0.27
Net realized gains 0.78 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 1.35 0.81 0.58 0.42 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.07 $24.16 $20.44 $18.49 $15.74
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 9.92% 22.76% 13.95% 20.70% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $43,330 $37,924 $36,162 $18,665 $17,159
Ratios to average net assets:
Net investment income* 2.68% 2.90% 3.16% 3.46% 2.93%
Net expenses* 0.64% 0.65% 0.58% 0.65% 0.65%
Gross expenses* 0.64% 0.65% 0.59% 0.97% 1.08%
Portfolio turnover rate 52% 106% 93% 98% 68%
Average brokerage commission rate (b) $0.026 $0.027 $0.046 N/A N/A
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
62
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Tax-Exempt Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value, beginning of period $11.63 $11.42 $11.31 $10.59 $11.48 $11.50
Income (loss) from investment
operations:
Net investment income 0.25 0.53 0.62 0.55 0.45 0.05
Net realized and unrealized
gains (losses) on investments 0.03 0.22 0.05 0.73 (0.78) 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.28 0.75 0.67 1.28 (0.33) 0.06
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.25 0.54 0.56 0.56 0.56 0.07
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
Return of Capital 0.00 0.00 0.00 0.00 0.00 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.25 0.54 0.56 0.56 0.56 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.66 $11.63 $11.42 $11.31 $10.59 $11.48
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.43% 6.77% 6.13% 12.24% (2.99%) 0.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $5,555 $16,542 $16,169 $16,025 $14,283 $15,136
Ratios to average net assets:
Net investment income* 4.26% 5.01% 5.42% 5.01% 4.08% 2.73%
Net expenses* 1.10% 0.35% 0.00% 0.00% 0.77% 1.15%
Gross expenses* 1.24% 1.57% 1.52% 1.81% 1.62% 2.09%
Portfolio turnover rate 36% 13% 6% 25% 0% 0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value, beginning of period $11.63 $11.44 $11.32 $10.60 $11.48 $11.50
Income (loss) from investment
operations:
Net investment income 0.20 0.51 0.62 0.55 0.43 0.06
Net realized and unrealized
gains (losses) on investments 0.05 0.21 0.06 0.73 (0.82) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.25 0.72 0.68 1.28 (0.39) 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.22 0.53 0.56 0.56 0.49 0.06
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
Return of Capital 0.00 0.00 0.00 0.00 0.00 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.22 0.53 0.56 0.56 0.49 0.07
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.66 $11.63 $11.44 $11.32 $10.60 $11.48
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.18% 6.46% 6.12% 12.33% (3.45%) 0.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $9,292 $10,133 $9,184 $7,668 $4,990 $1,202
Ratios to average net assets:
Net investment income* 3.79% 4.79% 5.43% 5.01% 3.75% 2.27%
Net expenses* 1.60% 0.57% 0.00% 0.00% 1.14% 1.84%
Gross expenses* 1.74% 2.32% 2.26% 2.56% 2.30% 2.48%
Portfolio turnover rate 36% 13% 6% 25% 0% 0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Class D
3/31/98 9/30/97(g) 3/31/98 9/30/97(g)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Inception date -- 9/26/97 -- 9/26/97
Net asset value, beginning of period $12.09 $12.08 $12.10 $12.09
Income (loss) from investment operations:
Net investment income 0.33 0.02 2.55 0.02
Net realized and unrealized gains (losses) on investments (0.02) 0.00 (2.22) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.31 0.02 0.33 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.27 0.01 0.30 0.01
Net realized gains 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.27 0.01 0.30 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.13 $12.09 $12.13 $12.10
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.63% 0.11% 2.77% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $8,608 $8,032 $23 $3,216
Ratios to average net assets:
Net investment income* 4.54% 4.04% 4.73% 4.31%
Net expenses* 0.85% 0.74% 0.60% 0.54%
Gross expenses* 1.04% 0.76% 1.11% 0.56%
Portfolio turnover rate 36% 13% 36% 13%
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
63
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Fixed Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94(d) 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 12/22/93 -- -- -- -- 12/22/93
Net asset value, beginning of period $12.05 $11.69 $11.91 $11.27 $12.19 $12.06 $11.70 $11.91 $11.26 $12.15
Income (loss) from
investment operations:
Net investment income 0.33 0.69 0.65 0.73 0.47 0.31 0.63 0.60 0.65 0.42
Net realized and unrealized
gains (losses) on investments 0.13 0.35 (0.19) 0.63 (0.84) 0.13 0.36 (0.20) 0.66 (0.81)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.46 1.04 0.46 1.36 (0.37) 0.44 0.99 0.40 1.31 (0.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.33 0.68 0.68 0.72 0.47 0.30 0.63 0.61 0.66 0.42
Net realized gains 0.00 0.00 0.00 0.00 0.08 0.00 0.00 0.00 0.00 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.33 0.68 0.68 0.72 0.55 0.30 0.63 0.61 0.66 0.50
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.18 $12.05 $11.69 $11.91 $11.27 $12.20 $12.06 $11.70 $11.91 $11.26
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 3.89% 9.19% 3.91% 12.48% (3.02%) 3.72% 8.64% 3.41% 11.98% (3.31%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $29,211 $18,617 $15,653 $5,400 $26,023 $1,579 $1,401 $1,673 $234 $65
Ratios to average net assets:
Net investment income* 6.03% 5.81% 5.66% 6.22% 5.37% 4.54% 5.17% 5.19% 5.57% 4.83%
Net expenses* 1.18% 1.09% 1.05% 1.08% 1.10% 1.45% 1.56% 1.60% 1.60% 1.58%
Gross expenses* 1.21% 1.14% 1.12% 1.18% 1.51% 1.92% 2.19% 2.44% 3.50% 2.01%
Portfolio turnover rate 103% 258% 275% 315% 298% 103% 258% 275% 315% 298%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 9/30/93(e)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 1/5/93
Net asset value, beginning of period $12.06 $11.70 $11.92 $11.27 $12.31 $12.00
Income (loss) from investment operations:
Net investment income 0.35 0.72 0.69 0.73 0.61 0.36
Net realized and unrealized
gains (losses) on investments 0.13 0.35 (0.21) 0.67 (0.96) 0.31
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.48 1.07 0.48 1.40 (0.35) 0.67
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.35 0.71 0.70 0.75 0.61 0.36
Net realized gains 0.00 0.00 0.00 0.00 0.08 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.35 0.71 0.70 0.75 0.69 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.19 $12.06 $11.70 $11.92 $11.27 $12.31
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 4.02% 9.45% 4.10% 12.81% (2.97%) 5.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $42,162 $35,097 $28,115 $21,401 $13,600 $11,485
Ratios to average net assets:
Net investment income* 6.22% 6.17% 5.84% 6.37% 5.22% 3.87%
Net expense* 0.89% 0.85% 0.85% 0.85% 0.79% 0.60%
Gross expenses* 0.94% 0.96% 0.99% 0.95% 1.26% 1.63%
Portfolio turnover rate 103% 258% 275% 315% 298% 68%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Class D
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
Inception date -- -- -- -- 11/29/93
Net asset value, beginning of period $12.05 $11.69 $11.92 $11.27 $12.17
Income (loss) from investment operations:
Net investment income 0.37 0.75 0.72 0.77 0.55
Net realized and unrealized
gains (losses) on investments 0.13 0.35 (0.22) 0.65 (0.83)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.50 1.10 0.50 1.42 (0.28)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.36 0.74 0.73 0.77 0.54
Net realized gains 0.00 0.00 0.00 0.00 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.36 0.74 0.73 0.77 0.62
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.19 $12.05 $11.69 $11.92 $11.27
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 4.23% 9.74% 4.32% 13.10% (2.34%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $19,077 $16,229 $19,098 $6,642 $2,732
Ratios to average net assets:
Net investment income* 5.29% 5.97% 6.14% 6.57% 5.40%
Net expense* 0.50% 0.56% 0.55% 0.59% 0.58%
Gross expenses* 0.53% 0.59% 0.57% 2.50% 1.01%
Portfolio turnover rate 103% 258% 275% 315% 298%
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
64
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Government Securities Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 9/8/93
Net asset value, beginning of
period $8.53 $8.48 $8.70 $8.43 $10.14 $10.32
Income (loss) from
investment operations:
Net investment income 0.28 0.53 0.62 0.58 0.70 0.12
Net realized and unrealized
