GE FUNDS
SEMI-ANNUAL REPORT
MARCH 31, 1999
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO FLIE.
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<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 U.S. EQUITY FUND ............................... 3
GE PREMIER GROWTH EQUITY FUND ..................... 8
GE VALUE EQUITY FUND .............................. 11
GE MID-CAP GROWTH FUND ............................ 16
GE MID-CAP VALUE EQUITY FUND ...................... 20
GE SMALL-CAP VALUE EQUITY FUND .................... 23
GE GLOBAL EQUITY FUND ............................. 27
GE INTERNATIONAL EQUITY FUND ...................... 32
GE EUROPE EQUITY FUND ............................. 37
GE EMERGING MARKETS FUND .......................... 41
GE STRATEGIC INVESTMENT FUND ...................... 46
GE INCOME FUNDS ................................... 56
[BULLET] GE FIXED INCOME FUND
[BULLET] GE GOVERNMENT SECURITIES FUND
[BULLET] GE SHORT-TERM GOVERNMENT FUND
GE TAX-EXEMPT FUND ................................ 70
GE HIGH YIELD FUND ................................ 75
GE MONEY MARKET FUND .............................. 80
NOTES TO PERFORMANCE .............................. 82
NOTES TO SCHEDULES OF INVESTMENTS ................. 84
FINANCIAL STATEMENTS
Financial Highlights .............................. 85
Notes to the Financial Highlights ................. 99
Statements of Assets and Liabilities, Operations,
and Changes in Net Assets .........................100
NOTES
Notes to the Financial Statements .................116
GE FUNDS' INVESTMENT TEAM ..............................128
SHAREHOLDER INQUIRIES ....................INSIDE BACK COVER
HIGHLY RATED GE FUNDS
MORNINGSTAR RATINGS(TM)
THROUGH MARCH 31, 1999
NUMBER OF STAR
FUND/CLASS FUNDS IN ITS CLASS RATINGS
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GE U.S. EQUITY (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 2947
Class A & B [star][star][star][star]
5 YEAR 1810
Class A & B [star][star][star][star]
Class C & D [star][star][star][star][star]
GE VALUE EQUITY (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 2947
Class A & B [star][star][star][star]
5 YEAR 1810
Class A & B [star][star][star][star]
GE STRATEGIC INVESTMENT (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 2947
Class D [star][star][star][star]
5 YEAR 1810
Class D [star][star][star][star]
GE INTERNATIONAL EQUITY (INTERNATIONAL EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 918
Class D [star][star][star][star]
5 YEAR 454
Class D [star][star][star][star]
GE GLOBAL EQUITY (INTERNATIONAL EQUITY)
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OVERALL AND 3 YEAR 918
Class B, C & D [star][star][star][star]
5 YEAR 454
Class B, C & D [star][star][star][star]
GE FIXED INCOME (TAXABLE BOND)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 1521
Class D [star][star][star][star]
5 YEAR 1048
Class D [star][star][star][star]
GE SHORT TERM GOVERNMENT (TAXABLE BOND)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 1521
Class B & C [star][star][star][star]
Class D [star][star][star][star][star]
5 YEAR 1048
Class B & C [star][star][star][star]
Class D [star][star][star][star][star]
Morningstar is an independent fund rating company that seeks to provide a
non-biased rating system used in making investment decisions. A fund is rated
in its broad asset class on a scale of one to five stars through the evaluation
of the historical balance of risk and return after 3 years of performance.
Morningstar proprietary ratings reflect historical risk-adjusted performance
through March 31, 1999. 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) and a risk factor
that reflects fund performance below 90-day T-bill returns. The top ten percent
of the funds in a broad asset class receive five stars, the next 22.5% receive
four stars and the next 35% receive three stars. Ratings are for the share
classes shown only; other classes may vary.
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.
- --------------------------------------------------------------------------------
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:
Markets continue their roller-coaster ride. The closely-watched S&P 500 Index,
which lost almost 20% of its value during August's global currency crisis, ended
1998 more than 28% ahead, and gained another 5% in the first quarter of 1999.
Our strategy of favoring stock
picks over sector bets paid off during this period of financial upheaval.
As stock prices rise and fall, the best course is to invest for the long term
and diversify to minimize risk. To make diversification easier, GE Mutual Funds
has added four new investment options: GE High Yield Fund for high current
income; two international equity funds, GE Europe Equity Fund and GE Emerging
Markets Fund; and GE Mid-Cap Value Equity Fund that seeks out undervalued
mid-sized U.S.
companies with growth potential.
You will find it even easier to manage your accounts online. Now you can
purchase and redeem shares, reorder money market checks and 1099 statements,
print out duplicate statements, and change your address online at the GE Mutual
Funds web site WWW.GE.COM/MUTUALFUNDS. Telephone service is also more convenient
with our Customer Service Center's expanded hours of 8:30 a.m. to 8:00 p.m. ET.
This tax season, many customers took advantage of our special weekend hours.
Look for other enhancements in the near future, including an upgraded voice
response system, and redesigned account statements which include additional
investment forms. These are just a few examples of our ongoing commitment to
upgrading customer service.
FUND HIGHLIGHTS
During the past six months, GE Funds continued to grow as cash flowed in from
investors. As of the end of April, the funds have more than $2 billion under
management. Although markets were volatile, several GE equity funds benefited.
Two of the funds significantly outperformed both their market benchmark and
Lipper peer averages, namely the GE Premier Growth Equity Fund which finished
the six months up over 33% and the GE Value Equity Fund which exceeded 28%. Some
of our other equity funds also turned in double digit performance which exceeded
20%, with the GE U.S. Equity Fund (up over 26%), GE GlobalEquity Fund (exceeded
28%), and GE International Equity Fund (over 20%). The GE Strategic Investment
Fund, a balanced portfolio, returned over 15%, and outperformed the average of
its Lipper peers for the six month, one year and five year time periods.
Fixed income securities were also affected by the volatile markets during the
past six months. However, the GE Government Securities Fund and the Money Market
fund still managed to outperform their market indices for the six-month period
and even the new GE High Yield Fund outperformed its market index for the three
months since its inception at December 31. The GE Fixed Income Fund and GE Money
Market Fund also outperformed their Lipper peer group averages for the six
months ended March 31, 1999. Average returns for all fund categories, and
complete details on each fund's performance, including adjustment for the effect
of sales charges, can be found in this report's fund performance profile pages.
Many of our funds continue to earn favorable ratings from Morningstar, an
independent fund ranking company that analyzes risk-adjusted performance.
Highly-rated funds are listed on the inside front cover of this report.
MARKET REVIEW
In 1998, U.S. equities returned more than 20% for the fourth consecutive year,
the first time this has ever happened. In fact, this is the best four year
period since 1932-1936 when the market was recovering from the 1929 crash. This
bull market shows no signs of letting up as we enter the second quarter of 1999.
[PHOTO OF MICHAEL J. COSGROVE OMITTED]
1
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A LETTER FROM THE PRESIDENT (CONTINUED)
An aging American population investing for retirement is one force propelling
the stock market higher. The U.S. economy, now in its ninth year of growth, is
another. Consumer spending is fueling the economic expansion, spurred by low
interest rates, strong job growth and low inflation. Strong economic growth
coupled with disinflation is very positive for the stock market.
MARKET OUTLOOK
Looking ahead, we believe the fundamentals that underpin market performance
remain sound. We will maintain our overweight position in European stocks. We
expect corporate consolidations and the recent adoption of a common currency to
create European companies with strong earnings potential. Parts of Asia appear
to be improving and some investors have started to put money back in Japan.
However, we do not think the Japanese economy has turned around yet. We wait
cautiously for signs of change.
We expect the U.S. economy to slow to a more sustainable growth rate in the
second half of 1999. Additionally, with less difficult global economic
conditions, U.S. corporate profits are poised to resume a modest growth
trajectory. Since it is likely that inflation will remain low, we do not believe
the U.S. Federal Reserve will alter current interest rate policy.
During periods of volatility, it is critical to maintain a well-diversified
portfolio. Although we do not expect equity returns to be what they have been in
the past few years, equities are still the best long-term investment if you need
growth of capital. Stock selection will be a major factor as the market broadens
to embrace value stocks and small- and mid-cap stocks. Fixed income investments
can provide modest capital growth as well as current income, and should provide
balance to your overall investment portfolio.
As markets rise and fall, the best advice is still to know your tolerance for
risk and focus on long-term objectives rather than short-term market
fluctuations.
YEAR 2000
On a final note, many shareholders have inquired about the impact the year 2000
(Y2K) problem may have with respect to their financial investments and
recordkeeping. The GE Funds' adviser, GE Investment Management Incorporated
(GEIM) has incorporated Y2K readiness capability into its analysis processes for
the investment portfolios. In addition, it has been engaged in a multi-year
effort to address Y2K date-related issues in a broad range of areas including
applications, process-enabling systems and facilities. GEIM also benefits from
the Y2K efforts of its parent, General Electric Company, which systematically
monitors the implementation of the Y2K programs of all GE businesses and
facilitates the sharing of best practices. With respect to third-party systems,
GEIM like many similar companies, must largely rely on the efforts and
affirmations of others; however, it will continue to work closely in partnership
with our most critical vendors, State Street Bank and Trust Company, the funds'
Custodian and National Financial Data Services, Inc., the funds' Transfer Agent.
Although the interaction of various software and hardware elements is highly
complex -- and the possibility of Y2K related problems cannot be totally
eliminated -- GEIM believes it is taking the appropriate steps.
Sincerely,
/S/SIGNATURE
Michael J. Cosgrove
MIKE COSGROVE IS THE PRESIDENT OF THE INVESTMENT SERVICES GROUP OF GE FINANCIAL
ASSURANCE HOLDINGS, INC., AND OF GE INVESTMENT DISTRIBUTORS, INC., THE FUNDS'
DISTRIBUTOR, AND SERVES AS A TRUSTEE OF THE GE PENSION TRUST AND GE'S EMPLOYEE
SAVINGS PROGRAM. PREVIOUSLY CHIEF FINANCIAL OFFICER OF GE INVESTMENTS AND
ASSISTANT TREASURER-GE COMPANY, MIKE JOINED GE IN 1970 AND HELD A NUMBER OF
MANAGERIAL POSITIONS IN FINANCE AND SALES IN THE INTERNATIONAL OPERATION AND IN
GE TRADING COMPANY. HE HAS A B.S. IN ECONOMICS FROM FORDHAM UNIVERSITY AND AN
M.B.A. FROM ST. JOHN'S UNIVERSITY.
2
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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 $35 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.
Q. HOW DID THE GE U.S. EQUITY FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM FOR
THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Standard & Poor's 500 Composite Price Index posted a 27.32% return for
the six-month period ended March 31, 1999. The fund's Lipper peer group of
974 Growth and Income funds returned 20.79% for the same period. To see how
your class of GE U.S. Equity Fund shares performed compared to its benchmark,
please refer to page 4.
Q. WHAT DROVE THE FUND'S PERFORMANCE?
A. The stock market remained quite narrow by historical standards. However, the
market did broaden out enough to make winners out of a number of our
holdings with good underlying fundamentals that fared poorly last year. Two
market sectors that performed well during the period were Consumer-Cyclical
and Financial.
Q. WHICH INVESTMENTS STAND OUT?
A. In the Retail Trade sector, Wal-Mart Stores; Dayton Hudson, and Lowes Cos.,
the home improvement retailer, benefited from ongoing consumer confidence
and low unemployment. Among financial stocks, credit card use and consumer
spending drove earnings at Citigroup and American Express, while Morgan
Stanley Dean Witter showed post-merger growth thanks to a rising stock
market and strong investment banking profits.
On the downside, the fund was underweighted in the technology sector, which
had very strong returns but contains a number of stocks selling at excessive
valuation levels. Among the technology stocks we own, those that performed
well during the period include bank services provider First Data
Corporation; EMC, a maker of computer storage products; and Sun
Microsystems, which produces computer workstations. It should be noted that
the fund performed well without holding any speculative internet stocks
which, in our opinion, are overvalued.
We believe the Capital Goods sector is being overlooked. The fund's holdings
include Emerson Electric, an electrical and electronic products
manufacturer; Dover, a diversified manufacturer; and Waste Management.
Q. PLEASE COMMENT ON ANY CHANGES YOU MADE IN THE PORTFOLIO.
A. Early in 1999, we made some changes to the portfolio's structure. We believe
that these changes should generate better returns without altering the fund's
basic investment objectives. The fund remains balanced between value and
growth stocks. The bulk of the fund's assets moved from utilizing four
portfolio managers to the two most senior managers. This resulted in a
portfolio that is more concentrated, with holdings declining from 250
companies to approximately 160. We also added a research portfolio component,
comprising about 15% of the fund. This component reflects the best ideas of
our research analysts, who have been managing a very successful broad
research portfolio for the past seven years. The fund uses a more
concentrated version of the research portfolio which approximates 60
companies. The goal is to amplify positions that the two portfolio managers
already own. This places more emphasis on stock selection, which has been our
strength historically, rather than sector allocation. We believe these
changes will set the stage for better performance going forward. We will
continue to focus on fundamental research and stock selection, with more
concentration in fewer stocks that we believe have the best potential to
outperform the market over the long term.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The U.S. economy's strong underpinnings are encouraging for the long term.
If the global economy picks up, inflation remains low and earning gains
broaden, we believe that the stock market should perform in line with
earnings growth over the next several years. In the short term, we expect
market volatility and smaller gains than in the past few years. We believe
the fund is well-positioned for both the short-term and the long-term.
[PHOTO OF GENE BOLTON OMITTED]
3
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GE U.S. EQUITY FUND
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TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
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Citigroup Inc. 3.38%
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Merck & Co. Inc. 2.65%
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Bristol-Myers Squibb Co. 2.27%
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International Business Machines 1.96%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 1.88%
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AlliedSignal Inc. 1.86%
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Microsoft Corp. 1.78%
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Federal National Mortgage Assoc. 1.75%
- --------------------------------------------------------------------------------
First Data Corp. 1.60%
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Dayton Hudson Corp. 1.57%
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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.
* LIPPER PERFORMANCE COMPARISON
GROWTH AND INCOME PEER
GROUP BASED ON AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of
Funds in
peer group: 974 907 361
Peer group
average annual
total return: 20.79% 6.83% 20.21%
Lipper categories
in peer group: GROWTH & INCOME,
S&P 500 INDEX
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
1/1/94 $10000.00 $10000.00 $10000.00
9526.45 8978.68 9618.15
9544.89 8996.06 9657.88
SEP-94 9913.90 9343.85 10132.90
9765.97 9204.43 10129.82
10668.97 10055.50 11116.13
11677.10 11005.67 12175.41
SEP-95 12542.98 11821.76 13145.54
13192.46 12433.89 13927.96
14032.09 13225.25 14685.15
14528.24 13692.87 15348.14
SEP-96 14846.29 13992.63 15818.40
16100.78 15174.99 17147.09
16424.34 15479.94 17594.16
19104.28 18005.78 20668.76
SEP-97 20700.99 19510.69 22223.07
21234.70 20013.70 22856.04
23721.99 22357.98 26047.04
24285.88 22889.45 26910.44
SEP-98 21814.00 20562.00 24248.24
26125.88 24626.48 29415.27
MAR-99 27556.28 25974.79 30872.63
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE U.S. Equity 26.32% 16.16% 23.67% 21.31%
GE U.S. Equity w/load 19.07% 9.50% 22.20% 19.95%
(maximum load-5.75%)
S&P 500 27.32% 18.53% 26.27% 23.96%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
12/22/93 $10000.00 $10000.00 $10000.00
10133.91 10133.91 10000.00
9647.78 9647.78 9618.15
9641.56 9641.56 9657.88
SEP-94 9990.57 9990.57 10132.90
9835.35 9835.35 10129.82
10728.90 10728.90 11116.13
11724.56 11724.56 12175.41
SEP-95 12579.81 12579.81 13145.54
13215.10 13215.10 13927.96
14022.58 14022.58 14685.15
14514.95 14514.95 15348.14
SEP-96 14816.93 14816.93 15818.40
16040.71 16040.71 17147.09
16345.27 16345.27 17594.16
18992.14 18992.14 20668.76
SEP-97 20558.50 20558.50 22223.07
21052.75 21052.75 22856.04
23492.61 23492.61 26047.04
24025.09 24025.09 26910.44
SEP-98 21545.00 21545.00 24248.24
25769.39 25769.39 29415.27
MAR-99 27153.91 27153.91 30872.63
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE U.S. Equity 26.03% 15.58% 22.99% 20.85%
GE U.S. Equity w/load 22.03% 11.58% 22.99% 20.85%
maximum load 4.0% 4.0% 0.0% 0.0%
S&P 500 27.32% 18.53% 26.27% 23.96%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY S&P 500
2/22/93 $10000.00 $10000.00
10519.58 10216.10
10681.52 10268.05
SEP-93 11032.38 10530.86
11218.84 10775.93
10701.37 10364.46
10715.17 10407.27
SEP-94 11129.16 10919.15
10973.84 10915.83
11991.38 11978.67
13136.11 13120.14
SEP-95 14118.31 14165.55
14865.82 15008.68
15797.66 15824.63
16387.34 16539.05
SEP-96 16758.61 17045.81
18180.62 18477.59
18560.23 18959.35
21597.06 22272.51
SEP-97 23422.39 23947.44
24036.96 24629.52
26873.73 28068.12
27522.89 28998.52
SEP-98 24739.00 26129.74
29642.41 31697.70
MAR-99 31294.61 33268.15
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE U.S. Equity 26.50% 16.45% 23.94% 20.55%
S&P 500 27.32% 18.53% 26.27% 21.83%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY S&P 500
11/29/93 $10000.00 $10000.00
10158.53 10123.40
9696.21 9736.84
9714.95 9777.06
SEP-94 10096.06 10257.94
9964.02 10254.82
10889.12 11253.31
11936.28 12325.65
SEP-95 12835.67 13307.76
13520.19 14099.83
14388.82 14866.37
14925.90 15537.53
SEP-96 15270.71 16013.60
16582.64 17358.68
16937.04 17811.27
19720.50 20923.81
SEP-97 21403.88 22497.30
21972.52 23138.08
24582.47 26368.45
25194.18 27242.51
SEP-98 22658.00 24248.24
27174.43 29415.27
MAR-99 28694.05 30872.63
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE U.S. Equity 26.64% 16.73% 24.23% 21.84%
S&P 500 27.32% 18.53% 26.27% 23.53%
4
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE U.S. EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 17.8%
FINANCIAL 16.1%
CONSUMER 14.8%
HEALTHCARE 14.1%
UTILITIES 8.7%
CAPITAL GOODS 8.4%
ENERGY 6.9%
RETAIL TRADE 5.8%
CASH & OTHER 3.6%+
TRANSPORTATION 2.0%
BASIC MATERIALS 1.8%
+INCLUDES CASH EQUALIZED BY FUTURES OF 2.0%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.9%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 1.8%
Air Products & Chemicals Inc. 53,900 $ 1,846,075
Airgas Inc. 34,019 284,909(a)
Barrick Gold Corp. 74,003 1,262,676
Du Pont de Nemours (E.I.) & Co. 58,539 3,398,921
Great Lakes Chemical Corp. 36,118 1,327,337
Morton International Inc. 37,955 1,394,846
Newmont Mining Corp. 71,794 1,256,395
Rayonier Inc. 22,422 898,281
11,669,440
CAPITAL GOODS -- 8.4%
AlliedSignal Inc. 246,639 12,131,556(h)
Deere & Co. 39,211 1,514,525
Dover Corp. 213,394 7,015,328(h)
Emerson Electric Co. 79,858 4,227,483
Gulfstream Aerospace Corp. 14,579 632,364(a)
Hubbell Inc. (Class B) 128,366 5,134,640
Lockheed Martin Corp. 28,718 1,082,310
Martin Marietta Materials Inc. 62,627 3,573,653
Masco Corp. 50,256 1,419,732
Molex Inc. (Class A) 79,484 2,056,648
Textron Inc. 73,120 5,657,660
United Technologies Corp. 25,846 3,500,518
Waste Management Inc. 150,220 6,666,012
54,612,429
[ICON OMITTED]
CONSUMER - CYCLICAL -- 8.5%
AT&T Corp. - Liberty Media
Group (Class A) 71,795 3,778,187(a)
Carnival Corp. (Class A) 37,554 1,823,716
Catalina Marketing Corp. 33,909 2,911,935(a)
Comcast Corp. (Class A) 96,425 6,068,748
Ford Motor Co. 26,509 1,504,386
Gannett Inc. 94,326 5,942,538
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Harman International
Industries Inc. 14,358 $ 527,657
Interpublic Group Cos. Inc. 83,060 6,468,297
Knight-Ridder Inc. 45,287 2,264,350
McDonald's Corp. 98,744 4,474,338
MediaOne Group Inc. 5,523 350,711(a)
NTL Inc. 74,025 6,023,784(a)
Stanley Works 14,027 359,442
Time Warner Inc. 34,572 2,456,773
Walt Disney Co. 121,939 3,795,351(h)
Xerox Corp. 126,135 6,732,456
55,482,669
CONSUMER - STABLE -- 6.3%
Anheuser Busch Cos. Inc. 72,400 5,515,975(h)
Avon Products Inc. 83,612 3,934,990
Bestfoods 29,822 1,401,634
Coca-Cola Co. 3,313 203,335
Colgate-Palmolive Co. 7,069 650,348
Conagra Inc. 33,136 847,039
General Mills Inc. 22,422 1,694,262
Gillette Co. 13,807 820,654
Kimberly Clark Corp. 6,623 317,490
Nestle S.A. (Regd.) 773 1,407,834
Pepsico Inc. 139,280 5,458,035
Philip Morris Cos. Inc. 127,241 4,477,293(h)
Procter & Gamble Co. 60,527 5,927,863
Ralston Purina Co. 114,207 3,047,899
Sara Lee Corp. 213,173 5,276,032
40,980,683
ENERGY -- 6.9%
Anadarko Petroleum Corp. 27,944 1,054,886
Baker Hughes Inc. 50,256 1,221,849
BP Amoco PLC ADR 13,838 1,396,780
Burlington Resources Inc. 77,206 3,083,415
Chevron Corp. 16,568 1,465,233
Exxon Corp. 136,520 9,633,192(h)
Halliburton Co. 81,735 3,146,797
Mobil Corp. 49,814 4,383,632
Nabors Industries Inc. 25,735 468,055(a)
Royal Dutch Petroleum Co. ADR 98,081 5,100,212
Schlumberger Ltd. 81,072 4,879,521
Texaco Inc. 26,509 1,504,386
Total S.A. ADR 33,689 2,055,029
Unocal Corp. 118,515 4,362,833
USX-Marathon Group 37,555 1,032,763
44,788,583
[ICON OMITTED]
FINANCIAL -- 11.4%
American Express Co. 86,154 10,123,095(h)
Associates First Capital
Corp. (Class A) 113,214 5,094,630
Bank of New York Inc. 38,106 1,369,434
BankAmerica Corp. 29,822 2,106,179
BankBoston Corp. 15,463 669,741
Chase Manhattan Corp. 45,285 3,682,237
Citigroup Inc. 345,605 22,075,519
Countrywide Credit Industries 10,051 376,912
Federal National Mortgage Assoc. 165,016 11,427,358
First Union Corp. 35,345 1,888,748
Morgan Stanley Dean Witter & Co. 73,781 7,373,489
- -----------
See Notes to Schedules of Investments and Financial Statements.
5
<PAGE>
GE U.S. EQUITY FUND MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
National City Corp. 43,629 $ 2,895,875
State Street Corp. 30,617 2,516,335(e)
United States Bancorp. 44,844 1,527,499
Wells Fargo & Co. 41,089 1,440,683
74,567,734
[ICON OMITTED]
HEALTHCARE -- 14.1%
Abbott Laboratories 160,598 7,517,994
Allergan Inc. 42,965 3,775,549
American Home Products Corp. 68,923 4,497,226(h)
AmeriSource Health Corp.
(Class A) 20,747 709,288(a)
Amgen Inc. 33,136 2,481,058(a)
Bristol-Myers Squibb Co. 230,624 14,832,006
Cardinal Health Inc. 133,206 8,791,596
Dentsply International Inc. 29,878 694,663
Eli Lilly & Co. 6,627 562,467
Henry Schein Inc. 33,691 850,698(a)
Johnson & Johnson 96,204 9,013,112
Lincare Holdings Inc. 48,047 1,351,322(a)
Merck & Co. Inc. 215,383 17,271,024
Omnicare Inc. 30,377 579,061
Pfizer Inc. 34,349 4,765,924
Pharmacia & Upjohn Inc. 66,271 4,133,654
Schering Plough Corp. 66,271 3,665,615
Shire Pharmaceuticals Group
PLC ADR 11,917 271,857(a)
Sybron International Corp. 69,587 1,739,675(a)
Warner-Lambert Co. 13,255 877,315
Watson Pharmaceuticals Inc. 86,705 3,825,858(a)
92,206,962
INSURANCE -- 4.7%
American International
Group Inc. 51,251 6,182,092
Berkshire Hathaway Inc.
(Class B) 3,224 7,579,624(a)
Hartford Financial Services
Group Inc. 46,943 2,666,949
Lincoln National Corp. 29,822 2,948,650
Loews Corp. 39,763 2,967,314
Marsh & McLennan Cos. Inc. 29,602 2,196,098
Provident Cos. Inc. 59,093 2,042,402
Reliastar Financial Corp. 69,500 2,962,437
St. Paul Cos. Inc. 28,607 888,605
UNUM Corp. 7,180 341,499
30,775,670
RETAIL TRADE -- 5.8%
Costco Cos. Inc. 29,822 2,730,577(a)
CVS Corp. 12,150 577,125
Dayton Hudson Corp. 153,528 10,228,803
Federated Department
Stores Inc. 54,122 2,171,645(a)
Home Depot Inc. 90,460 5,631,135
Lowes Cos. Inc. 96,094 5,813,687
Sears Roebuck & Co. 37,554 1,696,971
Wal-Mart Stores Inc. 97,198 8,960,441
37,810,384
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 9.8%
Analog Devices Inc. 112,883 $ 3,358,269(a)
Applied Materials Inc. 41,420 2,555,096(a)
Cisco Systems Inc. 112,108 12,282,833(a)
Gateway 2000 Inc. 29,822 2,044,671(a)
Hewlett Packard Co. 46,500 3,153,281
Intel Corp. 73,561 8,744,564
International Business Machines 72,015 12,764,659
Northern Telecom Ltd. 123,708 7,685,360
Pitney Bowes Inc. 46,059 2,936,261
Sun Microsystems Inc. 66,712 8,343,169(a)
63,868,163
TECHNOLOGY - SOFTWARE & SERVICES -- 7.5%
Automatic Data Processing Inc. 138,839 5,744,464
Computer Sciences Corp. 40,868 2,255,403
EMC Corp. 69,585 8,889,484(a)
Equifax Inc. 182,799 6,283,715
First Data Corp. 244,100 10,435,275
Microsoft Corp. 129,230 11,582,239(a)
Reuters Holdings PLC ADR 28,385 2,465,947
Unisys Corp. 58,540 1,620,826(a)
49,277,353
TRANSPORTATION -- 2.0%
Burlington Northern Santa Fe Corp. 125,473 4,124,925
Canadian Pacific Ltd. 67,377 1,309,640
Continental Airlines Inc.
(Class B) 85,380 3,244,440(a)
Delta Air Lines Inc. 64,062 4,452,309
Pittston Brinks Group 3,312 77,832
13,209,146
[ICON OMITTED]
UTILITIES -- 8.7%
Airtouch Communications Inc. 50,879 4,916,183(a)
American Electric Power Inc. 33,136 1,315,085
AT&T Corp. 71,824 5,732,453
Bell Atlantic Corp. 75,107 3,882,093
Bellsouth Corp. 16,568 663,756
CMS Energy Corp. 76,262 3,055,246
Duke Energy Corp. 44,844 2,449,603
Edison International 66,272 1,474,552
El Paso Energy Corp. 22,090 722,067
Florida Progress Corp. 35,345 1,334,274
FPL Group Inc. 30,376 1,617,522
Frontier Corp. 34,793 1,804,887
GTE Corp. 91,124 5,513,002
MCI WorldCom Inc. 38,658 3,423,649(a)
New Century Energies Inc. 54,121 1,843,497
Northern States Power Co. 37,333 865,659
Qwest Communications
International Inc. 12,702 915,735(a)
SBC Communications Inc. 179,375 8,453,047
Sonat Inc. 11,045 331,350
Sprint Corp. 18,777 1,842,493
Texas Utilities Co. 38,658 1,611,555
U.S. WEST Inc. 51,914 2,858,515
56,626,223
TOTAL COMMON STOCK
(COST $483,430,538) 625,875,439
- ------------
See Notes to Schedules of Investments and Financial Statements.
6
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), 2.75%
(COST $3,024,886) 32,362 $ 3,187,657
TOTAL INVESTMENTS IN SECURITIES
(COST $486,455,424) 629,063,096
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund 23,811,209 23,811,209
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TIME DEPOSIT
State Street Cayman Islands
4.875% 04/01/99 $485,000 485,000
TOTAL SHORT-TERM INVESTMENTS
(COST $24,296,209) 24,296,209
OTHER ASSETS AND LIABILITIES,
NET (0.1)% (924,863)
------------
NET ASSETS-- 100% $652,434,442
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long Futures
Contracts open at March 31, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 June 1999 41 $13,256,325 $(166,663)
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE U.S. EQUITY FUND AT MARCH 31, 1999.
- --------
See Notes to Schedules of Investments and Financial Statements.
7
<PAGE>
GE PREMIER GROWTH EQUITY FUND
Q&A
DAVID CARLSON MANAGES PENSION AND MUTUAL FUND PORTFOLIOS WITH TOTAL ASSETS
EXCEEDING $6 BILLION. DAVE JOINED GE IN 1980 WITH 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 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 BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Standard & Poor's Index of 500 Composite Price Stocks posted a 27.32%
return for the six-month period ended March 31, 1999. The fund's Lipper peer
group of 1,105 Growth funds returned 28.23% for the same period. To see how
your class of shares of the GE Premier Growth Equity Fund performed compared
to its benchmark, please refer to page 9.
Q. ALL CLASSES OF THE FUND OUTPERFORMED THEIR BENCHMARK. WHAT FACTORS AFFECTED
PERFORMANCE?
A. With only 32 stocks in the fund, stock selection is the key driver to
performance. Technology issues continued to be strong performers. Three of
the funds technology stocks had gains of 75% or more for the six-month
period; specifically, Applied Materials (semiconductor equipment), EMC
(computer storage), and Cisco Systems (networking equipment).
Telecommunications stocks also had sizable gains. NTL, a telecom company
operating in the United Kingdom and MCIWorldCom each returned more than 80%
for the six month period.
Three of the fund's healthcare services companies had weaker performances
for various reasons. Omnicare, which manages pharmacies for nursing homes,
was affected by investor concerns about Medicare reimbursement charges.
Returns for Lincare Holdings, a home health care provider, and Henry Schein,
a healthcare equipment distributor new to the fund, were affected by news
specific to each company.
Q. DOES THE FUND OWN ANY INTERNET STOCKS?
A. Unfortunately, we currently do not own any yet. We are searching hard for
opportunities with values we can understand. We believe the internet will
profoundly change business and will create many investment opportunities in
the years to come. Our technology holdings such as Cisco, EMC and Microsoft
will continue to benefit from the growth of the internet.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We are optimistic about the long-term prospects of the stocks in the fund.
We believe we have assembled a group of 32 premier companies whose earnings
will grow at rates well above market averages. We do have some concern about
the overall level and valuation of the market. Looking ahead, investors
should expect much more modest rates of return from the stock market than
those we have enjoyed in recent years. As always, we will focus on quality
growth stocks with reasonable valuation levels and let the compounding of
above-average growth rates drive the performance over the long term.
[PHOTO OF DAVID CARLSON OMITTED]
8
<PAGE>
GE PREMIER GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
EMC Corp. 4.29%
- --------------------------------------------------------------------------------
First Data Corp. 4.18%
- --------------------------------------------------------------------------------
MCI WorldCom Inc. 4.10%
- --------------------------------------------------------------------------------
NTL Inc. 3.97%
- --------------------------------------------------------------------------------
Catalina Marketing Corp. 3.97%
- --------------------------------------------------------------------------------
Microsoft Corp. 3.92%
- --------------------------------------------------------------------------------
AT&T Corp.- Liberty Media Group 3.90%
- --------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 3.40%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 3.38%
- --------------------------------------------------------------------------------
Citigroup Inc. 3.28%
- --------------------------------------------------------------------------------
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.
* LIPPER PERFORMANCE COMPARISON
GROWTH PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/99
Six One
Months Year
Number of Funds
in peer group: 1,105 1,022
Peer group
average annual
total return: 28.23% 13.56%
Lipper categories
in peer group: GROWTH
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE PREMIER FUND GE PREMIER FUND W/LOAD S&P 500
12/31/96 $10000.00 $10000.00 $10000.00
MAR-97 9526.66 8978.88 10260.73
11013.32 10380.06 12053.80
SEP-97 12206.66 11504.77 12960.26
12612.02 11886.83 13329.40
MAR-98 14244.41 13425.35 15190.35
14799.82 13948.83 15693.88
SEP-98 13804.14 13010.40 14141.85
17034.47 16050.07 17154.67
MAR-99 18519.06 17448.87 18004.59
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Premier
Growth Equity 34.16% 30.01% 31.52%
GE Premier Growth
Equity w/load 26.46% 22.55% 28.08%
(maximum load-5.75%)
S&P 500 27.32% 18.53% 29.92%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE PREMIER FUND GE PREMIER FUND W/LOAD S&P 500
12/31/96 $10000.00 $10000.00 $10000.00
MAR-97 9513.33 9513.33 10260.73
10986.67 10986.67 12053.80
SEP-97 12166.67 12166.67 12960.26
12552.07 12552.07 13329.40
MAR-98 14157.49 14157.49 15190.35
14692.63 14692.63 15693.88
SEP-98 13683.31 13683.31 14141.85
16866.23 16866.23 17154.67
MAR-99 18316.48 18116.48 18004.59
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Premier
Growth Equity 33.86% 29.38% 30.87%
GE Premier Growth
Equity w/load 29.86% 25.38% 30.24%
maximum load 4.0% 4.0% 3.0%
S&P 500 27.32% 18.53% 29.92%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE Premier Fund S&P 500
12/31/96 $10000.00 $10000.00
Mar-97 9533.32 10260.73
11033.32 12053.80
Sep-97 12233.32 12960.26
12645.51 13329.40
Mar-98 14294.04 15190.35
14863.91 15693.88
Sep-98 13866.65 14141.85
17120.96 17154.67
Mar-99 18630.41 8004.59
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Premier
Growth Equity 34.35% 30.34% 31.87%
S&P 500 27.32% 18.53% 29.92%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE PREMIER FUND S&P 500
12/31/96 $10000.00 $10000.00
MAR-97 9539.99 10260.73
11039.99 12053.80
SEP-97 12253.32 12960.26
12676.35 13329.40
MAR-98 14333.92 15190.35
14918.15 15693.88
SEP-98 13926.32 14141.85
17208.05 17154.67
MAR-99 18729.08 18004.59
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Premier
Growth Equity 34.49% 30.66% 32.18%
S&P 500 27.32% 18.53% 29.92%
9
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE PREMIER GROWTH EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 27.0%
CONSUMER 20.3%
HEALTHCARE 16.6%
CAPITAL GOODS 10.8%
UTILITIES 7.3%
CASH & OTHER 6.2%+
ENERGY 5.3%
FINANCIAL 3.3%
RETAIL TRADE 3.2%
+Includes cash equalized by futures of 1.5%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 93.8%
- --------------------------------------------------------------------------------
[ICON OMITTED]
CAPITAL GOODS -- 10.8%
AlliedSignal Inc. 32,136 $ 1,580,689
Dover Corp. 49,811 1,637,537
Molex Inc. (Class A) 61,059 1,579,902(h)
Waste Management Inc. 43,384 1,925,165
6,723,293
[ICON OMITTED]
CONSUMER - CYCLICAL -- 18.0%
AT&T Corp. - Liberty Media
Group (Class A) 46,276 2,435,274(a)
Carnival Corp. (Class A) 35,350 1,716,684
Catalina Marketing Corp. 28,923 2,483,763(a)
Interpublic Group Cos. Inc. 27,316 2,127,234
NTL Inc. 30,529 2,484,297(a)
11,247,252
CONSUMER - STABLE -- 2.3%
Avon Products Inc. 30,529 1,436,771
ENERGY -- 5.3%
Baker Hughes Inc. 80,341 1,953,290
Schlumberger Ltd. 22,495 1,353,918
3,307,208
FINANCIAL -- 3.3%
Citigroup Inc. 32,136 2,052,687
[ICON OMITTED]
HEALTHCARE -- 16.6%
Cardinal Health Inc. 24,102 1,590,732
Dentsply International Inc. 46,597 1,083,380(h)
Henry Schein Inc. 49,508 1,250,077(a)
Johnson & Johnson 17,836 1,671,010
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Lincare Holdings Inc. 59,224 $ 1,665,675(a)
Omnicare Inc. 67,486 1,286,452
Sybron International Corp. 72,306 1,807,650(a)
10,354,976
RETAIL TRADE -- 3.2%
CVS Corp. 683 32,442
Home Depot Inc. 32,136 2,000,466
2,032,908
[ICON OMITTED]
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 9.0%
Applied Materials Inc. 27,316 1,685,056(a)
Cisco Systems Inc. 19,282 2,112,584(a)
Intel Corp. 15,265 1,814,627
5,612,267
[ICON OMITTED]
TECHNOLOGY - SOFTWARE & SERVICES -- 18.0%
Automatic Data Processing Inc. 40,492 1,675,357
EMC Corp. 20,964 2,678,151(a)
Equifax Inc. 53,025 1,822,734
First Data Corp. 61,059 2,610,272(h)
Microsoft Corp. 27,316 2,448,197(a)
11,234,711
UTILITIES -- 7.3%
Airtouch Communications Inc. 20,889 2,018,401(a)
MCI WorldCom Inc. 28,923 2,561,493(a)
4,579,894
TOTAL INVESTMENTS IN SECURITIES
(COST $45,746,178) 58,581,967
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $3,328,631) 3,328,631 3,328,631
OTHER ASSETS AND LIABILITIES,
NET 0.9% 579,345
-----------
NET ASSETS-- 100% $62,489,943
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following long Futures Contracts open
at March 31, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 June 1999 3 $969,975 $(17,175)
- ---------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE PREMIER GROWTH EQUITY FUND AT MARCH 31, 1999.
10
<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 $8 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 HELD
INVESTMENT POSITIONS AT MERRILL LYNCH, EQUITABLE LIFE AND US TRUST. HE HOLDS AN
M.B.A. 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 BENCHMARK AND LIPPER PEERS PERFORM FOR THE
SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The S&P/Barra Value Composite Index of 500 value stocks posted a 20.78%
return for the six-month period ended March 31, 1999. The fund's Lipper peer
group of 974 Growth and Income funds returned 20.79% for the same period. To
see how your class of GE Value Equity Fund shares performed compared to its
benchmark, please refer to page 12.
Q. THE FUND HAS OUTPERFORMED ITS BENCHMARK. WHY?
A. While we were underweighted in some of the market's growth areas as measured
by the S&P 500 Index, good stock selection in technology and pharmaceuticals
helped the fund's performance in this growth market. We seek to find
companies that consistently deliver on earnings and whose stock is
reasonably priced.
Q. WHICH INVESTMENTS STAND OUT?
A. We were helped by our overweights in airlines and energy but hurt by
overweightings in foods and utilities. The healthy U.S. economy aided
retailers such as Wal-Mart Stores and Dayton Hudson, whose Target stores
have done well. Retailers Home Depot and Lowes Cos. benefited from a strong
housing market. Rising oil prices gave a boost to energy stocks such as
Halliburton, Unocal and Mobil, where we have large positions.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND?
A. We continue to take profits in stocks with higher valuations and focus on
selected cyclical, healthcare, financial and utility stocks. As a defensive
move against an economic slowdown, the fund increased its positions in food
companies and electric utilities.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We expect market volatility to continue and believe certain areas, such as
large market capitalization growth and internet stocks, seem significantly
overvalued. What we find attractive in this market are overlooked capital
goods companies such as Emerson Electric, which have consistent long-term
growth records and are relatively good values. In technology, computer
companies may face slowing sales as customers grapple with Year 2000
concerns. We are switching our emphasis to service companies, such as
Automatic Data Processing and Unisys, whose revenues depend on solutions, not
hardware sales. In an overvalued market, we will continue to plan for the
long term and search out stocks with good growth prospects at reasonable
prices in industries, such as electric utilities, finance and healthcare.
Stock selection remains very important. We believe the fund is well
positioned and we are maintaining our disciplined, research-driven approach
to selecting stocks that we believe will outperform the market.
[PHOTO OF PETER J. HATHAWAY OMITTED]
11
<PAGE>
GE VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Citigroup Inc. 2.75%
- --------------------------------------------------------------------------------
International Business Machines 2.57%
- --------------------------------------------------------------------------------
Merck & Co. Inc. 2.53%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2.29%
- --------------------------------------------------------------------------------
Wal-Mart Stores Inc. 2.13%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 1.97%
- --------------------------------------------------------------------------------
Dayton Hudson Corp. 1.88%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.62%
- --------------------------------------------------------------------------------
American Express Co. 1.61%
- --------------------------------------------------------------------------------
Sun Microsystems Inc. 1.51%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
and future income by investing primarily in equity securities of companies
with large-sized market capitalizations that the Fund's management
considers to be undervalued by the
market.
* LIPPER PERFORMANCE COMPARISON
GROWTH AND INCOME PEER
GROUP BASED ON AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 974 907 361
Peer group
average annual
total return: 20.79% 6.83% 20.21%
Lipper categories
in peer group: GROWTH & INCOME,
S&P 500 INDEX
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 $10000.00 $10000.00 $10000.00
10141.36 9558.23 10041.89
9573.86 9023.37 9714.00
9594.86 9043.16 9803.34
SEP-94 9925.18 9354.48 10054.67
9972.20 9398.80 9979.02
10731.37 10114.31 10940.99
11517.08 10854.85 11893.55
SEP-95 12288.84 11582.23 12839.03
12919.10 12176.25 13669.45
13491.08 12715.34 14543.03
13986.04 13181.85 14841.62
SEP-96 14770.05 13920.77 15232.85
15843.18 14932.19 16674.41
16253.70 15319.11 16969.02
19568.30 18443.12 19423.90
SEP-97 20647.82 19460.57 21203.35
21087.90 19875.35 21673.40
23729.39 22364.95 24177.39
24345.74 22945.86 24302.52
SEP-98 21858.00 20601.48 21164.40
26212.01 24697.24 24844.60
MAR-99 27331.79 25752.31 25552.22
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Value Equity 25.04% 15.18% 23.34% 19.82%
GE Value Equity
w/load 17.80% 8.54% 21.91% 18.54%
(maximum load-5.75%)
S&P 500/Barra Value 20.78% 5.73% 21.35% 18.30%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 $10000.00 $10000.00 $10000.00
10146.82 10146.82 10041.89
9555.57 9555.57 9714.00
9560.91 9560.91 9803.34
SEP-94 9873.06 9873.06 10054.67
9901.68 9901.68 9979.02
10625.67 10625.67 10940.99
11383.23 11383.23 11893.55
SEP-95 12139.56 12139.56 12839.03
12724.23 12724.23 13669.45
13268.08 13268.08 14543.03
13732.38 13732.38 14841.62
SEP-96 14461.66 14461.66 15232.85
15490.47 15490.47 16674.41
15862.84 15862.84 16969.02
19065.19 19065.19 19423.90
SEP-97 20078.03 20078.03 21203.35
20474.92 20474.92 21673.40
23007.23 23007.23 24177.39
23569.96 23569.96 24302.52
SEP-98 21146.00 21146.00 21164.40
25304.60 25304.60 24844.60
MAR-99 26358.96 26358.96 25552.22
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Value Equity 24.65% 14.57% 22.50% 19.04%
GE Value Equity
w/load 20.65% 10.57% 22.41% 19.04%
maximum load 4.0% 4.0% 1.0% 0.0%
S&P 500/Barra Value 20.78% 5.73% 21.25% 18.30%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY S&P 500/BARRA VALUE
10/2/97 $10000.00 $10000.00
OCT-97 9510.00 9548.00
NOV-97 9896.40 9911.78
DEC-97 10122.11 10132.02
JAN-98 10174.19 10007.09
FEB-98 10868.68 10757.72
MAR-98 11406.90 11302.60
APR-98 11597.89 11436.42
MAY-98 11406.90 11275.51
JUN-98 11702.06 11361.09
JUL-98 11545.54 11114.56
AUG-98 9931.48 9327.34
SEP-98 10521.41 9894.07
OCT-98 11405.54 10763.49
NOV-98 12068.53 11324.16
DEC-98 12620.19 11721.87
JAN-99 12911.17 11958.65
FEB-99 12674.07 11701.18
MAR-99 13159.05 12055.72
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Value Equity 25.15% 15.37% 20.14%
S&P 500/Barra Value 20.78% 5.73% 13.29%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY S&P 500/BARRA VALUE
1/5/98 $10000.00 $10000.00
JAN-98 10010.00 9865.30
FEB-98 10700.00 10605.30
MAR-98 11240.00 11142.45
APR-98 11430.00 11274.38
MAY-98 11240.00 11115.75
JUN-98 11540.00 11200.12
JUL-98 11379.59 10957.08
AUG-98 9789.86 9195.18
SEP-98 10380.19 9753.88
OCT-98 11260.00 10530.05
NOV-98 11910.00 11078.56
DEC-98 12447.54 11467.64
JAN-99 12749.61 11699.29
FEB-99 12510.04 11447.40
MAR-99 12999.61 11794.26
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Value Equity 25.24% 15.65% 23.65%
S&P 500/Barra Value 20.78% 5.73% 14.15%
12
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE VALUE EQUITY FUND
[PIE CHART OMITTED]
FINANCIAL 17.6%
TECHNOLOGY 17.9%
CONSUMER 13.0%
HEALTHCARE 12.2%
UTILITIES 9.8%
CAPITAL GOODS 8.2%
ENERGY 7.5%
RETAIL TRADE 7.3%
TRANSPORTATION 3.1%
BASIC MATERIALS 2.3%
CASH & OTHER 1.1%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.3%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 2.3%
Avery Dennison Corp. 2,416 $ 138,920
Barrick Gold Corp. 13,898 237,135
Champion International Corp. 2,455 100,808
Du Pont de Nemours (E.I.)
& Co. 11,000 638,687
Freeport McMoran Copper &
Gold Inc. (Class B) 4,557 49,557
Mead Corp. 4,812 147,969
Monsanto Co. 1,423 66,170
Newmont Mining Corp. 13,477 235,847
Rayonier Inc. 4,207 168,543
Weyerhaeuser Co. 587 32,579
1,816,215
[ICON OMITTED]
CAPITAL GOODS -- 8.2%
AlliedSignal Inc. 19,884 978,044(h)
Cooper Industries Inc. 2,337 99,615
Deere & Co. 7,362 284,357
Dover Corp. 15,621 513,540(h)
Emerson Electric Co. 12,910 683,423(h)
Gulfstream Aerospace Corp. 2,277 98,765(a)
Honeywell Inc. 828 62,773
Hubbell Inc. (Class B) 10,383 415,320
Lockheed Martin Corp. 5,378 202,683
Martin Marietta Materials Inc. 9,750 556,359
Masco Corp. 9,431 266,426
Parker Hannifin Corp. 4,030 138,028
Sherwin-Williams Co. 3,207 90,197
Textron Inc. 11,954 924,941
Timken Co. 2,001 32,516
United Technologies Corp. 3,797 514,256
Waste Management Inc. 10,587 469,798
6,331,041
CONSUMER - CYCLICAL -- 6.2%
ACNielsen Corp. 2,606 70,688(a)
AT&T Corp. - Liberty Media
Group (Class A) 621 32,680(a)
Comcast Corp. (Class A) 3,939 247,911
Ford Motor Co. 4,971 282,104
Gannett Inc. 9,848 620,424
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 2,002 $ 99,725
Interpublic Group Cos. Inc. 6,318 492,014
Knight-Ridder Inc. 8,494 424,700
McDonald's Corp. 18,546 840,365
McGraw Hill Cos. Inc. 1,168 63,656
MediaOne Group Inc. 1,036 65,786(a)
Time Warner Inc. 2,589 183,981
Walt Disney Co. 12,062 375,430
Xerox Corp. 17,844 952,423
4,751,887
CONSUMER - STABLE -- 6.8%
Anheuser Busch Cos. Inc. 7,264 553,426(h)
Archer-Daniels Midland Co. 10,266 150,782
Avon Products Inc. 4,368 205,569
Bestfoods 5,594 262,918
Colgate-Palmolive Co. 1,393 128,156
Conagra Inc. 6,224 159,101
General Mills Inc. 4,207 317,891
Kimberly Clark Corp. 1,400 67,113
Nestle S.A. (Regd.) 140 254,976
Pepsico Inc. 14,323 561,283(h)
Philip Morris Cos. Inc. 15,559 547,482
Procter & Gamble Co. 6,848 670,676
Ralston Purina Co. 14,512 387,289
Sara Lee Corp. 34,014 841,847
Sysco Corp. 5,613 147,692
5,256,201
ENERGY -- 7.5%
Anadarko Petroleum Corp. 2,209 83,390
BP Amoco PLC ADR 2,598 262,201
Burlington Resources Inc. 11,398 455,208(h)
Chevron Corp. 3,105 274,598
Conoco Inc. (Class A) 4,143 101,762
Exxon Corp. 15,424 1,088,356
Halliburton Co. 11,821 455,109
Mobil Corp. 9,348 822,624
Royal Dutch Petroleum Co. ADR 9,957 517,764
Schlumberger Ltd. 5,388 324,290
Texaco Inc. 4,987 283,012
Total S.A. ADR 3,733 227,713
Unocal Corp. 18,361 675,914
USX-Marathon Group 2,209 60,748
YPF S.A. ADR (Class D) 4,044 127,639
5,760,328
[ICON OMITTED]
FINANCIAL -- 12.3%
American Express Co. 10,585 1,243,738
AmSouth Bancorp. 2,571 116,981
Associates First Capital Corp.
(Class A) 15,554 699,930
Bank of New York Inc. 4,023 144,577
BankAmerica Corp. 5,599 395,429
BankBoston Corp. 2,907 125,909
Chase Manhattan Corp. 4,766 387,535
Citigroup Inc. 33,269 2,125,057
Comerica Inc. 2,104 131,369
Edwards A.G. Inc. 3,884 126,958
Federal National Mortgage Assoc. 18,021 1,247,954
First Union Corp. 6,641 354,879
Fleet Financial Group Inc. 4,310 162,164
Morgan Stanley Dean Witter & Co. 10,792 1,078,526
- -------
See Notes to Schedules of Investments and Financial Statements.
13
<PAGE>
GE VALUE EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
National City Corp. 4,982 $ 330,680
T. Rowe Price & Associates 2,918 100,306
United States Bancorp. 8,420 286,806
Wachovia Corp. 1,869 151,739
Waddell & Reed Financial Inc.
(Class A) 5,450 111,725
Wells Fargo & Co. 4,057 142,249
9,464,511
[ICON OMITTED]
HEALTHCARE -- 12.2%
Abbott Laboratories 14,839 694,651(h)
Allergan Inc. 5,393 473,910
American Home Products Corp. 6,076 396,459(h)
AmeriSource Health Corp.
(Class A) 3,890 132,989(a)
Amgen Inc. 6,226 466,172(a)
Baxter International Inc. 1,140 75,240
Bristol-Myers Squibb Co. 27,438 1,764,606(h)
Cardinal Health Inc. 8,763 578,358
Johnson & Johnson 9,551 894,809
Merck & Co. Inc. 24,309 1,949,278
Pfizer Inc. 2,386 331,058
Pharmacia & Upjohn Inc. 9,339 582,520
Schering Plough Corp. 12,454 688,862
Warner-Lambert Co. 1,346 89,088
Watson Pharmaceuticals Inc. 6,231 274,943(a)
9,392,943
INSURANCE -- 5.3%
American International
Group Inc. 4,872 587,685
AXA-UAP 1,169 155,217
Berkshire Hathaway Inc.
(Class B) 441 1,036,791(a)
Chicago Title Corp. 98 3,565
Chubb Corp. 1,242 72,734
Hartford Financial Services
Group Inc. 4,985 283,210
Jefferson-Pilot Corp. 897 60,772
Lincoln National Corp. 5,610 554,689
Loews Corp. 4,257 317,678
Progressive Corp. 1,004 144,074
Provident Cos. Inc. 11,097 383,540
Reliastar Financial Corp. 7,070 301,359
St. Paul Cos. Inc. 5,374 166,930
4,068,244
RETAIL TRADE -- 7.3%
Costco Cos. Inc. 5,609 513,574(a)
Dayton Hudson Corp. 21,736 1,448,161(h)
Federated Department
Stores Inc. 6,230 249,979(a)
Home Depot Inc. 11,206 697,573
Lowes Cos. Inc. 9,952 602,096
Office Depot Inc. 1,967 72,410(a)
Rite Aid Corp. 2,804 70,100
Sears Roebuck & Co. 7,062 319,114
Wal-Mart Stores Inc. 17,838 1,644,441(h)
5,617,448
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 11.7%
Analog Devices Inc. 13,262 $ 394,545(a)
Applied Materials Inc. 5,906 364,326(a)
Cisco Systems Inc. 13,901 1,523,028 (a,h)
EG & G Inc. 3,519 92,814
Gateway 2000 Inc. 5,511 377,848(a)
Hewlett Packard Co. 7,477 507,034
Intel Corp. 9,353 1,111,838
International Business Machines 11,187 1,982,896
Northern Telecom Ltd. 17,007 1,056,560
Perkin Elmer Corp. 599 58,140
Pitney Bowes Inc. 5,274 336,218
Sun Microsystems Inc. 9,330 1,166,833(a)
Texas Instruments Inc. 725 71,956
9,044,036
TECHNOLOGY - SOFTWARE & SERVICES -- 5.6%
Automatic Data Processing Inc. 11,717 484,791
Computer Sciences Corp. 7,673 423,454
Electronic Data Systems Corp. 1,035 50,392
EMC Corp. 7,668 979,587(a)
Equifax Inc. 11,516 395,862
First Data Corp. 20,114 859,873
Microsoft Corp. 9,120 817,380(a)
Unisys Corp. 10,977 303,926(a)
4,315,265
TRANSPORTATION -- 3.1%
Burlington Northern Santa Fe 21,240 698,265
Canadian Pacific Ltd. 12,651 245,904
Continental Airlines Inc. (Class B) 14,006 532,228(a)
Delta Air Lines Inc. 12,024 835,668
FDX Corp. 567 52,624(a)
2,364,689
[ICON OMITTED]
UTILITIES -- 9.8%
Airtouch Communications Inc. 21 2,029(a)
Alltel Corp. 725 45,222
American Electric Power Inc. 6,221 246,896(h)
AT&T Corp. 13,476 1,075,553
Bell Atlantic Corp. 9,965 515,066(h)
Bellsouth Corp. 3,115 124,795
CMS Energy Corp. 10,787 432,154
Duke Energy Corp. 8,414 459,615
Edison International 12,451 277,035
El Paso Energy Corp. 4,000 130,750
Florida Progress Corp. 6,648 250,962
FPL Group Inc. 5,710 304,057
Frontier Corp. 6,528 338,640
GTE Corp. 11,180 676,390
New Century Energies Inc. 10,161 346,109
Northern States Power Co. 7,011 162,568
SBC Communications Inc. 19,864 936,091
Sonat Inc. 3,106 93,180
- --------
See Notes to Schedules of Investments and Financial Statements.
