GE FUNDS
ANNUAL REPORT
September 30, 1999
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO LIFE.
<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
REPORT OF INDEPENDENT ACCOUNTANTS ......................124
TAX INFORMATION ........................................125
GE FUNDS' INVESTMENT TEAM ..............................128
SHAREHOLDER INQUIRIES ....................INSIDE BACK COVER
HIGHLY RATED GE FUNDS
MORNINGSTAR RATINGS(TM)
THROUGH SEPTEMBER 30, 1999
NUMBER OF STAR
FUND/CLASS FUNDS IN ITS CLASS RATINGS
- --------------------------------------------------------------------------------
GE U.S. EQUITY (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 3210
Class A & Y [star][star][star][star][star]
Class B [star][star][star][star]
5 YEAR 2010
Class A & Y [star][star][star][star][star]
Class B [star][star][star][star]
GE VALUE EQUITY (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 3210
Class A & B [star][star][star][star]
5 YEAR 2010
Class A & B [star][star][star][star]
GE STRATEGIC INVESTMENT (DOMESTIC EQUITY)
- --------------------------------------------------------------------------------
OVERALL 3210
Class A & Y [star][star][star][star]
3 YEAR 3210
Class A & Y [star][star][star]
5 YEAR 2010
Class A & Y [star][star][star][star]
GE INTERNATIONAL EQUITY (INTERNATIONAL EQUITY)
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OVERALL AND 3 YEAR 1025
Class Y [star][star][star][star]]
5 YEAR 565
Class Y [star][star][star][star]
GE GLOBAL EQUITY (INTERNATIONAL EQUITY)
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OVERALL AND 3 YEAR 1025
Class A &Y [star][star][star][star]
5 YEAR 565
Class A & Y [star][star][star][star]
GE FIXED INCOME (TAXABLE BOND)
- --------------------------------------------------------------------------------
OVERALL AND 3 YEAR 1585
Class Y [star][star][star][star]
5 YEAR 1153
Class Y [star][star][star][star]
GE SHORT TERM GOVERNMENT (TAXABLE BOND)
- --------------------------------------------------------------------------------
OVERALL 1585
Class A & B [star][star][star][star]
Class Y [star][star][star][star][star]
3 YEAR 1585
Class A & Y [star][star][star][star][star]
Class B [star][star][star][star]
5 YEAR 1153
Class A & B [star][star][star][star]
Class Y [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 September 30, 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:
We are pleased to provide you with the 1999 GE Funds Annual Report.
As you may be aware, the GE Family of Mutual Funds was featured on the cover of
the Oct. 11 issue of BARRON'S, the Dow Jones business and financial weekly. As
the article refers, our strategy of selecting stocks carefully, focusing on
price/earning ratios and seeking long-term profits rather than short-term gains
has paid off. The article also noted that the majority of our funds Class A
shares have done better than their peer group averages since our funds'
inception and half of our eligible funds Class A shares have earned at least
four-star rankings from Morningstar, the independent fund ranking company that
analyzes risk-adjusted performance.
The BARRON'S article also cites our significant accomplishments in marketing
mutual funds over the internet. More than 50,000 of our clients use the funds'
web site at WWW.GE.COM/MUTUALFUNDS to check their accounts or carry out
thousands of transactions. We have had more than 100,000 hits since the site
debuted in 1998. In the months ahead, we plan to add even more services and
information to assist you in managing your finances online, including market
news highlights from CNBC.
FUND HIGHLIGHTS
Despite a volatile market that traded in a narrow range for much of the year,
several GE equity funds outperformed their benchmarks and Lipper Analytic
Services peer groups. All classes of the GE Premier Equity Growth Fund outpaced
the S&P 500 Index, gaining more than 37%. The GE Global Equity Fund outperformed
its benchmarks and, with returns greater than 35%, also outperformed its Lipper
peers. The GE Value Equity Fund also did better than its benchmark and peer
averages, a noteworthy performance in a year when many investors prized growth
over value. The GE U.S. Equity Fund also exceeded its peer averages and, for the
third consecutive quarter, the fund outdistanced its benchmark despite the sharp
narrowing of the overall market. A number of our fixed income funds matched or
outpaced their peer averages at a time when inflation fears pushed bond rates
higher and the U.S. Federal Reserve implemented a restrictive monetary policy.
Average returns for all the Lipper fund categories and complete details on each
fund's performance, including reductions for the effect of loads, can be found
on the fund performance profile pages in this report. As the BARRON'S article
noted, many of our funds earned favorable ratings from Morningstar, the mutual
fund rating service. Highly-rated funds are listed on the inside front cover of
this report.
LIPPER CLASSIFICATION AND RANKINGS
As an investor in the GE Funds, you may have noticed that several of the Lipper
classifications and rankings as they appear in the WALL STREET JOURNAL have
changed. Lipper has changed its methodology for categorizing funds. Prior to
September 1999, Lipper placed funds in peer groups based upon their prospectus
objective. Now, Lipper uses a complex formula to combine portfolio
characteristics and compare each fund to all others in its capitalization range.
Under the new Lipper system, at least 75% of a fund's portfolio must be either
small-, mid- or large-cap to be included in one of those categories. This
"re-categorization" by Lipper has affected the relative rankings of our domestic
equity funds. Changes in rankings are due to the re-categorization by Lipper
rather than changes in the funds' performance of investment objective.
Since the changes in the Lipper ranking methodology were so recently issued in
September, we will continue to supply you with the Lipper peer information in
this annual report. We will continue to investigate the details and impact of
this change to determine the best usage of peer comparisons and most appropriate
rating agency going forward.
MARKET REVIEW
For the past six months the U.S. stock market, as represented by the S&P 500
Index, has been in a narrow trading range, reaching a new high in July, and
testing the March lows in mid-September. The U.S. stock market has enjoyed a
high valuation level for the past few years, reflecting the uniquely favorable
investment climate of steady growth and low inflation. On the other hand, this
market remains vulnerable to high volatility given these valuation levels.
[PHOTO OFMICHAEL J. COSGROVE OMITTED]
1
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A LETTER FROM THE PRESIDENT (CONTINUED)
We entered 1999 with many investors fearing that the financial collapse of
Southeast Asia and Russia would cause a global recession. However, rather than
slowing down, the U.S. economy has remained very strong. Europe is improving,
and much of Asia is showing encouraging signs of recovery as well. Now the worry
is that strong non-inflationary growth might become unsustainable, causing
inflationary pressures that could put an end to the favorable investment
climate.
This fear is reflected by the long-term Treasury bond rate that rose to a high
of 6.25% and currently is around 6.0%, up 150 basis points (1.50%) from the lows
of last Fall. The Federal Reserve (the "Fed") has followed the bond market,
taking back two-thirds of last Fall's rate easing by raising short-term rates 50
basis points (0.50%), and we believe that the Fed will tighten again.
All of this is happening in an environment that exhibits few signs of potential
inflationary pressures. Oil prices have doubled from February's lows and are
back to the levels experienced in 1996. The U.S. dollar has declined against the
Japanese Yen, potentially leading to a rising cost of exports, and the
unemployment rate remains stubbornly low. However, since the oil shock of the
1970s, commodities, including oil, have shrunk significantly as a percentage of
U.S. business costs, the dollar is holding up well against the currencies of our
other trading partners, and labor costs are remarkably benign due to strong
gains in productivity. At the same time, the rest of the world is following the
U.S. example of restructuring and regulatory reform, and U.S. businesses, in the
second phase of restructuring, continue to redeploy capital into more
productive, higher-return industries, all of which is disinflationary.
OUTLOOK
Company fundamentals are strong, with earnings growth accelerating after last
Fall's slowdown. Companies that benefit from globalization and disinflation are
among the earnings leaders, but many of these companies have enjoyed extremely
high valuation levels. Thus, with the stock market still at high valuation
levels, and with market leadership remaining stubbornly narrow, we believe the
stock market will remain hostage to the bond market for the foreseeable future,
and volatility should also remain high. Therefore, our bottom up stock picking
approach should continue to add value for our investors during this period of
high volatility.
YEAR 2000
We are increasingly confident that most U.S. companies have addressed their Year
2000 ("Y2K") issues and do not anticipate any significant impact on U.S. markets
because of Y2K-related disruptions. There is some uncertainty, however, about
the Y2K readiness of companies in other parts of the world and how much effect
any lack of preparation will have on the global economy.
The GE Funds' adviser, GE Investment Management Incorporated ("GEIM"), has
incorporated "Year 2000 Y2K" readiness capability into its analysis processes
for the investment portfolios it manages. It has been engaged in a multi-year
effort to address its own 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 rely largely on the
efforts and affirmations of others; however, it will continue to work closely
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.
Thank you for your continued investment in the GE Funds. We look forward to
helping you serve your financial needs in the future.
Sincerely,
/S/SIGNATURE
Michael J. Cosgrove
MIKE COSGROVE IS THE PRESIDENT OF THE ASSET MANAGEMENT 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 $54 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 ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The GE U.S. Equity Fund's benchmark, the S&P 500 Index, returned 27.81% for
the twelve month period. The fund's Lipper peer group of 253 Large Cap Value
stocks, a new classification, gained an average of 20.71%. To see how your
class of GE U.S. Equity Fund shares performed during the period, please
refer to the next page.
Q. WHAT FACTORS AFFECTED FUND PERFORMANCE?
A. The fund outperformed its Lipper peer averages for the twelve month period
and outpaced its benchmark for the third consecutive quarter despite the
sharp narrowing of the overall market. It is worth remembering that in
October 1998, the stock market was reeling from the collapse of currencies
in Asia and Russia. The market rallied late in 1998 and in the first and
second quarters of 1999. The S&P 500 Index then declined 6.15% in the third
quarter, giving back nearly all of its second quarter gains. Despite this
volatility and the significant narrowing of the market, our valuation
discipline and longer term perspective has helped the fund to outperform the
market and its peer averages.
Q. WHICH INVESTMENTS STAND OUT?
A. The fund did particularly well in consumer cyclical stocks. Because of good
stock selection, these holdings outperformed both their sector and the
market. Cable TV stocks such as NTL and Comcast continued to provide stellar
performance because of strong fundamentals and the expectation that they
will begin to get a significant share of future internet traffic. The
financial sector is another area where good stock picking has paid off.
Financial stocks in general have trailed the S&P 500 Index due to rising
interest rates. However, several large holdings in the fund such as
Citigroup and American Express have significantly outperformed the market.
The capital goods sector showed the poorest relative performance. The fund
was overweight in this area and several stocks had disappointing results.
Waste Management was the worst performer, as earnings fell short of
expectations due to poor management execution. Hubbell, an electrical
components company also lagged, because of a delay in new products. The
technology sector represents the fund's greatest investment challenge
because of extremely high valuations. Most technology stocks show superb
earnings growth, very high margins and good return on capital. The question
is whether these companies can continue to grow at such high rates long
enough to justify their high price/earning ratios. We have been able to find
some good companies in this sector with reasonable valuations considering
their projected earnings growth rates. These would include EMC, a
manufacturer of computer storage products, Nortel, a telecommunications
equipment manufacturer, and Applied Materials, a maker of semiconductor
manufacturing equipment. The fund remains about 2% under the S&P 500 Index
weight of 24% in this sector. We will continue to invest in the technology
sector because of its importance to the information economy, but we plan to
maintain the cautious approach that we have been following.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We believe that the stock market will continue to be volatile in the months
ahead. The economy is strong; inflation is low; and there is little
indication of pressure on wages or prices. However, there is concern that
the economy is growing too fast which will eventually lead to inflation.
This has caused interest rates to increase, which is negative for stocks.
Longer term, as the economy slows somewhat, we expect interest rates to
decline but we could be in for a bumpy ride in the market until then. We
believe the fund is well positioned for good relative performance in this
environment.
[PHOTO OF GENE BOLTON OMITTED]
3
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GE U.S. EQUITY FUND
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TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
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Citigroup Inc. 3.08%
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Merck & Co. Inc. 2.46%
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Intel Corp. 2.22%
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Cisco Systems Inc. 2.19%
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Bristol-Myers Squibb Co. 2.16%
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International Business Machines 2.11%
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Microsoft Corp. 1.91%
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AlliedSignal Inc. 1.83%
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Cardinal Health Inc. 1.63%
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Exxon Corp. 1.63%
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INVESTMENT PROFILE
A mutual fund designed for investors
who seek long-term growth of
capital by investing primarily in
a diversified portfolio of growth
and value stocks of U.S.
companies.
* LIPPER PERFORMANCE COMPARISON
LARGE CAP VALUE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 253 105
Peer group
average annual
total return: 20.71% 20.41%
Lipper categories in peer group:
LARGE CAP VALUE
*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 U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
2/22/93 $10,000.00 $10,000.00 $10,000.00
10,519.58 9,917.30 10,216.10
9/93 11,032.38 10,400.76 10,530.86
10,701.37 10,088.69 10,364.46
9/94 11,129.16 10,491.98 10,919.15
11,991.38 11,304.84 11,978.67
9/95 14,118.31 13,310.00 14,165.55
15,797.66 14,893.21 15,824.63
9/96 16,758.61 15,799.16 17,045.81
18,560.23 17,497.63 18,959.35
9/97 23,422.39 22,081.43 23,947.44
26,873.73 25,335.17 28,068.12
9/98 24,739.00 23,323.11 26,129.74
31,294.61 29,502.94 33,270.71
9/99 31,615.33 29,805.30 33,395.81
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ---- ---------
GE U.S. Equity 27.79% 23.22% 19.04%
GE U.S. Equity w/load 20.43% 21.78% 17.98%
(maximum load-5.75%)
S&P 500 27.81% 25.05% 20.08%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
12/22/93 $10,000.00 $10,000.00 $10,000.00
9,647.78 9,647.78 9,618.15
9/94 9,990.57 9,990.57 10,132.90
10,728.90 10,728.90 11,116.13
9/95 12,579.81 12,579.81 13,145.54
14,022.58 14,022.58 14,685.15
9/96 14,816.93 14,816.93 15,818.40
16,345.27 16,345.27 17,594.16
9/97 20,558.50 20,558.50 22,223.07
23,492.61 23,492.61 26,047.04
9/98 21,545.00 21,545.00 24,248.24
27,153.91 27,153.91 30,875.01
9/99 27,326.98 27,326.98 30,991.10
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE U.S. Equity 26.83% 22.29% 19.01%
GE U.S. Equity w/load 22.83% 22.29% 19.01%
maximum load 4.0% 0.0% 0.0%
S&P 500 27.81% 25.05% 21.74%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY S&P 500
11/29/93 $10,000.00 $10,000.00
9,696.21 9,736.84
9/94 10,096.06 10,257.94
10,889.12 11,253.31
9/95 12,835.67 13,307.76
14,388.82 14,866.37
9/96 15,270.71 16,013.60
16,937.04 17,811.27
9/97 21,403.88 22,497.30
24,582.47 26,368.46
9/98 22,658.00 24,547.46
28,694.05 31,256.00
9/99 29,033.73 31,373.53
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE U.S. Equity 28.14% 23.52% 20.03%
S&P 500 27.81% 25.05% 21.64%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4
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SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE U.S. EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 20.7%
CONSUMER 14.3%
HEALTHCARE 13.1%
FINANCIAL SERVICES 15.0%
UTILITIES 9.1%
CAPITAL GOODS 8.2%
ENERGY 7.6%
RETAIL TRADE 5.5%
CASH & OTHER+ 3.4%
TRANSPORTATION 1.4%
BASIC MATERIALS 1.7%
+INCLUDES CASH EQUALIZED BY FUTURES OF 2.1.%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.1%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 1.7%
Airgas Inc. 32,519 $ 378,033(a)
Barrick Gold Corp. 100,512 2,186,136
Du Pont de Nemours (E.I.) & Co. 27,198 1,655,678
Great Lakes Chemical Corp. 49,666 1,890,412
Mead Corp. 30,107 1,034,928
Newmont Mining Corp. 47,300 1,223,888
PPG Industries Inc. 39,614 2,376,840
Rayonier Inc. 35,475 1,489,950
12,235,865
CAPITAL GOODS -- 8.2%
AlliedSignal Inc. 215,570 12,920,727(h)
Deere & Co. 26,015 1,006,455
Dover Corp. 238,865 9,763,607(h)
Emerson Electric Co. 114,466 7,232,820
Hubbell Inc. (Class B) 143,105 4,561,472
Lockheed Martin Corp. 23,650 773,059
Martin Marietta Materials Inc. 75,325 3,008,292
Masco Corp. 54,395 1,686,245
Molex Inc. (Class A) 132,410 4,286,774
Textron Inc. 78,282 6,057,070
United Technologies Corp. 55,341 3,282,413
Waste Management Inc. 180,923 3,482,768
58,061,702
[ICON OMITTED] CONSUMER - CYCLICAL -- 8.8%
AT&T Corp. - Liberty Media
Group (Class A) 153,725 5,707,041(a)
Carnival Corp. 41,357 1,799,029
Catalina Marketing Corp. 38,386 3,255,613(a)
Comcast Corp. (Class A) 185,653 7,402,913
Ford Motor Co. 43,753 2,195,854
Gannett Inc. 101,577 7,027,859
Harman International
Industries Inc. 10,673 448,933
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 174,774 $ 7,187,581
Knight-Ridder Inc. 50,848 2,790,284
McDonald's Corp. 113,520 4,881,360
MediaOne Group Inc. 19,984 1,365,157(a)
NTL Inc. 73,315 7,045,113(a)
Stanley Works 9,460 238,274
Time Warner Inc. 43,516 2,643,597
Walt Disney Co. 120,852 3,127,045(h)
Xerox Corp. 127,947 5,365,777
62,481,430
CONSUMER - STABLE -- 5.5%
Anheuser Busch Cos. Inc. 85,258 5,973,389(h)
Avon Products Inc. 94,245 2,338,454
Bestfoods 31,928 1,548,508
Colgate-Palmolive Co. 15,136 692,472
General Mills Inc. 26,015 2,110,467
Gillette Co. 17,738 601,983
Heinz (H.J.) Co. 35,475 1,525,425
Pepsico Inc. 152,661 4,617,995
Philip Morris Cos. Inc. 120,852 4,131,628(h)
Procter & Gamble Co. 78,045 7,316,719
Ralston Purina Co. 146,394 4,071,583
Sara Lee Corp. 159,637 3,741,492
38,670,115
ENERGY -- 7.6%
Anadarko Petroleum Corp. 29,917 914,338
Baker Hughes Inc. 60,307 1,748,903
BP Amoco PLC ADR 13,008 1,441,449
Burlington Resources Inc. 91,644 3,367,917
Chevron Corp. 17,738 1,574,248
Conoco Inc. (Class B) 88,688 2,427,834
Exxon Corp. 151,597 11,511,897(h)
Halliburton Co. 96,492 3,956,172
Mobil Corp. 60,307 6,075,930
Nabors Industries Inc. 27,552 688,800(a)
Royal Dutch Petroleum Co. ADR 107,371 6,341,600
Schlumberger Ltd. 91,525 5,703,152
Texaco Inc. 28,380 1,791,487
Unocal Corp. 128,893 4,777,097
USX-Marathon Group 43,397 1,269,362
53,590,186
[ICON OMITTED] FINANCIAL -- 11.2%
American Express Co. 57,944 7,800,711(h)
Associates First Capital Corp.
(Class A) 146,038 5,257,368
Bank of America Corp. 126,881 7,065,686
Bank of New York Inc. 46,118 1,542,071
BankBoston Corp. 33,965 1,473,232
Chase Manhattan Corp. 59,716 4,501,093
Citigroup Inc. 494,995 21,779,780
Countrywide Credit
Industries Inc. 19,511 629,230
Federal National Mortgage Assoc. 160,229 10,044,355
Fleet Financial Group Inc. 29,563 1,082,745
Goldman Sachs Group Inc. 27,198 1,659,078
Morgan Stanley, Dean
Witter & Co. 67,993 6,064,126
PNC Bank Corp. 20,103 1,059,177
State Street Corp. 32,779 2,118,343(e)
- -------------
See Notes to Schedules of Investments and Financial Statements.
5
<PAGE>
GE U.S. EQUITY FUND SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
United States Bancorp. 117,502 $ 3,547,091
Wells Fargo & Co. 89,278 3,537,641
79,161,727
[ICON OMITTED] HEALTHCARE -- 13.1%
Abbott Laboratories 182,105 6,692,359
Allergan Inc. 32,164 3,538,040
Alza Corp. 11,825 506,258(a)
American Home Products Corp. 69,886 2,900,269(h)
Amgen Inc. 53,213 4,336,859(a)
Bristol-Myers Squibb Co. 225,976 15,253,380
Cardinal Health Inc. 211,637 11,534,216(h)
Dentsply International Inc. 33,110 753,252
Henry Schein Inc. 60,899 867,811(a)
Johnson & Johnson 95,901 8,810,904
Lincare Holdings Inc. 55,567 1,481,208(a)
Merck & Co. Inc. 268,664 17,412,785
Omnicare Inc. 24,833 239,018
Pfizer Inc. 69,531 2,498,770
Pharmacia & Upjohn Inc. 100,512 4,987,908
Schering Plough Corp. 68,585 2,992,021
Shire Pharmaceuticals Group
PLC ADR 15,373 442,935(a)
Sybron International Corp. 79,819 2,145,136(a)
United Healthcare Corp. 9,460 460,584
Warner-Lambert Co. 17,738 1,177,360
Watson Pharmaceuticals Inc. 107,607 3,288,739(a)
92,319,812
INSURANCE -- 3.8%
American International
Group Inc. 68,408 5,947,220
Berkshire Hathaway Inc. (Class B) 2,587 4,801,472(a)
Chicago Title Corp. 7,686 306,960
Chubb Corp. 18,920 942,453
Hartford Financial Services
Group Inc. 30,745 1,256,702
Lincoln National Corp. 59,125 2,220,883
Loews Corp. 42,570 2,987,882
Marsh & McLennan Cos. Inc. 31,691 2,170,833
Reliastar Financial Corp. 70,950 2,359,087
St. Paul Cos. Inc. 26,606 731,665
UnumProvident Corp. 114,111 3,359,143
27,084,300
RETAIL TRADE -- 5.5%
Costco Wholesale Corp. 53,211 3,831,192(a)
CVS Corp. 44,935 1,833,909
Dayton Hudson Corp. 168,507 10,120,952
Federated Department Stores Inc. 48,483 2,118,101(a)
Home Depot Inc. 99,330 6,816,521
Lowes Cos. Inc. 92,236 4,496,505
Sears Roebuck & Co. 23,650 742,019
Wal-Mart Stores Inc. 189,200 8,998,825
38,958,024
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 11.9%
Analog Devices Inc. 98,740 $ 5,060,425(a)
Applied Materials Inc. 82,303 6,393,914(a)
Cisco Systems Inc. 225,503 15,461,049(a)
Gateway Inc. 17,738 788,232(a)
Hewlett Packard Co. 18,921 1,740,732
Intel Corp. 211,074 15,685,437
International Business Machines 123,099 14,941,141
Nortel Networks Corp. 186,840 9,528,840
Pitney Bowes Inc. 72,663 4,427,902
Sun Microsystems Inc. 87,032 8,093,976(a)
Texas Instruments Inc. 27,198 2,237,036
84,358,684
TECHNOLOGY - SOFTWARE & SERVICES -- 8.3%
Acxiom Corp. 11,234 220,818(a)
Automatic Data Processing Inc. 146,866 6,553,895
Computer Sciences Corp. 42,570 2,993,203
EMC Corp. 135,396 9,672,352(a)
Equifax Inc. 305,085 8,580,516
First Data Corp. 258,967 11,362,177
Microsoft Corp. 149,587 13,546,973(a)
Reuters Group PLC ADR 14,783 1,018,179
Unisys Corp. 100,512 4,535,604(a)
58,483,717
TRANSPORTATION -- 1.4%
Burlington Northern Santa
Fe Corp. 141,900 3,902,250
Canadian Pacific Ltd. 73,906 1,685,981
Continental Airlines Inc. (Class B) 75,088 2,459,132(a)
Delta Air Lines Inc. 44,935 2,179,347
10,226,710
[ICON OMITTED] UTILITIES -- 9.1%
AT&T Corp. 82,775 3,600,712
Bell Atlantic Corp. 56,760 3,820,657
CMS Energy Corp. 65,038 2,207,227
Duke Energy Corp. 72,133 3,976,332
Edison International 96,964 2,357,437
El Paso Energy Corp. 76,863 3,060,108
Florida Progress Corp. 41,979 1,941,529
FPL Group Inc. 55,578 2,799,742
Global Crossing Ltd. 84,845 2,248,403(a)
GTE Corp. 124,163 9,545,030
MCI WorldCom Inc. 35,475 2,549,766(a)
New Century Energies Inc. 74,498 2,491,027
SBC Communications Inc. 183,642 9,377,220
Sonat Inc. 11,825 469,305
Sprint Corp. 88,215 4,785,664
Texas Utilities Co. 33,110 1,235,417
U.S. WEST Inc. 72,133 4,116,089
Vodafone AirTouch PLC ADR 17,147 4,076,699
64,658,364
TOTAL COMMON STOCK
(COST $568,289,610) 680,290,636
- -----------
See Notes to Schedules of Investments and Financial Statements.
6
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), 2.75%
(COST $3,173,408) 33,726 $ 3,395,787
TOTAL INVESTMENTS IN SECURITIES
(COST $571,463,018) 683,686,423
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.4%
- --------------------------------------------------------------------------------
GEI Short Term
Investment Fund 24,166,307 24,166,307
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TIME DEPOSIT -- 0.1%
State Street Cayman Islands
5.375% 10/01/99 $485,000 485,000
TOTAL SHORT-TERM INVESTMENTS
(COST $24,651,307) 24,651,307
OTHER ASSETS AND LIABILITIES,
NET (0.1)% (805,588)
-------------
NET ASSETS-- 100% $707,532,142
=============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long Futures
Contracts open at September 30, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 December 1999 46 $14,929,300 $(693,005)
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE U.S.
EQUITY FUND AT SEPTEMBER 30, 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 PERIOD ENDING SEPTEMBER 30, 1999?
A. The S&P 500 Index gained 27.81% over the 12 month period. The fund's Lipper
peer group of 350 Multicap Growth funds, a new category, earned an average
of 41.92% during that time. To see how your class of the GE Premier Growth
Equity Fund performed compared to its benchmark, please refer to the next
page.
Q. WHAT FACTORS AFFECTED FUND PERFORMANCE?
A. Technology stocks have about a 20% weighting in the S&P 500 and have about a
28% weighting in the GE Premier Growth Equity Fund. This overweighting was
beneficial, as tech stocks returned approximately 80% in the twelve-month
period, much more than the 28% return for the S&P 500.
The portfolio's holdings in Applied Materials, a manufacturer of
semiconductor equipment; Cisco Systems, which makes networking equipment;
and EMC, a storage equipment manufacturer, all more than doubled in the
period.