gains (losses) on investments 0.06 0.05 (0.22) 0.38 (1.60) (0.18)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.34 0.58 0.40 0.96 (0.90) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.29 0.53 0.54 0.58 0.70 0.12
Net realized gains 0.00 0.00 0.00 0.00 0.03 0.00
Return of Capital 0.00 0.00 0.08 0.11 0.08 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.29 0.53 0.62 0.69 0.81 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $8.58 $8.53 $8.48 $8.70 $8.43 $10.14
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 4.05% 7.13% 4.80% 11.77% (9.17%) (0.60%)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) $23,492 $24,027 $29,090 $26,889 $21,498 $1,470
Ratios to average net assets:
Net investment income* 6.37% 6.91% 6.59% 6.78% 7.09% 6.81%
Net expenses* 1.10% 0.88% 0.90% 1.01% 0.99% 0.95%
Gross expenses* 1.18% 0.88% 0.90% 1.01% 0.99% 0.95%
Portfolio turnover rate 45% 110% 334% 316% 129% 76%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
3/31/98 9/30/97(f) 10/31/96 10/31/95 10/31/94 10/31/93
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- -- 4/22/87
Net asset value, beginning of
period $8.54 $8.49 $8.71 $8.42 $10.14 $9.95
Income (loss) from
investment operations:
Net investment income 0.26 0.47 0.55 0.51 0.60 0.71
Net realized and unrealized
gains (losses) on investments 0.06 0.05 (0.22) 0.41 (1.58) 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.32 0.52 0.33 0.92 (0.98) 0.91
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.26 0.47 0.48 0.52 0.60 0.72
Net realized gains 0.00 0.00 0.00 0.00 0.03 0.00
Return of Capital 0.00 0.00 0.07 0.11 0.11 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.26 0.47 0.55 0.63 0.74 0.72
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $8.60 $8.54 $8.49 $8.71 $8.42 $10.14
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 3.77% 6.36% 4.00% 11.19% (9.98%) 9.48%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) $447,081 $523,303 $767,216 $1,112,254 $1,252,348 $1,342,597
Ratios to average net assets:
Net investment income* 5.87% 6.15% 5.77% 6.08% 6.45% 6.96%
Net expenses* 1.60% 1.63% 1.69% 1.76% 1.76% 1.73%
Gross expenses* 1.60% 1.63% 1.69% 1.76% 1.76% 1.73%
Portfolio turnover rate 45% 110% 334% 316% 129% 76%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Class C
3/31/98(k)
- --------------------------------------------------------------------------------
Inception date 10/28/97
Net asset value, beginning of period $10.00
Income (loss) from investment operations:
Net investment income 0.27
Net realized and unrealized gains (losses) on investments 0.00
- --------------------------------------------------------------------------------
Total income (loss) from investment operations 0.27
- --------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.26
Net realized gains 0.00
- --------------------------------------------------------------------------------
Total distributions 0.26
- --------------------------------------------------------------------------------
Net asset value, end of period $10.01
================================================================================
TOTAL RETURN (a) 2.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $350
Ratios to average net assets:
Net investment income* 6.29%
Net expenses* 0.84%
Gross expenses* 2.99%
Portfolio turnover rate 45%
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
65
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Short-Term Government Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 3/2/94 -- -- -- -- 3/2/94
Net asset value, beginning of period $11.85 $11.78 $11.91 $11.72 $12.00 $11.84 $11.78 $11.90 $11.72 $12.00
Income (loss) from investment operations:
Net investment income 0.31 0.65 0.60 0.64 0.35 0.28 0.61 0.56 0.59 0.33
Net realized and unrealized
gains (losses) on investments 0.01 0.07 (0.06) 0.21 (0.30) 0.02 0.06 (0.05) 0.21 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.32 0.72 0.54 0.85 0.05 0.30 0.67 0.51 0.80 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.32 0.64 0.61 0.66 0.33 0.30 0.60 0.57 0.62 0.30
Net realized gains 0.02 0.01 0.06 0.00 0.00 0.02 0.01 0.06 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.34 0.65 0.67 0.66 0.33 0.32 0.61 0.63 0.62 0.30
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.83 $11.85 $11.78 $11.91 $11.72 $11.82 $11.84 $11.78 $11.90 $11.72
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.76% 6.30% 4.63% 7.48% 0.40% 2.58% 5.84% 4.35% 7.01% 0.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $8,540 $7,298 $340 $285 $35 $956 $1,031 $145 $83 $25
Ratios to average net assets:
Net investment income* 5.15% 5.24% 5.04% 5.27% 4.75% 4.82% 4.84% 4.67% 5.07% 4.38%
Net expenses* 0.95% 0.95% 0.95% 0.95% 0.95% 1.30% 1.30% 1.30% 1.30% 1.30%
Gross expenses* 1.19% 2.19% 3.00% 3.00% 1.71% 2.08% 7.77% 3.35% 3.35% 2.06%
Portfolio turnover rate 144% 265% 201% 415% 146% 144% 265% 201% 415% 146%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 3/31/98 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Inception date -- -- -- -- 3/2/94 -- -- -- -- 3/2/94
Net asset value, beginning of period $11.86 $11.79 $11.91 $11.72 $12.00 $11.85 $11.78 $11.90 $11.72 $12.00
Income (loss) from investment operations:
Net investment income 0.32 0.67 0.63 0.66 0.36 0.34 0.70 0.66 0.69 0.39
Net realized and unrealized
gains (losses) on investments 0.01 0.08 (0.05) 0.22 (0.30) 0.00 0.08 (0.05) 0.21 (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.33 0.75 0.58 0.88 0.06 0.34 0.78 0.61 0.90 0.08
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.34 0.67 0.64 0.69 0.34 0.35 0.70 0.67 0.72 0.36
Net realized gains 0.02 0.01 0.06 0.00 0.00 0.02 0.01 0.06 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.36 0.68 0.70 0.69 0.34 0.37 0.71 0.73 0.72 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.83 $11.86 $11.79 $11.91 $11.72 $11.82 $11.85 $11.78 $11.90 $11.72
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.80% 6.57% 4.98% 7.74% 0.53% 2.93% 6.83% 5.24% 7.92% 0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $6,753 $5,319 $3,653 $2,437 $287 $7,836 $7,717 $7,786 $8,048 $7,822
Ratios to average net assets:
Net investment income* 5.40% 5.57% 5.28% 5.62% 5.18% 5.67% 5.80% 5.54% 5.89% 5.32%
Net expenses* 0.70% 0.70% 0.70% 0.70% 0.70% 0.45% 0.45% 0.45% 0.45% 0.45%
Gross expenses* 1.00% 1.07% 1.34% 1.84% 1.46% 0.72% 0.68% 0.83% 0.98% 1.21%
Portfolio turnover rate 144% 265% 201% 415% 146% 144% 265% 201% 415% 146%
</TABLE>
- ----------
See Notes to Financial Highlights on page 67 and Notes to Financial Statements
on page 76
66
<PAGE>
Financial Highlights
Selected data based on a share outstanding throughout the period(s) indicated
(March 31, 1998 data is unaudited)
<TABLE>
<CAPTION>
GE Money Market Fund
3/31/98 9/30/97 9/30/96 9/30/95 9/30/94 9/30/93(e)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 $1.00
Income (loss) from investment operations:
Net investment income 0.03 0.05 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 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.03 0.05 0.05 0.05 0.03 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income 0.03 0.05 0.05 0.05 0.03 0.02
Net realized gains 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.03 0.05 0.05 0.05 0.03 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 2.59% 5.14% 5.18% 5.52% 3.31% 1.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $119,017 $114,030 $85,842 $71,664 $53,607 $17,197
Ratios to average net assets:
Net investment income* 5.33% 5.04% 5.06% 5.32% 3.41% 2.27%
Net expenses* 0.52% 0.47% 0.45% 0.45% 0.45% 0.45%
Gross expenses* 0.55% 0.56% 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 Adviser not absorbed a portion of expenses, total returns would
have been lower. Periods less than one year are not annualized.
(b) For the fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on
which commissions are charged. Mark-ups, mark-downs and spreads on shares
traded on a principal basis are not included unless they are disclosed on
confirmations prepared in accordance with Rule 10b-10 under the 1934 Act.
(c) Per share data is based on average shares outstanding during the period.
(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.
(f) For the period November 1, 1996, through September 30, 1997.
(g) For the period September 27, 1997, through September 30, 1997.
(h) For the period December 31, 1996 (commencement of operations), through
September 30, 1997.
(i) For the period October 2, 1997 (commencement of operations), through March
31, 1998.
(j) For the period January 5, 1998 (commencement of operations), through March
31, 1998.
(k) For the period October 28, 1997 (commencement of operations), through March
31, 1998.
* Annualized for periods less than one year.