14
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Sprint Corp. 3,535 $ 346,872
Texas Utilities Co. 7,260 302,651
U.S. WEST Inc. 9,741 536,364
7,602,999
TOTAL COMMON STOCK
(COST $59,050,491) 75,785,807
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), 2.75%
(COST $427,410) 4,781 470,929
TOTAL INVESTMENTS IN SECURITIES
(COST $59,477,901) 76,256,736
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $1,037,787) 1,037,787 1,037,787
OTHER ASSETS AND LIABILITIES,
NET (0.2)% (148,233)
-----------
NET ASSETS-- 100% $77,146,290
===========
- ------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE VALUE EQUITY FUND
AT MARCH 31, 1999.
15
<PAGE>
GE MID-CAP GROWTH FUND
Q&A
RALPH (CHIP) E. WHITMAN IS THE PORTFOLIO MANAGER OF THE GE MID-CAP GROWTH FUND
EFFECTIVE DECEMBER 1998. HE IS CURRENTLY A SENIOR VICE PRESIDENT OF GE
INVESTMENTS. CHIP HAS MORE THAN 11 YEARS OF INVESTMENT EXPERIENCE AND HAS HELD
POSITIONS WITH GE INVESTMENTS SINCE 1987. CHIP IS A CHARTERED FINANCIAL ANALYST.
HE HOLDS A B.A. IN MATHEMATICS FROM HAMILTON COLLEGE AND A M.S. IN MANAGEMENT
FROM THE SLOAN SCHOOL AT MIT.
BETWEEN OCTOBER 1997 AND NOVEMBER 1998, ELAINE G. HARRIS WAS THE PORTFOLIO
MANAGER OF THE FUND.
Q. HOW DID THE GE MID-CAP GROWTH FUND'S BENCHMARK AND LIPPER PEERS PERFORM FOR
THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Standard & Poor's MidCap 400 Index posted a return of 19.04% over the
six-month period.
The fund's peer group of 394 Mid-Cap funds gained 23.42% for the same period.
To see how your class of shares in the GE Mid-Cap Growth Fund performed
against its benchmark, please turn to page 17.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. Strong stock performance during the first quarter of 1999 helped the fund
perform in line with its benchmark during the six-month period. The fund
benefited from good results in the telecommunications sector and a rebound
in selected basic materials stocks. Several companies in the portfolio were
involved in merger transactions. On the downside, underweighting in
market-leading technology stocks hurt performance. Despite strong prospects
for these stocks, we believe many of their valuations are excessive.
Q. WHICH INVESTMENTS STAND OUT?
A. In telecommunications, Qwest Communications gained 130%. The company is
rolling out a broad-band fiber-optic data network based on internet
protocols. AirTouch Communications, a wireless communications company that
has agreed to be acquired by United Kingdom-based Vodaphone, advanced 70%.
In basic materials, Morton International, the specialty chemical company
being acquired by Rohm & Haas, appreciated 68%. Returns for packaging
manufacturer Sealed Air, up 54%, show that its recent merger with Cryovac
should be a long-term win for both companies.
Q. WHAT CHANGES HAVE YOU MADE TO THE FUND?
A. In December, we changed the fund's composition to sharpen its focus. We
reduced by more than half the number of stocks in the portfolio and trimmed
our cash position. The fund's investment strategy remains the same. We seek
out companies with strong earnings growth, reasonable valuations and
high-quality management. New additions to the portfolio must be reasonably
priced in relation to their growth rates. Given the uncertainty of the
current economic environment, we are overweight in the sectors where
valuations discount potential negative events, yet are poised to benefit
from a stronger than expected climate. These sectors include Capital Goods,
Financial, Retail Trade and Healthcare.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We believe the fund is well-positioned to take advantage of the expected
rotation into stocks in fields outside technology, telecommunications and
the internet. Technology stocks produced astounding returns over the last
few years but they trade at exceptionally high valuations. While the
portfolio contains technology stocks, recent additions have been in capital
goods, specialty chemicals, financial companies and healthcare. By investing
more money in fewer stocks and choosing the highest quality stocks in each
sector, the fund has performed well so far in 1999.
[PHOTO OF RALPH (CHIP) E. WHITMAN OMITTED]
16
<PAGE>
GE MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Nokia Corp. ADR 3.22%
- --------------------------------------------------------------------------------
Airtouch Communications Inc. 2.84%
- --------------------------------------------------------------------------------
Dial Corp. 2.57%
- --------------------------------------------------------------------------------
Martin Marietta Materials Inc. 2.45%
- --------------------------------------------------------------------------------
Bank of New York Inc. 2.30%
- --------------------------------------------------------------------------------
Analog Devices Inc. 2.22%
- --------------------------------------------------------------------------------
Viad Corp. 2.21%
- --------------------------------------------------------------------------------
Costco Cos. Inc. 2.18%
- --------------------------------------------------------------------------------
Masco Corp. 2.11%
- --------------------------------------------------------------------------------
Firstar Corp. 1.99%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with medium-sized
market capitalizations that the Fund's management considers to have the
potential for above-average growth.
* LIPPER PERFORMANCE COMPARISON
MID-CAP PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 394 354 121
Peer group
average annual
total return: 23.42% 0.24% 15.79%
Lipper categories
in peer group: MID-CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE MID-CAP FUND GE MID-CAP FUND W/LOAD S&P 400
9/8/93 $10000.00 $10000.00 $10000.00
10435.29 9835.26 10335.74
9847.06 9280.85 9949.26
9447.06 8903.85 9565.21
SEP-94 10251.10 9661.66 10205.03
10322.37 9728.83 9951.67
11106.35 10467.73 10768.61
12377.34 11665.64 11704.57
SEP-95 13743.36 12953.12 12854.13
13588.94 12807.58 13000.64
14277.89 13456.91 13778.25
14551.10 13714.41 14172.93
SEP-96 15715.18 14811.56 14556.15
16000.27 15080.25 15434.45
15430.10 14542.87 15214.14
18447.23 17386.51 17464.08
SEP-97 20917.94 19715.16 20284.85
20200.03 19038.53 20461.56
22427.98 21138.37 22702.66
21536.80 20298.43 22235.63
SEP-98 17548.00 16536.00 19083.19
20900.24 19695.35 24278.70
MAR-99 20836.59 19635.36 22717.27
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Mid-Cap Growth 18.74% (7.10)% 16.17% 14.11%
GE Mid-Cap Growth
w/load 11.97% (12.40)% 14.81% 12.90%
(maximum load-5.75%)
S&P 400 MidCap 19.04% 0.06% 17.95% 15.83%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE MID-CAP FUND GE MID-CAP FUND W/LOAD S&P 400
9/8/93 $10000.00 $10000.00 $10000.00
10423.53 10423.53 10335.74
9823.53 9823.53 9949.26
9400.00 9400.00 9565.21
SEP-94 10180.31 10180.31 10205.03
10227.82 10227.82 9951.67
10976.20 10976.20 10768.61
12211.62 12211.62 11704.57
SEP-95 13542.06 13542.06 12854.13
13363.88 13363.88 13000.64
14017.22 14017.22 13778.25
14266.68 14266.68 14172.93
SEP-96 15383.31 15383.31 14556.15
15632.77 15632.77 15434.45
15050.70 15050.70 15214.14
17949.17 17949.17 17464.08
SEP-97 20336.85 20336.85 20284.85
19610.16 19610.16 20461.56
21740.75 21740.75 22702.66
20849.38 20849.38 22235.63
SEP-98 16958.00 16958.00 19083.19
20175.42 20175.42 24278.70
MAR-99 20088.45 20088.45 22717.27
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Mid-Cap Growth 18.46% (7.60)% 15.38% 13.36%
GE Mid-Cap Growth
w/load 14.46% (11.30)% 15.27% 13.36%
maximum load 4.0% 4.0% 1.0% 0.0%
S&P 400 MidCap 19.04% 0.06% 17.95% 15.83%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE MID-CAP FUND S&P 400
10/2/97 $10000.00 $10000.00
9490.00 9535.40
9488.44 9678.92
DEC-97 9581.01 10062.21
9442.15 9865.51
10275.29 10678.59
MAR-98 10645.57 11164.29
10691.85 11365.00
10182.72 10854.66
JUN-98 10229.00 10934.63
9766.24 10511.89
7961.05 8572.45
SEP-98 8331.24 9384.38
8791.41 10202.84
9272.73 10718.08
DEC-98 9940.68 11968.88
9862.10 11492.52
9459.36 10876.52
MAR-99 9921.04 11199.13
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Mid-Cap Growth 19.10% (6.83)% (0.53)%
S&P 400 MidCap 19.04% 0.06% 7.85%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE Mid-Cap Fund S&P 400
1/5/98 $10000.00 $10000.00
9830.00 9847.50
10720.00 10659.09
Mar-98 11120.00 11143.91
11140.00 11344.25
May-98 10620.00 10834.84
10680.00 10914.66
Jul-98 10219.69 10492.70
8319.85 8556.80
Sep-98 8710.05 9367.24
9210.00 10114.73
Nov-98 9690.00 10625.52
10400.00 11865.52
Jan-99 10320.00 11393.27
9900.00 10782.59
Mar-99 10380.00 11102.42
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Mid-Cap Growth 19.17% (6.65)% 3.06%
S&P 400 MidCap 19.04% 0.06% 8.75%
17
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE MID-CAP GROWTH FUND
[PIE CHART OMITTED]
FINANCIAL 21.2%
CAPITAL GOODS 15.5%
CONSUMER 12.9%
TECHNOLOGY 12.4%
HEALTHCARE 11.9%
RETAIL TRADE 9.0%
UTILITIES 6.1%
CASH & OTHER 3.8%
ENERGY 3.7%
BASIC MATERIALS 3.5%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.2%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 3.5%
Crompton & Knowles Corp. 30,640 $ 482,580
Morton International Inc. 11,796 433,503
Sealed Air Corp. 9,192 452,131(a)
1,368,214
[ICON OMITTED]
CAPITAL GOODS -- 15.5%
Allied Waste Industries Inc. 8,190 118,243(a)
AlliedSignal Inc. 9,958 489,809
Dover Corp. 12,562 412,976
Gerber Scientific Inc. 6,509 131,401
Hubbell Inc. (Class B) 8,732 349,280
Martin Marietta Materials Inc. 16,546 944,156
Masco Corp. 28,802 813,657
Mettler-Toledo International Inc. 20,529 508,093(a)
Molex Inc. (Class A) 13,022 336,944
Textron Inc. 8,273 640,123
Thermo Electron Corp. 9,805 132,980(a)
Tyco International Ltd. 10,264 736,442
U.S. Filter Corp. 11,490 351,881(a)
5,965,985
[ICON OMITTED]
CONSUMER - CYCLICAL -- 12.9%
Dial Corp. 28,802 990,069
Interpublic Group Cos. Inc. 8,426 656,175
ITT Industries Inc. 16,546 585,315
Jacor Communications Inc. 8,579 652,004(a)
Jones Apparel Group Inc. 15,780 440,854(a)
Service Corp. International 17,525 249,731
U.S. Industries Inc. 32,938 541,418
Viad Corp. 30,640 852,175
4,967,741
ENERGY -- 3.7%
BJ Services Co. 10,418 244,172(a)
Nabors Industries Inc. 10,571 192,260(a)
Schlumberger Ltd. 5,056 304,308
Tosco Corp. 16,546 410,548
USX-Marathon Group 10,418 286,495
1,437,783
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
FINANCIAL -- 13.2%
Bank of New York Inc. 24,665 $ 886,398
CIT Group Inc. (Class A) 16,546 505,687
Comdisco Inc. 38,300 684,612(h)
FINOVA Group Inc. 13,788 715,252
First American Corp. 8,732 321,993
Firstar Corp. 8,579 767,820
GATX Corp. 12,869 423,873
SouthTrust Corp. 7,660 285,814
Waddell & Reed Financial Inc.
(Class A) 24,665 505,633
5,097,082
[ICON OMITTED]
HEALTHCARE -- 11.9%
Allergan Inc. 4,596 403,873
Cardinal Health Inc. 8,886 586,476
Covance Inc. 19,610 491,476(a)
HCR Manor Care Inc. 26,810 611,603(a)
Henry Schein Inc. 22,980 580,245(a)
McKesson HBOC Inc. 8,273 546,018
Sybron International Corp. 22,980 574,500(a)
Tenet Healthcare Corp. 20,529 388,768(a)
Watson Pharmaceuticals Inc. 9,192 405,597(a)
4,588,556
INSURANCE -- 8.0%
American Bankers Insurance
Group Inc. 11,490 597,480
American International
Group Inc. 6,128 739,190(h)
Equitable Cos. Inc. 9,958 697,060
Hartford Financial Services
Group Inc. 9,498 539,605
Provident Cos. Inc. 15,320 529,498
3,102,833
[ICON OMITTED]
RETAIL TRADE -- 9.0%
Costco Cos. Inc. 9,192 841,642(a)
Federated Department
Stores Inc. 15,320 614,715(a)
Kroger Co. 12,409 742,989(a)
Office Depot Inc. 20,529 755,724(a)
Zale Corp. 15,014 513,291 (a,h)
3,468,361
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 8.4%
ADC Telecommunications Inc. 13,175 628,283(a)
Analog Devices Inc. 28,802 856,860(a)
Nokia Corp. ADR 7,966 1,240,704
Northern Telecom Ltd. 7,966 494,888
3,220,735
TECHNOLOGY - SOFTWARE & SERVICES -- 4.0%
Cadence Design Systems Inc. 15,473 398,430(a)
Compuware Corp. 19,916 475,494(a)
SunGard Data Systems Inc. 16,239 649,560(a)
1,523,484
- -------
See Notes to Schedules of Investments and Financial Statements.
18
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES -- 6.1%
Airtouch Communications Inc. 11,337 $ 1,095,438(a)
El Paso Energy Corp. 11,490 375,579
Qwest Communications
International Inc. 9,958 717,910(a)
Sonat Inc. 5,422 162,660
2,351,587
TOTAL INVESTMENTS IN SECURITIES
(COST $33,027,930) 37,092,361
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.2%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $2,370,569) 2,370,569 2,370,569
OTHER ASSETS AND LIABILITIES,
NET (2.4)% (925,320)
-----------
NET ASSETS-- 100% $38,537,610
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Mid-Cap Growth Fund had the following short Futures Contracts open at
March 31, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P MidCap 400 June 1999 (4) $(736,600) $(5,350)
- ---------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE MID-CAP GROWTH FUND
AT MARCH 31, 1999.
19
<PAGE>
GE MID-CAP VALUE EQUITY FUND
Q&A
JON D. BOSSE OF NWQ INVESTMENT MANAGEMENT COMPANY (NWQ) IS THE PORTFOLIO MANAGER
OF THE GE MID-CAP VALUE EQUITY FUND. NWQ IS THE FUND'S SUB-ADVISER AND HAS TOTAL
ASSETS UNDER MANAGEMENT EXCEEDING $7 BILLION. PRIOR TO JOINING NWQ IN 1996, JON
SPENT TEN YEARS WITH ARCO INVESTMENT MANAGEMENT COMPANY WHERE HE WAS DIRECTOR OF
EQUITY RESEARCH AND MANAGED A VALUE-ORIENTED FUND. PREVIOUS TO THIS, HE SPENT
FOUR YEARS IN THE CORPORATE FINANCE DEPARTMENT OF ARCO. JON RECEIVED HIS B.A.
(SUMMA CUM LAUDE) IN ECONOMICS FROM WASHINGTON UNIVERSITY IN ST. LOUIS WHERE HE
RECEIVED THE JOHN M. OLIN AWARD FOR EXCELLENCE IN ECONOMICS. HE RECEIVED HIS
M.B.A. FROM THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA. JON IS ALSO A
CHARTERED FINANCIAL ANALYST AND A MEMBER OF THE ASSOCIATION FOR INVESTMENT
MANAGEMENT AND RESEARCH AND THE LOS ANGELES SOCIETY OF FINANCIAL ANALYSTS.
Q. HOW DID THE GE MID-CAP VALUE EQUITY FUND'S BENCHMARK PERFORM FROM THE PERIOD
OF THE FUND'S INCEPTION (DECEMBER 31, 1998) THROUGH MARCH 31, 1999?
A. During the period from inception of the fund (December 31, 1998) through
March 31, 1999, the Standard & Poor's MidCap 400 Index posted a return of
(6.43)%. To see how your class of shares in the GE Mid-Cap Value Equity Fund
performed compared to its benchmark, please refer to the following page.
Q. WHY DID THE FUND OUT-
PERFORM ITS BENCHMARK?
A. Notwithstanding a market environment that favored growth and large market
capitalization technology stocks, the GE Mid-Cap Value Equity Fund performed
strongly during the quarter. Performance was driven by our focus in several
sectors and good stock selection. Our investments in the telecommunications
and media sectors contributed greatly, as well as several of our investments
in the Energy sector. MediaOne Group, a global cable and telecommunications
company, received a takeover offer from Comcast, propelling this particular
investment 33% higher during the period. The fund's investments in the
Energy sector benefited from production cuts among the Organization of
Petroleum Exporting Countries, which have helped to stabilize world oil
prices and have aided the reduction of excessive global inventory levels.
Q. WHICH INVESTMENTS STAND OUT?
A. In addition to the MediaOne Group holding, our investments in NTL, CoreComm,
Cellular Communications of Puerto Rico and Telephone & Data Systems
appreciated handsomely as some of the catalysts we had identified in the
telecommunications and cellular business propelled valuations higher. Other
performers include energy services companies such as Noble Affiliates and BJ
Services, toy industry leaders Hasbro and Toys `R Us, and bank institutions
BankAmerica and Chase Manhattan.
Q. HOW DO YOU PICK STOCKS?
A. Our investment philosophy is to identify undervalued stocks with catalysts
present to improve profitability and unlock value. We continue to find
significant investment opportunities in today's market. We are not
participating in the current market mania for internet, technology, and
other growth stocks where we find risk/reward and valuation parameters
extremely unattractive.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We are encouraged by developing signs of economic stability in Asia and
Latin America as well as signs of increasing market breadth. Both
developments have very positive implications.
[PHOTO OF JON D. BOSSE OMITTED]
20
<PAGE>
GE MID-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
NTL Inc. 3.83%
- --------------------------------------------------------------------------------
Hasbro Inc. 3.52%
- --------------------------------------------------------------------------------
AT&T Corp.- Liberty Media Group 3.07%
- --------------------------------------------------------------------------------
MediaOne Group Inc. 2.99%
- --------------------------------------------------------------------------------
Loews Corp. 2.95%
- --------------------------------------------------------------------------------
Telephone & Data Systems Inc. 2.92%
- --------------------------------------------------------------------------------
Aetna Inc. 2.89%
- --------------------------------------------------------------------------------
Waste Management Inc. 2.80%
- --------------------------------------------------------------------------------
BankAmerica Corp. 2.79%
- --------------------------------------------------------------------------------
Philip Morris Cos. Inc. 2.75%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
Amutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with medium-sized
market capitalizations that the Fund's management considers as undervalued by
the market and have above-average
growth potential.
- --------------------------------------------------------------------------------
TOP THREE BEST AND WORST PERFORMING STOCKS DURING
THE THREE MONTH PERIOD ENDED MARCH 31, 1999
- --------------------------------------------------------------------------------
BEST WORST
----- -----
NTL +44.8% Philip Morris -32.6%
- --------------------------------------------------------------------------------
BJ Services +43.5% Federal Mogul -26.9%
- --------------------------------------------------------------------------------
Mirage Resorts +36.6% Loews -24.0%
- --------------------------------------------------------------------------------
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE EQUITY GE MID-CAP VALUE EQUITY W/LOAD S&P 400 MIDCAP
12/31/98 $10000.00 $10000.00 $10000.00
JAN-99 10060.00 9481.55 9602.00
FEB-99 9580.00 9029.15 9094.05
MAR-99 10090.00 9509.82 9356.87
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value 0.90%
GE Mid-Cap Value
w/load (4.90)%
(maximum load-5.75%)
S&P 400 MidCap (6.43)%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE EQUITY GE MID-CAP VALUE EQUITY W/LOAD S&P 400 MIDCAP
12/31/98 $10000.00 $10000.00 $10000.00
JAN-99 10050.00 10050.00 9602.00
FEB-99 9570.00 9570.00 9094.05
MAR-99 10080.00 9680.00 9356.87
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value 0.80%
GE Mid-Cap Value
w/load (3.20)%
maximum load 4.0%
S&P 400 MidCap (6.43)%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE EQUITY S&P 400 MIDCAP
12/31/98 $10000.00 $10000.00
JAN-99 10060.00 9602.00
FEB-99 9580.00 9094.05
MAR-99 10100.00 9356.87
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value 1.00%
S&P 400 MidCap (6.43)%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE EQUITY S&P 400 MIDCAP
12/31/98 $10000 $10000
JAN-99 10060 9602
FEB-99 9580 9094.05
MAR-99 10100 9356.87
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value 1.00%
S&P 400 MidCap (6.43)%
21
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
MID-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
FINANCIAL 35.3%
CONSUMER 32.1%
TELECOMMUNICATIONS 6.5%
ENERGY 6.2%
CASH & OTHER 6.1%
CAPITAL GOODS 4.5%
BASIC MATERIALS 3.8%
TECHNOLOGY 3.1%
UTILITIES 2.4%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 97.3%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 3.8%
Allegheny Teldyne Inc. 8,100 $ 153,394
Praxair Inc. 7,000 252,437
405,831
CAPITAL GOODS -- 4.5%
Case Corp. 7,100 180,163
Waste Management Inc. 6,700 297,312
477,475
[ICON OMITTED]
CONSUMER - CYCLICAL -- 28.1%
AT&T Corp. - Liberty Media
Group (Class A) 6,200 326,275(a)
Cox Communications Inc. 3,400 257,125(a)
Federal-Mogul Corp. 3,500 150,500
Ford Motor Co. 4,000 227,000
Hasbro Inc. 12,900 373,294
Lear Corp. 4,600 196,362(a)
MediaOne Group Inc. 5,000 317,500(a)
Mirage Resorts Inc. 12,700 269,875(a)
NTL Inc. 5,000 406,875(a)
The E.W. Scripps Co. Inc. 5,900 261,075
Toys `R Us Inc. 10,300 193,769(a)
2,979,650
CONSUMER - STABLE -- 4.0%
Alberto-Culver Co. (Class B) 6,300 133,875
Philip Morris Cos. Inc. 8,300 292,056
425,931
[ICON OMITTED]
ENERGY -- 6.2%
BJ Services Co. 9,000 210,938(a)
Noble Affiliates Inc. 8,600 249,400
Tosco Corp. 8,100 200,981
661,319
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
FINANCIAL -- 20.8%
Bank One Corp. 5,100 $ 280,819
BankAmerica Corp. 4,200 296,625
Bear Stearns Cos. Inc. 5,775 258,070
Chase Manhattan Corp. 3,400 276,463
First Security Corp. 10,800 208,575
First Union Corp. 5,400 288,562
Heller Financial Inc. (Class A) 8,000 188,000
UnionBanCal Corp. 6,800 231,625
Waddell & Reed Financial Inc.
(Class A) 8,600 176,300
2,205,039
HEALTHCARE -- 1.9%
Pharmacia & Upjohn Inc. 3,200 199,600
[ICON OMITTED]
INSURANCE -- 14.5%
Aetna Inc. 3,700 307,100
Hartford Financial Services
Group Inc. 4,700 267,019
Loews Corp. 4,200 313,425
MGIC Investment Corp. 5,200 182,325
Provident Cos. Inc. 6,700 231,569
Torchmark Corp. 7,500 237,187
1,538,625
REAL ESTATE INVESTMENT TRUST -- 1.5%
Indymac Mortgage
Holdings Inc. 14,600 158,775
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 3.1%
Quantum Corp. 7,500 135,000(a)
Storage Technology Corp. 7,000 195,125(a)
330,125
[ICON OMITTED]
TELECOMMUNICATIONS -- 6.5%
Cellular Communications of
Puerto Rico 7,600 205,200(a)
CoreComm Ltd. 4,750 174,563(a)
Telephone & Data Systems Inc. 5,500 310,062
689,825
UTILITIES -- 2.4%
Alltel Corp. 4,100 255,738
TOTAL INVESTMENTS IN SECURITIES
(COST $10,106,426) 10,327,933
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.6%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $281,192) 281,192 281,192
OTHER ASSETS AND LIABILITIES,
NET 0.1% 10,518
-----------
NET ASSETS-- 100% $10,619,643
===========
- ----------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE MID-CAP VALUE
EQUITY FUND AT MARCH 31, 1999.
22
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
Q&A
PALISADE CAPITAL MANAGEMENT, L.L.C. ("PALISADE") WITH TOTAL ASSETS UNDER
MANAGEMENT EXCEEDING $2 BILLION, IS THE FUND'S SUB-ADVISER. PALISADE MANAGES
THROUGH AN INVESTMENT ADVISORY COMMITTEE WHICH IS COMPOSED OF THE FOLLOWING
MEMBERS: JACK FEILER, MARTIN L. BERMAN, STEVEN E. BERMAN AND RICHARD MEISENBERG.
JACK FEILER (PICTURED), CHIEF INVESTMENT OFFICER AT PALISADE, HAS DAY-TO-DAY
RESPONSIBILITY FOR MANAGING THE FUND AND WORKS WITH, THE SENIOR INVESTMENT
COMMITTEE FOR DEVELOPING AND EXECUTING THE FUND'S INVESTMENT PROGRAM.
JACK HAS MORE THAN 30 YEARS OF INVESTMENT EXPERIENCE AND HAS SERVED AS THE
PRINCIPAL SMALL-CAP PORTFOLIO MANAGER AT PALISADE SINCE THE COMMENCEMENT OF
PALISADE'S OPERATIONS IN APRIL 1995. PRIOR TO JOINING PALISADE, JACK WORKED FOR
BURNHAM & CO. AS AN ACCOUNT EXECUTIVE AND WAS PROMOTED TO SENIOR EXECUTIVE VICE
PRESIDENT OF BROAD STREET INVESTMENT MANAGEMENT IN 1981. IN 1990 HE JOINED SMITH
BARNEY AS SENIOR VICE PRESIDENT OF INVESTMENTS. JACK RECEIVED HIS BACHELOR'S
DEGREE IN 1964 FROM CITY COLLEGE OF NEW YORK AND HIS JURIS DOCTOR DEGREE FROM
BROOKLYN LAW SCHOOL IN 1967.
Q. HOW DID THE GE SMALL-CAP VALUE EQUITY FUND'S BENCHMARK PERFORM FOR THE
SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. For the six-month period ended March 31, 1999, the Russell 2000 Index
returned 10.00%. To see how your class of shares in the GE Small-Cap Value
Equity Fund performed compared to its benchmark, please refer to page 24.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
A. The fund underperformed the Russell 2000 due to our comparative
underweighting in internet stocks. These stocks, although generally the
strongest performers in the index, have market capitalizations which exceed
our target range. In fact, we anticipate that during Russell's annual index
reconstruction in June, many of these companies will be transferred to the
Russell 1000, an index for large market capitalization ("large-cap")
companies.
Q. WHAT HAS OUR INVESTMENT STRATEGY BEEN?
A. In an attempt to capitalize on the strength of the economy, we have
positioned the portfolio in companies we feel will benefit from increased
consumer spending. Overall we became more aggressive in our management of
the portfolio. We previously emphasized a somewhat defensive strategy with
the portfolio overweighted in industrials and have now shifted to a more
aggressive posture by moving into the telecommunications sector and
companies benefiting from the surge in consumer spending mentioned above.
Q. WHAT DOMESTIC AND/OR WORLD EVENT HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS
IN THE PAST SIX MONTHS AND HOW DID THIS EFFECT THE FUND?
A. As was the case in Latin America, Asia and Russia, the market continued to
ignore international concerns despite the intensifying conflict in the
Balkans. Investors are apparently convinced that the conflict will be
contained within the region and that its economic effects will be minimized.
At times it appears that problems abroad have actually strengthened the
market, as money continues to pour into the U.S., which is considered by
many foreign investors to be a safe haven. The big question is whether or
not this unbridled optimism is well founded. Despite the Dow's climb to
record levels, on closer inspection, many sectors of the market, including
both large-cap and small market capitalization ("small-cap") companies, have
failed to join the party.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Although it may seem as if small-cap value-oriented investing has fallen out
of favor, there have been numerous times in the past when value stocks have
outperformed growth stocks. Numerous studies have shown that, over time,
stocks with lower price/ earning ratios tend to outperform those with higher
ratios and that small-cap companies have posted superior returns as compared
to large-cap companies. Though no one can predict when the tide will turn,
it is hard to believe the lofty valuations we are seeing in the blue chips
and the internet stocks can be maintained indefinitely.
[PHOTO OF JACK FEILER OMITTED]
23
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Sterling Software Inc. 4.71%
- --------------------------------------------------------------------------------
Eastern Enterprises 3.63%
- --------------------------------------------------------------------------------
Intermedia Communications Inc. 2.84%
- --------------------------------------------------------------------------------
Park Electrochemical Corp. 2.67%
- --------------------------------------------------------------------------------
Mossimo Inc. 2.61%
- --------------------------------------------------------------------------------
ShopKo Stores Inc. 2.40%
- --------------------------------------------------------------------------------
New England Business Service Inc.2.30%
- --------------------------------------------------------------------------------
Handleman Co. 2.29%
- --------------------------------------------------------------------------------
Haverty Furniture Companies Inc. 2.28%
- --------------------------------------------------------------------------------
Fresh Del Monte Produce Inc. 2.07%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with small-sized
market capitalizations that the Fund's management considers as undervalued
by the market but have solid growth
potential.
- --------------------------------------------------------------------------------
TOP THREE BEST AND WORST
PERFORMING STOCKS
DURING THE SIX-MONTH
PERIOD ENDED MARCH 31, 1999
- --------------------------------------------------------------------------------
BEST WORST
----- -----
National Computer
Jeffries Group +1.75% Systems -0.74%
- --------------------------------------------------------------------------------
Chattem +0.90% Eastern Enterprises -0.77%
- --------------------------------------------------------------------------------
Regis +0.77% Pillowtex -1.46%
- --------------------------------------------------------------------------------
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE CHART OMITTED]
GE SMALL-CAP VALUE EQUITY GE SMALL-CAP VALUE EQUITY W/LOAD RUSSELL 2000
9/30/98 $10000.00 $10000.00 $10000.00
OCT-98 10760.00 10141.38 10407.80
NOV-98 11450.00 10791.71 10953.17
DEC-98 12009.95 11319.46 11631.17
JAN-99 11376.79 10722.70 11785.86
FEB-99 10482.32 9879.66 10831.21
MAR-99 10422.02 9822.83 11000.18
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Small-Cap Value 4.22%
GE Small-Cap Value
w/load (1.77)%
(maximum load-5.75%)
Russell 2000 10.00%
CLASS B SHARES
[LINE CHART OMITTED]
GE Small-Cap Value Equity GE Small-Cap Value Equity w/load Russell 2000
9/30/98 $10000.00 $10000.00 $10000.00
Oct-98 10750.00 10750.00 10407.80
Nov-98 11440.00 11440.00 10953.17
Dec-98 11996.22 11996.22 11631.17
Jan-99 11353.74 11353.74 11785.86
Feb-99 10460.30 10460.30 10831.21
Mar-99 10400.07 10000.07 11000.18
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Small-Cap Value 4.00%
GE Small-Cap Value
w/load 0.00%
maximum load 4.0%
Russell 2000 10.00%
CLASS C SHARES
[LINE CHART OMITTED]
GE SMALL-CAP VALUE EQUITY RUSSELL 2000
9/30/98 $10000.00 $10000.00
OCT-98 10760.00 10407.80
NOV-98 11450.00 10953.17
DEC-98 12016.63 11631.17
JAN-99 11383.12 11785.86
FEB-99 10498.21 10831.21
MAR-99 10437.88 11000.18
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Small-Cap Value 4.38%
Russell 2000 10.00%
CLASS D SHARES
[LINE CHART OMITTED]
GE SMALL-CAP VALUE EQUITY RUSSELL 2000
9/30/98 $10000.00 $10000.00
OCT-98 10760.00 10407.80
NOV-98 11460.00 10953.17
DEC-98 12021.58 11631.17
JAN-99 11387.80 11785.86
FEB-99 10502.53 10831.21
MAR-99 10442.17 11000.18
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Small-Cap Value 4.42%
Russell 2000 10.00%
24
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE SMALL-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
CONSUMER 35.6%
TECHNOLOGY 20.1%
FINANCIAL SERVICES 13.1%
UTILITIES 9.5%
PRODUCER DURABLES 5.6%
MATERIALS & PROCESSING 5.5%
HEALTHCARE 3.5%
AUTOS & TRANSPORTATION 2.3%
REAL ESTATE INVESTMENT TRUST 2.3%
CASH & OTHER 2.5%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.0%
- --------------------------------------------------------------------------------
AUTO & TRANSPORTATION -- 2.3%
AAR Corp. 9,000 $ 160,313
Coach USA Inc. 6,700 184,250(a)
Hub Group Inc. (Class A) 4,200 99,750(a)
444,313
[ICON OMITTED]
CONSUMER - DISCRETIONARY -- 31.2%
ABM Industries Inc. 10,000 305,000
Applebee's International Inc. 8,600 213,388
Carey International Inc. 10,400 169,000(a)
Claire's Stores Inc. 2,700 81,338
Copart Inc. 3,100 64,325(a)
Corporate Express Inc. 54,600 283,237(a)
Dayton Hudson Corp. 5,500 366,437
GTECH Holdings Corp. 8,400 204,750(a)
Handleman Co. 32,500 434,687(a)
Haverty Furniture
Companies Inc. 17,000 431,375
InterTAN Inc. 39,600 386,100(a)
Iron Mountain Inc. 6,300 196,875(a)
Korn/Ferry International 10,100 132,563(a)
MAXIMUS Inc. 6,400 186,400(a)
Mossimo Inc. 49,100 494,069(a)
New Horizons Worldwide Inc. 11,500 228,562(a)
Park Place Entertainment Corp. 46,900 354,681(a)
Pierce Leahy Corp. 13,200 328,350(a)
Pillowtex Corp. 2,900 41,144
Quest Education Corp. 1,700 15,513(a)
Regis Corp. 11,850 315,506
ShopKo Stores Inc. 15,200 454,100(a)
Volt Information Sciences Inc. 13,300 218,619(a)
5,906,019
CONSUMER - STABLE -- 4.4%
Fresh Del Monte Produce Inc. 21,100 391,669(a)
International Multifoods Corp. 12,100 282,081
Richfood Holdings Inc. 7,100 153,094
826,844
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.0%
- --------------------------------------------------------------------------------
ENERGY -- 0.5%
Piedmont Natural Gas
Company Inc. 2,700 $ 94,500
[ICON OMITTED]
FINANCIAL SERVICES -- 13.1%
BARRA Inc. 15,700 386,612(a)
Capital Re Corp. 5,600 96,600
Cash America International Inc. 27,800 357,925
Dain Rauscher Corp. 10,900 370,600
Duff & Phelps Credit Rating Co. 7,000 366,625
EVEREN Capital Corp. 3,700 72,381
Jefferies Group Inc. 4,900 232,444
National Data Corp. 4,100 172,200
NOVA Corp. 5,800 152,250(a)
Peoples Bancorp Inc. 600 5,925
Roslyn Bancorp Inc. 7,200 121,500
Sovereign Bancorp Inc. 2,800 34,300
U.S. Trust Corp. 1,600 118,700
2,488,062
HEALTHCARE -- 3.5%
Chattem Inc. 9,300 290,625(a)
DVI Inc. 2,000 29,750(a)
Sola International Inc. 7,000 84,438(a)
Techne Corp. 9,100 262,762(a)
667,575
MATERIALS & PROCESSING -- 5.5%
Ball Corp. 2,500 117,344
Cambrex Corp. 4,600 101,775
Kaydon Corp. 7,500 217,031
New England Business
Service Inc. 15,200 436,050
Spartech Corp. 1,100 22,688
Texas Industries Inc. 3,800 94,287
Valspar Corp. 1,600 50,500
1,039,675
PRODUCER DURABLES -- 5.6%
Anaren Microwave Inc. 14,900 361,325(a)
HEICO Corp. (Class A) 10,600 226,575
L-3 Communications
Holdings Inc. 3,800 175,750(a)
Scott Technologies Inc. 16,800 291,900(a)
1,055,550
REAL ESTATE INVESTMENT TRUSTS -- 2.3%
Home Properties of
New York Inc. 6,500 150,313
Mid-Atlantic Realty Trust 11,500 117,875
Sizeler Property Investors Inc. 10,000 82,500
Summit Properties Inc. 5,600 93,450
444,138
- ------------
See Notes to Schedules of Investments and Financial Statements.
25
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.0%
- --------------------------------------------------------------------------------
[ICON OMITTED]
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 9.9%
Arrow Electronics Inc. 15,100 $ 226,500(a)
DII Group Inc. 9,800 286,650(a)
KEMET Corp. 22,600 259,900(a)
Littelfuse Inc. 5,200 95,550(a)
Park Electrochemical Corp. 21,500 505,250
Vishay Intertechnology Inc. 21,900 318,919(a)
VWR Scientific Products Corp. 8,300 186,750(a)
1,879,519
[ICON OMITTED]
TECHNOLOGY - SOFTWARE & SERVICES -- 10.2%
Advanced Communication
Systems Inc. 11,700 136,012(a)
Affiliated Computer Services Inc. 7,000 320,250(a)
Kronos Inc. 10,000 245,000(a)
National Computer Systems Inc. 13,500 330,750
Sterling Software Inc. 37,600 893,000(a)
1,925,012
[ICON OMITTED]
UTILITIES -- 9.5%
Colonial Gas Co. 1,900 65,550
Eastern Enterprises 18,900 687,487
ICG Communications Inc. 6,400 128,000(a)
Intermedia Communications Inc. 20,200 537,825(a)
Philadelphia Suburban Corp. 16,800 381,150
1,800,012
TOTAL INVESTMENTS IN SECURITIES
(COST $18,625,651) 18,571,219
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $505,839) 505,839 505,839
OTHER ASSETS AND LIABILITIES,
NET (0.7)% (126,758)
-----------
NET ASSETS-- 100% $18,950,300
===========
- -----------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE SMALL-CAP VALUE
EQUITY FUND AT MARCH 31, 1999.
26
<PAGE>
GE GLOBAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PICTURED ON PAGE 32) MANAGES THE INTERNATIONAL EQUITY PROCESS
AT GE INVESTMENTS. TOTAL ASSETS UNDER HIS MANAGEMENT EXCEEDS $10 BILLION. HE
LEADS A TEAM OF PORTFOLIO MANAGERS FOR THE GE INTERNATIONAL EQUITY FUND, THE GE
EMERGING MARKETS FUND AND SHARES PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THE GE
GLOBAL EQUITY FUND WITH MICHAEL 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 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.
MICHAEL J. SOLECKI (PICTURED ON PAGE 370 CO-LEADS THE TEAM OF PORFOLIO MANAGERS
FOR THE GE GLOBAL EQUITY FUND. HE HAS SERVED THE FUND AS CO-PORTFOLIO MANAGER
SINCE SEPTEMBER 1997. MIKE ALSO HAS SERVED AS PORTFOLIO MANAGER OF THE GE EUROPE
EQUITY FUND SINCE THAT FUND'S COMMENCEMENT. MIKE HAS MORE THAN NINE YEARS OF
INVESTMENT EXPERIENCE AND JOINED GE INVESTMENTS IN 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 GLOBAL EQUITY FUNDS' BENCHMARK AND LIPPER PEERS PERFORM FOR
THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The GE Global Equity Fund's benchmark, the MSCI World Index, returned 25.44%
for the period. The fund's Lipper peers, 289 Global stock funds, earned 20.3%
during the same period. To see how your class of shares performed compared to
its benchmark, please refer to page 28.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE?
A. The GE Global Equity Fund's positions in technology and telecommunications,
plus strong performance from European and United States stocks in those
industries, were major reasons why the fund outperformed both its benchmark
and peers. Holdings in the United Kingdom, where markets rose 4% in the first
quarter of 1999, had a major positive effect on performance. Continental
European stocks also did well and the fund's positions in Asia and Latin
America made small contributions. Japan's market gain of 42% between October
and the end of March had a minor negative effect. The fund had a 5%
investment in Japan, compared with 20% for the benchmark. Investment started
to flow back into Japan when its banks and corporations began to discuss
restructuring. However, we thought the moves were speculative and the stocks
overvalued. Since then, some companies have restructured. Holdings in Toshiba
and Sony, both restructuring companies, performed well during the first
quarter of 1999.
Q. WHICH INVESTMENTS STAND OUT?
A. Leading the GE Global Equity Fund's list of strong performers was Airtouch
Communications, the U.S. telecommunications company recently acquired by
Vodaphone. Other top stocks were EMC, the U.S. data storage company; and
Citigroup, the U.S. financial giant formed from the merger of Citibank and
The Travelers. Outstanding performers held by both funds include Nokia of
Finland and Mannesmann of Germany, both in telecommunications, and Total of
France, a diversified global oil company benefiting from surging demand.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The GE Global Equity Fund made long-term bets on stocks with attractive
valuations and growth potential. These stocks are coming into their own now
and we do not foresee changes. We lowered our weighting in U.S. stocks to
account for high valuations in that market. Any U.S. stocks we add to our
holdings have growth rates that exceed their valuation levels. The GE Global
Equity Fund's European stocks should continue to produce results. The fund
does not plan to increase exposure in Japan, except to buy stocks that are
taking measures to restructure operations. The fund has small stakes in
Latin American companies that do business with the United States, but will
continue to look for opportunities in the region.
27
<PAGE>
GE GLOBAL EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Airtouch Communications Inc. 3.58%
- --------------------------------------------------------------------------------
EMC Corp. 2.91%
- --------------------------------------------------------------------------------
Mannesmann AG 2.88%
- --------------------------------------------------------------------------------
Preussag AG 2.54%
- --------------------------------------------------------------------------------
BTR Siebe PLC 2.45%
- --------------------------------------------------------------------------------
AXA-UAP 2.43%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 2.35%
- --------------------------------------------------------------------------------
ING Groep N.V. 2.10%
- --------------------------------------------------------------------------------
Cap Gemini S.A. 1.66%
- --------------------------------------------------------------------------------
Autoliv Inc. SDR 1.61%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund
designed for
investors who seek
long-term growth
of capital by
investing
primarily in
equity securities
of global
companies.
* LIPPER PERFORMANCE COMPARISON
GLOBAL STOCK PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/99
Six One Five
Months Year Year
Number of
Funds in
peer group: 289 269 97
Peer group
average annual
total return: 20.30% 1.00% 12.18%
Lipper categories
in peer group: GLOBAL, GLOBAL SMALL CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY FUND GE GLOBAL EQUITY FUND W/LOAD MSCI WORLD
1/1/94 $10000.00 $10000.00 $10000.00
9989.33 9414.94 10060.53
9872.06 9304.42 10362.27
SEP-94 10309.17 9716.39 10584.52
9771.67 9209.80 10507.72
9979.69 9405.86 10999.19
10795.37 10174.64 11468.06
SEP-95 11047.19 10411.98 12108.59
11099.20 10461.00 12694.07
11651.65 10981.68 13200.83
12081.33 11386.65 13583.25
SEP-96 12282.23 11576.00 13763.66
12740.03 12007.48 14394.25
12698.64 11968.47 14434.91
14248.27 13428.99 16607.57
SEP-97 14555.83 13718.87 17082.59
13601.00 12818.94 16662.35
15777.16 14869.97 19048.44
15962.93 15045.06 19435.56
SEP-98 12951.00 12209.00 17105.81
15781.44 14877.38 20718.49
MAR-99 16744.40 15785.17 21457.88
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Global Equity 29.29% 6.13% 10.88% 10.32%
GE Global Equity w/load 21.86% 0.03% 9.58% 9.09%
(maximum load-5.75%)
MSCI World 25.44% 12.64% 16.36% 15.66%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY FUND GE GLOBAL EQUITY FUND W/LOAD MSCI WORLD
12/22/93 $10000.00 $10000.00 $10000.00
10263.26 10263.26 10000.00
10257.78 10257.78 10060.53
10137.42 10137.42 10362.27
SEP-94 10569.61 10569.61 10584.52
10004.78 10004.78 10507.72
10206.22 10206.22 10999.19
11023.16 11023.16 11468.06
SEP-95 11269.36 11269.36 12108.59
11307.77 11307.77 12694.07
11860.62 11860.62 13200.83
12276.68 12276.68 13583.25
SEP-96 12464.76 12464.76 13763.66
12915.25 12915.25 14394.25
12854.81 12854.81 14434.91
14408.02 14408.02 16607.57
SEP-97 14698.12 14698.12 17082.59
13722.68 13722.68 16662.35
15895.50 15895.50 19048.44
16065.25 16065.25 19435.56
SEP-98 13017.00 13017.00 17105.81
15838.39 15838.39 20718.49
MAR-99 16789.26 16789.26 21457.88
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Global Equity 28.98% 5.62% 10.36% 10.32%
GE Global Equity w/load 24.98% 1.62% 10.36% 10.32%
maximum load 4.0% 4.0% 0.0% 0.0%
MSCI World 25.44% 12.64% 16.36% 15.66%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY FUND MSCI WORLD
2/22/93 $10000.00 $10000.00
10405.58 10578.82
10585.11 11218.33
SEP-93 11409.58 11744.47
12608.53 11934.23
12615.25 12006.47
12480.83 12366.58
SEP-94 13038.67 12631.81
12370.65 12540.16
12646.61 13126.68
13681.53 13686.25
SEP-95 14012.70 14450.67
14087.43 15137.47
14798.50 15754.18
15347.65 16210.57
SEP-96 15615.16 16425.88
16212.54 17178.44
16167.68 17226.95
18149.38 19819.86
SEP-97 18553.20 20386.76
17335.72 19885.24
20128.56 22732.85
20371.78 23194.84
SEP-98 16539.00 20414.47
20163.25 24725.11
MAR-99 21406.49 25607.49
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Global Equity 29.43% 6.35% 11.16% 13.28%
MSCI World 25.44% 12.64% 16.36% 16.70%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY FUND MSCI WORLD
11/29/93 $10000.00 $10000.00
10855.63 10486.97
10861.41 10550.45
10757.37 10866.89
SEP-94 11242.92 11099.95
10670.15 11019.42
10919.95 11534.82
11824.00 12026.53
SEP-95 12115.44 12698.25
12184.04 13301.75
12810.58 13843.68
13297.20 14244.72
SEP-96 13534.42 14433.92
14059.67 15095.22
14027.20 15137.85
15761.11 17416.31
SEP-97 16124.78 17914.47
15089.20 17473.77
17523.65 19976.05
17750.28 20382.02
SEP-98 14417.00 17938.82
17589.86 20718.49
MAR-99 18684.44 21457.88
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Global Equity 29.60% 6.62% 11.46% 12.43%
MSCI World 25.44% 12.64% 16.36% 15.39%
28
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE GLOBAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 61.5%
U.S. 21.0%
OTHER REGIONS 5.4%
JAPAN 5.0%
CASH & OTHER 3.6%
PACIFIC RIM 3.5%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.2%
- --------------------------------------------------------------------------------
AUSTRALIA -- 0.6%
Brambles Industries Ltd. 5,232 $ 132,997
Cable & Wireless Optus (Ltd.) 95,397 222,020
355,017
BRAZIL -- 0.3%
Uniao de Bancos Brasilieros
S.A. GDR 10,280 197,890
CANADA -- 1.0%
CGI Group Inc. (Class A) 3,740 81,143(a)
Newcourt Credit Group Inc. 3,893 104,965
Northern Telecom Ltd. 6,836 424,687
610,795
CROATIA -- 0.1%
Pliva D D GDR (Regd.) 3,387 53,515
DENMARK -- 0.4%
Novo-Nordisk AS (Series B) 2,329 260,757
FINLAND -- 4.6%
Helsingin Puhelin Oyj 5,729 280,610
Merita Ltd. (Series A) 67,327 361,074
Nokia Oyj (Series A) 4,119 664,042
Sampo Insurance Co. Ltd.
(Series A) 22,881 717,462
Sonera Group Oyj 40,012 666,249(a)
2,689,437
[ICON OMITTED]
FRANCE -- 13.4%
Alstom 23,242 691,086(a)
AXA-UAP 10,722 1,423,640
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Cap Gemini S.A. 5,779 $ 969,149
Carrefour S.A. 696 537,320
Coflexip S.A. ADR 12,164 419,658
Elf Aquitaine S.A. ADR 1,989 270,546
Lyonnaise Des Eaux S.A. 1,157 214,422
Michelin CGDE (Regd.)
(Class B) 14,255 640,419
Rhone-Poulenc S.A. (Class A) 10,811 489,785
Schneider S.A. 10,598 587,278
Societe Generale 3,543 681,894
Total S.A. (Class B) 7,402 913,189
7,838,386
GERMANY -- 10.7%
Bayerische Vereinsbank AG 8,583 514,132
DaimlerChrysler AG 7,502 653,790(a)
Fresenius Medical Care AG 11,303 684,396
Mannesmann AG 13,172 1,684,854
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) 1,216 245,867
Muenchener Rueckversicherungs-
Gesellschaft AG 1,216 242,581(a)
Preussag AG 2,760 1,483,171
Veba AG 7,225 380,446
Viag AG 258 142,522
Volkswagen AG 3,173 211,681
6,243,440
GREECE -- 1.2%
Alpha Credit Bank (Regd.) 570 37,940
Hellenic Telecommunication
Organization S.A. ADR 20,991 245,332
Hellenic Telecommunication
Organization S.A. 16,740 407,216
690,488
HONG KONG -- 1.1%
Giordano International Ltd. 382,000 118,305
Johnson Electric Holdings 185,000 521,614
639,919
IRELAND -- 0.9%
Bank of Ireland 16,445 341,970
CRH PLC 12,531 215,261
557,231
ISRAEL -- 2.3%
Comverse Technology Inc. 7,053 599,505(a)
ECI Telecommunications Ltd. 13,314 465,990
Teva Pharmaceutical Industries
Ltd. ADR 6,380 302,651
1,368,146
ITALY -- 4.4%
Assicurazioni Generali 6,153 246,824
Montedison S.p.A. 206,843 214,703
- ------------
See Notes to Schedules of Investments and Financial Statements.
29
<PAGE>
GE GLOBAL EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Saipem 71,741 $ 279,252
Telecom Italia Mobile S.p.A. 36,741 142,220
Telecom Italia Mobile S.p.A. 80,963 545,381
Telecom Italia S.p.A. 86,804 923,551
Unicredito Italiano S.p.A. 37,030 200,193
2,552,124
[ICON OMITTED]
JAPAN -- 5.0%
Canon Inc. 22,000 544,357
Honda Motor Co. 5,000 225,901
Minebea Co. Ltd. 31,000 320,432
Shin-Etsu Chemical Co. 18,000 472,744
Sony Corp. 8,200 758,265
Toshiba Corp. 85,000 580,712
2,902,411
MEXICO -- 1.7%
Desc S.A. de C.V. (Series B) 62,185 74,481
Desc S.A. de C.V. ADR (Class C) 6,207 165,649
Gruma S.A. de C.V. (Series B) 30,834 67,059(a)
Grupo Carso S.A. de C.V.
(Series A) 25,083 103,041
Grupo Carso S.A. de C.V. ADR 24,617 200,013
Grupo Finaciero Banamex Accival
S.A. de C.V. (Class B) 152,575 317,397(a)
Grupo Televisa S.A. GDR 1,336 41,917
969,557
NETHERLANDS -- 3.6%
ING Groep N.V. 22,226 1,226,826
Koninklijke Ahold N.V. 7,292 279,899
Philips Electronics N.V. 7,468 609,241
2,115,966
NORWAY -- 0.2%
Petroleum Geo Services 6,370 97,327(a)
PANAMA -- 0.1%
Panamerican Beverages Inc.
(Class A) 3,328 58,448
PHILIPPINES -- 0.2%
San Miguel Corp. S.A. 71,580 119,146
POLAND -- 0.5%
Telekomunikacja Polska
S.A. GDR 54,595 289,353 (a,b)
PORTUGAL -- 1.1%
Banco Comercial Portugues
(Regd.) 6,324 191,459
Jeronimo Martins, SGPS, S.A. 3,635 129,701
Jeronimo Martins, SGPS, S.A. 1,211 43,210(a)
Telecel-Comunicacoes
Pessoais S.A. 1,695 270,326
634,696
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SOUTH KOREA -- 0.3%
Pohang Iron & Steel Co. Ltd. 2,510 $ 153,464
SPAIN -- 2.0%
Argentaria S.A. 27,639 665,232
Repsol S.A. 6,735 347,362
Telefonica S.A. 3,332 141,551
1,154,145
SWEDEN -- 4.3%
Autoliv Inc. SDR 24,695 941,134
Ericsson LM Telephone
(Series B) 16,131 392,816
Investor AB (Series B) 3,192 139,915
NetCom Systems AB (Series B) 4,908 167,325(a)
Pharmacia & Upjohn Inc. 13,806 861,149
2,502,339
SWITZERLAND -- 2.1%
ABB AG 135 179,031
Credit Suisse AG 1,995 372,935
Novartis AG (Regd.) 356 578,927
Zurich Allied AG (Regd.) 202 129,563
1,260,456
TAIWAN -- 1.3%
Taiwan Semiconductor
Manufacturing Co. 237,900 746,466(a)
[ICON OMITTED]
UNITED KINGDOM -- 11.8%
Airtours PLC 69,056 507,283
Bank of Scotland PLC 5,286 70,280
Cable & Wireless
Communication PLC 35,448 400,615(a)
Commercial Union PLC 17,552 276,009
FKI PLC 117,497 297,827
Granada Group PLC 29,309 591,492
Great Universal Stores PLC 16,939 178,036
Johnson Matthey PLC 64,508 485,851
Nycomed Amersham PLC 26,571 230,796
Railtrack Group PLC 4,784 109,369
Reed International PLC 24,774 220,387
Royal & Sun Alliance
Insurance Group PLC 65,236 616,142
SEMA Group PLC 49,332 554,340
Senior Engineering PLC 106,067 259,436
BTR Siebe PLC 325,569 1,433,658
Somerfield PLC 43,160 221,240
United Assurance Group 64,080 454,177
Vodafone Group PLC 28 520
6,907,458
- ----------
See Notes to Schedules of Investments and Financial Statements.