Q. WHAT OTHER SECTORS OR STOCKS HAD NOTEWORTHY
PERFORMANCES?
A. Telecommunications stocks were also standout performers. Holdings in
Vodaphone AirTouch, a wireless telecommunications company and NTL, a United
Kingdom telecommunications company, both more than doubled in the period.
On the downside, the fund's holdings in healthcare lagged the market.
Specifically, the distribution companies, Cardinal Health and Henry Schein,
declined during the year.
Lincare Holdings, a home healthcare provider, also fell in price despite
delivering strong earnings growth.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The portfolio continues to be concentrated. Currently there are 32 names in
the fund. We continue to be overweighted in technology and healthcare. Cash
is approximately 4% of the fund. The strategy remains the same: Focus on
high quality industry leaders that can grow at a rate in the mid-teens or
better. If we can successfully identify and own premier companies, their
above-average growth will drive above-average stock performance over the
long term.
[PHOTO OF DAVID CARLSON OMITTED]
8
<PAGE>
GE PREMIER GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
AT&T Corp. - Liberty Media Group 4.41%
- --------------------------------------------------------------------------------
First Data Corp. 3.90%
- --------------------------------------------------------------------------------
Microsoft Corp. 3.81%
- --------------------------------------------------------------------------------
EMC Corp. 3.80%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 3.73%
- --------------------------------------------------------------------------------
NTL Inc. 3.68%
- --------------------------------------------------------------------------------
Intel Corp. 3.49%
- --------------------------------------------------------------------------------
Catalina Marketing Corp. 3.46%
- --------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 3.46%
- --------------------------------------------------------------------------------
Molex Inc. 3.44%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed
for investors who seek
long-term growth of
capital and future
income by investing
primarily in
growth-oriented equity
securities.
* LIPPER PERFORMANCE COMPARISON
MULTICAP GROWTH PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED
9/30/99
One Year
--------
Number of Funds
in peer group: 350
Peer group
average annual
total return: 41.92%
Lipper categories in peer group:
MULTICAP GROWTH
*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 PREMIER FUND GE PREMIER FUND W/LOAD S&P 500
12/31/96 $10,000.00 $10,000.00 $10,000.00
3/97 9,533.32 8,982.41 10,260.73
11,033.32 10,395.73 12,053.80
9/97 12,233.32 11,526.38 12,960.26
12,645.51 11,914.75 13,329.40
3/98 14,294.04 13,468.02 15,190.35
14,863.91 14,004.95 15,693.88
9/98 13,866.65 13,065.32 14,141.85
17,120.96 16,131.56 17,154.67
3/99 18,630.40 17,553.77 18,004.59
20,482.26 19,298.61 19,259.05
9/99 19,210.41 18,100.26 18,073.68
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Premier
Growth Equity 38.54% 26.79%
GE Premier Growth
Equity w/load 30.55% 24.07%
(maximum load-5.75%)
S&P 500 27.81% 24.03%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE PREMIER FUND GE PREMIER FUND W/LOAD S&P 500
12/31/96 $10,000.00 $10,000.00 $10,000.00
3/97 9,513.33 9,513.33 10,260.73
10,986.67 10,986.67 12,053.80
9/97 12,166.67 12,166.67 12,960.26
12,552.07 12,552.07 13,329.40
3/98 14,157.49 14,157.49 15,190.35
14,692.63 14,692.63 15,693.88
9/98 13,683.31 13,683.31 14,141.85
16,866.23 16,866.23 17,154.67
3/99 18,316.48 18,316.48 18,004.59
20,101.42 20,101.42 19,259.05
9/99 18,818.50 18,618.50 18,073.68
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Premier
Growth Equity 37.53% 25.84%
GE Premier Growth
Equity w/load 33.53% 25.35%
maximum load 4.0% 2.0%
S&P 500 27.81% 24.03%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE PREMIER FUND S&P 500
12/31/96 $10,000.00 $10,000.00
3/97 9,539.99 10,260.73
11,039.99 12,053.80
9/97 12,253.32 12,960.26
12,676.35 13,329.40
3/98 14,333.92 15,190.35
14,918.15 15,693.88
9/98 13,926.32 14,141.85
17,208.05 17,154.67
3/99 18,729.08 18,004.59
20,614.61 19,259.05
9/99 19,345.91 18,073.68
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Premier
Growth Equity 38.92% 27.11%
S&P 500 27.81% 24.03%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
9
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE PREMIER GROWTH EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 28.4%
CONSUMER 22.2%
HEALTHCARE 17.5%
CAPITAL GOODS 7.9%
UTILITIES 6.1%
CASH & OTHER 6.1%
ENERGY 5.1%
FINANCIAL SERVICES 3.3%
RETAIL TRADE 3.4%
+INCLUDES CASH EQUALIZED BY FUTURES OF 1.9%.
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 93.9%
- --------------------------------------------------------------------------------
[ICON OMITTED] CAPITAL GOODS -- 7.9%
Dover Corp. 79,386 $ 3,244,903
Molex Inc. (Class A) 110,116 3,565,005(h)
Waste Management Inc. 69,143 1,331,003
8,140,911
[ICON OMITTED] CONSUMER - CYCLICAL -- 21.0%
AT&T Corp. - Liberty Media
Group (Class A) 122,920 4,563,405(a,h)
Carnival Corp. (Class A) 66,582 2,896,317
Catalina Marketing Corp. 42,254 3,583,667(a)
Comcast Corp. (Class A) 84,508 3,369,757
Interpublic Group Cos. Inc. 87,069 3,580,713
NTL Inc. 39,693 3,814,249(a)
21,808,108
CONSUMER - STABLE -- 1.2%
Avon Products Inc. 48,656 1,207,277
ENERGY -- 5.1%
Baker Hughes Inc. 104,994 3,044,826
Schlumberger Ltd. 35,852 2,234,028
5,278,854
FINANCIAL -- 3.3%
Citigroup Inc. 76,825 3,380,300
[ICON OMITTED] HEALTHCARE -- 17.5%
Cardinal Health Inc. 57,619 3,140,235
Dentsply International Inc. 79,386 1,806,032(h)
Henry Schein Inc. 115,238 1,642,142(a)
Johnson & Johnson 28,425 2,611,547
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Lincare Holdings Inc. 94,751 $ 2,525,706(a)
Merck & Co. Inc. 48,656 3,153,517
Sybron International Corp. 122,920 3,303,475(a)
18,182,654
RETAIL TRADE -- 3.4%
Home Depot Inc. 51,217 3,514,766
[ICON OMITTED] TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 10.5%
Applied Materials Inc. 43,534 3,382,048(a)
Cisco Systems Inc. 56,338 3,862,674(a)
Intel Corp. 48,656 3,615,749
10,860,471
[ICON OMITTED] TECHNOLOGY - SOFTWARE & SERVICES -- 17.9%
Acxiom Corp. 38,413 755,056(a)
Automatic Data Processing Inc. 69,143 3,085,506
EMC Corp. 55,058 3,933,206(a)
Equifax Inc. 99,873 2,808,928
First Data Corp. 92,190 4,044,836(h)
Microsoft Corp. 43,534 3,942,548(a)
18,570,080
UTILITIES -- 6.1%
MCI WorldCom Inc. 43,534 3,129,006(a)
Vodafone AirTouch PLC ADR 13,444 3,196,311
6,325,317
TOTAL INVESTMENTS IN SECURITIES
(COST $85,398,454) 97,268,738
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $7,513,314) 7,513,314 7,513,314
OTHER ASSETS AND LIABILITIES,
NET (1.2)% (1,196,052)
-------------
NET ASSETS-- 100% $103,586,000
=============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following long Futures Contracts open
at September 30, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 December 1999 6 $1,947,300 $(10,300)
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE
PREMIER GROWTH EQUITY FUND AT SEPTEMBER 30, 1999.
- --------------
See Notes to Schedules of Investments and Financial Statements.
10
<PAGE>
GE VALUE EQUITY FUND
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 ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The GE Value Equity Fund's benchmark, the S&P/BARRA Value Composite Index of
500 value stocks, returned 21.47% for the one-year period ended September
30, 1999. The fund's Lipper peer group of 253 Large Cap Value funds grew
20.71% for the same period. To see how your classes of shares in the GE
Value Equity Fund performed compared with its benchmark, please refer to the
next page.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. All classes of the fund outperformed their benchmark and their Lipper peer
averages. Stock selection has always been key to this fund's successful
performance. We select stocks based on their long-term fundamentals, not
just short-term results. Scale buying and scale selling is another practice
that helps fund performance. After extensive research, the analysts set a
target price for a stock. When the stock nears the target on the upside, the
fund may sell some shares. If the stock's price begins to drop below the
target, the fund will buy shares, as long as the stock shows good upside
potential. Scale buying and selling, a process that occurs over a long
period, has added to the total return of the fund.
Q. WHICH STOCK SECTORS STAND OUT?
A. We added energy stocks when oil prices dropped to $12 a barrel, which helped
fund performance as those stocks recovered. Within the energy sector,
natural gas issues performed well. Consumer products and good selection in
the retail sector turned in strong performances as well. Because the U.S.
economy is strong, consumers are continuing to spend. Telecommunications has
been another success story. The fund invested in companies that were later
bought out at premium prices.
In the technology sector, where many stocks have high valuation levels, good
stock selection overcame the fund's underweighting compared to its
benchmark.
Q. WHAT CHANGES HAVE YOU MADE TO THE FUND?
A. The fund has reduced its position in the technology sector because of the
high valuation levels. We plan to increase the fund's weighting in selected
electric utilities and food stocks. Both sectors have lagged the market but
should show gains over the next 12 months.
Although there are some cyclical concerns, media stocks have good valuation
levels. The fund recently acquired some advertising and newspaper stocks.
Since there are bargains to be found in the financial sector among regional
banks, we will be selectively adding some of these stocks.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We believe the economy will remain strong for 2000. However, corporations
will find it difficult to raise prices in this environment, which might put
pressure on earnings. We also foresee that interest rates might increase
slightly. Right now, the overall stock market is at historically high
valuation levels.
We use a disciplined, team approach to investing. The fund has relatively
low turnover and holds stocks for three to four years. However, change is
rapid so the fund seeks companies that are well positioned to adapt to
change over the long term. We continue to focus on large-cap companies that
are well-positioned to compete globally. We look for companies with
consistent growth that sell at reasonable valuation levels. Electric
utilities, energy stocks, foods, plus selected regional banks, finance
companies and insurance and health care issues appear to be particularly
good values.
[PHOTO OF PETER J. HATHAWAY OMITTED]
11
<PAGE>
GE VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
International Business Machines Corp.2.62%
- --------------------------------------------------------------------------------
Citigroup Inc. 2.34%
- --------------------------------------------------------------------------------
Merck & Co. Inc. 2.31%
- --------------------------------------------------------------------------------
Cisco Systems Inc. 2.21%
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2.06%
- --------------------------------------------------------------------------------
Wal-Mart Stores Inc. 1.93%
- --------------------------------------------------------------------------------
Intel Corp. 1.92%
- --------------------------------------------------------------------------------
Dayton Hudson Corp. 1.75%
- --------------------------------------------------------------------------------
Nortel Networks Corp. 1.66%
- --------------------------------------------------------------------------------
Exxon Corp. 1.54%
- --------------------------------------------------------------------------------
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
LARGE CAP VALUE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE
PERIODS ENDED 9/30/99
One Year Five Year
-------- ---------
Number of Funds
in peer group: 253 105
Peer group
average annual
total return: 20.71% 20.41%
Lipper categories in peer group:
LARGE CAP VALUE
*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 VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 $10,000.00 $10,000.00 $10,000.00
9,573.86 9,023.37 9,714.00
9/94 9,925.18 9,354.48 10,054.67
10,731.37 10,114.31 10,940.99
9/95 12,288.84 11,582.23 12,839.03
13,491.08 12,715.34 14,543.03
9/96 14,770.05 13,920.77 15,232.85
16,253.70 15,319.11 16,969.02
9/97 20,647.82 19,460.57 21,203.35
23,729.39 22,364.95 24,177.39
9/98 21,858.00 20,601.48 21,164.40
27,331.79 25,752.31 25,552.22
9/99 27,834.55 26,226.02 25,698.62
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Value Equity 27.34% 22.90% 18.39%
GE Value Equity
w/load 19.97% 21.45% 17.24%
(maximum load-5.75%)
S&P 500/Barra Value 21.47%20.65% 16.78%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 $10,000.00 $10,000.00 $10,000.00
9,555.57 9,555.57 9,714.00
9/94 9,873.06 9,873.06 10,054.67
10,625.67 10,625.67 10,940.99
9/95 12,139.56 12,139.56 12,839.03
13,268.08 13,268.08 14,543.03
9/96 14,461.66 14,461.66 15,232.85
15,862.84 15,862.84 16,969.02
9/97 20,078.03 20,078.03 21,203.35
23,007.23 23,007.23 24,177.39
9/98 21,146.00 21,146.00 21,164.40
26,358.96 26,358.96 25,552.22
9/99 26,785.19 26,785.19 25,698.62
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Value Equity 26.67% 22.09% 17.65%
GE Value Equity
w/load 22.67% 22.09% 17.65%
maximum load 4.0% 0.0% 0.0%
S&P 500/Barra Value 21.47% 20.65% 16.78%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY S&P 500/BARRA VALUE
1/5/98 $10,000.00 $10,000.00
3/98 11,240.00 11,142.45
6/98 11,540.00 11,200.12
09/98 10,380.19 9,753.88
12/98 12,447.54 11,467.64
3/99 12,999.61 11,794.26
6/99 14,082.91 13,067.40
9/99 13,270.43 11,861.83
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Value Equity 27.85% 17.69%
S&P 500/Barra Value 21.47% 10.26%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
12
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE VALUE EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 20.4%
FINANCIAL SERVICES 15.8%
CONSUMER 12.1%
HEALTHCARE 11.2%
UTILITIES 10.1%
CAPITAL GOODS 7.9%
ENERGY 7.9%
RETAIL TRADE 6.4%
CASH & OTHER+ 3.9%
BASIC MATERIALS 2.3%
TRANSPORTATION 2.0%
+INCLUDES CASH EQUALIZED BY FUTURES OF 2.3%.
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.5%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 2.3%
Avery Dennison Corp. 1,903 $ 100,383
Barrick Gold Corp. 17,955 390,521
Champion International Corp. 2,322 119,293
Du Pont de Nemours (E.I.) & Co. 4,867 296,279
Freeport McMoran Copper &
Gold Inc. (Class B) 3,173 49,380
Mead Corp. 5,385 185,109
Monsanto Co. 1,497 53,892
Newmont Mining Corp. 8,460 218,903
PPG Industries Inc. 3,366 201,960
Rayonier Inc. 6,328 265,776
1,881,496
[ICON OMITTED] CAPITAL GOODS -- 7.9%
AlliedSignal Inc. 18,435 1,104,948(h)
Cooper Industries Inc. 2,115 98,876
Deere & Co. 4,653 180,013
Dover Corp. 17,826 728,638(h)
Emerson Electric Co. 13,608 859,855(h)
General Dynamics Corp. 2,534 158,217
Honeywell Inc. 846 94,170
Hubbell Inc. (Class B) 10,579 337,206
Lockheed Martin Corp. 4,230 138,268
Martin Marietta Materials Inc. 11,419 456,046
Masco Corp. 9,729 301,599
Molex Inc. (Class A) 5,711 184,894
Parker Hannifin Corp. 4,865 218,013
Sherwin-Williams Co. 3,595 75,270
Textron Inc. 12,240 947,070
Timken Co. 2,115 34,104
United Technologies Corp. 7,756 460,028
Waste Management Inc. 11,210 215,793
6,593,008
CONSUMER - CYCLICAL -- 6.0%
ACNielsen Corp. 2,327 52,794(a)
AT&T Corp. - Liberty Media
Group (Class A) 1,269 47,112(a)
Carnival Corp. 631 27,449
Comcast Corp. (Class A) 10,152 404,811
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Delphi Automotive Systems Corp. 6,301 $ 101,210
Ford Motor Co. 7,825 392,717
Gannett Inc. 10,152 702,391
Interpublic Group Cos. Inc. 13,325 547,991
Knight-Ridder Inc. 9,095 499,088
McDonald's Corp. 20,304 873,072
McGraw Hill Cos. Inc. 2,115 102,313
Time Warner Inc. 3,807 231,275
Walt Disney Co. 10,690 276,604
Xerox Corp. 16,920 709,582
4,968,409
CONSUMER - STABLE -- 6.1%
Anheuser Busch Cos. Inc. 7,402 518,603(h)
Archer-Daniels Midland Co. 11,626 141,688
Avon Products Inc. 5,702 141,481
Bestfoods 5,711 276,983
Colgate-Palmolive Co. 2,961 135,466
General Mills Inc. 4,653 377,475
Heinz (H.J.) Co. 6,345 272,835
Kimberly Clark Corp. 1,269 66,623
Pepsico Inc. 17,969 543,562(h)
Philip Morris Cos. Inc. 13,113 448,301
Procter & Gamble Co. 9,518 892,312
Ralston Purina Co. 14,171 394,131
Sara Lee Corp. 28,533 668,742
Sysco Corp. 5,905 207,044
5,085,246
ENERGY -- 7.9%
BP Amoco PLC ADR 2,328 257,972
Burlington Resources Inc. 9,518 349,786
Chevron Corp. 3,173 281,604
Conoco Inc. (Class B) 15,841 433,647
Exxon Corp. 16,920 1,284,862
Halliburton Co. 12,897 528,777
Mobil Corp. 10,773 1,085,380
Nabors Industries Inc. 2,322 58,050(a)
Royal Dutch Petroleum Co. ADR 10,575 624,586
Schlumberger Ltd. 6,315 393,503
Texaco Inc. 5,076 320,423
Tosco Corp. 2,538 64,085
Unocal Corp. 19,352 717,233
USX-Marathon Group 5,605 163,946
6,563,854
[ICON OMITTED] FINANCIAL -- 11.6%
American Express Co. 7,838 1,055,191
Associates First Capital
Corp. (Class A) 19,775 711,900
Bank of America Corp. 16,894 940,785
Bank of New York Inc. 5,288 176,817
BankBoston Corp. 6,059 262,809
Chase Manhattan Corp. 7,191 542,022
Citigroup Inc. 44,415 1,954,260
Comerica Inc. 3,712 187,920
Edwards A.G. Inc. 4,086 107,768
Federal National Mortgage Assoc. 14,875 932,476
Fleet Financial Group Inc. 5,288 193,673
Goldman Sachs Group Inc. 4,856 296,216
Morgan Stanley Dean Witter & Co. 12,128 1,081,666
National City Corp. 24 640
- -----------
See Notes to Schedules of Investments and Financial Statements.
13
<PAGE>
GE VALUE EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PNC Bank Corp. 3,587 $ 188,990
T. Rowe Price & Associates 3,067 84,151
United States Bancorp. 13,715 414,022
Wachovia Corp. 2,750 216,219
Waddell & Reed Financial
Inc. (Class A) 6,345 140,780
Wells Fargo & Co. 5,283 209,339
9,697,644
[ICON OMITTED] HEALTHCARE -- 11.2%
Abbott Laboratories 15,862 582,929(h)
Allergan Inc. 4,442 488,620
Alza Corp. 2,115 90,548(a)
American Home Products Corp. 5,499 228,209(h)
Amgen Inc. 9,518 775,717(a)
Baxter International Inc. 1,692 101,943
Bristol-Myers Squibb Co. 25,380 1,713,150(h)
Cardinal Health Inc. 15,439 841,425
Chiron Corp. 207 5,731(a)
Genentech Inc. 321 46,966(a)
Johnson & Johnson 8,460 777,263
Merck & Co. Inc. 29,716 1,925,968
Pharmacia & Upjohn Inc. 14,752 732,068
Schering Plough Corp. 12,267 535,148
United Healthcare Corp. 1,690 82,282
Warner-Lambert Co. 3,168 210,276
Watson Pharmaceuticals Inc. 6,662 203,607(a)
9,341,850
INSURANCE -- 4.2%
Allstate Corp. 2,745 68,453
American International
Group Inc. 6,058 526,667
AXA-UAP 1,375 173,813
Berkshire Hathaway Inc. (Class B) 296 549,376(a)
Chicago Title Corp. 4,753 189,823
Chubb Corp. 3,381 168,416
Hartford Financial Services
Group Inc. 5,490 224,404
Jefferson-Pilot Corp. 635 40,124
Lincoln National Corp. 10,575 397,223
Loews Corp. 4,336 304,333
Progressive Corp. 1,683 137,480
Reliastar Financial Corp. 7,821 260,048
St. Paul Cos. Inc. 4,759 130,873
UnumProvident Corp. 12,479 367,351
3,538,384
RETAIL TRADE -- 6.4%
Costco Wholesale Corp. 5,495 395,640(a)
CVS Corp. 3,384 138,110
Dayton Hudson Corp. 24,323 1,460,900(h)
Federated Department Stores Inc. 8,672 378,858(a)
Home Depot Inc. 10,364 711,229
Lowes Cos. Inc. 10,364 505,245
Sears Roebuck & Co. 4,230 132,716
Wal-Mart Stores Inc. 33,840 1,609,515(h)
5,332,213
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 13.4%
Analog Devices Inc. 13,325 $ 682,906(a)
Applied Materials Inc. 7,825 607,905(a)
Cisco Systems Inc. 26,861 1,841,657(a,h)
EG & G Inc. 3,595 143,126
Gateway Inc. 3,177 141,178(a)
General Instrument Corp. 2,009 96,683(a)
Hewlett Packard Co. 3,392 312,064
Intel Corp. 21,573 1,603,144
International Business
Machines Corp. 17,991 2,183,658
Nortel Networks Corp. 27,103 1,382,253
Pitney Bowes Inc. 7,816 476,287
Sun Microsystems Inc. 13,126 1,220,718(a)
Synopsys Inc. 1,112 62,446(a)
Texas Instruments Inc. 4,865 400,146
11,154,171
TECHNOLOGY - SOFTWARE & SERVICES -- 6.4%
Acxiom Corp. 1,481 29,111(a)
Automatic Data Processing Inc. 11,639 519,390
Computer Sciences Corp. 7,614 535,359
EMC Corp. 14,805 1,057,632(a)
Equifax Inc. 21,679 609,722
First Data Corp. 19,875 872,016
Microsoft Corp. 11,738 1,063,022(a)
Unisys Corp. 14,589 658,329(a)
5,344,581
TRANSPORTATION -- 2.0%
Burlington Northern Santa Fe 22,208 610,720
Canadian Pacific Ltd. 13,219 301,558
Continental Airlines Inc. (Class B) 11,840 387,760(a)
Delta Air Lines Inc. 8,037 389,795
1,689,833
[ICON OMITTED] UTILITIES -- 10.1%
Alltel Corp. 2,745 193,179
AT&T Corp. 14,805 644,018(a)
Bell Atlantic Corp. 10,152 683,356(h)
CMS Energy Corp. 11,633 394,795
Duke Energy Corp. 8,672 478,044
Edison International 17,290 420,363
El Paso Energy Corp. 10,575 421,017
Florida Progress Corp. 7,508 347,245
FPL Group Inc. 6,345 319,629
Global Crossing Ltd. 15,131 400,973(a)
GTE Corp. 12,479 959,323
New Century Energies Inc. 13,325 445,555
SBC Communications Inc. 21,150 1,079,972
Sonat Inc. 3,173 125,928
Sprint Corp. 10,046 544,996
Texas Utilities Co. 5,922 220,965
U.S. WEST Inc. 12,902 736,220
8,415,578
TOTAL COMMON STOCK
(COST $64,058,693) 79,606,267
- ------------
See Notes to Schedules of Investments and Financial Statements.
14
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
- --------------------------------------------------------------------------------
Microsoft Corp. (Series A), 2.75%
(COST $435,860) 4,865 489,845(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $64,494,553) 80,096,112
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.8%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $3,154,969) 3,154,969 3,154,969
OTHER ASSETS AND LIABILITIES,
NET 0.1% 86,397
------------
NET ASSETS-- 100% $83,337,478
============
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
The GE Value Equity Fund had the following long Futures Contracts open at
September 30, 1999:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
- --------------------------------------------------------------------------------
S&P 500 December 1999 6 $1,947,300 $(92,925)
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE VALUE
EQUITY FUND AT SEPTEMBER 30, 1999.
- ------------
See Notes to Schedules of Investments and Financial Statements.
15
<PAGE>
GE MID-CAP GROWTH FUND
Q&A
RALPH (CHIP) E. WHITMAN IS THE PORTFOLIO MANAGER OF THE GE MID-CAP GROWTH FUND
SINCE 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 BENCHMARK AND LIPPER PEER GROUP PERFORM FOR
THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The GE Mid-Cap Growth Fund benchmark, the Standard & Poor's MidCap 400
Index, returned 25.50% for the one-year period ended September 30, 1999.
The fund's Lipper peer group of 345 MultiCap Core funds grew an average of
25.18% for the same period. To see how your class of shares in the GE
Mid-Cap Growth Fund performed compared with its benchmark, please refer to
the next page.
Q. WHAT FACTORS CONTRIBUTED TO FUND PERFORMANCE?
A. Our performance benefited from a rebound in oil service stocks as well as
strength in telecommunications equipment and the diversified industrial
sector. Additionally, several companies in the portfolio were targets of
acquisition over the last year.
Although the fund's technology holdings generally were strong performers,
our underweight position, relative to the benchmark, hurt overall
performance of the fund because of that sector's superb return. Negative
returns in the consumer stable sector, especially healthcare services, also
contributed to the underperformance for the 12 month period.
Q. WHICH STOCKS STAND OUT?
A. In the technology sector, Nokia was up 130% and Nortel gained 218% as
strength in telecommunications continued. Other top performers include
Analog Devices, in the vibrant semiconductor industry, which rose 219% and
Qwest Communications International, which gained 89% as it continued to
execute its data network strategy. Companies in the portfolio that were
acquired include Morton International and AirTouch Communications. Sealed
Air, another recent acquisition, returned 61% after its merger with Cryovac
proved to be a long-term win for the company.
Unfortunately, companies such as Allied Waste Industries, in the pollution
control industry, and Service Corp. International, a funeral provider, once
viewed as growth stocks, could not generate a sufficient amount of internal
growth since industry trends were deteriorating. The stocks were punished
accordingly. Within healthcare services, Henry Schein suffered because of
merger integration and McKesson HBOC declined after accounting
irregularities were exposed.
Q. WHAT CHANGES HAVE YOU MADE TO THE FUND?
A. Over the last 12 months, we refocused the fund on fewer stocks. We will
continue to invest in companies with strong earnings growth, high quality
management and reasonable valuations. Given the uncertainty of the current
economic environment, we are overweight in the sectors we believe show the
best stability and growth for a reasonable valuation. These include
financial services and capital goods issues.