- ----------
See Notes to Financial Statements on page 76
67
<PAGE>
Statements Of Assets
And Liabilities March 31, 1998 (unaudited)
<TABLE>
<CAPTION>
GE GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S. MID-CAP
EQUITY EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at market
(cost $31,329,460; $43,263,170; $17,398,797;
$301,386,945; $36,487,719; $53,127,069;
$100,008,215; $22,019,746; $87,563,405;
$455,381,186; $23,992,229; and $0,
respectively) $ 38,150,913 $ 53,315,352 $ 22,511,215 $ 440,405,289 $ 41,147,203
Short term investments (at amortized cost) -- 675,668 2,476,216 23,359,103 4,937,058
Cash -- 25,452 5,089 76,207 29,978
Foreign currency (cost $1,110,757;
$467,844; $0; $368; $0; $18,798; $308,046;
$0; $678; $0; $0 and $0, respectively) 1,108,614 467,700 -- 368 --
Receivable for investments sold 110,603 78,601 1,012,368 1,413,244 --
Income receivables 189,019 122,802 26,419 486,009 51,135
Receivable for fund shares sold 199,592 73,858 93,631 1,991,941 92,235
Variation margin receivable -- -- 3,600 -- 10,825
Deferred organizational costs 19,407 -- 10,491 -- 2,438
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 39,778,148 54,759,433 26,139,029 467,732,161 46,270,872
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market *** -- -- -- -- --
Distributions payable to shareholders -- -- -- -- --
Payable upon return of securities loaned -- -- -- -- --
Payable for investments purchased 153,934 27,399 913,277 1,205,348 --
Payable for fund shares redeemed 61,330 168,779 8,521 473,985 91,395
Payable to GEIM 309,528 194,405 79,742 766,497 272,024
Variation margin payable -- -- -- 24,275 --
Payable to custodian 496,408 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,021,200 390,583 1,001,540 2,470,105 363,419
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 38,756,948 $ 54,368,850 $ 25,137,489 $ 465,262,056 $ 45,907,453
====================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in $ 32,741,467 $ 42,675,545 $ 19,784,318 $ 306,577,912 $ 41,722,383
Undistributed (overdistributed)
net investment income (364,480) (254,570) 54,610 1,325,328 (149,383)
Accumulated net realized gain (loss) (440,963) 1,893,007 175,305 18,245,398 (343,751)
Net unrealized appreciation /
(depreciation) on:
Investments 6,821,453 10,052,182 5,112,418 139,018,344 4,659,484
Futures -- -- 10,838 95,474 18,725
Written options -- -- -- -- --
Foreign currency related transactions (529) 2,686 -- (400) (5)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 38,756,948 $ 54,368,850 $ 25,137,489 $ 465,262,056 $ 45,907,453
====================================================================================================================================
Class A:
Net assets $ 19,541,552 $ 1,445,465 $ 5,222,810 $ 90,097,172 $ 12,802,945
Shares outstanding ($.001 par value) 1,084,619 60,781 248,321 2,933,666 1,210,852
Net asset value per share $ 18.02 $ 23.78 $ 21.03 $ 30.71 $ 10.57
Maximum offering price per share $ 19.12 $ 25.23 $ 22.31 $ 32.58 $ 11.21
Class B:
Net assets $ 660,160 $ 993,292 $ 1,131,676 $ 19,375,327 $ 30,971,874
Shares outstanding ($.001 par value) 37,300 42,424 54,134 655,396 3,097,082
Net asset value per share* $ 17.70 $ 23.41 $ 20.90 $ 29.56 $ 10.00
Class C:
Net assets $ 6,525,055 $ 35,772,879 $ 11,025,088 $ 127,362,771 $ 1,554,417
Shares outstanding ($.001 par value) 359,601 1,490,748 523,245 4,214,739 675,390
Net asset value per share $ 18.15 $ 24.00 $ 21.07 $ 30.22 $ 2.30
Class D:
Net assets $ 12,030,181 $ 16,157,214 $ 7,757,915 $ 228,426,786 $ 578,217
Shares outstanding ($.001 par value) 660,677 674,191 367,588 7,578,423 52,012
Net asset value per share $ 18.21 $ 23.97 $ 21.10 $ 30.14 $ 11.12
</TABLE>
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
*** Premiums received for the GE Strategic Investment Fund, GE Fixed Income
Fund, and GE Government Securities Fund were $2,256, $4,365, and $25,858,
respectively.
- ----------
See Notes to Financial Statements on page 76
68
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE GE GE GE
VALUE STRATEGIC TAX- FIXED GOVERNMENT SHORT-TERM MONEY
EQUITY INVESTMENT EXEMPT INCOME SECURITIES GOVERNMENT MARKET
FUND FUND FUND FUND FUND FUND FUND**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at market
(cost $31,329,460; $43,263,170;
$17,398,797; $301,386,945;
$36,487,719; $53,127,069;
$100,008,215; $22,019,746;
$87,563,405; $455,381,186;
$23,992,229; and $0,
respectively) $63,452,101 $126,612,526 $23,137,678 $88,516,968 $465,496,944 $23,996,309 $ --
Short term investments
(at amortized cost) 3,589,078 5,980,749 61,019 9,173,835 46,955,015 1,752,467 118,320,370
Cash 43,361 30,810 12,841 -- 395,178 -- 1,362
Foreign currency (cost $1,110,757;
$467,844; $0; $368; $0; $18,798;
$308,046; $0; $678; $0; $0 and
$0, respectively) 18,548 344,022 -- 2,123 -- -- --
Receivable for investments sold 19,163 563,391 122,101 350,084 21,399,430 -- --
Income receivables 76,153 661,391 418,712 1,044,279 9,410,668 252,832 227,001
Receivable for fund shares sold 40,909 488,821 36,884 304,594 -- 937,418 1,017,224
Variation margin receivable 12,000 -- -- -- -- -- --
Deferred organizational costs 2,457 -- 2,432 -- -- 19,409 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 67,253,770 134,681,710 23,791,667 99,391,883 543,657,235 26,958,435 119,565,957
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market *** -- 2,078 -- 4,020 23,816 -- --
Distributions payable to
shareholders -- -- 11,777 72,982 465,064 16,430 98,574
Payable upon return of
securities loaned -- -- -- -- 49,248,180 -- --
Payable for investments purchased 18,680 3,107,622 102,028 6,874,030 20,259,741 -- --
Payable for fund shares redeemed 15,099 239,410 83,126 227,589 567,966 958,836 255,047
Payable to GEIM 313,440 292,784 116,804 179,745 2,170,411 164,459 195,209
Variation margin payable -- 4,800 -- -- -- -- --
Payable to custodian -- -- -- 4,653 -- 1,733,763 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 347,219 3,646,694 313,735 7,363,019 72,735,178 2,873,488 548,830
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $66,906,551 $131,035,016 $23,477,932 $92,028,864 $470,922,057 $24,084,947 $119,017,127
====================================================================================================================================
NET ASSETS CONSIST OF:
Capital paid in $55,366,997 $ 94,780,568 $22,756,604 $93,258,668 $656,875,663 $24,085,837 $118,971,189
Undistributed (overdistributed)
net investment income 12,717 816,672 72,787 96,922 (952,121) (18,090) 55,271
Accumulated net
realized gain (loss) 1,145,778 8,835,103 (469,391) (2,280,617) (195,119,285) 13,120 (9,333)
Net unrealized appreciation /
(depreciation) on:
Investments 10,325,032 26,604,311 1,117,932 953,563 10,115,758 4,080 --
Futures 56,150 (500) -- -- -- -- --
Written options -- 178 -- 345 2,042 -- --
Foreign currency
related transactions (123) (1,316) -- (17) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $66,906,551 $131,035,016 $23,477,932 $92,028,864 $ 470,922,057 $24,084,947 $119,017,127
====================================================================================================================================
Class A:
Net assets $13,782,283 $ 30,032,312 $ 5,554,755 $29,211,125 $ 23,491,704 $ 8,539,891 $ --
Shares outstanding
($.001 par value) 1,278,218 1,203,305 476,202 2,398,545 2,739,227 722,175 --
Net asset value per share $ 10.78 $ 24.96 $ 11.66 $ 12.18 $ 8.58 $ 11.83 $ --
Maximum offering price per share $ 11.44 $ 26.48 $ 12.18 $ 12.72 $ 8.96 $ 12.13 $ --
Class B:
Net assets $50,117,819 $ 9,480,638 $ 9,291,786 $ 1,578,801 $447,080,534 $ 956,091 $ --
Shares outstanding
($.001 par value) 4,714,703 384,931 796,755 129,442 51,988,733 80,891 --
Net asset value per share* $ 10.63 $ 24.63 $ 11.66 $ 12.20 $ 8.60 $ 11.82 $ --
Class C:
Net assets $ 1,351,793 $ 48,191,876 $ 8,608,156 $42,161,989 $ 349,819 $ 6,753,109 $119,017,127
Shares outstanding
($.001 par value) 205,744 1,923,685 709,930 3,458,534 34,950 570,645 119,028,365
Net asset value per share $ 6.57 $ 25.05 $ 12.13 $ 12.19 $ 10.01 $ 11.83 $ 1.00
Class D:
Net assets $ 1,654,656 $ 43,330,190 $ 23,235 $19,076,949 $ -- $ 7,835,856 $ --
Shares outstanding
($.001 par value) 147,262 1,728,133 1,916 1,565,544 -- 662,738 --
Net asset value per share $ 11.24 $ 25.07 $ 12.13 $ 12.19 $ -- $ 11.82 $ --
</TABLE>
69
<PAGE>
<TABLE>
<CAPTION>
Statements Of Operations
For the six months ended March 31, 1998 (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH U.S. MID-CAP
EQUITY EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 309,866 $ 214,992 $ 131,315 $ 3,221,345 $ 139,436
Interest 88,912 22,794 52,931 382,206 78,696
Less: Foreign taxes withheld (32,014) (16,758) (1,465) (13,900) (2,081)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income 366,764 221,028 182,781 3,589,651 216,051
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory and administration fees 338,726 199,012 57,327 811,581 125,118
Distribution fees
Class A 43,044 3,411 8,285 175,410 28,074
Class B 2,728 4,568 3,807 81,612 148,304
Class C 7,232 40,791 10,937 133,368 908
Blue Sky fees
Class A 4,119 4,122 3,740 6,565 7,480
Class B 2,546 3,023 3,740 4,313 7,425
Class C 2,912 6,470 3,740 7,171 2,466
Class D 9,515 4,339 3,740 15,405 55
Transfer agent fees
Class A 10,863 2,027 527 24,134 6,905
Class B 611 972 302 11,083 24,250
Class C 4,865 30,993 5,291 54,085 --
Class D 24,883 13,567 1,046 62,340 159
Trustees' fees 1,049 696 193 4,695 524
Custody and accounting expenses 15,488 13,633 10,985 34,678 12,729
Professional fees 12,409 8,234 2,276 55,588 6,202
Registration expenses 3,640 2,415 668 16,305 1,818