30
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
UNITED STATES -- 21.0%
Airtouch Communications Inc. 21,652 $ 2,092,124(a)
AlliedSignal Inc. 27,994 1,376,955
Burlington Northern
Santa Fe Corp. 11,944 392,659
Cardinal Health Inc. 12,636 833,976
Citigroup Inc. 14,612 933,342
Ecolab Inc. 11,563 410,487
EMC Corp. 13,310 1,700,353(a)
Intel Corp. 4,389 521,742
International Business Machines 3,273 580,139
MCI WorldCom Inc. 10,041 889,256(a)
Morgan Stanley, Dean Witter 5,506 550,256
SBC Communications Inc. 11,842 558,054
Sun Microsystems Inc. 3,490 436,468(a)
Waste Management Inc. 13,065 579,759
Xerox Corp. 2,786 148,703
Zebra Technologies Corp.
(Class A) 12,275 291,531(a)
12,295,804
TOTAL COMMON STOCK
(COST $45,174,006) 56,264,181
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
- --------------------------------------------------------------------------------
Fresenius Medical Care AG
(COST $266,116) 3,125 118,262
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 46 1,641(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $45,440,122) 56,384,084
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $2,489,928) 2,489,928 2,489,928
OTHER ASSETS AND LIABILITIES,
NET (0.7)% (390,253)
----------
NET ASSETS-- 100% $58,483,759
===========
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Global Equity Fund invested in the following sectors at March 31, 1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Services 25.96%
Capital Equipment 25.31%
Finance 19.44%
Consumer Goods 14.09%
Multi Industry 6.06%
Energy 4.41%
Materials 2.73%
Cash and Other 2.00%
----------
100.00%
===========
- -----------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE COUNTRY WEIGHTINGS IN THE GE GLOBAL EQUITY FUND AT
MARCH 31, 1999.
31
<PAGE>
GE INTERNATIONAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PLEASE REFER TO PAGE 27 FOR RALPH'S BIOGRAPHICAL DETAILS) LEADS
A TEAM OF PORTFOLIO MANAGERS FOR THE GE INTERNATIONAL EQUITY FUND.
Q. HOW DID THE GE INTERNATIONAL EQUITY FUND BENCHMARK AND LIPPER PEERS PERFORM
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The GE International Equity Fund's benchmark MSCI EAFE Index rose 22.34%
during the past six months. The fund's Lipper peer group of 665 International
stock funds gained 18.18%. To see how your class of shares performed compared
to their benchmark, please refer to page 33.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE?
A. The GE International Equity Fund did better than peers but slightly
underperformed its benchmark. Holdings in the United Kingdom, where markets
rose 4% in the first quarter of 1999, had a major positive effect on
performance. Continental European stocks also did well and the fund's
positions in Asia and Latin America made small contributions. Japan's market
gain of 42% between October and the end of March had a minor negative
effect. The fund had a 5.9% investment in Japan, compared with 20% for the
benchmark. Investment started to flow back into Japan when its banks and
corporations began to discuss restructuring. However, we thought the moves
were speculative and the stocks overvalued. Since then, some companies have
restructured. Holdings in Toshiba and Sony, both restructuring companies,
performed well during the first quarter of 1999.
Q. WHICH INVESTMENTS STAND OUT?
A. Preussag, the German travel company, turned in strong results for the GE
International Equity Fund. Other outstanding performers include Nokia of
Finland and Mannesmann of Germany, both in telecommunications, and Total of
France, a diversified global oil company benefiting from surging demand.
Q. WHAT IS YOUR OUTLOOK FOR THE FUNDS?
A. The GE International Equity Fund's European stocks should continue to
produce results. The fund is buying European utility companies, such as Viag
and Veba of Germany, which are growing as they restructure and sell assets.
The fund also has taken positions in European banks. Two recent additions
are Credit Suisse and The Bank of Ireland. Ireland recently cut corporate
tax rates from 30% to 12%, encouraging companies to move into the country.
The fund does not plan to increase exposure in Japan, except to buy stocks
that are taking measures to restructure operations and has small stakes in
Latin American companies that do business with the United States, but will
continue to look for opportunities in the region.
(PICTURED LEFT TO RIGHT: M. SOLECKI, J. STUDER, R. LAYMAN, B. HOPKINSON)
[PHOTO OF M. SOLECKI, J. STUDER, R. LAYMAN, B. HOPKINSON OMITTED]
32
<PAGE>
GE INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Mannesmann AG 3.21%
- --------------------------------------------------------------------------------
Preussag AG 3.01%
- --------------------------------------------------------------------------------
BTR Siebe PLC 2.97%
- --------------------------------------------------------------------------------
AXA-UAP 2.91%
- --------------------------------------------------------------------------------
ING Groep N.V. 2.48%
- --------------------------------------------------------------------------------
Cap Gemini S.A. 2.47%
- --------------------------------------------------------------------------------
Total S.A. 2.39%
- --------------------------------------------------------------------------------
Airtours PLC 1.88%
- --------------------------------------------------------------------------------
Autoliv Inc. SDR 1.83%
- --------------------------------------------------------------------------------
Granada Group PLC 1.78%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
by investing primarily in foreign equity securities.
* LIPPER PERFORMANCE COMPARISON
INTERNATIONAL STOCK PEER
GROUP BASED ON AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 665 624 178
Peer group
average annual
total return: 18.18% (0.21)% 7.60%
Lipper categories in peer group:
INTERNATIONAL, CANADIAN,
INTERNATIONAL SMALL CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND GE INT'L EQUITY FUND W/LOAD MSCI EAFE
3/2/94 $10000.00 $10000.00 $10000.00
9753.33 9290.05 9569.11
9753.32 9290.04 10057.82
SEP-94 10119.99 9639.29 10067.63
9622.69 9165.62 9965.09
9682.87 9222.94 10150.54
10298.07 9808.92 10224.17
SEP-95 10612.37 10108.28 10650.70
11003.64 10480.96 11082.14
11338.50 10799.92 11402.31
11700.15 11144.39 11582.47
SEP-96 11820.71 11259.23 11568.67
12325.49 11616.78 11751.94
12456.76 11740.50 11568.12
13817.82 13023.29 13069.01
SEP-97 13997.45 13192.60 12977.06
13044.86 12294.78 11960.97
15334.54 14452.81 13720.41
15564.31 14669.36 13866.18
SEP-98 12748.00 12011.00 11895.38
14862.43 14003.55 14352.07
MAR-99 15346.69 14459.82 14551.79
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Int'l Equity 20.39% 0.08% 9.49% 8.79%
GE Int'l Equity w/load 13.49% (5.68)% 8.20% 7.53%
(maximum load-5.75%)
MSCI EAFE 22.34% 6.07% 8.74% 7.65%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND GE INT'L EQUITY FUND W/LOAD MSCI EAFE
3/2/94 $10000.00 $10000.00 $10000.00
9753.33 9753.33 9569.11
9740.00 9740.00 10057.82
SEP-94 10086.65 10086.65 10067.63
9582.65 9582.65 9965.09
9629.36 9629.36 10150.54
10223.29 10223.29 10224.17
SEP-95 10523.58 10523.58 10650.70
10897.29 10897.29 11082.14
11210.92 11210.92 11402.31
11557.93 11557.93 11582.47
SEP-96 11658.03 11658.03 11568.67
12141.03 12141.03 11751.94
12257.71 12257.71 11568.12
13575.46 13575.46 13069.01
SEP-97 13740.18 13740.18 12977.06
12793.89 12793.89 11960.97
15011.34 15011.34 13720.41
15223.37 15223.37 13866.18
SEP-98 12450.00 12450.00 11895.38
14498.33 14498.33 14352.07
MAR-99 14946.19 14946.19 14551.79
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Int'l Equity 20.05% (0.43)% 8.91% 8.23%
GE Int'l Equity w/load 16.05% (4.28)% 8.91% 8.23%
maximum load 4.0% 4.0% 0.0% 0.0%
MSCI EAFE 22.34% 6.07% 8.74% 7.65%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND MSCI EAFE
3/2/94 $10000.00 $10000.00
9760.00 9569.11
9760.00 10057.82
SEP-94 10126.66 10067.63
9636.58 9965.09
9703.64 10150.54
10320.59 10224.17
SEP-95 10649.18 10650.70
11036.55 11082.14
11379.76 11402.31
11756.63 11582.47
SEP-96 11877.76 11568.67
12398.08 11751.94
12543.60 11568.12
13915.78 13069.01
SEP-97 14109.82 12977.06
13161.44 11960.97
15473.21 13720.41
15711.92 13866.18
SEP-98 12882.00 11895.38
15025.99 14352.07
MAR-99 15519.80 14551.79
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Int'l Equity 20.48% 0.30% 9.72% 9.03%
MSCI EAFE 22.34% 6.07% 8.74% 7.65%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND MSCI EAFE
3/2/94 $10000.00 $10000.00
9760.00 9569.11
9773.34 10057.82
SEP-94 10146.67 10067.63
9666.15 9965.09
9733.29 10150.54
10357.55 10224.17
SEP-95 10699.89 10650.70
11103.89 11082.14
11461.43 11402.31
11845.95 11582.47
SEP-96 11980.87 11568.67
12508.42 11751.94
12669.13 11568.12
14066.73 13069.01
SEP-97 14276.37 12977.06
13327.67 11960.97
15697.18 13720.41
15955.79 13866.18
SEP-98 13085.00 11895.38
15273.27 14352.07
MAR-99 15781.79 14551.79
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Int'l Equity 20.61% 0.54% 10.09% 9.39%
MSCI EAFE 22.34% 6.07% 8.74% 7.65%
33
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE INTERNATIONAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 80.1%
OTHER REGIONS 8.0%
JAPAN 5.9%
PACIFIC RIM 3.9%
CASH & OTHER 2.1%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 97.8%
- --------------------------------------------------------------------------------
AUSTRALIA -- 1.5%
Brambles Industries Ltd. 31,404 $ 798,287
AUSTRIA -- 0.3%
VA Technologie AG 2,012 144,995
BRAZIL -- 0.4%
Uniao de Bancos Brasilieros
S.A. GDR 11,354 218,565
CANADA -- 1.6%
CGI Group Inc. (Class A) 15,606 338,587(a)
Newcourt Credit Group Inc. 7,534 203,136
Northern Telecom Ltd. 5,288 328,517
870,240
DENMARK -- 0.8%
Novo-Nordisk AS (Series B) 3,815 427,131
FINLAND -- 4.0%
Helsingin Puhelin Oyj 956 46,825
Merita Ltd. (Series A) 84,044 450,728
Nokia Oyj (Series A) 5,720 922,146
Pohjola Group Insurance
Ltd. Co. (Series B) 2,518 133,407
Sampo Insurance Co. Ltd.
(Series A) 17,319 543,058
2,096,164
[ICON OMITTED]
FRANCE -- 18.8%
Alstom 29,283 870,711(a)
AXA-UAP 11,546 1,533,048
Cap Gemini S.A. 7,768 1,302,708
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Carrefour S.A. 838 $ 646,946
Coflexip S.A. ADR 9,958 343,551
Elf Aquitaine S.A. ADR 2,796 380,315
Lyonnaise Des Eaux S.A. 2,954 547,453
Michelin CGDE (Regd.)
(Class B) 15,398 691,769
Rhone-Poulenc S.A. (Class A) 19,405 879,131
Schneider S.A. 12,564 696,222
Societe Generale 3,879 746,562
Total S.A. (Class B) 10,220 1,260,847
9,899,263
[ICON OMITTED]
GERMANY -- 13.1%
Bayerische Vereinsbank AG 12,717 761,764
DaimlerChrysler AG 8,841 770,482(a)
Fresenius Medical Care AG 9,326 564,689
Mannesmann AG 13,232 1,692,529
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) 1,691 341,909(a)
Muenchener Rueckversicherungs-
Gessellschaft AG 1,495 298,238
Preussag AG 2,952 1,586,349
Veba AG 9,004 474,122
Viag AG 429 236,984
Volkswagen AG 2,476 165,182
6,892,248
GREECE -- 1.2%
Alpha Credit Bank (Regd.) 968 64,431
Hellenic Telecommunication
Organization S.A. ADR 16,517 193,042
Hellenic Telecommunication
Organization S.A. 15,030 365,619
623,092
HONG KONG -- 0.7%
Giordano International Ltd. 250,000 77,425
Johnson Electric Holdings 111,900 315,506
392,931
IRELAND -- 1.5%
Bank of Ireland 22,755 473,184
CRH PLC 20,030 344,081
817,265
ISRAEL -- 3.5%
Comverse Technology Inc. 6,094 517,990(a)
ECI Telecommunications Ltd. 24,054 841,890
Teva Pharmaceutical Industries
Ltd. ADR 10,359 491,405
1,851,285
[ICON OMITTED]
ITALY -- 7.5%
Assicurazioni Generali 15,061 604,162
Banca Intesa S.p.A. 110,732 653,720
- -------------
See Notes to Schedules of Investments and Financial Statements.
34
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Montedison S.p.A. 441,125 $ 457,887
Saipem 105,742 411,601
Telecom Italia Mobile S.p.A. 102,390 689,718
Telecom Italia S.p.A. 4,182 24,870(n)
Telecom Italia S.p.A. 84,536 899,420
Unicredito Italiano S.p.A. 35,481 191,819
3,933,197
JAPAN -- 5.9%
Canon Inc. 23,000 569,100
Honda Motor Co. 7,000 316,261
Minebea Co. Ltd. 39,000 403,125
NTT Data Corp. 11 85,091
Shin-Etsu Chemical Co. 13,000 341,426
Sony Corp. 8,600 795,254
Toshiba Corp. 90,000 614,871
3,125,128
LUXEMBOURG -- 0.0%
Societe Europeenne de
Communication S.A. ADR
(Class A) 46 529(a)
Societe Europeenne de
Communication S.A. ADR
(Class B) 418 5,121(a)
5,650
MEXICO -- 1.9%
Desc S.A. de C.V. (Series B) 59,252 70,968
Desc S.A. de C.V. ADR (Class C) 9,037 241,175
Gruma S.A. de C.V. (Series B) 18,266 39,725(a)
Grupo Carso S.A. de C.V. ADR 36,621 297,546
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 161,243 335,429(a)
Grupo Televisa S.A. GDR 622 19,515
1,004,358
[ICON OMITTED]
NETHERLANDS -- 6.3%
IHC Caland N.V. 12,435 470,587
ING Groep N.V. 23,724 1,309,512
Ispat International N.V. (Regd.)
(Class A) 11,719 87,160
Koninklijke Ahold N.V. 17,701 679,442
Philips Electronics N.V. 9,591 782,436
3,329,137
PANAMA -- 0.2%
Panamerican Beverages Inc.
(Class A) 4,928 86,548
PHILIPPINES -- 0.2%
San Miguel Corp. S.A. 62,798 104,528
POLAND -- 0.5%
Telekomunikacja Polska
S.A. GDR 52,938 280,571 (a,b)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PORTUGAL -- 0.9%
Banco Comercial Portugues
(Regd.) 9,404 $ 284,706
Jeronimo Martins, SGPS, S.A. 3,680 131,307
Jeronimo Martins, SGPS, S.A. 1,226 43,745(a)
459,758
SOUTH AFRICA -- 0.4%
Barlow Ltd. 37,435 200,488
SOUTH KOREA -- 0.3%
Pohang Iron & Steel Co. Ltd. 2,300 140,624
SPAIN -- 1.7%
Argentaria S.A. 25,948 624,532
Repsol S.A. 3,306 170,509
Telefonica S.A. 2,279 96,817
891,858
SWEDEN -- 4.7%
Autoliv Inc. SDR 25,397 967,888
Ericsson LM Telephone
(Series B) 21,481 523,098
Investor AB (Series B) 1,651 72,368
Invik & Co. AB 1,383 90,089
Kinnevik AB (Series B) 2,766 53,043
NetCom Systems AB (Series B) 5,989 204,179(a)
Pharmacia & Upjohn Inc. 9,316 581,085
2,491,750
SWITZERLAND -- 3.2%
ABB AG 246 326,234
Credit Suisse AG 2,386 446,027
Novartis AG (Regd.) 319 518,757
Zurich Allied AG (Regd.) 606 388,690
1,679,708
TAIWAN -- 1.2%
Taiwan Semiconductor
Manufacturing Co. 209,450 657,197(a)
[ICON OMITTED]
UNITED KINGDOM -- 15.5%
Airtours PLC 135,028 991,912
Bank of Scotland PLC 13,073 173,811
Billiton PLC 58,599 142,385
Cable & Wireless
Communication PLC 61,053 689,990(a)
Canary Wharf Group PLC 15,206 81,261(a)
Commercial Union PLC 14,995 235,800
FKI PLC 155,980 395,372
Granada Group PLC 46,620 940,850
Great Universal Stores PLC 20,775 218,353
Johnson Matthey PLC 14,701 110,723
Nycomed Amersham PLC 21,082 183,118
- ----------------
See Notes to Schedules of Investments and Financial Statements.
35
<PAGE>
GE INTERNATIONAL EQUITY FUND MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Railtrack Group PLC 6,030 $ 137,854
Reed International PLC 26,653 237,102
Royal & Sun Alliance Insurance
Group PLC 74,709 705,613
Saatchi & Saatchi PLC 19,646 65,499
SEMA Group PLC 57,803 649,527
BTR Siebe PLC 355,755 1,566,584
Somerfield PLC 76,175 390,476
Vodafone Group PLC 13,703 254,420
8,170,650
TOTAL COMMON STOCK
(COST $47,035,258) 51,592,616
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.1%
- --------------------------------------------------------------------------------
Fresenius Medical Care AG
(COST $115,709) 1,781 67,400
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 57 2,034(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $47,150,967) 51,662,050
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.6%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $320,025) 320,025 320,025
OTHER ASSETS AND LIABILITIES,
NET 1.5% 769,356
---------
NET ASSETS-- 100% $52,751,431
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE International Equity Fund invested in the following sectors at March 31,
1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Capital Equipment 25.01%
Finance 23.04%
Services 21.55%
Consumer Goods 15.84%
Energy 6.38%
Multi Industry 4.30%
Materials 3.53%
Cash and Other 0.35%
---------
100.00%
=========
- ---------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE COUNTRY WEIGHTINGS IN THE GE INTERNATIONAL EQUITY
FUND AT MARCH 31, 1999.
36
<PAGE>
GE EUROPE EQUITY FUND
Q&A
MICHAEL SOLECKI LEADS THE TEAM OF PORTFOLIO MANAGERS FOR THE GE EUROPE EQUITY
FUND (PLEASE REFER TO PAGE 27 FOR MIKE'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE GE EUROPE EQUITY FUND'S BENCHMARK PERFORM FOR THE PERIOD SINCE
INCEPTION (JANUARY 29, 1999) THROUGH MARCH 31, 1999?
A. The MSCI Europe Index posted a (1.48)% return for the period since the fund's
inception (January 29, 1999) through March 31, 1999. To see how your class of
GE Europe Fund shares performed compared to its benchmark, please refer to
page 38.
Q. WHAT DROVE THE FUND'S PERFORMANCE?
A. Stock selection is key to the performance of the GE Europe Equity Fund.
Although European markets declined for the two-month period, a number of the
fund's energy and capital goods stocks did extremely well. Economic growth
rates declined in Europe during the first quarter of 1999 because countries
such as Germany were expecting weaker growth. Investors were also concerned
about internal turmoil at the European Union Central Bank. Finally, the Euro
premiered January 1, 1999 at 116, then fell to 108.
The benefits of the weaker Euro have yet to be seen.
Q. WHAT IS YOUR INVESTMENT STRATEGY?
A. Before investing in a company, the fund considers the region within Europe
where it is located, its primary securities trading market, the location of
its assets, and where the company derives at least half of its revenues and
profits. The fund looks for undervalued growth companies that trade at an
attractive price to cash price earnings relative to their growth rate.
Q. WHICH INVESTMENTS STAND OUT?
A. Top performers were in energy and capital goods. Oil prices recovered and
capital goods companies performed well because of recent interest rate
declines. Holdings with high returns included French oil companies Total and
Elf Aquitaine; Alstom, a French capital goods company; and BTR Siebe, a
process controls company in the United Kingdom.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. Looking ahead, we believe the cuts in Europe's interest rates will stimulate
long-term growth. The European Union Central Bank recently lowered rates
from 3% to 2.5%. During the next decade, we expect Europe's markets to
mirror the U.S market where low interest rates, low inflation, and corporate
rationalization spurred growth.
[PHOTO OF C. SALDANHA, W. CHU, M. SOLECKI OMITTED]
(PICTURED LEFT TO RIGHT: C. SALDANHA, W. CHU, M. SOLECKI)
37
<PAGE>
GE EUROPE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Total S.A. 3.89%
- --------------------------------------------------------------------------------
Mannesmann AG 3.86%
- --------------------------------------------------------------------------------
Preussag AG 3.75%
- --------------------------------------------------------------------------------
AXA-UAP 3.26%
- --------------------------------------------------------------------------------
BTR Siebe PLC 2.86%
- --------------------------------------------------------------------------------
ING Groep N.V. 2.78%
- --------------------------------------------------------------------------------
Rhone-Poulenc S.A. 2.76%
- --------------------------------------------------------------------------------
Telecom Italia S.p.A. 2.55%
- --------------------------------------------------------------------------------
Philips Electronics N.V. 2.53%
- --------------------------------------------------------------------------------
Cable & Wireless Communication PLC2.51%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for
investors who seek long-term
growth of capital by investing
primarily in equity securities of
issuers located in developed
European countries.
- --------------------------------------------------------------------------------
TOP THREE BEST AND WORST
PERFORMING STOCKS
DURING THE TWO-MONTH PERIOD
ENDED MARCH 31, 1999
- --------------------------------------------------------------------------------
BEST WORST
----- -----
Nycomed Amersham +32.91% Helsingin Puhelin -26.51%
- --------------------------------------------------------------------------------
Unique Intl NV +32.79% TeleDanmark A/S -26.27%
- --------------------------------------------------------------------------------
BTR Siebe +30.98% Samp -26.09%
- --------------------------------------------------------------------------------
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
1/29/99 $10000.00 $10000.00 $1000l.00
FEB-99 9470.00 8925.47 9746.20
MAR-99 9620.00 9066.85 9852.43
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (3.80)%
GE Europe Equity
w/load (9.33)%
(maximum load-5.75%)
MSCI Europe (1.48)%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
1/29/99 $10000.00 $10000.00 $10000.00
FEB-99 9470.00 9470.00 9746.2
MAR-99 9610.00 9225.60 9852.43
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (3.90)%
GE Europe Equity
w/load (7.74)%
maximum load 4.0%
MSCI Europe (1.48)%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY MSCI EUROPE
1/29/99 $10000.00 $10000.00
FEB-99 9470.00 9746.20
MAR-99 9620.00 9852.43
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (3.80)%
MSCI Europe (1.48)%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY MSCI EUROPE
1/29/99 $10000.00 $10000.00
FEB-99 9470.00 9746.20
MAR-99 9630.00 9852.43
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (3.70)%
MSCI Europe (1.48)%
38
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE EUROPE EQUITY FUND
[PIE CHART OMITTED]
DEVELOPED EUROPE 93.8%
EMERGING OTHER REGIONS 2.6%
CASH & OTHER 1.9%
EMERGING EUROPE 1.7%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 97.6%
- --------------------------------------------------------------------------------
DENMARK -- 1.5%
Novo-Nordisk AS (Series B) 842 $ 94,271
Tele Danmark AS (Series B) 539 53,450
147,721
FINLAND -- 5.3%
Helsingin Puhelin Oyj 3,276 160,461
Merita Ltd. (Series A) 9,394 50,380
Nokia Oyj (Series A) 504 81,252
Sampo Insurance Co. Ltd.
(Series A) 4,939 154,868
Sonera Group Oyj 5,285 88,002(a)
534,963
[ICON OMITTED]
FRANCE -- 22.9%
Alstom 6,369 189,378(a)
AXA-UAP 2,473 328,359
Cap Gemini S.A. 1,143 191,683
Carrefour S.A. 165 127,382
Coflexip S.A. ADR 2,672 92,184
Elf Aquitaine S.A. ADR 1,490 202,672
Lyonnaise Des Eaux S.A. 379 70,239
Michelin CGDE (Regd.)
(Class B) 2,393 107,508
Rhone-Poulenc S.A. (Class A) 6,141 278,214
Schneider S.A. 2,556 141,638
Societe Generale 961 184,956
Total S.A. (Class B) 3,183 392,688
2,306,901
[ICON OMITTED]
GERMANY -- 13.2%
Bayerische Vereinsbank AG 2,447 146,578
DaimlerChrysler AG 1,354 117,999(a)
Debitel AG 566 18,605(a)
Fresenius Medical Care AG 2,309 139,810
Mannesmann AG 3,046 389,619
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) 150 $ 30,329(a)
Preussag AG 704 378,316
PrimaCom AG 1 35(a)
Veba AG 2,136 112,475
1,333,766
GREECE -- 1.1%
Hellenic Telecommunication
Organization S.A. ADR 3,871 45,242
Hellenic Telecommunication
Organization S.A. 2,820 68,599
113,841
IRELAND -- 2.8%
Bank of Ireland 3,629 75,464
CRH PLC 9,467 162,627
Esat Telecom Group PLC ADR 1,120 46,900(a)
284,991
ISRAEL -- 2.6%
Comverse Technology Inc. 1,161 98,685(a)
ECI Telecommunications Ltd. 4,734 165,690
264,375
[ICON OMITTED]
ITALY -- 8.4%
Alleanza Assicurazioni 3,979 47,540
Assicurazioni Generali 4,185 167,879
Banca Intesa S.p.A. 9,788 57,785
Montedison S.p.A. 30,114 31,258
Saipem 31,406 122,248
Telecom Italia Mobile S.p.A. 18,519 124,747
Telecom Italia S.p.A. 6,112 36,347(n)
Telecom Italia S.p.A. 24,211 257,593
845,397
[ICON OMITTED]
NETHERLANDS -- 8.5%
IHC Caland N.V. 3,074 116,332
ING Groep N.V. 5,085 280,681
Koninklijke Ahold N.V. 3,399 130,468
Philips Electronics N.V. 3,125 254,938
Unique International N.V. 1,404 40,608
United Pan-Europe
Communications 1,009 39,603(a)
862,630
NORWAY -- 0.7%
Petroleum Geo Services 4,712 71,995(a)
POLAND -- 0.6%
Telekomunikacja Polska
S.A. GDR 10,735 56,895(a,b)
- ------------
See Notes to Schedules of Investments and Financial Statements.
39
<PAGE>
GE EUROPE EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PORTUGAL -- 0.8%
Jeronimo Martins, SGPS, S.A. 1,690 $ 60,301
Jeronimo Martins, SGPS, S.A. 563 20,089(a)
80,390
SPAIN -- 2.3%
Argentaria S.A. 7,045 169,564
Telefonica S.A. 1,373 58,328
227,892
SWEDEN -- 4.1%
Autoliv Inc. SDR 5,284 201,375
Ericsson LM Telephone
(Series B) 8,700 211,859
413,234
SWITZERLAND -- 3.7%
ABB AG 71 94,157
Credit Suisse AG 435 81,317
Julius Baer Holding Ltd. 13 42,255
Novartis AG (Regd.) 93 151,236
368,965
[ICON OMITTED]
UNITED KINGDOM -- 19.1%
Airtours PLC 15,656 115,008
Cable & Wireless
Communication PLC 22,373 252,848(a)
Commercial Union PLC 7,429 116,823
Computacenter PLC 8,914 81,313
FKI PLC 31,140 78,933
Granada Group PLC 9,990 201,611
Great Universal Stores PLC 11,981 125,925
Johnson Matthey PLC 7,569 57,007
Mayflower Corp. PLC 18,440 52,398
Next PLC 1,655 18,971
Nycomed Amersham PLC 5,254 45,636
Reed International PLC 12,643 112,471
Royal & Sun Alliance Insurance
Group PLC 15,488 146,281
Select Appointments
Holdings PLC 1,376 18,483
SEMA Group PLC 2,439 27,407
BTR Siebe PLC 65,439 288,164
Somerfield PLC 23,692 121,446
United Assurance Group PLC 4,287 30,385
Williams PLC 4,785 30,901
1,922,011
TOTAL COMMON STOCK
(COST $10,179,417) 9,835,967
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
- --------------------------------------------------------------------------------
Fresenius Medical Care AG
(COST $49,336) 1,306 $ 49,424
TOTAL INVESTMENTS IN SECURITIES
(COST $10,228,753) 9,885,391
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.5%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $54,049) 54,049 54,049
OTHER ASSETS AND LIABILITIES,
NET 1.4% 143,855
-----------
NET ASSETS-- 100% $10,083,295
===========
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Europe Equity Fund invested in the following sectors at March 31, 1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Services 26.52%
Capital Equipment 21.50%
Finance 20.94%
Consumer Goods 13.25%
Energy 9.00%
Multi Industry 3.75%
Materials 2.89%
Cash and Other 2.15%
---------
100.00%
=========
- ----------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE COUNTRY WEIGHTINGS IN THE GE EUROPE EQUITY FUND AT
MARCH 31, 1999.
40
<PAGE>
GE EMERGING MARKETS FUND
Q&A
RALPH LAYMAN LEADS A TEAM OF PORTFOLIO MANAGERS FOR THE GE EMERGING MARKETS FUND
(PLEASE REFER TO PAGE 27 FOR RALPH'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE GE EMERGING MARKETS FUND'S BENCHMARK PERFORM FROM THE PERIOD OF
THE FUND'S INCEPTION (JANUARY 29, 1999) THROUGH MARCH 31, 1999?
A. The MSCI Emerging Markets Free Index posted a return of 14.28% for the period
since inception (January 29, 1999) through March 31, 1999. To see how your
class of GE Emerging Markets Fund shares performed compared to its benchmark,
please refer to page 42.
Q. WHAT IS YOUR INVESTMENT STRATEGY?
A. The GE Emerging Markets Fund invests primarily in companies located in
emerging markets that are expected to grow faster than relevant markets and
whose security price does not fully reflect their potential growth. An
emerging market country is any country having an economy and market that are
considered by the World Bank to be emerging or developing or listed in the
Morgan Stanley Capital International Emerging Markets Index. These countries
are located in regions such as Asia, Latin America, the Middle East,
Southern Europe, Eastern Europe and Africa. We identify growth companies
with low prices relative to their long-term cash earnings potential. We
focus on those companies that we believe the market will recognize shortly,
resulting in an increase in the market rating of the shares.
Q. WHAT DROVE THE FUND'S PERFORMANCE?
A. The fund's performance was driven by individual stock selection rather than
by regional or country allocations. Although the fund was slightly
underweight in Latin America, we benefited from a neutral weighting in
Brazil, whose market rose 47% over two months, and an overweight in Mexico,
which gained 30%. Strong stock selection compensated for the fund's
underweighting in Russia, whose market grew 84%.
Q. WHICH INVESTMENTS STAND OUT?
A. Indian-based software companies had high returns for the two-month period.
Our investment in Pentafour rose 27%. Other notable investments included
Tansas, a Turkish retailer, which was up 85% for the period.
Q. WILL CONFLICT IN THE BALKANS AFFECT FUND PERFORMANCE?
A. Currently, the situation has not had a significant effect on the fund. If
the conflict spreads or Russia gets involved, then it could have serious
consequences for Europe's emerging markets. We have made one change in the
region. Due to of Greece's proximity to the Balkans and its high market
valuations, we have steadily reduced our exposure in that country.
Presently, our holdings in Greek-based companies are slightly underweight
compared to the fund's benchmark.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We expect to remain neutral to slightly underweight in Latin America. Right
now, the fund is overweight in Europe and underweight in Asia. With 23% of
our portfolio in Asia, versus the benchmark's 36.8%, we are moving some
money from Europe into Asia. We are identifying Asian growth companies that
should become market leaders five years from now. We also plan to pick up
some companies that are still recovering from the region's economic turmoil
of the past two years. Overall, we expect to remain overweight in the
technology sector. Finally, we remain cautious about Russia's macro-economic
and political environment and the lack of corporate disclosure.
(PICTURED LEFT TO RIGHT: D. MOTOYOSHI, D. BARKER, P. NESTRO, P. GILLESPIE,
M. SUMINO, P. ZHOU)
[PHOTO OF D. MOTOYOSHI, D. BARKER, P. NESTRO, P. GILLESPIE, M. SUMINO,
P. ZHOU OMITTED]
41
<PAGE>
GE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
India Growth Fund Inc. 3.95%
- --------------------------------------------------------------------------------
Pentafour Software & Exports
Ltd. GDR 3.40%
- --------------------------------------------------------------------------------
Taiwan Fund Inc. GDR 3.02%
- --------------------------------------------------------------------------------
Telecomunicacoes Brasileiras
S.A. ADR 2.83%
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. 2.80%
- --------------------------------------------------------------------------------
New Dimension Software Ltd. 2.72%
- --------------------------------------------------------------------------------
The India Fund Inc. 2.07%
- --------------------------------------------------------------------------------
A.G. Petzetakis S.A. 1.92%
- --------------------------------------------------------------------------------
Delta Informatics S.A. (Regd.) 1.81%
- --------------------------------------------------------------------------------
Grupo Televisa S.A. GDR 1.70%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors
who seek long-term growth of
capital by investing primarily in
equity securities of issuers that
are located in emerging markets
countries.
- --------------------------------------------------------------------------------
TOP THREE BEST AND WORST
PERFORMING STOCKS
DURING THE TWO-MONTH PERIOD
ENDED MARCH 31, 1999
- --------------------------------------------------------------------------------
BEST WORST
----- -----
Stet Hellas
Bco Est Sao Paulo +131.33% Telecommunications -37.14%
- --------------------------------------------------------------------------------
Ranbaxy Labs +111.39% Mezogazdasagi Cepg -31.87%
- --------------------------------------------------------------------------------
Sabesp Cia Saneam +107.30% Panafon Hellenic T -29.75%
- --------------------------------------------------------------------------------
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE CHART OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MS EMERGING MARKETS FREE
1/29/99 $10000.00 $10000.00 $10000.00
FEB-99 9840.00 9274.20 10097.30
MAR-99 11170.00 10527.72 11428.02
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 11.70%
GE Emerging Markets
w/load 5.28%
(maximum load-5.75%)
MSCI EMF 14.28%
CLASS B SHARES
[LINE CHART OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MS EMERGING MARKETS FREE
1/29/99 $10000.00 $10000.00 $10000.00
FEB-99 9840.00 9840.00 10097.30
MAR-99 11160.00 10760.00 11428.02
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 11.60%
GE Emerging Markets
w/load 7.60%
maximum load 4.0%
MSCI EMF 14.28%
CLASS C SHARES
[LINE CHART OMITTED]
GE EMERGING MARKETS MS EMERGING MARKETS FREE
1/29/99 $10000.00 $10000.00
FEB-99 9840.00 10097.30
MAR-99 11180.00 11428.02
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 11.80%
MSCI EMF 14.28%
CLASS D SHARES
[LINE CHART OMITTED]
GE Emerging Markets MS Emerging Markets Free
1/29/99 $10000.00 $10000.00
Feb-99 9850.00 10097.30
Mar-99 11180.00 11428.02
42
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE EMERGING MARKETS FUND
[PIE CHART OMITTED]
LATIN AMERICA 28.2%
ASIA 26.6%
MIDDLE EAST 16.0%
EUROPE 9.6%
EASTERN EUROPE 8.2%
CASH & OTHER 6.1%
AFRICA 3.9%
SOUTHERN EUROPE 1.4%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 85.3%
- --------------------------------------------------------------------------------
ARGENTINA -- 2.1%
Banco De Galicia y Buenos Aires
S.R. ADR (Class B) 3,315 $ 53,247
Telefonica de Argentina
S.A. ADR (Class B) 2,401 72,630
YPF S.A. ADR (Class D) 3,613 114,036
239,913
BRAZIL -- 1.1%
Companhia de Saneamento
Basicode Estado
de Sao Paulo 478,390 30,098
Uniao de Bancos Brasilieros
S.A. GDR 4,777 91,957
122,055
CHILE -- 1.2%
Companhia de Telecomunicaciones
de Chile S.A. ADR 2,479 58,412
Sociedad Quimica y Minera de
Chile S.A. ADR 814 26,048
Sociedad Quimica y Minera de
Chile S.A. ADR 96 432 (a,m)
Vina Concha Y Toro 1,766 51,876
136,768
CHINA -- 0.3%
Brilliance China Automotive
Holdings Ltd. 606 5,340
Guangdong Kelon Electrical
Holdings Co. Ltd. 7,000 5,149
Jiangsu Expressway Co. Ltd. 30,000 5,884
Shenzhen Expressway Co. Ltd. 90,000 17,537(a)
33,910
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
CROATIA -- 1.4%
Pliva D D GDR (Regd.) 6,092 $ 96,254
Zagrebacka Banka GDR 7,129 68,082(b)
164,336
CZECH REPUBLIC -- 0.6%
Ceske Radiokomunikace GDR 2,054 69,425 (a,b)
DOMINICAN REPUBLIC -- 0.3%
TRICOM S.A. ADR 4,549 37,529(a)
EGYPT -- 2.2%
Al-Ahram Beverages Co.
S.A.E. GDR 1,501 47,056(a)
Egyptian Company for Mobile
Services 8,644 99,661(a)
Olympic Group Financial
Investment Co. 23,220 102,255
248,972
ESTONIA -- 0.8%
Estonian Telecom Ltd. GDR 3,987 87,515(a)
GHANA -- 0.1%
Home Finance Co. 21,419 6,644(a)
[ICON OMITTED]
GREECE -- 9.2%
A.G. Petzetakis S.A. 24,253 221,191
Agricultural Bank of Greece 12,470 80,644(a)
Alfa Beta Vassilopoulos
S.A. (Regd.) 6,430 115,153
Alpha Credit Bank (Regd.) 1,900 126,465
Attica Enterprises S.A. 9,450 80,701
Delta Informatics S.A. (Regd.) 5,480 209,001
Intrasoft S.A. 4,060 96,003
Panafon Hellenic Telecom S.A. 1,960 51,026(a)
STET Hellas Telecommunications
S.A. ADR 2,800 82,950(a)
1,063,134
HUNGARY -- 2.3%
BorsodChem RT 1,006 18,678(a)
Demaz RT GDR 5,817 87,837
Magyar Tavkozlesi RT ADR 1,789 47,856
Mezogazdasagi Gepgyarto RT 7,991 67,827(a)
OTP Bank RT 1,121 43,364
265,562
[ICON OMITTED]
INDIA -- 9.5%
BSES Ltd. GDR 638 6,189(a)
India Growth Fund Inc. 44,380 454,895(a)
Pentafour Software & Exports
Ltd. GDR 14,000 392,000
The India Fund Inc. 25,469 238,772(a)
1,091,856
- --------------
See Notes to Schedules of Investments and Financial Statements.
43
<PAGE>
GE EMERGING MARKETS FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INDONESIA -- 0.5%
PT Astra International Inc. 130,000 $ 12,399(a)
PT Gudang Garam 5,000 6,662
PT Hanjaya Mandala
Sampoerna 20,000 16,416
PT International Nickel 21,500 11,806
PT Mulia Industrindo 222,500 8,360
PT Unilever Indonesia 2,000 4,046
59,689
[ICON OMITTED]
ISRAEL -- 10.5%
Comverse Technology Inc. 1,630 138,550(a)
ECI Telecommunications Ltd. 3,275 114,625
Fundtech Ltd. 4,915 148,064(a)
Geo Interactive Media
Group PLC 30,664 38,368(a)
New Dimension Software Ltd. 6,045 313,585(a)
Orbotech Ltd. 2,801 137,599(a)
Sapiens International Corp. N.V. 13,380 139,654(a)
Tecnomatix Technologies Ltd. 5,452 72,239(a)
Teva Pharmaceutical Industries
Ltd. ADR 2,346 111,288
1,213,972
KAZAKHSTAN -- 1.0%
Efes Sinai Yatirim Holding A.S. 6,939,259 96,727(a)
Kazkommertsbank GDR 5,898 25,067(a)
121,794
[ICON OMITTED]
MEXICO -- 14.8%
Cemex S.A. de C.V. 13,159 55,232
Cifra S.A. de C.V. 55,851 87,667(a)
Coca-Cola Femsa S.A.
de C.V. ADR 5,454 88,968
Controladora Comercial
Mexicana S.A. de C.V. 72,642 71,436
Desc S.A. de C.V. (Series B) 64,248 76,952
Fomento Economico Mexicano
S.A. de C.V. ADR 2,630 81,366
Geo S.A. de C.V. 40,271 117,200(a)
Gruma S.A. de C.V. (Series B) 23,062 50,156(a)
Grupo Carso S.A. de C.V. ADR 5,401 43,883
Grupo Continental S.A. 34,864 98,900
Grupo Elektra S.A. de C.V. GDR 2,886 18,759
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 41,372 89,542(a)
Grupo Financiero Bancomer
S.A. ADR (Series C) 19,256 127,571(b)
Grupo Financiero Banorte
S.A. de C.V. 119,865 156,915(a)
Grupo Industrial Bimbo
S.A. de C.V. 33,850 75,396
Grupo Televisa S.A. GDR 6,234 195,592
Kimberly-Clark de Mexico,
S.A. de C.V. 12,143 45,737
Pepsi-Gemex S.A. de C.V. GDR 2,337 21,179(a)
Telefonos de Mexico S.A. ADR 2,640 172,920
TV Azteca S.A de C.V. ADR 1,224 7,650
Vitro S.A. ADR 3,404 19,786
1,702,807
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
NETHERLANDS -- 0.4%
Indigo N.V. 9,596 $ 49,779(a)
PANAMA -- 0.1%
Banco Latinoamericano de
Exportaciones, S.A. 364 9,464
PHILIPPINES -- 1.9%
Benpres Holdings Corp. 291,200 45,089(a)
Metropolitan Bank & Trust Co. 10,500 83,322
Philippine Commercial
International Bank 6,560 37,075
San Miguel Corp. S.A. 24,000 39,948
Solid Group Inc. 314,700 5,035(a)
SPI Technologies Inc. 15,100 10,132
220,601
POLAND -- 3.2%
Agora GDR (Regd.) 3,469 36,598(a)
Elektrim Spolka Akeyjna S.A. 7,299 77,649
Prokom Software S.A. GDR 7,198 120,206(b)
Telekomunikacja
Polska S.A. GDR 24,936 132,161 (a,b)
366,614
RUSSIA -- 1.3%
Oyj Hartwall Abp 3,610 45,278
PLD Telekom Inc. 21,856 84,692(a)
Sun Brewing Ltd. GDR 6,547 16,695(a)
146,665
SINGAPORE -- 1.4%
Datacraft Asia Ltd. 69,769 163,259(a)
SOUTH AFRICA -- 3.8%
Dimension Data Holdings Ltd. 23,279 103,517(a)
M-Cell Ltd. 17,258 26,888
Metro Cash & Carry Ltd. 117,069 91,197
Nedcor Ltd. 6,118 136,623
Network Healthcare
Holdings Ltd. 168,466 32,809(a)
The Education Investment
Corp. Ltd. 37,173 45,246
436,280
SOUTH KOREA -- 5.7%
Dae Duck Electronics Co. 1,190 88,644
Medison Co. Ltd. 13,190 133,297(a)
Mirae Co. 13,040 47,186
Pohang Iron & Steel Co. Ltd. 1,990 121,670
S1 Corp. 350 66,178
Samsung Display Devices Co. 380 18,675
Samsung Electronics 1,000 77,425
Sindo Ricoh Co. 1,050 38,252
Youngone Corp. 2,650 69,760
661,087
- ----------------
See Notes to Schedules of Investments and Financial Statements.
44
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
TAIWAN -- 5.8%
The Taiwan Fund, Inc. 25,404 $ 347,717
Taiwan Semiconductor
Manufacturing Co. 13,664 322,812(a)
670,529
THAILAND -- 0.5%
Banpu Public Co. Ltd. 7,100 8,318(a)
Hana Microelectronics Public
Co. Ltd. 7,100 12,289(a)
Siam Cement Public Co. Ltd. 1,600 32,379(a)
52,986
TURKEY -- 3.3%
Aksigorta A.S. 1,508,000 78,826
Dogan Yayin Holding 7,188,000 50,097(a)
Enka Holding Yatirim A.S. 189,000 29,385
Migros Turk T.A.S. 66,000 86,691
Tansas A.S. 432,503 136,226
381,225
TOTAL COMMON STOCK
(COST $8,886,274) 9,824,370
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 8.6%
- --------------------------------------------------------------------------------
Bancodo Estado de Sao
Paulo S.A. 856,443 38,952
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar GDR 4,161,652 61,393
Companhia Energetica
de Minas Gerais 5,052,708 112,986
Companhia Paranaense
de Energia-Copel 14,165,186 106,879
Companhia Riograndense
de Telecomunicacoes 24,252 7,353
Companhia Vale do
Rio Doce ADR 2,218 32,656(a)
Embratel Participacoes S.A. ADR 5,279 88,093(a)
Tele Centro Sul Participacoes
S.A. ADR 954 44,063(a)
Tele Norte Leste
Participacoes S.A. ADR 723 11,116(a)
Telecomunicacoes Brasileiras
S.A. ADR 4,044 326,048(a)
Telecomunicacoes de
Sao Paulo S.A. - Telesp 1,001,010 122,865
Telesp Celular Participacoes
S.A. ADR 477 9,987
Telesp Celular S.A. 1,002,391 37,407(a)
TOTAL PREFERRED STOCK
(COST $757,793) 999,798
TOTAL INVESTMENTS IN SECURITIES
(COST $9,644,067) 10,824,168
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.4%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $738,545) 738,545 $ 738,545
OTHER ASSETS AND LIABILITIES,
NET (0.3)% (35,588)
-----------
NET ASSETS-- 100% $11,527,125
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Emerging Markets Fund invested in the following sectors at March 31,
1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Services 26.35%
Capital Equipment 23.87%
Finance 19.11%
Consumer Goods 11.70%
Materials 5.94%
Energy 3.72%
Multi Industry 3.13%
Cash and Other 6.18%
----------
100.00%
==========
- --------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE COUNTRY WEIGHTINGS IN THE
GE EMERGING MARKETS FUND AT MARCH 31, 1999.
45
<PAGE>
GE STRATEGIC 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: DAVE MANAGES THE DOMESTIC EQUITY INVESTMENTS IN THE PORTFOLIO (PLEASE
REFER TO PAGE 8 FOR DAVE'S BIOGRAPHICAL DETAILS), RALPH MANAGES THE
INTERNATIONAL EQUITY HOLDINGS WITHIN THE PORTFOLIO (PLEASE REFER TO PAGE 27 FOR
RALPH'S BIOGRAPHICAL DETAILS) AND BOB MANAGES THE FIXED INCOME RELATED
INVESTMENTS IN THE PORTFOLIO (PLEASE REFER TO PAGE 56 FOR BOB'S BIOGRAPHICAL
DETAILS).
Q. HOW DID THE GE STRATEGIC INVESTMENT FUND'S BENCHMARKS AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The 435 funds in the Lipper group of Balanced funds returned 12.58% for the
six-month period ended March 31, 1999. In the fund's various asset classes,
the Standard & Poor's 500 Composite Price Index gained 27.32%; the Morgan
Stanley Capital International EAFE Index advanced 22.34% and the Lehman
Brothers Aggregate Bond Index returned (0.17)%. To see how your class shares
in the GE Strategic Investment Fund performed compared to its benchmarks,
please refer to page 47.
Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. The fund did better than its peers because of security selection within its
asset classes. Currently, 46% of the fund is in U.S. equities, 15% in
international equities, 36% in fixed income securities, and 3% in cash. The
percentage that the fund invests in U.S. equities is lower than it was
several years ago and lower than the average for balanced funds. Because we
are concerned about high stock market valuations, we plan to remain at the
low end of our allocation in U.S. equities.
Q. WHAT GLOBAL ECONOMIC TRENDS CONTRIBUTED TO PERFORMANCE?
A. The U.S. stock market remained narrow by historical standards, although it
broadened enough to make winners out of stocks with good underlying
fundamentals. Market sectors that performed well included Technology,
Financial and Consumer - Cyclical. The fund's top U.S. equity holdings were
Citigroup, whose earnings were buoyed by credit card use and consumer
spending; NTL, which supplies cable television services to United Kingdom
(U.K.) customers; and First Data, a provider of bank payment services.
International equity performance was helped by U.K. holdings, where markets
rose 4% during the first quarter of 1999, and by Continental European
stocks. Positions in Latin America and Asia also made small contributions.
Pressaug, the German travel company, Nokia of Finland and Mannesmann of
Germany, both in telecommunications, were among the top international
stocks.
The past six months were volatile in bond markets as concerns about the
economy overheating replaced recession fears. Low mortgage rates, a jump in
oil prices and the possibility that the U.S. Federal Reserve was
reevaluating monetary policy sent long Treasury Bond yields to 5.7% in early
March. The fund increased its exposure in the mortgage and corporate
sectors, which outperformed Treasuries. However, as interest rates rose, the
greater interest rate exposure (duration) was a drag on performance. For
more details on the performance of the three asset classes, see page 4 (GE
U.S. Equity Fund), page 33 (GE International Equity Fund), and page 58 (GE
Fixed Income Fund).
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We do not plan to change the fund's asset class targets while U.S. equities
remain at historically high valuation levels. We expect the U.S. stock
market to remain volatile, with smaller gains than in the past few years. On
the international front, recent cuts in European interest rates should spur
mergers and acquisitions and grow that market. However, investments in Japan
will be limited to companies that are taking steps to restructure
operations. In bonds, the inflation outlook appears benign because global
excess capacity and new technologies, such as the internet, limit
corporations' pricing power. If robust economic activity continues, the
Federal Reserve may tighten monetary policy to limit inflation. Until the
direction of the economy becomes clearer, we expect the market to continue
trading near or at current levels.
46
<PAGE>
GE STRATEGIC INVESTMENT FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Citigroup Inc. 2.22%
- --------------------------------------------------------------------------------
NTL Inc. 1.66%
- --------------------------------------------------------------------------------
First Data Corp. 1.61%
- --------------------------------------------------------------------------------
SPDR Trust 1.41%
- --------------------------------------------------------------------------------
AlliedSignal Inc. 1.37%
- --------------------------------------------------------------------------------
Airtouch Communications Inc. 1.35%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc. 1.27%
- --------------------------------------------------------------------------------
Cardinal Health Inc. 1.18%
- --------------------------------------------------------------------------------
Johnson & Johnson 1.17%
- --------------------------------------------------------------------------------
Merck & Co. Inc. 1.16%
- --------------------------------------------------------------------------------
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.
* LIPPER PERFORMANCE COMPARISON
BALANCED PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 435 416 175
Peer group
average annual
total return: 12.58% 6.47% 14.80%
Lipper categories
in peer group: BALANCED
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC GE STRATEGIC S&P
INVESTMENT INVESTMENT W/LOAD 500 LB AGGREGATE COMPOSITE INDEX**
1/1/94 $10000.00 $10000.00 $10000.00 $10000.00 $10000.00
9579.14 9028.34 9618.15 9712.67 9656.85
9579.14 9040.17 9657.88 9612.81 9642.25
SEP-94 9868.08 9300.67 10132.90 9671.58 9950.37
9820.91 9256.21 10129.82 9708.14 9965.80
10509.08 9904.81 11116.13 10197.82 10747.63
11274.43 10626.15 12175.41 10819.18 11623.32
SEP-95 11853.26 11171.70 13145.54 11031.99 12269.05
12476.93 11759.50 13927.96 11501.83 12917.49
12800.75 12064.71 14685.15 11296.66 13241.49
13144.39 12388.59 15348.14 11361.16 13630.04
SEP-96 13435.17 12662.64 15818.40 11570.35 13987.90
14156.87 13342.85 17147.09 11917.58 14861.99
14177.38 13362.18 17594.16 11851.39 15067.40
15688.10 14786.03 20668.75 12287.94 16848.80
SEP-97 16412.69 15468.96 22223.07 12697.63 17843.86
16658.08 15700.24 22856.04 13071.71 18367.80
17999.38 16964.41 26047.04 13273.41 20005.09
18410.42 17351.82 26910.44 13583.67 20594.08
SEP-98 17329.00 16334.00 24249.15 14157.79 19744.09
19350.91 18239.57 29415.27 14205.13 22233.65
MAR-99 19990.61 18842.54 30872.63 14132.94 22848.32
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Strategic Investment 15.36% 11.06% 15.85% 14.11%
GE Strategic Investment
w/load 8.71% 4.69% 14.49% 12.83%
(maximum load-5.75%)
S&P 500 27.32% 18.53% 26.27% 23.96%
LB Aggregate (0.17)% 6.48% 7.79% 6.81%
Composite Index 15.72% 14.21% 18.80% 17.05%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GE Strategic
Strategic Investment S&P LB Composite
Investment w/load 500 Aggregate Index**
12/22/93 $10000.00 $10000.00 $10000.00 $10000.00 $10000.00
Dec-93 10070.87 10070.87 10000.00 10000.00 10000.00
9640.98 9640.98 9618.15 9712.67 9656.85
9640.98 9640.98 9657.88 9612.81 9642.25
Sep-94 9874.90 9874.90 10132.90 9671.58 9950.37
9819.38 9819.38 10129.82 9708.14 9965.80
10491.68 10491.68 11116.13 10197.82 10747.63
11241.55 11241.55 12175.41 10819.18 11623.32
Sep-95 11803.95 11803.95 13145.54 11031.99 12269.05
12409.85 12409.85 13927.96 11501.83 12917.49
12715.28 12715.28 14685.15 11296.66 13241.49
13033.99 13033.99 15348.14 11361.16 13630.04
Sep-96 13306.23 13306.23 15818.40 11570.35 13987.90
14005.58 14005.58 17147.09 11917.58 14861.99
14012.40 14012.40 17594.16 11851.39 15067.40
15486.67 15486.67 20668.75 12287.94 16848.80
Sep-97 16176.03 16176.03 22223.07 12697.63 17843.86
16374.22 16374.22 22856.04 13071.71 18367.80
17672.96 17672.96 26047.04 13273.41 20005.09
18053.25 18053.25 26910.44 13583.67 20594.08
Sep-98 16970.00 16970.00 24249.15 14157.79 19744.09
18927.83 18927.83 29415.27 14205.13 22233.65
Mar-99 19531.49 19531.49 30872.63 14132.94 22848.32
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Strategic Investment 15.10% 10.52% 15.17% 13.53%
GE Strategic Investment
w/load 11.10% 6.52% 15.17% 13.53%
maximum load 4.0% 4.0% 0.0% 0.0%
S&P 500 27.32% 18.53% 26.27% 23.96%
LB Aggregate (0.17)% 6.48% 7.79% 6.81%
Composite Index 15.72% 14.21% 18.80% 17.05%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC INVESTMENT S&P 500 LB AGGREGATE COMPOSITE INDEX**
2/22/93 $10000.00 $10000.00 $10000.00 $10000.00
10309.14 10216.10 10042.00 10146.46
10436.83 10268.05 10308.71 10286.96
SEP-93 10806.46 10530.86 10577.38 10552.96
10928.42 10775.93 10583.12 10702.36
10482.79 10364.46 10279.04 10335.11
10462.21 10407.27 10173.36 10319.48
SEP-94 10777.59 10919.15 10235.55 10649.25
10729.24 10915.83 10274.25 10665.76
11488.09 11978.67 10792.48 11502.50
12331.24 13120.14 11450.07 12439.70
SEP-95 12970.65 14165.55 11675.28 13130.78
13654.56 15008.68 12172.53 13824.76
14023.21 15824.63 11955.39 14171.53
14399.09 16539.05 12023.65 14587.37
SEP-96 14731.61 17045.81 12245.04 14970.36
15525.56 18477.59 12612.52 15905.84
15562.97 18959.35 12542.46 16125.68
17231.49 22272.51 13004.47 18032.19
SEP-97 18039.57 23947.44 13438.06 19097.15
18324.57 24629.52 13833.94 19657.89
19811.42 28068.12 14047.41 21410.17
20278.03 28998.52 14375.76 22040.53
SEP-98 19100.00 26130.73 14983.36 21130.84
21341.19 31697.70 15033.61 23795.26
MAR-99 22062.24 33268.15 14957.20 24453.10
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Strategic Investment 15.51% 11.36% 16.05% 13.84%
S&P 500 27.32% 18.53% 26.27% 21.83%
LB Aggregate (0.17)% 6.48% 7.79% 6.84%
Composite Index 15.72% 14.21% 18.80% 15.82%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC INVESTMENT S&P 500 LB AGGREGATE COMPOSITE INDEX**
11/29/93 $10000.00 $10000.00 $10000.00 $10000.00
10152.68 10123.40 10054.00 10095.64
9745.04 9736.84 9765.12 9749.21
9732.30 9777.06 9664.72 9734.47
SEP-94 10025.30 10257.94 9723.81 10045.54
9993.60 10254.82 9760.57 10061.12
10700.41 11253.31 10252.89 10850.42
11498.86 12325.65 10877.60 11734.49
SEP-95 12100.96 13307.76 11091.56 12386.39
12750.55 14099.83 11563.94 13041.03
13101.36 14866.37 11357.66 13368.13
13472.41 15537.53 11422.51 13760.40
SEP-96 13789.47 16013.60 11632.83 14121.68
14546.31 17358.68 11981.94 15004.13
14588.35 17811.27 11915.38 15211.51
16157.90 20923.81 12354.29 17009.94
SEP-97 16928.65 22497.30 12766.20 18014.52
17204.61 23138.08 13142.29 18543.47
18607.41 26368.46 13345.09 20196.42
19060.16 27242.52 13657.02 20791.04
SEP-98 17962.00 24548.38 14234.25 19932.92
20086.68 29415.27 14205.13 22446.29
MAR-99 20773.06 30872.63 14132.94 23066.84
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Strategic Investment 15.65% 11.64% 16.34% 14.68%
S&P 500 27.32% 18.53% 26.27% 23.53%
LB Aggregate (0.17)% 6.48% 7.79% 6.70%
Composite Index 15.72% 14.21% 18.80% 16.96%
**The Composite Index return is a blended return composed of 60% S&P 500 Index
and 40% LB Aggregate Bond Index.