Q. WHAT IS THE OUTLOOK FOR THE FUND?
A. We believe the fund is well positioned to take advantage of an expected
rotation away from technology, telecommunications and internet stocks. These
areas have produced astounding returns over the past few years and now trade
at exceptionally high valuations. While the fund has holdings in these
sectors, recent purchases include stocks in sectors such as capital goods,
consumer stables and financial industries.
With fewer stocks in the portfolio and an emphasis on the highest quality
stocks within each sector, we hope to improve the fund's performance and
generate returns in excess of our benchmark and peer group.
[PHOTO OF RALPH E. WHITMAN OMITTED]
16
<PAGE>
GE MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Analog Devices Inc. 3.87%
- --------------------------------------------------------------------------------
Nokia Corp. ADR 3.25%
- --------------------------------------------------------------------------------
Tyco International Ltd. 2.78%
- --------------------------------------------------------------------------------
Federated Department Stores Inc. 2.63%
- --------------------------------------------------------------------------------
Viad Corp. 2.37%
- --------------------------------------------------------------------------------
Masco Corp. 2.34%
- --------------------------------------------------------------------------------
Bank of New York Inc. 2.16%
- --------------------------------------------------------------------------------
Knoll Inc. 2.16%
- --------------------------------------------------------------------------------
Nortel Networks Corp. 2.13%
- --------------------------------------------------------------------------------
Clear Channel Communications Inc.2.08%
- --------------------------------------------------------------------------------
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
potentialfor above-average growth.
* LIPPER PERFORMANCE COMPARISON
MULTICAP CORE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 345 137
Peer group
average annual
total return: 25.18% 19.00%
Lipper categories in peer group:
MULTICAP CORE
*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 MID-CAP FUND GE MID-CAP FUND W/LOAD S&P 400
9/8/93 $10,000.00 $10,000.00 $10,000.00
9,847.06 9,280.85 9,980.43
9/94 10,251.10 9,661.66 10,267.50
11,106.35 10,467.73 10,821.59
9/95 13,743.36 12,953.12 12,913.81
14,277.89 13,456.91 13,904.61
9/96 15,715.18 14,811.56 14,721.47
15,430.10 14,542.87 15,381.35
9/97 20,917.94 19,715.16 20,478.43
22,427.98 21,138.37 22,923.44
9/98 17,548.00 16,536.00 19,187.13
20,836.59 19,635.36 23,026.90
9/99 19,987.85 18,835.55 24,079.38
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Mid-Cap Growth 13.91% 14.29% 12.10%
GE Mid-Cap Growth
w/load 7.41% 12.93% 11.01%
(maximum load-5.75%)
S&P MidCap 400 25.16% 18.57% 15.51%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE MID-CAP FUND GE MID-CAP FUND W/LOAD S&P 400
9/8/93 $10,000.00 $10,000.00 $10,000.00
9,823.53 9,823.53 9,980.43
9/94 10,180.31 10,180.31 10,267.50
10,976.20 10,976.20 10,821.59
9/95 13,542.06 13,542.06 12,913.81
14,017.22 14,017.22 13,904.61
9/96 15,383.31 15,383.31 14,721.47
15,050.70 15,050.70 15,381.35
9/97 20,336.85 20,336.85 20,478.43
21,740.75 21,740.75 22,923.44
9/98 16,958.00 16,958.00 19,187.13
20,088.45 20,088.45 23,026.90
9/99 19,218.82 19,218.82 24,079.38
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Mid-Cap Growth 13.33% 13.55% 11.38%
GE Mid-Cap Growth
w/load 9.33% 13.55% 11.38%
maximum load 4.0% 0.0% 0.0%
S&P MidCap 400 25.16% 18.57% 15.51%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE MID-CAP FUND S&P 400
1/5/98 $10,000.00 $10,000.00
3/98 11,120.00 11,101.39
6/98 10,680.00 10,863.55
9/98 8,710.05 9,291.97
12/98 10,400.00 11,911.52
3/99 10,380.00 11,151.50
6/99 11,280.00 12,730.28
9/99 9,980.00 11,661.19
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Mid-Cap Growth 14.58% (0.12)%
S&P MidCap 400 25.16% 9.08%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
17
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE MID-CAP GROWTH FUND
[PIE CHART OMITTED]
FINANCIAL SERVICES 16.6%
CONSUMER 16.5%
CAPITAL GOODS 15.9%
TECHNOLOGY 13.7%
CASH & OTHER 10.4%
HEALTHCARE 8.4%
RETAIL TRADE 8.4%
ENERGY 4.3%
UTILITIES 3.6%
BASIC MATERIALS 2.2%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 89.6%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 2.2%
CK Witco Corp. 14,017 $ 204,123
Rohm & Hass Co. 3,979 143,741
Sealed Air Corp. 8,410 431,538(a)
779,402
[ICON OMITTED] CAPITAL GOODS -- 15.9%
Allied Waste Industries Inc. 7,493 87,574(a)
AlliedSignal Inc. 9,111 546,091
Dover Corp. 11,494 469,817
Gerber Scientific Inc. 3,504 78,402
Hubbell Inc. (Class B) 7,990 254,681
Martin Marietta Materials Inc. 15,138 604,574
Masco Corp. 26,352 816,912
Mettler-Toledo International Inc. 18,783 556,446(a)
Molex Inc. (Class A) 11,914 385,716
Textron Inc. 7,569 585,651
Thermo Electron Corp. 14,017 188,354(a)
Tyco International Ltd. 9,391 969,621
5,543,839
[ICON OMITTED] CONSUMER - CYCLICAL -- 15.3%
Clear Channel
Communications Inc. 9,083 725,505(a)
Dial Corp. 26,352 671,976
Interpublic Group Cos. Inc. 15,419 634,106
ITT Industries Inc. 21,025 668,858
Jones Apparel Group Inc. 14,437 415,064(a)
Knoll Inc. 28,034 753,414(a)
Service Corp. International 16,034 169,359
U.S. Industries Inc. 30,136 474,642
Viad Corp. 28,034 827,003
5,339,927
CONSUMER - STABLE -- 1.2%
Manor Care Inc. 24,530 421,609(a)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ENERGY -- 4.3%
BJ Services Co. 9,531 $ 303,205(a)
Nabors Industries Inc. 9,672 241,800(a)
Schlumberger Ltd. 4,626 288,258
Tosco Corp. 15,138 382,234
USX-Marathon Group 9,531 278,782
1,494,279
[ICON OMITTED] FINANCIAL -- 13.0%
AXA Financial Inc. 9,111 508,508(a)
Bank of New York Inc. 22,567 754,584
CIT Group Inc. (Class A) 15,138 311,275
Comdisco Inc. 35,042 676,749(h)
FINOVA Group Inc. 15,699 573,014
Firstar Corp. 23,548 603,417
GATX Corp. 11,774 365,730
SouthTrust Corp. 7,008 251,412
Waddell & Reed Financial
Inc. (Class A) 22,567 500,705
4,545,394
[ICON OMITTED] HEALTHCARE -- 8.4%
Allergan Inc. 1,402 154,220
Cardinal Health Inc. 8,130 443,085
Covance Inc. 17,942 173,813(a)
Genentech Inc. 1,512 221,225(a)
Henry Schein Inc. 21,025 299,606(a)
McKesson HBOC Inc. 10,513 304,877
Sybron International Corp. 21,025 565,047(a)
Tenet Healthcare Corp. 18,783 329,876(a)
Watson Pharmaceuticals Inc. 14,017 428,395(a)
2,920,144
INSURANCE -- 3.6%
American International
Group Inc. 7,008 609,258(h)
Hartford Financial Services
Group Inc. 8,690 355,204
UNUMProvident Corp. 10,232 301,204
1,265,666
RETAIL TRADE -- 8.4%
Costco Wholesale Corp. 8,410 605,520(a)
Federated Department Stores Inc. 21,025 918,530(a)
Kroger Co. 22,707 500,973(a)
Office Depot Inc. 35,042 356,990(a)
Zale Corp. 13,737 526,299(a,h)
2,908,312
[ICON OMITTED] TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 10.7%
ADC Telecommunications Inc. 12,055 505,556(a)
Analog Devices Inc. 26,352 1,350,540(a)
Nokia Corp. ADR 12,615 1,132,985
Nortel Networks Corp. 14,578 743,478
3,732,559
- ------------
See Notes to Schedules of Investments and Financial Statements.
18
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TECHNOLOGY - SOFTWARE & SERVICES -- 3.0%
Cadence Design Systems Inc. 14,157 $ 187,580(a)
Compuware Corp. 18,222 474,911(a)
SunGard Data Systems Inc. 14,858 390,951(a)
1,053,442
UTILITIES -- 3.6%
El Paso Energy Corp. 10,513 418,549
Qwest Communications
International Inc. 18,222 538,688(a)
Sonat Inc. 7,008 278,130
1,235,367
TOTAL INVESTMENTS IN SECURITIES
(COST $29,878,983) 31,239,940
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.6%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $2,646,709) 2,646,709 2,646,709
OTHER ASSETS AND LIABILITIES,
NET 2.8% 982,895
-------------
NET ASSETS-- 100% $34,869,544
=============
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE MID-CAP GROWTH FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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 $6 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 FOR THE PERIOD
FROM THE FUND'S INCEPTION (DECEMBER 31, 1998) THROUGH SEPTEMBER 30, 1999?
A. During the period from inception of the fund (December 31, 1998) through
September 30, 1999, the Standard & Poor's MidCap 400 Index posted a return
of negative 2.07%. 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. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. A number of significant factors attributed to the performance of the fund
for the last nine months, in particular, favorable sector concentration and
strong individual stock selection. These factors significantly benefited the
fund during the first half of the year. However, we gave up some of these
early gains as the market sentiment turned unfavorable towards midcap stocks
and our core portfolio holdings of Aetna, Bank One, UNUMProvident, and Waste
Management incurred abrupt sell-offs on reduced earnings expectations. We
view these situations as severe overreactions by investors and expect these
investments to be positive contributors to the fund going forward.
Q. WHICH INVESTMENTS STAND OUT?
A. During the last nine months, the fund held positions in four companies that
received takeover proposals. These companies include MediaOne Group,
Cellular Communications of Puerto Rico, First Security, and Case. Our
investments in telecommunication and media companies Alltel, Telephone &
Data Systems, CoreComm, Cox Communications, NTL, and AT&T Liberty Media also
helped drive performance. Our energy investments BJ Services and Noble
Affiliates benefited due to higher energy prices.
Q. HOW DO YOU PICK STOCKS?
A. Our investment philosophy is to identify undervalued companies with
catalysts present to improve profitability and unlock value. Catalysts may
include new management, industry consolidation, restructuring, and a
positive turn in the fundamentals. We are value-oriented and invest in
attractive risk/reward opportunities. We do not chase the market mania for
internet, technology, and other growth stocks where we find risk/reward and
valuation parameters extremely unattractive.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Recently, the leadership of the stock market has been focused almost
exclusively on a small number of very high P/E (price/earning) stocks,
primarily in the technology sector. This narrowness has created many
attractive opportunities in other sectors of the market where expectations
and valuations are relatively low. We have been aggressively reviewing such
situations, making investments in those companies that we feel meet our
investment objectives with strong catalysts in place that will improve
profitability and increase the company's stock price. Recently added
positions in the fund have met these conditions include Delta Airlines,
Nabisco Group Holdings, and New Holland. As a group, we are maintaining our
large position in the financial sector of the market, which we feel
continues to benefit from reasonable earnings growth opportunities,
increasing industry-wide consolidation, and attractive valuations.
[PHOTO OF JON D. BOSSE OMITTED]
20
<PAGE>
GE MID-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Telephone & Data Systems Inc. 4.42%
- --------------------------------------------------------------------------------
NTL Inc. 4.35%
- --------------------------------------------------------------------------------
AT&T Corp. - Liberty Media Group 4.16%
- --------------------------------------------------------------------------------
MediaOne Group Inc. 3.09%
- --------------------------------------------------------------------------------
The E.W. Scripps Co. Inc. 3.07%
- --------------------------------------------------------------------------------
Praxair Inc. 2.91%
- --------------------------------------------------------------------------------
CoreComm Ltd. 2.73%
- --------------------------------------------------------------------------------
Loews Corp. 2.67%
- --------------------------------------------------------------------------------
Case Corp. 2.66%
- --------------------------------------------------------------------------------
Alltel Corp. 2.61%
- --------------------------------------------------------------------------------
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 as undervalued by
the market and have above-average
growth potential.
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 $10,000.00 $10,000.00 $10,000.00
1/99 10,060.00 9,481.55 9,610.70
2/99 9,580.00 9,029.15 9,107.48
3/99 10,100.00 9,519.25 9,361.95
4/99 11,070.00 10,433.47 10,100.42
5/99 11,110.00 10,471.17 10,144.15
6/99 11,500.00 10,838.75 10,687.37
7/99 10,970.00 10,339.22 10,460.26
8/99 10,370.00 9,773.72 10,101.69
9/99 9,830.00 9,264.84 9,789.85
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value (1.70)%
GE Mid-Cap Value
w/load (7.35)%
(maximum load-5.75%)
S&P MidCap 400 (2.07)%
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 $10,000.00 $10,000.00 $10,000.00
1/99 10,050.00 10,050.00 9,610.70
2/99 9,570.00 9,570.00 9,107.48
3/99 10,080.00 10,080.00 9,361.95
4/99 11,030.00 11,030.00 10,100.42
5/99 11,070.00 11,070.00 10,144.15
6/99 11,450.00 11,450.00 10,687.37
7/99 10,910.00 10,910.00 10,460.26
8/99 10,310.00 10,310.00 10,101.69
9/99 9,770.00 9,379.20 9,789.85
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value (2.30)%
GE Mid-Cap Value
w/load (6.21)%
maximum load 4.0%
S&P MidCap 400 (2.07)%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE EQUITY S&P 400 MIDCAP
12/31/98 $10,000.00 $10,000.00
1/99 10,060.00 9,610.70
2/99 9,580.00 9,107.48
3/99 10,100.00 9,361.95
4/99 11,070.00 10,100.42
5/99 11,110.00 10,144.15
6/99 11,510.00 10,687.37
7/99 10,970.00 10,460.26
8/99 10,380.00 10,101.69
9/99 9,840.00 9,789.85
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Mid-Cap Value (1.60)%
S&P MidCap 400 (2.07)%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
21
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
MID-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
FINANCIAL SERVICES 25.2%
CONSUMER 24.7%
TELECOMMUNICATIONS 14.1%
CASH & OTHER 7.5%
ENERGY 6.4%
CAPITAL GOODS 6.1%
MATERIALS & PROCESSING 5.7%
TECHNOLOGY 5.1%
HEALTHCARE 3.3%
TRANSPORTATION 1.9%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.5%
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
Case Corp. 5,900 $ 293,894
New Holland N.V. 8,000 128,000
Waste Management Inc. 6,700 128,975
York International Corp. 3,500 125,781
676,650
[ICON OMITTED] CONSUMER - DISCRETIONARY -- 19.6%
AT&T Corp. - Liberty Media
Group (Class A) 12,400 460,350(a)
Cox Communications Inc. 6,800 283,900(a)
Ford Motor Co. 5,600 281,050
Hasbro Inc. 9,900 212,231
Lear Corp. 4,600 161,863(a)
MediaOne Group Inc. 5,000 341,562(a)
Saks Inc. 5,500 83,531(a)
The E.W. Scripps Co. Inc. 6,900 338,963
2,163,450
CONSUMER - STABLE -- 5.1%
Alberto-Culver Co. (Class A) 6,300 123,244
Nabisco Group Holdings Corp. 10,600 159,000
Philip Morris Cos. Inc. 8,300 283,756
566,000
[ICON OMITTED] ENERGY -- 6.4%
BJ Services Co. 7,900 251,319(a)
Noble Affiliates Inc. 8,600 249,400
Tosco Corp. 8,100 204,525
705,244
[ICON OMITTED] FINANCIAL -- 17.7%
Bank of America Corp. 4,200 233,887
Bank One Corp. 5,100 177,544
Bear Stearns Cos. Inc. 5,775 221,977
Chase Manhattan Corp. 3,400 256,275
First Union Corp. 5,400 192,037
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Heller Financial Inc. 9,700 $ 218,250
Indymac Mortgage Holdings Inc. 14,600 219,000
UnionBanCal Corp. 6,800 246,500
Waddell & Reed Financial
Inc. (Class A) 8,600 190,813
1,956,283
HEALTHCARE -- 3.3%
Aetna Inc. 4,300 211,775
Pharmacia & Upjohn Inc. 3,200 158,800
370,575
[ICON OMITTED] INSURANCE -- 7.5%
Hartford Financial Services
Group Inc. 5,900 241,162
MGIC Investment Corp. 5,200 248,300
Torchmark Corp. 7,500 194,063
UNUMProvident Corp. 4,891 143,979
827,504
MATERIALS & PROCESSING -- 5.7%
Allegheny Teldyne Inc. 8,100 136,688
Lyondell Chemical Co. 12,700 169,862
Praxair Inc. 7,000 322,000
628,550
MISCELLANEOUS -- 4.0%
Loews Corp. 4,200 294,787
Tenneco Inc. 8,800 149,600
444,387
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 5.1%
Galileo International Inc. 5,400 217,350
Quantum Corp. - DLT &
Storage Systems 13,600 191,250(a)
Quantum Corp.- Hard Disk Drive 21,200 157,675(a)
566,275
[ICON OMITTED] TELECOMMUNICATIONS -- 14.1%
Alltel Corp. 4,100 288,537
CoreComm Ltd. 9,150 301,378(a)
NTL Inc. 5,000 480,469(a)
Telephone & Data Systems Inc. 5,500 488,469
1,558,853
TRANSPORTATION -- 1.9%
Delta Air Lines Inc. 4,300 208,550
TOTAL INVESTMENTS IN SECURITIES
(COST $10,874,083) 10,672,321
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.8%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $309,819) 309,819 309,819
OTHER ASSETS AND LIABILITIES,
NET 0.7% 75,665
------------
NET ASSETS-- 100% $11,057,805
============
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE MID-CAP VALUE EQUITY FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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. THE FUND IS MANAGED
BY PALISADE'S SENIOR INVESTMENT 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 AND LIPPER PEER
GROUP PERFORM FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The Russell 2000 Index was up 19.07% for the one-year period ended
September 30, 1999. The fund's Lipper peer group of 299 Small Cap Value
funds grew an average of 12.44% for the same period. 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 OUTPERFORM ITS BENCHMARK?
A. The fund participated in the spectacular fourth quarter rally which
occurred last year. During the first six months of 1999, the fund
underperformed the benchmark because we were not invested in many of the
high flying internet stocks which were included in the index at the time.
These stocks were excluded from the fund because they grew so quickly they
became mid-cap to large-cap companies which exceeded the market
capitalization parameters of the fund's guidelines. Russell rebalanced the
index on June 30, 1999, removing these companies from their index. After
the rebalancing, the fund's performance compared favorably to the index.
Due to widespread weakness in virtually all small-cap sectors, we were
somewhat defensive during the third quarter of 1999, maintaining cash
levels of approximately 5%. Because of this defensive posture, the fund
outperformed the Russell 2000 during the period.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. Despite the general weakness in virtually all small-cap sectors, we are
encouraged by the overall strength of the economy which is being driven by
consumers who have benefited from full employment and increased wages.
Based on this, we believe that conditions are in place for a strong holiday
season. Accordingly, the portfolios are overweighted in consumer cyclicals.
We have also increased our exposure to the financial services sector which
had been out of favor and now represents good value.
Q. WHAT DOMESTIC/WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS?
A. Domestically, concerns over the direction of interest rates dominated U.S.
markets while on the international front, the dollar's weakness vs. the Yen
was the major story. Both events caused considerable uncertainty which was
responsible for the widespread volatility of the financial markets. Gold
surged for the first time in nearly 20 years due to inflation fears.
Overseas, strong economies in Europe and Asia were responsible for an
upsurge in international markets although the earthquake in Taiwan resulted
in fears regarding computer chip shortages which held back the technology
sector.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Come January, we believe that Year 2000 concerns will have largely subsided
which means that we can once again focus on fundamentals. Low interest
rates and benign inflation will enable the strong domestic economy, which
has been fueled by consumers, to continue. As noted above, the portfolio is
well positioned to benefit from this trend by being overweighted in
consumer cyclicals. We also believe the convergence between
telecommunications and utilities which were recently deregulated represents
an interesting opportunity and we have invested in companies who we believe
will benefit in this environment.
[PHOTO OF JACK FEILER OMITTED]
23
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
InterTAN Inc. 4.37%
- --------------------------------------------------------------------------------
Eastern Enterprises 3.57%
- --------------------------------------------------------------------------------
Dollar Tree Stores Inc. 3.51%
- --------------------------------------------------------------------------------
NOVA Corp. 3.24%
- --------------------------------------------------------------------------------
Park Electrochemical Corp. 3.02%
- --------------------------------------------------------------------------------
Applebee's International Inc. 2.98%
- --------------------------------------------------------------------------------
Comdisco Inc. 2.90%
- --------------------------------------------------------------------------------
Handleman Co. 2.50%
- --------------------------------------------------------------------------------
New England Business Service Inc.2.40%
- --------------------------------------------------------------------------------
Polaroid Corp. 2.36%
- --------------------------------------------------------------------------------
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.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE SMALL-CAP VALUE EQUITY GE SMALL-CAP VALUE EQUITY W/LOAD RUSSELL 2000
9/30/980 $10,000.00 $10,000.00 $10,000.00
10/98 10,760.00 10,141.38 10,407.80
11/98 11,450.00 10,791.71 10,953.17
12/98 12,016.63 11,325.76 11,631.17
1/99 11,383.12 10,728.67 11,785.86
2/99 10,498.21 9,894.64 10,831.21
3/99 10,437.88 9,837.77 11,000.18
4/99 11,332.84 10,681.28 11,985.79
5/99 11,795.41 11,117.25 12,160.78
6/99 12,800.98 12,065.02 12,710.45
7/99 12,881.43 12,140.84 12,362.19
8/99 12,237.86 11,534.27 11,904.78
9/99 12,227.80 11,524.79 11,907.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Small-Cap Value 22.28% 22.21%
GE Small-Cap Value
w/load 15.25% 15.20%
(maximum load-5.75%)
Russell 2000 19.07% 19.01%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE SMALL-CAP VALUE EQUITY GE SMALL-CAP VALUE EQUITY W/LOAD RUSSELL 2000
9/30/980 $10,000.00 $10,000.00 $10,000.00
10/98 10,750.00 10,750.00 10,407.80
11/98 11,440.00 11,440.00 10,953.17
12/98 11,996.22 11,996.22 11,631.17
1/99 11,353.74 11,353.74 11,785.86
2/99 10,460.30 10,460.30 10,831.21
3/99 10,400.07 10,400.07 11,000.18
4/99 11,283.47 11,283.47 11,985.79
5/99 11,735.21 11,735.21 12,160.78
6/99 12,729.04 12,729.04 12,710.45
7/99 12,799.31 12,799.31 12,362.19
8/99 12,156.83 12,156.83 11,904.78
9/99 12,136.76 11,836.76 11,907.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Small-Cap Value 21.37% 21.30%
GE Small-Cap Value
w/load 17.37% 18.30%
maximum load 4.0% 3.0%
Russell 2000 19.07% 19.01%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE SMALL-CAP VALUE EQUITY RUSSELL 2000
9/30/98 $10,000.00 $10,000.00
10/98 10,760.00 10,407.80
11/98 11,460.00 10,953.17
12/98 12,021.58 11,631.17
1/99 11,387.80 11,785.86
2/99 10,502.53 10,831.21
3/99 10,442.17 11,000.18
4/99 11,347.56 11,985.79
5/99 11,810.32 12,160.78
6/99 12,816.31 12,710.45
7/99 12,906.85 12,362.19
8/99 12,273.07 11,904.78
9/99 12,252.95 11,907.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Small-Cap Value 22.53% 22.46%
Russell 2000 19.07% 19.01%
* LIPPER PERFORMANCE COMPARISON
SMALL CAP VALUE EQUITY PEER
GROUP BASED ON AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED 9/30/99
One Year
---------
Number of Funds in peer group: 299
Peer group average annual total return: 12.44%
Lipper categories in peer group: SMALL-CAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
24
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE SMALL-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
CONSUMER 30.3%
TECHNOLOGY 19.7%
FINANCIAL SERVICES 13.6%
CASH & OTHER 7.2%
UTILITIES 7.1%
MATERIALS & PROCESSING 5.9%
HEALTHCARE 5.4%
PRODUCER DURABLES 5.2%
MISCELLANEOUS 3.6%
AUTO & TRANSPORTATION 1.1%
REAL ESTATE INVESTMENT TRUST 0.9%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 92.8%
- --------------------------------------------------------------------------------
AUTO & TRANSPORTATION -- 1.1%
AAR Corp. 9,000 $ 162,000
Kirby Corp. 5,500 107,938(a)
269,938
[ICON OMITTED] CONSUMER - DISCRETIONARY -- 30.3%
AnnTaylor Stores Corp. 11,200 457,800(a)
Applebee's International Inc. 20,700 697,331
Callaway Golf Co. 7,800 95,063
Corporate Express Inc. 15,700 147,678(a)
Dollar Tree Stores Inc. 20,600 822,712(a)
Handleman Co. 44,200 585,650(a)
Interim Services Inc. 11,200 183,400(a)
InterTAN Inc. 52,200 1,024,425(a)
Iron Mountain Inc. 10,100 342,137(a)
ITC DeltaCom Inc. 8,800 242,000(a)
Korn/Ferry International 9,500 219,094(a)
Kroll-O'Gara Co. 7,200 120,150(a)
New Horizons Worldwide Inc. 14,375 228,203(a)
Pier 1 Imports Inc. 43,442 293,233
Pierce Leahy Corp. 15,900 377,625(a)
School Specialty Inc. 7,500 126,563(a)
Strayer Education Inc. 10,400 206,700
United Stationers Inc. 16,400 349,525(a)
Volt Information Sciences Inc. 18,900 458,325(a)
Zale Corp. 3,100 118,769(a)
7,096,383
[ICON OMITTED] FINANCIAL SERVICES -- 13.6%
AmeriCredit Corp. 25,900 386,881(a)
Dain Rauscher Corp. 10,900 534,100
Duff & Phelps Credit Rating Co. 3,500 279,781
Fair, Isaac & Co. Inc. 3,600 101,025
Indymac Mortgage Holdings Inc. 7,400 111,000
Investment Technology Group Inc. 18,200 418,600
Jefferies Group Inc. 3,200 66,800
National Data Corp. 12,100 314,600
NOVA Corp. 30,400 760,000(a)
The BISYS Group Inc. 4,700 220,459(a)
3,193,246
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
HEALTHCARE -- 5.4%
Chattem Inc. 19,600 $ 432,425(a)
Techne Corp. 9,100 285,513(a)
The Cooper Cos. Inc. 17,400 537,225
1,255,163
[ICON OMITTED] MATERIALS & PROCESSING -- 5.9%
Airgas Inc. 19,400 225,525(a)
Ball Corp. 6,800 299,625
Elcor Corp. 6,800 170,000
Kaydon Corp. 4,300 106,963
MKS Instruments Inc. 800 17,800(a)
New England Business Service Inc. 19,700 562,681
1,382,594
MISCELLANEOUS -- 3.6%
Eastern Enterprises 18,000 835,875
PRODUCER DURABLES -- 5.2%
Graco Inc. 3,500 114,844
HEICO Corp. (Class A) 11,500 221,375
L-3 Communications
Holdings Inc. 6,100 230,275(a)
Scott Technologies Inc. 22,400 442,400(a)
Terex Corp. 6,400 201,600(a)
1,210,494
REAL ESTATE INVESTMENT TRUST -- 0.9%
Mid-Atlantic Realty Trust 11,500 120,031
Sizeler Property Investors Inc. 10,000 86,875
206,906
[ICON OMITTED] TECHNOLOGY -- 19.7%
Affiliated Computer Services Inc. 4,100 166,563(a)
Arrow Electronics Inc. 17,100 301,388(a)
Comdisco Inc. 35,200 679,800
Credence Systems Corp. 3,700 166,038(a)
Etec Systems Inc. 3,000 112,875(a)
Galileo Technology Ltd. 5,600 140,000(a)
Jones Intercable Inc. (Class A) 4,900 264,906(a)
National Computer Systems Inc. 12,600 483,131
Nichols Research Corp. 13,700 364,762(a)
Park Electrochemical Corp. 21,500 706,812
Polaroid Corp. 21,300 553,800
SLI Inc. 14,600 311,163(a)
Transaction Systems Architects
Inc. (Class A) 8,500 228,969(a)
Ultratech Stepper Inc. 2,200 28,554(a)
Zebra Technologies Corp.