Amortization of deferred
organization expense 10,544 7,394 1,510 11,608 2,790
Other expenses 8,832 5,764 1,453 38,910 4,342
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 504,006 351,431 119,567 1,548,851 379,549
Less: Expenses waived or borne by
the adviser (12,955) (11,717) (10,522) (113,641) (14,115)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 491,051 339,714 109,045 1,435,210 365,434
Net investment income (loss) (124,287) (118,686) 73,736 2,154,441 (149,383)
====================================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS Realized gain (loss) on:
Investments 16,125,311 2,607,807 230,741 21,705,092 (336,789)
Futures -- -- 67,549 556,169 108,001
Written options -- -- -- -- --
Foreign currency related transactions (247,603) (161,343) 573 (2,572) (16)
Increase (decrease) in unrealized
appreciation/ depreciation on:
Investments (11,374,679) 1,257,568 2,970,370 33,758,173 3,393,770
Futures -- -- 10,838 81,498 18,725
Written options -- -- -- -- --
Foreign currency related transactions 11,204 13,629 -- (390) (5)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 4,514,233 3,717,661 3,280,071 56,097,970 3,183,686
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $ 4,389,946 $ 3,598,975 $ 3,353,807 $ 58,252,411 $ 3,034,303
====================================================================================================================================
</TABLE>
* GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements on page 76
70
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE GE GE GE GE
VALUE STRATEGIC TAX- FIXED GOVERNMENT SHORT-TERM MONEY
EQUITY INVESTMENT EXEMPT INCOME SECURITIES GOVERNMENT MARKET
FUND FUND FUND FUND FUND FUND FUND*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 432,862 $ 588,702 $ -- $ 30,911 $ -- $ -- $ --
Interest 71,930 1,527,395 753,117 2,591,652 18,817,461 692,618 3,260,232
Less: Foreign taxes withheld (1,511) (11,663) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total income 503,281 2,104,434 753,117 2,622,563 18,817,461 692,618 3,260,232
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory and administration fees 156,188 220,157 49,132 142,813 1,008,880 34,008 144,652
Distribution fees
Class A 25,751 88,826 21,402 59,612 59,137 19,562 --
Class B 227,632 36,418 48,487 7,436 2,400,688 4,191 --
Class C 697 53,759 10,323 48,497 230 7,746 --
Blue Sky fees
Class A 7,480 6,292 3,704 5,329 7,480 3,307 --
Class B 7,480 3,589 3,285 3,403 7,480 2,606 --
Class C 2,466 5,365 4,524 5,682 2,123 3,615 15,923
Class D -- 6,852 3,715 5,098 -- 4,801 --
Transfer agent fees
Class A 3,509 28,983 5,658 8,388 15,341 2,015 --
Class B 29,921 3,998 6,290 1,036 280,826 743 --
Class C -- 26,437 5,578 21,511 -- 2,697 86,650
Class D 518 32,765 646 6,356 -- 1,531 --
Trustees' fees 677 1,488 433 896 6,626 263 1,412
Custody and accounting expenses 13,532 17,803 12,251 14,684 44,851 11,361 17,405
Professional fees 8,007 17,619 5,125 10,599 78,476 3,124 16,722
Registration expenses 2,348 5,168 1,504 3,109 23,020 915 4,905
Amortization of deferred
organization expense 2,812 7,394 2,783 8,798 -- 10,542 5,987
Other expenses 5,606 15,890 3,588 7,420 54,933 2,178 11,705
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 494,624 578,803 188,428 360,667 3,990,091 115,205 305,361
Less: Expenses waived or borne by
the adviser (4,060) (1,814) (24,152) (20,316) (22,091) (32,654) (16,058)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 490,564 576,989 164,276 340,351 3,968,000 82,551 289,303
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 12,717 1,527,445 588,841 2,282,212 14,849,461 610,067 2,970,929
====================================================================================================================================
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on:
Investments 1,129,568 9,464,415 273,215 695,004 1,823,564 193,785 --
Futures 259,925 -- -- -- -- -- --
Written options -- 21,293 -- 41,960 135,680 -- --
Foreign currency related
transactions (1,403) (51,095) -- 34,133 -- -- --
Increase (decrease) in unrealized
appreciation/ depreciation on:
Investments 6,926,130 803,853 (236,316) (20,617) 2,292,128 (167,461) --
Futures 59,775 (500) -- -- -- -- --
Written options -- (1,563) -- (4,556) 2,042 -- --
Foreign currency related
transactions (123) 730 -- 36,681 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 8,373,872 10,237,133 36,899 782,605 4,253,414 26,324 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $8,386,589 $11,764,578 $ 625,740 $3,064,817 $19,102,875 $ 636,391 $2,970,929
====================================================================================================================================
</TABLE>
71
<PAGE>
<TABLE>
<CAPTION>
Statements Of Changes
In Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH
EQUITY EQUITY EQUITY
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ (124,287) $ 563,474 $ (118,686) $ 154,615 $ 73,736 $ 8,169
Net realized gain (loss) on
investments, futures, written
options, and foreign
currency related transactions 15,877,708 2,350,213 2,446,464 5,416,080 298,863 140,932
Net increase (decrease)
in unrealized
appreciation/depreciation (11,363,475) 12,454,659 1,271,197 3,302,780 2,981,208 2,142,048
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations 4,389,946 15,368,346 3,598,975 8,873,475 3,353,807 2,291,149
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A -- (31,255) -- -- -- --
Class B -- -- -- -- -- --
Class C -- (6,212) (24,430) (75,298) (13,202) --
Class D (224,494) (492,285) (90,621) (111,661) (17,092) --
Tax return of capital
Class A -- -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D -- -- -- -- -- --
Net realized gains
Class A (3,380,824) (262,419) (150,720) (41,620) (32,269) --
Class B (115,286) (8,157) (99,362) (36,858) (11,673) --
Class C (1,110,552) (106,194) (3,436,488) (1,688,506) (130,090) --
Class D (14,195,464) (1,792,954) (2,293,450) (832,366) (90,458) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (19,026,620) (2,699,476) (6,095,071) (2,786,309) (294,784) --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations and distributions (14,636,674) 12,668,870 (2,496,096) 6,087,166 3,059,023 2,291,149
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale of shares
Class A 11,941,088 9,346,593 238,078 907,794 3,620,891 1,613,168
Class B 294,226 145,617 169,510 274,406 581,180 394,141
Class C 425,584 2,763,355 1,617,090 6,488,610 2,582,224 6,940,203
Class D 12,618,699 61,528,741 3,239,414 12,920,814 1,036,341 4,709,150
Value of distributions reinvested
Class A 3,380,725 292,984 150,786 41,520 32,269 --
Class B 106,474 6,989 99,333 36,754 11,511 --
Class C 1,074,389 107,698 3,342,509 1,735,843 140,390 --
Class D 14,343,411 2,285,228 2,384,063 944,022 107,550 --
Cost of shares redeemed
Class A (11,229,605) (2,710,964) (417,225) (3,599,332) (452,961) (352,602)
Class B (149,430) (21,353) (127,793) (117,375) (31,197) --
Class C (560,240) (669,241) (3,538,097) (5,528,374) (330,058) (695,771)
Class D (77,827,005) (61,958,762) (10,455,876) (3,488,049) (119,112) --
Proceeds from aquisition of fund -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions (45,581,684) 11,116,885 (3,298,208) 10,616,633 7,179,028 12,608,289
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets (60,218,358) 23,785,755 (5,794,304) 16,703,799 10,238,051 14,899,438
NET ASSETS
Beginning of period 98,975,306 75,189,551 60,163,154 43,459,355 14,899,438 --
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 38,756,948 $ 98,975,306 $ 54,368,850 $ 60,163,154 $ 25,137,489 $ 14,899,438
====================================================================================================================================
Undistributed (overdistributed)
net investment
income, end of period $ (364,480) $ (15,699) $ (254,570) $ (20,833) $ 54,610 $ 11,168
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE
U.S. MID-CAP
EQUITY GROWTH
FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ 2,154,441 $ 3,892,364 $ (149,383) $ (386,718)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 22,258,689 32,007,920 (228,804) 19,179,275
Net increase (decrease) in unrealized
appreciation/depreciation 33,839,281 66,505,232 3,412,490 (7,395,902)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations 58,252,411 102,405,516 3,034,303 11,396,655
Distributions to shareholders from:
Net investment income
Class A (481,181) (332,785) -- --
Class B (32,171) (58,927) -- --
Class C (855,823) (758,606) -- --
Class D (2,463,920) (2,607,415) -- --
Tax return of capital
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Net realized gains
Class A (5,530,158) (2,630,802) (4,628,251) --
Class B (1,340,093) (765,822) (13,485,924) --
Class C (8,562,260) (5,196,483) (361,359) --
Class D (18,140,095) (14,080,728) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (37,405,701) (26,431,568) (18,475,534) --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions 20,846,710 75,973,948 (15,441,231) 11,396,655
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale of shares
Class A 25,046,743 32,487,800 1,667,197 651,141
Class B 3,973,958 4,876,961 1,798,114 4,138,692
Class C 20,534,023 33,202,755 1,573,858 --
Class D 17,921,607 54,548,257 604,593 --
Value of distributions reinvested
Class A 6,012,234 2,963,444 4,628,103 --
Class B 1,348,014 808,909 13,080,553 434
Class C 9,237,668 5,854,736 354,972 --
Class D 20,389,435 16,688,138 -- --
Cost of shares redeemed
Class A (10,750,262) (14,806,398) (655,191) (763,248)
Class B (1,337,467) (1,027,087) (4,669,580) (8,096,306)
Class C (6,561,285) (9,333,878) (127,995) --