47
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE STRATEGIC INVESTMENT FUND
[PIE CHART OMITTED]
DOMESTIC EQUITY 46.2%
BONDS AND NOTES 35.4%
FOREIGN EQUITY 14.8%
CASH & OTHER 3.6%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
DOMESTIC EQUITY -- 45.8%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.6%
Air Products & Chemicals Inc. 5,574 $ 190,910
Airgas Inc. 16,832 140,968(a)
Great Lakes Chemical Corp. 3,115 114,476
Morton International Inc. 18,198 668,776
1,115,130
[ICON OMITTED]
CAPITAL GOODS -- 5.2%
Alleghany Corp. Delaware 1,061 195,055(a)
AlliedSignal Inc. 50,174 2,467,934
Dover Corp. 61,556 2,023,654
Emerson Electric Co. 4,041 213,920
Hubbell Inc. (Class B) 20,767 830,680
Molex Inc. (Class A) 39,350 1,018,181
Textron Inc. 3,379 261,450
United Technologies Corp. 2,055 278,324
Waste Management Inc. 46,454 2,061,396
9,350,594
[ICON OMITTED]
CONSUMER - CYCLICAL -- 6.9%
AT&T Corp. - Liberty Media
Group (Class A) 35,522 1,869,345(a)
Carnival Corp. (Class A) 18,581 902,340
Catalina Marketing Corp. 16,778 1,440,811(a)
Comcast Corp. (Class A) 24,101 1,516,857
Gannett Inc. 9,782 616,266
Harman International
Industries Inc. 7,104 261,072
Interpublic Group Cos. Inc. 13,608 1,059,723
NTL Inc. 36,626 2,980,441(a)
Stanley Works 6,941 177,863
Time Warner Inc. 10,274 730,096
Walt Disney Co. 26,989 840,032
12,394,846
CONSUMER - STABLE -- 2.2%
Anheuser Busch Cos. Inc. 6,230 474,648
Avon Products Inc. 17,871 841,054
Coca-Cola Co. 1,640 100,655
Colgate-Palmolive Co. 3,498 321,816
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Gillette Co. 6,831 $ 406,018
Kimberly Clark Corp. 3,277 157,091
Pepsico Inc. 24,101 944,458
Philip Morris Cos. Inc. 21,969 773,034
4,018,774
ENERGY -- 3.0%
Anadarko Petroleum Co. 13,826 521,932
Baker Hughes Inc. 24,865 604,530
Burlington Resources Inc. 8,143 325,211(h)
Exxon Corp. 9,127 644,024
Nabors Industries Inc. 12,733 231,581(a)
Royal Dutch Petroleum Co. ADR 22,297 1,159,444
Schlumberger Ltd. 25,904 1,559,097
Unocal Corp. 10,274 378,212
5,424,031
[ICON OMITTED]
FINANCIAL -- 5.1%
American Express Co. 7,105 834,837
Citigroup Inc. 62,590 3,997,936
Countrywide Credit Industries 4,973 186,488
Federal National Mortgage Assoc. 33,011 2,286,012
State Street Corp. 15,149 1,245,058(e)
Wells Fargo & Co. 20,330 712,821
9,263,152
[ICON OMITTED]
HEALTHCARE -- 9.1%
Abbott Laboratories 40,386 1,890,570
American Home Products Corp. 18,089 1,180,307
Bristol-Myers Squibb Co. 24,592 1,581,573
Cardinal Health Inc. 32,134 2,120,844
Dentsply International Inc. 14,783 343,705
Eli Lilly & Co. 3,279 278,305
Henry Schein Inc. 16,670 420,917(a)
Johnson & Johnson 22,461 2,104,315
Lincare Holdings Inc. 23,776 668,700(a)
Merck & Co. Inc. 26,014 2,085,998
Omnicare Inc. 15,030 286,509
Pfizer Inc. 10,711 1,486,151
Pharmacia & Upjohn Inc. 4,894 305,263
Sybron International Corp. 34,432 860,800(a)
Watson Pharmaceuticals Inc. 15,302 675,201(a)
16,289,158
INSURANCE -- 2.5%
American International
Group Inc. 11,956 1,442,193
Berkshire Hathaway Inc.
(Class B) 426 1,001,526(a)
Chicago Title Corp. 3,120 113,490
Loews Corp. 8,471 632,148
Marsh & McLennan Cos. Inc. 14,646 1,086,550
UNUM Corp. 3,552 168,942
4,444,849
MISCELLANEOUS -- 1.4%
SPDR Trust 19,800 2,540,587
- ----------
See Notes to Schedules of Investments and Financial Statements.
48
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
RETAIL TRADE -- 0.7%
CVS Corp. 6,011 $ 285,522
Home Depot Inc. 15,247 949,126
1,234,648
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 1.8%
Applied Materials Inc. 4,918 303,379(a)
Cisco Systems Inc. 9,837 1,077,767(a)
Hewlett Packard Co. 3,334 226,087
Intel Corp. 11,750 1,396,781
Pitney Bowes Inc. 2,896 184,620
3,188,634
[ICON OMITTED]
TECHNOLOGY - SOFTWARE & SERVICES -- 5.2%
Automatic Data Processing Inc. 37,818 1,564,720(h)
EMC Corp. 5,738 733,030(a)
Equifax Inc. 50,552 1,737,725
First Data Corp. 67,766 2,896,996
Microsoft Corp. 13,662 1,224,457(a)
Reuters Holdings PLC ADR 14,045 1,220,159
9,377,087
TRANSPORTATION -- 0.0%
Pittston Brinks Group 1,637 38,470
UTILITIES -- 2.1%
Airtouch Communications Inc. 25,135 2,428,669(a)
MCI WorldCom Inc. 8,197 725,947(a)
SBC Communications Inc. 11,804 556,264
3,710,880
TOTAL DOMESTIC EQUITY
(COST $53,444,348) 82,390,840
- --------------------------------------------------------------------------------
FOREIGN EQUITY -- 14.8%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.4%
Billiton PLC 30,280 73,575
Ispat International N.V. (Regd.)
(Class A) 5,955 44,290
Johnson Matthey PLC 7,469 56,254
Montedison S.p.A. 231,745 240,551
Pohang Iron & Steel Co. Ltd. 1,024 62,609
Shin-Etsu Chemical Co. 7,000 183,845
661,124
[ICON OMITTED]
CAPITAL GOODS -- 2.5%
ABB AG 123 163,117
Alstom 15,384 457,433(a)
Barlow Ltd. 18,375 98,409
CRH PLC 9,966 171,199
Desc S.A. de C.V. (Series B) 30,542 36,581
Desc S.A. de C.V. ADR (Class C) 4,548 121,375
FKI PLC 81,944 207,709
Grupo Carso S.A. de C.V. ADR 18,606 151,174
Lyonnaise Des Eaux S.A. 1,552 287,626
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Mannesmann AG 6,951 $ 889,115
Minebea Co. Ltd. 20,000 206,731
Preussag AG 1,551 833,478
BTR Siebe PLC 186,896 823,005
VA Technologie AG 998 71,921
4,518,873
[ICON OMITTED]
CONSUMER - CYCLICAL -- 2.4%
Airtours PLC 70,937 521,101
Autoliv Inc. SDR 13,342 508,468
Canon Inc. 12,000 296,922
DaimlerChrysler AG 4,645 404,806(a)
Granada Group PLC 24,492 494,279
Grupo Televisa S.A. GDR 317 9,946
Honda Motor Co. 4,000 180,720
Johnson Electric Holdings 55,600 156,766
Kinnevik AB (Series B) 1,406 26,963
Michelin CGDE (Regd.)
(Class B) 8,089 363,406
Philips Electronics N.V. 5,039 411,083
Reed International PLC 13,259 117,951
Saatchi & Saatchi PLC 9,979 33,269
SEMA Group PLC 30,367 341,231
Societe Europeene de
Communication S.A.
ADR (Class A) 21 242(a)
Societe Europeene de
Communication S.A.
ADR (Class B) 193 2,364(a)
Sony Corp. 4,500 416,121
Volkswagen AG 1,442 96,200
4,381,838
CONSUMER - STABLE -- 0.1%
Gruma S.A. de C.V. (Series B) 9,467 20,589(a)
Panamerican Beverages Inc.
(Class A) 2,465 43,291
San Miguel Corp. S.A. 31,910 53,115
116,995
ENERGY -- 0.9%
Coflexip S.A. ADR 5,082 175,329
Elf Aquitaine S.A. ADR 1,380 187,709
Repsol S.A. 1,677 86,492
Saipem 52,614 204,800
Total S.A. (Class B) 5,369 662,377
Veba AG 4,624 243,485
Viag AG 222 122,635
1,682,827
[ICON OMITTED]
FINANCIAL -- 2.2%
Alpha Credit Bank (Regd.) 510 33,946
Argentaria S.A. 13,632 328,103
Banca Intesa S.p.A. 58,173 343,431
Banco Comercial Portugues
(Regd.) 4,680 141,687
Bank of Ireland 13,456 279,814
Bank of Scotland PLC 6,367 84,652
Bayerische Vereinsbank AG 6,681 400,200
Canary Wharf Group PLC 7,989 42,693(a)
- ------
See Notes to Schedules of Investments and Financial Statements.
49
<PAGE>
GE STRATEGIC INVESTMENT FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Credit Suisse AG 1,253 $ 234,229
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 80,635 167,743(a)
ING Groep N.V. 12,463 687,930
Investor AB (Series B) 839 36,776
Invik & Co. AB 702 45,729
Merita Ltd. (Series A) 44,152 236,787
Newcourt Credit Group Inc. 3,829 103,240
Societe Generale 2,093 402,824
Uniao de Bancos Brasilieros
S.A. GDR 5,769 111,053
Unicredito Italiano S.p.A. 17,104 92,468
Zurich Allied AG (Regd.) 319 204,608
3,977,913
HEALTHCARE -- 1.0%
Fresenius Medical Care AG 4,899 296,634
Novartis AG (Regd.) 167 271,575
Novo-Nordisk AS (Series B) 1,897 212,390
Nycomed Amersham PLC 10,759 93,453
Rhone-Poulenc S.A. (Class A) 10,195 461,878
Shire Pharmaceuticals Group
PLC ADR 5,897 134,525(a)
Teva Pharmaceutical Industries
Ltd. ADR 5,442 258,155
1,728,610
INSURANCE -- 1.3%
Assicurazioni Generali 7,912 317,385
AXA-UAP 6,065 805,295
Commercial Union PLC 7,617 119,779
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) 787 159,127(a)
Muenchener Rueckversicherungs-
Gesellschaft AG 787 156,999
Pohjola Group Insurance Ltd. Co.
(Series B) 1,279 67,763
Royal & Sun Alliance Insurance
Group PLC 39,248 370,690
Sampo Insurance Co. Ltd.
(Series A) 9,099 285,310
2,282,348
RETAIL TRADE -- 0.6%
Carrefour S.A. 458 353,582
Giordano International Ltd. 128,000 39,641
Great Universal Stores PLC 10,913 114,700
Jeronimo Martins, SGPS, S.A. 1,870 66,724(a)
Jeronimo Martins, SGPS, S.A. 623 22,229
Koninklijke Ahold N.V. 9,299 356,936
Somerfield PLC 40,018 205,134
1,158,946
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 1.9%
Brambles Industries Ltd. 16,498 419,378
Cable & Wireless
Communication PLC 32,074 362,484(a)
Comverse Technology Inc. 3,202 272,170(a)
ECI Telecommunications Ltd. 11,933 417,655
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Ericsson LM Telephone
(Series B) 11,285 $ 274,808
NetCom Systems AB (Series B) 3,043 103,743(a)
Nokia Oyj (Series A) 3,089 497,991
Northern Telecom Ltd. 2,599 161,463
Schneider S.A. 6,601 365,788
Taiwan Semiconductor
Manufacturing Co. 106,000 332,599(a)
Toshiba Corp. 46,000 314,268
3,522,347
[ICON OMITTED]
TECHNOLOGY - SOFTWARE & SERVICES -- 0.5%
Cap Gemini S.A. 4,081 684,391
CGI Group Inc. (Class A) 7,777 168,729(a)
NTT Data Corp. 6 46,413
899,533
TRANSPORTATION -- 0.2%
IHC Caland N.V. 6,187 234,139
Railtrack Group PLC 3,053 69,796
303,935
UTILITIES -- 0.8%
Hellenic Telecommunication
Organization S.A. ADR 8,436 98,596
Hellenic Telecommunication
Organization S.A. 7,530 183,174
Helsingin Puhelin Oyj 486 23,805
Telecom Italia Mobile S.p.A. 53,791 362,346
Telecom Italia S.p.A. 2,126 12,643(n)
Telecom Italia S.p.A. 42,037 447,252
Telefonica S.A. 1,197 50,851
Telekomunikacja
Polska S.A. GDR 26,113 138,399 (a,b)
Vodafone Group PLC 6,966 129,336
1,446,402
TOTAL FOREIGN EQUITY
(COST $23,228,907) 26,681,691
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 35.4%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 7.0%
U.S. Treasury Bonds
10.625% 08/15/15 $ 356,000 533,498(h)
8.125% 08/15/19 1,435,000 1,806,981(h)
8.13% 05/15/21 797,000 1,011,943(h)
5.25% 11/15/28 1,343,000 1,252,562(h)
5.25% 02/15/29 2,189,000 2,069,284(h)
6,674,268
- -----------
See Notes to Schedules of Investments and Financial Statements.
50
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. Treasury Notes
5.375% 06/30/00 $ 689,000 $ 692,555(h)
5.125% 08/31/00 322,000 322,502(h)
4.50% 01/31/01 1,040,000 1,030,900(h)
6.50% 08/31/01 526,000 542,764(h)
5.25% 08/15/03 476,000 476,819(h)
4.75% 02/15/04 1,490,000 1,467,188(h)
4.75% 11/15/08 470,000 452,742(h)
4,985,470
U.S. Treasury STRIPS
5.89% 08/15/11 973,000 474,941 (d,h)
5.91% 02/15/12 845,000 399,431 (d,h)
874,372
TOTAL U.S. TREASURIES
(COST $12,710,405) 12,534,110
FEDERAL AGENCIES -- 7.9%
Federal Home Loan Bank
5.62% 08/10/00 400,000 401,564
6.22% 03/18/08 190,000 189,555
5.75% 04/15/08 515,000 510,334
1,101,453
Federal National Mortgage Assoc.
5.67% 05/26/00 850,000 855,313
5.56% 07/24/00 565,000 566,678
5.10% 09/25/00 205,000 204,358
5.38% 01/16/01 665,000 665,831
5.75% 04/15/03 288,000 290,474
5.125% 02/13/04 820,566 805,820
6.99% 07/09/07 855,000 877,974
5.64% 12/10/08 255,000 248,523
6.04% 02/25/09 930,000 916,338
9.00% 06/01/09 437,013 469,243
7.50% 12/01/09 795,279 820,624
5.50% 01/01/14 - 02/01/14 1,359,999 1,324,299
9.00% 04/01/16 224,323 240,937
7.50% 12/01/18 111,123 114,452
7.50% 12/01/23 398,819 410,158
6.16% 08/07/28 495,000 487,036
9.50% 01/1/29 483,047 517,447
6.50% 01/01/29 - 03/01/29 1,018,934 1,014,156
9.00% 01/01/29 - 12/01/29 349,795 371,967
6.50% TBA 93,000 92,579(c)
8.00% TBA 1,550,000 1,612,248(c)
12,906,455
Small Business Administration
6.55% 10/01/17 - 12/01/17 126,439 127,950
TOTAL FEDERAL AGENCIES
(COST $14,171,176) 14,135,858
AGENCY MORTGAGE BACKED -- 7.9%
Federal Home Loan Mortgage Corp.
5.00% 02/15/01 595,000 592,769
5.125% 10/15/08 205,000 193,821
7.50% 06/01/10 208,620 215,513
7.50% 01/01/14 92,908 95,978
9.00% 04/01/16 - 07/01/16 83,417 88,327
9.00% 02/01/17 120,401 127,681
8.00% 04/15/20 18,213 18,941
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
6.247% 03/25/21 $ 81,000 $ 80,620
9.00% 06/01/21 44,258 47,190(h)
8.00% 08/01/24 20,005 20,811
8.00% 10/01/25 18,208 18,942
8.00% 11/01/26 25,385 26,409
8.00% 02/01/28 29,394 30,579
6.50% TBA 2,065,000 2,057,256(c)
7.00% TBA 25,000 25,340(c)
3,640,177
Federal National Mortgage Assoc.
6.50% 01/01/04 8,063 8,103
6.50% 04/01/13 714,672 721,147
8.50% 04/01/17 14,471 15,226(h)
7.00% 06/18/20 64,274 64,294(b)
8.00% 10/25/20 46,657 48,290
6.424% 12/25/23 91,000 91,171
9.00% 11/01/25 456,811 485,647
8.50% 12/01/26 198,019 207,919
7.00% 10/01/27 - 11/01/27 715,752 726,690
7.00% 07/01/28 631,761 640,448
3,008,935
Federal National Mortgage Assoc. REMIC
7.623% 12/17/04 83,603 87,078
6.181% 05/25/14 28,121 28,252
6.42% 05/25/18 61,000 60,924
15.05% 07/25/20 14,389 13,945(d,f)
9.00% 05/25/22 47,121 10,543(g)
8.50% 07/01/22 62,762 13,828(g)
214,570
Government National Mortgage Assoc.
7.00% 03/15/12 500,093 512,905
9.00% 11/15/16 730,933 783,691
9.00% 01/15/17 - 11/15/17 429,434 461,143
8.50% 12/15/17 1,071,425 1,136,707
9.50% 12/15/17 50,734 54,532
9.00% 12/15/21 33,888 36,377
9.50% 08/15/22 375,452 406,662
7.50% 01/15/23 114,131 117,769
9.50% 08/15/23 74,964 81,031
6.50% 02/15/24 - 03/15/24 601,402 600,272
6.50% 02/15/24 347,876 347,222(b)
6.50% 04/15/28 2,104,486 2,095,267
7.00% 04/15/28 477,829 485,145
9.50% 03/15/29 280,000 304,763
7,423,486
TOTAL AGENCY MORTGAGE BACKED
(COST $14,249,534) 14,287,168
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1%
Collateralized Mortgage Obligation Trust
4.44% 09/01/15 11,480 10,580 (d,f)
4.98% 11/01/18 30,281 24,404 (d,f)
34,984
Federal Home Loan Mortgage Corp.
5.75% 06/15/23 137,000 135,673
Federal National Mortgage Assoc.
8.50% 03/01/17 - 04/01/17 37,045 7,989(g)
8.50% 01/01/18 4,533 965(g)
4.47% 12/25/22 46,553 39,105 (d,f)
48,059
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $211,645) 218,716
- ------------
See Notes to Schedules of Investments and Financial Statements.
51
<PAGE>
GE STRATEGIC INVESTMENT FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
ASSET BACKED -- 0.7%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 $ 13,742 $ 13,777
Capital One Master Trust
5.43% 01/15/07 82,000 80,783
Chase Credit Card Master Trust
6.00% 08/15/05 109,000 110,021
Citibank Credit Card Master Trust
5.75% 01/15/03 19,000 19,048
5.50% 02/01/06 121,000 119,422
Discover Card Master
Trust I (Class A)
5.75% 10/16/03 89,000 88,944
5.30% 08/15/04 72,000 71,134
5.60% 05/15/06 312,000 308,928
First USA Credit Card
Master Trust (Class A)
5.28% 09/18/06 126,000 123,401
Ford Credit Auto Loan Master Trust
5.50% 02/15/03 47,000 46,967
Ford Credit Auto Owner Trust
5.90% 06/15/02 106,000 106,464
Green Tree Financial Corp.
6.90% 04/15/18 71,032 72,097
Peco Energy Transport Trust
5.80% 03/01/07 61,000 60,543
6.05% 03/01/09 61,000 60,466
TOTAL ASSET BACKED
(COST $1,292,610) 1,281,995
CORPORATE NOTES -- 7.8%
Abbey National PLC
6.70% 06/29/49 55,000 53,997
7.35% 10/29/49 42,000 42,558
Associates Corporation of
North America
6.375% 10/15/02 200,000 203,510
5.75% 11/01/03 100,000 99,354
AT&T Corp.
6.00% 03/15/09 75,000 74,514
6.50% 03/15/29 70,000 68,429
Bank of Scotland
7.00% 11/29/49 60,000 59,955(b)
Beckman Instruments Inc.
7.10% 03/04/03 85,000 84,106
Bellsouth Telecomm Inc.
6.375% 06/01/28 75,000 71,426
Bertelsmann US Finance
5.375% 01/28/04 145,000 140,274(a)
Boston University
7.625% 07/15/2097 200,000 217,200
Brascan Ltd.
7.375% 10/01/02 60,000 60,144
Carnival Corp.
5.65% 10/15/00 175,000 175,012
Carter Holt Harvey Ltd.
8.875% 12/01/04 200,000 214,154
Champion International Corp.
6.40% 02/15/26 50,000 49,496
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Cleveland Electric Co. Toledo Edison
7.19% 07/01/00 $ 30,000 $ 30,251
Coastal Corp.
6.375% 02/01/09 160,000 158,637
Coca Cola Enterprises Inc.
7.00% 10/01/26 75,000 78,851
Columbia University Trustees
New York
6.83% 12/15/20 65,000 68,193
Conseco Inc.
6.40% 06/15/01 135,000 132,756
6.80% 06/15/05 45,000 43,393
8.70% 11/15/26 50,000 45,317
Continental Cablevision Inc.
8.50% 09/15/01 70,000 73,727
Corporacion Andina De Fomento
6.75% 03/15/05 130,000 123,182
Crown Cork & Seal Co. Inc.
8.375% 01/15/05 30,000 32,178
CSX Corp.
6.25% 10/15/08 270,000 265,388
Dayton Hudson Corp.
5.895% 06/15/37 85,000 85,244
DDR Pass-Through Asset Trust
7.125% 03/15/02 330,000 326,700(b)
Duke Energy Corp.
5.375% 01/01/09 150,000 141,671
Duquesne Light Co.
8.70% 06/01/16 60,038 65,665
Empresa Nacional De Electricidad
8.125% 02/01/97 65,000 54,701
Fairfax Financial Holdings Ltd.
7.375% 04/15/18 100,000 93,696
Federated Department Stores, Inc.
6.125% 09/01/01 85,000 85,672
Ford Motor Credit Co.
7.32% 05/23/02 187,000 187,432
5.80% 01/12/09 150,000 144,092
Fujian International Trust &
Investment Corp.
7.375% 08/25/07 65,000 19,500(b)
General Motors Acceptance Corp.
5.75% 11/10/03 50,000 49,567
6.15% 04/05/07 155,000 154,478
Goldman Sachs Group L.P.
6.20% 12/15/00 100,000 100,439(b)
Guangdong International Trust &
Investment Corp.
8.75% 10/24/16 50,000 10,000(b)
HCR Manor Care
7.50% 06/15/06 70,000 69,887
Heritage Media Corp.
8.75% 02/15/06 90,000 96,075
Household Finance Corp.
6.125% 07/15/02 40,000 40,270
Hydro-Quebec
8.05% 07/07/24 95,000 109,904
8.25% 04/15/26 50,000 59,167
Israel Electric Corp. Ltd.
7.125% 07/15/05 50,000 50,230(b)
8.10% 12/16/26 25,000 23,112(b)
J.C. Penney Co. Inc.
7.40% 04/01/37 65,000 67,764
J.P. Morgan & Co.
6.00% 01/15/09 200,000 192,960
Korea Development Bank
7.125% 09/17/01 70,000 68,622
6.625% 11/21/03 75,000 70,486
- ------------
See Notes to Schedules of Investments and Financial Statements.
52
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Landesbank Baden-Wuerttember
7.875% 04/15/04 $ 40,000 $ 43,280
Lasmo USA Inc.
6.75% 12/15/07 55,000 53,613
LCI International Inc.
7.25% 06/15/07 49,000 49,923
Lehman Brothers Holdings Inc.
6.90% 03/30/01 35,000 35,424
8.50% 08/01/15 80,000 88,937
7.50% 08/01/26 115,000 119,124
LG&E Capital Corp.
5.75% 11/01/01 90,000 89,653(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 70,000 60,733
Lubermens Mutual Casualty
8.30% 12/01/37 40,000 40,776(b)
MBNA Corp.
6.306% 04/22/03 150,000 148,451
MCI Communications Corp.
6.125% 04/15/02 200,000 201,824
MCI Worldcom Inc.
6.125% 08/15/01 55,000 55,509
6.40% 08/15/05 85,000 85,991
8.875% 01/15/06 100,000 107,706
Meditrust
7.114% 08/15/04 100,000 86,879
Merita Bank Ltd.
7.15% 12/29/49 250,000 249,680(b)
Monsanto Co.
5.75% 12/01/05 65,000 63,482
6.60% 12/01/28 65,000 62,330(b)
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 160,000 158,005
Nabisco Inc.
6.125% 02/01/33 70,000 67,612
Natexis AMBS Co. LLC
8.44% 12/29/49 95,000 93,846(b)
National Rural Utilities
Cooperative
6.046% 04/15/03 100,000 100,656
5.50% 01/15/05 75,000 73,470
National Westminster Bank PLC
7.75% 04/29/49 35,000 36,458
New Jersey Economic
Development Authority
7.425% 02/15/29 65,000 71,857
Newcourt Credit Group Inc.
(Series B)
6.875% 02/16/05 65,000 66,511
Newell Co.
6.35% 07/15/08 150,000 150,108
News America Holdings Inc.
8.15% 10/17/36 210,000 227,770
Niagara Mohawk Power Corp.
9.50% 06/01/00 80,000 83,382
Noram Energy Corp.
6.375% 11/01/03 70,000 69,091
Norfolk Southern Corp.
7.05% 05/01/37 30,000 31,110
7.90% 05/15/97 78,000 85,940
North Atlantic Energy Corp.
9.05% 06/01/02 77,000 79,168
Northrop-Grumman Corp.
8.625% 10/15/04 65,000 71,672
Occidental Petroleum Corp.
7.375% 11/15/08 65,000 65,380
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Ontario Province of Canada
6.125% 06/28/00 $ 250,000 $ 252,115
Paramount Communications Inc.
5.875% 07/15/00 150,000 150,371
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 150,000 147,006(b)
5.625% 02/17/09 65,000 63,050(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 60,000 61,748
7.20% 02/01/07 30,000 31,234
7.65% 07/01/08 100,000 107,719
Phillips Petroleum Co.
6.375% 03/30/09 95,000 94,825
Pitney Bowes Credit
9.25% 06/15/08 200,000 242,380
Provident Bank Home Equity
Loan Trust
6.72% 01/25/13 94,164 95,171
Raytheon Co.
6.75% 08/15/07 150,000 153,785
Republic of Columbia
7.25% 02/15/03 35,000 31,631
Republic of Panama
7.875% 02/13/02 50,000 48,875(b)
Riggs Capital Trust
8.625% 12/31/26 40,000 39,161(b)
RJR Nabisco Inc.
8.00% 07/15/01 125,000 128,906
7.625% 09/15/03 50,000 51,173
Safeway Inc.
5.75% 11/15/00 60,000 60,043
Sprint Capital Corp.
5.70% 11/15/03 60,000 59,214
6.125% 11/15/08 55,000 54,069
6.875% 11/15/28 230,000 227,102
St. George Funding Co.
8.485% 12/31/19 150,000 140,250(b)
Stop & Shop Cos. Inc.
9.75% 02/01/02 40,000 43,615
Sun Life Canada Capital Trust
8.526% 05/29/49 225,000 230,306(b)
SunAmerica Inc.
5.60% 07/31/97 150,000 123,090
Suntrust Banks Inc.
6.00% 01/15/28 60,000 59,150
TCI Communications Inc.
8.65% 09/15/04 85,000 95,817
Tele-Communications Inc.
9.80% 02/01/12 125,000 163,853
Tenet Healthcare Corp.
7.875% 01/15/03 60,000 59,550
8.00% 01/15/05 25,000 24,688
Texas Utilities Co.
5.943% 10/15/01 100,000 100,823
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 250,000 251,938(b)
6.625% 05/15/29 100,000 95,337
Times Mirror Co.
6.61% 09/15/27 245,000 253,445
Transamerica Capital
7.625% 11/15/37 100,000 103,794
Turner Broadcasting Systems Inc.
8.375% 07/01/13 90,000 104,222
- ---------
See Notes to Schedules of Investments and Financial Statements.
53
<PAGE>
GE STRATEGIC INVESTMENT FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Tyco International Group S.A.
6.25% 06/15/03 $ 85,000 $ 85,556
6.125% 11/01/08 60,000 58,847(b)
7.00% 06/15/28 305,000 301,514
Union Pacific Corp.
6.79% 11/09/07 110,000 112,580
United Illuminating Co.
6.25% 12/15/02 25,000 24,843
United Parcel Service Inc.
8.375% 04/01/30 115,000 137,994
US West Capital Funding Inc.
6.125% 07/15/02 30,000 30,313
6.875% 07/15/28 45,000 45,033
USA Waste Services Inc.
6.125% 07/15/01 250,000 251,100
USX Marathon Group
9.80% 07/01/01 60,000 64,525
8.125% 07/15/23 60,000 63,491
Washington Mutual Capital
8.375% 06/01/27 35,000 36,757
Waste Management Inc.
6.65% 05/15/05 80,000 81,710
Waterford 3FDG - Entergy
8.09% 01/02/17 183,590 192,995
Westdeutsche Landesbank
6.75% 06/15/05 100,000 100,872
Westinghouse Electric Corp.
8.875% 06/01/01 40,000 42,272
Williams Cos. Inc.
6.125% 02/15/02 120,000 120,277
Yale University
7.375% 04/15/96 65,000 72,181
Zurich Capital Trust
8.376% 06/01/37 40,000 42,402(b)
TOTAL CORPORATE NOTES
(COST $14,160,316) 14,023,405
NON-AGENCY MORTGAGE BACKED SECURITIES -- 3.6%
Amresco Commercial Mortgage
Funding Corp.
6.73% 06/17/29 75,061 76,163
Asset Securitization Corp.
6.50% 02/14/41 65,700 66,306
BHN Mortgage Trust
7.54% 05/03/17 56,186 42,561(b)
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 203,000 203,317
Commercial Mortgage
Acceptance Corp.
6.49% 05/15/08 106,000 106,696
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 11/11/30 228,000 225,079
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 223,000 220,770
DLJ Mortgage Acceptance Corp.
6.14% 10/15/06 88,382 88,465
6.41% 02/15/08 246,000 245,308
6.65% 12/17/27 25,090 25,294(b)
First Union Lehman Brothers
6.28% 06/18/07 308,188 310,402
6.56% 11/18/08 1,335,000 1,355,025
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 146,000 147,072
9.88% 08/15/23 2,008,309 83,470(d)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
GS Mortgage Securities Corp.
6.86% 07/13/30 $117,000 $ 120,839
Lehman Large Loan
6.79% 10/15/34 71,758 73,440
Merrill Lynch Mortgage
Investors Inc.
6.39% 02/15/30 291,000 291,500
Mid State Trust
7.54% 07/01/35 26,933 26,756
Morgan Stanley Capital Inc.
6.86% 05/15/06 121,346 124,664(b)
6.52% 01/15/08 159,000 160,516
6.54% 05/15/08 315,000 318,938
6.21% 09/15/08 362,000 358,380
9.81% 04/15/23 983,104 42,089(d)
6.59% 10/03/30 47,025 47,855
6.01% 11/15/30 124,052 123,742
6.48% 11/15/30 212,000 213,524
9.96% 11/15/31 1,534,289 77,913 (b,d)
Nationslink Funding Corp.
6.001% 11/20/07 70,488 70,312
6.476% 07/20/08 211,000 212,484
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 60,347
Structured Asset Securities Corp.
5.536% 06/15/15 498,738 496,088(b)
8.419% 04/25/27 73,336 76,522
9.41% 02/25/28 662,401 35,604(d)
Vornado Finance Corp.
6.36% 12/01/00 355,000 358,051(b)
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $6,530,360) 6,485,492
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.4%
BlackRock Capital Finance
6.266% 11/25/28 88,603 86,720
7.22% 11/25/28 255,000 254,522
7.25% 11/25/28 150,132 129,301
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 220,496 210,589
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $704,458) 681,132
TOTAL BONDS AND NOTES
(COST $64,030,504) 63,647,876
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
- --------------------------------------------------------------------------------
DOMESTIC PREFERRED -- 0.4%
Centaur Funding Corp.
(Series B), 9.08% 255 283,297(b)
Microsoft Corp. (Series A), 2.75% 3,443 339,136
News Corp. Exchange Trust,
5.00% 680 42,415 (a,b)
TCI Communications Inc.,
10.00% 2,800 75,775
740,623
- ------------
See Notes to Schedules of Investments and Financial Statements.
54
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
INTERNATIONAL PREFERRED -- 0.0%
Fresenius Medical Care AG 878$ 33,227
LaSalle National Corp., 6.46% 30 32,325
65,552
TOTAL PREFERRED STOCK
(COST $806,135) 806,175
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 27 963(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $141,509,894) 173,527,545
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.2%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $9,260,487) 9,260,487 9,260,487
EXPIRATION DATE/ NUMBER OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/98.56 (554) (43)
U.S. Treasury Notes Apr 99/99.56 (555) (178)
U.S. Treasury Notes Apr 99/98.72 (555) (564)
(WRITTEN OPTION PREMIUM $(4,550)) (785)
- --------------------------------------------------------------------------------
PUT OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/92.56 (554) (606)
U.S. Treasury Notes Apr 99/93.56 (555) (3,419)
U.S. Treasury Notes Apr 99/92.72 (555) (2,818)
(WRITTEN OPTION PREMIUM $(5,026)) (6,843)
OTHER ASSETS AND LIABILITIES,
NET (1.6)% (2,842,831)
------------
NET ASSETS-- 100% $179,937,573
============
- -------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE COMBINED INDUSTRY WEIGHTINGS FOR THE DOMESTIC AND
FOREIGN EQUITIES IN THE GE STRATEGIC INVESTMENT FUND AS OF MARCH 31, 1999.
55
<PAGE>
GE INCOME FUNDS
Q&A
ROBERT MACDOUGALL LEADS THE FIXED INCOME TEAM AT GE INVESTMENTS. TOTAL ASSETS
UNDER HIS MANAGEMENT EXCEEDS $29 BILLION. 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 1998. PREVIOUSLY HE WAS
WITH GE'S CORPORATE TREASURY OPERATION MANAGING THE COMPANY'S $2 BILLION
PORTFOLIO OF MARKETABLE SECURITIES AND SUPPORTING THE TREASURER IN THE AREAS OF
DEBT MANAGEMENT AND CAPITAL STRUCTURE PLANNING. PRIOR TO THAT, BOB HELD VARIOUS
FINANCIAL MANAGEMENT POSITIONS SINCE JOINING GE IN 1973. HE HOLDS BACHELOR'S AND
MASTER'S DEGREES IN BUSINESS ADMINISTRATION FROM THE UNIVERSITY OF
MASSACHUSETTS.
Q. DESCRIBE WHAT HAPPENED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDED MARCH 31,1999.
A. The past six months have certainly been volatile for the fixed income
markets. As we entered October the market was still reacting to the turmoil
caused by the Russian debt default in August and the near collapse of Long
Term Capital Management -- a large hedge fund -- in September. Investors'
"flight to quality" drove the yield on 30-Year U.S. Treasury Bonds to a
record low of 4.7%. Lower quality bonds, especially high yield bonds and
emerging market debt, significantly underperformed the market. The Federal
Reserve (the "Fed") cut short-term interest rates three times to help restore
stability and confidence to the markets.
As the crisis receded, the market returned its focus to the fundamentals.
Fears of recession were replaced with concerns that an overheating economy
might put upward pressure on inflation. Low unemployment and a buoyant stock
market boosted consumer income, confidence and spending. Low mortgage rates
helped the housing sector reach record levels of activity. Adding to the
bond market's worries were a 40% jump in the price of oil and comments by
Fed Chairman Alan Greenspan that the Fed was re-evaluating the
appropriateness of the three easings of monetary policy of 1998. These
factors combined to send the yield on long U.S. Treasury Bonds to 5.7% in
early March -- an increase of 100 basis points from the October lows. The
front end of the yield curve fared even worse as market expectations of Fed
policy switched from easing to possible tightening. The yield on two-year
U.S. Treasury Notes, which reached a low in October 1998 of 3.8%, then rose
to 5.2% in March 1999.
GE FIXED INCOME FUND
Q. HOW DID THE GE FIXED INCOME FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Lehman Brothers Aggregate Bond Index returned (0.17)% while the average
return for the 146 Intermediate U.S. Government Bond funds tracked by Lipper
was (0.93)%. To see how your class of shares in the GE Fixed Income Fund
performed compared to its benchmark, please refer to page 58.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The widening of corporate and mortgage spreads to U.S. Treasury securities
which occurred in the third quarter of 1998 presented many opportunities for
value. We increased our exposure to those sectors and benefited as they
outperformed Treasuries. On the other hand, our greater interest rate
exposure (duration) was a drag on performance as interest rates rose.
[PHOTO OF ROBERT MACDOUGALL OMITTED]
56
<PAGE>
GE INCOME FUNDS (CONTINUED)
GE GOVERNMENT SECURITIES FUND
Q. HOW DID THE GE GOVERNMENT SECURITIES FUND'S BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Lehman Brothers Government Bond Index returned (1.52)% while the average
return for the 146 Intermediate U.S. Government Bond funds tracked by Lipper
was (0.93)%. To see how your class of shares in the GE Government Securities
Fund performed compared to its benchmark, please refer to page 64.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. Our overweight in both federal agency and mortgage backed securities
contributed to performance for two reasons. They generated higher coupon
income and, as their spread to U.S. Treasuries narrowed during this period,
they had better price performance. Partially offsetting this were relatively
greater price declines due to our longer duration position.
GE SHORT-TERM GOVERNMENT FUND
Q. HOW DID THE GE SHORT-TERM GOVERNMENT FUND'S BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The Lehman Brothers 1-3 Year Government Bond Index returned 1.38% while the
average return for the 197 Short-Term U.S. Government Bond funds tracked by
Lipper was 0.67%. To see how your class of shares in the GE Short-Term
Government Fund performed compared to its benchmark, please refer to page 67.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. We followed our strategy of overweighting "spread product" (i.e. mortgage
backed securities and Federal Agency notes) while overweighting duration in
this fund as well, albeit with a much shorter average duration. In the
non-government sector of the portfolio, our position in asset backed
securities performed well.
OVERALL
Q. WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
A. At this time we have a very benign inflation outlook as global excess
capacity and new technologies, such as the internet, limit corporations'
pricing power. Real interest rates are attractive. If, the level of economic
activity continues to grow at the robust rate we have seen of late, the
Federal Reserve may decide to tighten monetary policy to prevent a
resurgence of inflation. Until we see clearer indications of the direction
we are headed -- slower growth or higher inflation -- the market will
continue to trade in a range around current levels.
57
<PAGE>
GE FIXED INCOME FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings+ Net Assets
- --------------------------------------------------------------------------------
Aaa or better 78.0%
A to AA 10.8%
Below A 11.2%
- --------------------------------------------------------------------------------
100.0%
+ MOODY'S INVESTORS SERVICE, INC./STANDARD & POOR'S ARE NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATIONS.
INVESTMENT PROFILE
Amutual fund designed for investors who seek maximum income consistent with
prudent investment management and the preservation of capital by investing
primarily in fixed income securities including government and corporate bonds
and asset- and mortgage-backed
securities including CMOs & ARMs.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE U.S. GOVERNMENT PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 146 142 81
Peer group
average annual
total return: (0.93)% 5.50% 6.33%
Lipper categories
in peer group: INTERMEDIATE U.S.
GOVERNMENT,
INTERMEDIATE
U.S. TREASURY
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE Fixed Income GE Fixed Income w/load LB Aggregate
1/1/94 $10000.00 $10000.00 $10000.00
9746.86 9332.62 9712.67
9654.97 9244.63 9612.53
Sep-94 9698.17 9286.00 9671.10
9719.60 9306.52 9707.56
10150.16 9718.78 10197.12
10735.92 10279.64 10818.11
Sep-95 10908.39 10444.78 11030.90
11357.95 10875.24 11500.70
11105.43 10633.45 11295.55
11128.73 10655.76 11360.04
Sep-96 11335.10 10853.36 11569.21
11670.32 11174.33 11916.41
11597.70 11104.80 11850.22
12010.11 11499.68 12286.73
Sep-97 12376.85 11850.83 12696.38
12660.51 12122.44 13070.42
12858.12 12311.65 13272.10
13145.56 12586.87 13582.33
Sep-98 13578.00 12997.00 14157.41
13618.13 13035.42 14205.13
Mar-99 13519.17 12940.70 14132.94
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Fixed Income (0.43)% 5.14% 6.76% 5.92%
GE Fixed Income w/load (4.69)% 0.68% 5.83% 5.04%
(maximum load-4.25%)
LB Aggregate (0.17)% 6.48% 7.79% 6.81%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE Fixed Income GE Fixed Income w/load LB Aggregate
12/22/93 $10000.00 $10000.00 $10000.00
10020.60 10020.60 10000.00
9742.02 9742.02 9712.67
9638.19 9638.19 9612.53
Sep-94 9669.13 9669.13 9671.10
9678.39 9678.39 9707.56
10094.77 10094.77 10197.12
10673.82 10673.82 10818.11
Sep-95 10827.50 10827.50 11030.90
11255.17 11255.17 11500.70
10997.08 10997.08 11295.55
11006.60 11006.60 11360.04
Sep-96 11196.65 11196.65 11569.21
11522.84 11522.84 11916.41
11437.39 11437.39 11850.22
11828.98 11828.98 12286.73
Sep-97 12164.50 12164.50 12696.38
12437.88 12437.88 13070.42
12616.61 12616.61 13272.10
12871.97 12871.97 13582.33
Sep-98 13288.00 13288.00 14157.41
13311.25 13311.25 14205.13
Mar-99 13198.88 13198.88 14132.94
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Fixed Income (0.67)% 4.62% 6.26% 5.40%
GE Fixed Income w/load (3.59)% 1.62% 6.26% 5.40%
maximum load 3.0% 3.0% 0.0% 0.0%
LB Aggregate (0.17)% 6.48% 7.79% 6.81%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE Fixed Income LB Aggregate
2/22/93 $10000.00 $10000.00
10081.05 10041.80
10293.97 10307.89
Sep-93 10524.00 10576.96
10521.85 10583.22
10249.59 10279.87
10159.39 10173.87
Sep-94 10211.26 10235.87
10240.36 10274.46
10700.74 10792.61
11334.65 11449.87
Sep-95 11519.50 11675.08
11996.49 12172.31
11743.72 11955.18
11765.79 12023.44
Sep-96 11991.43 12244.82
12353.64 12612.30
12293.78 12542.24
12727.47 13004.24
Sep-97 13124.17 13437.82
13433.30 13833.70
13651.43 14047.16
13965.06 14375.51
Sep-98 14444.00 14983.10
14496.13 15033.61
Mar-99 14388.18 14957.20
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Fixed Income (0.38)% 5.40% 7.02% 6.14%
LB Aggregate (0.17)% 6.48% 7.79% 6.81%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME LB AGGREGATE
11/29/93 $10000.00 $10000.00
10043.77 10054.20
9790.00 9766.01
9709.77 9665.32
SEP-94 9765.50 9724.21
9799.50 9760.88
10246.42 10253.12
10859.91 10877.53
SEP-95 11044.37 11091.48
11510.21 11563.86
11269.08 11357.58
11297.78 11422.43
SEP-96 11521.71 11632.74
11887.32 11981.85
11828.12 11915.30
12264.50 12354.21
SEP-97 12643.48 12766.11
12960.20 13142.20
13178.51 13344.99
13478.76 13656.93
SEP-98 13950.00 14234.14
14009.21 14205.13
MAR-99 13924.76 14132.94
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Fixed Income (0.18)% 5.66% 7.30% 6.40%
LB Aggregate (0.17)% 6.48% 7.79% 6.69%
58
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE FIXED INCOME FUND
[PIE CHART OMITTED]
MORTGAGE BACKED 29.1%
CORPORATE NOTES 21.7%
FEDERAL AGENCIES 21.4%
U.S. TREASURIES 21.0%
CASH & OTHER 6.8%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 97.2%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 21.0%
U.S. Treasury Bonds
10.625% 08/15/15 $ 600,000 $ 899,154(h)
8.125% 08/15/19 2,509,000 3,159,383(h)
8.125% 05/15/21 2,462,000 3,125,977(h)
5.25% 11/15/28 2,971,000 2,770,933(h)
5.25% 02/15/29 4,563,000 4,313,449(h)
14,268,896
U.S. Treasury Notes
4.50% 01/31/01 2,795,000 2,770,544(h)
6.50% 08/31/01 7,465,000 7,702,909(h)
5.25% 08/15/03 120,000 120,206(h)
4.75% 02/15/04 1,475,000 1,452,418(h)
4.75% 11/15/08 700,000 674,296(h)
12,720,373
U.S. Treasury STRIPS
5.89% 08/15/11 2,530,000 1,234,944 (d,h)
5.91% 02/15/12 1,650,000 779,955 (d,h)
2,014,899
TOTAL U.S. TREASURIES
(COST $29,473,945) 29,004,168
FEDERAL AGENCIES -- 21.4%
Federal Home Loan Bank
5.62% 08/10/00 700,000 702,737
5.625% 03/19/01 165,000 165,954
6.22% 03/18/08 365,000 364,146
5.75% 04/15/08 850,000 842,299
2,075,136
Federal National Mortgage Assoc.
5.67% 05/26/00 1,420,000 1,428,875
5.56% 07/24/00 600,000 601,782
5.10% 09/25/00 416,000 414,698
5.38% 01/16/01 895,000 896,119
5.125% 02/13/04 1,419,547 1,394,038
6.99% 07/09/07 945,000 970,392
5.64% 12/10/08 935,000 911,251
6.04% 02/25/09 1,930,000 1,901,648
9.00% 06/01/09 928,653 997,141
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
7.50% 12/01/09 $2,032,822 $2,097,608
6.50% 04/01/13 610,490 616,021
5.50% 01/01/14 1,489,999 1,450,887
9.00% 04/01/16 959,063 1,030,094
7.50% 12/01/18 231,506 238,442
7.50% 12/01/23 1,899,142 1,953,135
9.00% 11/01/25 996,674 1,059,589
8.50% 12/01/26 440,827 462,868
6.16% 08/07/28 1,025,000 1,008,508
9.50% 01/01/29 994,015 1,064,788
6.50% 02/01/29 - 03/01/29 2,080,822 2,071,062
9.00% 11/01/29 - 12/01/29 736,420 783,100
6.50% TBA 426,000 424,070(c)
8.00% TBA 2,930,000 3,047,669(c)
26,823,785
Small Business Administration
6.55% 10/01/17 - 12/01/17 223,177 225,846
6.125% 01/01/18 521,513 517,520
743,366
TOTAL FEDERAL AGENCIES
(COST $29,739,804) 29,642,287
AGENCY MORTGAGE BACKED -- 22.1%
Federal Home Loan Mortgage Corp.
5.00% 02/15/01 3,345,000 3,332,456
5.125% 10/15/08 1,105,000 1,044,744
7.50% 06/01/10 536,450 554,175
7.50% 01/01/14 464,541 479,889
9.00% 12/01/16 270,052 286,382
6.247% 03/25/21 176,000 175,175
9.50% 04/01/21 23,375 25,187(h)
5.75% 06/15/23 293,000 290,162
8.00% 08/01/24 81,838 85,137
8.00% 08/01/25 - 10/01/25 443,072 460,932
8.00% 11/01/26 55,493 57,730
8.00% 02/01/28 64,132 66,717
6.50% TBA 8,491,244 8,459,402(c)
7.00% TBA 50,000 50,680(c)
15,368,768
Federal National Mortgage Assoc.
6.50% 01/01/04 23,743 23,863
8.50% 04/01/17 57,886 60,904(h)
7.00% 06/18/20 119,076 119,113(b)
6.424% 12/25/23 175,000 175,328
7.00% 10/01/27 - 11/01/27 2,136,803 2,171,463
7.00% 07/01/28 437,373 443,387
2,994,058
Federal National Mortgage Assoc. REMIC
7.623% 12/17/04 152,596 158,938
6.181% 05/25/14 52,833 53,081
6.42% 05/25/18 132,000 131,835
15.05% 07/25/20 36,329 35,208(d)
8.00% 10/25/20 93,313 96,579
9.00% 05/25/22 86,884 19,440
8.50% 07/01/22 158,496 34,922
4.47% 12/25/22 85,846 72,111(d)
602,114
Government National Mortgage Assoc.
7.00% 03/15/12 1,428,837 1,465,444
9.00% 11/15/16 904,120 969,379
9.00% 01/15/17 - 11/15/17 727,201 780,567
9.50% 12/15/17 103,449 111,194
- -----------
See Notes to Schedules of Investments and Financial Statements.
59
<PAGE>
GE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
9.00% 12/15/21 $ 77,943 $ 83,666
9.50% 08/15/22 835,828 905,307
9.50% 01/01/23 - 08/15/23 166,884 180,391
7.50% 01/15/23 - 12/15/23 1,914,338 1,975,347
6.50% 02/15/24 436,789 435,967(b)
6.50% 02/15/24 - 04/15/24 604,008 602,873
6.50% 04/15/28 1,758,111 1,750,411
7.00% 05/15/28 869,210 882,518
7.50% 05/15/28 - 09/15/28 876,859 903,696
9.50% 03/15/29 573,000 623,675
11,670,435
TOTAL AGENCY MORTGAGE BACKED
(COST $30,597,583) 30,635,375
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1%
Collateralized Mortgage Obligation Trust
4.44% 09/01/15 31,726 29,238(d)
4.98% 11/01/18 83,682 67,442(d)
96,680
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 42,496 44,196
Federal National Mortgage Assoc.
8.50% 03/01/17 - 04/01/17 102,249 22,051
8.50% 01/01/18 12,526 2,666
24,717
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $161,083) 165,593
ASSET BACKED -- 1.9%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 27,484 27,553
Capital One Master Trust
5.43% 01/15/07 200,000 197,031
Citibank Credit Card Master Trust
5.75% 01/15/03 41,000 41,103
5.50% 02/01/06 259,000 255,623
Discover Card Master Trust I
5.75% 10/16/03 191,000 190,880
5.30% 08/15/04 157,000 155,111
5.60% 05/15/06 570,000 564,389
First USA Credit Card Master Trust
5.28% 09/18/06 404,000 395,665
Fleetwood Credit Grantor Trust
6.40% 05/15/13 83,948 84,814
Ford Credit Auto Loan Master Trust
5.50% 02/15/03 95,000 94,934
Ford Credit Auto Owner Trust
5.90% 06/15/02 232,000 233,015
Green Tree Financial Corp.
6.90% 04/15/18 159,822 162,219
Peco Energy Transport Trust
5.80% 03/01/07 125,000 124,063
6.05% 03/01/09 125,000 123,906
TOTAL ASSET BACKED
(COST $2,669,350) 2,650,306
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE NOTES -- 22.0%
Abbey National PLC
6.70% 06/29/49 $ 530,000 $ 520,333
7.35% 10/29/49 145,000 146,927
Arizona Public Service Co.