(Class A) 2,500 113,671(a)
4,622,432
[ICON OMITTED] UTILITIES -- 7.1%
Citizens Utilities Co. (Class B) 20,400 230,775
GST Telecommunications Inc. 9,200 64,688(a)
Intermedia Communications Inc. 17,200 374,100(a)
Niagara Mohawk Holdings Inc. 17,200 265,525(a)
- -------------
See Notes to Schedules of Investments and Financial Statements.
25
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
NUI Corp. 1,900 $ 47,025
Potomac Electric Power Co. 18,700 475,681
United Illuminating Co. 2,100 101,588
Washington Gas Light Co. 4,300 116,637
1,676,019
TOTAL INVESTMENTS IN SECURITIES
(COST $21,119,509) 21,749,050
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $1,803,640) 1,803,640 1,803,640
OTHER ASSETS AND LIABILITIES,
NET (0.5)% (123,445)
------------
NET ASSETS-- 100% $23,429,245
============
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE SMALL-CAP VALUE EQUITY FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
26
<PAGE>
GE GLOBAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PICTURED ON PAGE 32) MANAGES THE INTERNATIONAL EQUITY
INVESTMENT PROCESS AT GE INVESTMENTS. TOTAL ASSETS UNDER HIS MANAGEMENT EXCEED
$12 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 THE LEFT ON PAGE 32) CO-LEADS THE TEAM OF
PORTFOLIO 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 FUND'S BENCHMARK AND LIPPER PEERS PERFORM FOR
THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The GE Global Equity Fund's benchmark, the MSCI World Index, was up 29.47%
for the one-year period ended September 30, 1999. Our Lipper peer group of
284 Global funds posted an average return of 30.40% for the same period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. Performance was driven by strong stock selection in Europe, Asia and the
United States (U.S.) with many companies in the technology and
telecommunications sectors. European performance was led by Finnish
telecommunications company Sonera, French capital goods company Schneider
and United Kingdom/U.S.-based Vodafone AirTouch. Taiwan Semiconductor
Corporation led our performance in Asia and within the U.S., EMC and Intel
contributed to our outperformance.
Q. COMMENT ON THE ECONOMIC AND FINANCIAL ACTIVITIES IN JAPAN.
A. There is currently one theme only in Japan, restructuring. Japanese
companies, with a few exceptions, are very inefficient and have been
destroying shareholder value for most of the last decade. Many companies
are starting to restructure their operations by defining those businesses
that are core and disposing of the remainder. One of the most inefficient
sectors has been the banking sector. Banks have traditionally granted loans
to Keiretsu (trade group) members irrespective of the quality of the
borrowers. As the economy declined over the last decade, some borrowers
were unable to repay their loans. As the amount of non-performing loans
reached an unsustainable level, a number of banks have collapsed, most
notably, Long Term Credit Bank. This has prompted an urgent need to
restructure the entire Japanese banking system. Thus far, there have
already been merger announcements among Fuji Bank, the Industrial Bank of
Japan and Dai-Ichi Kangyo Bank and between Asahi Bank and Tokai Bank. There
will likely be more announcements to follow. Outside of the banking sector,
there have also been restructuring announcements from many industrial
companies. News of corporate restructuring, combined with what appears to
be a stronger Japanese economy, has led to investors being more positive on
the stock market and the Yen. Not surprisingly, the rise of the equity
market mirrors this restructuring theme. Those companies that have signaled
their intention to change have outperformed those that have been silent on
the matter.
Q. WHAT IS THE OUTLOOK FOR THE FUND?
A. The U.S. economy has remained very strong. Europe has picked up momentum and
much of Asia is showing encouraging signs of recovery. As a result investors
have stopped worrying about recession and are instead concerned that growth
might become unsustainably strong, causing inflation. We believe, however,
that global competition, new technology and increases in productivity will
keep inflation at bay and do not foresee anything that will derail current
economic expansion. Consequently, in positioning the fund going forward, we
are currently overweight in technology with investments in Taiwan
Semiconductor, EMC and Comverse as well as telecommunications with European
service providers Mannesmann and Sonera. The fund remains underweight in the
consumer goods sector relative to the benchmark.
27
<PAGE>
GE GLOBAL EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
AlliedSignal Inc. 2.40%
- --------------------------------------------------------------------------------
Mannesmann AG 2.23%
- --------------------------------------------------------------------------------
EMC Corp. 2.03%
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. 1.93%
- --------------------------------------------------------------------------------
Sonera Group Oyj 1.81%
- --------------------------------------------------------------------------------
AXA-UAP 1.75%
- --------------------------------------------------------------------------------
ING Groep N.V. 1.66%
- --------------------------------------------------------------------------------
Total S.A. 1.64%
- --------------------------------------------------------------------------------
Comverse Technology Inc. 1.56%
- --------------------------------------------------------------------------------
Preussag AG 1.46%
- --------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed
for investors who
seek long-term growth
of capital by
investing primarily
in equity securities
of companies around
the world.
* LIPPER PERFORMANCE COMPARISON
GLOBAL STOCK PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 284 111
Peer group
average annual
total return: 30.40% 12.92%
Lipper categories in peer group:
GLOBAL, GLOBAL 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 GLOBAL EQUITY FUND GE GLOBAL EQUITY FUND W/LOAD MSCI WORLD
2/22/93 $10,000.00 $10,000.00 $10,000.00
10,405.58 9,805.76 10,578.82
9/93 11,409.58 10,751.88 11,744.47
12,615.25 11,888.04 12,006.47
9/94 13,038.67 12,287.06 12,631.81
12,646.61 11,917.60 13,126.68
9/95 14,012.70 13,204.94 14,450.67
14,798.50 13,945.44 15,754.18
9/96 15,615.16 14,715.02 16,425.88
16,167.68 15,235.68 17,226.95
9/97 18,553.20 17,483.68 20,386.76
20,128.56 18,968.23 22,732.85
9/98 16,539.00 15,585.56 20,414.47
21,406.49 20,172.53 25,607.49
9/99 22,640.97 21,335.85 26,431.84
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Global Equity 36.89% 11.67% 13.17%
GE Global Equity w/load 29.04% 10.36% 12.16%
(maximum load-5.75%)
MSCI World 29.47% 15.91% 15.90%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY FUND GE GLOBAL EQUITY FUND W/LOAD MSCI WORLD
12/22/93 $10,000.00 $10,000.00 $10,000.00
10,257.78 10,257.78 10,060.53
9/94 10,569.61 10,569.61 10,584.52
10,206.22 10,206.22 10,999.19
9/95 11,269.36 11,269.36 12,108.59
11,860.62 11,860.62 13,200.83
9/96 12,464.76 12,464.76 13,763.66
12,854.81 12,854.81 14,434.91
9/97 14,698.12 14,698.12 17,082.59
15,895.50 15,895.50 19,048.44
9/98 13,017.00 13,017.00 17,105.81
16,789.26 16,789.26 21,457.88
9/99 17,683.36 17,683.36 22,148.64
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Global Equity 35.85% 10.84% 10.37%
GE Global Equity w/load 31.85% 10.84% 10.37%
maximum load 4.0% 0.0% 0.0%
MSCI World 29.47% 15.91% 14.83%
CLASS Y SHARES
[LINE GRAPH OMITTED]
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Global Equity 37.20% 11.96% 12.39%
MSCI World 29.47% 15.91% 15.54%
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
28
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE GLOBAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 54.5%
UNITED STATES 19.2%
OTHER REGIONS 6.4%
JAPAN 9.1%
CASH & OTHER 4.0%
PACIFIC RIM 6.8%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 95.8%
- --------------------------------------------------------------------------------
AUSTRALIA -- 1.6%
Brambles Industries Ltd. 26,619 $ 770,953
Cable & Wireless Optus (Ltd.) 105,558 227,380(a)
998,333
AUSTRIA -- 0.3%
VA Technologie AG 2,205 177,000
BRAZIL -- 0.3%
Uniao de Bancos Brasilieros
S.A. GDR 10,280 181,828
CANADA -- 1.6%
Celestica Inc. 4,682 230,751(a)
CGI Group Inc. (Class A) 13,249 261,499(a)
Clarica Life Insurance Co. 6,742 101,408(a)
Nortel Networks Corp. 7,911 403,461
997,119
DENMARK -- 0.9%
Novo-Nordisk AS (Series B) 4,919 584,514
FINLAND -- 4.2%
Helsingin Puhelin Oyj 543 22,996
Merita PLC (Series A) 67,327 378,255
Nokia Oyj (Series A) 5,449 487,612
Pohjola Group Insurance Corp.
(Series B) 2,741 129,787
Sampo Insurance Co. Ltd.
(Series A) 14,681 487,385
Sonera Group Oyj 40,012 1,158,033
2,664,068
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] FRANCE -- 14.7%
Aerospatiale Matra (Regd.) 11,550 $ 245,058(a)
Alstom 22,560 753,275(a)
AXA-UAP 8,842 1,117,709
Cap Gemini S.A. 5,196 818,262
Carrefour S.A. 4,351 695,841
Coflexip S.A. ADR 7,714 368,343
Elf Aquitaine S.A. ADR 1,211 211,324
Lagardere S.C.A. 15,405 639,112
Lyonnaise Des Eaux S.A. 2,504 404,986
Michelin CGDE (Regd.) (Class B) 14,255 672,247
Rhone-Poulenc S.A. (Class A) 12,836 662,420
Schneider S.A. 10,598 774,716
Societe Generale 1,935 398,404
STMicroelectronics N.V. 5,164 402,216
Total S.A. (Class B) 8,336 1,046,650
Vivendi 2,589 181,681
9,392,244
[ICON OMITTED] GERMANY -- 9.0%
Bayerische Vereinsbank AG 4,302 250,849
DaimlerChrysler AG 5,392 371,207
Deutsche Bank AG 8,549 571,719(a)
Fresenius Medical Care AG 9,581 634,108
Mannesmann AG 8,906 1,421,463
Metallgesellschaft AG 21,064 425,850
Muenchener Rueckverischerungs-
Gesellschaft AG (Regd.) 2,701 545,197(a)
Preussag AG 18,527 932,455
Veba AG 11,167 611,341
5,764,189
GREECE -- 0.7%
Alpha Credit Bank (Regd.) 660 52,891
Hellenic Telecommunication
Organization S.A. ADR 13,311 148,917
Hellenic Telecommunication
Organization S.A. 10,950 255,278
457,086
HONG KONG -- 1.7%
Giordano International Ltd. 218,000 172,595
Johnson Electric Holdings 185,000 893,098
1,065,693
IRELAND -- 1.1%
Bank of Ireland 43,932 357,606(a)
CRH PLC 19,807 376,832
734,438
ISRAEL -- 3.0%
Comverse Technology Inc. 10,579 997,732(a)
ECI Telecommunications Ltd. 19,449 480,147
Teva Pharmaceutical Industries
Ltd. ADR 8,158 410,449
1,888,328
- -------------
See Notes to Schedules of Investments and Financial Statements.
29
<PAGE>
GE GLOBAL EQUITY FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ITALY -- 1.9%
Banca Intesa S.p.A. 84,653 $ 353,995
Montedison S.p.A. 43,785 85,724(a)
Saipem 89,630 386,252
Telecom Italia Mobile S.p.A. 15,240 94,702
Telecom Italia S.p.A 30,896 268,259
1,188,932
[ICON OMITTED] JAPAN -- 9.1%
Asahi Bank Ltd. 14,000 100,300
Asahi Chemical Industry Co. Ltd. 58,000 322,102
Canon Inc. 20,000 580,633
Fujitsu Ltd. 20,000 621,839
Mazda Motor Corp. 87,000 435,081
Minebea Co. Ltd. 50,000 634,482
Mitsukoshi Ltd. 33,000 197,481(a)
NAMCO Ltd. 1,400 55,066
Promise Co. Ltd. 2,500 200,646
Shin-Etsu Chemical Co. 12,000 498,970
Sony Corp. 4,800 715,190
Sumitomo Electric Industries 42,000 574,265
The Fuji Bank Ltd. 15,000 181,776
Toshiba Corp. 95,000 705,516
5,823,347
MEXICO -- 1.5%
Desc S.A. de C.V. (Series B) 62,185 53,206
Desc S.A. de C.V. ADR (Class C) 6,207 103,967
Grupo Carso S.A. de C.V. ADR 31,697 259,519
Grupo Finaciero Banamex
Accival S.A. de C.V. (Class B) 136,675 245,869(a)
Grupo Televisa S.A. GDR 7,283 290,865(a)
953,426
NETHERLANDS -- 5.0%
IHC Caland N.V. 9,762 484,046
ING Groep N.V. 19,566 1,061,779
Ispat International N.V. (Class A) 10,011104,490
Koninklijke Ahold N.V. 16,046 527,578
Philips Electronics N.V. 7,484 752,536
Vendex KBB N.V. 8,592 246,842
3,177,271
PANAMA -- 0.0%
Panamerican Beverages Inc.
(Class A) 1,598 26,467
PHILIPPINES -- 0.2%
San Miguel Corp. S.A. 78,738 119,358
POLAND -- 0.3%
Telekomunikacja Polska
S.A. GDR 44,471 213,461(b)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PORTUGAL -- 0.6%
Banco Comercial Portugues
(Regd.) 7,970 $ 214,556
Jeronimo Martins, SGPS, S.A. 4,846 137,160
351,716
SOUTH KOREA -- 1.2%
Kookmin Bank 10,480 131,377(a)
Korea Telecom Corp. 1,455 89,824(a)
Korea Telecom Corp. ADR 4,112 152,144(a)
Pohang Iron & Steel Co. Ltd. 2,900 325,401
Pohang Iron & Steel Co. Ltd. ADR 2,479 77,623
776,369
SPAIN -- 1.8%
Argentaria S.A. 12,330 271,054
Repsol S.A. 6,981 136,603
Telefonica S.A. 48,345 773,165(a)
1,180,822
SWEDEN -- 3.1%
Autoliv Inc. SDR 22,147 835,277
Ericsson LM Telephone
(Series B) 18,208 564,486
Investor AB (Series B) 5,717 67,686(a)
Invik & Co. AB (Series B) 1,232 78,945
Kinnevik AB 2,394 42,515
NetCom Systems AB (Series B) 4,908 182,111(a)
Pharmacia & Upjohn Inc. 4,333 215,025
1,986,045
SWITZERLAND -- 2.0%
ABB AG 208 341,937
Credit Suisse Group 1,995 365,141
Novartis AG (Regd.) 270 400,013
Zurich Allied AG 342 190,519
1,297,610
TAIWAN -- 2.1%
Synnex Technology International
Corp. GDR 5,546 101,908(a,b)
Taiwan Semiconductor
Manufacturing Co. 292,617 1,230,374
1,332,282
[ICON OMITTED] UNITED KINGDOM -- 8.7%
Airtours PLC 114,455 729,684
BP Amoco PLC ADR 1,261 139,735
British Energy PLC 6,103 41,445(a)
British Steel PLC 114,314 289,820
Cable & Wireless
Communication PLC 51,750 529,067(a)
Cable & Wireless PLC 2,578 28,033
Commercial Union PLC 12,979 199,571
FKI PLC 104,547 328,741
Granada Group PLC 79,940 688,295
- -----------
See Notes to Schedules of Investments and Financial Statements.
30
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Invensys PLC 166,327 $ 807,781
Nycomed Amersham PLC 55,360 343,594
Railtrack Group PLC 9,436 199,152
Reed International PLC 37,172 223,366
Royal & Sun Alliance Insurance
Group PLC 59,305 471,571
Saatchi & Saatchi PLC 16,998 58,598
SEMA Group PLC 8,343 101,914
Somerfield PLC 119,652 258,048
The Great Universal Stores PLC 6,123 46,420
Vodafone AirTouch PLC ADR 1 238
Williams PLC 14,535 77,530
5,562,603
[ICON OMITTED] UNITED STATES -- 19.2%
Allergan Inc. 1,177 129,470
AlliedSignal Inc. 25,525 1,529,905
American Express Co. 893 120,220
Berkshire Hathaway Inc. (Class B) 44 81,664(a)
Bristol-Myers Squibb Co. 3,159 213,232
Burlington Northern Santa
Fe Corp. 11,944 328,460
Burlington Resources Inc. 2,121 77,947
Cardinal Health Inc. 12,636 688,662
Cisco Systems Inc. 2,179 149,398(a)
Citigroup Inc. 19,886 874,984
Colgate-Palmolive Co. 2,497 114,238
Comcast Corp. (Class A) 3,268 130,312
Dover Corp. 3,103 126,835
Ecolab Inc. 11,563 394,587
EMC Corp. 18,158 1,297,162(a)
Federal National Mortgage
Association 2,233 139,981
First Data Corp. 2,481 108,854
Gannett Co. Inc. 1,776 122,877
Home Depot Inc. 2,267 155,573
Intel Corp. 8,778 652,315
International Business
Machines Corp. 6,546 794,521
Interpublic Group of Cos. Inc. 4,979 204,761
Lowe's Cos. Inc. 2,397 116,854
MCI WorldCom Inc. 8,277 594,909(a)
Merck & Co. Inc. 3,159 204,743
Microsoft Corp. 1,198 108,494(a)
Morgan Stanley, Dean
Witter & Co. 4,354 388,322
SBC Communications Inc. 11,842 604,682
Schering-Plough Corp. 2,288 99,814
Sun Microsystems Inc. 2,838 263,934(a)
Wal-Mart Stores Inc. 2,690 127,943
Waste Management Inc. 6,709 129,148
Watson Pharmaceuticals Inc. 9,914 302,997(a)
Xerox Corp. 8,122 340,616
Zebra Technologies Corp.
(Class A) 12,275 558,129(a)
12,276,543
TOTAL COMMON STOCK
(COST $50,916,605) 61,171,092
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
- --------------------------------------------------------------------------------
Henkel KGaA
(COST $149,592) 1,971 $ 123,737
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 46 1,576(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $51,066,197) 61,296,405
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.7%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $465,330) 465,330 465,330
OTHER ASSETS AND LIABILITIES,
NET 3.3% 2,116,559
------------
NET ASSETS-- 100% $63,878,294
============
- --------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The GE Global Equity Fund invested in the following sectors at September 30,
1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Capital Equipment 29.02%
Services 25.50%
Finance 16.04%
Consumer Goods 11.85%
Multi Industry 6.68%
Energy 3.55%
Materials 3.32%
Cash and Other 4.04%
-------
100.00%
=======
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE GLOBAL EQUITY FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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'S BENCHMARK AND LIPPER PEERS
PERFORM FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The GE International Equity Fund's benchmark, the MSCI EAFE Index, was up
30.95% for the one-year period ended September 30, 1999. Our Lipper peer
group of 654 International funds posted an average return of 31.61% for the
same period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. At the start of the period in October 1998, the fund had a significantly
underweight position in Japan of 5.0% compared with the 20.4% weight in the
MSCI EAFE Index. With the Japanese index surging 77.4% during this period,
the underweighting has severely hindered performance. This was compensated
by good stock selection around the world, primarily in Europe. By September
our Japanese weighting had increased to 12.4% as we found more companies
restructuring as the year progressed, meeting our investment criteria of
cash earnings growth exceeding the price to cash earnings. Top performance
contributors were telecoms equipment manufacturer Nokia of Finland,
cellular telecoms operator Mannesmann of Germany, the Taiwanese
semiconductor manufacturer Taiwan Semiconductor, and the British
engineering company Invensys.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND RECENTLY BASED ON CURRENT MARKET
EVENTS?
A. During the last several months, a number of Japanese companies announced
restructuring plans. After extensive research and analysis, we found a few
companies where the increase in cash flows is accompanied by reasonable
valuations. As a result, we increased our exposure to the Japanese market
by starting new positions in Asahi Bank, Fuji Bank, Fujitsu and Asahi
Chemical. Other new investments include the French utility company Vivendi
and the German engineering company Metallgesellschaft.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The economic environment in Europe has slowed somewhat since the beginning
of the year, with Gross Domestic Product growth forecasts for 1999 being in
the 1.5% to 2.0% range, compared with 2.5% to 3.0% range earlier this year.
Economies are expected to improve in 2000, as the benefits of the
introduction of the Euro, lower interest rates and recent deregulatory
changes take effect. In addition, there has been a very high level of
corporate merger activity which will lead to improvements in efficiencies
and higher margins. So far, the merger and acquisition activity has been
mainly within countries, we expect there will be more cross border activity
in the future.
Europe is not the only region of the world to experience a high level of
corporate merger and acquisition activity. Japan is also experiencing
mergers, the high profile ones have been between banks and other financial
companies, within the chemical sector and also in the car manufacturing
sector with the link between Renault of France and Nissan. With
profitability within corporate Japan being so poor, we anticipate that
there will be further corporate link-ups in the future, especially as the
Japanese government introduces legislation which will break down some of
the barriers which have previously deterred such restructuring. This should
lead to corporate managements becoming more profit oriented and shareholder
friendly. However, corporate Japan is at the start of a restructuring
period. When assessing restructuring progress, heavy skepticism needs to be
applied to wean out the winners from the losers.
(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 SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Mannesmann AG 3.13%
- --------------------------------------------------------------------------------
AXA-UAP 2.47%
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. 2.44%
- --------------------------------------------------------------------------------
ING Groep N.V. 2.35%
- --------------------------------------------------------------------------------
Total S.A. 2.31%
- --------------------------------------------------------------------------------
Preussag AG 2.06%
- --------------------------------------------------------------------------------
Autoliv Inc. SDR 1.85%
- --------------------------------------------------------------------------------
Invensys PLC 1.68%
- --------------------------------------------------------------------------------
Schneider S.A. 1.66%
- --------------------------------------------------------------------------------
Telefonica S.A. 1.64%
- --------------------------------------------------------------------------------
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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 654 224
Peer group
average annual
total return: 31.61% 9.19%
Lipper categories in peer group:
INTERNATIONAL, CANADIAN,
INTERNATIONAL 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 INT'L EQUITY FUND GE INT'L EQUITY FUND W/LOAD MSCI EAFE
3/2/94 $10,000.00 $10,000.00 $10,000.00
9,760.00 9,195.98 9,569.11
9/94 10,126.66 9,541.46 10,067.63
9,703.64 9,142.89 10,150.54
9/95 10,649.18 10,033.80 10,650.70
11,379.76 10,722.16 11,402.31
9/96 11,877.76 11,191.38 11,568.67
12,543.60 11,818.75 11,568.12
9/97 14,109.82 13,294.46 12,977.06
15,473.21 14,579.07 13,720.41
9/98 12,882.00 12,137.17 11,895.38
15,519.80 14,622.93 14,551.79
9/99 16,163.52 15,229.45 15,576.45
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Int'l Equity 25.48% 9.80% 8.98%
GE Int'l Equity w/load 18.28% 8.51% 7.82%
(maximum load-5.75%)
MSCI EAFE 30.95% 9.12% 8.25%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND GE INT'L EQUITY FUND W/LOAD MSCI EAFE
3/2/94 $10,000.00 $10,000.00 $10,000.00
9,753.33 9,753.33 9,569.11
9/94 10,086.65 10,086.65 10,067.63
9,629.36 9,629.36 10,150.54
9/95 10,523.58 10,523.58 10,650.70
11,210.92 11,210.92 11,402.31
9/96 11,658.03 11,658.03 11,568.67
12,257.71 12,257.71 11,568.12
9/97 13,740.18 13,740.18 12,977.06
15,011.34 15,011.34 13,720.41
9/98 12,450.00 12,450.00 11,895.38
14,946.19 14,946.19 14,551.79
9/99 15,508.21 15,508.21 15,576.45
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Int'l Equity 24.56% 8.98% 8.18%
GE Int'l Equity w/load 20.56% 8.98% 8.18%
maximum load 4.0% 0.0% 0.0%
MSCI EAFE 30.95% 9.12% 8.25%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY FUND MSCI EAFE
3/2/94 $10,000.00 $10,000.00
9,760.00 9,569.11
9/94 10,146.67 10,067.63
9,733.29 10,150.54
9/95 10,699.89 10,650.70
11,461.43 11,402.31
9/96 11,980.87 11,568.67
12,669.13 11,568.12
9/97 14,276.37 12,977.06
15,697.18 13,720.41
9/98 13,085.00 11,895.38
15,781.79 14,551.79
9/99 16,450.89 15,576.45
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Int'l Equity 25.72% 10.15% 9.32%
MSCI EAFE 30.95% 9.12% 8.25%
33
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE INTERNATIONAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 70.9%
JAPAN 12.4%
PACIFIC RIM 8.0%
OTHER REGIONS 7.9%
CASH & OTHER 0.8%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.9%
- --------------------------------------------------------------------------------
AUSTRALIA -- 2.1%
Brambles Industries Ltd. 31,945 $ 925,207
Cable & Wireless Optus Ltd. 126,644 272,801(a)
1,198,008
AUSTRIA -- 0.4%
VA Technologie AG 2,612 209,670
BRAZIL -- 0.4%
Uniao de Bancos Brasilieros
S.A. GDR 11,795 208,624
CANADA -- 2.0%
Celestica Inc. 4,873 239,984(a)
CGI Group Inc. (Class A) 15,900 313,823(a)
Clarica Life Insurance Co. 6,000 90,247(a)
Nortel Networks Corp. 9,494 484,194
1,128,248
DENMARK -- 1.2%
Novo-Nordisk AS (Series B) 5,902 701,321
FINLAND -- 3.1%
Merita PLC (Series A) 77,811 437,156
Nokia Oyj (Series A) 6,474 579,336
Pohjola Group Insurance Corp.