Class D (32,157,781) (47,701,146) (71,317) --
Proceeds from aquisition of--fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions 53,656,887 78,562,491 18,183,307 (4,069,287)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 74,503,597 154,536,439 2,742,076 7,327,368
NET ASSETS
Beginning of period 390,758,459 236,222,020 43,165,377 35,838,009
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 465,262,056 $ 390,758,459 $ 45,907,453 $ 43,165,377
====================================================================================================================================
Undistributed (overdistributed) net investment
income, end of period $ 1,325,328 $ 3,003,982 $ (149,383) $ --
</TABLE>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
- ----------
See Notes to Financial Statements on page 76
72
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE
VALUE STRATEGIC
EQUITY INVESTMENT
FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ 12,717 $ (4,103) $ 1,527,445 $ 2,776,537
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 1,388,090 16,217,779 9,434,613 3,696,675
Net increase (decrease) in unrealized
appreciation/depreciation 6,985,782 (1,649,840) 802,520 14,813,759
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations 8,386,589 14,563,836 11,764,578 21,286,971
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A -- (21,440) (814,947) (461,097)
Class B -- (2,231) (111,753) (63,980)
Class C -- -- (927,488) (691,773)
Class D -- -- (936,622) (1,079,566)
Tax return of capital
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Net realized gains
Class A (2,507,957) (475,283) (1,344,753) (243,915)
Class B (13,807,227) (2,729,341) (230,774) (48,212)
Class C (117,795) -- (1,380,557) (353,335)
Class D -- -- (1,269,011) (478,496)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (16,432,979) (3,228,295) (7,015,905) (3,420,374)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions (8,046,390) 11,335,541 4,748,673 17,866,597
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale of shares
Class A 4,841,372 823,722 5,778,031 21,737,339
Class B 3,938,664 10,675,955 3,467,084 1,584,741
Class C 1,274,979 -- 6,820,583 11,916,896
Class D 1,710,944 -- 5,012,462 14,484,361
Value of distributions reinvested
Class A 2,501,541 496,574 2,157,656 703,204
Class B 13,419,750 2,619,315 331,559 111,422
Class C 126,287 -- 2,232,380 1,017,319
Class D -- -- 2,205,624 1,558,062
Cost of shares redeemed
Class A (988,880) (589,327) (18,405,779) (13,641,813)
Class B (5,876,267) (10,241,538) (417,429) (507,717)
Class C (66,758) -- (3,258,598) (4,581,193)
Class D (199,976) -- (3,493,059) (19,955,143)
Proceeds from aquisition of fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions 20,681,656 3,784,701 2,430,514 14,427,478
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 12,635,266 15,120,242 7,179,187 32,294,075
NET ASSETS
Beginning of period 54,271,285 39,151,043 123,855,829 91,561,754
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 66,906,551 $ 54,271,285 $ 131,035,016 $ 123,855,829
====================================================================================================================================
Undistributed (overdistributed) net investment
income, end of period $ 12,717 $ -- $ 816,672 $ 2,080,037
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE
TAX- FIXED
EXEMPT INCOME
FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ 588,841 $ 1,151,538 $ 2,282,212 $ 3,870,453
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 273,215 (55,544) 771,097 994,264
Net increase (decrease) in unrealized
appreciation/depreciation (236,316) 550,991 11,508 1,049,251
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations 625,740 1,646,985 3,064,817 5,913,968
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (182,973) (767,703) (652,283) (888,166)
Class B (184,124) (421,200) (37,184) (80,626)
Class C (187,856) (4,518) (1,116,607) (1,886,051)
Class D (34,901) (1,880) (528,856) (1,047,014)
Tax return of capital
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Net realized gains
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
Total distributions (589,854) (1,195,301) (2,334,930) (3,901,857)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions 35,886 451,684 729,887 2,012,111
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale of shares
Class A 231,060 93,600 15,729,567 7,378,651
Class B 251,206 1,106,385 201,000 178,891
Class C 721,654 1,653 9,328,190 10,863,901
Class D 2 -- 5,179,836 9,329,217
Value of distributions reinvested
Class A 14,170 27,172 642,815 877,956
Class B 130,340 298,059 32,762 73,560
Class C 155,324 -- 911,051 1,552,771
Class D 25,780 -- 526,460 1,049,141
Cost of shares redeemed
Class A (11,208,343) (594,559) (5,917,794) (5,791,665)
Class B (1,248,015) (1,863,309) (69,687) (569,926)
Class C (319,974) (2,050) (3,575,274) (6,396,220)
Class D (3,234,636) -- (3,033,799) (13,753,765)
Proceeds from aquisition of fund -- 13,051,759 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions (14,481,432) 12,118,710 19,955,127 4,792,512
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (14,445,546) 12,570,394 20,685,014 6,804,623
NET ASSETS
Beginning of period 37,923,478 25,353,084 71,343,850 64,539,227
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 23,477,932 $ 37,923,478 $ 92,028,864 $ 71,343,850
====================================================================================================================================
Undistributed (overdistributed) net investment
income, end of period $ 72,787 $ 73,800 $ 96,922 $ 149,640
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
GOVERNMENT SHORT-TERM MONEY
SECURITIES GOVERNMENT MARKET
FUND FUND FUND*
SIX MONTHS ENDED YEAR ENDED SIX MONTH ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income/(loss) $ 14,849,461 $ 37,145,128 $ 610,067 $ 749,505 $ 2,970,929 $ 5,081,919
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 1,959,244 3,276,687 193,785 44,179 -- (474)
Net increase (decrease) in unrealized
appreciation/depreciation 2,294,170 (1,376,782) (167,461) 49,129 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase from operations 19,102,875 39,045,033 636,391 842,813 2,970,929 5,081,445
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income
Class A (810,980) (1,774,779) (211,771) (38,125) -- --
Class B (14,567,524) (34,870,480) (25,146) (5,375) -- --
Class C (5,614) -- (176,218) (265,636) (2,970,929) (5,083,754)
Class D -- -- (228,265) (453,643) -- --
Tax return of capital
Class A -- (14,200) -- -- -- --
Class B -- (278,995) -- -- -- --
Class C -- -- -- -- -- --
Class D -- -- -- -- -- --
Net realized gains
Class A -- -- (12,916) (469) -- --
Class B -- -- (1,764) (143) -- --
Class C -- -- (11,323) (5,468) -- --
Class D -- -- (13,601) (9,662) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (15,384,118) (36,938,454) (681,004) (778,521) (2,970,929) (5,083,754)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions 3,718,757 2,106,579 (44,613) 64,292 -- (2,309)
- ------------------------------------------------------------------------------------------------------------------------------------
Share transactions:
Proceeds from sale of shares
Class A 3,058,539 6,420,060 1,628,866 1,007,456 -- --
Class B 1,150,705 1,910,220 18,680 1,016,179 -- --
Class C 411,752 -- 1,773,996 2,442,574 103,412,579 234,308,541
Class D -- -- 451,685 4,875,679 -- --
Value of distributions reinvested
Class A 486,554 953,206 218,698 32,067 -- --
Class B 7,555,457 18,663,303 21,632 2,461 -- --
Class C 4,515 -- 170,652 249,182 2,832,822 4,838,099
Class D -- -- 240,870 456,946 -- --
Cost of shares redeemed
Class A (4,205,681) (12,540,641) (588,246) (164,903) -- --
Class B (88,524,096) (246,487,916) (113,162) (1,118,841) -- --
Class C (64,811) -- (498,645) (1,048,136) (101,257,818) (210,956,472)
Class D -- -- (560,292) (5,443,242) -- --
Proceeds from aquisition of fund -- -- -- 7,069,264 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions (80,127,066) (231,081,768) 2,764,734 9,376,686 4,987,583 28,190,168
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (76,408,309) (228,975,189) 2,720,121 9,440,978 4,987,583 28,187,859
NET ASSETS
Beginning of period 547,330,366 776,305,555 21,364,826 11,923,848 114,029,544 85,841,685
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 470,922,057 $ 547,330,366 $ 24,084,947 $ 21,364,826 $ 119,017,127 $ 114,029,544
====================================================================================================================================
Undistributed (overdistributed)
net investment
income, end of period $ (952,121) $ (417,464) $ (18,090) $ 13,243 $ 55,271 $ 55,271
</TABLE>
73
<PAGE>
<TABLE>
<CAPTION>
Statements Of Changes
In Net Assets (continued)
Changes In Fund Shares
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
INTERNATIONAL GLOBAL PREMIER GROWTH
EQUITY EQUITY EQUITY
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C> <C> <C>
Shares sold by subscription 636,724 501,638 10,951 38,598 193,639 96,889
Issued for distributions reinvested 204,348 16,618 7,432 1,932 1,793 --
Shares redeemed (608,822) (145,418) (19,538) (162,855) (23,262) (20,738)
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 232,250 372,838 (1,155) (122,325) 172,170 76,151
====================================================================================================================================
CLASS B:
Shares sold by subscription 16,587 7,935 7,273 12,065 30,598 24,530
Issued for distributions reinvested 6,550 400 4,967 1,724 643 --
Shares redeemed (8,576) (1,175) (5,860) (5,170) (1,637) --