6.25% 01/15/05 120,000 120,394
Associates Corporation of
North America
6.375% 10/15/02 500,000 508,775
5.75% 11/01/03 250,000 248,385
AT&T Corp.
6.00% 03/15/09 160,000 158,963
6.50% 03/15/29 140,000 136,859
Atlantic City Electric Co.
6.19% 01/17/06 305,000 302,316
Bank of Scotland
7.00% 11/29/49 180,000 179,865(b)
Beckman Instruments Inc.
7.10% 03/04/03 170,000 168,212
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 75,000 90,728
Bellsouth Telecomm Inc.
6.375% 06/01/28 115,000 109,519
Bertelsmann US Finance
5.375% 01/28/04 295,000 285,386(a)
Boston University
7.625% 07/15/97 325,000 352,950
Brascan Ltd.
7.375% 10/01/02 120,000 120,288
Carnival Corp.
5.65% 10/15/00 265,000 265,019
CBS Corp.
7.15% 05/20/05 170,000 173,524
Champion International Corp.
6.40% 02/15/26 105,000 103,941
Cleveland Electric Co. Toledo Edison
7.19% 07/01/00 60,000 60,501
Coastal Corp.
6.375% 02/01/09 350,000 347,019
Coca Cola Enterprises Inc.
7.00% 10/01/26 155,000 162,960
Columbia University Trustees
New York
6.83% 12/15/20 120,000 125,894
Conseco Inc.
6.40% 06/15/01 305,000 299,931
6.80% 06/15/05 165,000 159,108
8.70% 11/15/26 95,000 86,102
Continental Cablevision Inc.
8.50% 09/15/01 125,000 131,655
Corporacion Andina De Fomento
6.75% 03/15/05 190,000 180,034
Crown Cork & Seal Co. Inc.
8.375% 01/15/05 80,000 85,807
CSX Corp.
6.25% 10/15/08 480,000 471,802
Dayton Hudson Corp.
5.895% 06/15/37 180,000 180,517
DDR Pass-Through Asset Trust
7.125% 03/15/02 415,000 410,850(b)
Dow Chemical Co.
8.55% 10/15/09 110,000 128,394
Duke Energy Corp.
5.375% 01/01/09 400,000 377,790
Duquesne Light Co.
8.70% 06/01/16 123,030 134,560
Empresa Nacional De Electricidad
8.125% 02/01/97 100,000 84,156
- -----------
See Notes to Schedules of Investments and Financial Statements.
60
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Fairfax Financial Holdings Ltd.
7.375% 04/15/18 $ 165,000 $ 154,598
Federated Department Stores Inc.
6.125% 09/01/01 170,000 171,345
Felcor Suites Ltd.
7.375% 10/01/04 100,000 94,487
Ford Motor Credit Co.
7.32% 05/23/02 328,000 328,758
5.80% 01/12/09 200,000 192,122
Fujian International Trust &
Investment Corp.
7.375% 08/25/07 65,000 19,500(b)
General Motors Acceptance Corp.
5.75% 11/10/03 110,000 109,049
6.15% 04/05/07 315,000 313,938
Goldman Sachs Group L.P.
6.20% 12/15/00 195,000 195,856(b)
Gruma S.A. de C.V.
7.625% 10/15/07 100,000 90,500
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 65,000 13,000(b)
HCR Manor Care
7.50% 06/15/06 145,000 144,767
Heritage Media Corp.
8.75% 02/15/06 135,000 144,112
Household Finance Corp.
6.125% 07/15/02 135,000 135,913
Hydro-Quebec
8.05% 07/07/24 60,000 69,413
8.25% 04/15/26 360,000 426,006
Israel Electric Corp. Ltd.
7.125% 07/15/05 95,000 95,437(b)
8.10% 12/16/26 240,000 221,873(b)
J.C. Penney Co. Inc.
7.40% 04/01/37 140,000 145,954
J.P. Morgan & Co.
6.00% 01/15/09 300,000 289,440
Korea Development Bank
7.125% 09/17/01 50,000 49,016
6.625% 11/21/03 135,000 126,874
Landesbank Baden-Wuerttember
7.875% 04/15/04 160,000 173,118
Lasmo USA Inc.
6.75% 12/15/07 95,000 92,605
LCI International Inc.
7.25% 06/15/07 226,000 230,258
Lehman Brothers Holdings Inc.
6.90% 03/30/01 55,000 55,666
8.50% 08/01/15 100,000 111,172
7.50% 08/01/26 205,000 212,351
LG&E Capital Corp.
5.75% 11/01/01 200,000 199,228(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 250,000 216,905
Lubermens Mutual Casualty
8.30% 12/01/37 65,000 66,262(b)
MBNA Corp.
6.306% 04/22/03 200,000 197,934
MCI Communications Corp.
6.125% 04/15/02 300,000 302,736
MCI Worldcom Inc.
6.125% 08/15/01 105,000 105,971
6.40% 08/15/05 165,000 166,924
8.875% 01/15/06 200,000 215,412
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Meditrust
7.114% 08/15/04 $ 130,000 $ 112,943
Merita Bank Ltd.
7.15% 12/29/49 145,000 144,814(b)
Monsanto Co.
5.75% 12/01/05 150,000 146,496
6.60% 12/01/28 150,000 143,840(b)
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 350,000 345,635
Nabisco Inc.
6.70% 06/15/02 550,000 557,266
6.125% 02/01/33 140,000 135,223
Natexis AMBS Co. LLC
8.44% 12/29/49 335,000 330,930(b)
National Rural Utilities Cooperative
6.046% 04/15/03 115,000 115,754
5.50% 01/15/05 150,000 146,940
National Westminster Bank PLC
7.75% 04/29/49 265,000 276,043
New Jersey Economic
Development Authority
7.425% 02/15/29 115,000 127,131
Newcourt Credit Group Inc.
6.875% 02/16/05 135,000 138,139
Newell Co.
6.35% 07/15/08 200,000 200,144
News America Holdings Inc.
8.15% 10/17/36 100,000 108,462
Niagara Mohawk Power Corp.
9.50% 06/01/00 145,000 151,129
Noram Energy Corp.
6.375% 11/01/03 140,000 138,183
Norfolk Southern Corp.
7.05% 05/01/37 60,000 62,220
7.90% 05/15/97 137,000 150,947
North Atlantic Energy Corp.
9.05% 06/01/02 145,000 149,083
Northrop-Grumman Corp.
8.625% 10/15/04 130,000 143,343
Norwest Asset Securities Corp.
6.25% 12/25/28 627,001 546,626
Occidental Petroleum Corp.
7.375% 11/15/08 160,000 160,934
Paramount Communications Inc.
7.50% 01/15/02 125,000 130,063
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 300,000 294,012(b)
5.625% 02/17/09 135,000 130,950(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 120,000 123,497
7.20% 02/01/07 100,000 104,112
7.65% 07/01/08 375,000 403,946
Phillips Petroleum Co.
6.375% 03/30/09 195,000 194,641
Pitney Bowes Credit
9.25% 06/15/08 250,000 302,975
Quebec Province of Canada
5.67% 02/27/26 890,000 901,361
Raytheon Co.
6.75% 08/15/07 200,000 205,046
Republic of Columbia
7.25% 02/15/03 100,000 90,375
Republic of Panama
7.875% 02/13/02 100,000 97,750(b)
Riggs Capital Trust
8.625% 12/31/26 90,000 88,112(b)
- ---------
See Notes to Schedules of Investments and Financial Statements.
61
<PAGE>
GE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
RJR Nabisco Inc.
8.00% 07/15/01 $ 300,000 $ 309,375
7.625% 09/15/03 105,000 107,462
Safeway Inc.
5.75% 11/15/00 130,000 130,092
Sprint Capital Corp.
5.70% 11/15/03 120,000 118,428
6.125% 11/15/08 120,000 117,968
6.875% 11/15/28 720,000 710,928
St. George Funding Co.
8.485% 12/31/19 345,000 322,575(b)
Stop & Shop Cos. Inc.
9.75% 02/01/02 80,000 87,230
Sun Life Canada Capital Trust
8.526% 05/29/49 335,000 342,899(b)
SunAmerica Inc.
5.60% 07/31/97 485,000 397,991
Suntrust Bank Inc.
6.00% 01/15/28 120,000 118,301
TCI Communications Inc.
8.65% 09/15/04 70,000 78,908
Tele-Communications Inc.
9.25% 04/15/02 100,000 109,860
9.80% 02/01/12 165,000 216,285
Tenet Healthcare Corp.
7.875% 01/15/03 105,000 104,212
8.00% 01/15/05 40,000 39,500
Texas Utilities Co.
5.93% 10/15/01 675,000 680,555
Time Warner Entertainment
Co. L.P.
10.15% 05/01/12 75,000 97,757
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 280,000 282,170(b)
6.625% 05/15/29 250,000 238,342
Times Mirror Co.
6.61% 09/15/27 685,000 708,612
Toledo Edison Co.
7.38% 03/31/00 250,000 252,622
Transamerica Capital
7.625% 11/15/37 105,000 108,984
Turner Broadcasting Systems Inc.
8.375% 07/01/13 160,000 185,283
Tyco International Group S.A.
6.25% 06/15/03 255,000 256,668
6.125% 11/01/08 160,000 156,926(b)
7.00% 06/15/28 135,000 133,457
Union Pacific Corp.
6.79% 11/09/07 235,000 240,511
United Illuminating Co.
6.25% 12/15/02 50,000 49,687
United Parcel Service Inc.
8.375% 04/01/30 200,000 239,990
US West Capital Funding Inc.
6.125% 07/15/02 55,000 55,574
6.875% 07/15/28 85,000 85,062
USA Waste Services Inc.
6.125% 07/15/01 500,000 502,200
USX Marathon Group
9.80% 07/01/01 120,000 129,050
8.125% 07/15/23 120,000 126,982
Viacom Inc.
7.75% 06/01/05 250,000 266,567
Washington Mutual Capital
8.375% 06/01/27 71,000 74,564
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Waste Management Inc.
6.65% 05/15/05 $ 190,000 $ 194,062
Waterford 3FDG - Entergy
8.09% 01/02/17 367,180 385,990
Westdeutsche Landesbank
6.75% 06/15/05 200,000 201,744
Westinghouse Electric Corp.
8.875% 06/01/01 75,000 79,261
Williams Cos. Inc.
6.125% 02/15/02 235,000 235,543
Yale University
7.375% 04/15/96 100,000 111,047
Zurich Capital Trust
8.376% 06/01/37 100,000 106,006(b)
TOTAL CORPORATE NOTES
(COST $30,711,378) 30,394,259
NON-AGENCY MORTGAGE BACKED SECURITIES -- 7.8%
Amresco Commercial Mortgage
Funding Corp.
6.73% 06/17/29 136,099 138,098
Asset Securitization Corp.
6.50% 02/14/41 106,763 107,748
BHN Mortgage Trust
7.54% 05/03/17 104,346 79,042(b)
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 714,000 715,116
Commercial Mortgage
Acceptance Corp.
6.49% 05/15/08 370,000 372,428
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 11/11/30 663,000 654,505
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 472,000 467,280
DLJ Mortgage Acceptance Corp.
6.41% 02/15/08 462,000 460,701
6.65% 12/17/27 55,198 55,646(b)
First Union Lehman Brothers
6.28% 06/18/07 550,335 554,290
6.56% 11/18/08 381,000 386,715
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 298,000 300,188
9.88% 08/15/23 4,294,997 178,511(d)
GS Mortgage Securities Corp.
6.86% 07/13/30 207,000 213,792
Lehman Large Loan
6.79% 10/15/34 126,775 129,746
Merrill Lynch Mortgage
Investors Inc.
6.39% 02/15/30 376,000 376,646
Mid State Trust
7.540% 07/01/35 53,866 53,513
Morgan Stanley Capital Inc.
6.86% 05/15/06 219,663 225,669(b)
6.52% 01/15/08 316,000 319,012
6.54% 05/15/08 580,000 587,250
6.21% 09/15/08 777,000 769,230
9.81% 04/15/23 2,106,652 90,191(d)
6.59% 10/03/30 83,494 84,968
6.01% 11/15/30 270,571 269,894
6.48% 11/15/30 462,000 465,321
9.960% 11/15/31 3,287,762 166,956 (b,d)
- -------------
See Notes to Schedules of Investments and Financial Statements.
62
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Nationslink Funding Corp.
6.001% 11/20/07 $ 153,704 $ 153,319
6.476% 07/20/08 462,000 465,249
Sawgrass Finance REMIC Trust
6.45% 01/20/06 100,000 100,578
Structured Asset Securities Corp.
5.536% 06/15/15 907,539 902,718(b)
8.419% 04/25/27 230,416 240,424
9.41% 02/25/28 1,356,984 72,938(d)
Vornado Finance Corp.
6.36% 12/01/00 572,000 576,916(b)
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $10,828,515) 10,734,598
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.9%
BlackRock Capital Finance
6.266% 11/25/28 158,817 155,442
7.22% 11/25/28 456,000 455,145
7.25% 11/25/28 269,069 231,736
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 391,013 373,451
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,257,444) 1,215,774
TOTAL BONDS AND NOTES
(COST $135,439,102) 134,442,360
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.7%
- --------------------------------------------------------------------------------
CORPORATE PREFERRED -- 0.7%
Centaur Funding Corp.
(Series B), 9.08% 600 666,582(b)
LaSalle National Corp. 50 53,875
News Corp. Exchange Trust,
5.00% 1,600 99,800(b)
TCI Communications Inc.,
10.00% 4,800 129,900
TOTAL PREFERRED STOCK
(COST $946,671) 950,157
TOTAL INVESTMENTS IN SECURITIES
(COST $136,385,773) 135,392,517
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund 2,342 $ 2,342
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES
Federal Home Loan
Mortgage Corp.
5.50% 4/1/99 $13,380,000 13,380,000
TOTAL SHORT-TERM INVESTMENTS
(COST $13,382,342) 13,382,342
EXPIRATION DATE/ NUMBER OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/98.56 (1,148) (90)
U.S. Treasury Notes Apr 99/99.56 (1,140) (365)
U.S. Treasury Notes Apr 99/98.72 (1,165) (1,183)
(WRITTEN OPTION PREMIUM $(9,441)) (1,638)
- --------------------------------------------------------------------------------
PUT OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/92.56 (1,148) (1,256)
U.S. Treasury Notes Apr 99/93.56 (1,140) (7,022)
U.S. Treasury Notes Apr 99/92.72 (1,165) (5,916)
(WRITTEN OPTION PREMIUM $(10,436)) (14,194)
OTHER ASSETS AND LIABILITIES,
NET (7.6)% (10,549,370)
------------
NET ASSETS-- 100% $138,209,657
============
63
<PAGE>
GE GOVERNMENT SECURITIES FUND
FIVE YEAR TREASURY NOTE YIELD HISTORY
4/1/98 -- 3/31/99
[LINE GRAPH OMITTED]
PERCENTAGE
4/1/98 5.56
4/8/98 5.54
4/15/98 5.57
4/22/98 5.64
4/29/98 5.79
5/6/98 5.58
5/13/98 5.62
5/20/98 5.60
5/27/98 5.59
6/3/98 5.55
6/10/98 5.55
6/17/98 5.57
6/24/98 5.52
7/1/98 5.43
7/8/98 5.43
7/15/98 5.46
7/22/98 5.46
7/29/98 5.52
8/5/98 5.43
8/12/98 5.32
8/19/98 5.34
8/26/98 5.06
9/2/98 4.94
9/9/98 4.76
9/16/98 4.68
9/23/98 4.47
9/30/98 4.22
10/7/98 4.19
10/14/98 4.25
10/21/98 4.17
10/28/98 4.14
11/4/98 4.48
11/11/98 4.50
11/18/98 4.58
11/25/98 4.63
12/2/98 4.32
12/9/98 4.36
12/16/98 4.29
12/23/98 4.64
12/30/98 4.53
1/6/99 4.57
1/13/99 4.56
1/20/99 4.64
1/27/99 4.55
2/3/99 4.73
2/10/99 4.82
2/17/99 4.90
2/24/99 5.12
3/3/99 5.29
3/10/99 5.12
3/17/99 5.04
3/24/99 5.06
3/31/99 5.10
HIGH 5.79%
LOW 4.14%
AVG. 5.00%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of current
income consistent with safety of principal by investing primarily in
obligations insured or guaranteed by the U.S. Government or by its
agencies or instrumentalities.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE U.S. GOVERNMENT PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five Ten
Months Year Year Year
Number of
Funds in
peer group: 146 142 81 26
Peer group
average annual
total return: (0.93)% 5.50% 6.33% 7.67%
Lipper categories
in peer group: INTERMEDIATE U.S.
TREASURY, INTERMEDIATE
U.S. GOVERNMENT
* SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
9/8/93 $10000.00 $10000.00 $10000.00
9903.09 9482.20 10038.00
9910.14 9488.96 10004.17
9609.14 9200.75 9702.89
9162.03 8772.64 9591.62
SEP-94 9084.41 8698.33 9632.30
9060.13 8675.08 9666.84
9365.20 8967.18 10121.71
9842.12 9423.83 10749.70
SEP-95 9978.59 9554.50 10939.25
10350.65 9910.75 11438.93
10155.47 9723.87 11180.35
10173.63 9741.25 11232.97
SEP-96 10352.80 9912.81 11422.80
10646.56 10194.08 11756.09
10601.57 10151.01 11660.57
10981.84 10515.11 12063.83
SEP-97 11329.33 10847.83 12467.87
11632.14 11137.77 12882.11
11788.54 11287.52 13076.55
12114.14 11599.29 13421.97
SEP-98 12646.00 12109.00 14163.97
12657.87 12119.91 14151.11
MAR-99 12481.59 11951.12 13948.63
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Gov't Securities (1.30)% 5.87% 5.37% 4.07%
GE Gov't Securities
w/load (5.49)% 1.37 4.46% 3.26%
(maximum load-4.25%)
LB Gov't (1.52)% 6.67% 7.53% 6.14%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
SEP-88 $10000.00 $10000.00 $10000.00
SEP-89 10920.30 10920.30 11112.89
SEP-90 11889.15 11889.15 11884.76
SEP-91 13518.99 13518.99 13724.14
SEP-92 14894.90 14894.90 15497.96
SEP-93 16052.28 16052.28 17215.19
SEP-94 14608.99 14608.99 16519.41
SEP-95 15962.84 15962.84 18760.83
SEP-96 16416.08 16416.08 19590.14
SEP-97 17964.52 17964.52 21382.43
SEP-98 20050.38 20050.38 24291.25
MAR-99 19534.86 19534.86 26267.10
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
GE Gov't Securities (1.45)% 5.41% 4.70% 6.93%
GE Gov't Securities
w/load (4.32)% 2.43% 4.53% 6.93%
maximum load 3.0% 3.0% 1.0% 0.0%
LB Gov't (1.52)% 6.67% 7.53% 8.43%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES LB GOV'T
10/27/97 $10000.00 $10000.00
OCT-97 10016.45 10037.00
NOV-97 10046.04 10088.19
DEC-97 10137.96 10194.11
JAN-98 10279.85 10347.03
FEB-98 10255.23 10319.09
MAR-98 10269.55 10347.98
APR-98 10287.57 10394.55
MAY-98 10404.81 10501.61
JUN-98 10537.96 10621.33
JUL-98 10548.62 10637.26
AUG-98 10759.64 10913.83
SEP-98 11000.66 11208.51
OCT-98 10920.70 11129.22
NOV-98 10992.25 11132.56
DEC-98 11025.23 11157.05
JAN-99 11103.44 11221.76
FEB-99 10807.81 10954.68
MAR-99 10878.05 10997.40
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Gov't Securities (1.12)% 5.93% 6.09%
LB Gov't (1.52)% 6.67% 6.96%
64
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE GOVERNMENT SECURITIES FUND
[PIE CHART OMITTED]
MORTGAGE BACKED 33.1%
FEDERAL AGENCIES 29.8%
U.S. TREASURIES 17.4%
CASH & OTHER 10.8%
CORPORATE NOTES 8.9%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 95.4%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 17.4%
U.S. Treasury Bonds
8.125% 08/15/19 $ 2,450,000 $ 3,085,089(h)
8.125% 05/15/21 15,874,000 20,155,059(h)
5.25% 11/15/28 18,539,000 17,290,584(l)
5.25% 02/15/29 14,336,000 13,551,964(l)
54,082,696
U.S. Treasury Notes
5.375% 06/30/00 5,289,000 5,316,291(h)
5.50% 03/31/03 1,310,000 1,323,716(h)
5.625% 05/15/08 4,018,000 4,090,203(l)
10,730,210
TOTAL U.S. TREASURIES
(COST $68,009,017) 64,812,906
FEDERAL AGENCIES -- 29.8%
Federal Home Loan Mortgage Corp.
5.125% 10/15/08 2,065,000 1,952,396
Federal National Mortgage Assoc.
11.875% 05/19/00 29,000,000 31,061,610
5.56% 07/24/00 1,335,000 1,338,965
32,400,575
Financing Corp.
10.70% 10/06/17 28,165,000 41,798,550(h)
9.65% 11/02/18 2,020,000 2,795,175
44,593,725
Small Business Administration
8.15% 02/01/15 1,608,863 1,723,997
8.10% 03/01/15 8,096,021 8,672,863
7.60% 05/01/16 3,487,563 3,677,199
7.55% 06/01/16 7,413,621 7,806,312
7.70% 07/01/16 5,235,523 5,545,564
7.15% 03/01/17 4,564,452 4,735,619
32,161,554
TOTAL FEDERAL AGENCIES
(COST $106,346,868) 111,108,250
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
AGENCY MORTGAGE BACKED -- 31.2%
Federal Home Loan Mortgage Corp.
7.50% 02/01/07 $ 72,600 $ 75,027
7.50% 02/01/09 - 09/01/09 146,078 150,848
7.50% 06/01/10 - 12/01/10 4,717,445 4,869,297
7.50% 02/01/11 - 11/01/11 4,245,299 4,380,380
7.50% 01/01/12 - 07/01/12 3,955,711 4,080,552
9.00% 12/01/14 1,889,280 1,979,871
6.50% 08/01/25 - 12/01/25 6,757,299 6,731,958
6.50% 01/01/26 2,171,525 2,163,382
7.00% 12/01/26 16,695 16,945
7.00% 01/01/27 1,002,520 1,017,558
6.50% 02/01/27 702,872 700,236
7.00% TBA 610,000 618,292(c)
26,784,346
Federal National Mortgage Assoc.
9.00% 06/01/09 1,950,712 2,092,529
9.00% 04/01/16 1,788,900 1,921,390
9.00% 05/01/21 - 07/01/21 1,320,409 1,405,429
7.50% 12/01/23 2,696,782 2,773,452
9.00% 11/01/25 3,527,138 3,749,789
7.00% 10/01/27 - 12/01/27 9,372,194 9,542,065
6.16% 08/07/28 14,800,000 14,561,868
8.00% TBA 4,800,000 4,992,768(c)
41,039,290
Government National Mortgage Assoc.
7.00% 03/15/12 4,072,186 4,176,516
9.00% 05/15/13 183,440 196,517
9.00% 07/15/16 2,347,572 2,517,020
9.50% 05/15/16 - 12/15/16 169,274 181,968
9.50% 06/15/17 - 12/15/17 1,361,247 1,463,283
8.50% 05/15/21 67,308 71,241
9.50% 08/15/22 3,967,719 4,297,536
8.50% 10/15/22 7,423 7,852
8.50% 03/15/23 377,466 399,167
6.50% 05/15/23 - 12/15/23 4,353,290 4,347,849
6.50% 01/15/24 - 04/15/24 3,490,185 3,483,623
7.00% 08/15/25 - 10/15/25 11,185,614 11,367,385
7.00% 04/15/26 2,052,654 2,084,079
7.50% 05/15/27 119,854 123,450
7.50% 06/15/28 223,321 230,231(b)
7.50% 01/15/28 - 10/15/28 13,361,474 13,772,902
48,720,619
TOTAL AGENCY MORTGAGE BACKED
(COST $115,040,958) 116,544,255
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.7%
Federal National Mortgage
Assoc. REMIC
3.50% 10/25/21 14,200,000 12,615,706
5.00% 01/25/23 1,415,251 1,399,216
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $12,753,626) 14,014,922
ASSET BACKED -- 1.1%
Green Tree Financial Corp.
8.41% 12/01/30
(COST $ 3,998,750) 4,000,000 3,986,250
- ----------------
See Notes to Schedules of Investments and Financial Statements.
65
<PAGE>
GE GOVERNMENT SECURITIES FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE NOTES -- 8.9%
Abbey National PLC
7.35% 10/29/49 $2,500,000 $2,533,225
Bank Austria AG
7.25% 02/15/17 2,500,000 2,543,850
Continental Cablevision Inc.
8.30% 05/15/06 1,250,000 1,379,587
Hydro-Quebec
8.25% 04/15/26 2,500,000 2,958,375
J P Morgan & Co.
6.00% 01/15/09 3,000,000 2,894,400
Korea Development Bank
7.125% 09/17/01 2,500,000 2,450,800
Merita Bank Ltd.
7.15% 12/29/49 1,250,000 1,248,400(b)
National Westminster Bank PLC
7.75% 04/29/49 2,500,000 2,604,175
Norwest Asset Securities Corp.
7.25% 12/25/27 3,340,231 3,359,571
6.25% 12/25/28 2,394,243 2,087,325
Philip Morris Cos. Inc.
7.20% 02/01/07 2,500,000 2,602,800
Sun Life Canada Capital Trust
8.526% 05/29/49 2,500,000 2,558,950(b)
Tele-Communications Inc.
9.25% 04/15/02 2,500,000 2,746,500
Washington Mutual Capital
8.375% 06/01/27 1,250,000 1,312,750
TOTAL CORPORATE NOTES
(COST $33,428,322) 33,280,708
NON-AGENCY MORTGAGE BACKED SECURITIES -- 1.9%
DLJ Mortgage Acceptance Corp.
6.99% 02/15/05 789,018 778,662(b)
Structured Asset Securities Corp.
5.536% 06/15/15 6,418,179 6,384,082(b)
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $7,209,786) 7,162,744
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.4%
NYC Mortgage Loan Trust
6.75% 06/25/06
(COST $4,953,778) 5,106,584 5,189,566(b)
TOTAL INVESTMENTS IN SECURITIES
(COST $351,741,105) 356,099,601
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 14.2%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $53,213,426) 53,213,426 53,213,426
EXPIRATION DATE/ NUMBER OF
STRIKE PRICE CONTRACTS VALUE
- --------------------------------------------------------------------------------
CALL OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/98.56 (3,626) $ (283)
U.S. Treasury Notes Apr 99/99.56 (3,560) (1,139)
U.S. Treasury Notes Apr 99/98.72 (3,580) (3,636)
(WRITTEN OPTION PREMIUM $(29,461)) (5,058)
- --------------------------------------------------------------------------------
PUT OPTIONS -- 0.0%
- --------------------------------------------------------------------------------
U.S. Treasury Notes Apr 99/92.56 (3,626) (3,966)
U.S. Treasury Notes Apr 99/93.56 (3,560) (21,929)
U.S. Treasury Notes Apr 99/92.72 (3,580) (18,180)
(WRITTEN OPTION PREMIUM $(32,555)) (44,075)
OTHER ASSETS AND LIABILITIES,
NET (9.6)% (35,888,368)
-----------
NET ASSETS-- 100% $373,375,526
============
- ----------
See Notes to Schedules of Investments and Financial Statements.
66
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
TWO YEAR TREASURY NOTE YIELD HISTORY
4/1/98 -- 3/31/99
[LINE GRAPH OMITTED]
PERCENTAGE
4/1/98 5.53
4/8/98 5.47
4/15/98 5.53
4/22/98 5.59
4/29/98 5.71
5/6/98 5.53
5/13/98 5.59
5/20/98 5.56
5/27/98 5.57
6/3/98 5.52
6/10/98 5.53
6/17/98 5.54
6/24/98 5.49
7/1/98 5.45
7/8/98 5.44
7/15/98 5.45
7/22/98 5.46
7/29/98 5.50
8/5/98 5.40
8/12/98 5.30
8/19/98 5.33
8/26/98 5.11
9/2/98 4.93
9/9/98 4.76
9/16/98 4.74
9/23/98 4.56
9/30/98 4.27
10/7/98 4.14
10/14/98 4.09
10/21/98 4.05
10/28/98 4.07
11/4/98 4.44
11/11/98 4.50
11/18/98 4.61
11/25/98 4.65
12/2/98 4.36
12/9/98 4.42
12/16/98 4.33
12/23/98 4.70
12/30/98 4.54
1/6/99 4.58
1/13/99 4.55
1/20/99 4.64
1/27/99 4.59
2/3/99 4.70
2/10/99 4.79
2/17/99 4.87
2/24/99 5.07
3/3/99 5.17
3/10/99 5.03
3/17/99 4.99
3/24/99 4.99
3/31/99 4.99
HIGH 5.71%
LOW 4.05%
AVG. 4.98%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level
of income consistent with prudent investment management
and the preservation of capital by investing primarily in
short-term U.S. Government securities.
* LIPPER PERFORMANCE COMPARISON
SHORT-TERM U.S. GOVERNMENT BOND PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 197 191 113
Peer group average
annual total return: 0.67% 5.33% 5.60%
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 NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T GE SHORT-TERM GOV'T W/LOAD LB 1-3 YR.
3/2/94 $10000.00 $10000.00 $10000.00
9942.30 9693.74 9949.00
9939.96 9691.46 9949.88
SEP-94 10039.62 9788.63 10049.39
10046.85 9795.68 10049.26
10323.98 10065.88 10382.28
10642.26 10376.20 10711.33
SEP-95 10790.10 10520.35 10871.71
11023.38 10747.79 11138.03
11046.68 10770.51 11181.07
11135.85 10857.45 11298.75
SEP-96 11289.72 11007.48 11488.39
11499.44 11211.95 11706.52
11580.09 11290.59 11781.51
11791.65 11496.86 12043.80
SEP-97 12001.30 11701.26 12279.88
12169.37 11865.13 12484.77
12332.21 12023.90 12665.17
12474.30 12162.44 12858.66
SEP-98 12854.00 12530.00 13253.24
12902.51 12577.59 13356.89
MAR-99 12990.16 12663.03 13438.07
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Short-Term Gov't 1.06% 5.34% 5.49% 5.28%
GE Short-Term Gov't w/load (1.48)% 2.73% 4.97% 4.76%
(maximum load-2.5%)
LB 1-3 Yr. 1.38% 6.09% 6.20% 5.98%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T GE SHORT-TERM GOV'T W/LOAD LB 1-3 YR.
3/2/94 $10000.00 $10000.00 $10000.00
9939.30 9939.30 9949.00
9936.92 9936.92 9949.88
SEP-94 10019.58 10019.58 10049.39
10017.76 10017.76 10049.26
10285.38 10285.38 10382.28
10593.60 10593.60 10711.33
SEP-95 10722.29 10722.29 10871.71
10944.67 10944.67 11138.03
10958.27 10958.27 11181.07
11037.10 11037.10 11298.75
SEP-96 11189.26 11189.26 11488.39
11377.44 11377.44 11706.52
11447.24 11447.24 11781.51
11656.10 11656.10 12043.80
SEP-97 11842.93 11842.93 12279.88
11998.26 11998.26 12484.77
12148.34 12148.34 12665.17
12288.55 12288.55 12858.66
SEP-98 12652.00 12652.00 13253.24
12688.42 12688.42 13356.89
MAR-99 12763.36 12763.36 13438.07
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Short-Term Gov't 0.88% 5.06% 5.13% 4.92%
GE Short-Term Gov't w/load (2.07)% 2.06% 5.13% 4.92%
maximum load 3.0% 3.0% 0.0% 0.0%
LB 1-3 Yr. 1.38% 6.09% 6.20% 5.98%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T LB 1-3 YR.
3/2/94 $10000.00 $10000.00
9942.80 9949.00
9955.14 9949.88
SEP-94 10052.77 10049.39
10074.78 10049.26
10359.10 10382.28
10684.97 10711.33
SEP-95 10831.26 10871.71
11081.52 11138.03
11102.52 11181.07
11208.51 11298.75
SEP-96 11370.47 11488.39
11588.85 11706.52
11667.42 11781.51
11898.02 12043.80
SEP-97 12117.11 12279.88
12294.69 12484.77
12455.99 12665.17
12616.79 12858.66
SEP-98 13009.00 13253.24
13066.33 13356.89
MAR-99 13162.85 13438.07
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Short-Term Gov't 1.19% 5.67% 5.77% 5.56%
LB 1-3 Yr. 1.38% 6.09% 6.20% 5.98%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T LB 1-3 YR.
3/2/94 $10000.00 $10000.00
9946.30 9949.00
9964.81 9949.88
SEP-94 10068.86 10049.39
10088.45 10049.26
10379.78 10382.28
10712.87 10711.33
SEP-95 10866.25 10871.71
11124.38 11138.03
11152.31 11181.07
11265.73 11298.75
SEP-96 11435.67 11488.39
11662.73 11706.52
11748.92 11781.51
11988.60 12043.80
SEP-97 12217.07 12279.88
12403.82 12484.77
12574.67 12665.17
12747.06 12858.66
SEP-98 13151.00 13253.24
13218.06 13356.89
MAR-99 13335.26 13438.07
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Short-Term Gov't 1.40% 6.05% 6.04% 5.83%
LB 1-3 Yr. 1.38% 6.09% 6.20% 5.98%
67
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE SHORT-TERM GOVERNMENT FUND
[PIE CHART OMITTED]
MORTGAGE BACKED & CASH & OTHER 33.6%
FEDERAL AGENCIES 27.1%
U.S. TREASURIES 17.8%
ASSET BACKED 12.8%
CORPORATE NOTES 8.7%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 101.6%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 17.8%
U.S. Treasury Notes
5.00% 02/28/01 $ 780,000 $ 780,125(h)
4.875% 03/31/01 510,000 509,004
6.625% 03/31/02 1,599,000 1,664,463(h)
5.875% 09/30/02 1,050,000 1,073,300(h)
5.75% 11/30/02 215,000 218,930
TOTAL U.S. TREASURIES
(COST $4,268,908) 4,245,822
FEDERAL AGENCIES -- 27.1%
Federal Home Loan Bank
5.50% 04/01/99 650,000 650,000(d)
5.625% 03/19/01 910,000 915,260
1,565,260
Federal National Mortgage Assoc.
5.56% 07/24/00 1,110,000 1,113,296
5.10% 09/25/00 2,279,000 2,271,867
5.380% 01/16/01 675,000 675,844
5.625% 03/15/01 853,000 859,534
4,920,541
TOTAL FEDERAL AGENCIES
(COST $6,520,837) 6,485,801
AGENCY MORTGAGE BACKED -- 29.8%
Federal Home Loan Mortgage Corp.
5.00% 02/15/01 4,500,000 4,483,125
8.00% 08/01/03 144,882 148,685
5.929% 05/25/06 225,105 225,668
6.00% 12/01/08 50,304 49,988(h)
4,907,466
Federal National Mortgage Assoc.
6.59% 09/01/02 378,363 382,265
6.504% 09/17/04 132,650 133,189
6.88% 11/17/06 79,814 80,812
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
9.00% 08/01/10 $ 202,611 $ 217,363
7.00% 06/18/20 25,371 25,379(b)
839,008
Federal National Mortgage
Assoc. REMIC
6.181% 05/25/14 170,428 171,227
Government National Mortgage Assoc.
9.00% 08/15/09 - 12/15/09 541,593 575,706
9.50% 12/15/09 571,192 620,278
1,195,984
TOTAL AGENCY MORTGAGE BACKED
(COST $7,115,171) 7,113,685
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.7%
Federal Home Loan Mortgage Corp.
6.25% 09/15/18 138,737 139,517
Federal Home Loan Mortgage
Corp. REMIC
25.44% 09/15/05 110 788 (d,g)
25.94% 07/15/06 211 2,848 (d,g)
3,636
Federal National Mortgage
Assoc. REMIC
6.68% 11/25/06 14,180 13,802 (d,f)
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $156,514) 156,955
ASSET BACKED -- 12.8%
American Express Master Trust
5.375% 09/15/00 142,000 141,733
AT&T Universal Card Master Trust
5.95% 10/17/02 260,000 261,867
California Infrastructure
6.16% 06/25/03 266,000 268,411
Capital Asset Research Funding L.P.
6.40% 12/15/04 53,522 53,923
Carco Auto Loan Master Trust
5.65% 03/15/03 266,000 267,122
Chemical Master Credit Card Trust I
5.55% 09/15/03 350,000 349,779
Citibank Credit Card Master Trust I
5.85% 01/15/03 50,000 50,203
Discover Card Master Trust I
5.80% 09/16/03 200,000 200,812
5.75% 10/16/03 311,000 310,804
5.30% 08/15/04 311,000 307,259
5.90% 10/15/04 266,000 268,161
Fleetwood Credit Grantor Trust
6.40% 05/15/13 99,494 100,520
Green Tree Financial Corp.
6.90% 04/15/18 159,822 162,219
Premier Auto Trust
5.77% 01/06/02 250,000 251,015
6.34% 01/06/02 33,000 33,381
Provident Bank Home Equity Loan Trust
6.72% 01/25/13 37,666 38,069
TOTAL ASSET BACKED
(COST $3,065,784) 3,065,278
- -----------
See Notes to Schedules of Investments and Financial Statements.
68
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE NOTES -- 8.7%
Carnival Corp.
5.65% 10/15/00 $ 125,000 $ 125,009
Conseco Inc.
6.40% 06/15/01 40,000 39,335
Federated Department Stores Inc.
6.125% 09/01/01 120,000 120,949
Fleet Credit Card LLC
6.45% 10/30/00 250,000 252,877
Ford Motor Credit Co.
5.65% 10/15/01 260,000 260,487
7.32% 05/23/02 150,000 150,347
Goldman Sachs Group L.P.
6.20% 12/15/00 100,000 100,439(b)
LG&E Capital Corp.
5.75% 11/01/01 50,000 49,807(b)
MCI Worldcom Inc.
6.125% 08/15/01 50,000 50,463
Monsanto Co.
5.375% 12/01/01 250,000 247,814(b)
Republic of Columbia
8.75% 10/06/99 50,000 50,000
Tyco International Ltd.
6.50% 11/01/01 275,000 279,617
USA Waste Services Inc.
6.125% 07/15/01 100,000 100,440
Vastar Resources Inc.
6.00% 04/20/00 100,000 100,381
Woolworth Corp.
7.00% 06/01/00 150,000 146,825
TOTAL CORPORATE NOTES
(COST $2,078,114) 2,074,790
NON-AGENCY MORTGAGE BACKED SECURITIES -- 3.4%
Asset Securitization Corp.
6.50% 02/14/41 422,125 426,016
DLJ Mortgage Acceptance Corp.
5.283% 02/08/00 201,890 201,448(b)
GS Mortgage Securities Corp.
6.94% 07/13/30 142,685 145,361
Lehman FHA Title I Loan Trust
7.30% 05/25/17 32,807 33,165
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $805,033) 805,990
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.3%
BlackRock Capital Finance
7.05% 12/25/08 299,021 299,021
Salomon Brothers Mortgage
Securities Inc.
8.125% 11/01/12 22,239 22,329
6.469% 01/20/28 2,179 2,191
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $324,355) 323,541
TOTAL INVESTMENTS IN SECURITIES
(COST $24,334,716) 24,271,862
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.0%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $9,228) 9,228 $ 9,228
OTHER ASSETS AND LIABILITIES,
NET (1.6)% (382,966)
-----------
NET ASSETS-- 100% $23,898,124
===========
- -------------
See Notes to Schedules of Investments and Financial Statements.
69
<PAGE>
GE TAX-EXEMPT FUND
Q&A
BARBARA A. BRINKLEY, A MANAGER OF BROWN BROTHERS HARRIMAN AND CO. ("BROWN
BROTHERS") 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 $33 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.
Q. HOW DID THE GE TAX-EXEMPT FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM FOR
THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. For the six-month period ended March 31, 1999, the Lehman Brothers 10-Year
Municipal Index returned 1.22%. Our Lipper peer group of 318 Intermediate
Municipal Debt funds posted an average return of 0.92% for the same period.
To see how your class of shares in the GE Tax-Exempt Fund performed compared
to its benchmark, please refer to the following page.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
A. During the period, we extended the fund's average maturity and duration,
anticipating that U.S. economic growth would slow, and that the array of
long-term secular influences -- low inflation, tight fiscal policy, high
real yields and positive capital inflows -- would lead to lower interest
rates over time. In fact, the momentum of economic activity has yet to show
signs of abating, as consumer outlays continue to surge and home sales push
further into record territory. Municipal interest rates rose 0.15% to 0.20%
during the period, which negatively impacted our performance relative to the
benchmark. At the same time, our emphasis on high coupon securities
benefited performance with greater tax-free income than the benchmark.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. Our investment strategy has been to position the fund to benefit from lower
interest rates, which we still anticipate. Our approach is two-fold: 1) to
lock in high tax-exempt income that is protected against an early call; and
2) to generate principal appreciation by positioning the fund's duration
(approximately 7.32 years at March 31) somewhat longer than the benchmark's
duration (6.90 years). We only purchase securities that pass our screens of
high credit quality municipal issues that are not subject to Alternative
Minimum Tax ("AMT") and are not derivative securities.
Q. WHICH SECTORS DO YOU LIKE?
A. We prefer the issues in the intermediate and longer intermediate maturity
range (7 to 18 years), which we believe best balance opportunity and risk.
These maturities lock in the higher tax-free yields of an upward sloping
municipal yield curve and will potentially benefit the fund as interest
rates fall and roll down the yield curve over time. We emphasize
call-protected premium coupon bonds and like issues that are fully backed by
U.S. Government securities held in escrow by the bond trustee. These bonds
are of the highest credit quality and are immune to any changes in the
issuers' economy or repayment ability.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Going forward, we expect evidence of economic deceleration and productivity
gains to materialize and help keep inflation low, which will allow municipal
interest rates to resume their secular decline. The portfolio is positioned
to benefit from lower interest rates.
[PHOTO OF BARBARA A. BRINKLEY OMITTED]
70
<PAGE>
GE TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings+ Net Assets
- --------------------------------------------------------------------------------
Aaa 75.8%
Aa 17.5%
A 2.9%
Baa 1.2%
N/A 2.6%
- --------------------------------------------------------------------------------
100.0%
+ MOODY'S INVESTORS SERVICES, INC./
STANDARD & POOR'S ARE NATIONALLY
RECOGNIZED STATISTICAL RATING ORGANIZATIONS.
INVESTMENT PROFILE
A mutual fund designed for investors who seek
a high level of income exempt from Federal
income taxes while preserving capital by
investing primarily in investment-grade
municipal securities.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE MUNICIPAL DEBT
PEER GROUP BASED ON AVERAGE ANNUAL TOTAL
RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 318 315 189
Peer group
average annual
total return: 0.92% 4.92% 5.94%
Lipper categories
in peer group: INTERMEDIATE
MUNICIPAL DEBT,
INCLUDING SINGLE
STATE FUNDS
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LBMI
9/8/93 $10000.00 $10000.00 $10000.00
10030.21 9603.93 10125.00
10162.36 9730.46 10277.54
9724.93 9311.62 9710.26
9794.65 9378.38 9853.84
SEP-94 9883.82 9463.75 9917.70
9793.39 9377.17 9755.27
10427.05 9983.90 10446.56
10613.47 10162.40 10709.77
SEP-95 10813.77 10354.18 11087.72
11289.22 10809.43 11426.93
11110.74 10638.54 11372.75
11208.40 10732.04 11386.87
SEP-96 11508.82 11019.69 11626.07
11742.69 11243.63 11971.57
11833.68 11330.75 11966.21
12101.14 11586.85 12377.44
SEP-97 12403.79 11876.63 12753.05
12590.07 12054.99 13077.91
12705.81 12165.81 13221.72
12836.42 12290.87 13426.97
SEP-98 13185.00 12626.00 13903.97
13223.47 12661.94 13969.41
MAR-99 13271.20 12707.64 14048.47
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Tax-Exempt 0.65% 4.48% 6.42% 5.22%
GE Tax-Exempt w/load (3.66)% 0.02% 5.50% 4.40%
(maximum load-4.25%)
LBMI 1.22% 6.27% 7.63% 6.28%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LBMI
9/8/93 $10000.00 $10000.00 $10000.00
10034.24 10034.24 10125.00
10146.76 10146.76 10277.54
9682.67 9682.67 9710.26
9742.67 9742.67 9853.84
SEP-94 9826.66 9826.66 9917.70
9736.87 9736.87 9755.27
10366.28 10366.28 10446.56
10560.87 10560.87 10709.77
SEP-95 10759.89 10759.89 11087.72
11222.51 11222.51 11426.93
11045.21 11045.21 11372.75
11152.07 11152.07 11386.87
SEP-96 11450.52 11450.52 11626.07
11672.73 11672.73 11971.57
11763.04 11763.04 11966.21
12026.41 12026.41 12377.44
SEP-97 12305.35 12305.35 12753.05
12474.52 12474.52 13077.91
12573.35 12573.35 13221.72
12671.61 12671.61 13426.97
SEP-98 13000.00 13000.00 13903.97
13020.86 13020.86 13969.41
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Tax-Exempt 0.40% 3.84% 6.15% 4.91%
GE Tax-Exempt w/load (2.56)% 0.84% 6.00% 4.91%
maximum load 3.0% 3.0% 1.0% 0.0%
LBMI 1.22% 6.27% 7.63% 6.28%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT LBMI
9/26/97 $10000.00 $10000.00
DEC-97 10168.00 10254.73
MAR-98 10276.00 10367.49
JUN-98 10377.00 10528.43
SEP-98 10663.00 10902.46
OCT-98 10650.15 10885.70
NOV-98 10672.59 10918.36
DEC-98 10703.08 10952.20
JAN-99 10847.97 11119.77
FEB-99 10791.47 11019.69
MAR-99 10750.87 11014.18
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Tax-Exempt 0.83% 4.62% 4.90%
LBMI 1.22% 6.27% 6.66%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT LBMI
9/26/97 $10000.00 $10000.00
DEC-97 10175.00 10254.73
MAR-98 10291.00 10367.49
JUN-98 10441.00 10528.43
SEP-98 10744.00 10902.46
OCT-98 10733.97 10885.70
NOV-98 10750.02 10918.36
DEC-98 10783.15 10952.20
JAN-99 10931.56 11119.77
FEB-99 10876.77 11019.69
MAR-99 10838.44 11014.18
9/26/9 10000.00 10000.00
Dec-97 10175.00 10254.73
Mar-98 10291.00 10367.49
Jun-98 10441.00 10528.43
Sep-98 10744.00 10902.46
Oct-98 10733.97 10885.70
Nov-98 10750.02 10918.36
Dec-98 10783.15 10952.20
Jan-99 10931.56 11119.77
Feb-99 10876.77 11019.69
Mar-99 10838.44 11014.18
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
GE Tax-Exempt 0.88% 5.32% 5.47%
LBMI 1.22% 6.27% 6.66%
71
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE TAX-EXEMPT FUND
[PIE CHART OMITTED]
ENERGY & UTILITIES 17.6%
TRANSPORTATION 14.2%
WATER & SEWER 13.9%
HOUSING 12.1%
GENERAL OBLIGATIONS 11.9%
HOSPITAL 9.3%
EDUCATION 8.2%
SALES TAX 5.7%
CASH & OTHER 4.1%
LEASE REVENUE 3.0%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 96.9%
- --------------------------------------------------------------------------------
ARKANSAS -- 3.3%
Arkansas Housing Development
Agency Rev. - Housing
8.375% 07/01/10 $ 370,000 $ 456,894(i)
5.793% 07/01/11 305,000 409,478(i)
Pulaski County Arkansas Hospital
Rev. - Health
9.25% 03/01/10 195,000 248,479(i)
1,114,851
CALIFORNIA -- 4.0%
Sacramento California Utility
Rev. - Electric Utility
9.00% 04/01/13 720,000 976,680(i)
San Diego California Hospital
Rev. - Health
8.875% 02/01/11 290,000 368,109(i)
1,344,789
COLORADO -- 2.1%
Colorado Springs Colorado Utility
Rev. - Electric Utility
6.187% 11/15/11 100,000 130,401(i)
Denver Colorado City & County,
Housing Finance
Authority - Housing
7.00% 08/01/10 510,000 589,361(i)
719,762
[ICON OMITTED]
CONNECTICUT -- 5.5%
Connecticut State Health &
Educational Fac. Auth.
Rev. - Health
5.50% 07/01/12 500,000 533,750(k)
7.00% 07/01/12 765,000 885,495(i)
Connecticut State Housing
Finance Auth. Rev. - Housing
6.05% 05/15/14 410,000 435,051
1,854,296
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
FLORIDA -- 4.9%
Dade County Florida Special
Obligation - Special Tax
8.625% 12/01/07 $ 385,000 $ 485,908 (i,k)
Florida State Board Of Education
Capital Outlay Refunding Public
Education (Series B) - Education
5.00% 06/01/14 580,000 591,153
Florida State Broward County G.O.
10.00% 07/01/14 235,000 355,734
Gainesville Florida Utilities Systems
Rev. - Electric Utility
8.125% 10/01/14 175,000 204,143(i)
1,636,938
GEORGIA -- 3.5%
Atlanta Georgia G.O.
5.00% 12/01/09 360,000 377,849
Clarke County Georgia Hospital
Auth. Rev. - Health
9.875% 01/01/06 80,000 101,680 (i,k)
Columbus Georgia Medical Center
Hospital Auth. Rev. - Health
7.75% 07/01/10 305,000 370,118(i)
Metropolitan Rapid Transportation
Auth. - Transportation
7.00% 07/01/11 260,000 317,418(i)
1,167,065
HAWAII -- 1.5%
Hawaii State G.O.
5.00% 04/01/15 500,000 500,210(k)
IDAHO -- 2.4%
Idaho Falls Idaho Electric
Rev. - Electric Utility
10.375% 04/01/07 570,000 804,065(j)
ILLINOIS -- 0.1%
Chicago Illinois Motor Fuel
Tax Rev. - Sales Tax
6.50% 01/01/01 20,000 20,997 (j,k)
Chicago Illinois Wastewater Treatment
Rev. - Water & Sewer
6.30% 01/01/03 20,000 22,089 (j,k)
43,086
INDIANA -- 2.9%
Indiana State Toll Road Commission
Rev. - Transportation
9.00% 01/01/15 315,000 453,757
Indiana University Rev. - Education
6.00% 11/15/14 290,000 315,210
Purdue University Rev. - Education
5.25% 07/01/11 200,000 211,960
980,927
- -------------
See Notes to Schedules of Investments and Financial Statements.
72
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
IOWA -- 3.6%
Muscatine Iowa Electric Rev. -
Electric Utility
9.70% 01/01/13 $ 865,000 $1,206,173(i)
LOUISIANA -- 1.9%
Jefferson Parish Louisiana Hospital
Rev. - Health
7.25% 01/01/09 550,000 631,224(i)
MAINE -- 0.0%
Maine Municipal Bond Bank G.O.
7.10% 11/01/99 10,000 10,425(j)
[ICON OMITTED]
MASSACHUSETTS -- 10.1%
Massachusetts State G.O.
6.75% 08/01/09 90,000 97,729(k)
5.25% 08/01/15 750,000 777,525
Massachusetts State Port
Auth. Rev. - Trans.
13.00% 07/01/13 1,035,000 1,726,494(i)
5.50% 07/01/17 750,000 788,168
3,389,916
MICHIGAN -- 5.4%
Michigan Municipal Bond Auth.
Rev. Drinking Water Revolving
Fund - Water & Sewer
5.25% 12/01/11 500,000 527,720
5.25% 10/01/14 500,000 519,015
Michigan State Hospital Finance
Auth. Rev. - Health
9.00% 05/01/08 595,000 764,611(i)
1,811,346
MISSISSIPPI -- 1.9%
Mississippi State G.O.
6.20% 02/01/08 580,000 655,939(i)
MISSOURI -- 0.1%
Lees Summit Missouri Water &
Sewer Rev. - Water & Sewer
10.00% 07/01/00 20,000 21,624 (j,k)
NEW JERSEY -- 2.5%
Atlantic City New Jersey
Improvement Auth.
Rev. - Lease Rev.
7.40% 03/01/12 310,000 382,472(k)
Atlantic County New Jersey
Improvement Auth. - Lease Rev.
7.40% 07/01/16 135,000 171,758 (i,k)
New Jersey State Tpke. Auth.
Rev. - Trans.
6.50% 01/01/16 250,000 296,785(k)
851,015
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
NEW YORK -- 10.0%
Erie County New York Water Auth.
Rev. - Water & Sewer
6.00% 12/01/08 $ 400,000 $ 443,168 (i,k)
Long Island Power Authority
New York Electric System -
Electric Utility
5.00% 12/01/18 250,000 247,975
5.75% 12/01/24 200,000 212,862
New York City Transitional
Finance Auth. Rev. - Sales Tax
5.00% 08/15/16 450,000 450,877
New York New York G.O.
3.40% 04/01/99 300,000 300,000
New York State Dormitory
Auth.Rev. - Education
7.50% 05/15/11 165,000 201,219
5.20% 02/15/16 200,000 200,828
7.375% 07/01/16 640,000 802,522(i)
5.00% 05/15/17 500,000 496,145
3,355,596
NORTH CAROLINA -- 4.7%
North Carolina Municipal Power
Rev. - Electric Utility
10.50% 01/01/10 1,175,000 1,591,808(i)
OHIO -- 4.5%
Columbus Ohio G.O.
6.00% 07/01/02 50,000 54,399(j)
Ohio State Building Auth.
State Juvenile Correctional
Facilities (Series A)
5.25% 10/01/15 400,000 414,612
Ohio State Higher Educational
Rev. - Education
6.00% 05/15/09 550,000 616,044(k)
Ohio State Water Development
Auth. Rev. - Water & Sewer
7.00% 12/01/09 355,000 417,434 (i,k)
1,502,489
[ICON OMITTED]
PENNSYLVANIA -- 10.8%
Allegheny County Pennsylvania
Hospital Development
Rev. - Health
7.375% 07/01/12 365,000 443,282(i)
Pennsylvania Intergovernmental
Co-op. - Special Tax
5.60% 06/15/15 500,000 534,945(k)
Philadelphia Pennsylvania School
District (Series A) - Education
5.25% 04/01/16 250,000 255,960(k)
Pittsburgh Pennsylvania Water &
Sewer Rev. - Water & Sewer
7.25% 09/01/14 880,000 1,077,058 (i,k)
Pittsburgh Pennsylvania Water &
Sewer Systems Rev. - Water & Sewer
6.00% 09/01/16 255,000 288,400 (i,k)
- ----------
See Notes to Schedules of Investments and Financial Statements.
73
<PAGE>
GE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Southeastern Pennsylvania
Transportation Authority
Pennsylvania (Series A) - Trans.
5.25% 03/01/17 $1,000,000 $ 1,026,270(k)
3,625,915
PENNSYLVANIA & NEW JERSEY -- 1.0%
Delaware River Port Authority
Pennsylvania & New Jersey - Trans.