(Series B) 2,601 123,158
Sampo Insurance Co. Ltd.
(Series A) 17,618 584,888
1,724,538
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] FRANCE -- 20.1%
Aerospatiale Matra (Regd.) 14,684 $ 311,552(a)
Alstom 27,075 904,031(a)
AXA-UAP 11,027 1,393,913
Cap Gemini S.A. 5,869 924,246
Carrefour S.A. 5,221 834,977
Coflexip S.A. ADR 8,095 386,536
Elf Aquitaine S.A. ADR 1,625 283,569
Lagardere S.C.A. 18,476 766,519
Lyonnaise Des Eaux S.A. 3,005 486,015
Michelin CGDE (Regd.) (Class B) 16,847 794,482
Rhone-Poulenc S.A. (Class A) 15,407 795,100
Schneider S.A. 12,781 934,294
Societe Generale 2,644 544,382
STMicroelectronics N.V. 6,196 482,597
Total S.A. (Class B) 10,397 1,305,425
Vivendi 2,735 191,926
11,339,564
[ICON OMITTED] GERMANY -- 12.4%
Bayerische Vereinsbank AG 5,164 301,112
DaimlerChrysler AG 6,471 445,490
Deutsche Bank AG 10,256 685,875(a)
Fresenius Medical Care AG 11,291 747,282
Mannesmann AG 11,069 1,766,694
Metallgesellschaft AG 24,413 493,556
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) 3,241 654,196(a)
Preussag AG 23,152 1,165,230
Veba AG 13,371 732,000
6,991,435
GREECE -- 1.0%
Alpha Credit Bank (Regd.) 739 59,222
Hellenic Telecommunication
Organization S.A. ADR 15,976 178,732
Hellenic Telecommunication
Organization S.A. GDR 12,990 302,836
540,790
HONG KONG -- 1.3%
Giordano International Ltd. 262,000 207,431
Johnson Electric Holdings Ltd. 113,900 549,859
757,290
IRELAND -- 1.6%
Bank of Ireland 52,662 428,668(a)
CRH PLC 23,815 453,085
881,753
ISRAEL -- 3.4%
Comverse Technology Inc. 9,298 876,917(a)
ECI Telecommunications Ltd. 23,341 576,231
- -------------
See Notes to Schedules of Investments and Financial Statements.
34
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd. ADR 9,791 $ 492,610
1,945,758
ITALY -- 2.5%
Banca Intesa S.p.A. 101,595 424,841
Montedison S.p.A. 32,450 63,532(a)
Saipem 107,565 463,541
Telecom Italia Mobile S.p.A. 18,507 115,003
Telecom Italia S.p.A 37,094 322,074
1,388,991
[ICON OMITTED] JAPAN -- 12.4%
Asahi Bank Ltd. 17,000 121,793
Asahi Chemical Industry Co. Ltd. 71,000 394,297
Canon Inc. 25,000 725,791
Fujitsu Ltd. 23,000 715,115
Mazda Motor Corp. 106,000 530,099
Minebea Co. Ltd. 60,000 761,379
Mitsukoshi Ltd. 40,000 239,371(a)
NAMCO Ltd. 1,700 66,866
Promise Co. Ltd. 2,600 208,672
Shin-Etsu Chemical Co. 16,000 665,293
Sony Corp. 5,800 864,188
Sumitomo Electric Industries 50,000 683,649
The Fuji Bank Ltd. 13,000 157,539
Toshiba Corp. 114,000 846,619
6,980,671
MEXICO -- 2.1%
Desc S.A. de C.V. (Series B) 62,442 53,427
Desc S.A. de C.V. ADR (Class C) 9,387 157,232
Grupo Carso S.A. de C.V. ADR 38,040 311,452
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 164,023 295,066(a)
Grupo Televisa S.A. GDR 8,695 347,257(a)
1,164,434
[ICON OMITTED] NETHERLANDS -- 6.8%
CSM N.V. 125 6,005
IHC Caland N.V. 11,716 580,934
ING Groep N.V. 24,410 1,324,646
Ispat International N.V. (Regd.)
(Class A) 9,383 97,935
Koninklijke Ahold N.V. 19,352 636,277
Philips Electronics N.V. 8,981 903,064
Vendex KBB N.V. 10,759 309,099
3,857,960
PANAMA -- 0.0%
Panamerican Beverages Inc. (Class A) 283 4,687
PHILIPPINES -- 0.2%
San Miguel Corp. S.A. 71,717 108,715
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
POLAND -- 0.4%
Telekomunikacja Polska S.A.
GDR (Series A) 52,938 $ 254,102(b)
PORTUGAL -- 0.6%
Banco Comercial Portugues
(Regd.) 9,404 253,160
Jeronimo Martins, SGPS, S.A. 3,509 99,318
352,478
SOUTH KOREA -- 1.7%
Kookmin Bank 12,490 156,574(a)
Korea Telecom Corp. ADR 4,933 182,521(a)
Korea Telecom Corp. 2,005 123,778
Pohang Iron & Steel Co. Ltd. 3,400 381,504
Pohang Iron & Steel Co. Ltd. ADR 2,973 93,092
937,469
SPAIN -- 2.5%
Argentaria, Caja Postal y Banco
Hipotecario de Espana, S.A. 14,800 325,352
Repsol S.A. 8,377 163,920
Telefonica S.A. 58,007 927,687
1,416,959
SWEDEN -- 4.1%
Autoliv Inc. SDR 27,737 1,046,104
Ericsson LM Telephone (Series B) 21,851 677,426
Investor AB (Series B) 4,248 50,294(a)
Invik & Co. AB 941 60,299
Kinnevik AB (Series B) 1,200 21,311
NetCom Systems AB (Series B) 6,222 230,866(a)
Pharmacia & Upjohn Inc. 5,200 258,050
2,344,350
SWITZERLAND -- 2.8%
ABB AG 250 410,982
Credit Suisse Group 2,426 444,027
Novartis AG (Regd.) 324 480,016
Zurich Allied AG 410 228,399
1,563,424
TAIWAN -- 2.7%
Synnex Technology International
Corp. GDR 6,693 122,984(a,b)
Taiwan Semiconductor
Manufacturing Co. 327,923 1,378,826
1,501,810
[ICON OMITTED] UNITED KINGDOM -- 11.1%
Airtours PLC 137,357 875,691
British Energy PLC 3,891 26,424(a)
British Steel PLC 137,149 347,714
- -------------
See Notes to Schedules of Investments and Financial Statements.
35
<PAGE>
GE INTERNATIONAL EQUITY FUND SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Cable & Wireless
Communication PLC 62,106 $ 634,942(a)
Cable & Wireless PLC 609 6,622
Commercial Union PLC 15,576 239,503
FKI PLC 125,476 394,551
Granada Group PLC 95,936 826,023
Invensys PLC 194,827 946,194
Nycomed Amersham PLC 66,405 412,146
Railtrack Group PLC 11,322 238,957
Reed International PLC 44,145 265,267
Royal & Sun Alliance Insurance
Group PLC 73,169 581,813
Saatchi & Saatchi PLC 11,692 40,306
SEMA Group PLC 6,938 84,751
Somerfield PLC 142,503 307,329
Williams PLC 12,170 64,915
6,293,148
TOTAL COMMON STOCK
(COST $50,430,576) 55,796,197
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.3%
- --------------------------------------------------------------------------------
Henkel KGaA
(COST $214,862) 2,831 177,727
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 57 1,953(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $50,645,438) 55,975,877
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.0%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $1,000) 1,000 1,000
OTHER ASSETS AND LIABILITIES,
NET 0.8% 471,526
------------
NET ASSETS-- 100% $56,448,403
============
- --------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The GE International Equity Fund invested in the following sectors at September
30, 1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Capital Equipment 28.86%
Services 23.65%
Finance 18.31%
Consumer Goods 13.81%
Multi Industry 5.46%
Materials 4.62%
Energy 4.45%
Cash and Other 0.84%
--------
100.00%
========
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE GE
INTERNATIONAL EQUITY FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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 FROM
THE FUND'S INCEPTION (JANUARY 29,1999) THROUGH SEPTEMBER 30, 1999?
A. The MSCI Europe Index posted a return of negative 0.63% for the period
since the inception of the fund (January 29,1999) through September 30,
1999. To see how your class of shares of the GE Europe Equity Fund
performed compared to its benchmark, please refer to page 38.
Q. WHAT CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. The largest performance drivers in the fund since its inception, in
January, were within the telecommunications, energy and capital equipment
sectors. United Kingdom based Kingston Communication, Finnish based Sonera
and German based Mannesmann were positive contributors to performance.
Capital equipment groups ABB and Alstom merged their power generation
equipment businesses to create the world's largest such company. French
based oil company Elf Aquitaine agreed to merge with newly created Total
Fina to create one of the world's largest oil groups.
Q. WHAT ARE THE CURRENT INVESTMENT OPPORTUNITIES IN EUROPE?
A. Europe has changed considerably throughout the 1990s and a number of
positive catalysts have developed along the way that will continue to drive
growth. Interest rates have fallen significantly during the decade as
inflation rates have converged. Long-term interest rates in Spain and Italy
were in the double digits as recently as four years ago-- today they have
converged to near 5.5%. Inflation rates are currently 1.5% and likely to
remain below the ECB( European Central Bank) target of 2% for the near
future. We believe the combination of low inflation with deregulation and
increased competition creates a dynamic environment rich in restructuring
and re-engineering opportunities. Using 1980 as a base year, France and
Germany managed to reduce their manufacturing workforce by nearly 30%. With
double-digit unemployment rates, the Europeans are very familiar with the
concept of "Corporate Downsizing". During this process many industrial
conglomerates successfully re-balanced their business mix by reducing their
dependence on pure manufacturing and increased their service and technology
content. As a result, companies have managed to improve their returns and
equity investors have re-rated their shares. Deregulation, low interest
rates and a single economic zone have accelerated merger and acquisition
activity in Europe recently. After $840 billion in activity in 1998, 1999
is set to break the $1 trillion level. These business combinations are
creating global leaders at reasonable valuations. For example, French based
Carrefour and Promodes merged to form one of the world's largest retailers;
Siebe and BTR merged to form a leading process control group; and BNP and
Paribas, two French based banks, have created the largest bank in Europe.
With high savings rates, low interest rates and a dynamic corporate
environment, Europeans are allocating more to equities. We believe it will
continue.
Q. WHAT IS THE OUTLOOK FOR THE FUND?
A. The fund is currently overweight in capital goods and telecommunications
companies with positions in Invensys, ABB, Ericsson and Mannesmann. We are
currently underweighted in banks preferring the low valuations of insurance
companies within the European financial services sector.
(PICTURED LEFT TO RIGHT: C. SALDANHA, W. CHU, M. SOLECKI)
[PHOTO OF C. SALDANHA, W. CHU, M. SOLECKI OMITTED]
37
<PAGE>
GE EUROPE EQUITY FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Mannesmann AG 3.56%
- --------------------------------------------------------------------------------
Total S.A. 3.52%
- --------------------------------------------------------------------------------
AXA-UAP 3.21%
- --------------------------------------------------------------------------------
Kingston Communication (Hull) PLC2.84%
- --------------------------------------------------------------------------------
Rhone-Poulenc S.A. 2.79%
- --------------------------------------------------------------------------------
Philips Electronics N.V. 2.64%
- --------------------------------------------------------------------------------
ING Groep N.V. 2.37%
- --------------------------------------------------------------------------------
Invensys PLC 2.20%
- --------------------------------------------------------------------------------
Ericsson LM Telephone 2.17%
- --------------------------------------------------------------------------------
Autoliv Inc. SDR 2.14%
- --------------------------------------------------------------------------------
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.
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 $10,000.00 $10,000.00 $10,000.00
2/99 9,470.00 8,925.47 9,746.20
3/99 9,620.00 9,066.85 9,852.43
4/99 9,910.00 9,340.17 10,146.04
5/99 9,380.00 8,840.65 9,658.72
6/99 9,670.00 9,113.97 9,821.76
7/99 10,120.00 9,538.10 9,913.01
8/99 10,240.00 9,651.20 10,013.72
9/99 9,930.00 9,359.10 9,936.52
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (0.70)%
GE Europe Equity
w/load (6.41)%
(maximum load-5.75%)
MSCI Europe (0.63)%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
1/29/99 $10,000.00 $10,000.00 $10,000.00
2/99 9,470.00 9,470.00 9,746.20
3/99 9,610.00 9,610.00 9,852.43
4/99 9,890.00 9,890.00 10,146.04
5/99 9,360.00 9,360.00 9,658.72
6/99 9,640.00 9,640.00 9,821.76
7/99 10,080.00 10,080.00 9,913.01
8/99 10,200.00 10,200.00 10,013.72
9/99 9,880.00 9,484.80 9,936.52
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (1.20)%
GE Europe Equity
w/load (5.15)%
maximum load 4.0%
MSCI Europe (0.63)%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY MSCI EUROPE
1/29/99 $10,000.00 $10,000.00
2/99 9,470.00 9,746.20
3/99 9,630.00 9,852.43
4/99 9,920.00 10,146.04
5/99 9,390.00 9,658.72
6/99 9,680.00 9,821.76
7/99 10,130.00 9,913.01
8/99 10,250.00 10,013.72
9/99 9,940.00 9,936.52
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Europe Equity (0.60)%
MSCI Europe (0.63)%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
38
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE EUROPE EQUITY FUND
[PIE CHART OMITTED]
DEVELOPED EUROPE 91.8%
CASH & OTHER 3.6%
EMERGING EUROPE 3.2%
OTHER REGIONS 1.4%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.2%
- --------------------------------------------------------------------------------
BELGIUM -- 0.2%
Telinfo N.V. 218 $ 20,877
DENMARK -- 1.9%
Novo-Nordisk AS (Series B) 1,323 157,209
Tele Danmark AS (Series B) 842 50,147
207,356
[ICON OMITTED] FINLAND -- 4.4%
Nokia Oyj (Series A) 1,080 96,646
Perlos Oyj 2,000 26,920(a)
Pohjola Group Insurance Corp.
(Series B) 638 30,209
Sampo Insurance Co. Ltd.
(Series A) 3,824 126,951
Sonera Group Oyj 6,882 199,180
479,906
[ICON OMITTED] FRANCE -- 24.7%
Aerospatiale Matra (Regd.) 2,880 61,106(a)
Alstom 5,513 184,078(a)
AXA-UAP 2,775 350,785
Cap Gemini S.A. 943 148,503
Carrefour S.A. 899 143,774
Coflexip S.A. ADR 516 24,639
Credit Lyonnais 5,079 149,213(a)
Elf Aquitaine S.A. ADR 581 101,387
Lagardere S.C.A. 5,287 219,343
Michelin CGDE (Regd.) (Class B) 2,930 138,175
Rhone-Poulenc S.A. (Class A) 5,920 305,510
Schneider S.A. 3,073 224,637
Societe Generale 666 137,125
STMicroelectronics N.V. 1,350 105,149
Total S.A. (Class B) 3,068 385,212
Vivendi 357 25,052
2,703,688
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] GERMANY -- 11.4%
Deutsche Bank AG 1,468 $ 98,173(a)
Fresenius Medical Care AG 3,188 210,994
Mannesmann AG 2,439 389,282
Metallgesellschaft AG 6,692 135,292
Muenchener Rueckverischerungs-
Gesellschaft AG (Regd.) 150 30,278
Preussag AG 4,461 224,520
Veba AG 2,955 161,773
1,250,312
GREECE -- 2.7%
Antenna TV S.A. ADR 11,701 108,234(a)
Hellenic Telecommunication
Organization S.A. ADR 7,543 84,387
Hellenic Telecommunication
Organization S.A. GDR 3,710 86,492
STET Hellas Telecommunications
S.A. ADR 880 16,610(a)
295,723
IRELAND -- 3.3%
Bank of Ireland 17,347 141,204(a)
CRH PLC 10,070 191,584
Jefferson Smurfit Group PLC 10,824 31,950
364,738
ITALY -- 2.7%
Banca Intesa S.p.A. 7,710 32,241
Saipem 32,848 141,555
Telecom Italia S.p.A 14,048 121,974
295,770
[ICON OMITTED] NETHERLANDS -- 10.0%
CSM N.V. 375 18,016
IHC Caland N.V. 4,341 215,247
ING Groep N.V. 4,769 258,797
Ispat International N.V. (Regd.)
(Class A) 1,318 13,757
Koninklijke Ahold N.V. 4,231 139,112
Koninklijke Hoogovens N.V. 194 11,002
Koninklijke KPN N.V. 427 18,696
Philips Electronics N.V. 2,875 289,089
Unique International N.V. 1,404 32,418
Vendex KBB N.V. 3,385 97,249
1,093,383
POLAND -- 0.5%
Telekomunikacja Polska S.A.
GDR (Series A) 12,045 57,816(b)
PORTUGAL -- 2.1%
Jeronimo Martins, SGPS, S.A. 2,516 71,212
Portugal Telecom S.A. 274 11,394
Telecel-Comunicacoes
Pessoais S.A. 1,157 142,660
225,266
- ----------
See Notes to Schedules of Investments and Financial Statements.
39
<PAGE>
GE EUROPE EQUITY FUND SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SPAIN -- 3.5%
Argentaria, Caja Postal y Banco
Hipotecario de Espana, S.A. 3,124 $ 68,676
Sol Melia S.A. 7,952 95,782(a)
Telefonica Publicidad e
Informacion S.A. 1,415 32,748(a)
Telefonica S.A. 11,406 182,412(a)
379,618
SWEDEN -- 4.3%
Autoliv Inc. SDR 6,202 233,909
Ericsson LM Telephone (Series B) 7,660 237,476
471,385
SWITZERLAND -- 3.5%
ABB AG 71 116,719
ABB Ltd. 404 41,677(a)
Credit Suisse Group 468 85,657
Novartis AG (Regd.) 93 137,782
381,835
[ICON OMITTED] UNITED KINGDOM -- 19.6%
Airtours PLC 21,027 134,053
BG PLC 6,778 38,944
British Energy PLC 7,529 51,129(a)
British Steel PLC 11,825 29,980
Cable & Wireless
Communication PLC 17,675 180,701(a)
Cable & Wireless PLC 16,207 176,232
Commercial Union PLC 7,800 119,936
Dixons Group PLC 590 10,578
FKI PLC 11,794 37,086
Granada Group PLC 24,498 210,931
Invensys PLC 49,498 240,391
Kingston Communication
(Hull) PLC 45,855 310,268(a)
Mayflower Corp. PLC 8,991 33,230
Nycomed Amersham PLC 14,138 87,748
Reed International PLC 21,098 126,778
Royal & Sun Alliance
Insurance Group PLC 14,726 117,096
Somerfield PLC 44,839 96,702
Tesco PLC 5,215 16,312
United Assurance Group PLC 15,938 102,856
Williams PLC 4,785 25,523
2,146,474
UNITED STATES -- 1.4%
Global TeleSystems Group, Inc. 4,989 98,377(a)
UnitedGlobalCom Inc. 506 36,242(a)
Viatel Inc. 412 12,180(a)
146,799
TOTAL COMMON STOCK
(COST $10,564,405) 10,520,946
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.2%
- --------------------------------------------------------------------------------
ProSieben Media AG
(COST $21,524) 471 $ 20,297
TOTAL INVESTMENTS IN SECURITIES
(COST $10,585,929) 10,541,243
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.5%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $159,451) 159,451 159,451
OTHER ASSETS AND LIABILITIES,
NET 2.1% 233,357
------------
NET ASSETS-- 100% $10,934,051
============
- --------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The GE Europe Equity Fund invested in the following sectors at September 30,
1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Services 33.89%
Capital Equipment 17.53%
Finance 16.91%
Consumer Goods 13.48%
Energy 6.75%
Multi Industry 5.30%
Materials 2.55%
Cash and Other 3.59%
-------
100.00%
=======
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE EUROPE EQUITY FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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 FOR THE PERIOD FROM
THE FUND'S INCEPTION (JANUARY 29,1999) THROUGH SEPTEMBER 30, 1999?
A. The MSCI Emerging Markets Free Index posted a return of 34.83% for the
period since the inception of the fund (January 29, 1999) through September
30, 1999. To see how your class of shares of the GE Emerging Markets Fund
performed compared to its benchmark, please refer to page 42.
Q. WHAT DROVE THE FUND'S PERFORMANCE?
A. Stock selection in Asia and Emerging Europe were the primary drivers of our
performance this year. Our holdings in India have strongly outperformed the
Asian index, especially our media and information technology ("IT") services
stocks. In Emerging Europe, our Greek names have posted large returns,
especially Petzetakis, a pipe manufacturer (+466% since the fund's
inception), and Delta Informatics, an IT services firm (+255% since the
fund's inception). Our regional asset allocation has been hurt by our
underweight in Asia, especially in the strong Korean market.
Q. WHAT CHANGES HAVE YOU MADE RECENTLY IN THE FUND BASED ON CURRENT MARKET
EVENTS?
A. In Emerging Asia, we reduced our exposure to Korea in the last quarter, and
increased the weights of our Taiwan holdings. Despite continuing financial
and corporate restructuring, and the strong commitment of the government to
reform, we felt that the Korean market was being driven by excess domestic
liquidity and that prices had moved ahead of the fundamentals. In Emerging
Europe/Africa, recent trading has been largely limited to the existing
names in the portfolio. We consistently trimmed positions in Greece, taking
advantage of the market's strength, and in some cases, the increased
liquidity. The proceeds were partly used to increase our exposure to the
technology holdings in Israel. Other new positions initiated include
Johnnies Industries in South Africa as an alternative route to investing in
the cellular provider M-Cell, and Netia Holdings, which provides telecom
services for businesses in Poland.
In Latin America, we started a position in Alfa, a Mexican conglomerate that
will benefit from rising petrochemical prices.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. Despite the reasonably positive backdrop, we have modest expectations for
the emerging markets in the fourth quarter of 1999. Our concern is that
global money managers will adopt a wait-and-see stance ahead of the Year
2000 computer issue, and the U.S. Federal Reserve's decision on future
interest rate hikes. We expect to turn more positive on the asset class in
2000 when stronger economic growth worldwide should translate into another
good year. We continue to emphasize stock picking in our fund. Emerging
markets are increasingly populated with entrepreneurial firms in the
telecommunications, media and technology sectors which tend to offer
investors high growth with reasonable valuations. We are optimistic on the
outlook for these companies and would highlight the following-- first these
newer firms offer higher value-added services than the traditional emerging
market enterprises. Secondly, the large percentage of overseas revenues for
these firms should shield them from local economic troubles. Finally, these
firms appear to be attractively valued relative to their peers in the
developed world.
[PHOTO OF D. MOTOYOSHI, P. NESTRO, P. GILLESPIE, M. SUMINO, P. ZHOU OMITTED]
(PICTURED LEFT TO RIGHT: D. MOTOYOSHI, P. NESTRO, P. GILLESPIE, M. SUMINO,
P. ZHOU)
41
<PAGE>
GE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. 2.92%
- --------------------------------------------------------------------------------
NIIT Ltd. 2.64%
- --------------------------------------------------------------------------------
Satyam Computer Services Ltd. 2.20%
- --------------------------------------------------------------------------------
Datacraft Asia Ltd. 2.07%
- --------------------------------------------------------------------------------
Telecomunicacoes Brasileiras S.A.2.01%
- --------------------------------------------------------------------------------
A.G. Petzetakis S.A. 1.92%
- --------------------------------------------------------------------------------
Grupo Televisa S.A. 1.90%
- --------------------------------------------------------------------------------
Mastek Ltd. 1.86%
- --------------------------------------------------------------------------------
Compal Electronics Inc. 1.84%
- --------------------------------------------------------------------------------
Delta Informatics S.A. 1.71%
- --------------------------------------------------------------------------------
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 market countries.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MSCI EMF
1/29/99 $10,000.00 $10,000.00 $10,000.00
2/99 9,840.00 9,274.20 10,097.30
3/99 11,180.00 10,537.15 11,428.02
4/99 11,980.00 11,291.15 12,841.90
5/99 12,080.00 11,385.40 12,767.16
6/99 13,170.00 12,412.72 14,216.10
7/99 12,980.00 12,233.65 13,829.85
8/99 13,120.00 12,365.60 13,955.70
9/99 13,470.00 12,695.57 13,483.44
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 34.70%
GE Emerging Markets
w/load 26.96%
(maximum load-5.75%)
MSCI EMF 34.83%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MSCI EMF
1/29/99 $10,000.00 $10,000.00 $10,000.00
2/99 9,840.00 9,840.00 10,097.30
3/99 11,160.00 11,160.00 11,428.02
4/99 11,960.00 11,960.00 12,841.90
5/99 12,050.00 12,050.00 12,767.16
6/99 13,140.00 13,140.00 14,216.10
7/99 12,930.00 12,930.00 13,829.85
8/99 13,060.00 13,060.00 13,955.70
9/99 13,400.00 13,000.00 13,483.44
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 34.00%
GE Emerging Markets
w/load 30.00%
maximum load 4.00%
MSCI EMF 34.83%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE EMERGING MARKETS MSCI EMF
1/29/99 $10,000.00 $10,000.00
2/99 9,850.00 10,097.30
3/99 11,180.00 11,428.02
4/99 11,990.00 12,841.90
5/99 12,090.00 12,767.16
6/99 13,190.00 14,216.10
7/99 12,990.00 13,829.85
8/99 13,140.00 13,955.70
9/99 13,490.00 13,463.44
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE Emerging Markets 34.90%
MSCI EMF 34.83%
SEE NOTES TO PERFORMANCE.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
42
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE EMERGING MARKETS FUND
[PIE CHART OMITTED]
EUROPE 19.7%
CASH & OTHER 3.7%
PACIFIC RIM 38.3%
OTHER REGIONS 38.3%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 91.1%
- --------------------------------------------------------------------------------
ARGENTINA -- 1.0%
Banco De Galicia y Buenos Aires
S.R. ADR (Class B) 1,736 $ 36,130
CEI Citicorp Holdings S.A.
(Class B) 16,092 48,767(a)
Telecom Argentina S.A. ADR 1,631 43,527
Telefonica de Argentina S.A.