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 14,561 7,160 6,380 8,619 29,604 24,530
====================================================================================================================================
CLASS C:
Shares sold by subscription 23,369 149,455 71,432 284,215 135,562 440,229
Issued for distributions reinvested 64,512 6,092 163,280 80,285 7,791 --
Shares redeemed (30,511) (36,301) (159,540) (242,109) (17,173) (43,164)
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in fund shares 57,370 119,246 75,172 122,391 126,180 397,065
====================================================================================================================================
CLASS D:
Shares sold by subscription 681,929 3,325,700 143,653 564,945 53,878 313,891
Issued for distributions reinvested 858,464 129,182 116,751 43,705 5,965 --
Shares redeemed (4,556,180) (3,338,513) (498,259) (151,578) (6,146) --
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (3,015,787) 116,369 (237,855) 457,072 53,697 313,891
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE
U.S. MID-CAP
EQUITY GROWTH
FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A:
Shares sold by subscription 858,860 1,229,311 166,447 45,252
Issued for distributions reinvested 223,670 127,023 489,229 --
Shares redeemed (375,384) (608,801) (62,814) (52,136)
Shares from acquisitions of fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 707,146 747,533 592,862 (6,884)
====================================================================================================================================
CLASS B:
Shares sold by subscription 142,983 194,796 171,460 293,713
Issued for distributions reinvested 52,027 35,856 1,459,769 32
Shares redeemed (46,936) (42,077) (420,893) (553,350)
Shares from acquisitions of fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 148,074 188,575 1,210,336 (259,605)
====================================================================================================================================
CLASS C:
Shares sold by subscription 719,867 1,319,280 536,258 --
Issued for distributions reinvested 349,515 255,106 173,157 --
Shares redeemed (230,016) (372,791) (34,025) --
Shares from acquisitions of fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in fund shares 839,366 1,201,595 675,390 --
====================================================================================================================================
CLASS D:
Shares sold by subscription 630,392 2,185,018 58,973 --
Issued for distributions reinvested 774,086 729,058 -- --
Shares redeemed (1,172,732) (1,839,879) (6,961) --
Shares from acquisitions of fund -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 231,746 1,074,197 52,012 --
====================================================================================================================================
</TABLE>
* GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
74
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
VALUE STRATEGIC TAX-
EQUITY INVESTMENT EXEMPT
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C> <C> <C>
Shares sold by subscription 498,099 69,116 242,274 1,013,955 20,005 7,816
Issued for distributions reinvested 269,272 46,979 94,758 33,678 1,215 2,371
Shares redeemed (95,628) (48,223) (788,600) (633,971) (967,754) (51,517)
Shares from acquisitions of fund -- -- -- -- -- 48,461
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 671,743 67,872 (451,568) 413,662 (946,534) 7,131
====================================================================================================================================
CLASS B:
Shares sold by subscription 378,742 910,258 148,177 73,254 21,549 96,638
Issued for distributions reinvested 1,461,832 248,003 14,710 5,385 11,173 25,858
Shares redeemed (541,647) (830,850) (17,822) (23,418) (107,067) (162,031)
Shares from acquisitions of fund -- -- -- -- -- 107,527
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 1,298,927 327,411 145,065 55,221 (74,345) 67,992
====================================================================================================================================
CLASS C:
Shares sold by subscription 193,716 -- 283,822 542,727 59,462 137
Issued for distributions reinvested 22,352 -- 97,713 48,606 12,808 --
Shares redeemed (10,324) -- (138,170) (209,785) (26,402) (170)
Shares from acquisitions of fund -- -- -- -- -- 664,095
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in fund shares 205,744 -- 243,365 381,548 45,868 664,062
====================================================================================================================================
CLASS D:
Shares sold by subscription 166,562 -- 207,927 660,856 -- --
Issued for distributions reinvested -- -- 96,568 74,407 2,139 --
Shares redeemed (19,300) -- (146,151) (934,956) (266,125) --
Shares from acquisitions of fund -- -- -- -- -- 265,902
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 147,262 -- 158,344 (199,693) (263,986) 265,902
====================================================================================================================================
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
GE
FIXED
INCOME
FUND
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997
- --------------------------------------------------------------------------------
CLASS A:
Shares sold by subscription 1,286,285 622,149
Issued for distributions reinvested 52,875 74,052
Shares redeemed (485,843) (490,365)
Shares from acquisitions of fund -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in fund shares 853,317 205,836
================================================================================
CLASS B:
Shares sold by subscription 16,345 15,044
Issued for distributions reinvested 2,692 6,199
Shares redeemed (5,704) (48,093)
Shares from acquisitions of fund -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in fund shares 13,333 (26,850)
================================================================================
CLASS C:
Shares sold by subscription 766,961 915,906
Issued for distributions reinvested 74,886 130,841
Shares redeemed (293,498) (539,791)
Shares from acquisitions of fund -- --
- --------------------------------------------------------------------------------
Net increase in fund shares 548,349 506,956
================================================================================
CLASS D:
Shares sold by subscription 425,156 787,978
Issued for distributions reinvested 43,298 88,445
Shares redeemed (249,206) (1,163,393)
Shares from acquisitions of fund -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in fund shares 219,248 (286,970)
================================================================================
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE GE GE
GOVERNMENT SHORT-TERM MONEY
SECURITIES GOVERNMENT MARKET
FUND FUND FUND*
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER MARCH 31, 1998 SEPTEMBER
(UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997 (UNAUDITED) 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C> <C> <C>
Shares sold by subscription 354,882 759,978 137,450 83,835 -- --
Issued for distributions reinvested 56,632 112,984 18,475 2,714 -- --
Shares redeemed (488,515) (1,487,386) (49,696) (13,950) -- --
Shares from acquisitions of fund -- -- -- 514,537 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (77,001) (614,424) 106,229 587,136 -- --
====================================================================================================================================
CLASS B:
Shares sold by subscription 133,524 226,547 1,572 87,200 -- --
Issued for distributions reinvested 877,423 2,209,474 1,828 208 -- --
Shares redeemed (10,279,715) (29,214,346) (9,550) (94,431) -- --
Shares from acquisitions of fund -- -- -- 81,740 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (9,268,768) (26,778,325) (6,150) 74,717 -- --
====================================================================================================================================
CLASS C:
Shares sold by subscription 40,930 -- 149,676 206,389 103,412,579 234,308,541
Issued for distributions reinvested 450 -- 14,407 21,072 2,832,822 4,838,098
Shares redeemed (6,430) -- (42,057) (88,632) (101,257,818) (210,956,472)
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in fund shares 34,950 -- 122,026 138,829 4,987,583 28,190,167
====================================================================================================================================
CLASS D:
Shares sold by subscription -- -- 38,100 412,203 -- --
Issued for distributions reinvested -- -- 20,355 38,673 -- --
Shares redeemed -- -- (47,243) (460,152) -- --
Shares from acquisitions of fund -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares -- -- 11,212 (9,276) -- --
====================================================================================================================================
</TABLE>
- ----------
See Notes to Financial Statements on page 76
75
<PAGE>
Notes to Financial Statements March 31, 1998 (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 thirteen
investment portfolios (each a "Fund" and collectively the "Funds") only twelve
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
Mid-Cap Growth Fund, GE Value Equity Fund, GE Strategic Investment Fund, GE
Tax-Exempt Fund, GE Fixed Income Fund, GE Government Securities 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. However,
as of March 31, 1998, only three classes were being offered for the GE
Government Securities Fund.