6.50% 01/15/11 315,000 353,575(i)
[ICON OMITTED]
TEXAS -- 6.0%
Houston Texas Sewer Systems
Rev. - Water & Sewer
9.375% 10/01/13 1,065,000 1,522,481 (i,k)
Laredo Texas International
Toll Bridge Rev. - Transportation
5.00% 10/01/17 500,000 498,505(k)
2,020,986
UTAH -- 0.0%
Intermountain Power Agency
Utah Rev. - Electric Utility
7.20% 07/01/99 10,000 10,300(j)
WASHINGTON -- 0.1%
Snohomish County Washington
Public Utility Rev. - Electric Utility
6.375% 01/01/05 20,000 22,314(i)
WISCONSIN -- 1.5%
Wisconsin State (Series A) G.O.
5.00% 05/01/14 500,000 507,700
PUERTO RICO -- 2.6%
Puerto Rico Commonwealth
Aquaduct & Sewer Rev. -
Water & Sewer
10.25% 07/01/09 660,000 890,003(i)
TOTAL INVESTMENTS IN SECURITIES
(COST $31,766,794) 32,624,337
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund 3,146 $ 3,146
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Chevron USA Inc.
4.952% 4/1/99 $250,000 250,000
TOTAL SHORT-TERM INVESTMENTS
(COST $253,146) 253,146
OTHER ASSETS AND LIABILITIES,
NET 2.4% 807,167
-----------
NET ASSETS-- 100% $33,684,650
===========
- -------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE STATE WEIGHTINGS IN THE GE TAX-EXEMPT FUND AS OF
MARCH 31, 1999.
74
<PAGE>
GE HIGH YIELD FUND
Q&A
ROBERT E. ANGEVINE (PICTURED ON THE LEFT), THOMAS L. BENNETT AND STEPHEN F.
ESSER (PICTURED ON THE RIGHT) OF MILLER ANDERSON & SHERRERD, LLP ("MAS") ARE
CO-PORTFOLIO MANAGERS OF THE GE HIGH YIELD FUND. MAS, WITH $20.7 BILLION IN
ASSETS UNDER MANAGEMENT, IS A WHOLLY-OWNED SUBSIDIARY OF MORGAN STANLEY DEAN
WITTER & CO. AND THE FUND'S SUB-ADVISOR.
MR. ANGEVINE, A PRINCIPAL AT MAS, HAS MORE THAN 18 YEARS OF INVESTMENT
EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD BOND PORTFOLIOS SINCE 1988. PRIOR TO
JOINING MAS IN 1996, MR. ANGEVINE WAS EMPLOYED BY MORGAN STANLEY & CO. INC. PAST
POSITIONS INCLUDE MANAGING DIRECTOR AT PRUDENTIAL INSURANCE, TREASURY ANALYST AT
SCHERING-PLOUGH CORP., AND EUROPEAN AMERICAN BANK. HE HOLDS A B.A. IN ECONOMICS
FROM LAFAYETTE COLLEGE AND A M.B.A. FROM FAIRLEIGH DICKINSON UNIVERSITY.
MR. BENNETT, A MANAGING DIRECTOR OF MAS, HAS MORE THAN 19 YEARS OF INVESTMENT
EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD BOND PORTFOLIOS SINCE 1989. PRIOR TO
JOINING MAS IN 1984, MR. BENNETT SERVED AS PORTFOLIO MANAGER AT E.I. DU PONT DE
NEMOURS & CO. MR. BENNETT IS A CHARTERED FINANCIAL ANALYST AND A TRUSTEE FOR THE
HAVERFORD SCHOOL. HE HOLDS A B.S. IN CHEMISTRY AND A M.B.A. FROM THE UNIVERSITY
OF CINCINNATI.
MR. ESSER, A MANAGING DIRECTOR OF MAS, HAS MORE THAN 13 YEARS OF INVESTMENT
EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD BOND PORTFOLIOS SINCE 1989. PRIOR TO
JOINING MAS IN 1988, MR. ESSER SERVED AS ASSISTANT VICE PRESIDENT, FIXED INCOME
GROUP AT KIDDER, PEABODY & CO. AND AS CREDIT ANALYST AT FIRST NATIONAL BANK OF
MARYLAND. MR. ESSER IS A CHARTERED FINANCIAL ANALYST AND A MEMBER OF THE NEW
YORK SOCIETY OF SECURITY ANALYSTS. HE HOLDS A B.S. (SUMMA CUM LAUDE) FROM THE
UNIVERSITY OF DELAWARE.
Q. HOW DID THE GE HIGH YIELD FUND'S BENCHMARK PERFORM FROM THE PERIOD OF THE
FUND'S INCEPTION (DECEMBER 31, 1998) THROUGH MARCH 31, 1999?
A. During the period from inception of the fund (December 31, 1998) through
March 31, 1999, the Salomon High Yield Index posted a return of 1.50%. To see
how your class of shares in the GE High Yield Fund performed compared to its
benchmark, please refer to the following page.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The fund outperformed its benchmark primarily as a result of a large
overweight in the telecommunications sector, which demonstrated strong
performance. Consolidation, merger and acquisitions, equity investments and
initial public offerings showed the inherent asset values in many of the
companies in this sector. The fund's performance also benefited from the
portfolio's exposure to non-U.S. issues and security selection across
sectors. After concern early in the quarter over the much anticipated
devaluation of the Brazilian currency, the Yankee sector benefited from the
upgrade of Korean sovereign debt to investment grade and from reduced fears
of contagion from Brazil. Exposure to the healthcare sector, which is under
pressure, and an underweight in commodity and cyclical issues, which started
to rebound in the quarter, detracted from relative performance.
Q. HOW DO YOU PICK BONDS?
A. We focus on security selection based on bottom up, fundamental credit
analysis. We do an initial screening of the high yield universe and invest
only in the largest capitalization issuers which helps to enhance liquidity
for the fund and increases the financial flexibility of the issuer. We
perform careful financial analysis to determine the company's prospects,
capital structure and ability to service its debt. Once we are comfortable
with these factors, we attempt to determine fair value for the bonds
relative to other issues trading in the market while being certain to take
into account call provisions and seniority in the capital structure. If a
bond is priced cheap enough relative to another bond held in the portfolio,
we will add it to the portfolio as long it does not increase the risk
profile to an undesired level.
Q. WHAT ARE THE FUND'S SECTOR WEIGHTINGS?
A. We maintain maximum exposure to the telecommunications sector because we
continue to find attractively priced bonds from issuers that are creating
real value. We have selectively reduced exposure to non-U.S. issues but
still maintain an overweight. We had been significantly underweighted in the
cyclical and commodity sensitive sectors such as energy, steel and paper,
but began to opportunistically increase its weight during the quarter.
Q. WHAT IS THE OUTLOOK FOR THE HIGH YIELD BOND MARKET AND FOR YOUR FUND?
A. Even in light of its strong recent performance relative to high quality
bonds, the high yield market still offers relative yield levels that are
very attractive on an historical basis. Absolute yield levels, even after
adjusting for the probability of some default losses, compare favorably to
other asset classes including equities. Expected returns should also benefit
from price increases as prices of high yield bonds, which we believe are
below fair value, move closer to long run equilibrium levels. We continue to
find a number of attractive, bottom up investment opportunities in the high
yield sector.
[PHOTO OF ROBERT E. ANGEVINE ANDSTEPHEN F. ESSER OMITTED]
75
<PAGE>
GE HIGH YIELD FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 1999
- --------------------------------------------------------------------------------
Moody's/ Percent of
S&P Ratings+ Net Assets
- --------------------------------------------------------------------------------
BBB 0.95%
BB 39.59%
B 46.76%
CCC 2.69%
NR 1.84%
Other 8.17%
- --------------------------------------------------------------------------------
100.0%
+ MOODY'S INVESTORS SERVICES, INC./
STANDARD & POOR'S ARE NATIONALLY
RECOGNIZED STATISTICAL RATING ORGANIZATIONS.
INVESTMENT PROFILE
A mutual fund designed for investors who seek above-average total
return over a market cycle of three to five years, consistent with
reasonable risk, by investing primarily in high yield securities
(including bonds rated below investment grade).
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD GE HIGH YIELD W/LOAD SALOMON HIGH YIELD
12/31/98 $10000.00 $10000.00 $10000.00
JAN-99 10056.24 9628.85 10149.80
FEB-99 10008.20 9582.85 10064.54
MAR-99 10182.46 9749.71 10149.59
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund 1.82%
GE High Yield Fund
w/load (2.50)%
(maximum load-4.25%)
Salomon High Yield 1.50%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD GE HIGH YIELD W/LOAD SALOMON HIGH YIELD
12/31/98 $10000.00 $10000.00 $10000.00
JAN-99 10052.40 10052.40 10149.80
FEB-99 10000.51 10000.51 10064.54
MAR-99 10170.37 9870.37 10149.59
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund 1.70%
GE High Yield Fund
w/load (1.30)%
maximum load 3.0%
Salomon High Yield 1.50%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD SALOMON HIGH YIELD
12/31/98 $10000.00 $10000.00
JAN-99 10058.16 10149.80
FEB-99 10012.08 10064.54
MAR-99 10188.53 10149.59
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund 1.89%
Salomon High Yield 1.50%
CLASS D SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD SALOMON HIGH YIELD
12/31/98 $10000.00 $10000.00
JAN-99 10060.13 10149.80
FEB-99 10015.94 10064.54
MAR-99 10194.62 10149.59
AGGREGATE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund 1.95%
Salomon High Yield 1.50%
76
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE HIGH YIELD FUND
[PIE CHART OMITTED]
COMMUNICATIONS 25.3%
CONSUMER 15.3%
CABLE 10.5%
CASH & OTHER 10.2%
GAMING 9.1%
SOVEREIGN & EMERGING MARKETS 8.9%
INDUSTRIAL 6.7%
HEALTHCARE 6.7%
UTILITIES & ENERGY 3.7%
BASIC MATERIALS 3.6%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 89.7%
- --------------------------------------------------------------------------------
[ICON OMITTED]
CABLE -- 10.5%
Adelphia Communications Corp.
7.50% 01/15/04 $ 195,000 $ 194,269 (b,h)
CSC Holdings Inc.
7.25% 07/15/08 780,000 792,675
Lenfest Communications Inc.
8.38% 11/01/05 330,000 353,743
NTL Inc. (Series B)
10.60% 04/01/08 275,000 295,252(d)
Rogers Cablesystems Ltd.
10.13% 09/01/12 320,000 357,600
Rogers Communications Inc.
9.13% 01/15/06 257,000 269,850
TOTAL CABLE
(COST $2,287,663) 2,263,389
CHEMICALS -- 1.1%
ISP Holdings Inc. (Series B)
9.00% 10/15/03
(COST $ 243,101) 235,000 241,756
[ICON OMITTED]
COMMUNICATIONS -- 23.1%
American Commercial Lines
LLC (Series B)
10.25% 06/30/08 90,000 92,700
Centennial Cellular Corp.
10.75% 12/15/08 100,000 107,000 (b,h)
Dobson Communications Corp.
11.75% 04/15/07 165,000 177,375
Echostar DBS Corp.
9.38% 02/01/09 215,000 223,062(b)
Esprit Telecom Group PLC
11.00% 06/15/08 290,000 169,460
Global Crossings Holdings Ltd.
9.625% 05/15/08 190,000 211,731
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Globalstar LP/Capital
11.38% 02/15/04 $ 175,000 $ 114,625
Hermes Europe Railtel BV
11.50% 08/15/07 195,000 213,525
Hyperion Telecommunications
Inc. (Series B)
10.65% 04/15/03 130,000 107,575(d)
Intermedia Communications Inc.
8.60% 06/01/08 405,000 405,000
Iridium LLC/Capital Corp. (Series A)
13.00% 07/15/05 175,000 75,250
Level 3 Communications Inc.
9.13% 05/01/08 95,000 95,238
Metromedia Fiber Network Inc.
10.00% 11/15/08 150,000 160,875(b)
Nextel Communications Inc.
9.66% 02/15/08 1,500,000 1,050,000(d)
Nextlink Communications Inc.
10.75% 11/15/08 200,000 215,000(b)
Primus Telecommunications Group
11.25% 01/15/09 220,000 227,150(b)
PSINet Inc. (Series B)
10.00% 02/15/05 150,000 160,125
RCN Corp. (Series B)
11.29% 10/15/07 375,000 253,125(d)
Rhythms Netconnections
14.08% 05/15/08 180,000 100,800(d)
RSL Communications PLC
10.52% 03/01/08 500,000 330,000(d)
12.00% 11/01/08 275,000 308,000
Viatel, Inc.
12.52% 04/15/08 155,000 94,938(d)
Vintage Petroleum Inc.
9.75% 06/30/09 70,000 71,400(b)
TOTAL COMMUNICATIONS
(COST $4,780,186) 4,963,954
ENERGY -- 2.7%
CMS Energy Corp.
7.50% 01/15/09 250,000 254,460(h)
Husky Oil Ltd.
8.90% 08/15/28 115,000 109,250
Synder Oil Corp.
8.75% 06/15/07 225,000 225,562
TOTAL ENERGY
(COST $581,664) 589,272
FINANCIAL -- 1.1%
Fuji JGB Investments LLC
9.87% 12/31/49 160,000 142,400(b)
SB Treasury Co. LLC
9.40% 12/29/49 100,000 98,000(b)
TOTAL FINANCIAL
(COST $217,366) 240,400
FOOD AND BEVERAGES -- 0.9%
Smithfield Foods Inc.
7.63% 02/15/08
(COST $195,516) 200,000 193,000
- ----------------
See Notes to Schedules of Investments and Financial Statements.
77
<PAGE>
GE HIGH YIELD FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED]
GAMING -- 9.1%
Harrahs Operating Co. Inc.
7.88% 12/15/05 $850,000 $ 856,375
Park Place Entertainment Corp.
7.88% 12/15/05 250,000 245,937(b)
Station Casinos Inc.
10.13% 03/15/06 800,000 849,000
TOTAL GAMING
(COST $1,953,329) 1,951,312
GENERAL INDUSTRIAL -- 6.7%
Allied Waste Industries Inc.
7.88% 01/01/09 100,000 97,625
Applied Power Inc.
8.75% 04/01/09 70,000 70,700
Axia Inc.
10.75% 07/15/08 85,000 85,744(h)
Geberit International S.A.
10.13% 04/15/07 100,000 63,438
Hayes Lemmerz International Inc.
8.25% 12/15/08 185,000 185,462(b)
National Steel Corp. (Series A)
9.88% 03/01/09 55,000 56,513(b)
National Steel Corp. (Series B)
9.88% 03/01/09 105,000 107,887(b)
Norcal Waste Systems Inc.
13.50% 11/15/05 180,000 199,800
Nortek Inc.
8.88% 08/01/08 490,000 503,475(b)
Tembec Industries Inc.
8.63% 06/30/09 40,000 40,600
Vencor Operating Inc.
9.88% 05/01/05 225,000 33,750
TOTAL GENERAL INDUSTRIAL
(COST $1,608,136) 1,444,994
[ICON OMITTED]
HEALTHCARE -- 6.7%
Columbia/HCA Healthcare
6.91% 06/15/05 800,000 730,197
7.58% 09/15/25 100,000 83,845
Fresenius Medical Capital Trust II
7.88% 02/01/08 140,000 138,250
Tenet Healthcare Corp.
8.63% 01/15/07 500,000 495,625
TOTAL HEALTHCARE
(COST $1,527,865) 1,447,917
HOTELS/LODGING/RESTAURANTS -- 3.7%
Hilton Hotels Corp.
7.95% 04/15/07 200,000 204,865
HMH Properties (Series A)
7.88% 08/01/05 600,000 585,813
TOTAL HOTELS/LODGING/RESTAURANTS
(COST $797,969) 790,678
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MEDIA AND ENTERTAINMENT -- 4.2%
Chancellor Media Corp.
9.00% 10/01/08
(COST $906,514) $ 850,000 $ 910,562(h)
METALS -- 1.5%
Impress Metal Packaging Holdings
9.88% 05/29/07 265,000 163,166
Murrin Murrin Holdings Ltd.
9.38% 08/31/07 165,000 148,500
TOTAL METALS
(COST $312,867) 311,666
PACKAGING -- 1.0%
Norampac, Inc.
9.50% 02/01/08
(COST $217,467) 210,000 218,400
REAL ESTATE / BUILDING -- 1.0%
D.R. Horton Inc.
8.00% 02/01/09
(COST $219,123) 220,000 216,700
RETAIL -- 6.5%
Dillon Read Structured Finance
(Class A)
6.66% 08/15/10 259,882 247,518
DR Structured Finance Corp.
8.38% 08/15/15 435,000 444,848
HMV Media Group PLC
10.25% 05/15/08 400,000 413,000
Musicland Group Inc.
9.00% 06/15/03 300,000 303,000
TOTAL RETAIL
(COST $1,382,574) 1,408,366
[ICON OMITTED]
SOVEREIGN AND EMERGING MARKETS -- 8.9%
AST Research Inc.
7.45% 10/01/02 300,000 282,487(b)
CTI Holdings S.A.
13.35% 04/15/08 200,000 111,000(d)
Glencore Nickel Property Ltd.
9.00% 12/01/14 150,000 128,438
Indah Kiat Finance Mauritius
10.00% 07/01/07 575,000 322,000
Pacifica Papers Inc.
10.00% 03/15/09 185,000 190,319(b)
Philippine Long Distance Telephone Co.
7.85% 03/06/07 230,000 201,595
PTC International Finance BV
10.37% 07/01/07 235,000 170,962(d)
TV Azteca S.A. (Series B)
10.50% 02/15/07 375,000 311,250
United Mexican States
6.25% 12/31/19 250,000 196,406
TOTAL SOVEREIGN AND EMERGING MARKETS
(COST $1,853,925) 1,914,457
- -------------
See Notes to Schedules of Investments and Financial Statements.
78
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
UTILITIES -- 1.0%
AES Corp.
8.50% 11/01/07
(COST $211,435) $210,000 $ 207,218
TOTAL CORPORATE BONDS AND NOTES
(COST $19,296,700) 19,314,041
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 2.1%
- --------------------------------------------------------------------------------
Concentric Network Corp.,
13.50% 103 111,645(a)
IXC Communications Inc.
(Series B), 12.50% 242 261,360(a)
Paxson Communications Corp.,
13.25% 10 83,250(a)
TOTAL PREFERRED STOCK
(COST $418,264) 456,255
- --------------------------------------------------------------------------------
WARRANTS -- 0.1%
- --------------------------------------------------------------------------------
Rythms Netconnections, 05/15/08
(COST $1,200) 1,600 6,401
TOTAL INVESTMENTS IN SECURITIES
(COST $19,716,164) 19,776,697
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.5%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $973,389) 973,389 973,389
OTHER ASSETS AND LIABILITIES,
NET 3.6% 785,386
---------
NET ASSETS-- 100% $21,535,472
===========
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
At March 31, 1999, the oustanding forward foreign currency contracts, which
obligate the GE High Yield Fund to deliver currencies at a specified date, were
as follows:
U.S. $ UNREALIZED
SETTLEMENT CURRENT APPRECIATION/
EXCHANGED FROM EXCHANGED TO DATE VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
PURCHASES
EUR 300,000 USD $340,455 04/27/99 $ 324,376 $(16,080)
$ 324,376 $(16,080)
SALES
EUR 455,000 USD $520,524 04/27/99 $ 491,970 $ 28,554
EUR 155,000 USD $170,950 04/30/99 $ 167,623 $ 3,327
EUR 60,000 USD $ 66,225 05/25/99 $ 64,975 $ 1,250
GBP 185,000 USD $297,480 06/03/99 $ 298,494 $ (1,014)
$1,023,062 $ 32,117
--------
NET UNREALIZED APPRECIATION $ 16,037
========
- --------------
See Notes to Schedules of Investments and Financial Statements.
[ICON OMITTED]
ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE HIGH YIELD FUND AS
OF MARCH 31, 1999.
79
<PAGE>
GE MONEY MARKET FUND
INVESTMENT PROFILE
A mutual fund designed for
investors who seek a high level
of current income consistent
with the preservation of
capital and maintenance of
liquidity by investing
primarily in short-term, U.S. dollar-denominated money
market instruments.
* LIPPER PERFORMANCE COMPARISON
MONEY MARKET PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/99
Six One Five
Months Year Year
Number of Funds
in peer group: 325 314 206
Peer group average
annual total return:2.20% 4.70% 4.85%
Lipper categories
in peer group: MONEY MARKET
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE
OF FUTURE RESULTS.
+ THE SEVEN DAY YIELD, RATHER THAN THE TOTAL RETURN, MORE CLOSELY REFLECTS THE
CURRENT EARNINGS OF THE GE MONEY MARKET FUND AT MARCH 31, 1999.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[LINE GRAPH OMTITED]
GE MONEY MARKET FUND 90 DAY T-BILL
2/22/93 $10000.00 $10000.00
10000.00 10000.00
10028.72 10024.74
10094.88 10099.91
SEP-93 10164.21 10176.55
10236.25 10255.35
10307.06 10339.42
10392.39 10443.81
SEP-94 10500.20 10562.06
10627.61 10702.77
10778.38 10857.68
10928.54 11011.20
SEP-95 11079.32 11160.37
11227.98 11308.52
11369.71 11449.21
11509.01 11594.04
SEP-96 11653.48 11743.11
11800.27 11890.81
11944.97 12042.37
12096.32 12195.67
SEP-97 12252.89 12350.52
12412.02 12508.93
12570.34 12668.16
12730.09 12825.77
SEP-98 12894.00 12977.48
13048.79 13120.03
MAR-99 13193.90 13266.58
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
GE Money Market 2.33% 4.96% 5.06% 4.65%
90 Day T-Bill 2.23% 4.72% 5.11% 4.75%
FUND YIELD
- -----------------------------------------------
FUND IBC MONEY FUND
---- --------------
7 day current 4.38%+ 4.35%
7 day effective 4.48% 4.44%
CURRENT YIELD REPRESENTS INCOME EARNED ON AN INVESTMENT IN THE MONEY MARKET FUND
FOR A SEVEN DAY PERIOD AND THEN ANNUALIZED.
EFFECTIVE YIELD IS CALCULATED SIMILARLY BUT IS SLIGHTLY HIGHER BECAUSE IT
REFLECTS THE COMPOUNDING EFFECT OF EARNINGS ON REINVESTED DIVIDENDS.
AN INVESTMENT IN THE GE MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
- --------------------------------------------------------------------------------
ROBERT MACDOUGALL LEADS A TEAM OF MANAGERS FOR THE GE MONEY MARKET FUND (PLEASE
REFER TO PAGE 56 FOR BOB'S BIOGRAPHICAL DETAILS AND AN ANALYSIS OF THE FIXED
INCOME MARKETS).
Q. HOW DID THE GE MONEY MARKET FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM
FOR THE SIX-MONTH PERIOD ENDED MARCH 31, 1999?
A. The return on the 90-day Treasury Bill was 2.23% while the average return for
the 325 Money Market funds tracked by Lipper was 2.20%.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. During the fourth quarter of 1998, we extended the average maturity of the
fund due to the steepness of the money market yield curve and to lock-in the
higher yields available over year-end. As these investments matured in the
first quarter of 1999, we allowed the average maturity to shorten as the
yield curve flattened and expectations of further Federal Reserve monetary
policy easing diminished.
80
<PAGE>
SCHEDULE OF INVESTMENTS MARCH 31, 1999 (UNAUDITED)
GE MONEY MARKET FUND
[PIECHART OMITTED]
COMMERICAL PAPER 48.2%
U.S. GOVERNMENTS 32.3%
CERTIFICATES OF DEPOSITS 16.3%
TIME DEPOSITS 3.2%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 100.0%
- --------------------------------------------------------------------------------
U.S. GOVERNMENT (D) -- 32.3%
Federal Home Loan Bank
4.74% 07/07/99 $ 5,980,000 $ 5,905,398
Federal Home Loan Mortgage Corp.
4.94% 04/14/99 20,850,000 20,814,237
4.75% 04/19/99 2,520,000 2,514,078
4.96% 04/23/99 6,480,000 6,460,838
4.87% 06/15/99 3,000,000 2,970,312
32,759,465
Federal National Mortgage Assoc.
5.02% 04/01/99 8,660,000 8,660,000
4.67% 04/06/99 6,550,000 6,545,697
4.95% 04/08/99 1,700,000 1,698,419
16,904,116
TOTAL U.S. GOVERNMENT
(COST $55,568,979) 55,568,979
COMMERICAL PAPER -- 48.2%
Abbey National PLC
4.81% 05/17/99 7,000,000 6,956,977
Bank of America
4.87% 04/21/99 400,000 398,918
Bank of Nova Scotia
4.813% 05/28/99 5,760,000 5,716,105
BankAmerica Corp.
4.80% 04/21/99 6,800,000 6,781,867
Citicorp
4.86% 04/06/99 7,200,000 7,195,140
Credit Suisse
4.88% 04/14/99 7,200,000 7,187,312
First Union Corp.
4.79% 04/20/99 6,800,000 6,782,809
Halifax Building Society
4.73% 05/05/99 6,800,000 6,769,623
Morgan (J.P.) & Co. Inc.
4.81% 07/02/99 7,500,000 7,407,808
Morgan Stanley Group Inc.
4.85% 06/02/99 7,040,000 6,981,197
PRINCIPAL
AMOUNT VALUE\
- --------------------------------------------------------------------------------
Societe General North America Inc.
4.78% 04/26/99 $ 6,800,000 $ 6,777,428
UBS Finance Delaware Inc.
4.81% 05/03/99 7,040,000 7,009,900
Wells Fargo & Co.
4.81% 04/12/99 6,850,000 6,839,932
TOTAL COMMERICAL PAPER
(COST $82,805,016) 82,805,016
YANKEE CERTIFICATES OF DEPOSIT -- 16.3%
Bank of Montreal
4.85% 04/23/99 400,000 400,000
4.87% 04/23/99 7,100,000 7,100,000
Canadian Imperial Bank
of Commerce
4.84% 04/28/99 6,800,000 6,800,000
Deutsche Bank AG
4.87% 04/22/99 7,000,000 7,000,000
Toronto-Dominion Bank
4.92% 04/14/99 6,800,000 6,800,000
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(COST $28,100,000) 28,100,000
TIME DEPOSIT -- 3.2%
Rabobank Nederland N.V.
5.062% 04/01/99 5,150,000 5,150,000
State Street Cayman Islands
4.875% 04/01/99 314,844 314,844
TOTAL TIME DEPOSIT
(COST $5,464,844) 5,464,844
TOTAL SHORT-TERM INVESTMENTS
(COST $171,938,839) 171,938,839
OTHER ASSETS AND LIABILITIES,
NET 0.0% (45,963)
-----------
NET ASSETS-- 100% $171,892,876
============
- -------------
See Notes to Schedules of Investments and Financial Statements.
81
<PAGE>
NOTES TO PERFORMANCE MARCH 31, 1999 (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 gain or loss when you sell
your shares. Classes A and B are shown both without the imposition of the sales
charge and also assuming the deduction of the current maximum applicable sales
charges as described in Note 1 of the Notes to Financial Statements. Periods
less than one year are not annualized.
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, 1999 and the year ended
September 30, 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 Mid-Cap Growth Fund, GE Value Equity
Fund, GE Tax-Exempt Fund and Class C of GE Government Securities Fund is limited
to the period from the Merger Date to March 31, 1999.
Shares of the GE Government Securities Fund, the GE Short-Term Government Fund
and the GE Money Market Fund are neither insured nor guaranteed by the U.S.
Government, and their prices will fluctuate with market conditions.
A portion of the GE Tax-Exempt Fund's income may be subject to state, federal
and/or alternative minimum tax. Capital gains, if any, are subject to capital
gains tax.
GE Investment Management Incorporated ("GEIM") had agreed in writing to limit
"Other Expenses" and /or reduce "Advisory and Administrative Fees" of each class
of certain funds on an annualized basis through the fiscal year ended September
30, 1999. This agreement may be discontinued at any time. Had these fees and
expenses not been absorbed, the 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), the
S&P/Barra Composite Index of 500 value stocks (S&P 500/Barra Value), the S&P 400
MidCap Composite Price Index of stocks (S&P MidCap 400), the Russell 2000 Index
(Russell 2000), the Morgan Stanley Capital International World Index (MSCI
World), the Morgan Stanley Capital International Europe, Australasia, Far East
Index (MSCI EAFE), the Morgan Stanley Capital International Europe Index, (MSCI
Europe), the Morgan Stanley Capital International Emerging Markets Free Index
(MSCI EMF), the Lehman Brothers Aggregate Bond Index (LB Aggregate), the Lehman
Brothers Government Bond Index (LB Gov't) Lehman Brothers 1-3 Year Government
Bond Index (LB 1-3), the Lehman Brothers 10-Year Municipal Index (LBMI) and the
Salomon Smith Barney High Yield Market Index (Salomon High Yield) are unmanaged
indices and do not reflect the actual cost of investing in the instruments that
comprise each index.
The S&P 500 is a capitalization-weighted index of 500 widely held stocks
recognized by investors to be representative of the stock market in general. The
S&P 500/Barra Value is a capitalization-weighted index of all the stocks in the
S&P 500 that have low price-to-book ratios. The S&P MidCap 400 is a
capitalization-weighted index of 400 U.S. stocks with a median market
capitalization. The Russell 2000 measures the performance of the smallest
companies in the Russell 3000 Index, which represents approximately 10% of the
total market capitalization of the Russell 3000 Index, which measures the
performance of the 3000 largest U.S. companies based on total market
capitalization, which represents approximately 98% of the investable U.S. equity
market. MSCI World is a composite of 1,470 securities traded in 22 developed
markets of the world. MSCI EAFE is a composite of 1,028 foreign securities
traded in 20 developed markets representing Europe, Australasia and Far East.
MSCI Europe is a composite of securities traded in 15 developed markets in
Europe. MSCI EMF is a composite of securities available to non-domestic
investors traded in 25 emerging markets. LB Aggregate is a composite of short-,
medium-, and long-term bond performance and is widely recognized as a
82
<PAGE>
NOTES TO PERFORMANCE MARCH 31, 1999 (UNAUDITED)
barometer of the bond market in general. The LB Gov't 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 LB 1-3 is a composite of government and
U.S. Treasury obligations with maturities of 1-3 years. LBMI is a composite of
investment grade, fixed rate municipal bonds and is considered to be
representative of the municipal bond market. The Salomon High Yield is a
composite of below investment-grade corporate bonds issued in the United States.
The results shown for the foregoing indices assume the reinvestment of net
dividends or interest.
The 90-Day T-Bill is the average return on three month U.S. Treasury Bills. The
IBC Money Fund Report yields represent the average yields of 912 taxable money
market funds.
A number of the broad market returns are not available from the funds'
commencement of investment operations through March 31, 1999 and therefore are
calculated from the month end nearest to the funds' commencement of operation
date.
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. A Fund's
performance may be compared to or ranked within a universe of mutual funds with
investment objectives and policies similar but not necessarily identical to the
Fund's. Such comparisons or rankings are made on the basis of several factors,
including the Fund's objectives and policies, management style and strategy, and
portfolio composition, and may change over time if any of those factors change.
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.
Standard & Poor's, S&P, and S&P 500 are trademarks of The McGraw-Hill Companies
Inc. and have been licensed for use.
83
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 1999 (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, 1999, these securities amounted to
$289,353, $280,571, $56,895, $517,445, $4,148,254, $16,389,891, $7,171,264,
$624,887 and $3,011,236 or 0.5%, 0.5%, 0.6%, 4.5%, 2.3%, 4.4%, 5.2%, 2.6%
and 14.0% of net assets for the GE Global Equity Fund, GE International
Equity Fund, GE Europe Equity Fund, GE Emerging Markets Fund, GE Strategic
Investment Fund, GE Government Securities Fund, GE Fixed Income Fund, GE
Short-Term Government Fund and GE High Yield Fund.
(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) State Street Corp. is the parent company of State Street Bank & Trust Co.,
the fund's custodian.
(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, 1999, 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, 1999 (as a
percentage of net assets) as follows:
FGIC 8.6%
MBIA 14.0%
AMBAC 5.0%
(l) All or a portion of security out on loan.
(m) Rights -- Sociedad Quimica y Minera de Chile S.A. ADR rights expire
04/07/99.
(n) Non-convertible savings shares with no voting rights.
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
Regd. -- Registered
REMIC -- Real Estate Mortgage Investment Conduit
SDR -- Special Drawing Rights
STRIPS -- Separate Trading of Registered Interest and Principal of Securities
84
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE U.S. EQUITY FUND
- ----------------------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94(C)
- ----------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $28.24 $29.43 $23.34 $20.28 $16.12 $16.48
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............. 0.06 0.20 0.23 0.31 0.34 3.23
Net realized and unrealized
gains (losses) on investments ........... 7.12 1.25 8.33 3.34 3.91 (3.22)
- ----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.18 1.45 8.56 3.65 4.25 0.01
- ----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.17 0.21 0.28 0.32 0.00 0.20
Net realized gains ....................... 2.50 2.43 2.19 0.27 0.09 0.17
- ----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 2.67 2.64 2.47 0.59 0.09 0.37
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $32.75 $28.24 $29.43 $23.34 $20.28 $16.12
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................... 26.32% 5.38% 39.44% 18.36% 26.52% (0.86%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $119,033 $85,907 $65,535 $34,523 $15,148 $1,214
Ratios to average net assets:
Net investment income* .................. 0.36% 0.67% 0.93% 1.40% 1.85% 1.87%
Net expenses* ........................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Gross expenses* ......................... 1.06% 1.07% 1.11% 1.15% 1.25% 1.46%
Portfolio turnover rate .................. 32% 29% 38% 49% 43% 51%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94
- ---------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $27.11 $28.35 $22.57 $19.71 $16.03 $16.41
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............. (0.02) 0.05 0.11 0.19 0.21 0.24
Net realized and unrealized
gains (losses) on investments ........... 6.84 1.20 8.03 3.25 3.84 (0.25)
- --------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 6.82 1.25 8.14 3.44 4.05 (0.01)
- --------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................... 0.05 0.06 0.17 0.31 0.28 0.20
Net realized gains ....................... 2.50 2.43 2.19 0.27 0.09 0.17
- --------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ 2.55 2.49 2.36 0.58 0.37 0.37
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............. $31.38 $27.11 $28.35 $22.57 $19.71 $16.03
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................... 26.03% 4.80% 38.75% 17.78% 25.92% (0.09%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $30,820 $21,407 $14,380 $7,194 $1,563 $91
Ratios to average net assets:
Net investment income* .................. (0.14%) 0.17% 0.44% 0.90% 1.29% 1.28%
Net expenses* ........................... 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Gross expenses* ......................... 1.56% 1.63% 1.88% 2.08% 3.50% 1.96%
Portfolio turnover rate .................. 32% 29% 38% 49% 43% 51%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94(C)
- -----------------------------------------------------------------------------------------------------------
INCEPTION DATE ............................ -- -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $27.82 $29.00 $23.02 $19.98 $16.13 $16.35
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.09 0.27 0.30 0.36 0.37 1.00
Net realized and unrealized
gains (losses) on investments .......... 7.02 1.22 8.19 3.30 3.86 (0.85)
- -----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .............................. 7.11 1.49 8.49 3.66 4.23 0.15
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.23 0.24 0.32 0.35 0.29 0.20
Net realized gains ...................... 2.50 2.43 2.19 0.27 0.09 0.17
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 2.73 2.67 2.51 0.62 0.38 0.37
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $32.20 $27.82 $29.00 $23.02 $19.98 $16.13
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .......................... 26.50% 5.62% 39.76% 18.70% 26.86% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $169,578 $124,714 $97,886 $50,035 $26,007 $16,382
Ratios to average net assets:
Net investment income* ................. 0.61% 0.92% 1.18% 1.66% 2.12% 2.11%
Net expenses* .......................... 0.75% 0.75% 0.75% 0.75% 0.75% 0.62%
Gross expenses* ........................ 0.81% 0.84% 0.93% 1.06% 1.19% 1.21%
Portfolio turnover rate ................. 32% 29% 38% 49% 43% 51%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94
- -------------------------------------------------------------------------------------------------------------
INCEPTION DATE ............................ -- -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $27.78 $28.99 $23.03 $19.98 $16.16 $16.37
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.13 0.34 0.37 0.40 0.38 0.32
Net realized and unrealized
gains (losses) on investments .......... 7.00 1.21 8.19 3.31 3.88 (0.16)
- ------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .............................. 7.13 1.55 8.56 3.71 4.26 0.16
- ------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.31 0.33 0.41 0.39 0.35 0.20
Net realized gains ...................... 2.50 2.43 2.19 0.27 0.09 0.17
- ------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 2.81 2.76 2.60 0.66 0.44 0.37
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $32.10 $27.78 $28.99 $23.03 $19.98 $16.16
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .......................... 26.64% 5.86% 40.16% 18.97% 27.14% 0.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $333,004 $281,071 $212,957 $144,470 $128,247 $114,885
Ratios to average net assets:
Net investment income* ................. 0.86% 1.16% 1.45% 1.90% 2.36% 2.27%
Net expenses* .......................... 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Gross expenses* ........................ 0.56% 0.56% 0.52% 0.59% 0.71% 0.96%
Portfolio turnover rate ................. 32% 29% 38% 49% 43% 51%
</TABLE>
- ------------
See Notes to Financial Highlights and Notes to Financial Statements.
85
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE PREMIER GROWTH EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(B) 3/31/99(B) 9/30/98(B) 9/30/97(B)
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- 12/31/96 -- -- 12/31/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $20.38 $18.31 $15.00 $20.20 $18.25 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................. (0.06) 0.00 (0.04) (0.12) (0.12) (0.09)
Net realized and unrealized
gains (losses) on investments .............. 6.91 2.36 3.35 6.85 2.36 3.34
- ------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS . 6.85 2.36 3.31 6.73 2.24 3.25
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........................ 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gains ........................... 0.66 0.29 0.00 0.66 0.29 0.00
- ------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................ 0.66 0.29 0.00 0.66 0.29 0.00
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................. $26.57 $20.38 $18.31 $26.27 $20.20 $18.25
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................... 34.16% 13.09% 22.07% 33.86% 12.47% 21.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..... $13,424 $6,059 $1,395 $5,908 $2,076 $447
Ratios to average net assets:
Net investment income (loss)* ............... (0.53%) (0.01%) (0.34%) (1.02%) (0.62%) (0.76%)
Net expenses* ............................... 1.37% 1.37% 1.40% 1.87% 1.90% 1.90%
Gross expenses* ............................. 1.40% 1.42% 4.09% 1.90% 2.27% 9.30%
Portfolio turnover rate ...................... 17% 35% 17% 17% 35% 17%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
CLASS C CLASS D
3/31/99(B) 9/30/98(B) 9/30/97(B) 3/31/99(B) 9/30/98(B) 9/30/97(B)
- -----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- 12/31/96 -- -- 12/31/96
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $20.44 $18.35 $15.00 $20.50 $18.38 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............... (0.03) 0.03 0.00 0.00 0.09 0.04
Net realized and unrealized
gains (losses) on investments ............ 6.94 2.38 3.35 6.96 2.37 3.34
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 6.91 2.41 3.35 6.96 2.46 3.38
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... 0.03 0.03 0.00 0.07 0.05 0.00
Net realized gains ......................... 0.66 0.29 0.00 0.66 0.29 0.00
- -----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 0.69 0.32 0.00 0.73 0.34 0.00
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $26.66 $20.44 $18.35 $26.73 $20.50 $18.38
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................. 34.35% 13.35% 22.33% 34.49% 13.65% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $31,528 $15,044 $7,287 $11,630 $7,580 $5,770
Ratios to average net assets:
Net investment income (loss)* ............. (0.27%) 0.17% (0.03%) (0.01%) 0.47% 0.31%
Net expenses* ............................. 1.12% 1.12% 1.15% 0.87% 0.88% 0.90%
Gross expenses* ........................... 1.15% 1.16% 1.62% 0.90% 0.89% 1.17%
Portfolio turnover rate .................... 17% 35% 17% 17% 35% 17%
</TABLE>
[PHOTO OF BUILDING OMITTED]
86
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE VALUE EQUITY FUND
- -----------------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- -----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $9.93 $13.58 $10.83 $8.95 $7.51 $7.63
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.01 0.05 0.07 0.05 0.14 0.13
Net realized and unrealized
gains (losses) on investments ......... 2.45 0.46 3.59 1.99 1.45 (0.16)
- -----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 2.46 0.51 3.66 2.04 1.59 (0.03)
- -----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.03 0.00 0.04 0.09 0.15 0.09
Net realized gains ..................... 0.40 4.16 0.87 0.07 0.00 0.00
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.43 4.16 0.91 0.16 0.15 0.09
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.96 $9.93 $13.58 $10.83 $8.95 $7.51
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 25.04% 5.86% 36.18% 23.10% 21.45% (0.32%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $18,813 $14,276 $8,236 $5,833 $4,083 $3,267
Ratios to average net assets:
Net investment income (loss)* ........ 0.19% 0.50% 0.63% 1.03% 1.71% 1.92%
Net expenses* ........................ 1.31% 1.31% 1.30% 1.35% 1.35% 1.35%
Gross expenses* ...................... 1.32% 1.33% 1.33% 1.73% 2.43% 3.55%
Portfolio turnover rate ................ 17% 40% 131% 100% 27% 15%
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- ------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .... $9.77 $13.48 $10.79 $8.93 $7.50 $7.64
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... (0.02) 0.00 (0.01) 0.04 0.07 0.08
Net realized and unrealized
gains (losses) on investments ........ 2.40 0.45 3.57 1.93 1.45 (0.17)
- ------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................ 2.38 0.45 3.56 1.97 1.52 (0.09)
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. 0.00 0.00 0.00 0.04 0.09 0.05
Net realized gains .................... 0.40 4.16 0.87 0.07 0.00 0.00
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... 0.40 4.16 0.87 0.11 0.09 0.05
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $11.75 $9.77 $13.48 $10.79 $8.93 $7.50
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 24.65% 5.32% 35.23% 22.30% 20.50% (1.10%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ....................... $51,913 $44,655 $46,035 $33,318 $14,450 $7,970
Ratios to average net assets:
Net investment income (loss)* ....... (0.31%) 0.00% (0.12%) 0.23% 0.94% 1.09%
Net expenses* ....................... 1.81% 1.81% 2.05% 2.10% 2.10% 2.10%
Gross expenses* ..................... 1.82% 1.81% 2.07% 2.40% 3.18% 4.02%
Portfolio turnover rate ............... 17% 40% 131% 100% 27% 15%
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C CLASS D
3/31/99(B) 9/30/98(B,E) 3/31/99(B) 9/30/98(B)
- ----------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 10/2/97 -- 1/5/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $10.16 $16.76 $10.38 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income ......................... 0.02 0.08 0.04 0.08
Net realized and unrealized
gains (losses) on investments ................ 2.50 0.29 2.54 0.30
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS .. 2.52 0.37 2.58 0.38
- ----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... 0.06 0.00 0.08 0.00
Net realized gains ............................ 0.40 6.97 0.40 0.00
- ----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. 0.46 6.97 0.48 0.00
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $12.22 $10.16 $12.48 $10.38
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................ 25.15% 5.21% 25.24% 3.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $4,483 $2,366 $1,938 $1,580
Ratios to average net assets:
Net investment income* ...................... 0.42% 0.75% 0.69% 0.98%
Net expenses* ............................... 1.06% 1.06% 0.81% 0.81%
Gross expenses* ............................. 1.07% 1.23% 0.82% 0.81%
Portfolio turnover rate ....................... 17% 40% 17% 40%
</TABLE>
- ----------
See Notes to Financial Highlights and Notes to Financial Statements.
87
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT
THE PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE MID-CAP GROWTH FUND
- -----------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- -----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.27 $17.61 $13.16 $11.38 $8.81 $8.69
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ..... (0.01) (0.04) (0.07) 0.00 0.01 (0.01)
Net realized and unrealized
gains (losses) on investments .. 1.56 (1.86) 4.52 1.78 2.56 0.21
- -----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............ 1.55 (1.90) 4.45 1.78 2.57 0.20
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............ 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gains ............... 0.00 7.37 0.00 0.00 0.00 0.08
Return of capital ................ 0.00 0.07 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................ 0.00 7.44 0.00 0.00 0.00 0.08
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ..... $9.82 $8.27 $17.61 $13.16 $11.38 $8.81
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ...................18.74% (16.11%) 33.81% 15.64% 29.17% 2.48%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................$12,585 $10.134 $10,885 $8,222 $5,986 $4,182
Ratios to average net assets:
Net investment income (loss)* .. (0.30%) (0.35%) (0.51%) 0.03% 0.10% (0.11%)
Net expenses* .................. 1.40% 1.40% 1.31% 1.35% 1.35% 1.34%
Gross expenses* ................ 1.45% 1.45% 1.46% 1.70% 2.44% 3.53%
Portfolio turnover rate ......... 42% 13% 139% 41% 74% 100%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- -------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.80 $17.11 $12.87 $11.21 $8.74 $8.70
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .... (0.03) (0.08) (0.18) (0.09) (0.05) (0.04)
Net realized and unrealized
gains (losses) on investments . 1.47 (1.79) 4.42 1.75 2.52 0.16
- -------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... 1.44 (1.87) 4.24 1.66 2.47 0.12
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.00 0.00 0.00 0.00 0.00 0.00
Net realized gains .............. 0.00 7.40 0.00 0.00 0.00 0.08
Return of capital ............... 0.00 0.04 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.00 7.44 0.00 0.00 0.00 0.08
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .... $9.24 $7.80 $17.11 $12.87 $11.21 $8.74
- -------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. 18.46% (16.62%) 33.02% 14.81% 28.26% 1.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................. $22,185 $22,038 $32,280 $27,616 $14,311 $5,857
Ratios to average net assets:
Net investment income (loss)* .. (0.81%) (0.86%) (1.26%) (0.73%) (0.66%) (0.82%)
Net expenses* .................. 1.90% 1.90% 2.06% 2.10% 2.10% 2.09%
Gross expenses* ................ 1.95% 1.93% 2.21% 2.41% 3.19% 4.06%
Portfolio turnover rate ......... 42% 13% 139% 41% 74% 100%
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C CLASS D
3/31/99(B) 9/30/98(B,F) 3/31/99(B) 9/30/98(B)
- ------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 10/2/97 -- 1/5/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............. $8.49 $47.12 $8.71 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.00 0.00 0.01 0.01
Net realized and unrealized
gains (losses) on investments ................. 1.61 (3.58) 1.66 (1.30)
- -------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 1.61 (3.58) 1.67 (1.29)
- -------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... 0.00 0.00 0.00 0.00
Net realized gains ............................. 0.00 34.86 0.00 0.00
Return of capital .............................. 0.00 0.19 0.00 0.00
- -------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.00 35.05 0.00 0.00
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $10.10 $8.49 $10.38 $8.71
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 19.10% (16.69%) 19.17% (12.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $3,223 $1,705 $544 $471
Ratios to average net assets:
Net investment income (loss)* ................ (0.01%) (0.06%) 0.19% 0.21%
Net expenses* ................................ 1.15% 1.15% 0.90% 0.89%
Gross expenses* .............................. 1.20% 1.32% 0.95% 0.89%
Portfolio turnover rate ........................ 42% 13% 42% 13%
</TABLE>
- -------------
See Notes to Financial Highlights and Notes to Financial Statements.
88
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE MID-CAP VALUE EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
3/31/99(B) 3/31/99(B) 3/31/99(B) 3/31/99(B)
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/98 12/31/98 12/31/98 12/31/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................$10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ...................... 0.01 0.00 0.02 0.03
Net realized and unrealized
gains (losses) on investments ................... 0.08 0.08 0.08 0.07
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ...... 0.09 0.08 0.10 0.10
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............................. 0.00 0.00 0.00 0.00
Net realized gains ................................ 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................................. 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......................$10.09 $10.08 $10.10 $10.10
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................................... 0.90% 0.80% 1.00% 1.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .......... $101 $107 $310 $10,102
Ratios to average net assets:
Net investment income (loss)* .................... 0.60% 0.10% 0.82% 1.07%
Net expenses* .................................... 1.40% 1.88% 0.80% 0.90%
Gross expenses* .................................. 2.20% 2.68% 1.67% 1.53%
Portfolio turnover rate ........................... 5% 5% 5% 5%
</TABLE>
<TABLE>
<CAPTION>
GE SMALL-CAP VALUE EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
3/31/99(B) 3/31/99(B) 3/31/99(B) 3/31/99(B)
- ------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/98 9/30/98 9/30/98 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............. $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... 0.02 0.00 0.02 0.06
Net realized and unrealized
gains (losses) on investments ................ 0.40 0.40 0.42 0.38
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 0.42 0.40 0.44 0.44
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... 0.02 0.01 0.03 0.03
Net realized gains ............................. 0.03 0.03 0.03 0.03
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.05 0.04 0.06 0.06
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $10.37 $10.36 $10.38 $10.38
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 4.22% 4.00% 4.38% 4.42%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $9,797 $7,335 $1,708 $110
Ratios to average net assets:
Net investment income (loss)* ................. 0.41% (0.05%) 0.44% 1.04%
Net expenses* ................................. 1.40% 1.90% 1.15% 0.90%
Gross expenses* ............................... 1.71% 2.21% 1.48% 1.21%
Portfolio turnover rate ........................ 91% 91% 91% 91%
</TABLE>
- ----------
See Notes to Financial Highlights and Notes to Financial Statements.
89
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT
THE PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE GLOBAL EQUITY FUND
- ------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94(C)
- ------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.52 $24.61 $22.01 $20.18 $19.34 $18.61
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ... (0.05) (0.01) 0.00 0.02 0.10 0.03
Net realized and unrealized
gains (losses) on investments . 5.66 (2.61) 3.89 2.20 1.22 0.91
- ------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .......... 5.61 (2.62) 3.89 2.22 1.32 0.94
- ------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.00 0.00 0.00 0.02 0.09 0.01
Net realized gains ............. 0.97 2.47 1.29 0.37 0.39 0.20
- ------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 0.97 2.47 1.29 0.39 0.48 0.21
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $24.16 $19.52 $24.61 $22.01 $20.18 $19.34
- ------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 29.29% (11.03%) 18.51% 11.18% 7.16% 3.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $2,292 $1,414 $1,524 $4,054 $2,811 $694
Ratios to average net assets:
Net investment income (loss)* . (0.42%) (0.03%) (0.09%) 0.12% 0.47% 0.44%
Net expenses* ................. 1.60% 1.60% 1.60% 1.60% 1.60% 1.60%
Gross expenses* ............... 1.63% 1.98% 3.10% 1.90% 2.17% 2.02%
Portfolio turnover rate ........ 28% 71% 70% 46% 46% 26%
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.17 $24.32 $21.87 $20.14 $19.32 $18.48
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ... (0.11) (0.11) (0.08) (0.04) 0.00 (0.01)
Net realized and unrealized
gains (losses) on investments . 5.56 (2.57) 3.82 2.14 1.23 1.06
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .......... 5.45 (2.68) 3.74 2.10 1.23 1.05
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.00 0.00 0.00 0.00 0.02 0.01
Net realized gains ............. 0.97 2.47 1.29 0.37 0.39 0.20
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 0.97 2.47 1.29 0.37 0.41 0.21
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $23.65 $19.17 $24.32 $21.87 $20.14 $19.32
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 28.98% (11.44%) 17.92% 10.61% 6.62% 5.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $1,286 $989 $877 $600 $356 $128
Ratios to average net assets:
Net investment income (loss)* . (0.96%) (0.48%) (0.52%) (0.34% (0.11%) (0.08%)
Net expenses* ................. 2.10% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ............... 2.13% 2.45% 3.33% 3.50% 3.50% 2.52%
Portfolio turnover rate ........ 28% 71% 70% 46% 46% 26%
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ......................... $19.72 $24.81 $22.18 $20.31 $19.40 $17.16
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ... (0.02) 0.05 0.04 0.06 0.09 0.07
Net realized and unrealized
gains (losses) on investments . 5.72 (2.65) 3.94 2.22 1.30 2.37
- ----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ..................... 5.70 (2.60) 3.98 2.28 1.39 2.44
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.00 0.02 0.06 0.04 0.09 0.00
Net realized gains ............. 0.97 2.47 1.29 0.37 0.39 0.20
- ----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 0.97 2.49 1.35 0.41 0.48 0.20
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $24.45 $19.72 $24.81 $22.18 $20.31 $19.40
- ----------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 29.43% (10.86%) 18.82% 11.44% 7.47% 14.28%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $34,521 $28,412 $35,120 $28,682 $23,683 $20,432
Ratios to average net assets:
Net investment income (loss)* . (0.22%) 0.22% 0.24% 0.33% 0.59% 0.52%
Net expenses* ................. 1.35% 1.34% 1.35% 1.35% 1.35% 1.31%
Gross expenses* ............... 1.38% 1.35% 1.45% 1.60% 1.42% 1.77%
Portfolio turnover rate ........ 28% 71% 70% 46% 46% 26%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ......................... $19.72 $24.83 $22.25 $20.37 $19.45 $17.49
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ... 0.00 0.09 0.10 0.13 0.13 0.11
Net realized and unrealized
gains (losses) on investments . 5.72 (2.63) 3.94 2.21 1.31 2.06
- --------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ..................... 5.72 (2.54) 4.04 2.34 1.44 2.17
- --------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.07 0.10 0.17 0.09 0.13 0.01
Net realized gains ............. 0.97 2.47 1.29 0.37 0.39 0.20
- --------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 1.04 2.57 1.46 0.46 0.52 0.21
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $24.40 $19.72 $24.83 $22.25 $20.37 $19.45
- --------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 29.60% (10.59%) 19.14% 11.71% 7.76% 12.43%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $20,385 $15,039 $22,642 $10,123 $9,785 $10,504
Ratios to average net assets:
Net investment income (loss)* . 0.04% 0.37% 0.48% 0.56% 0.84% 0.82%
Net expenses* ................. 1.10% 1.07% 1.10% 1.10% 1.10% 1.10%
Gross expenses* ............... 1.13% 1.07% 1.10% 1.12% 1.75% 1.52%
Portfolio turnover rate ........ 28% 71% 70% 46% 46% 26%
</TABLE>
- -------------
See Notes to Financial Highlights and Notes to Financial Statements.