ADR (Class B) 541 14,269
142,693
BRAZIL -- 3.2%
Companhia Cervejaria
Brahma ADR 1,625 19,500
Companhia de Eletricidade do
Estado do Rio de Janeiro 61,100,000 11,775(a)
Companhia de Saneamento
Basicode Estado de Sao Paulo 478,390 30,896
Companhia Siderurgica
National ADR 200 5,150
Petroleo Brasileiro S.A. 585 9,171
Telecomunicacoes Brasileiras
S.A. ADR 2,681 84(a)
Telecomunicacoes Brasileiras
S.A. ADR 3,990 299,001
Uniao de Bancos Brasilieros
S.A. GDR 5,746 101,632
477,209
CHILE -- 0.7%
Companhia de Telecomunicaciones
de Chile S.A. ADR 1,329 24,005
Enersis S.A. ADR 1,260 26,303
Vina Concha Y Toro 1,580 59,645
109,953
CHINA -- 0.3%
Brilliance China Automotive
Holdings Ltd. 274 7,209
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Guangdong Kelon Electrical
Holdings Co. Ltd. 15,000 $ 15,062
Jiangsu Expressway Co. Ltd. 30,000 4,866
Shenzhen Expressway Co. Ltd. 90,000 14,483
41,620
CROATIA -- 0.8%
Pliva D D GDR (Regd.) 6,092 60,311
Zagrebacka Banka GDR 7,129 54,893(b)
115,204
CZECH REPUBLIC -- 0.5%
Ceske Radiokomunikace GDR 2,054 73,430(a,b)
DOMINICAN REPUBLIC -- 0.4%
TRICOM S.A. ADR 8,124 64,992(a)
EGYPT -- 2.4%
Al-Ahram Beverages Co.
S.A.E. GDR 2,551 74,489(a)
EFG-Hermes Holding
S.A.E. GDR 2,124 24,426(b)
Egyptian Company for
Mobile Services 8,986 210,522(a)
Olympic Group Financial
Investment Co. 16,611 53,266
362,703
ESTONIA -- 0.8%
AS Eesti Telecom GDR 6,923 114,229
GHANA -- 0.1%
Home Finance Co. 30,523 8,479(a)
[ICON OMITTED] GREECE -- 10.4%
A.G. Petzetakis S.A. 8,615 284,526(a)
Agricultural Bank of Greece 8,015 180,626
Alfa Beta Vassilopoulos
S.A. (Regd.) 5,920 224,751
Alpha Credit Bank (Regd.) 1,552 124,375
Attica Enterprises S.A. 4,920 120,435
Delta Informatics S.A. (Regd.) 2,780 254,605
Intrasoft S.A. 2,810 145,304
Panafon Hellenic Telecom S.A. 1,960 53,309
STET Hellas Telecommunications
S.A. ADR 8,632 162,929(a)
1,550,860
HUNGARY -- 1.4%
BorsodChem RT 1,303 36,716
Magyar Tavkozlesi RT ADR 2,546 69,379
OTP Bank RT 1,121 49,790
Synergon Information
Systems GDR 4,355 50,736(a,b)
206,621
- ------------
See Notes to Schedules of Investments and Financial Statements.
43
<PAGE>
GE EMERGING MARKETS FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] INDIA -- 12.8%
Aptech Ltd. 7,820 $ 152,317
Bharat Heavy Electricals Ltd. 1,300 8,145(a)
BSES Ltd. GDR 343 4,116
Cipla Ltd. 1,000 90,625
Dr. Reddy's Laboratories Ltd. 2,000 67,608
HDFC Bank Ltd. 2,000 12,197
Leading Edge Systems Ltd. 600 7,120(a)
Mastek Ltd. 3,900 276,714
NIIT Ltd. 6,040 391,647(o)
Pentafour Software & Exports
Ltd. GDR 15,386 215,404
Satyam Computer Services Ltd. 12,670 325,946(a)
Sun Pharmaceutical Industries Ltd. 3,200 85,774(o)
Wipro Ltd. 3,750 116,179
Zee Telefilms Ltd. 1,500 153,907
1,907,699
INDONESIA -- 0.6%
PT Astra International Inc. 49,500 14,716(a)
PT Gudang Garam 9,000 18,216
PT Hanjaya Mandala Sampoerna 20,000 35,495(a)
PT International Nickel 21,500 16,787(a)
PT Mulia Industrindo 90,000 4,595
89,809
[ICON OMITTED] ISRAEL -- 8.4%
AudioCodes Ltd. 3,117 117,277(a)
Comverse Technology Inc. 2,389 225,313(a)
ECI Telecommunications Ltd. 5,158 127,338
Elbit Ltd. 6,700 86,263(a)
Fundtech Ltd. 7,120 158,865(a)
Geo Interactive Media Group PLC 31,879 91,319(a)
Orbotech Ltd. 2,649 163,907(a)
Sapiens International Corp. N.V. 14,658 163,070(a)
Teva Pharmaceutical Industries
Ltd. ADR 2,423 121,907
1,255,259
KAZAKHSTAN -- 0.7%
Efes Sinai Yatirim Holding A.S. 5,850,711 55,795(a)
Kazkommertsbank GDR 5,411 41,935(a)
97,730
[ICON OMITTED] MEXICO -- 12.6%
Alfa S.A. (Series A) 9,194 38,890
Cemex S.A. de C.V. ADR 2,289 55,222(a)
Cifra S.A. de C.V. 55,851 87,928(a)
Coca-Cola Femsa S.A. de C.V. ADR 5,997 82,834
Controladora Comercial
Mexicana S.A. de C.V. 72,642 63,086
Desc S.A. de C.V. (Series B) 64,248 54,972
Empresas ICA Sociedad
Controladora S.A. de C.V. ADR 3,126 9,183
Fomento Economico Mexicano
S.A. de C.V. ADR 1,921 60,151
Geo S.A. de C.V. 64,173 162,320(a)
Grupo Carso S.A. de C.V. ADR 5,401 44,221
Grupo Continental S.A. 76,544 92,508
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Grupo Elektra S.A. de C.V. GDR 6,287 $ 30,256
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 54,333 97,741(a)
Grupo Financiero Bancomer
S.A. ADR (Series C) 22,577 98,774(b)
Grupo Financiero Banorte
S.A. de C.V. 161,251 167,287(a)
Grupo Industrial Bimbo
S.A. de C.V. 38,697 81,119
Grupo Iusacell S.A. ADR 6,118 58,121(a)
Grupo Televisa S.A. GDR 7,071 282,398(a)
Pepsi-Gemex S.A. GDR 2,337 13,292(a)
Telefonos de Mexico
S.A. ADR 3,057 217,811
Tubos de Acero de Mexico
S.A. ADR 3,157 38,673
TV Azteca S.A de C.V. ADR 7,220 36,100
1,872,887
NETHERLANDS -- 0.3%
Indigo N.V. 15,261 46,260(a)
PANAMA -- 0.2%
Banco Latinoamericano de
Exportaciones, S.A. (Class E) 1,162 26,581
PHILIPPINES -- 1.6%
Benpres Holdings Corp. 291,200 50,551(a)
Equitable Bancorp. 19,680 40,900(a)
Metropolitan Bank & Trust Co. 11,200 82,152
San Miguel Corp. S.A. 26,400 40,019
Solid Group Inc. 314,700 9,079(a)
SPI Technologies Inc. 42,300 11,118
233,819
POLAND -- 2.4%
Bank Slaski S.A. 481 24,049
BRE Bank S.A. 760 19,741
Elektrim Spolka Akeyjna S.A. 7,299 67,646
Netia Holdings S.A. ADR 2,299 40,232(a)
Powszechny Bank Kredytowy S.A. 1,602 26,959
Prokom Software S.A. GDR 6,590 61,946(b)
Telekomunikacja Polska
S.A. GDR (Series A) 23,235 111,528(b)
352,101
RUSSIA -- 0.9%
LUKoil Holding ADR 1,437 38,799
PLD Telekom Inc. 19,643 49,107(a)
Sun Interbrew Ltd. GDR (Class B) 6,547 23,373(a)
Sun Interbrew Ltd. GDR (Class A) 6,547 23,373(a)
134,652
SINGAPORE -- 2.1%
Datacraft Asia Ltd. 69,769 306,984
SOUTH AFRICA -- 4.1%
Dimension Data Holdings Ltd. 33,572 133,393(a)
Johnnies Industrial Corp. Ltd. 16,829 110,745
- -------
See Notes to Schedules of Investments and Financial Statements.
44
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
M-Cell Ltd. 27,266 $ 44,970
Nedcor Investment Bank Holdings 4,385 2,630(a)
Nedcor Ltd. 7,724 151,327
Network Healthcare Holdings Ltd. 390,224 39,006
Softline Ltd. 89,533 93,971(a)
The Education Investment
Corp. Ltd. 49,709 29,233
605,275
SOUTH KOREA -- 7.1%
Dae Duck Electronics Co. 18,450 204,747
Hanvit Bank GDR 2,300 16,100(a,b)
Kookmin Bank 5,610 70,327(a)
Korea Telecom Corp. ADR 645 23,865(a)
Korea Telecom Corp. 1,903 117,481
Medison Co. Ltd. 14,140 151,106
Pohang Iron & Steel Co. Ltd. 1,820 204,217
S1 Corp. 399 67,074
Samsung Electronics 961 155,624
Sindo Ricoh Co. 461 17,015
Youngone Corp 18,400 34,486
1,062,042
[ICON OMITTED] TAIWAN -- 12.5%
Asustek Computer Inc. 16,810 167,306
Chroma Ate Inc. 24,000 63,496(a)
Compal Electronics Inc. 86,500 273,803
Compeq Manufacturing Co. Ltd. 21,500 101,575(a)
D-Link Corp. 35,200 63,194
Far Eastern Textile Ltd. 154,790 219,875
Hitron Technology Inc. 30,000 128,976(a)
Hon Hai Precision Industry 19,400 127,093(a)
Ritek Inc. 18,013 120,843(a)
Synnex Technology
International Corp. 2,085 38,312(a,b)
Taiwan Semiconductor
Manufacturing Co. 103,100 433,507(a)
Yageo Corp. 89,060 112,762
1,850,742
THAILAND -- 0.6%
Banpu Public Co. Ltd. (foreign) 7,100 11,615
Hana Microelectronics
Public Co. Ltd. (foreign) 12,500 41,204(a)
Siam Cement Public Co. Ltd.
(foreign) 1,600 33,285(a)
86,104
TURKEY -- 2.2%
Aksigorta A.S. 1,296,880 36,541
Dogan Yayin Holding 10,742,403 43,073(a)
Enka Holding Yatirim A.S. 112,590 21,474
Migros Turk T.A.S. 173,144 75,053
Tansas A.S. 1,184,336 112,943
Yapi ve Kredi Bankasi A.S. 3,054,439 41,707
330,791
TOTAL COMMON STOCK
(COST $10,958,973) 13,526,728
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 5.2%
- --------------------------------------------------------------------------------
Bancodo Estado de Sao Paulo S.A. 967,750 $ 22,934
Celular CRT Participaceos S.A. 24,252 2,653(a)
Companhia Brasileira de
Distribuicao Grupo Pao de
Acucar GDR 1,307,141 26,347
Companhia Energetica de
Minas Gerais 1,552,708 23,452
Companhia Paranaense de
Energia-Copel 14,165,186 95,172
Companhia Riograndense
de Telecomunicacoes 24,252 5,432
Companhia Siderurgica
de Tubarao 2,300,000 19,286(a)
Companhia Vale do Rio Doce 2,940 62,628(a)
Eletropaulo Metropolitana 700,000 33,177
Embratel Participacoes S.A. ADR 3,222 36,852
Petroleo Brasileiro S.A. 860,000 128,552
Tele Centro Sul Participacoes
S.A. ADR 1,330 73,815
Tele Norte Leste Participacoes
S.A. ADR 5,217 80,863
Tele Sudeste Celular
Participacoes S.A. ADR 2,418 51,987
Telecomunicacoes de Sao
Paulo S.A.-Telesp 571,010 50,603
Telesp Celular Participacoes
S.A. ADR 477 12,462
Telesp Celular S.A. 1,002,391 52,208
TOTAL PREFERRED STOCK
(COST $730,851) 778,423
TOTAL INVESTMENTS IN SECURITIES
(COST $11,689,824) 14,305,151
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.9%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $276,969) 276,969 276,969
OTHER ASSETS AND LIABILITIES,
NET 1.8% 263,685
------------
NET ASSETS-- 100% $14,845,805
=============
- --------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
The GE Emerging Markets Fund invested in the following sectors at September 30,
1999:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
- --------------------------------------------------------------------------------
Services 39.15%
Capital Equipment 23.15%
Consumer Goods 13.02%
Finance 9.65%
Materials 5.13%
Multi Industry 3.71%
Energy 2.55%
Cash and Other 3.64%
-------
100.00%
=======
[ICON OMITTED] ICONS REPRESENT THE TOP FIVE INDUSTRY WEIGHTINGS IN THE
GE EMERGING MARKETS FUND AT SEPTEMBER 30, 1999.
- ---------------
See Notes to Schedules of Investments and Financial Statements.
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 BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The 428 Balanced funds in the Lipper peer group returned an average of
12.50% between September 30, 1998 and 1999. The benchmarks for the fund's
various asset classes had the following returns: The S&P 500 Index gained
27.81%; the MSCI EAFE Index returned 30.95%; and the Lehman Brothers
Aggregate Bond Index dropped 0.37%. To compare your class of shares in the
GE Strategic Investment Fund with the benchmark, see the following page.
Q. PLEASE COMMENT ON THE FUND'S PERFORMANCE.
A. All classes of the fund outperformed their peer averages for the one-year
period ended September 30, 1999. The fund allocates investments among
several asset classes: currently, 43% to U.S. equities; 17% to international
equities; 36% to fixed income securities and the balance to cash. Returns
for each asset class within the fund were in line with their benchmarks.
Q. WHAT FACTORS AFFECTED FUND PERFORMANCE?
A. Equities, which represent a majority of the portfolio, had strong gains
during the twelve month period. Returns from the bond portion of the fund
were essentially flat. At the start of the reporting period, the U.S. stock
market was still rocked by the collapse of currencies in Russia and other
emerging markets and the near collapse of U.S. hedge fund Long Term Capital
Management. The U.S. market rallied in the first and second quarters of 1999
then consolidated its gains in the third quarter. U.S. equities continued to
trade in a narrow range, with large-cap issues returning 28% and technology
stocks returning 80% over the twelve-month period.
For global markets, September 1998 was a low point. Since then, established
and emerging markets have shown significant signs of recovery. The MSCI EAFE
Index of international stocks gained 31%; Pacific markets were up 71%; Japan
earned 77%; and Europe returned 17%. Japan and Asia are beginning to regain
economic health. In Europe, economic growth expectations slowed after the
Euro's January launch into a strong dollar market. In all global markets,
corporate restructuring and mergers and acquisitions have been a major theme
in 1999.
The bond market, which rallied as stocks fell a year ago, has retraced its
steps over the last twelve months. The yield on the bellwether 30-year U.S.
Treasury Bond fell from 6.04% to 4.97% between September 1997 and September
1998. On September 30, 1999 it was back at 6.05%. In the wake of 1998's
global currency crisis, the U.S. Federal Reserve Board eased monetary policy
three times. As the crisis ebbed in 1999, investors turned their attention
to the domestic economy. Strong growth and the low unemployment rate raised
the specter of inflation, which pushed bond yields higher. The Federal
Reserve Board raised the targeted rate for Federal Funds by 50 basis points
(0.50%) in two steps.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The fund's weighting in U.S. equities remains at the low end of the normal
range because of ongoing concerns about the volatility of the U.S. stock
market and the high valuation levels of U.S. equities. In all equity asset
classes, stock selection remains the key to performance. Good stock picking
is especially critical in international markets where share prices dip
sharply on disappointing earnings announcements and rise when companies do
better than expectations. As the U.S. enters its ninth year of economic
expansion, the Federal Reserve Board's tightening of monetary policy should
control inflation, adding more volatility in both equity and bond markets
for the near term but suggesting lower rates in the future.
46
<PAGE>
GESTRATEGIC INVESTMENT FUND
- --------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 2.28%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds 2.16%
- --------------------------------------------------------------------------------
Citigroup Inc. 2.16%
- --------------------------------------------------------------------------------
NTL Inc. 1.79%
- --------------------------------------------------------------------------------
First Data Corp. 1.65%
- --------------------------------------------------------------------------------
AT&T Corp. - Liberty Media Group 1.45%
- --------------------------------------------------------------------------------
Dover Corp. 1.39%
- --------------------------------------------------------------------------------
SPDR Trust 1.38%
- --------------------------------------------------------------------------------
U.S. Treasury Notes 1.31%
- --------------------------------------------------------------------------------
Cardinal Health Inc. 1.28%
- --------------------------------------------------------------------------------
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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 428 203
Peer group
average annual
total return: 12.50% 14.33%
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 GE STRATEGIC
STRATEGIC INVESTMENT S&P LB COMPOSITE
INVESTMENT W/LOAD 500 AGGREGATE INDEX**
2/22/93 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
10,309.14 9,715.01 10,216.10 10,042.00 10,146.46
9/93 10,806.46 10,183.66 10,530.86 10,577.38 10,552.96
10,482.79 9,878.65 10,364.46 10,279.04 10,335.11
9/94 10,777.59 10,156.46 10,919.15 10,235.55 10,649.25
11,488.09 10,826.02 11,978.67 10,792.48 11,502.50
9/95 12,970.65 12,223.14 14,165.55 11,675.28 13,130.78
14,023.21 13,215.03 15,824.63 11,955.39 14,171.53
9/96 14,731.61 13,882.59 17,045.81 12,245.04 14,970.36
15,562.97 14,666.04 18,959.35 12,542.46 16,125.68
9/97 18,039.57 16,999.92 23,947.44 13,438.06 19,097.15
19,811.42 18,669.65 28,068.12 14,047.41 21,410.17
9/98 19,100.00 17,998.89 26,130.73 14,983.36 21,130.84
22,062.24 20,790.76 33,268.15 14,957.20 24,453.10
9/99 22,018.27 20,749.32 33,395.81 14,926.95 24,509.70
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Strategic Investment 15.28% 15.36% 12.69%
GE Strategic Investment
w/load 8.67% 14.00% 11.68%
(maximum load-5.75%)
S&P 500 27.81% 25.05% 20.08%
LB Aggregate (0.37)% 7.84% 6.27%
Composite Index** 15.99% 18.14% 14.57%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GE STRATEGIC
STRATEGIC INVESTMENT S&P LB COMPOSITE
INVESTMENT W/LOAD 500 AGGREGATE INDEX**
12/22/1993 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
9,640.98 9,640.98 9,618.15 9,712.67 9,656.85
9/94 9,874.90 9,874.90 10,132.90 9,671.58 9,950.37
10,491.68 10,491.68 11,116.13 10,197.82 10,747.63
9/95 11,803.95 11,803.95 13,145.54 11,031.99 12,269.05
12,715.28 12,715.28 14,685.15 11,296.66 13,241.49
9/96 13,306.23 13,306.23 15,818.40 11,570.35 13,987.90
14,012.40 14,012.40 17,594.16 11,851.39 15,067.40
9/97 16,176.03 16,176.03 22,223.07 12,697.63 17,843.86
17,672.96 17,672.96 26,047.04 13,273.41 20,005.09
9/98 16,970.00 16,970.00 24,249.15 14,157.79 19,744.09
19,531.49 19,531.49 30,872.63 14,132.94 22,848.32
9/99 19,420.29 19,420.29 30,991.10 14,104.35 22,901.20
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Strategic Investment 14.44% 14.48% 12.18%
GE Strategic Investment
w/load 10.44% 14.48% 12.18%
maximum load 4.0% 0.0% 0.0%
S&P 500 27.81% 25.05% 21.74%
LB Aggregate (0.37)% 7.84% 6.16%
Composite Index** 15.99% 18.14% 15.50%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE
STRATEGIC S&P LB COMPOSITE
INVESTMENT 500 AGGREGATE INDEX**
11/29/93 $10,000.00 $10,000.00 $10,000.00 $10,000.00
9,745.04 9,736.84 9,765.12 9,749.21
9/94 10,025.30 10,257.94 9,723.81 10,045.54
10,700.41 11,253.31 10,252.89 10,850.42
9/95 12,100.96 13,307.76 11,091.56 12,386.39
13,101.36 14,866.37 11,357.66 13,368.13
9/96 13,789.47 16,013.60 11,632.83 14,121.68
14,588.35 17,811.27 11,915.38 15,211.51
9/97 16,928.65 22,497.30 12,766.20 18,014.52
18,607.41 26,368.46 13,345.09 20,196.42
9/98 17,962.00 24,548.38 14,234.25 19,932.92
20,773.06 31,256.00 14,132.94 23,066.84
9/99 20,756.52 31,373.53 14,104.35 23,120.23
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Strategic Investment 15.56% 15.67% 13.32%
S&P 500 27.81% 25.05% 21.64%
LB Aggregate (0.37)% 7.84% 6.17%
Composite Index** 15.99% 18.14% 15.44%
**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 SEPTEMBER 30, 1999
GE STRATEGIC INVESTMENT FUND
[PIE CHART OMITTED]
DOMESTIC EQUITY 43.3%
BONDS AND NOTES 35.5%
FOREIGN EQUITY 16.6%
CASH & OTHER 4.6%
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
DOMESTIC EQUITY -- 43.3%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.1%
Airgas Inc. 15,412 $ 179,165(a)
Great Lakes Chemical Corp. 2,242 85,336
264,501
[ICON OMITTED] CAPITAL GOODS -- 4.9%
Alleghany Corp. 1,060 187,620
AlliedSignal Inc. 39,348 2,358,421
Dover Corp. 63,127 2,580,316
Emerson Electric Co. 4,144 261,849
Hubbell Inc. (Class B) 21,297 678,842
Molex Inc. (Class A) 47,637 1,542,248
Textron Inc. 3,465 268,104
United Technologies Corp. 4,215 250,002
Waste Management Inc. 56,044 1,078,847
9,206,249
[ICON OMITTED] CONSUMER - CYCLICAL -- 7.5%
AT&T Corp. - Liberty Media
Group (Class A) 72,857 2,704,816(a)
Carnival Corp. (Class A) 19,615 853,252
Catalina Marketing Corp. 18,214 1,544,775(a)
Comcast Corp. (Class A) 51,000 2,033,625
Gannett Inc. 10,032 694,089
Harman International
Industries Inc. 5,044 212,163
Interpublic Group Cos. Inc. 27,910 1,147,799
NTL Inc. 34,747 3,338,969(a)
Stanley Works 4,484 112,941
Time Warner Inc. 10,536 640,062
Walt Disney Co. 27,051 699,945
13,982,436
CONSUMER - STABLE -- 1.6%
Anheuser Busch Cos. Inc. 6,389 447,629
Avon Products Inc. 18,326 454,714
Colgate-Palmolive Co. 7,174 328,210
Gillette Co. 8,407 285,313
Pepsico Inc. 24,715 747,629
Philip Morris Cos. Inc. 22,530 770,244
3,033,739
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
ENERGY -- 3.2%
Anadarko Petroleum Corp. 14,179 $ 433,346
Baker Hughes Inc. 28,582 828,878
Burlington Resources Inc. 7,005 257,434(h)
Exxon Corp. 9,359 710,699
Nabors Industries Inc. 13,058 326,450(a)
Royal Dutch Petroleum Co. ADR 22,866 1,350,523
Schlumberger Ltd. 26,565 1,655,331
Unocal Corp. 9,808 363,509
5,926,170
[ICON OMITTED] FINANCIAL -- 5.0%
American Express Co. 6,725 905,353
Citigroup Inc. 91,251 4,015,044
Countrywide Credit Industries Inc. 9,247298,216
Federal National Mortgage Assoc. 35,013 2,194,877
State Street Corp. 15,535 1,003,949(e)
Wells Fargo & Co. 21,857 866,084
9,283,523
[ICON OMITTED] HEALTHCARE -- 8.1%
Abbott Laboratories 44,275 1,627,106
American Home Products Corp. 18,551 769,866
Bristol-Myers Squibb Co. 25,220 1,702,350
Cardinal Health Inc. 43,714 2,382,413
Dentsply International Inc. 15,692 356,993
Henry Schein Inc. 28,863 411,298(a)
Johnson & Johnson 23,034 2,116,249
Lincare Holdings Inc. 26,341 702,152(a)
Merck & Co. Inc. 29,983 1,943,273
Omnicare Inc. 11,769 113,277
Pfizer Inc. 32,954 1,184,284
Pharmacia & Upjohn Inc. 2,684 133,194
Sybron International Corp. 37,830 1,016,681(a)
Watson Pharmaceuticals Inc. 17,934 548,108(a)
15,007,244
INSURANCE -- 2.1%
American International
Group Inc. 15,588 1,355,182
Berkshire Hathaway Inc. (Class B) 441 818,496(a)
Chicago Title Corp. 4,268 170,453
Loews Corp. 8,687 609,719
Marsh & McLennan Cos. Inc. 15,020 1,028,870
3,982,720
MISCELLANEOUS -- 1.4%
SPDR Trust 19,900 2,562,125
RETAIL TRADE -- 0.9%
CVS Corp. 6,165 251,609
Home Depot Inc. 19,615 1,346,080
1,597,689
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 2.4%
Applied Materials Inc. 9,527 740,129(a)
Cisco Systems Inc. 20,176 1,383,317(a)
Intel Corp. 26,621 1,978,273
Pitney Bowes Inc. 5,311 323,639
4,425,358
- ------------
See Notes to Schedules of Investments and Financial Statements.
48
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] TECHNOLOGY - SOFTWARE & SERVICES -- 5.1%
Acxiom Corp. 5,324 $ 104,650(a)
Automatic Data Processing Inc. 38,782 1,730,647(h)
EMC Corp. 11,769 840,748(a)
Equifax Inc. 70,055 1,970,297
First Data Corp. 70,055 3,073,663
Microsoft Corp. 14,852 1,345,034(a)
Reuters Group PLC ADR 7,019 483,434
9,548,473
UTILITIES -- 1.0%
MCI WorldCom Inc. 16,813 1,208,434(a)
SBC Communications Inc. 12,105 618,112
1,826,546
TOTAL DOMESTIC EQUITY
(COST $56,869,302) 80,646,773
- --------------------------------------------------------------------------------
FOREIGN EQUITY -- 16.6%
- --------------------------------------------------------------------------------
BASIC MATERIALS -- 0.6%
British Steel PLC 70,856 179,641
Ispat International N.V. (Regd.)