The commencement dates of the Funds were as follows:
Fund Class A Class B Class C Class D
- --------------------------------------------------------------------------------
GE International
Equity 3/2/1994 3/2/1994 3/2/1994 3/2/1994
- --------------------------------------------------------------------------------
GE Global Equity 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- --------------------------------------------------------------------------------
GE Premier
Growth Equity 12/31/1996 12/31/1996 12/31/1996 12/31/1996
- --------------------------------------------------------------------------------
GE U.S. Equity 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- --------------------------------------------------------------------------------
GE Mid-Cap
Growth 9/8/1993 9/8/1993 10/2/1997 1/5/1998
- --------------------------------------------------------------------------------
GE Value
Equity 9/8/1993 9/8/1993 10/2/1997 1/5/1998
- --------------------------------------------------------------------------------
GE Strategic
Investment 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- --------------------------------------------------------------------------------
GE Tax-Exempt 9/8/1993 9/8/1993 9/26/1997 9/26/1997
- --------------------------------------------------------------------------------
GE Fixed Income 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- --------------------------------------------------------------------------------
GE Government
Securities 9/8/1993 4/22/1987 10/28/1997 --
- --------------------------------------------------------------------------------
GE Short-Term
Government 3/2/1994 3/2/1994 3/2/1994 3/2/1994
- --------------------------------------------------------------------------------
GE Money
Market -- -- 2/22/1993 --
- --------------------------------------------------------------------------------
Maximum Sales Load Imposed on Purchases of Class A Shares (as a percentage of
offering price):
5.75% 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 GE Government
Equity Fund Securities Fund
GE U.S. Equity Fund
GE Mid-Cap Growth Fund
GE Value 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 Government GE Premier Growth Equity
Securities Fund Fund
GE Short-Term GE U.S. Equity Fund
Government Fund GE Mid-Cap Growth Fund
GE Value Equity Fund
GE Strategic Investment Fund
Except as described in the next paragraph, 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.
The maximum contingent deferred sales load for Class B redemptions from shares
acquired, either by purchase or exchange, as a result of the combination of the
Investors Trust Funds with the Trust is as follows: 5.00% within the first year,
4.00% within the second year, 3.00% within the third year, 2.00% within the
fourth year, 1.00% within the fifth year, and 0.00% thereafter.
No front or back-end sales charges, redemption fees or exchange fees are
assessed by the Trust with respect to Class C and Class D shares and shares of
GE Money Market Fund.
* Imposed only for shares redeemed within one year of purchase that were
subject to no front-end sales load upon purchase by virtue of being part of
a purchase of $1 million or more.
76
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The following summarizes the significant accounting policies of the Trust:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results may differ from those estimates.
Security Valuation and Transactions
Securities for which exchange quotations are readily available are valued at the
last sale price, or if no sales occurred on that day, at the last quoted bid
price. Certain fixed income securities are valued by a dealer or by a pricing
service based upon a computerized matrix system, which considers market
transactions and dealer supplied valuations. Valuations for municipal bonds are
based on prices obtained from a qualified municipal bond pricing service; prices
represent the mean of the bid and ask 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 are valued at the last
sale price, or if no sales occurred on that day, at the last quoted bid price.
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. Fund positions
which cannot be valued as set forth above are valued at fair value determined
under procedures approved by the Board of Trustees of the Funds.
GE Money Market Fund values its securities using the amortized cost method, in
accordance with Rule 2a-7 of the 1940 Act, 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. Realized gains and losses
on investments sold are recorded on the basis of specific identified cost 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 denominated in a foreign currency
are translated to U.S. dollars at the prevailing rates of exchange at period
end. Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the respective
dates of 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, net realized gains and losses on
sales and maturities of forward foreign currency contracts, and the difference
between the amounts of net investment income accrued 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 as a result of
changes in exchange rates.
Income Taxes
The Funds intend to comply with all sections of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all
of their taxable income, tax-exempt income, and gains to their 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.
As of September 30, 1997, the following Funds have capital loss carryovers as
indicated below. The capital loss carryovers of the GE Tax-Exempt Fund and GE
Short-Term Government Fund include capital loss carryovers of $218,824 and
$173,893, respectively, acquired as a result of the reorganization
77
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
with the Investors Trust Tax Free Fund and Investors Trust Adjustable Rate Fund,
respectively. The capital loss carryovers are available to offset future
realized capital gains to the extent provided in the Internal Revenue Code and
regulations thereunder. 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.
Fund Amount Expires
- --------------------------------------------------------------------------------
GE Tax-Exempt Fund $ 176,173 2002
68,177 2003
498,256 2004
GE Fixed Income Fund 2,559,595 2003
38,636 2004
445,270 2005
GE Government Securities Fund 87,336,523 2002
107,525,597 2003
1,748,819 2004
GE Short-Term Government Fund 44,539 2001
114,498 2002
14,856 2003
GE Money Market Fund 3,370 2003
5,688 2005
Any net capital and currency losses incurred after October 31, within each
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 losses as follows:
GE U.S. Equity Fund $ 6,183
GE Global Equity Fund 100,869
GE International Equity Fund 198,835
GE Strategic Investment Fund 30,711
GE Money Market Fund 275
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 GEIM, investment adviser to the
Funds, and reimbursed by the Funds up to the voluntary expense limitations.
Distributions to Shareholders
GE Tax-Exempt Fund, GE Fixed Income Fund, GE Government Securities Fund, GE
Short-Term Government Fund and GE Money Market Fund declare investment income
dividends daily and pay them monthly. All other Funds 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 contracts, paydown gains and losses on mortgage-backed securities,
losses deferred due to 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.
During any particular year, net realized gains from investment transactions in
excess of any applicable capital loss carryforwards would be taxable to the
Funds if
78
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
not distributed and, therefore, will be declared and paid to their shareholders
annually.
GE Government Securities Fund will declare a distribution each day in an amount
based on periodic projections of its future net investment income. Consequently,
the amount of each daily distribution may differ from actual net investment
income.
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.
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
The Funds generally use foreign forward currency contracts to facilitate
transactions in securities denominated in foreign currencies and to manage the
Funds' currency exposure. Contracts to sell are generally used to hedge the
Funds' investments against currency fluctuations or to offset a previous
contract to buy. Contracts to buy are generally used to hedge exposure to
foreign currencies or to offset previous contracts to sell. Losses may arise
from changes in the value of foreign currency or if the counterparties do not
perform under the contracts' terms.
Daily fluctuations in the value of such contracts are recorded as unrealized
gains or losses. When the contract is closed, the Fund records a 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. Such gains and losses are disclosed in the
realized gain (loss) on foreign currency related transactions in the
accompanying Statements of Operations.
Repurchase Agreements
The Funds' custodian takes possession of the collateral pledged for investments
in repurchase agreements on behalf of the Funds. It is the policy of the Funds
to value the underlying collateral daily on a mark-to-market basis to determine
that the value, including accrued interest, is at least equal to the repurchase
price. In the event of default of the obligation to repurchase, the Funds have
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation.
Futures and Options
The Funds, other than GE Money Market Fund, may invest in futures contracts and
purchase and write options. The Funds may invest in futures and options
contracts for the following reasons: (1) for the purpose of hedging against the
effects of changes in the value of portfolio securities or other investments due
to anticipated changes in interest rates, stock market conditions and currency
market conditions, (2) to gain stock, bond, or currency market exposure for
accumulating and residual cash positions, (3) for duration management, and (4)
when such transactions are an economically appropriate way to reduce risks
inherent in the management of a Fund. No fund will enter into a transaction
involving futures and options on futures for speculative purposes. 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, shown in the Schedule of Investments under the
captions "Other Information", "Call Options Written" and "Put Options Written"
reflect the extent of the involvement the Funds have in the particular classes
of these instruments. Losses 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. Losses may also arise if there is an illiquid
secondary market for the instruments, or an inability of counterparties to
perform.
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 change 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
79
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option, or the proceeds on the sale of the
security for a purchased put or cost of the security for a call option is
adjusted by the amount of premium received or paid.
Security Lending
The Funds may loan securities to brokers, dealers, and financial institutions
determined by GEIM to be creditworthy, up to a maximum of 20% of the total value
of the Fund's assets. The loans of securities will be secured by collateral in
the form of cash or other liquid assets, which will be segregated and maintained
with the custodian in an amount at least equal to the current market value of
the loaned securities. The Funds receive a lender fee in addition to the
interest and dividends on the loaned securities during the term of the loan. The
Funds will receive any gain or loss in the market value of its loaned securities
and of securities in which cash collateral is invested during the term of the
loan. In the event the counterparty (borrower) does not meet its contractual
obligation to return the securities, the Fund may be exposed to the risk of loss
of reacquiring the loaned securities at prevailing market prices.