90
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95 9/30/94
- --------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.98 $20.26 $17.65 $15.87 $15.18 $15.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .... (0.04) 0.04 0.01 0.07 0.09 0.06
Net realized and unrealized
gains (losses) on investments .. 3.05 (1.58) 3.16 1.74 0.64 0.12
- --------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... 3.01 (1.54) 3.17 1.81 0.73 0.18
- --------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.00 0.00 0.06 0.03 0.04 0.00
Net realized gains .............. 0.57 3.74 0.50 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.57 3.74 0.56 0.03 0.04 0.00
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .... $17.42 $14.98 $20.26 $17.65 $15.87 $15.18
- --------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. 20.39% (8.93%) 18.41% 11.39% 4.87% 1.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................. $23,461 $16,805 $17,270 $8,462 $3,948 $25
Ratios to average net assets:
Net investment income (loss)* .. (0.47%) 0.22% 0.20% 0.43% 1.28% 1.01%
Net expenses* .................. 1.60% 1.60% 1.60% 1.59% 1.60% 1.60%
Gross expenses* ................ 1.66% 1.61% 1.60% 1.66% 1.95% 1.93%
Portfolio turnover rate ......... 30% 93% 51% 36% 27% 6%
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.68 $20.02 $17.47 $15.77 $15.13 $15.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) .... (0.08) (0.05) (0.06) 0.05 0.01 0.00
Net realized and unrealized
gains (losses) on investments .. 2.99 (1.55) 3.11 1.65 0.64 0.13
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... 2.91 (1.60) 3.05 1.70 0.65 0.13
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.00 0.00 0.00 0.00 0.01 0.00
Net realized gains .............. 0.57 3.74 0.50 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.57 3.74 0.50 0.00 0.01 0.00
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .... $17.02 $14.68 $20.02 $17.47 $15.77 $15.13
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. 20.05% (9.39%) 17.86% 10.78% 4.33% 0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................. $1,273 $948 $455 $272 $57 $34
Ratios to average net assets:
Net investment income (loss)* .. (0.97%) (0.26%) (0.30%) 0.28% 0.10% 0.47%
Net expenses* .................. 2.10% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ................ 2.16% 2.59% 4.12% 3.50% 3.50% 2.43%
Portfolio turnover rate ......... 30% 93% 51% 36% 27% 6%
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95 9/30/94
- ---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.11 $20.36 $17.65 $15.88 $15.19 $15.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ..... (0.02) 0.09 0.05 0.11 0.12 0.00
Net realized and unrealized
gains (losses) on investments ... 3.08 (1.60) 3.19 1.72 0.65 0.19
- ---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............ 3.06 (1.51) 3.24 1.83 0.77 0.19
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............ 0.00 0.00 0.03 0.06 0.08 0.00
Net realized gains ............... 0.57 3.74 0.50 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................ 0.57 3.74 0.53 0.06 0.08 0.00
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ..... $17.60 $15.11 $20.36 $17.65 $15.88 $15.19
- ---------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................... 20.48% (8.71%) 18.79% 11.54% 5.16% 1.27%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................. $7,408 $6,114 $6,152 $3,230 $1,262 $481
Ratios to average net assets:
Net investment income* .......... (0.23%) 0.50% 0.45% 0.68% 0.83% 0.66%
Net expenses* ................... 1.35% 1.35% 1.35% 1.35% 1.35% 1.35%
Gross expenses* ................. 1.41% 1.42% 1.58% 1.96% 2.75% 1.68%
Portfolio turnover rate .......... 30% 93% 51% 36% 27% 6%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95 9/30/94
- -------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.18 $20.43 $17.76 $15.94 $15.22 $15.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ..... 0.00 0.01 0.13 0.17 0.12 0.10
Net realized and unrealized
gains (losses) on investments ... 3.09 (1.46) 3.18 1.73 0.70 0.12
- -------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............ 3.09 (1.45) 3.31 1.90 0.82 0.22
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............ 0.01 0.06 0.14 0.08 0.10 0.00
Net realized gains ............... 0.57 3.74 0.50 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................ 0.58 3.80 0.64 0.08 0.10 0.00
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ..... $17.69 $15.18 $20.43 $17.76 $15.94 $15.22
- -------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................... 20.61% (8.34%) 19.16% 11.97% 5.45% 1.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................. $20,609 $15,367 $75,098 $63,225 $32,907 $26,460
Ratios to average net assets:
Net investment income* .......... 0.01% 0.08% 0.76% 0.99% 0.97% 1.52%
Net expenses* ................... 1.10% 1.04% 1.01% 1.03% 1.07% 1.10%
Gross expenses* ................. 1.16% 1.06% 1.01% 1.03% 1.18% 1.43%
Portfolio turnover rate .......... 30% 93% 51% 36% 27% 6%
</TABLE>
- -------------
See Notes to Financial Highlights and Notes to Financial Statements.
91
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT
THE PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE EUROPE EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
3/31/99(B) 3/31/99(B) 3/31/99(B) 3/31/99(B)
- ----------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/29/99 1/29/99 1/29/99 1/29/99
<S> <C> <C> <C> <C>
Net asset value, beginning of period .......... $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................ 0.01 0.00 0.01 0.02
Net realized and unrealized
gains (losses) on investments ............. (0.39) (0.39) (0.39) (0.39)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.38) (0.39) (0.38) (0.37)
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... 0.00 0.00 0.00 0.00
Net realized gains .......................... 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $9.62 $9.61 $9.62 $9.63
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .............................. (3.80%) (3.90%) (3.80%) (3.70%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $96 $98 $259 $9,630
Ratios to average net assets:
Net investment income (loss)* .............. 0.51% 0.02% 0.70% 1.02%
Net expenses* .............................. 1.70% 2.20% 1.45% 1.20%
Gross expenses* ............................ 2.43% 2.93% 2.22% 1.93%
Portfolio turnover rate ..................... 17% 17% 17% 17%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE EMERGING MARKETS FUND
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
3/31/99(B) 3/31/99(B) 3/31/99(B) 3/31/99(B)
- ---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/29/99 1/29/99 1/29/99 1/29/99
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .................. (0.01) (0.02) 0.00 0.00
Net realized and unrealized
gains (losses) on investments ............... 1.18 1.18 1.18 1.18
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS .. 1.17 1.16 1.18 1.18
- -----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......................... 0.00 0.00 0.00 0.00
Net realized gains ............................ 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................. 0.00 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .................. $11.17 $11.16 $11.18 $11.18
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................ 11.70% 11.60% 11.80% 11.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ...... $112 $112 $120 $11,183
Ratios to average net assets:
Net investment income (loss)* ................ (0.41%) (0.91%) (0.14%) 0.09%
Net expenses* ................................ 1.85% 2.35% 1.60% 1.35%
Gross expenses* .............................. 2.53% 3.03% 2.28% 2.03%
Portfolio turnover rate ....................... 33% 33% 33% 33%
</TABLE>
- ------------
See Notes to Financial Highlights and Notes to Financial Statements.
92
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE STRATEGIC INVESTMENT FUND
- --------------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94(C)
- --------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ........................ $24.03 $24.01 $20.33 $18.43 $15.71 $16.21
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income .......... 0.22 0.53 0.53 0.51 0.52 0.48
Net realized and unrealized
gains (losses) on investments 3.32 0.74 3.87 1.90 2.57 (0.65)
- --------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .......... 3.54 1.27 4.40 2.41 3.09 (0.17)
- --------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.49 0.47 0.47 0.43 0.37 0.27
Net realized gains ............. 2.08 0.78 0.25 0.08 0.00 0.06
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 2.57 1.25 0.72 0.51 0.37 0.33
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $25.00 $24.03 $24.01 $20.33 $18.43 $15.71
- --------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 15.36% 5.58% 22.16% 13.35% 20.12% (1.32%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $36,544 $32,689 $39,731 $25,232 $8,778 $1,104
Ratios to average net assets:
Net investment income* ........ 1.76% 2.18% 2.42% 2.60% 2.95% 2.59%
Net expenses* ................. 1.13% 1.14% 1.15% 1.12% 1.15% 1.15%
Gross expenses* ............... 1.13% 1.14% 1.15% 1.15% 1.19% 1.58%
Portfolio turnover rate ........ 57% 119% 106% 93% 98% 68%
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94
- -------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ........................ $23.65 $23.70 $20.04 $18.26 $15.62 $16.14
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income .......... 0.15 0.42 0.42 0.41 0.40 0.27
Net realized and unrealized
gains (losses) on investments 3.27 0.69 3.82 1.87 2.58 (0.46)
- ------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .......... 3.42 1.11 4.24 2.28 2.98 (0.19)
- ------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.40 0.38 0.33 0.42 0.34 0.27
Net realized gains ............. 2.08 0.78 0.25 0.08 0.00 0.06
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 2.48 1.16 0.58 0.50 0.34 0.33
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $24.59 $23.65 $23.70 $20.04 $18.26 $15.62
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. 15.10% 4.91% 21.57% 12.73% 19.53% (1.25%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $14,089 $11,158 $5,685 $3,701 $882 $150
Ratios to average net assets:
Net investment income* ........ 1.27% 1.72% 1.92% 2.11% 2.46% 1.92%
Net expenses* ................. 1.63% 1.63% 1.65% 1.65% 1.65% 1.65%
Gross expenses* ............... 1.63% 1.63% 1.93% 2.10% 3.50% 2.08%
Portfolio turnover rate ........ 57% 119% 106% 93% 98% 68%
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B) 9/30/94
- ----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ..................... $24.15 $24.11 $20.38 $18.46 $15.72 $16.08
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.25 0.61 0.59 0.54 0.53 0.44
Net realized and unrealized
gains (losses) on investments 3.33 0.73 3.88 1.92 2.59 (0.48)
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .................. 3.58 1.34 4.47 2.46 3.12 (0.04)
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....... 0.56 0.52 0.49 0.46 0.38 0.26
Net realized gains .......... 2.08 0.78 0.25 0.08 0.00 0.06
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........... 2.64 1.30 0.74 0.54 0.38 0.32
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.09 $24.15 $24.11 $20.38 $18.46 $15.72
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .............. 15.51% 5.88% 22.45% 13.58% 20.35% (0.27%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............. $64,752 $49,540 $40,516 $26,467 $17,821 $13,018 $
Ratios to average net assets:
Net investment income (loss)* 2.02% 2.49% 2.66% 2.81% 3.21% 2.62%
Net expenses* .............. 0.88% 0.85% 0.90% 0.90% 0.90% 0.85%
Gross expenses* ............ 0.88% 0.85% 0.94% 1.05% 1.03% 1.33%
Portfolio turnover rate ..... 57% 119% 106% 93% 98% 68%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ..................... $24.20 $24.16 $20.44 $18.49 $15.74 $16.02
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income (loss) 0.28 0.67 0.64 0.63 0.55 0.45
Net realized and unrealized
gains (losses) on investments 3.34 0.72 3.89 1.90 2.62 (0.40)
- -----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .................. 3.62 1.39 4.53 2.53 3.17 0.05
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....... 0.62 0.57 0.56 0.50 0.42 0.27
Net realized gains .......... 2.08 0.78 0.25 0.08 0.00 0.06
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........... 2.70 1.35 0.81 0.58 0.42 0.33
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.12 $24.20 $24.16 $20.44 $18.49 $15.74
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .............. 15.65% 6.10% 22.76% 13.95% 20.70% 0.25%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............. $64,553 $51,802 $37,924 $36,162 $18,665 $17,159
Ratios to average net assets:
Net investment income (loss)* 2.27% 2.70% 2.90% 3.16% 3.46% 2.93%
Net expenses* .............. 0.63% 0.64% 0.65% 0.58% 0.65% 0.65%
Gross expenses* ............ 0.63% 0.64% 0.65% 0.59% 0.97% 1.08%
Portfolio turnover rate ..... 57% 119% 106% 93% 98% 68%
</TABLE>
- --------------
See Notes to Financial Highlights and Notes to Financial Statements.
93
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94(C)
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .......................... $12.53 $12.05 $11.69 $11.91 $11.27 $12.19
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.30 0.64 0.69 0.65 0.73 0.47
Net realized and unrealized
gains (losses) on investments .. (0.35) 0.50 0.35 (0.19) 0.63 (0.84)
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... (0.05) 1.14 1.04 0.46 1.36 (0.37)
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.31 0.64 0.68 0.68 0.72 0.47
Net realized gains .............. 0.00 0.00 0.00 0.00 0.00 0.08
In excess of net investment income 0.00 0.02 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.31 0.66 0.68 0.68 0.72 0.55
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .... $12.17 $12.53 $12.05 $11.69 $11.91 $11.27
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. (0.43%) 9.70% 9.19% 3.91% 12.48% (3.02%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................$39,402 $35,342 $18,617 $15,653 $5,400 $26,023
Ratios to average net assets:
Net investment income* ......... 4.89% 5.28% 5.81% 5.66% 6.22% 5.37%
Net expenses* .................. 1.05% 1.05% 1.09% 1.05% 1.08% 1.10%
Gross expenses* ................ 1.07% 1.06% 1.14% 1.12% 1.18% 1.51%
Portfolio turnover rate ......... 124% 219% 258% 275% 315% 298%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .......................... $12.55 $12.06 $11.70 $11.91 $11.26 $12.15
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.27 0.58 0.63 0.60 0.65 0.42
Net realized and unrealized
gains (losses) on investments .. (0.35) 0.50 0.36 (0.20) 0.66 (0.81)
- ------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... (0.08) 1.08 0.99 0.40 1.31 (0.39)
- ------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.28 0.57 0.63 0.61 0.66 0.42
Net realized gains .............. 0.00 0.00 0.00 0.00 0.00 0.08
In excess of net investment income 0.00 0.02 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.28 0.59 0.63 0.61 0.66 0.50
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .... $12.19 $12.55 $12.06 $11.70 $11.91 $11.26
- ------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. (0.67%) 9.24% 8.64% 3.41% 11.98% (3.31%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................. $2,182 $1,855 $1,401 $1,673 $234 $65
Ratios to average net assets:
Net investment income* ......... 4.39% 4.79% 5.17% 5.19% 5.57% 4.83%
Net expenses* .................. 1.55% 1.55% 1.56% 1.60% 1.60% 1.58%
Gross expenses* ................ 1.57% 1.85% 2.19% 2.44% 3.50% 2.01%
Portfolio turnover rate ......... 124% 219% 258% 275% 315% 298%
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ---------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ......................... $12.55 $12.06 $11.70 $11.92 $11.27 $12.31
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income .......... 0.32 0.68 0.72 0.69 0.73 0.61
Net realized and unrealized
gains (losses) on investments . (0.37) 0.50 0.35 (0.21) 0.67 (0.96)
- ---------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ..................... (0.05) 1.18 1.07 0.48 1.40 (0.35)
- ---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......... 0.32 0.67 0.71 0.70 0.75 0.61
Net realized gains ............. 0.00 0.00 0.00 0.00 0.00 0.08
In excess of net investment income 0.00 0.02 0.00 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............. 0.32 0.69 0.71 0.70 0.75 0.69
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ... $12.18 $12.55 $12.06 $11.70 $11.92 $11.27
- ---------------------------------------------------------------------------------------
TOTAL RETURN (A) ................. (0.38%) 10.06% 9.45% 4.10% 12.81% (2.97%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................ $58,367 $49,736 $35,097 $28,115 $21,401 $13,600
Ratios to average net assets:
Net investment income* ........ 5.14% 5.53% 6.17% 5.84% 6.37% 5.22%
Net expenses* ................. 0.80% 0.80% 0.85% 0.85% 0.85% 0.79%
Gross expenses* ............... 0.82% 0.83% 0.96% 0.99% 0.95% 1.26%
Portfolio turnover rate ........ 124% 219% 258% 275% 315% 298%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 11/29/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period ........................ $12.54 $12.05 $11.69 $11.92 $11.27 $12.17
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ......... 0.33 0.71 0.75 0.72 0.77 0.55
Net realized and unrealized
gains (losses) on investments (0.35) 0.50 0.35 (0.22) 0.65 (0.83)
- ---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .................... (0.02) 1.21 1.10 0.50 1.42 (0.28)
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ......... 0.34 0.70 0.74 0.73 0.77 0.54
Net realized gains ............ 0.00 0.00 0.00 0.00 0.00 0.08
In excess of net investment income 0.00 0.02 0.00 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............. 0.34 0.72 0.74 0.73 0.77 0.62
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .. $12.18 $12.54 $12.05 $11.69 $11.92 $11.27
- ---------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................ (0.18%) 10.33% 9.74% 4.32% 13.10% (2.34%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............... $38,259 $30,067 $16,229 $19,098 $6,642 $2,732
Ratios to average net assets:
Net investment income* ....... 5.39% 5.58% 5.97% 6.14% 6.57% 5.40%
Net expenses* ................ 0.55% 0.55% 0.56% 0.55% 0.59% 0.58%
Gross expenses* .............. 0.57% 0.57% 0.59% 0.57% 2.50% 1.01%
Portfolio turnover rate ....... 124% 219% 258% 275% 315% 298%
</TABLE>
- ----------
See Notes to Financial Highlights and Notes to Financial Statements.
94
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE GOVERNMENT SECURITIES FUND
- ----------------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- ----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .......................... $8.90 $8.53 $8.48 $8.70 $8.43 $10.14
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.25 0.56 0.53 0.62 0.58 0.70
Net realized and unrealized
gains (losses) on investments .. (0.36) 0.39 0.05 (0.22) 0.38 (1.60)
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... (0.11) 0.95 0.58 0.40 0.96 (0.90)
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.30 0.53 0.53 0.54 0.58 0.70
Net realized gains .............. 0.00 0.00 0.00 0.00 0.00 0.03
Return of capital ............... 0.00 0.00 0.00 0.08 0.11 0.08
In excess of net investment income 0.00 0.05 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.30 0.58 0.53 0.62 0.69 0.81
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD .......................... $8.49 $8.90 $8.53 $8.48 $8.70 $8.43
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. (1.30%) 11.61% 7.13% 4.80% 11.77% (9.17%)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) .................$24,794 $24,541 $24,027 $29,090 $26,889 $21,498
Ratios to average net assets:
Net investment income* ......... 5.76% 6.52% 6.91% 6.59% 6.78% 7.09%
Net expenses* .................. 1.10% 1.10% 0.88% 0.90% 1.01% 0.99%
Gross expenses* ................ 1.12% 1.16% 0.88% 0.90% 1.01% 0.99%
Portfolio turnover rate ......... 61% 64% 110% 334% 316% 129%
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- ---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 4/22/87
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .......................... $8.93 $8.54 $8.49 $8.71 $8.42 $10.14
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ........... 0.23 0.52 0.47 0.55 0.51 0.60
Net realized and unrealized
gains (losses) on investments .. (0.36) 0.39 0.05 (0.22) 0.41 (1.58)
- ---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ........... (0.13) 0.91 0.52 0.33 0.92 (0.98)
- ---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........... 0.26 0.48 0.47 0.48 0.52 0.60
Net realized gains .............. 0.00 0.00 0.00 0.00 0.00 0.03
Return of capital ............... 0.00 0.00 0.00 0.07 0.11 0.11
In excess of net investment income 0.00 0.04 0.00 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............... 0.26 0.52 0.47 0.55 0.63 0.74
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD .......................... $8.54 $8.93 $8.54 $8.49 $8.71 $8.42
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .................. (1.45%) 10.99% 6.36% 4.00% 11.19% (9.98%)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) ................$343,027 $399,675 $523,30 $767,216 $1,112,254 $1,252,348
Ratios to average net assets:
Net investment income* ........ 5.26% 6.00% 6.15% 5.77% 6.08% 6.45%
Net expenses* ................. 1.60% 1.60% 1.63% 1.69% 1.76% 1.76%
Gross expenses* ............... 1.62% 1.61% 1.63% 1.69% 1.76% 1.76%
Portfolio turnover rate ........ 61% 64% 110% 334% 316% 129%
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B)
- --------------------------------------------------------------------------------
INCEPTION DATE -- 10/28/97
<S> <C> <C>
Net asset value, beginning of period ................... $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.30 0.61
Net realized and unrealized gains on investments ..... (0.42) 0.36
- --------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ......... (0.12) 0.97
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................................ 0.30 0.51
Net realized gains ................................... 0.00 0.00
In excess of net investment income ................... 0.00 0.05
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................................... 0.30 0.56
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......................... $9.99 $10.41
- --------------------------------------------------------------------------------
TOTAL RETURN (A) ....................................... (1.12%) 10.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ............. $5,554 $972
Ratios to average net assets:
Net investment income* .............................. 6.00% 6.01%
Net expenses* ....................................... 0.85% 0.78%
Gross expenses* ..................................... 0.87% 1.46%
Portfolio turnover rate .............................. 61% 64%
</TABLE>
- --------------
See Notes to Financial Highlights and Notes to Financial Statements.
95
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE SHORT-TERM GOVERNMENT FUND
- -------------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- -------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .................... $12.01 $11.85 $11.78 $11.91 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ...... 0.27 0.62 0.65 0.60 0.64 0.35
Net realized and unrealized
gains (losses) on investments (0.14) 0.19 0.07 (0.06) 0.21 (0.30)
- -------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS ................ 0.13 0.81 0.72 0.54 0.85 0.05
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...... 0.27 0.63 0.64 0.61 0.66 0.33
Net realized gains ......... 0.05 0.02 0.01 0.06 0.00 0.00
- -------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......... 0.32 0.65 0.65 0.67 0.66 0.33
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.82 $12.01 $11.85 $11.78 $11.91 $11.72
- -------------------------------------------------------------------------------------
TOTAL RETURN (A) ............. 1.06% 7.10% 6.30% 4.63% 7.48% 0.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............ $9,565 $8,905 $7,298 $340 $285 $35
Ratios to average net assets:
Net investment income* .... 4.48% 5.21% 5.24% 5.04% 5.27% 4.75%
Net expenses* ............. 0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
Gross expenses* ........... 1.25% 1.17% 2.19% 3.00% 3.00% 1.71%
Portfolio turnover rate .... 80% 185% 265% 201% 415% 146%
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .................... $12.01 $11.84 $11.78 $11.90 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ...... 0.24 0.58 0.61 0.56 0.59 0.33
Net realized and unrealized
gains (losses) on investments (0.13) 0.20 0.06 (0.05) 0.21 (0.31)
- ------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS ................ 0.11 0.78 0.67 0.51 0.80 0.02
- ------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...... 0.25 0.59 0.60 0.57 0.62 0.30
Net realized gains ......... 0.05 0.02 0.01 0.06 0.00 0.00
- ------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......... 0.30 0.61 0.61 0.63 0.62 0.30
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.82 $12.01 $11.84 $11.78 $11.90 $11.72
- ------------------------------------------------------------------------------------
TOTAL RETURN (A) ............. 0.88% 6.83% 5.84% 4.35% 7.01% 0.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............ $783 $895 $1,031 $145 $83 $25
Ratios to average net assets:
Net investment income* .... 4.12% 4.87% 4.84% 4.67% 5.07% 4.38%
Net expenses* ............. 1.30% 1.30% 1.30% 1.30% 1.30% 1.30%
Gross expenses* ........... 1.60% 1.88% 7.77% 3.35% 3.35% 2.06%
Portfolio turnover rate .... 80% 185% 265% 201% 415% 146%
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- -------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period $12.02 $11.86 $11.79 $11.91 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.28 0.65 0.67 0.63 0.66 0.36
Net realized and unrealized
gains (losses) on investments (0.14) 0.19 0.08 (0.05) 0.22 (0.30)
- -------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS 0.14 0.84 0.75 0.58 0.88 0.06
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.28 0.66 0.67 0.64 0.69 0.34
Net realized gains 0.05 0.02 0.01 0.06 0.00 0.00
- -------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.33 0.68 0.68 0.70 0.69 0.34
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.83 $12.02 $11.86 $11.79 $11.91 $11.72
- -------------------------------------------------------------------------------------
TOTAL RETURN (A) 1.19% 7.36% 6.57% 4.98% 7.74% 0.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $9,485 $8,199 $5,319 $3,653 $2,437 $287
Ratios to average net assets:
Net investment income* 4.72% 5.47% 5.57% 5.28% 5.62% 5.18%
Net expenses* 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
Gross expenses* 1.00% 0.95% 1.07% 1.34% 1.84% 1.46%
Portfolio turnover rate 80% 185% 265% 201% 415% 146%
</TABLE>
<TABLE>
<CAPTION>
CLASS D
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- --------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period $12.01 $11.85 $11.78 $11.90 $11.72 $12.00
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income 0.30 0.68 0.70 0.66 0.69 0.39
Net realized and unrealized
gains (losses) on investments (0.13) 0.19 0.08 (0.05) 0.21 (0.31)
- ----------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS 0.17 0.87 0.78 0.61 0.90 0.08
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.30 0.69 0.70 0.67 0.72 0.36
Net realized gains 0.05 0.02 0.01 0.06 0.00 0.00
- ----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.35 0.71 0.71 0.73 0.72 0.36
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.83 $12.01 $11.85 $11.78 $11.90 $11.72
- ----------------------------------------------------------------------------------------
TOTAL RETURN (A) 1.40% 7.65% 6.83% 5.24% 7.92% 0.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $4,065 $9,444 $7,717 $7,786 $8,048 $7,822
Ratios to average net assets:
Net investment income* 4.98% 5.74% 5.80% 5.54% 5.89% 5.32%
Net expenses* 0.45% 0.45% 0.45% 0.45% 0.45% 0.45%
Gross expenses* 0.75% 0.68% 0.68% 0.83% 0.98% 1.21%
Portfolio turnover rate 80% 185% 265% 201% 415% 146%
</TABLE>
- ------------
See Notes to Financial Highlights and Notes to Financial Statements.
96
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT
THE PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
CLASS A
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .................... $11.83 $11.63 $11.42 $11.31 $10.59 $11.48
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ...... 0.25 0.51 0.53 0.62 0.55 0.45
Net realized and unrealized
gains (losses) on investments (0.16) 0.20 0.22 0.05 0.73 (0.78)
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ................. 0.09 0.71 0.75 0.67 1.28 (0.33)
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...... 0.25 0.51 0.54 0.56 0.56 0.56
Net realized gains ......... 0.00 0.00 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......... 0.25 0.51 0.54 0.56 0.56 0.56
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.67 $11.83 $11.63 $11.42 $11.31 $10.59
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............. 0.65% 6.33% 6.77% 6.13% 12.24% (2.99%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............ $5,884 $5,730 $16,542 $16,169 $16,025 $14,283
Ratios to average net assets:
Net investment income* .... 4.20% 4.32% 5.01% 5.42% 5.01% 4.08%
Net expenses* ............. 1.10% 1.10% 0.35% 0.00% 0.00% 0.77%
Gross expenses* ........... 1.23% 1.23% 1.57% 1.52% 1.81% 1.62%
Portfolio turnover rate .... 20% 74% 13% 6% 25% 0%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS B
3/31/99(B) 9/30/98(B) 9/30/97(D) 10/31/96 10/31/95 10/31/94
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of
<S> <C> <C> <C> <C> <C> <C>
period .................... $11.83 $11.63 $11.44 $11.32 $10.60 $11.48
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income ...... 0.22 0.44 0.51 0.62 0.55 0.43
Net realized and unrealized
gains (losses) on investments (0.17) 0.21 0.21 0.06 0.73 (0.82)
- ------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ................. 0.05 0.65 0.72 0.68 1.28 (0.39)
- ------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...... 0.22 0.45 0.53 0.56 0.56 0.49
Net realized gains ......... 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......... 0.22 0.45 0.53 0.56 0.56 0.49
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.66 $11.83 $11.63 $11.44 $11.32 $10.60
- ------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............. 0.40% 5.68% 6.46% 6.12% 12.33% (3.45%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ............ $8,293 $8,905 $10,133 $9,184 $7,668 $4,990
Ratios to average net assets:
Net investment income* .... 3.70% 3.81% 4.79% 5.43% 5.01% 3.75%
Net expenses* ............. 1.60% 1.60% 0.57% 0.00% 0.00% 1.14%
Gross expenses* ........... 1.73% 1.71% 2.32% 2.26% 2.56% 2.30%
Portfolio turnover rate .... 20% 74% 13% 6% 25% 0%
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C CLASS D
3/31/99(B) 9/30/98(B) 9/30/97 3/31/99(B) 9/30/98(B) 9/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- 9/26/97 -- -- 9/26/97
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $12.30 $12.09 $12.08 $12.30 $12.10 $12.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................. 0.27 0.55 0.02 0.29 0.58 0.02
Net realized and unrealized gains
on investments ....................... (0.17) 0.21 0.00 (0.17) 0.27 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ............................ 0.10 0.76 0.02 0.12 0.85 0.02
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.27 0.55 0.01 0.29 0.65 0.01
Net realized gains ..................... 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.27 0.55 0.01 0.29 0.65 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $12.13 $12.30 $12.09 $12.13 $12.30 $12.10
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 0.83% 6.48% 0.11% 0.88% 7.30% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $19,484 $10,794 $8,032 $24 $24 $3,216
Ratios to average net assets:
Net investment income* ................ 4.46% 4.57% 4.04% 4.71% 4.74% 4.31%
Net expenses* ......................... 0.85% 0.85% 0.74% 0.60% 0.60% 0.54%
Gross expenses* ....................... 0.98% 0.98% 0.76% 0.73% 1.25% 0.56%
Portfolio turnover rate ................ 20% 74% 13% 20% 74% 13%
</TABLE>
- -----------
See Notes to Financial Highlights and Notes to Financial Statements.
97
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE
PERIOD(S) INDICATED (MARCH 31, 1999 DATA IS UNAUDITED)
<TABLE>
<CAPTION>
GE HIGH YIELD FUND
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
3/31/99(B) 3/31/99(B) 3/31/99(B) 3/31/99(B)
- ----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/98 12/31/98 12/31/98 12/31/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period .... $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... 0.15 0.14 0.18 0.16
Net realized and unrealized
gains (losses) on investments ....... 0.03 0.03 0.01 0.03
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ......................... 0.18 0.17 0.19 0.19
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. 0.15 0.14 0.16 0.16
Net realized gains .................... 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... 0.15 0.14 0.16 0.16
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $10.03 $10.03 $10.03 $10.03
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 1.82% 1.70% 1.89% 1.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $102 $102 $966 $20,366
Ratios to average net assets:
Net investment income (loss)* ........ 6.34% 5.84% 7.48% 6.87%
Net expenses* ........................ 1.20% 1.70% 0.38% 0.70%
Gross expenses* ...................... 1.73% 2.23% 0.75% 0.97%
Portfolio turnover rate ............... 8% 8% 8% 8%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE MONEY MARKET FUND
3/31/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95 9/30/94
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.05 0.05 0.05 0.05 0.05 0.03
Net realized and unrealized gains
on investments ....................... (0.03) 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS ............................ 0.02 0.05 0.05 0.05 0.05 0.03
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. 0.02 0.05 0.05 0.05 0.05 0.03
Net realized gains .................... 0.00 0.00 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... 0.02 0.05 0.05 0.05 0.05 0.03
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 2.33% 5.23% 5.14% 5.18% 5.52% 3.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $171,893 $153,665 $114,030 $85,842 $71,664 $53,607
Ratios to average net assets:
Net investment income* ............... 4.61% 5.11% 5.04% 5.06% 5.32% 3.41%
Net expenses* ........................ 0.50% 0.50% 0.47% 0.45% 0.45% 0.45%
Gross expenses* ...................... 0.50% 0.52% 0.56% 0.66% 0.70% 1.04%
</TABLE>
- ------------
See Notes to Financial Highlights and Notes to Financial Statements.
98
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
(A) TOTAL RETURNS ARE HISTORICAL AND ASSUME CHANGES IN SHARE PRICE, REINVESTMENT
OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS, 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) PER SHARE DATA IS BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
(C) 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 OPERATIONS), THROUGH SEPTEMBER 30, 1994.
(D) FOR THE PERIOD NOVEMBER 1, 1996, THROUGH SEPTEMBER 30, 1997.
(E) THE VALUES SHOWN FOR THE PER SHARE INFORMATION HAVE BEEN ADJUSTED TO REFLECT
THE 1 SHARE FOR 1.68 SHARES REVERSE STOCK SPLIT IN THE GE VALUE EQUITY FUND
ON NOVEMBER 6, 1998. ALSO SEE NOTE 9 OF NOTES TO FINANCIAL STATEMENTS.
(F) THE VALUES SHOWN FOR THE PER SHARE INFORMATION HAVE BEEN ADJUSTED TO REFLECT
THE 1 SHARE FOR 4.71 SHARES REVERSE STOCK SPLIT IN THE GE MID-CAP GROWTH
FUND ON NOVEMBER 6, 1998. ALSO SEE NOTE 9 OF NOTES TO FINANCIAL STATEMENTS.
* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
99
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE GE
U.S. PREMIER GROWTH VALUE MID-CAP
EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $486,455,424; $45,746,178;
$59,477,901; $33,027,930; $10,106,426; $18,625,651; $45,440,122;
$47,150,967; $10,228,753;
$9,644,067; and $141,509,894, respectively ) ............ $629,063,096 $58,581,967 $76,256,736 $37,092,361
Short-term investments (at amortized cost) ................. 24,296,209 3,328,631 1,037,787 2,370,569
Foreign currency (cost $0; $0; $0; $0; $0; $0; $24,681;
$302,911; $11,468; $6,036; and $38,845, respectively) -- -- -- --
Receivable for investments sold ............................ 20,802,733 858,382 42,361 --
Income receivables ......................................... 736,800 25,344 90,385 51,508
Receivable for fund shares sold ............................ 531,046 287,362 16,845 68
Deferred organizational costs .............................. -- 7,445 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ............................................ 675,429,884 63,089,131 77,444,114 39,514,506
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market ** .............................. -- -- -- --
Payable for investments purchased .......................... 1,301,685 518,164 138,156 903,055
Payable for fund shares redeemed ........................... 21,182,316 25,178 117,350 59,715
Payable to GEIM ............................................ 276,141 40,846 42,318 13,026
Variation margin payable ................................... 235,300 15,000 -- 1,100
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ....................................... 22,995,442 599,188 297,824 976,896
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $652,434,442 $62,489,943 $77,146,290 $38,537,610
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ............................................ $454,806,067 $47,023,563 $58,327,949 $37,556,463
Undistributed (overdistributed) net investment income 1,061,914 (9,276) 58,216 34,660
Accumulated net realized gain (loss) ....................... 54,125,786 2,657,042 1,981,106 (3,112,594)
Net unrealized appreciation / (depreciation) on:
Investments ............................................. 142,607,672 12,835,789 16,778,835 4,064,431
Futures ................................................. (166,668) (17,175) -- (5,350)
Written options ......................................... -- -- -- --
Foreign currency related transactions ................... (329) -- 184 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $652,434,442 $62,489,943 $77,146,290 $38,537,610
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets .................................................... $119,033,409 $13,423,794 $18,813,291 $12,585,365
Shares outstanding ($.001 par value) .......................... 3,634,746 505,158 1,573,144 1,281,730
Net asset value per share ..................................... $32.75 $26.57 $11.96 $9.82
Maximum offering price per share .............................. $34.75 $28.19 $12.69 $10.42
CLASS B:
Net assets .................................................... $30,819,586 $5,907,732 $51,912,527 $22,185,277
Shares outstanding ($.001 par value) .......................... 982,154 224,861 4,417,775 2,400,804
Net asset value per share* .................................... $31.38 $26.27 $11.75 $9.24
CLASS C:
Net assets .................................................... $169,577,932 $31,528,409 $4,482,631 $3,222,917
Shares outstanding ($.001 par value) .......................... 5,267,056 1,182,518 366,967 319,178
Net asset value per share ..................................... $32.20 $26.66 $12.22 $10.10
CLASS D:
Net assets .................................................... $333,003,515 $11,630,008 $1,937,841 $544,051
Shares outstanding ($.001 par value) .......................... 10,372,506 435,144 155,244 52,433
Net asset value per share ..................................... $32.10 $26.73 $12.48 $10.38
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
MID-CAP SMALL-CAP GLOBAL
VALUE EQUITY VALUE EQUITY EQUITY
FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $486,455,424; $45,746,178;
$59,477,901; $33,027,930; $10,106,426; $18,625,651; $45,440,122;
$47,150,967; $10,228,753;
$9,644,067; and $141,509,894, respectively ) ............ $10,327,933 $18,571,219 $56,384,084
Short-term investments (at amortized cost) ................. 281,192 505,839 2,489,928
Foreign currency (cost $0; $0; $0; $0; $0; $0; $24,681;
$302,911; $11,468; $6,036; and $38,845, respectively) -- -- 24,666
Receivable for investments sold ............................ -- 147,302 756,233
Income receivables ......................................... 11,423 15,869 176,231
Receivable for fund shares sold ............................ -- 10,275 8,617
Deferred organizational costs .............................. -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ............................................ 10,620,548 19,250,504 59,839,759
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market ** .............................. -- -- --
Payable for investments purchased .......................... -- 273,797 1,202,710
Payable for fund shares redeemed ........................... -- 12,276 88,823
Payable to GEIM ............................................ 905 14,131 64,467
Variation margin payable ................................... -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ....................................... 905 300,204 1,356,000
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $10,619,643 $18,950,300 $58,483,759
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ............................................ $10,504,653 $19,028,614 $45,947,890
Undistributed (overdistributed) net investment income 25,482 (8,711) (194,432)
Accumulated net realized gain (loss) ....................... (131,999) (15,171) 1,789,278
Net unrealized appreciation / (depreciation) on:
Investments ............................................. 221,507 (54,432) 10,943,962
Futures ................................................. -- -- --
Written options ......................................... -- -- --
Foreign currency related transactions ................... -- -- (2,939)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $10,619,643 $18,950,300 $58,483,759
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets .................................................... $100,919 $9,797,057 $2,292,080
Shares outstanding ($.001 par value) .......................... 10,001 944,774 94,864
Net asset value per share ..................................... $10.09 $10.37 $24.16
Maximum offering price per share .............................. $10.71 $11.00 $25.64
CLASS B:
Net assets .................................................... $107,104 $7,335,417 $1,285,723
Shares outstanding ($.001 par value) .......................... 10,627 708,276 54,365
Net asset value per share* .................................... $10.08 $10.36 $23.65
CLASS C:
Net assets .................................................... $309,674 $1,708,323 $34,521,146
Shares outstanding ($.001 par value) .......................... 30,674 164,616 1,411,945
Net asset value per share ..................................... $10.10 $10.38 $24.45
CLASS D:
Net assets .................................................... $10,101,946 $109,503 $20,384,810
Shares outstanding ($.001 par value) .......................... 1,000,026 10,545 835,288
Net asset value per share ..................................... $10.10 $10.38 $24.40
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
INTERNATIONAL EUROPE EMERGING STRATEGIC
EQUITY EQUITY MARKETS INVESTMENT
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $486,455,424; $45,746,178;
$59,477,901; $33,027,930; $10,106,426; $18,625,651; $45,440,122;
$47,150,967; $10,228,753;
$9,644,067; and $141,509,894, respectively ) ............ $51,662,050 $ 9,885,391 $10,824,168 $173,527,545
Short-term investments (at amortized cost) ................. 320,025 54,049 738,545 9,260,487
Foreign currency (cost $0; $0; $0; $0; $0; $0; $24,681;
$302,911; $11,468; $6,036; and $38,845, respectively) 296,913 11,473 5,989 38,629
Receivable for investments sold ............................ 1,065,907 238,821 77,879 1,773,446
Income receivables ......................................... 178,936 18,666 15,588 863,941
Receivable for fund shares sold ............................ 37,172 100 -- 58,009
Deferred organizational costs .............................. -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ............................................ 53,561,003 10,208,500 11,662,169 185,522,057
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market ** .............................. -- -- -- 7,628
Payable for investments purchased .......................... 762,642 115,169 122,462 5,369,118
Payable for fund shares redeemed ........................... 18,773 -- -- 117,385
Payable to GEIM ............................................ 28,157 10,036 12,582 90,353
Variation margin payable ................................... -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ....................................... 809,572 125,205 135,044 5,584,484
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $52,751,431 $10,083,295 $11,527,125 $179,937,573
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ............................................ $47,151,094 $10,467,283 $10,308,426 $142,670,199
Undistributed (overdistributed) net investment income (253,209) 16,010 1,332 837,427
Accumulated net realized gain (loss) ....................... 1,352,395 (57,081) 37,726 4,412,403
Net unrealized appreciation / (depreciation) on:
Investments ............................................. 4,511,083 (343,362) 1,180,101 32,017,651
Futures ................................................. -- -- -- --
Written options ......................................... -- -- -- 1,948
Foreign currency related transactions ................... (9,932) 445 (460) (2,055)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS .................................................... $52,751,431 $10,083,295 $11,527,125 $179,937,573
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets .................................................... $23,461,410 $96,215 $111,740 $36,543,975
Shares outstanding ($.001 par value) .......................... 1,346,466 10,000 10,000 1,461,910
Net asset value per share ..................................... $17.42 $9.62 $11.17 $25.00
Maximum offering price per share .............................. $18.48 $10.21 $11.85 $26.53
CLASS B:
Net assets .................................................... $1,272,646 $98,170 $111,908 $14,088,565
Shares outstanding ($.001 par value) .......................... 74,781 10,211 10,023 572,946
Net asset value per share* .................................... $17.02 $9.61 $11.16 $24.59
CLASS C:
Net assets .................................................... $7,408,028 $259,104 $120,452 $64,752,484
Shares outstanding ($.001 par value) .......................... 420,982 26,921 10,775 2,580,866
Net asset value per share ..................................... $17.60 $9.62 $11.18 $25.09
CLASS D:
Net assets .................................................... $20,609,347 $9,629,806 $11,183,025 $64,552,549
Shares outstanding ($.001 par value) .......................... 1,165,138 1,000,052 1,000,000 2,569,935
Net asset value per share ..................................... $17.69 $9.63 $11.18 $25.12
<FN>
*Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
**Premiums received for the GE Strategic Investment Fund were $9,576.
</FN>
</TABLE>
- -----------
See Notes to Financial Statements.
100 & 101
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE
FIXED GOVERNMENT SHORT-TERM
INCOME SECURITIES GOVERNMENT
FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $136,385,773;
$351,741,105; $24,334,716; $31,766,794; $19,716,164;
and $0, respectively ) ...................................... $135,392,517 $356,099,601 $24,271,862
Short-term investments (at amortized cost) ..................... 13,382,342 53,213,426 9,228
Receivable for investments sold ................................ 2,539,606 608,634 --
Income receivables ............................................. 1,414,869 6,229,118 150,334
Receivable for fund shares sold ................................ 51,871 -- 12,312
Receivable for forward foreign currency ........................ -- -- --
Receivable from advisor ........................................ -- -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ................................................ 152,781,205 416,150,779 24,443,736
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market * ................................... 15,832 49,133 --
Distributions payable to shareholders .......................... 114,850 413,301 20,171
Payable upon return of securities loaned ....................... -- 35,882,858 --
Payable for investments purchased .............................. 14,326,805 5,620,057 509,072
Payable for fund shares redeemed ............................... 48,058 150,529 13,044
Payable to GEIM ................................................ 66,003 659,375 3,325
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................... 14,571,548 42,775,253 545,612
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $138,209,657 $373,375,526 $23,898,124
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ................................................ 139,881,986 $558,413,364 $23,879,835
Undistributed net investment income ............................ 252,440 517,116 11,384
Accumulated net realized gain (loss) ........................... (935,558) (189,926,333) 69,759
Net unrealized appreciation / (depreciation) on:
Investments ................................................. (993,256) 4,358,496 (62,854)
Written options ............................................. 4,045 12,883 --
Foreign currency related transactions ....................... -- -- --
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $138,209,657 $373,375,526 $23,898,124
- ------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets ........................................................ $39,401,744 $24,794,201 $9,565,451
Shares outstanding ($.001 par value) .............................. 3,237,448 2,919,410 809,134
Net asset value per share ......................................... $12.17 $8.49 $11.82
Maximum offering price per share .................................. $12.71 $8.87 $12.12
CLASS B:
Net assets ........................................................ $2,181,531 $343,027,301 $783,474
Shares outstanding ($.001 par value) .............................. 178,983 40,160,941 66,302
Net asset value per share** ....................................... $12.19 $8.54 $11.82
CLASS C:
Net assets ........................................................ $58,367,561 $5,554,024 $9,484,650
Shares outstanding ($.001 par value) .............................. 4,791,198 556,065 801,628
Net asset value per share ......................................... $12.18 $9.99 $11.83
CLASS D:
Net assets ........................................................ $38,258,821 $-- $4,064,549
Shares outstanding ($.001 par value) .............................. 3,141,858 -- 343,724
Net asset value per share ......................................... $12.18 -- $11.83
</TABLE>
<TABLE>
<CAPTION>
GE GE
GE HIGH MONEY
TAX-EXEMPT YIELD MARKET
FUND FUND FUND***
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $136,385,773;
$351,741,105; $24,334,716; $31,766,794; $19,716,164;
and $0, respectively ) ...................................... $32,624,337 $19,776,697 $ --
Short-term investments (at amortized cost) ..................... 253,146 973,389 171,938,839
Receivable for investments sold ................................ -- 654,326 --
Income receivables ............................................. 571,880 391,224 289,610
Receivable for fund shares sold ................................ 230,410 500 116,067
Receivable for forward foreign currency ........................ -- 16,037 --
Receivable from advisor ........................................ 27,063 -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ................................................ 33,706,836 21,812,173 172,344,516
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market * ................................... -- -- --
Distributions payable to shareholders .......................... 22,186 25,493 126,632
Payable upon return of securities loaned ....................... -- -- --
Payable for investments purchased .............................. -- 250,061 --
Payable for fund shares redeemed ............................... -- -- 249,759
Payable to GEIM ................................................ -- 1,147 75,249
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................... 22,186 276,701 451,640
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $33,684,650 $21,535,472 $171,892,876
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ................................................ $33,063,905 $21,456,741 $171,841,509
Undistributed net investment income ............................ 76,822 -- 60,209
Accumulated net realized gain (loss) ........................... (313,620) 2,411 (8,842)
Net unrealized appreciation / (depreciation) on:
Investments ................................................. 857,543 60,533 --
Written options ............................................. -- -- --
Foreign currency related transactions ....................... -- 15,787 --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $33,684,650 $21,535,472 $171,892,876
- -------------------------------------------------------------------------------------------------------------------------------
CLASS A:
Net assets ........................................................ $5,883,678 $101,739 --
Shares outstanding ($.001 par value) .............................. 504,353 10,142 --
Net asset value per share ......................................... $11.67 $10.03 --
Maximum offering price per share .................................. $12.19 $10.48 --
CLASS B:
Net assets ........................................................ $8,292,673 $101,627 --
Shares outstanding ($.001 par value) .............................. 711,025 10,131 --
Net asset value per share** ....................................... $11.66 $10.03 --
CLASS C:
Net assets ........................................................ $19,483,811 $966,057 $171,892,876
Shares outstanding ($.001 par value) .............................. 1,606,879 96,355 171,903,624
Net asset value per share ......................................... $12.13 $10.03 $1.00
CLASS D:
Net assets ........................................................ $24,488 $20,366,049 --
Shares outstanding ($.001 par value) .............................. 2,019 2,030,174 --
Net asset value per share ......................................... $12.13 $10.03 --
<FN>
* Premiums received for the GE Fixed Income Fund and GE Government Securities
Fund were $19,877 and $62,016, respectively.
** 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.
</FN>
</TABLE>
- --------------
See Notes to Financial Statements.
102 & 103
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE GE GE
U.S. PREMIER GROWTH VALUE MID-CAP MID-CAP
EQUITY EQUITY EQUITY GROWTH VALUE EQUITY
FUND FUND FUND FUND FUND*
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C> <C>
Dividends ................................ 3,708,745 $ 94,470 $ 500,958 $ 128,714 $ 33,704
Interest ................................. 444,341 90,335 40,889 75,706 13,821
Less: Foreign taxes withheld ............. (11,332) -- (848) (1,605) --
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................ 4,141,754 184,805 540,999 202,815 47,525
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ......... 1,204,271 129,353 198,256 111,142 19,188
Distribution fees
Class A ............................... 263,030 22,664 42,873 28,516 118
Class B ............................... 130,607 16,400 248,467 113,771 240
Class C ............................... 187,115 27,049 4,264 2,925 98
Blue Sky fees ............................ 31,508 12,720 15,115 14,077 4,767
Transfer agent fees ...................... 220,745 26,323 44,957 29,432 2,973
Trustees' fees ........................... 6,469 407 815 372 59
Custody and accounting expenses .......... 57,020 13,109 15,774 12,072 6,980
Professional fees ........................ 88,381 5,621 11,094 4,938 837
Registration expenses .................... 16,443 1,034 2,071 959 148
Amortization of deferred organization expense -- 1,407 -- -- --
Other expenses ........................... 55,751 3,565 6,985 3,037 2,215
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................ 2,261,340 259,652 590,671 321,241 37,623
Less: Expenses waived or borne by
the adviser ........................... (137,157) (4,778) (2,245) (10,178) (15,580)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses ............................. 2,124,183 254,874 588,426 311,063 22,043
NET INVESTMENT INCOME (LOSS) ................ 2,017,571 (70,069) (47,427) (108,248) 25,482
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ........................... 57,600,394 2,393,885 2,067,236 (1,287,574) (131,999)
Futures ............................... 939,816 373,450 218,987 (218,925) --
Written options ....................... -- -- -- -- --
Foreign currency related transactions . (7,624) -- (3,742) (14) --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ........................... 76,113,252 9,630,632 13,262,288 7,849,529 221,507
Futures ............................... (161,244) (8,362) (20,738) (4,925) --
Written options ....................... -- -- -- -- --
Foreign currency related transactions . (715) -- 2,229 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ........................ 134,483,879 12,389,605 15,526,260 6,338,091 89,508
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ $136,501,450 $12,319,536 $15,478,833 $6,229,843 $114,990
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
SMALL-CAP GLOBAL INTERNATIONAL EUROPE
VALUE EQUITY EQUITY EQUITY EQUITY
FUND** FUND FUND FUND***
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends ................................ $ 66,457 $ 238,914 $ 212,998 $ 20,598
Interest ................................. 80,121 80,469 79,468 16,614
Less: Foreign taxes withheld ............. -- (18,078) (20,212) (1,567)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................ 146,578 301,305 272,254 35,645
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ......... 56,331 197,648 193,791 16,903
Distribution fees
Class A ............................... 20,024 4,079 52,200 77
Class B ............................... 35,615 5,715 5,614 155
Class C ............................... 1,187 39,991 8,379 85
Blue Sky fees ............................ 8,187 14,041 14,620 4,857
Transfer agent fees ...................... 16,232 54,351 31,736 2,966
Trustees' fees ........................... 228 657 703 41
Custody and accounting expenses .......... 11,538 14,565 14,690 5,304
Professional fees ........................ 3,080 8,909 9,473 592
Registration expenses .................... 579 1,670 1,788 100
Amortization of deferred organization expense -- -- 8,863 --
Other expenses ........................... 1,935 5,607 5,941 395
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................ 154,936 347,233 347,798 31,475
Less: Expenses waived or borne by
the adviser ........................... (25,683) (4,892) (14,433) (11,840)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses ............................. 129,253 342,341 333,365 19,635
NET INVESTMENT INCOME (LOSS) ................ 17,325 (41,036) (61,111) 16,010
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ........................... 37,005 1,991,256 1,702,621 (17,545)
Futures ............................... -- -- -- --
Written options ....................... -- -- -- --
Foreign currency related transactions . -- (46,905) (42,282) (39,536)
INCREASE (DECREASE) IN UNREALIZED APPRECIATIO
DEPRECIATION ON:
Investments ........................... (54,432) 11,381,789 7,606,838 (343,362)
Futures ............................... -- -- -- --
Written options ....................... -- -- -- --
Foreign currency related transactions . -- (9,096) 7,654 445
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ........................ (17,427) 13,317,044 9,274,831 (399,998)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ $ (102) $13,276,008 $9,213,720 $(383,988)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
EMERGING STRATEGIC
MARKETS INVESTMENT
FUND*** FUND
- -------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C>
Dividends ................................ $ 15,961 $ 481,604
Interest ................................. 9,932 1,876,044
Less: Foreign taxes withheld ............. (1,097) (12,460)
- -------------------------------------------------------------------------------------
TOTAL INCOME ................................ 24,796 2,345,188
- -------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ......... 20,597 282,886
Distribution fees
Class A ............................... 83 85,772
Class B ............................... 167 63,239
Class C ............................... 43 70,463
Blue Sky fees ............................ 4,855 17,131
Transfer agent fees ...................... 2,967 139,238
Trustees' fees ........................... 41 1,809
Custody and accounting expenses .......... 5,304 22,970
Professional fees ........................ 592 24,662
Registration expenses .................... 100 4,599
Amortization of deferred organization expense -- --
Other expenses ........................... 395 16,164
- -------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................ 35,144 728,933
Less: Expenses waived or borne by
the adviser ........................... (11,680) --
- -------------------------------------------------------------------------------------
Net expenses ............................. 23,464 728,933
NET INVESTMENT INCOME (LOSS) ................ 1,332 1,616,255
- -------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ........................... 129,852 5,000,859
Futures ............................... -- (74,172)
Written options ....................... -- 48,252
Foreign currency related transactions . (92,126) (17,965)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ........................... 1,180,101 16,212,602
Futures ............................... -- --
Written options ....................... -- 1,211
Foreign currency related transactions . (460) (3,371)
- -------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ........................ 1,217,367 21,167,416
- -------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ $ $1,218,699 $22,783,671
- -------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through March 31, 1999.
** For the period September 30, 1998 (inception) through March 31, 1999.
*** For the period January 29, 1999 (inception) through March 31, 1999.
</FN>
</TABLE>
- ------------
See Notes to Financial Statements.
104 & 105
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE GE GE
FIXED GOVERNMENT SHORT-TERM GE HIGH MONEY
INCOME SECURITIES GOVERNMENT TAX-EXEMPT YIELD MARKET
FUND FUND FUND FUND FUND* FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C> <C> <C>
Dividends ............................. $ 47,747 $ -- $ -- $ -- $ -- $ --
Interest .............................. 3,751,063 13,587,349** 716,820 747,814 367,620 4,263,702
Less: Foreign taxes withheld .......... -- -- -- -- -- --
- ------------------------------------------------------------------------------
TOTAL INCOME ............................. 3,798,810 13,587,349 716,820 747,814 367,620 4,263,702
- ------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ...... 223,446 795,126 39,768 49,223 24,370 208,513
Distribution fees
Class A ............................ 94,674 61,659 23,736 14,387 119 --
Class B ............................ 10,101 1,849,597 3,470 43,559 239 --
Class C ............................ 66,813 3,579 11,215 17,097 195 --
Blue Sky fees ......................... 14,192 28,905 13,205 13,481 6,445 17,232
Transfer agent fees ................... 69,399 225,613 16,570 19,899 5,605 117,871
Trustees' fees ........................ 1,338 5,289 310 313 115 1,943
Custody and accounting expenses ....... 19,846 45,727 12,184 12,150 7,499 23,772
Professional fees ..................... 18,325 71,385 4,230 4,246 1,650 26,438
Registration expenses ................. 3,400 13,456 790 797 294 4,940
Amortization of deferred
organization expense ................ -- -- 8,863 -- -- --
Other expenses ........................ 12,188 45,616 2,663 3,287 1,060 16,647
- ------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ............. 533,722 3,145,952 137,004 178,439 47,591 417,356
Less: Expenses waived or borne by
the adviser ........................ (6,770) (41,453) (38,931) (18,397) (13,494) (330)
- ------------------------------------------------------------------------------
Net expenses .......................... 526,952 3,104,499 98,073 160,042 34,097 417,026
NET INVESTMENT INCOME .................... 3,271,858 10,482,850 618,747 587,772 333,523 3,846,676
- ------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ........................ 132,338 168,466 165,547 114,704 568 --
Futures ............................ -- -- -- -- -- --
Written options .................... 103,593 287,604 -- -- -- --
Foreign currency related transactions (13) -- -- -- 1,843 --
INCREASE (DECREASE) IN UNREALIZED
APPRECIATION/ DEPRECIATION ON:
Investments ........................ (3,909,379) (16,779,747) (477,309) (584,069) 60,533 --
Futures ............................ -- -- -- -- -- --
Written options .................... 2,111 4,024 -- -- -- --
Foreign currency related transactions (29) -- -- -- 15,787 --
- ------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ..................... (3,671,379) (16,319,653) (311,762) (469,365) 78,731 --
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS ............. $ (399,521) $ (5,836,803) $ 306,985 $ 118,407 $ 412,254 $ 3,846,676
- ------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through March 31, 1999.