(Class A) 5,955 62,155
Metallgesellschaft AG 12,612 254,976
Montedison S.p.A. 16,746 32,786
Pohang Iron & Steel Co. Ltd. 1,604 179,980
Pohang Iron & Steel Co. Ltd. ADR 1,537 48,128
Shin-Etsu Chemical Co. 9,000 374,228
1,131,894
[ICON OMITTED] CAPITAL GOODS -- 2.5%
ABB AG 123 202,203
Aerospatiale Matra (Regd.) 7,587 160,974(a)
Alstom 13,982 466,857
Asahi Chemical Industry Co. Ltd. 36,000 199,925
Celestica Inc. 2,902 142,961(a)
CRH PLC 11,743 223,413
Desc S.A. de C.V. (Series B) 30,542 26,132
Desc S.A. de C.V. ADR (Class C) 4,548 76,179
FKI PLC 64,794 203,740
Grupo Carso S.A. de C.V.
ADR (Class C) 18,606 152,337
Invensys PLC 103,079 500,612
Lyonnaise Des Eaux S.A. 1,552 251,014
Mannesmann AG 5,715 912,156
Minebea Co. Ltd. 30,000 380,689
Preussag AG 11,955 601,690
VA Technologie AG 1,308 104,996
4,605,878
[ICON OMITTED] CONSUMER - CYCLICAL-- 2.4%
Airtours PLC 70,937 452,244
Autoliv Inc. SDR 14,325 540,269
Canon Inc. 13,000 377,412
CSM N.V. 364 17,487
DaimlerChrysler AG 3,343 230,145
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Granada Group PLC 49,516 $ 426,340
Grupo Televisa S.A. GDR 4,483 179,040(a)
Johnson Electric Holdings 55,600 268,412
Kinnevik AB (Series B) 1,406 24,969
Mazda Motor Corp. 56,000 280,052
Michelin CGDE (Regd.) (Class B) 8,701 410,328
NAMCO Ltd. 900 35,400
Philips Electronics N.V. 4,639 466,464
Reed International PLC 22,296 133,977
Saatchi & Saatchi PLC 9,979 34,401
SEMA Group PLC 5,169 63,142
Sony Corp. 3,000 446,994
Williams PLC 9,009 48,054
4,435,130
CONSUMER - STABLE -- 0.0%
Panamerican Beverages
Inc. (Class A) 827 13,697
San Miguel Corp. S.A. 35,101 53,209
66,906
DIVERSIFIED -- 0.2%
Lagardere S.C.A. 9,548 396,120
ENERGY -- 1.0%
Coflexip S.A. ADR 4,123 196,873
Elf Aquitaine S.A. ADR 750 130,878
Repsol S.A. 4,037 78,996
Saipem 52,614 226,735
Total S.A. (Class B) 5,369 674,120
Veba AG 6,769 370,571
Vivendi 1,604 112,559
1,790,732
[ICON OMITTED] FINANCIAL -- 1.9%
Alpha Credit Bank (Regd.) 393 31,495
Argentaria, Caja Postal y Banco
Hipotecario de Espana, S.A. 7,641 167,974
Asahi Bank Ltd. 9,000 64,478
Banca Intesa S.p.A. 52,465 219,394
Banco Comercial Portugues
(Regd.) 4,680 125,988
Bank of Ireland 30,136 245,306
Bayerische Vereinsbank AG 2,665 155,396
Clarica Life Insurance Co. 4,083 61,413(a)
Credit Suisse AG 1,253 229,335
Deutsche Bank AG 5,299 354,373(a)
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 80,635 145,057(a)
ING Groep N.V. 12,606 684,084
Investor AB (Series B) 3,356 39,733(a)
Invik & Co. AB 723 46,329
Kookmin Bank 6,490 81,358
Merita PLC (Series A) 40,183 225,755
Promise Co. Ltd. 1,400 112,362
Societe Generale 1,327 273,221
The Fuji Bank Ltd. 8,000 96,947
Uniao de Bancos Brasilieros
S.A. GDR 5,769 102,039
Zurich Allied AG (Regd.) 212 118,099
3,580,136
- ----------
See Notes to Schedules of Investments and Financial Statements.
49
<PAGE>
GE STRATEGIC INVESTMENT FUND
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] HEALTHCARE -- 1.1%
Fresenius Medical Care AG 5,942 $ 393,265
Novartis AG (Regd.) 167 247,416
Novo-Nordisk AS (Series B) 2,942 349,591
Nycomed Amersham PLC 33,841 210,036
Rhone-Poulenc S.A. (Class A) 7,956 410,580
Shire Pharmaceuticals
Group PLC ADR 7,286 209,928(a)
Teva Pharmaceutical
Industries Ltd. ADR 5,056 254,380
2,075,196
INSURANCE -- 1.0%
AXA-UAP 5,694 719,773
Commercial Union PLC 7,617 117,122
Muenchener Rueckverischerungs-
Gesellschaft AG (Regd.) 1,574 317,712
Pohjola Group Insurance Corp.
(Series B) 1,627 77,039
Royal & Sun Alliance Insurance
Group PLC 37,789 300,484
Sampo Insurance Co. Ltd.
(Series A) 9,099 302,072
1,834,202
RETAIL TRADE -- 0.8%
Carrefour S.A. 2,806 448,754
Giordano International Ltd. 128,000 101,340
Jeronimo Martins, SGPS, S.A. 2,213 62,636
Koninklijke Ahold N.V. 9,997 328,692
Mitsukoshi Ltd. 21,000 125,670(a)
Somerfield PLC 74,162 159,942
Vendex KBB N.V. 5,523 158,672
1,385,706
[ICON OMITTED] TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 2.9%
Brambles Industries Ltd. 16,498 477,824
Cable & Wireless
Communication PLC 32,074 327,909(a)
Cable & Wireless Optus Ltd. 65,430 140,941(a)
Comverse Technology Inc. 4,803 452,983(a)
ECI Telecommunications Ltd. 12,056 297,632
Ericsson LM Telephone (Series B) 11,285 349,858
Fujitsu Ltd. 12,000 373,104
NetCom Systems AB (Series B) 3,043 112,910(a)
Nokia Oyj (Series A) 3,352 299,959
Nortel Networks Corp. 4,546 231,846
Schneider S.A. 6,601 482,534
STMicroelectronics N.V. 3,201 249,321
Sumitomo Electric Industries 26,000 355,497
Synnex Technology International
Corp. GDR 3,458 63,541(a,b)
Taiwan Semiconductor
Manufacturing Co. 169,380 712,196
Toshiba Corp. 57,000 423,310
5,351,365
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
TECHNOLOGY - SOFTWARE & SERVICES -- 0.3%
Cap Gemini S.A. 3,031 $ 477,320
CGI Group Inc. (Class A) 7,777 153,497(a)
630,817
TELECOMMUNICATIONS -- 0.0%
Cable & Wireless PLC 1,598 17,376
Portugal Telecom S.A. 189 7,859
25,235
TRANSPORTATION -- 0.2%
IHC Caland N.V. 5,705 282,881
Railtrack Group PLC 5,667 119,605
402,486
UTILITIES -- 1.7%
Hellenic Telecommunication
Organization S.A. ADR 7,847 87,789
Hellenic Telecommunication
Organization S.A. 6,460 150,602
Helsingin Puhelin Oyj 325 13,763
Korea Telecom Corp. ADR 2,549 94,313(a)
Korea Telecom Corp. 1,036 63,957
Telecom Italia Mobile S.p.A. 9,441 58,667
Telecom Italia S.p.A 16,804 145,903
Telefonica S.A. 29,967 479,252
Telekomunikacja Polska S.A.
GDR (Series A) 26,113 125,342(b)
Vodafone AirTouch PLC ADR 8,126 1,931,957
3,151,545
TOTAL FOREIGN EQUITY
(COST $25,967,727) 30,863,348
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 35.5%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 7.2% (H)
U.S. Treasury Bonds
8.125% 08/15/19 $3,401,000 4,025,390
8.125% 05/15/21 797,000 950,669
5.25% 02/15/29 370,000 323,809
5,299,868
U.S. Treasury Notes
5.00% 04/30/01 1,546,000 1,531,746
5.25% 05/31/01 2,460,000 2,445,019
6.50% 08/31/01 526,000 534,216
6.625% 03/31/02 305,000 311,387
5.25% 08/15/03 376,000 368,540
5.25% 05/15/04 702,000 686,093
6.00% 08/15/04 815,000 822,897
6.00% 08/15/09 620,000 625,034
7,324,932
U.S. Treasury STRIPS
5.89% 08/15/11 973,000 456,347(d)
5.91% 02/15/12 845,000 382,498(d)
838,845
TOTAL U.S. TREASURIES
(COST $13,819,419) 13,463,645
- ---------
See Notes to Schedules of Investments and Financial Statements.
50
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
FEDERAL AGENCIES -- 7.8%
Federal Home Loan Bank
5.625% 03/19/01 $ 410,000 $ 408,077
5.875% 08/15/01 1,430,000 1,424,409
5.25% 04/25/02 480,000 470,097
6.22% 03/18/08 445,000 420,040
5.75% 04/15/08 515,000 485,063
3,207,686
Federal Home Loan Mortgage Corp.
6.50% 06/01/29 - 07/01/29 2,597,543 2,492,004
Federal National Mortgage Assoc.
5.38% 01/16/01 665,000 659,288
5.125% 02/13/04 880,000 838,473
5.78% 05/05/04 405,000 391,582
6.99% 07/09/07 855,000 844,176
5.64% 12/10/08 255,000 236,686
6.04% 02/25/09 930,000 873,186
9.00% 06/01/09 374,252 395,070
7.50% 12/01/09 843,831 856,488
7.00% 08/13/01 65,147 65,116
7.50% 02/01/14 380,025 385,725
9.00% 04/01/16 197,620 209,354
9.50% 11/01/17 136,609 146,770
8.00% 12/01/17 160,232 164,436
9.00% 12/01/17 136,177 142,644
7.50% 12/01/18 91,914 92,645
9.50% 08/01/22 253,584 272,444
9.00% 12/01/22 150,632 157,905
7.50% 12/01/23 351,842 354,259
6.16% 08/07/28 680,000 615,611
6.50% 01/01/29 - 05/01/29 1,086,215 1,041,408
8,743,266
Small Business Administration
6.55% 10/01/17 - 12/01/17 123,565 121,034
TOTAL FEDERAL AGENCIES
(COST $14,945,796) 14,563,990
AGENCY MORTGAGE BACKED -- 8.8%
Federal Home Loan Mortgage Corp.
5.125% 10/15/08 205,000 183,698
6.625% 09/15/09 250,000 249,180
7.50% 11/01/09 76,737 78,056
7.50% 06/01/10 172,932 175,903
9.00% 04/01/16 - 07/01/16 69,219 72,262
9.00% 02/01/17 93,159 97,347
8.00% 04/15/20 14,962 15,205
6.247% 03/17/21 81,000 75,710
9.00% 06/01/21 36,122 37,916(h)
8.00% 08/01/24 16,011 16,381
8.00% 10/01/25 15,376 15,726
8.00% 11/01/26 20,582 21,051
8.00% 02/01/28 23,147 23,675
6.50% TBA 862,000 827,115(c)
7.00% TBA 4,315,240 4,243,089(c)
7.50% TBA 150,000 150,680(c)
6,282,994
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc.
6.50% 01/01/04 $ 6,554 $ 6,505
6.50% 04/01/13 661,960 649,549
7.00% 06/18/20 26,500 26,450(b)
8.00% 10/25/20 48,554 49,298
6.42% 12/25/23 91,000 86,222
7.00% 10/01/27 - 11/01/27 686,406 673,870
7.00% 07/01/28 598,861 588,381
8.00% TBA 1,070,000 1,091,732(c)
3,172,007
Federal National Mortgage Assoc. REMIC
4.27% 12/17/04 77,595 79,135(d)
7.06% 05/25/14 25,790 25,319(d)
6.366% 05/25/18 61,000 57,988
9.00% 05/25/22 38,704 9,947(g)
8.50% 07/01/22 51,898 13,056(g)
185,445
Government National Mortgage Assoc.
7.00% 03/15/12 447,932 449,751
9.00% 11/15/16 622,987 657,638
9.00% 01/15/17 179,509 189,380
8.50% 10/15/17 881,772 921,046
9.00% 11/15/17 178,562 188,494
9.50% 12/15/17 267,209 286,758
9.00% 12/15/21 27,631 29,082
7.50% 01/15/23 106,792 107,493
6.50% 02/15/24 - 03/15/24 566,357 546,003
6.50% 02/15/24 309,821 298,686(b)
6.50% 04/15/28 1,984,341 1,896,891
7.00% 04/15/28 447,459 438,926
8.00% TBA 776,000 793,219(c)
6,803,367
TOTAL AGENCY MORTGAGE BACKED
(COST $16,670,193) 16,443,813
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.3%
Collateralized Mortgage Obligation Trust
4.44% 09/01/15 7,558 6,712(d,f)
4.98% 11/01/18 26,883 20,112(d,f)
26,824
Federal Home Loan Mortgage Corp.
5.75% 06/15/23 137,000 131,006
Federal National Mortgage Assoc.
8.50% 03/01/17 - 04/01/17 30,719 7,814(g)
8.50% 01/01/18 3,698 937(g)
6.00% 03/25/19 334,080 305,159
4.47% 12/25/22 38,113 29,085(d,f)
342,995
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $520,858) 500,825
ASSET BACKED -- 0.7%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 11,760 11,605
Capital One Master Trust
5.43% 01/15/07 82,000 78,464
Chase Credit Card Master Trust
6.00% 08/15/05 32,000 31,610
- ------------
See Notes to Schedules of Investments and Financial Statements.
51
<PAGE>
GE STRATEGIC INVESTMENT FUND
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Citibank Credit Card Master Trust I
5.75% 01/15/03 $ 19,000 $ 18,929
5.50% 02/15/06 121,000 115,630
Discover Card Master Trust I
5.75% 10/16/03 89,000 88,304
5.30% 08/15/04 72,000 70,121
5.60% 05/16/06 312,000 299,666
First USA Credit Card Master Trust
5.28% 09/18/06 126,000 119,897
Ford Credit Auto Loan Master Trust
5.50% 02/15/03 47,000 46,491
Ford Credit Auto Owner Trust
5.90% 06/15/02 106,000 105,652
Green Tree Financial Corp.
6.90% 04/15/18 60,587 60,643
6.97% 04/01/31 88,000 87,835
Peco Energy Transport Trust
5.80% 03/01/07 61,000 58,598
6.05% 03/01/09 61,000 57,625
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 73,845 73,150
TOTAL ASSET BACKED
(COST $1,362,976) 1,324,220
CORPORATE NOTES -- 7.9%
Abbey National PLC
6.70% 06/29/49 55,000 50,266
7.35% 10/29/49 42,000 40,745
Aetna Services Inc.
6.97% 08/15/36 140,000 138,125
Amerada Hess Corp.
7.875% 10/01/29 85,000 83,649
American Airlines Inc.
6.855% 04/15/09 85,000 84,890
Armstrong World Industries Inc.
7.45% 05/15/29 100,000 93,418
Associates Corporation
of North America
6.38% 10/15/02 200,000 198,738
5.75% 11/01/03 100,000 96,543
AT&T Corp.
6.50% 03/15/29 130,000 114,699
Bank of Scotland
7.00% 11/29/49 60,000 56,152(b)
Bank One Corp.
6.40% 08/01/02 150,000 149,049
Beckman Instruments Inc.
7.10% 03/04/03 50,000 48,496
Bellsouth Telecomm Inc.
6.375% 06/01/28 75,000 65,119
Bertelsmann US Finance
5.375% 01/28/04 145,000 136,826
Boston University
7.625% 07/15/97 200,000 190,830
Brascan Ltd.
7.375% 10/01/02 60,000 59,419
Burlington Northern
Santa Fe Corp.
6.23% 07/02/18 120,000 109,510
Cleveland Electric Co.
Toledo Edison
7.19% 07/01/00 30,000 30,036
Coastal Corp.
6.375% 02/01/09 160,000 147,803
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Columbia University Trustees
New York
6.83% 12/15/20 $ 65,000 $ 62,973
Conseco Inc.
6.40% 06/15/01 135,000 132,358
6.80% 06/15/05 45,000 41,679
8.70% 11/15/26 50,000 44,510
Continental Cablevision Inc.
8.50% 09/15/01 70,000 72,237
Corporacion Andina De Fomento
6.75% 03/15/05 130,000 123,025
Crown Cork & Seal Co. Inc.
8.00% 04/15/23 85,000 79,965
CSX Corp.
6.25% 10/15/08 220,000 202,851
DaimlerChrysler AG
7.20% 09/01/09 215,000 216,041
Delphi Automotive Systems Corp.
6.125% 05/1/04 85,000 81,749
Diageo Capital PLC
6.625% 06/24/04 105,000 104,600
Dresdner Funding Trust I
8.151% 06/30/31 200,000 188,182(b)
Duke Capital Corp.
7.25% 10/01/04 85,000 85,042
Duke Energy Corp.
5.375% 01/01/09 150,000 131,163
Empresa Nacional De Electricidad
8.125% 02/01/97 65,000 49,888
EOP Operating LP
6.50% 01/15/04 150,000 144,642
FDX Corp.
7.85% 01/30/15 61,793 62,013
Federated Department Stores, Inc.
6.125% 09/01/01 85,000 84,147
Ford Motor Co.
7.45% 07/16/31 200,000 197,192
Ford Motor Credit Co.
6.70% 07/16/04 200,000 198,876
5.80% 01/12/09 120,000 109,024
Fujian International Trust &
Investment Corp.
7.375% 08/25/07 65,000 24,050(b)
General Motors Acceptance Corp.
5.75% 11/10/03 50,000 48,110
6.15% 04/05/07 155,000 145,804
Goldman Sachs Group L.P.
6.65% 05/15/09 100,000 95,047
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 50,000 2,500(b)
HCR Manor Care
7.50% 06/15/06 70,000 65,524
Heritage Media Corp.
8.75% 02/15/06 90,000 92,925
Household Finance Corp.
6.125% 07/15/02 40,000 39,254
Hydro-Quebec
8.05% 07/07/24 95,000 102,006
8.25% 04/15/26 50,000 54,469
Israel Electric Corp. Ltd.
7.125% 07/15/05 50,000 48,600(b)
8.10% 12/16/26 25,000 21,560(b)
J.P. Morgan & Co.
6.00% 01/15/09 200,000 183,170
Korea Development Bank
6.625% 11/21/03 75,000 71,156
- -----------
See Notes to Schedules of Investments and Financial Statements.
52
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Kroger Co.
6.34% 06/01/01 $ 154,000 $ 153,089(b)
7.375% 03/01/05 150,000 147,975
Landesbank Baden-Wuerttember
7.875% 04/15/04 40,000 41,772
LCI International Inc.
7.25% 06/15/07 49,000 48,170
Lehman Brothers Holdings Inc.
8.50% 08/01/15 80,000 83,873
7.50% 08/01/26 115,000 116,308
LG&E Capital Corp.
5.75% 11/01/01 90,000 88,746(b)
Liberty Media Group
7.875% 07/15/09 95,000 95,075(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 70,000 59,386
Lumbermens Mutual Casualty
8.30% 12/01/37 40,000 34,965(b)
MBNA Corp.
6.306% 04/22/03 150,000 146,802
MCI Communications Corp.
6.125% 04/15/02 300,000 297,573
MCI Worldcom Inc.
6.40% 08/15/05 85,000 82,130
8.875% 01/15/06 100,000 105,527
Meditrust
7.114% 08/15/04 100,000 85,253
Merita Bank Ltd.
7.15% 12/29/49 250,000 243,472(b)
Monsanto Co.
5.75% 12/01/05 65,000 60,835
6.85% 12/01/28 65,000 56,300(b)
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 160,000 152,874
Natexis AMBS Co. LLC
8.44% 12/29/49 95,000 90,761(b)
National Rural Utilities Cooperative
6.046% 04/15/03 100,000 98,141
5.50% 01/15/05 75,000 70,717
National Westminster Bank PLC
7.75% 04/29/49 35,000 33,903
New Jersey Economic
Development Authority
7.425% 02/15/29 65,000 64,875
Newell Co.
6.35% 07/15/08 125,000 119,790
News America Holdings Inc.
8.15% 10/17/36 210,000 199,888
Noram Energy Corp.
6.375% 11/01/03 70,000 68,412
Norfolk Southern Corp.
7.90% 05/15/97 78,000 76,471
7.05% 05/01/37 30,000 29,919
North Atlantic Energy Corp.
9.05% 06/01/02 57,000 58,343
Northrop-Grumman Corp.
8.625% 10/15/04 65,000 68,516
Occidental Petroleum Corp.
7.375% 11/15/08 65,000 64,205
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 150,000 142,305(b)
5.625% 02/17/09 65,000 58,469(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 60,000 60,561
6.95% 06/01/06 45,000 45,182
7.20% 02/01/07 30,000 29,684
7.65% 07/01/08 100,000 100,987
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Phillips Petroleum Co.
6.375% 03/30/09 $ 195,000 $ 227,015
Pitney Bowes Credit Corp.
9.25% 06/15/08 200,000 230,436
Principal Financial Group
8.20% 08/15/09 80,000 80,302(b)
Procter & Gamble Co.
6.87% 09/15/09 70,000 70,265
Quebec Province of Canada
7.50% 09/15/29 90,000 90,066
Raytheon Co.
6.75% 08/15/07 150,000 144,582
Republic of Colombia
8.66% 10/07/16 25,000 21,500(b)
RJR Nabisco Inc.
7.375% 05/15/03 100,000 98,601(b)
6.125% 02/01/33 70,000 67,597
Rohm & Haas Co.
6.95% 07/15/04 165,000 165,320(b)
7.85% 07/15/29 100,000 101,564(b)
Safeway Inc.
5.75% 11/15/00 60,000 59,514
7.50% 09/15/09 85,000 85,044
Sprint Capital Corp.
5.70% 11/15/03 60,000 57,295
6.875% 11/15/28 230,000 208,504
St. George Funding Co.
8.485% 12/31/49 150,000 123,927(b)
Stop & Shop Cos. Inc.
9.75% 02/01/02 40,000 42,480
Sun Life Canada Capital Trust
8.526% 05/29/49 225,000 214,906(b)
SunAmerica Inc.
5.60% 07/31/97 150,000 104,600
Suntrust Banks Inc.
6.00% 01/15/28 60,000 55,772
Tele-Communications Inc.
9.80% 02/01/12 125,000 151,382
7.875% 08/01/13 75,000 78,990
Teleglobe Inc.
7.20% 07/20/09 75,000 70,906
Tenet Healthcare Corp.
7.88% 01/15/03 60,000 58,050
8.00% 01/15/05 15,000 14,250
Texas Utilities Co.
5.94% 10/15/01 100,000 98,597
Textron Inc.
6.375% 07/15/04 140,000 137,788
Time Warner Inc.
7.25% 10/15/17 100,000 95,830
Time Warner Pass-
Through Asset Trust
6.10% 12/30/01 250,000 248,632(b)
Tosco Corp.
7.625% 05/15/06 50,000 50,506
Transamerica Capital
7.625% 11/15/37 100,000 93,513
Turner Broadcasting Systems Inc.
8.375% 07/01/13 90,000 95,180
TXU Eastern Funding Co.
6.45% 05/15/05 165,000 156,172(b)
6.75% 05/15/09 100,000 92,724(b)
- ------------
See Notes to Schedules of Investments and Financial Statements.
53
<PAGE>
GE STRATEGIC INVESTMENT FUND
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Tyco International Group S.A.
6.25% 06/15/03 $ 85,000 $ 82,348
6.125% 11/01/08 60,000 55,453
7.00% 06/15/28 305,000 278,050
Union Oil Co. of California
7.35% 06/15/09 100,000 99,095
Union Pacific Corp.
7.00% 02/01/16 200,000 184,746
United Illuminating Co.
6.25% 12/15/02 25,000 24,376
United Parcel Service Inc.
8.375% 04/01/30 115,000 127,417
US Airways
8.36% 07/20/20 85,000 85,592
US West Capital Funding Inc.
6.875% 08/15/01 135,000 134,815(b)
6.125% 07/15/02 30,000 29,334
6.875% 07/15/28 45,000 39,894
US West Communications Inc.
5.625% 11/15/08 95,000 84,321
USA Waste Services Inc.
6.125% 07/15/01 250,000 241,705
USX Marathon Group
9.80% 07/01/01 60,000 62,924
Wal-Mart Stores Inc.
6.875% 08/10/09 150,000 150,277
Waste Management Inc.
6.65% 05/15/05 80,000 79,402
Westdeutsche Landesbank
6.75% 06/15/05 100,000 98,192
Westinghouse Electric Corp.
8.875% 06/01/01 40,000 41,153
Williams Cos. Inc.
6.125% 02/15/02 120,000 118,309
Yale University
7.375% 04/15/96 45,000 44,015
TOTAL CORPORATE NOTES
(COST $15,339,702) 14,635,127
NON-AGENCY MORTGAGE BACKED SECURITIES -- 2.5%
Amresco Commercial Mortgage Funding Corp.
6.73% 06/17/29 73,451 73,268
Asset Securitization Corp.
6.50% 02/14/41 60,534 60,004
Chase Commercial Mortgage Securities Corp.
6.39% 11/18/08 83,000 79,045
Commercial Mortgage Acceptance Corp.
6.49% 05/15/08 106,000 101,081
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 08/11/15 83,000 77,877
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 73,000 68,837
DLJ Mortgage Acceptance Corp.
6.41% 02/15/08 246,000 232,393
6.65% 12/17/27 23,005 22,926(b)
First Union Lehman Brothers-Bank of America
6.28% 06/18/07 299,890 292,205
6.56% 11/18/08 1,335,000 1,282,434
GMAC Commercial Mortgage Security Inc.
6.42% 08/15/08 74,000 69,872
9.88% 08/15/23 1,998,257 79,306(d,g)
GS Mortgage Securities Corp.
6.86% 07/13/30 117,000 116,817
PRINCPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Lehman Large Loan
6.79% 06/12/04 $ 70,849 $ 70,650
Merrill Lynch Mortgage
Investors Inc.
5.71% 01/15/02 165,000 162,332
6.39% 02/15/30 291,000 277,314
Mid State Trust
7.54% 07/01/35 25,298 24,334
Morgan Stanley Capital I
6.86% 05/15/06 115,728 115,637(b)
6.52% 01/15/08 25,000 24,133
6.54% 05/15/08 142,000 137,163
6.21% 09/15/08 32,000 30,175
9.81% 04/15/23 976,559 39,978(d,g)
6.01% 11/15/30 120,009 115,883
6.48% 11/15/30 102,000 97,952
10.04% 11/15/31 1,523,644 73,802(b,d,g)
Nationslink Funding Corp.
6.001% 11/20/07 68,360 65,754
Sawgrass Finance REMIC Trust
6.45% 01/20/06 60,000 60,028
Structured Asset Securities Corp.
5.939% 08/25/00 345,646 345,431(b)
8.389% 04/25/27 59,396 61,252
8.45% 02/25/28 534,971 27,250(d,g)
Vornado Finance Corp.