Foreign Securities
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 Mid-Cap Growth Fund .60% .30%
GE Value Equity Fund .55% .30%
GE Strategic Investment Fund .35% .30%
GE Tax-Exempt Fund .35% .25%
GE Fixed Income Fund .35% .20%
GE Government Securities Fund .40% .20%
GE Short-Term Government Fund .30% .15%
GE Money Market Fund .25% .25%
* Effective January 28, 1998, the GE U.S. Equity Fund changed it's Limitation
of Other Operating Expenses. The rate for Limitation of Other Operating
Expenses in effect during the fiscal year ended September 30, 1997, and the
ensuing period through January 28, 1998, for this Fund was higher than the
rate indicated in the above table.
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 Distributors, Inc. ("GEID"), 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 the average daily net assets
attributable to each applicable class of shares. The annual rates applicable are
.50% for Class A shares; 1.00% for Class B shares (except GE Short-Term
Government Fund which is .85%); and .25% for Class C shares. Currently Class D
is not subject to a 12b-1 fee plan.
GEID has agreed that the 1.00% of average daily net assets on Class B shares
will only be assessed on any shareholder's shares for a limited period of time
until converted to Class A shares. Once Class B shares automatically convert to
Class A shares, six years after the date of purchase (eight years in the case of
shares acquired or exchanged from shares of Investors Trust Funds), such
shareholders will be subject only to the .50% distribution and/or shareholder
services fees attributable to Class A shares.
80
<PAGE>
Notes to Financial Statements March 31, 1998 (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, 1998, GEID acting as underwriter received net
commissions of $14,556 from the sale of Class A shares and $502,380 in
contingent deferred sales charges from redemptions of Class A and Class B
shares.
4. SUB-ADVISORY AGREEMENT
GEIM has retained Brown Brothers Harriman & Co. ("Brown Brothers") as the
investment sub-adviser to the GE Tax-Exempt Fund pursuant to an investment
sub-advisory agreement with GEIM. Brown Brothers is responsible for the
day-to-day portfolio management of the Tax-Exempt Fund's assets including the
responsibility for making decisions and placing orders to buy, sell or hold a
particular security, under the general supervision of GEIM and the Board.
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at March 31, 1998, were as follows:
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
- --------------------------------------------------------------------------------
GE International
Equity Fund $ 7,649,266 $ 827,813 $ 6,821,453
GE Global
Equity Fund 11,357,499 1,305,317 10,052,182
GE Premier Growth
Equity Fund 5,232,918 120,500 5,112,418
GE U.S. Equity
Fund 140,673,470 1,655,126 139,018,344
GE Mid-Cap
Growth Fund 6,139,278 1,479,794 4,659,484
GE Value Equity
Fund 10,885,716 560,684 10,325,032
GE Strategic
Investment Fund 27,429,584 825,273 26,604,311
GE Tax-Exempt
Fund 1,119,770 1,838 1,117,932
GE Fixed Income
Fund 1,246,548 292,985 953,563
GE Government
Securities Fund 16,238,501 6,122,743 10,115,758
GE Short-Term
Government Fund 50,698 46,618 4,080
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at March 31, 1998.
81
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
6. OPTIONS
During the period ended March 31, 1998, the following option contracts were
written:
GE Fixed GE Strategic
Income Fund Investment Fund
- --------------------------------------------------------------------------------
Number Number
of Contracts Premium of Contracts Premium
- --------------------------------------------------------------------------------
Balance as of
September
30, 1997 1,216 $ 5,267 403 $ 1,817
Written 11,740 41,058 6,220 21,732
Closed and
Expired (11,486) (41,960) (5,863) (21,293)
Exercised (0) (000) (0) (0)
- --------------------------------------------------------------------------------
Balance as of
March
31, 1998 1,470 $ 4,365 760 $ 2,256
- --------------------------------------------------------------------------------
GE Government
Securities Fund
- --------------------------------------
Number
of Contracts Premium
- --------------------------------------
Balance as of
September
30, 1997 0 $ 0
Written 47,170 161,538
Closed and
Expired (38,460) (135,680)
Exercised (0) (0)
- --------------------------------------
Balance as of
March
31, 1998 8,710 $ 25,858
7. 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, 1998, were as follows:
Purchases Sales
- --------------------------------------------------------------------------------
GE International
Equity Fund $ 35,293,767 $ 96,780,432
GE Global
Equity Fund 23,411,654 32,621,385
GE Premier Growth
Equity Fund 9,342,858 3,973,890
GE U.S. Equity Fund 67,035,691 58,437,130
GE Mid-Cap
Growth Fund 1,917,604 4,775,557
GE Value
Equity Fund 15,012,862 12,861,659
GE Strategic
Investment Fund 33,625,763 33,882,848
GE Tax-Exempt
Fund 9,862,942 23,504,678
GE Fixed Income Fund 12,784,112 7,936,938
GE Government
Securities Fund 45,589,554 33,668,410
GE Short-Term
Government Fund 4,322,632 2,868,692
The cost of purchases and the proceeds from sales of long term U.S. Government
securities for the period ended March 31, 1998, were as follows:
Purchases Sales
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $ 203,918 $ 1,082,986
GE Value Equity Fund 116,174 187,478
GE Strategic
Investment Fund 36,220,966 29,554,809
GE Fixed Income Fund 90,821,652 73,357,116
GE Government
Securities Fund 180,366,856 258,341,472
GE Short-Term
Government Fund 29,962,382 28,699,457
82
<PAGE>
Notes to Financial Statements March 31, 1998 (unaudited)
8. 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 3 41%
GE Global Equity Fund 2 27%
GE Premier Growth Equity Fund 3 42%
GE U.S. Equity Fund 3 20%
GE Mid-Cap Growth Fund 1 13%
GE Value Equity Fund 2 13%
GE Strategic Investment Fund 5 35%
GE Tax-Exempt Fund 1 18%
GE Fixed Income Fund 3 23%
GE Short-Term Government Fund 4 61%
At March 31, 1998, Employers Reinsurance Corporation, an indirect wholly-owned
subsidiary of General Electric Company, owned 18% of the shares outstanding of
the GE Tax-Exempt Fund; GE Capital Assurance Company, an indirect wholly-owned
subsidiary of General Electric Company, owned 27% and 21%, respectively, of the
shares outstanding of the GE Premier Growth Equity and GE Short-Term Government
Funds; GNA Corporation, a direct subsidiary of General Electric Capital
Corporation, owned 13%, 7%, and 26%, respectively, of the shares outstanding of
the GE Mid-Cap Growth, GE Value Equity and GE Short-Term Government Funds.
83
<PAGE>
GE Funds Investment Team
PORTFOLIO MANAGERS
GE International Equity Fund
Team led by
Ralph R. Layman
GE Global Equity Fund
Ralph R. Layman
Michael J. Solecki
GE Premier Growth Equity Fund
David B. Carlson
GE U.S. Equity Fund
Team led by
Eugene K. Bolton
GE Mid-Cap Growth Fund
Elaine G. Harris
GE Value Equity Fund
Peter J. Hathaway
GE Strategic Investment Fund
David B. Carlson
Ralph R. Layman
Robert A. MacDougall
GE Tax-Exempt Fund
Barbara A. Brinkley-
Brown Brothers Harriman & Co.
GE Fixed Income Fund
GE Government Securities Fund
GE Short-Term Government Fund
GE Money Market Fund
Team led by
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
ASSISTANT TREASURER
Robert J. Zalucki
DISTRIBUTOR
GE Investment Distributors, 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. Myers, 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
Thomas J. Szkutak, EVP, Chief Financial Officer
Don W. Torey, EVP, Alternative Investments and Real Estate
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Shareholder Inquiries
Class A, B and C Investors: For questions regarding the Funds or your account,
call your Investment Representative or the GE Funds Inquiry Center at
1-800-242-0134.
Address inquiries regarding the Funds to: GE Investment Management
3003 Summer Street
P.O. Box 7900
Stamford, CT 06904-7900
Address requests regarding your account(s) to: GE Funds
P.O. Box 419631
Kansas City, MO 64141-6631
Overnight express mail Address: GE Investment Management
c/o NFDS
1004 Baltimore Avenue
Kansas City, MO 64105
Class D Investors: Contact your designated GE Investments account representative
401(k) Plan Investors: Call your company's designated plan number.
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BULK RATE
U.S. POSTAGE
PAID
CANTON, MA
PERMIT NO. 313
INVESTMENT ADVISER
GE Investment Management Incorporated
3003 Summer Street
Stamford, CT 06905
DISTRIBUTOR
GE Investment Distributors, Inc.
Member NASD and SIPC
777 Long Ridge Road
Stamford, CT 06927
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GE FINANCIAL ASSURANCE
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