** Income attributable to security lending activity, net of rebate expenses,
for the GE Government Securities Fund was $306,457.
</FN>
</TABLE>
- ---------
See Notes to Financial Statements.
106 & 107
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
GE GE GE
U.S. PREMIER GROWTH VALUE
EQUITY EQUITY EQUITY
FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) ............. $ 2,017,571 $ 4,526,425 $ (70,069) $ 44,149 $ (47,427) $ 77,791
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions .......... 58,532,586 45,962,987 2,767,335 1,198,776 2,282,481 2,575,075
Net increase (decrease) in unrealized
appreciation/depreciation .............. 75,951,293 (38,784,755) 9,622,270 1,054,296 13,243,779 139,963
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations .. 136,501,450 11,704,657 12,319,536 2,297,221 15,478,833 2,792,829
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................ (554,582) (481,181) -- -- (38,533) --
Class B ................................ (37,985) (32,171) -- -- -- --
Class C ................................ (1,040,599) (855,823) (21,376) (13,202) (15,926) --
Class D ................................ (3,032,762) (2,463,920) (24,596) (17,092) (12,937) --
Tax return of capital
Class A ................................ -- -- -- -- -- --
Class B ................................ -- -- -- -- -- --
Class C ................................ -- -- -- -- -- --
Class D ................................ -- -- -- -- -- --
Net realized gains
Class A ................................ (8,266,829) (5,530,158) (245,349) (32,269) (604,507) (2,507,957)
Class B ................................ (2,013,790) (1,340,093) (75,915) (11,673) (1,765,132) (13,807,227)
Class C ................................ (11,428,065) (8,562,260) (541,997) (130,090) (107,703) (117,795)
Class D ................................ (24,644,393) (18,140,095) (243,657) (90,458) (62,064) --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................ (51,019,005) (37,405,701) (1,152,890) (294,784) (2,606,802) (16,432,979)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ............... 85,482,445 (25,701,044) 11,166,646 2,002,437 12,872,031 (13,640,150)
- ----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................ 25,207,291 39,908,081 5,941,539 5,068,340 12,884,407 7,573,642
Class B ................................ 5,586,389 9,344,808 3,092,462 1,665,872 2,434,627 8,084,776
Class C ................................ 24,134,523 39,694,037 11,798,523 8,332,734 1,961,270 2,734,074
Class D ................................ 37,798,870 148,277,145 17,153,047 1,303,750 572,038 2,145,188
Value of distributions reinvested
Class A ................................ 8,821,817 6,011,339 245,318 32,272 639,827 2,501,541
Class B ................................ 1,987,603 1,323,764 69,016 11,511 1,723,572 13,405,062
Class C ................................ 12,199,259 9,238,804 556,530 140,941 122,575 117,795
Class D ................................ 27,361,490 20,389,435 268,240 107,550 75,003 --
Cost of shares redeemed
Class A ................................ (15,481,027) (22,060,445) (1,125,010) (873,788) (12,023,145) (1,991,397)
Class B ................................ (1,856,292) (2,702,360) (154,605) (99,702) (5,847,916) (11,473,261)
Class C ................................ (12,829,693) (17,397,625) (1,502,130) (1,489,425) (529,678) (274,073)
Class D ................................ (59,076,628) (83,986,003) (15,779,434) (342,129) (614,005) (578,798)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions ...................... 53,853,602 148,040,980 20,563,496 13,857,926 1,398,575 22,244,549
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .... 139,336,047 122,339,936 31,730,142 15,860,363 14,270,606 8,604,399
NET ASSETS
Beginning of period ........................ 513,098,395 390,758,459 30,759,801 14,899,438 62,875,684 54,271,285
- ----------------------------------------------------------------------------------------------------------------------------------
End of period ..............................$652,434,442 $513,098,395 $62,489,943 $30,759,801 $ 77,146,290 $62,875,684
- ----------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF PERIOD ...........$ 1,061,914 $ 3,710,271 $ (9,276) $ 106,765 $ 58,216 $ 173,039
</TABLE>
<TABLE>
<CAPTION>
GE
MID-CAP
GROWTH
FUND
- ------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998
- ------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C>
Net investment income/(loss) ................ $ (108,248) $ (286,747)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions ............. (1,506,513) (1,477,789)
Net increase (decrease) in unrealized
appreciation/depreciation ................. 7,844,604 (5,051,237)
- -----------------------------------------------------------------------------------
Net increase (decrease) from operations ..... 6,229,843 (6,815,773)
- -----------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................... -- --
Class B ................................... -- --
Class C ................................... -- --
Class D ................................... -- --
Tax return of capital
Class A ................................... -- (25,589)
Class B ................................... -- (73,996)
Class C ................................... -- (1,885)
Class D ................................... -- --
Net realized gains
Class A ................................... -- (4,618,651)
Class B ................................... -- (13,413,646)
Class C ................................... -- (341,767)
Class D ................................... -- --
- -----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... -- (18,475,534)
- -----------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions .................. 6,229,843 (25,291,307)
- -----------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................... 7,666,500 2,242,341
Class B ................................... 578,919 3,303,026
Class C ................................... 1,611,695 2,724,759
Class D ................................... 192,595 749,812
Value of distributions reinvested
Class A ................................... -- 4,628,103
Class B ................................... -- 13,080,553
Class C ................................... -- 343,652
Class D ................................... -- --
Cost of shares redeemed
Class A ................................... (7,134,955) (1,094,533)
Class B ................................... (4,274,027) (8,646,813)
Class C ................................... (471,305) (662,619)
Class D ................................... (209,296) (194,710)
- -----------------------------------------------------------------------------------
Net increase (decrease) from
share transactions ......................... (2,039,874) 16,473,571
- -----------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....... 4,189,969 (8,817,736)
NET ASSETS
Beginning of period ........................... 34,347,641 43,165,377
- -----------------------------------------------------------------------------------
End of period ................................. $38,537,610 $34,347,641
- -----------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT
INCOME, END OF PERIOD ......................... $ 34,660 $ 142,908
</TABLE>
- -------------
See Notes to Financial Statements.
108
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL EUROPE
VALUE EQUITY VALUE EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD ENDED
MARCH 31, 1999 MARCH 31, 1999 MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER MARCH 31, 1999
(UNAUDITED)* (UNAUDITED)** (UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998 (UNAUDITED)***
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 25,482 $ 17,325 $ (41,036) $ 136,320 $ (61,111) $ 100,619 $ 16,010
(131,999) 37,005 1,944,351 2,517,115 1,660,339 17,619,722 (57,081)
221,507 (54,432) 11,372,693 (9,215,341) 7,614,492 (21,297,740) (342,917)
- ------------------------------------------------------------------------------------------------------------------------------------
114,990 (102) 13,276,008 (6,561,906) 9,213,720 (3,577,399) (383,988)
- ------------------------------------------------------------------------------------------------------------------------------------
-- (17,185) -- -- -- -- --
-- (6,483) -- -- -- -- --
-- (2,030) (6,483) (24,430) -- -- --
-- (338) (54,973) (90,621) (14,483) (224,494) --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- (26,117) (66,628) (150,721) (734,084) (3,380,824) --
-- (23,306) (50,765) (99,362) (38,540) (115,286) --
-- (2,408) (1,350,779) (3,436,488) (222,299) (1,110,552) --
-- (345) (749,054) (2,293,450) (673,225) (14,195,464) --
- ------------------------------------------------------------------------------------------------------------------------------------
-- (78,212) (2,278,682) (6,095,072) (1,682,631) (19,026,620) --
114,990 (78,314) 10,997,326 (12,656,978) 7,531,089 (22,604,019) (383,988)
- ------------------------------------------------------------------------------------------------------------------------------------
100,010 21,913,458 822,954 621,999 6,995,485 15,760,753 100,000
106,300 18,298,044 200,679 440,879 228,369 917,197 102,000
298,086 1,844,581 2,083,477 3,978,342 1,703,058 1,841,361 266,271
10,000,257 104,860 2,567,490 7,111,585 73,532,698 52,750,459 10,000,493
-- 43,277 66,645 150,788 736,007 3,380,724 --
-- 29,257 50,665 99,333 38,196 106,474 --
-- 4,438 1,302,707 3,342,507 215,579 1,074,389 --
-- 683 804,025 2,384,063 687,713 14,343,411 --
-- (12,079,406) (358,921) (522,162) (4,026,239) (14,299,215) --
-- (11,056,889) (191,104) (178,609) (99,179) (306,317) --
-- (11) (3,993,044) (6,992,560) (1,618,704) (1,101,264) (1,481)
-- (73,678) (1,724,265) (12,087,216) (72,406,186) (111,605,714) --
- ------------------------------------------------------------------------------------------------------------------------------------
10,504,653 19,028,614 1,631,308 (1,651,051) 5,986,797 (37,137,742) 10,467,283
- ------------------------------------------------------------------------------------------------------------------------------------
10,619,643 18,950,300 12,628,634 (14,308,029) 13,517,886 (59,741,761) 10,083,295
-- -- 45,855,125 60,163,154 39,233,545 98,975,306 --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10,619,643 $ 18,950,300 $58,483,759 $45,855,125 $52,751,431 $39,233,545 $ 10,083,295
- ------------------------------------------------------------------------------------------------------------------------------------
$ 25,482 $ (8,711) $ (194,432) $ (91,940) $ (253,209) $ (177,615) $ 16,010
</TABLE>
<TABLE>
<CAPTION>
GE
STRATEGIC
INVESTMENT
FUND
- -------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998
- -------------------------------------------
<S> <C> <C>
$ 1,616,255 $ 3,327,326
4,956,974 12,605,986
16,210,442 (9,993,051)
- -------------------------------------------
22,783,671 5,940,261
- -------------------------------------------
(638,181) (814,947)
(195,368) (111,753)
(1,188,354) (927,488)
(1,334,185) (936,622)
-- --
-- --
-- --
-- --
(2,732,777) (1,344,753)
(1,006,283) (230,774)
(4,382,836) (1,380,557)
(4,474,829) (1,269,011)
- -------------------------------------------
(15,952,813) (7,015,905)
6,830,858 (1,075,644)
- -------------------------------------------
4,522,254 13,892,894
1,853,814 6,179,827
11,710,204 13,331,124
9,692,859 35,615,406
3,365,912 2,157,656
1,124,208 331,559
5,427,453 2,232,380
5,809,005 2,205,624
(5,542,141) (22,533,547)
(585,358) (984,281)
(4,293,853) (6,507,447)
(5,168,009) (23,511,013)
- -------------------------------------------
27,916,348 22,410,182
- -------------------------------------------
34,747,206 21,334,538
145,190,367 123,855,829
- -------------------------------------------
$179,937,573 $145,190,367
- -------------------------------------------
$ 837,427 $ 2,557,260
<FN>
* For the period December 31, 1998 (inception) through March 31, 1999.
** For the period September 30, 1998 (inception) through March 31, 1999.
*** For the period January 29, 1999 (inception) through March 31, 1999.
</FN>
</TABLE>
109
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (CONTINUED)
CHANGES IN FUND SHARES
<TABLE>
<CAPTION>
GE GE
U.S. PREMIER GROWTH
EQUITY EQUITY
FUND FUND
- ----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998
- ----------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C>
Shares sold by subscription ............... 795,699 1,344,147 243,413 262,567
Issued for distributions reinvested ....... 295,636 223,670 10,840 1,793
Shares redeemed ........................... (499,095) (751,831) (46,455) (43,151)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .... 592,240 815,986 207,798 221,209
- ----------------------------------------------------------------------------------------------------
CLASS B:
Shares sold by subscription ............... 185,039 324,472 125,689 82,590
Issued for distributions reinvested ....... 69,400 52,027 3,080 643
Shares redeemed ........................... (61,866) (94,240) (6,686) (4,985)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .... 192,573 282,259 122,083 78,248
- ----------------------------------------------------------------------------------------------------
CLASS C:
Shares sold by subscription ............... 790,368 1,354,049 485,758 404,093
Issued for distributions reinvested ....... 416,072 349,552 24,527 7,816
Shares redeemed ........................... (422,718) (595,640) (63,756) (72,985)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .... 783,722 1,107,961 446,529 338,924
- ----------------------------------------------------------------------------------------------------
CLASS D:
Shares sold by subscription ............... 1,221,753 4,892,297 711,585 66,412
Issued for distributions reinvested ....... 936,717 774,086 11,802 5,965
Shares redeemed ........................... (1,903,137) (2,895,887) (657,977) (16,534)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .... 255,333 2,770,496 65,410 55,843
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
VALUE MID-CAP
EQUITY GROWTH
FUND FUND
- ---------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998
- ---------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C>
Shares sold by subscription .............. 1,131,480 750,562 780,833 226,004
Issued for distributions reinvested ...... 57,746 269,272 -- 489,229
Shares redeemed .......................... (1,053,081) (189,310) (725,008) (107,318)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ... 136,145 830,524 55,825 607,915
- ---------------------------------------------------------------------------------------------------
CLASS B:
Shares sold by subscription .............. 218,457 769,421 65,103 331,551
Issued for distributions reinvested ...... 158,126 1,461,859 -- 1,459,769
Shares redeemed .......................... (529,457) (1,076,407) (490,025) (852,340)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ... (152,874) 1,154,873 (424,922) 938,980
- ---------------------------------------------------------------------------------------------------
CLASS C:
Shares sold by subscription .............. 191,062 245,325 285,319 226,192
Issued for distributions reinvested ...... 10,838 13,339 -- 36,751
Shares redeemed .......................... (225,286) (25,716) (911,958) (62,200)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ... (23,386) 232,948 (626,639) 200,743
- ---------------------------------------------------------------------------------------------------
CLASS D:
Shares sold by subscription .............. 48,495 204,968 19,760 72,759
Issued for distributions reinvested ...... 6,499 -- -- --
Shares redeemed .......................... (51,955) (52,763) (21,349) (18,737)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ... 3,039 152,205 (1,589) 54,022
- ---------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through March 31, 1999.
** For the period September 30, 1998 (inception) through March 31, 1999.
*** For the period January 29, 1999 (inception) through March 31, 1999.
</FN>
</TABLE>
- ------------
See Notes to Financial Statements.
110
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL EUROPE
VALUE EQUITY VALUE EQUITY EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD ENDED
MARCH 31, 1999 MARCH 31, 1999 MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER MARCH 31, 1999
(UNAUDITED)* (UNAUDITED)** (UNAUDITED) 30, 1998 (UNAUDITED) 30, 1999 (UNAUDITED)***
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
10,001 2,008,565 34,963 27,204 422,867 849,142 10,000
-- 3,803 3,032 7,432 44,744 204,348 --
-- (1,067,594) (15,592) (24,111) (242,615) (784,389) --
- ---------------------------------------------------------------------------------------------------------------------------------
10,001 944,774 22,403 10,525 224,996 269,101 10,000
- ---------------------------------------------------------------------------------------------------------------------------------
10,627 1,679,712 9,006 18,635 13,876 52,960 10,211
-- 2,571 2,351 4,967 2,374 6,550 --
-- (974,007) (8,600) (8,038) (6,041) (17,677) --
- ---------------------------------------------------------------------------------------------------------------------------------
10,627 708,276 2,757 15,564 10,209 41,833 10,211
- ---------------------------------------------------------------------------------------------------------------------------------
30,674 171,212 90,716 169,269 100,682 99,589 27,077
-- 390 58,628 163,280 12,987 64,512 --
-- (6,986) (178,138) (307,386) (97,344) (61,675) (156)
- ---------------------------------------------------------------------------------------------------------------------------------
30,674 164,616 (28,794) 25,163 16,325 102,426 26,921
- ---------------------------------------------------------------------------------------------------------------------------------
1,000,026 10,486 112,188 304,658 4,387,658 2,982,399 1,000,052
-- 60 36,266 116,751 41,255 858,464 --
-- (1) (75,878) (570,743) (4,276,084) (6,505,018) --
- ---------------------------------------------------------------------------------------------------------------------------------
1,000,026 10,545 72,576 (149,334) 152,829 (2,664,155) 1,000,052
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
EMERGING STRATEGIC
MARKETS INVESTMENT
FUND FUND
- ------------------------------------------------------------
FOR THE PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1999 SEPTEMBER
(UNAUDITED)*** (UNAUDITED) 30, 1998
- ------------------------------------------------------------
<S> <C> <C> <C>
10,000 182,650 566,785
-- 142,744 94,758
-- (224,113) (955,787)
- --------------------------------------------------------------
10,000 101,281 (294,244)
- --------------------------------------------------------------
10,023 77,036 257,968
-- 48,395 14,710
-- (24,261) (40,768)
- -------------------------------------------------------------
10,023 101,170 231,910
- -------------------------------------------------------------
10,825 473,546 540,921
-- 229,489 97,714
(50) (173,613) (267,511)
- --------------------------------------------------------------
10,775 529,422 371,124
- --------------------------------------------------------------
1,000,000 393,089 1,414,703
-- 245,520 96,568
-- (209,558) (940,177)
- --------------------------------------------------------------
1,000,000 429,051 571,094
- --------------------------------------------------------------
</TABLE>
111
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
GE GE
FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998
- ------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 3,271,858 $ 5,068,096 $ 10,482,850 $28,543,678
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 235,918 1,914,232 456,070 6,729,401
Net increase (decrease) in unrealized
appreciation/depreciation (3,907,297) 1,975,703 (16,775,723) 13,323,472
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations (399,521) 8,958,031 (5,836,803) 48,596,551
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (940,904) (1,446,282) (839,276) (1,482,314)
Class B (45,170) (74,005) (11,091,787) (24,576,037)
Class C (1,394,069) (2,279,994) (86,427) (19,806)
Class D (943,503) (1,154,520) -- --
In excess of net investment income
Class A -- (48,982) -- (137,534)
Class B -- (2,506) -- (2,280,240)
Class C -- (77,218) -- (1,838)
Class D -- (39,101) -- --
Net realized gains
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class D -- -- -- --
- ------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (3,323,646) (5,122,608) (12,017,490) (28,497,769)
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions (3,723,167) 3,835,423 (17,854,293) 20,098,782
- ------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A 12,438,226 24,826,414 3,107,668 5,748,451
Class B 610,316 454,176 1,007,626 1,975,186
Class C 16,125,011 18,055,834 5,333,972 1,072,103
Class D 19,650,649 22,825,479 -- --
Value of distributions reinvested
Class A 919,598 1,490,154 538,923 1,024,680
Class B 38,413 66,019 5,909,216 14,233,382
Class C 1,128,544 1,972,220 73,034 15,945
Class D 924,178 1,189,393 -- --
Cost of shares redeemed
Class A (8,185,678) (10,689,227) (2,233,097) (7,282,931)
Class B (262,363) (130,035) (46,987,782) (158,884,041)
Class C (7,065,688) (7,139,096) (707,634) (144,030)
Class D (11,388,276) (11,100,710) -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions 24,932,930 41,820,621 (33,958,074) (142,241,255)
- ------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 21,209,763 45,656,044 (51,812,367) (122,142,473)
NET ASSETS
Beginning of period 116,999,894 71,343,850 425,187,893 547,330,366
- ------------------------------------------------------------------------------------------------------------
End of period $138,209,657 $116,999,894 $373,375,526 $425,187,893
- ------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF PERIOD $ 252,440 $ 304,228 $ 517,116 $ 2,051,756
</TABLE>
- ------------
See Notes to Financial Statements.
112
<PAGE>
<TABLE>
<CAPTION>
GE GE GE
SHORT-TERM GE HIGH MONEY
GOVERNMENT TAX-EXEMPT YIELD MARKET
FUND FUND FUND FUND**
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998 (UNAUDITED)* (UNAUDITED) 30, 1998
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 618,747 $1,317,610 $ 587,772 $ 1,103,940 $ 333,523 $ 3,846,676 $ 6,311,997
165,547 208,995 114,704 314,282 2,411 -- 491
(477,309) 242,914 (584,069) 87,364 76,320 -- --
- -----------------------------------------------------------------------------------------------------------------------------
306,985 1,769,519 118,407 1,505,586 412,254 3,846,676 6,312,488
- -----------------------------------------------------------------------------------------------------------------------------
(213,456) (439,601) (120,802) (305,754) (1,515) -- --
(16,921) (46,925) (161,338) (359,269) (1,394) -- --
(212,628) (385,296) (305,062) (404,359) (5,826) (3,846,676) (6,311,997)
(180,391) (476,763) (572) (35,569) (324,788) -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
(38,417) (12,916) -- -- -- -- --
(3,579) (1,764) -- -- -- -- --
(37,788) (11,323) -- -- -- -- --
(32,682) (13,601) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
(735,862) (1,388,189) (587,774) (1,104,951) (333,523) (3,846,676) (6,311,997)
(428,877) 381,330 (469,367) 400,635 78,731 -- 491
- -----------------------------------------------------------------------------------------------------------------------------
1,877,454 1,913,508 242,802 323,984 100,010 -- --
258,818 139,431 371,190 519,672 100,010 -- --
2,670,123 3,768,403 9,491,201 3,461,252 948,856 226,709,282 249,769,855
394,696 2,038,639 -- 2 20,000,010 -- --
242,387 447,377 15,448 27,838 1,402 -- --
17,244 39,774 111,983 253,474 1,291 -- --
227,403 364,028 256,634 337,596 4,682 3,632,470 6,056,055
212,060 490,364 563 26,477 300,480 -- --
(1,308,131) (874,765) (23,076) (11,220,260) -- -- --
(374,194) (327,201) (974,701) (2,153,769) -- -- --
(1,470,163) (1,369,667) (791,625) (1,212,139) -- (212,114,174) (216,190,647)
(5,862,298) (934,445) (3) (3,234,639) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
(3,114,601) 5,695,446 8,700,416 (12,870,512) 21,456,741 18,227,578 39,635,263
- -----------------------------------------------------------------------------------------------------------------------------
(3,543,478) 6,076,776 8,231,049 (12,469,877) 21,535,472 18,227,578 39,635,754
27,441,602 21,364,826 25,453,601 37,923,478 -- 153,665,298 114,029,544
- -----------------------------------------------------------------------------------------------------------------------------
$23,898,124 $27,441,602 $33,684,650 $25,453,601 $21,535,472 $171,892,876 $153,665,298
- -----------------------------------------------------------------------------------------------------------------------------
$ 11,384 $ 16,033 $ 76,822 $ 76,824 -- $ 60,209 $ 60,209
<FN>
- ----------
* For the period December 31, 1998 (inception) through March 31, 1999.
** GE Money Market Fund is a no load Fund offering only one class of shares
to all investors.
</FN>
</TABLE>
113
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (CONTINUED)
CHANGES IN FUND SHARES
<TABLE>
<CAPTION>
GE GE
FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998
- ------------------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C>
Shares sold by subscription 1,005,402 2,027,068 355,771 666,957
Issued for distributions reinvested 74,882 121,804 62,282 118,722
Shares redeemed (662,664) (874,272) (257,119) (843,431)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 417,620 1,274,600 160,934 (57,752)
- ------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold by subscription 49,435 36,886 115,260 228,535
Issued for distributions reinvested 3,123 5,393 679,365 1,645,646
Shares redeemed (21,353) (10,610) (5,372,087) (18,393,279)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 31,205 31,669 (4,577,462) (16,519,098)
- ------------------------------------------------------------------------------------------------------------
CLASS C:
Shares sold by subscription 1,307,250 1,476,623 525,516 106,023
Issued for distributions reinvested 91,801 161,153 7,221 1,575
Shares redeemed (572,093) (583,721) (70,049) (14,221)
- ------------------------------------------------------------------------------------------------------------
Net increase in fund shares 826,958 1,054,055 462,688 93,377
- ------------------------------------------------------------------------------------------------------------
CLASS D:
Shares sold by subscription 1,592,403 1,861,485 -- --
Issued for distributions reinvested 75,219 97,133 -- --
Shares redeemed (923,405) (907,273) -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 744,217 1,051,345 -- --
- ------------------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through March 31, 1999.
** GE Money Market Fund is a no load Fund offering only one class of shares to
all investors.
</FN>
</TABLE>
114
<PAGE>
<TABLE>
<CAPTION>
GE GE GE
SHORT-TERM GE HIGH MONEY
GOVERNMENT TAX-EXEMPT YIELD MARKET
FUND FUND FUND FUND**
- ---------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 SEPTEMBER MARCH 31, 1999 MARCH 31, 1999 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998 (UNAUDITED)* (UNAUDITED) 30, 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
157,772 161,494 20,699 27,965 10,001 -- --
20,425 37,766 1,316 2,387 141 -- --
(110,373) (73,896) (1,966) (968,784) -- -- --
- ---------------------------------------------------------------------------------------------------------------
67,824 125,364 20,049 (938,432) 10,142 -- --
- ---------------------------------------------------------------------------------------------------------------
21,788 11,782 31,548 44,630 10,001 -- --
1,453 3,358 9,543 21,736 130 -- --
(31,462) (27,658) (82,870) (184,662) -- -- --
- ---------------------------------------------------------------------------------------------------------------
(8,221) (12,518) (41,779) (118,296) 10,131 -- --
- ---------------------------------------------------------------------------------------------------------------
224,193 318,037 772,973 285,575 95,866 226,709,282 249,769,855
19,149 30,702 21,043 27,838 469 3,632,470 6,056,055
(123,714) (115,358) (64,843) (99,769) -- (212,114,174) (216,190,647)
- ---------------------------------------------------------------------------------------------------------------
119,628 233,381 729,173 213,644 96,335 18,227,578 39,635,263
- ---------------------------------------------------------------------------------------------------------------
33,238 172,114 -- -- 2,000,001 -- --
17,862 41,521 46 2,197 30,173 -- --
(493,674) (78,863) -- (266,126) -- -- --
- ---------------------------------------------------------------------------------------------------------------
(442,574) 134,772 46 (263,929) 2,030,174 -- --
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
1. ORGANIZATION OF THE FUNDS
GE Funds (the "Trust") is registered under the Investment Company Act of 1940,
as amended, (the "1940 Act") 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 eighteen
investment portfolios (each a "Fund" and collectively the "Funds") only
seventeen of which are currently being offered, as follows: GE U.S. Equity Fund,
GE Premier Growth Equity Fund, GE Value Equity Fund, GE Mid-Cap Growth Fund, GE
Mid-Cap Growth Fund, GE Mid-Cap Value Equity Fund, GE Small-Cap Value Equity
Fund, GE Global Equity Fund, GE International Equity Fund, GE Europe Equity
Fund, GE Emerging Markets Fund, GE Strategic Investment Fund, GE Fixed Income
Fund, GE Government Securities Fund, GE Short-Term Government Fund, GE
Tax-Exempt Fund, GE High Yield Fund and GE Money Market Fund. The Funds (except
GE Money Market Fund) are presently authorized to issue four classes of shares.
The commencement dates of the Funds were as follows:
FUND CLASS A CLASS B CLASS C CLASS D
- -----------------------------------------------------------------
GE U.S. 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 VALUE
EQUITY 9/8/1993 9/8/1993 10/2/1997 1/5/1998
- -----------------------------------------------------------------
GE MID-CAP
GROWTH 9/8/1993 9/8/1993 10/2/1997 1/5/1998
- -----------------------------------------------------------------
GE MID-CAP
VALUE EQUITY 12/31/1998 12/31/1998 12/31/1998 12/31/1998
- -----------------------------------------------------------------
GE SMALL-CAP
VALUE EQUITY 9/30/1998 9/30/1998 9/30/1998 9/30/1998
- -----------------------------------------------------------------
GE GLOBAL EQUITY 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- -----------------------------------------------------------------
GE INTERNATIONAL
EQUITY 3/2/1994 3/2/1994 3/2/1994 3/2/1994
- -----------------------------------------------------------------
GE EUROPE EQUITY 1/29/1999 1/29/1999 1/29/1999 1/29/1999
- -----------------------------------------------------------------
GE EMERGING
MARKETS 1/29/1999 1/29/1999 1/29/1999 1/29/1999
- -----------------------------------------------------------------
GE STRATEGIC
INVESTMENT 1/1/1994 12/22/1993 2/22/1993 11/29/1993
- -----------------------------------------------------------------
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 --
- -----------------------------------------------------------------
- -----------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS D
- -----------------------------------------------------------------
GE SHORT-TERM
GOVERNMENT 3/2/1994 3/2/1994 3/2/1994 3/2/1994
- -----------------------------------------------------------------
GE TAX-EXEMPT 9/8/1993 9/8/1993 9/26/1997 9/26/1997
- -----------------------------------------------------------------
GE HIGH YIELD 12/31/1998 12/31/1998 12/31/1998 12/31/1998
- -----------------------------------------------------------------
GE MONEY
MARKET n/a n/a n/a n/a
- -----------------------------------------------------------------
The GE Money Market Fund commenced operations on February 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 U.S. Equity Fund GE Fixed GE Short-Term
Income Fund Government Fund
GE Premier Growth GE Government
Equity Fund Securities Fund
GE Value Equity Fund GE Tax-Exempt Fund
GE Mid-Cap Growth Fund GE High Yield Fund
GEMid-Cap Value
Equity Fund
GE Small-Cap Value Fund
GE Global Equity Fund
GE International Equity Fund
GE Europe Equity Fund
GE Emerging Markets Fund
GE Strategic Investment Fund
There is no front-end sales load imposed on purchases of Class A shares of $1
million or more.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
MAXIMUM CONTINGENT DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS OF CLASS B
SHARES (AS A PERCENTAGE OF REDEMPTION PROCEEDS):
3.00% 4.00%
- --------------------------------------------------------------------------------
GE Fixed Income Fund GE U.S. Equity Fund
GE Government Securities Fund GE Premier Growth Equity Fund
GE Short-Term Government Fund GE Value Equity Fund
GE Tax-Exempt Fund GE Mid-Cap Growth Fund
GE High Yield Fund GE Mid-Cap Value Equity Fund
GE Small-Cap Value Equity Fund
GE Global Equity Fund
GE International Equity Fund
GE Europe Equity Fund
GE Emerging Markets 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 on
September 26, 1997 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.
A maximum contingent deferred sales charge of 1.00% is charged on redemptions
of Class A shares that were not subject to a front-end sales load upon purchase.
No front or back-end sales charges, redemption fees or exchange fees are
assessed by the Trust with respect to Class C shares, Class D shares or shares
of GE Money Market Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, but are
expected to be immaterial.
The following summarizes the significant accounting policies of the Trust:
SECURITY VALUATION AND TRANSACTIONS
Securities for which exchange quotations are readily available are valued at the
last sale price, or if no sales occurred on that day, at the last quoted bid
price. Certain fixed income securities are valued by a dealer or by a pricing
service based upon a computerized matrix system, which considers market
transactions and dealer supplied valuations. Valuations for municipal bonds are
based on prices obtained from a qualified municipal bond pricing service; prices
represent the mean of the 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.
In accordance with Rule 2a-7 of the 1940 Act, GE Money Market Fund values
securities initially at cost and, thereafter, securities are assumed to have a
constant amortization to maturity of any discount or premium. Amortized cost
approximates fair value.
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
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.
Each Fund's income, expenses (other than advisory, administration, and
distribution fees which are accrued by each applicable class based upon
contractual rates specified to that class) and realized and unrealized gains and
losses are allocated proportionally each day among the classes based upon the
relative net assets of each class. During the year the funds changed their
method for accruing blue sky fees and transfer agent fees to be consistent with
the other operating expenses. Previously the funds accrued such expenses on a
class specific basis.
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in 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 the 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 or unrealized gain or loss from investments. Reported net realized
exchange gains or losses from foreign currency transactions represent gains or
losses on sales 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 foreign investment income and
withholding taxes accrued on the Funds' books and the U.S. dollar equivalent of
the amounts actually received or paid. Net unrealized foreign exchange gains and
losses arising from changes in the value of assets and liabilities as a result
of changes in foreign exchange rates are included as increases or decreases in
unrealized appreciation/depreciation on foreign currency related transactions.
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 realized 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, 1998, the following Funds have capital loss carryovers as
indicated below. The capital loss carryover of the GE Tax-Exempt Fund includes a
capital loss carryover of $42,651 acquired as a result of the reorganization
with the Investors Trust Tax Free Fund. The capital loss carryover is 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 Fixed Income Fund $ 684,519 2003
38,636 2004
445,270 2005
GE Government Securities Fund 80,657,745 2002
107,525,597 2003
1,748,819 2004
GE Tax-Exempt Fund 428,324 2004
GE Money Market Fund 3,153 2003
5,688 2005
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
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 at October 31, 1997 as follows:
FUND CURRENCY CAPITAL
- ------------------------------------------------------------------------
GE Mid-Cap Growth Fund $ 57 $1,601,458
GE Global Equity Fund 134,986 --
GE International Equity Fund 235,892 --
GE Strategic Investment Fund 57,568 --
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 becomes available. Interest income is recorded on the accrual basis.
All discounts and premiums on taxable bonds and discounts and premiums on
tax-exempt bonds are amortized to call or maturity date, whichever is shorter,
using the effective yield method. For tax-exempt bonds purchased on or after May
1, 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 directly 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 GE Investment Management
Incorporated ("GEIM"), investment adviser to the Funds and wholly-owned
subsidiary of General Electric Company, and reimbursed by the Funds.
DISTRIBUTIONS TO SHAREHOLDERS
GE Fixed Income Fund, GE Government Securities Fund, GE Short-Term Government
Fund, GE Tax-Exempt Fund, GE High Yield Fund and GE Money Market Fund declare
investment income dividends daily and pay them monthly. All other Funds declare
and pay dividends from investment income annually. All Funds declare and pay net
realized capital gains distributions annually. The character of income and gains
to be distributed is 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, and
losses deferred due to wash sale transactions. 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. These
reclassifications have no impact on net investment income, realized gains or
losses, or net asset value of the Funds. 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 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.
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS
The Funds may purchase or sell securities on a when-issued and forward
commitment basis. These transactions are arrangements in which the Funds
purchase and sell securities with payment and delivery scheduled for a future
time. Settlement dates may be a month or more after entering into these
transactions, and the purchase of securities on a when-issued or forward
commitment basis involves a risk of loss if the value of the underlying security
declines prior to the settlement date. The price of the underlying securities
and the date when these 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 Funds to
subsequently invest at less advantageous prices and yields. In connection with
such purchases, the Funds maintain cash or liquid assets in an amount equal to
purchase commitments for such underlying securities until settlement date and
for sales commitments the Funds maintain equivalent deliverable securities as
"cover" for the transaction. Unsettled commitments are valued at current market
value of the underlying security. Daily fluctuations in the value of such
contracts are recorded as unrealized gains or losses. The Funds will not enter
into such agreements for the purpose of investment leverage.
FOREIGN SECURITIES
All Funds may invest in foreign securities, subject to certain limitations.
There are certain additional risks involved when investing in foreign securities
(including those denominated in foreign currencies) that are not inherent in
domestic securities. These risks may involve foreign currency exchange rate
fluctuations; changes in foreign exchange control regulations; application of
foreign tax laws, including withholding taxes; lack of uniform accounting,
auditing and financial reporting standards; and increased uncertainty about
changes in governmental administration or economic or monetary policy (in the
United States or abroad). The Funds may be subject to restrictions on the
repatriation or foreign currencies and may be limited on the use or removal of
its assets. Additionally, investments in developing or emerging markets involve
increased uncertainty about adverse political and economic developments as
described above. The ability to hedge currency risk in these markets may be
limited, and therefore, investments in these markets may be exposed to currency
devaluation.
FORWARD FOREIGN CURRENCY CONTRACTS
Certain Funds may enter into forward foreign currency contracts to facilitate
transactions in foreign denominated securities and to manage the Fund's currency
exposure. A forward foreign currency contract is an agreement between two
parties to buy or sell currency at a set price on a future date. Contracts to
sell are generally used to hedge the Fund's 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 a previous
contract to sell. Currency exposure exists during the period that a foreign
denominated investment is held or during a period between the trade date and
settlement date of an investment which is purchased or sold. These contracts
involve market risk in excess of the unrealized gain or loss reflected in the
fund's Statement of Assets and Liabilities. This amount represents the aggregate
exposure to each currency the Fund has acquired or hedged through currency
contracts at period end. Losses may arise from changes in the value of foreign
currency or if the counterparties do not perform under the contracts' terms. An
open contract is marked-to market daily and the change in the market value is
recorded by the Fund as an unrealized gain or loss. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value at the time it was opened and the value at the time it was closed. No Fund
may enter into forward foreign currency transactions for speculative purposes.
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
REPURCHASE AGREEMENTS
Each of the Funds may enter into repurchase agreements. The Funds' custodian
takes possession of the collateral pledged for investments in repurchase
agreements on behalf of the Funds. The Funds 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. There is
the risk that the collateral may be insufficient to meet the obligation in the
event of default.
FINANCIAL FUTURES CONTRACTS AND OPTIONS
Each Fund, other than GE Small-Cap Value Equity Fund and GE Money Market Fund,
may invest in financial futures contracts and each Fund, other than GE Money
Market Fund, may purchase and write options, subject to certain limitations. 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, (4) when such transactions are an
economically appropriate way to reduce risks inherent in the management of a
Fund, and (5) for non-hedging purposes such as seeking additional income or
otherwise seeking to increase total return. Buying futures, writing puts and
buying calls tend to increase a Fund's exposure to the underlying instrument.
Selling futures, buying puts and writing calls tend to decrease a Fund's
exposure to the underlying instrument, or hedge other Fund investments. A Fund
will not 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" and "Put Options" 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 and currency. Losses also may arise if there is an illiquid
secondary market for the instruments, or an inability of counterparties to
perform.
Upon entering into a financial futures contract, the Funds are required to
deposit with the Funds' custodian in a segregated account, 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 Funds 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 Funds
recognize a realized gain or loss when the futures contract is closed. The Funds
will realize a gain or loss upon the expiration or closing of an option
transaction. When an option is exercised, the proceeds on the sales of a
security as a result of exercising a written call option, the purchase cost of a
security acquired from exercising a written put option, or the proceeds on the
sale of the security from exercising a purchased put option or cost of the
security acquired from exercising a purchased call option is adjusted by the
amount of original premium received or paid.
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
SECURITY LENDING
The Funds may loan securities to brokers, dealers, and financial institutions
determined by GEIM to be creditworthy, up to a maximum of 30% (5% in the case of
the GE Tax-Exempt Fund) 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 their loaned securities and of securities in which cash
collateral is invested net of any rebate during the term of the loan. In the
event the counterparty (borrower) does not meet its contracted obligation to
return the securities, the Fund may be exposed to the risk of loss of
reacquiring the loaned securities at prevailing market prices using the proceeds
of the sale of the collateral.
3. FEES AND COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION FEES
Compensation of GEIM for investment advisory and administrative services, is
paid monthly based on the average daily net assets of each Fund. Until further
notice, GEIM has agreed to reduce other operating expenses (exclusive of
advisory, administration and distribution fees) for each Fund as stated in the
following schedule:
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND LIMITATION OF OTHER
ADMINISTRATION FEES* OPERATING EXPENSES*
- -------------------------------------------------------------------
GE U.S. Equity Fund .40% .22%
GE Premier Growth Equity Fund .60% .35%
GE Value Equity Fund .55% .29%
GE Mid-Cap Growth Fund .60% .30%
GE Mid-Cap Value Equity Fund .65% .25%
GE Small-Cap Value Equity Fund .70% .20%
GE Global Equity Fund .75% .35%
GE International Equity Fund .80% .30%
GE Europe Equity Fund .90% .30%
GE Emerging Markets Fund 1.05% .30%
GE Strategic Investment Fund .35% .30%
GE Fixed Income Fund .35% .20%
GE Government Securities Fund .40% .20%
GE Short-Term Government Fund .30% .50%
GE Tax-Exempt Fund .35% .25%
GE High Yield Fund .50% .20%
GE Money Market Fund .25% .25%
*AFTER REIMBURSEMENT, IF ANY.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES
The Funds have adopted a Shareholder Servicing and Distribution Plan ("the
Plan") pursuant to Rule 12b-1 under the 1940 Act with respect to each Fund
except the GE Money Market Fund. Each Fund pays GE Investment Distributors, Inc.
("GEID"), a wholly-owned subsidiary of GE Financial Assurance Holdings, Inc. (an
indirect wholly-owned subsidiary of General Electric Company) 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
shares are not subject to a 12b-1 fee plan.
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
GEID has agreed that 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 to the .50% distribution and/or shareholder services fees
attributable to Class A shares.
TRUSTEES COMPENSATION
The Funds pay no compensation to their Trustees who are officers or employees of
GEIM or its affiliates. Trustees who are not such officers or employees receive
an annual fee of $10,000 and an additional fee of $500 per Trustees' meeting
attended in person.
OTHER
For the period ended March 31, 1999, the Trust was informed that GEID acting as
underwriter received net commissions of $12,893 from the sale of Class A shares
and $156,753 in contingent deferred sales charges from redemptions of Class A
and Class B shares.
4. SUB-ADVISORY FEES
Pursuant to an investment sub-advisory agreement with GEIM, effective September
27, 1997, Brown Brothers Harriman & Co. ("Brown Brothers") is the investment
sub-adviser to the GE Tax-Exempt Fund.
Pursuant to an investment sub-advisory agreement with GEIM, effective June 29,
1998, Palisade Capital Management, LLC ("Palisade") became the sub-advisor to
the GE Small-Cap Value Equity Fund. The GE Small-Cap Value Equity Fund is
managed by an investment advisory committee composed of the following members:
Jack Feiler, Martin L. Berman, Steven E. Berman and Richard Meisenberg.
Pursuant to an investment sub-advisory agreement with GEIM, effective December
30, 1998, NWQ Investment Management Company ("NWQ") became the sub-adviser to
the GE Mid-Cap Value Equity Fund.
Pursuant to an investment sub-advisory agreement with GEIM, effective December
30, 1998, Miller Anderson & Sherrerd, LLP ("MAS") became the sub-adviser to the
GE High Yield Fund.
Brown Brothers, Mr. Feiler, NWQ and MAS are responsible for the day-to-day
portfolio management of the assets of the GE Tax-Exempt Fund, the GE Small-Cap
Value Equity Fund, the GE Mid-Cap Value Equity Fund and the GE High Yield Fund,
respectively, 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.
For their services, GEIM pays Brown Brothers, Palisade, NWQ and MAS monthly
sub-advisory fees which are calculated as a percentage of the average daily net
assets of the respective funds. The following annual rates apply for each of the
fund's average daily net assets:
GE GE SMALL-CAP GE MID-CAP GE HIGH
TAX-EXEMPT VALUE EQUITY VALUE EQUITY YIELD
FUND FUND FUND FUND
- -----------------------------------------------------------------------
First $25 million .20% .45% .45% .375%
Next $25 million .175% .40% .45% .375%
Next $25 million .15% .40% .375% .375%
Next $25 million .15% .375% .375% .375%
Next $75 million .125% .375% .375% .375%
Next $25 million .125% .35% .375% .375%
Amount in excess
of $200 million .125% .35% .375% .375%
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at March 31, 1999, were as follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
- --------------------------------------------------------------
GE U.S. Equity Fund $152,675,180 $10,067,508 $142,607,672
GE Premier Growth
Equity Fund 14,114,524 1,278,735 12,835,789
GE Value Equity Fund 18,920,667 2,141,832 16,778,835
GE Mid-Cap
Growth Fund 6,724,460 2,660,029 4,064,431
GE Mid-Cap Value
Equity Fund 926,634 705,127 221,507
GE Small-Cap Value
Equity Fund 885,634 940,066 (54,432)
GE Global Equity Fund 13,117,539 2,173,577 10,943,962
GE International
Equity Fund 6,952,788 2,441,705 4,511,083
GE Europe Equity Fund 435,262 778,624 (343,362)
GE Emerging
Markets Fund 1,524,292 344,191 1,180,101
GE Strategic
Investment Fund 34,826,139 2,808,488 32,017,651
GE Fixed Income Fund 706,977 1,700,233 (993,256)
GE Government
Securities Fund 12,202,724 7,844,228 4,358,496
GE Short-Term
Government Fund 44,874 107,728 (62,854)
GE Tax-Exempt Fund 958,839 101,296 857,543
GE High Yield Fund 488,980 428,447 60,533
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at March 31, 1999.
6. OPTIONS
During the period ended March 31, 1999, the following option contracts were
written:
GE STRATEGIC GE FIXED
INVESTMENT FUND INCOME FUND
- ------------------------------------------------------------------
NUMBER NUMBER
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
- ------------------------------------------------------------------
Balance as of
September 30, 19982,940 $11,771 6,370 $ 25,412
Written 15,208 57,079 32,316 121,567
Closed and Expired(12,120) (48,251) (26,015) (103,593)
Exercised (2,700) (11,023) (5,765) (23,509)
- ------------------------------------------------------------------
Balance as of
March 31, 1999 3,328 $ 9,576 6,906 $ 19,877
- ------------------------------------------------------------------
GE GOVERNMENT SECURITIES FUND
- ------------------------------------------------------------------
NUMBER
OF CONTRACTS PREMIUM
- ------------------------------------------------------------------
Balance as of September 30, 1998 14,900 $ 53,984
Written 106,402 383,231
Closed and Expired (78,425) (287,604)
Exercised (21,345) (87,595)
- ------------------------------------------------------------------
Balance as of March 31, 1999 21,532 $ 62,016
- ------------------------------------------------------------------
124
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
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, 1999, were as follows:
PURCHASES SALES
- ----------------------------------------------------------------------
GE U.S. Equity Fund $185,762,043 $189,064,788
GE Premier Growth
Equity Fund 24,983,038 6,747,514
GE Value Equity Fund 12,785,356 12,220,454
GE Mid-Cap Growth Fund 14,552,111 16,084,344
GE Mid-Cap Value
Equity Fund 10,619,297 380,873
GE Small-Cap Value
Equity Fund 30,701,535 12,113,133
GE Global Equity Fund 15,836,316 14,181,671
GE International
Equity Fund 18,063,636 13,564,987
GE Europe Equity Fund 11,351,317 1,078,593
GE Emerging Markets Fund 11,760,408 2,246,193
GE Strategic
Investment Fund 36,272,922 26,321,190
GE Fixed Income Fund 27,248,649 11,795,372
GE Government
Securities Fund 14,709,447 3,292,978
GE Short-Term
Government Fund 3,206,031 1,810,755
GE Tax-Exempt Fund 13,681,902 5,671,745
GE High Yield Fund 20,682,490 983,862
The cost of purchases and the proceeds from sales of long-term U.S. Government
securities for the period ended March 31, 1999, were as follows:
PURCHASES SALES
- --------------------------------------------------------------
GE U.S. Equity Fund $ 707,309 $ 1,476,959
GE Value Equity Fund 64,368 63,177
GE Strategic
Investment Fund 67,924,873 64,079,270
GE Fixed Income Fund 159,867,027 142,814,898
GE Government
Securities Fund 218,892,470 253,232,373
GE Short-Term
Government Fund 17,393,358 20,459,107
8. BENEFICIAL INTEREST
The number of shareholders each owning 5% or more of a Fund and the total
percentage of the Fund held by such shareholders at March 31, 1999 are:
5% OR GREATER SHAREHOLDERS
- -----------------------------------------------------------------
NUMBER % OF FUND HELD
- -----------------------------------------------------------------
GE U.S. Equity Fund 3 26%
GE Premier Growth Equity Fund 2 23%
GE Value Equity Fund 2 12%
GE Mid-Cap Growth Fund 1 16%
GE Mid-Cap Value Fund 1 95%
GE Small-Cap Value Fund 1 65%
GE Global Equity Fund 2 31%
GE International Equity Fund 4 45%
GE Europe Equity Fund 1 96%
GE Emerging Markets Fund 1 100%
GE Strategic Investment Fund 3 26%
GE Fixed Income Fund 2 15%
GE Short-Term Government Fund 4 48%
GE Tax-Exempt Fund 2 36%
GE High Yield Fund 4 96%
GE Money Market Fund 1 13%
125
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1999 (UNAUDITED)
At March 31, 1999, indirect wholly-owned subsidiaries of General Electric
Company held the following percentage of shares outstanding of the Funds:
% OF FUND HELD
- --------------------------------------------------------------
GE Premier Growth General Electric Capital
Equity Fund Assurance Company 18%
GE Value Equity Fund GNA Corporation 7%
GE Mid-Cap Growth Fund GNA Corporation 16%
GE Mid-Cap Value Colonial Penn
Equity Fund Insurance Company 95%
GE Small-Cap Value General Electric Capital
Equity Fund Assurance Company 65%
GE Europe Equity Fund GE Life and Annuity
Assurance Company 96%
GE Emerging Markets Fund General Electric Capital
Assurance Company 100%
GE Short-Term General Electric Capital
Government Fund Assurance Company 5%
GNA Corporation 27%
GE Tax-Exempt Fund Employers Reinsurance
Corporation 13%
GE High Yield Fund General Electric Capital
Assurance Company 96%
At March 31, 1999, GE Moderate Strategy Fund, an open-ended management
investment company operating as a "fund of funds", being advised by GEIM, owned
5%, 15%, 7% and 7%, respectively, of the outstanding shares of the GE Value
Equity Fund, GE International Equity Fund, GE Fixed Income Fund and GE
Short-Term Government Fund. GE Conservative Strategy Fund and GE Aggressive
Strategy Fund owned less than 5% of shares outstanding of certain GE Funds.
At March 31, 1999, employee benefit plans of certain subsidiaries of General
Electric Company held the following percentage of shares outstanding of the
Funds:
% OF FUND HELD
- -------------------------------------------------------------------
GE U.S. Equity Fund GE Capital Fleet Services 7%
Asset Management Plan for
Affiliated GE Companies 10%
GE Global Equity Fund GE Capital Fleet Services 16%
GE International Equity Fund GE Capital Asset Maintenance 14%
Asset Management Plan for
Affiliated GE Companies 9%
GE Strategic Investment Fund GE Capital Fleet Services 9%
Asset Management Plan for
Affiliated GE Companies 11%
GE Fixed Income Fund GE Capital Asset Maintenance 8%
GE Short-Term Government Fund GE Consulting 9%
Investment activity of these shareholders could have a material impact on these
Funds.
At March 31, 1999, an independent Trustee owned 2% of the outstanding shares of
the GE Short-Term Government Fund.
9. SECURITY LENDING
At March 31, 1999, the GE Government Securities Fund, which is the only fund
that participated in securities lending, loaned securities having a value,
including accrued interest, of approximately $34,932,751 and received
$35,882,858 in cash and letters of credit as collateral for the loans.
10. CAPITAL STOCK
On October 29, 1998, the Trustees declared a reverse stock split, with an
effective date of November 6, 1998 in the ratios of 1 share for 4.71 shares of
the GE Mid-Cap Growth Fund and 1 share for 1.68 shares for the GE Value Equity
Fund. All capital share activity and per share data for these funds have been
restated to reflect the reverse stock splits.
126
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[This page is left intentionally blank.]
127
<PAGE>
GE FUNDS' INVESTMENT TEAM
PORTFOLIO MANAGERS
GE U.S. EQUITY FUND
Team led by Eugene K. Bolton
GE PREMIER GROWTH EQUITY FUND
David B. Carlson
GE VALUE EQUITY FUND
Peter J. Hathaway
GE MID-CAP GROWTH FUND
Ralph E. Whitman, Jr.
GE MID-CAP VALUE FUND
Jon D. Bosse -
NWQ Investment Management Company
GE SMALL-CAP VALUE FUND
Investment Committee:
Jack Feiler
Martin L. Berman
Steven E. Berman
Richard Meisenberg -
Palisade Capital Management, L.L.C.
GE GLOBAL EQUITY FUND
Team led by Ralph R. Layman
Michael J. Solecki
GE INTERNATIONAL EQUITY FUND
Team led by Ralph R. Layman
GE EUROPE EQUITY FUND
Michael J. Solecki
GE EMERGING MARKETS FUND
Team led by Ralph R. Layman
GE STRATEGIC INVESTMENT FUND
David B. Carlson
Ralph R. Layman
Robert A. MacDougall
GE FIXED INCOME FUND
GE GOVERNMENT SECURITIES FUND
GE SHORT-TERM GOVERNMENT FUND
Team led by Robert A. MacDougall
GE TAX-EXEMPT FUND
Barbara A. Brinkley-
Brown Brothers Harriman & Co.
GE HIGH YIELD FUND
Robert E. Angevine
Thomas L. Bennett
Stephen F. Esser -
Miller Anderson & Sherrerd, LLP
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 TREASURERS
Michael M. D'Ambrosio
Michael J. Tansley
DISTRIBUTOR
GE Investment Distributors, Inc.
Member NASD and SIPC
COUNSEL
Willkie Farr & Gallagher
CUSTODIAN
State Street Bank & Trust Company
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers 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
Jeffrey A. Groh, EVP, CHIEF FINANCIAL OFFICER
Ralph R. Layman, EVP, INTERNATIONAL EQUITIES
Alan M. Lewis, EVP, GENERAL COUNSEL AND SECRETARY
Robert A. MacDougall, EVP, FIXED INCOME
Geoffrey R. Norman, EVP, INSTITUTIONAL MARKETING
Don W. Torey, EVP, ALTERNATIVE INVESTMENTS AND
REAL ESTATE
128
<PAGE>
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 FUNDS
C/O NFDS
330 WEST 9TH STREET
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.
At GE, we're dedicated to providing the investment options you'll need to
tailor your financial portfolio to every stage of your life. Each member of
the GE Family of Funds is managed according to the same principles to
integrity and quality that have guided GE over the past century, and have
made it the world-class company that it is today. Each fund draws strength
from a tradition of investment management that spans more than 75 years.
Whether you're creating a new investment portfolio or adding to an
established one, the GE Family of Funds offers an array of professionally
managed investment options that will help you meet a lifetime of financial
needs.
The GE Family of Funds is just one of the investment product lines available
through GE Financial Assurance -- a dynamic family of investment and
insurance companies devoted to providing financial solutions to consumers
seeking to accumulate, preserve and protect wealth over their lifetimes.
<PAGE>
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
- --------------
BULK RATE
U.S. POSTAGE
PAID
CANTON, MA
PERMIT NO. 313
- --------------
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO LIFE.
- -----------
GEF-3 (3/99) 903105