6.36% 12/01/00 355,000 354,556(b)
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $4,819,461) 4,639,689
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.3%
BlackRock Capital Finance
7.22% 11/25/28 255,000 243,007(b)
7.25% 11/25/28 148,953 89,372(b)
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 93,296 83,065
7.00% 07/25/24 125,367 113,320
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $613,803) 528,764
TOTAL BONDS AND NOTES
(COST $68,092,208) 66,100,073
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
- --------------------------------------------------------------------------------
DOMESTIC PREFERRED -- 0.4%
Centaur Funding Corp.
(Series B), 9.08% 405 418,709(b)
Microsoft Corp.
(Series A), 2.75% 3,082 310,319
TCI Communications Inc.,
10.00% 2,800 72,975
802,003
- ------------
See Notes to Schedules of Investments and Financial Statements.
54
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------
INTERNATIONAL PREFERRED -- 0.1%
British Energy PLC 3,783 $ 25,691(a)
Henkel KGaA 1,463 91,846
117,537
TOTAL PREFERRED STOCK
(COST $937,914) 919,540
- --------------------------------------------------------------------------------
WARRANTS -- 0.0%
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) 27 925(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $151,867,151) 178,530,659
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.9%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $16,520,169) 16,520,169 16,520,169
OTHER ASSETS AND LIABILITIES,
NET (4.8)% (8,860,345)
-------------
NET ASSETS-- 100% $186,190,483
==============
- -----------
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 SEPTEMBER 30, 1999.
55
<PAGE>
GE INCOME FUNDS
Q&A
ROBERT MACDOUGALL LEADS THE FIXED INCOME TEAM AT GE INVESTMENTS. TOTAL ASSETS
UNDER HIS MANAGEMENT EXCEEDS $28 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 ONE-YEAR PERIOD
ENDED SEPTEMBER 30, 1999.
A. During the past twelve months, the bond market retraced the rally of the
previous year. From September 1997 to September 1998 the yield of the
30-year U.S. Treasury Bond fell from 6.04% to 4.97%. At September 30, 1999
it was back to 6.05%. The double-digit returns we enjoyed in 1998 were
followed by negative returns in 1999. The global market turmoil in the fall
of 1998 prompted the Federal Reserve Board (the "Fed") to ease monetary
policy three times for a total of 75 basis points (0.75%). As we entered
1999 and the crisis subsided, investors turned their attention back to the
domestic economy.
Strong growth and the low unemployment rate raised fears of inflation which
pushed bond yields higher. Fed policy became restrictive and the targeted
rate for Federal Funds was raised 50 basis points (0.50%) in two steps.
Overall, the market, as represented by the Lehman Brothers Aggregate Bond
Index, had a negative return of 0.37% for the period. Interest income of
6.6% was offset by a price decline of 7.0% due to the rise in interest
rates. The government and corporate sectors had similar returns (-1.70% and
-1.40%, respectively) while mortgage backed securities posted a positive
2.27% return. This was attributable primarily to their shorter duration
(interest rate exposure).
GE FIXED INCOME FUND
Q. HOW DID THE GE FIXED INCOME FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM
FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The Lehman Brothers Aggregate Bond Index returned a negative 0.37% while the
average return for the 137 Intermediate U.S. Government Bond funds tracked
by Lipper was a negative 1.50%. 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. Although, the portfolio marginally outperformed the LB Aggregate before fees
and expenses, the fund's actual performance trailed the benchmark. A longer
average duration (sensitivity to interest rates) during this period of
rising rates was a drag on performance. Offsetting this was favorable sector
allocation (overweight mortgage backed securities) and good security
selection in the corporate bond sector.
[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 ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The Lehman Brothers Government Bond Index returned a negative 1.71% while
the average return for the 137 Intermediate U.S. Government Bond funds
tracked by Lipper was a negative 1.50%. 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. Although the portfolio outperformed the LB Government Bond Index before fees
and expenses, the fund's actual performance trailed the benchmark. The
fund's allocation to both residential and commercial mortgage backed
securities added to performance relative to the benchmark. Underperformance
versus peers is attributable primarily to longer average duration.
GE SHORT-TERM
GOVERNMENT FUND
Q. HOW DID THE GE SHORT-TERM GOVERNMENT FUND'S BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The Lehman Brothers 1-3 Year Government Bond Index returned 3.19% while the
average return for the 191 Short-Term U.S. Government Bond funds tracked by
Lipper was 1.64%. 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. This fund's shorter average duration allowed it to post a positive return
despite some price depreciation due to increasing interest rates. Once again
higher yielding mortgage and asset backed securities added to performance
relative to both benchmark and peers.
OVERALL
Q. WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
A. We are in the ninth year of the current economic expansion with no end in
sight. Growth continues to be strongly fueled by consumer spending and
business capital investment. Exports are picking up as foreign economies
improve. With unemployment at a 30 year low, the market and the Fed worry
that inflationary pressures are building. Yet, reported inflation remains
benign. Core (excluding food and energy) CPI (Consumer Price Index) is
running at a 1.6% rate in 1999, the slowest pace in 33 years. We believe
that the Fed's pre-emptive tightening of monetary policy will be successful
in controlling inflation. While this may result in some additional
volatility in the near term, it suggests lower rates in the future.
57
<PAGE>
GE FIXED INCOME FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings** Net Assets
- --------------------------------------------------------------------------------
Aaa or better 77.1%
A to AA 12.7%
Below A 10.2%
- --------------------------------------------------------------------------------
100.0%
- --------------------------------------------------------------------------------
** MOODY'S INVESTORS SERVICE, INC./STANDARD & POOR'S ARE NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATIONS.
INVESTMENT PROFILE
A mutual 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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 137 85
Peer group
average annual
total return: (1.50)% 6.45%
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
2/22/93 $10,000.00 $10,000.00 $10,000.00
10,081.00 59,655.60 10,041.80
9/93 10,524.00 10,079.81 10,576.96
10,249.59 9,816.97 10,279.87
9/94 10,211.26 9,780.18 10,235.87
10,700.74 10,248.90 10,792.61
9/95 11,519.50 11,033.11 11,675.08
11,743.72 11,247.85 11,955.18
9/96 11,991.43 11,485.12 12,244.82
12,293.78 11,774.71 12,542.24
9/97 13,124.17 12,570.04 13,437.82
13,651.43 13,075.03 14,047.16
9/98 14,444.00 13,834.25 14,983.10
14,388.18 13,781.04 14,957.20
9/99 14,270.44 13,668.26 14,926.95
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Fixed Income (1.20)% 6.92% 5.53%
GE Fixed Income w/load (5.42)% 6.00% 4.84%
(maximum load-4.25%)
LB Aggregate (0.37)% 7.84% 6.27%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME GE FIXED INCOME W/LOAD LB AGGREGATE
12/22/93 $10,000.00 $10,000.00 $10,000.00
9,742.02 9,742.02 9,712.67
9/94 9,669.13 9,669.13 9,671.10
10,094.77 10,094.77 10,197.12
9/95 10,827.50 10,827.50 11,030.90
10,997.08 10,997.08 11,295.55
9/96 11,196.65 11,196.65 11,569.21
11,437.39 11,437.39 11,850.22
9/97 12,164.50 12,164.50 12,696.38
12,616.61 12,616.61 13,272.10
9/98 13,288.00 13,288.00 14,157.41
13,198.88 13,198.88 14,132.94
9/99 13,042.69 13,042.69 14,104.35
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Fixed Income (1.85)% 6.17% 4.71%
GE Fixed Income w/load (4.66)% 6.17% 4.71%
maximum load 3.0% 0.0% 0.0%
LB Aggregate (0.37)% 7.84% 6.16%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME LB AGGREGATE
11/29/93 $10,000.00 $10,000.00
9,790.00 9,766.01
9/94 9,765.50 9,724.21
10,246.42 10,253.12
9/95 11,044.37 11,091.48
11,269.08 11,357.58
9/96 11,521.71 11,632.74
11,828.12 11,915.30
9/97 12,643.48 12,766.11
13,178.51 13,344.99
9/98 13,950.00 14,234.14
13,924.76 14,209.54
9/99 1 3,827.95 14,180.80
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Fixed Income (0.87)% 7.20% 5.71%
LB Aggregate (0.37)% 7.84% 6.17%
58
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE FIXED INCOME FUND
[PIE CHART OMITTED]
MORTGAGE BACKED 29.6%
FEDERAL AGENCIES 24.3%
CORPORATE NOTES 22.5%
U.S. TREASURIES 17.0%
CASH & OTHER 6.6%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 95.3%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 17.0%
U.S. Treasury Bonds
8.125% 08/15/19 $5,610,000 $ 6,639,940(h)
8.125% 05/15/21 1,462,000 1,743,888(h)
5.25% 02/15/29 980,000 857,657(h)
9,241,485
U.S. Treasury Notes
5.25% 05/31/01 678,000 673,871(h)
6.50% 08/31/01 4,165,000 4,230,057(h)
6.625% 03/31/02 630,000 643,192(h)
5.25% 05/15/04 2,397,000 2,342,684(h)
6.00% 08/15/04 2,350,000 2,372,772(h)
7.00% 07/15/06 70,000 73,522(h)
5.50% 05/15/09 710,000 687,039(h)
6.00% 08/15/09 160,000 161,299(h)
11,184,436
U.S. Treasury STRIPS
6.48% 08/15/11 2,530,000 1,186,595(d,h,f)
6.51% 02/15/12 1,650,000 746,889(d,h,f)
1,933,484
TOTAL U.S. TREASURIES
(COST $22,987,925) 22,359,405
FEDERAL AGENCIES -- 24.3%
Federal Home Loan Bank
5.625% 03/19/01 885,000 880,849
5.875% 08/15/01 2,580,000 2,569,912
5.25% 04/25/02 990,000 969,576
6.22% 03/18/08 880,000 830,641
5.75% 04/15/08 850,000 800,590
6,051,568
Federal Home Loan Mortgage Corp.
6.50% 07/01/29 4,187,919 4,017,764
Federal National Mortgage Assoc.
5.38% 01/16/01 895,000 887,312
5.125% 02/13/04 1,775,000 1,691,238
5.78% 05/05/04 685,000 662,306
6.99% 07/09/07 945,000 933,036
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
5.64% 12/10/08 $ 935,000 $ 867,848
6.04% 02/25/09 1,930,000 1,812,096
9.00% 06/01/09 795,285 839,523
7.50% 12/01/09 2,100,443 2,131,949
6.50% 04/01/13 566,298 556,031
7.00% 08/01/13 145,522 145,454
7.50% 02/01/14 829,939 842,388
9.00% 04/01/16 844,898 895,064
9.50% 11/01/17 288,397 309,847
8.00% 12/01/17 356,645 366,004
9.00% 12/01/17 287,485 301,137
7.50% 12/01/18 191,487 193,011
9.50% 08/01/22 514,627 552,902
9.00% 12/01/22 316,328 331,600
7.50% 12/01/23 1,675,439 1,686,949
6.16% 08/07/28 960,000 869,098
6.50% 01/01/29 - 06/01/29 2,450,290 2,349,215
8.00% TBA 1,840,000 1,877,370(c)
21,101,378
Small Business Administration
6.55% 10/01/17 - 12/01/17 218,105 213,640
6.125% 01/01/18 511,422 489,047
702,687
TOTAL FEDERAL AGENCIES
(COST $32,696,823) 31,873,397
AGENCY MORTGAGE BACKED -- 21.1%
Federal Home Loan Mortgage Corp.
5.125% 10/15/08 1,105,000 990,180
6.625% 09/15/09 810,000 807,343
7.50% 11/01/09 383,686 390,278
7.50% 06/01/10 444,681 452,321
9.00% 12/01/16 223,353 233,395
6.247% 03/17/21 176,000 164,505
9.50% 04/01/21 19,402 20,578(h)
5.75% 06/15/23 293,000 280,181
8.00% 08/01/24 65,498 67,013
8.00% 08/01/25 - 10/01/25 334,781 342,417
8.00% 11/01/26 44,993 46,019
8.00% 02/01/28 50,502 51,654
6.50% TBA 1,754,000 1,683,016(c)
7.00% TBA 8,256,920 8,118,864(c)
13,647,764
Federal National Mortgage Assoc.
6.50% 01/01/04 19,300 19,157
7.00% 06/18/20 49,094 49,002(b)
6.424% 12/25/23 175,000 165,813
7.00% 10/01/27 - 11/01/27 2,046,753 2,008,414
7.00% 07/01/28 414,596 407,340
2,649,726
Federal National Mortgage Assoc. REMIC
4.27% 12/17/04 141,630 144,440(d)
6.171% 05/25/14 48,454 47,568
6.366% 05/25/18 132,000 125,483
8.00% 10/25/20 97,109 98,595
9.00% 05/25/22 71,364 18,341(d,g)
8.50% 07/25/22 131,064 32,973(d,g)
5.73% 12/25/22 70,281 53,634(d,f)
521,034
- ----------
See Notes to Schedules of Investments and Financial Statements.
59
<PAGE>
GE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Government National Mortgage Assoc.
7.00% 03/15/12 $1,279,806 $ 1,285,002
9.00% 11/15/16 770,598 813,459
9.00% 01/15/17 - 11/15/17 605,227 638,750
9.50% 12/15/17 546,519 586,506
9.00% 12/15/21 63,551 66,888
7.50% 01/15/23 - 12/15/23 1,720,017 1,731,301
6.50 % 02/15/24 389,008 375,027(b)
6.50% 02/15/24 - 04/15/24 553,585 533,689
7.50% 01/15/28 - 09/15/28 776,949 779,846
6.50% 04/15/28 1,690,632 1,616,126
7.00% 02/15/28 - 04/15/28 826,707 810,942
8.00% TBA 1,579,000 1,614,038(c)
10,851,574
TOTAL AGENCY MORTGAGE BACKED
(COST $28,109,042) 27,670,098
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.6%
Collateralized Mortgage Obligation Trust
4.97% 09/01/15 20,886 18,550(d,f)
5.57% 11/01/18 74,293 55,580(d,f)
74,130
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 34,912 35,479
Federal National Mortgage Assoc.
8.50% 03/01/17 28,273 7,104(d,g)
15.44% 04/01/17 56,514 14,464(d,g)
8.50% 01/01/18 10,218 2,590(d,g)
6.00% 03/25/19 758,640 692,964
717,122
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $867,942) 826,731
ASSET BACKED -- 1.9%
Advanta Mortgage Loan Trust Corp.
6.30% 7/25/25 23,520 23,211
Capital One Master Trust
5.43% 1/15/07 200,000 191,375
Citibank Credit Card Master Trust I
5.75% 1/15/03 41,000 40,846
5.50% 2/15/06 259,000 247,506
Discover Card Master Trust I
5.75% 10/16/03 191,000 189,507
5.30% 8/15/04 157,000 152,903
5.60% 5/16/06 570,000 547,467
First USA Credit Card Master Trust
5.28% 9/18/06 404,000 384,430
Ford Credit Auto Loan Master Trust
5.50% 2/15/03 95,000 93,970
Ford Credit Auto Owner Trust
5.90% 6/15/02 232,000 231,239
Green Tree Financial Corp.
6.90% 4/15/18 136,320 136,447
Peco Energy Transport Trust
5.80% 3/01/07 125,000 120,077
6.05% 3/01/09 125,000 118,085
TOTAL ASSET BACKED
(COST $2,557,718) 2,477,063
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE NOTES -- 22.5%
Abbey National PLC
6.70% 06/29/49 $530,000 $ 484,383(d)
7.35% 10/29/49 145,000 140,666(d)
Aetna Services Inc.
6.97% 08/15/36 330,000 325,581
Amerada Hess Corp.
7.875% 10/01/29 125,000 123,013
American Airlines Inc.
6.855% 04/15/09 125,000 124,839
Arizona Public Service Co.
6.25% 01/15/05 120,000 114,910
Armstrong World Industries Inc.
7.45% 05/15/29 200,000 186,836
Associates Corp. of North America
6.375% 10/15/02 500,000 496,845
Associates Corporation
of North America
5.75% 11/01/03 250,000 241,357
AT&T Corp.
6.50% 03/15/29 245,000 216,163
Atlantic City Electric Co.
6.19% 01/17/06 305,000 292,754
Bank of Scotland
7.00% 11/29/49 180,000 168,457(b)
Bank One Corp.
6.40% 08/01/02 180,000 178,859
Beckman Instruments Inc.
7.10% 03/04/03 100,000 96,992
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 75,000 83,227
Bellsouth Telecomm Inc.
6.375% 06/01/28 115,000 99,849
Bertelsmann US Finance
5.375% 01/28/04 295,000 278,371
Boston University
7.625% 07/15/97 325,000 310,099
Brascan Ltd.
7.375% 10/01/02 120,000 118,837
Burlington Northern Santa Fe Corp.
6.23% 07/02/18 240,000 219,019
CBS Corp.
7.15% 05/20/05 170,000 167,739
Cleveland Electric Co. Toledo Edison
7.19% 07/01/00 60,000 60,072
Coastal Corp.
6.375% 02/01/09 350,000 323,318
Columbia University Trustees
New York
6.83% 12/15/20 120,000 116,257
Conseco Inc.
6.40% 06/15/01 305,000 299,031
6.80% 06/15/05 165,000 152,823
8.70% 11/15/26 95,000 84,569
Continental Cablevision Inc.
8.50% 09/15/01 125,000 128,994
Corporacion Andina De Fomento
6.75% 03/15/05 190,000 179,806
Crown Cork & Seal Co. Inc.
8.00% 04/15/23 165,000 155,227
CSX Corp.
6.25% 10/15/08 380,000 350,379
DaimlerChrysler AG
7.20% 09/01/09 360,000 361,742
Delphi Automotive Systems Corp.
6.125% 05/01/04 170,000 163,497
- -------------
See Notes to Schedules of Investments and Financial Statements.
60
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Diageo Capital PLC
6.625% 06/24/04 $120,000 $ 119,543
Dresdner Funding Trust I
8.151% 06/30/31 350,000 329,318(b)
Duke Capital Corp.
7.25% 10/01/04 125,000 125,061
Duke Energy Corp.
5.375% 01/01/09 400,000 349,768
Empresa Nacional De Electricidad
8.125% 02/01/97 100,000 76,751
EOP Operating LP
6.50% 01/15/04 185,000 178,392
Federal Express Corp.
7.85% 01/30/15 132,949 133,421
Federated Department Stores Inc.
6.125% 09/01/01 170,000 168,295
Ford Motor Credit Co.
6.70% 07/16/04 220,000 218,763
5.80% 01/12/09 175,000 158,993
7.45% 07/16/31 205,000 202,122
Fujian International Trust
& Investment Corp.
7.375% 08/25/07 65,000 24,050(b,o)
General Motors Acceptance Corp.
5.75% 11/10/03 110,000 105,842
6.15% 04/05/07 315,000 296,311
Goldman Sachs Group
6.65% 05/15/09 200,000 190,094
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 65,000 3,250(b,n)
HCR Manor Care
7.50% 06/15/06 145,000 135,727
Heritage Media Corp.
8.75% 02/15/06 135,000 139,388
Household Finance Corp.
6.125% 07/15/02 135,000 132,484
Hydro-Quebec
8.05% 07/07/24 60,000 64,425
8.25% 04/15/26 360,000 392,173
Israel Electric Corp. Ltd.
7.125% 07/15/05 95,000 92,340(b)
8.10% 12/16/26 240,000 206,978(b)
J.P. Morgan & Co.
6.00% 01/15/09 300,000 274,755
Korea Development Bank
6.625% 11/21/03 135,000 128,080
Kroger Co.
6.34% 06/01/01 206,000 204,781(b)
7.375% 03/01/05 130,000 128,245
Landesbank Baden-Wuerttember
7.875% 04/15/04 160,000 167,086
LCI International Inc.
7.25% 06/15/07 226,000 222,174
Lehman Brothers Holdings Inc.
8.50% 08/01/15 100,000 104,841
7.50% 08/01/26 205,000 207,333
LG&E Capital Corp.
5.75% 11/01/01 200,000 197,214(b)
Liberty Media Group
7.875% 07/15/09 160,000 160,126(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 125,000 106,046
Lumbermens Mutual Casualty
8.30% 12/01/37 65,000 56,818(b)
MBNA Corp.
6.306% 04/22/03 200,000 195,736
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MCI Communications Corp.
6.125% 04/15/02 $300,000 $ 297,573
MCI Worldcom Inc.
6.40% 08/15/05 165,000 159,428
8.875% 01/15/06 200,000 211,054
Meditrust
7.114% 08/15/04 130,000 110,829
Merita Bank Ltd.
7.15% 12/29/49 145,000 141,214(b)
Monsanto Co.
5.75% 12/01/05 150,000 140,388
6.85% 12/01/28 150,000 129,924(b,d)
Morgan Stanley Dean Witter & Co.
5.625% 01/20/04 350,000 334,411
Nabisco Inc.
6.70% 06/15/02 550,000 544,296
6.125% 02/01/03 140,000 135,194
7.375% 05/15/03 200,000 197,202(b)
Natexis AMBS Co. LLC
8.44% 12/29/49 335,000 320,052(b)
National Rural Utilities Cooperative
6.046% 04/15/03 115,000 112,862
5.50% 01/15/05 150,000 141,434
National Westminster Bank PLC
7.75% 04/29/49 265,000 256,698
New Jersey Economic
Development Authority
7.425% 02/15/29 115,000 114,779
Newell Co.
6.35% 07/15/08 195,000 186,872
News America Holdings Inc.
8.15% 10/17/36 100,000 95,185
Noram Energy Corp.
6.375% 11/01/03 140,000 136,825
Norfolk Southern Corp.
7.05% 05/01/37 60,000 59,837
North Atlantic Energy Corp.
9.05% 06/01/02 108,000 110,546
Northrop-Grumman Corp.
8.625% 10/15/04 130,000 137,032
Occidental Petroleum Corp.
7.375% 11/15/08 160,000 158,043
Paramount Communications Inc.
7.50% 01/15/02 125,000 126,599
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 300,000 284,610(b)
5.625% 02/17/09 135,000 121,435(b)
Philip Morris Cos. Inc.
7.25% 09/15/01 120,000 121,122
6.95% 06/01/06 95,000 95,385
7.20% 02/01/07 100,000 98,946
7.65% 07/01/08 375,000 378,701
Phillips Petroleum Co.
9.375% 02/15/11 195,000 227,015
Pitney Bowes Credit Corp.
9.25% 06/15/08 250,000 288,045
Principal Financial Group
8.20% 08/15/09 150,000 150,567(b)
Procter & Gamble Co.
6.875% 09/15/09 100,000 100,378
Quebec Province of Canada
5.67% 02/27/26 890,000 888,403
7.50% 09/15/29 100,000 100,073
Raytheon Co.
6.75% 08/15/07 200,000 192,776
Republic of Columbia
8.66% 10/07/16 75,000 64,500(b)
- --------------
See Notes to Schedules of Investments and Financial Statements.
61
<PAGE>
GE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Rohm & Haas Co.
6.95% 07/15/04 $ 110,000 $ 110,214(b)
7.85% 07/15/29 105,000 106,642(b)
Safeway Inc.
5.75% 11/15/00 130,000 128,946
7.50% 09/15/09 125,000 125,065
Sprint Capital Corp.
5.70% 11/15/03 120,000 114,590
6.875% 11/15/28 720,000 652,709
St. George Funding Co.
8.485% 12/31/49 345,000 285,032(b)
Stop & Shop Cos. Inc.
9.75% 02/01/02 80,000 84,960
Sun Life Canada Capital Trust
8.526% 05/29/49 335,000 319,972(b)
SunAmerica Inc.
5.60% 07/31/97 485,000 338,205
Suntrust Bank Inc.
6.00% 01/15/28 120,000 111,544
Tele-Communications Inc.
9.80% 02/01/12 165,000 199,825
7.875% 08/01/13 120,000 126,384
Teleglobe Canada Inc.
7.20% 07/20/09 120,000 113,449
Tenet Healthcare Corp.
7.875% 01/15/03 105,000 101,588
Texas Utilities Co.
5.94% 10/15/01 675,000 665,530
Textron Inc.
6.375% 07/15/04 165,000 162,393
Time Warner Entertainment Co. L.P.
10.15% 05/01/12 75,000 89,712
Time Warner Inc.
7.25% 10/15/17 250,000 239,575
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 280,000 278,468(b)
Tosco Corp.
7.625% 05/15/06 105,000 106,063
Transamerica Capital
7.625% 11/15/37 105,000 98,189
Turner Broadcasting Systems Inc.
8.375% 07/01/13 160,000 169,208
TXU Eastern Funding Co.
6.45% 05/15/05 385,000 364,402(b)
6.75% 05/15/09 200,000 185,448(b)
Tyco International Group S.A.
6.25% 06/15/03 255,000 247,044
6.125% 11/01/08 160,000 147,874
7.00% 06/15/28 135,000 123,071
Union Oil Co. of California
7.35% 06/15/09 200,000 198,190
Union Pacific Corp.
7.00% 02/01/16 600,000 554,238
United Illuminating Co.
6.25% 12/15/02 50,000 48,752
United Parcel Service Inc.
8.375% 04/01/30 115,000 127,417
US Airways Pass Through Trust
8.36% 07/20/20 150,000 151,045
US West Capital Funding Inc.
6.875% 08/15/01 250,000 249,657(b)
6.125% 07/15/02 55,000 53,778
6.875% 07/15/28 85,000 75,356
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
US West Communications Inc.
5.625% 11/15/08 $ 150,000 $ 133,139
USA Waste Services Inc.
6.125% 07/15/01 500,000 483,410(d)
USX Marathon Group
9.80% 07/01/01 120,000 125,849
Viacom Inc.
7.75% 06/01/05 250,000 253,500
Wal-Mart Stores Inc.
6.875% 08/10/09 200,000 200,370
Waste Management Inc.
6.65% 05/15/05 190,000 188,579
Westdeutsche Landesbank
6.75% 06/15/05 200,000 196,384
Westinghouse Electric Corp.
8.875% 06/01/01 75,000 77,162
Williams Cos. Inc.
6.125% 02/15/02 235,000 231,689
Yale University
7.375% 04/15/96 70,000 68,467
TOTAL CORPORATE NOTES
(COST $30,965,824) 29,524,552
NON-AGENCY MORTGAGE BACKED SECURITIES -- 6.8%
Amresco Commercial
Mortgage Funding Corp.
6.73% 06/17/29 133,181 132,848
Asset Securitization Corp.
6.50% 02/14/41 98,368 97,507
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 714,000 679,973
Commercial Mortgage
Acceptance Corp.
6.49% 05/15/08 370,000 352,830
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 11/11/30 663,000 622,081
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 472,000 445,081
DLJ Mortgage Acceptance Corp.
6.41% 02/15/08 462,000 436,445
6.65% 12/17/27 50,611 50,437(b)
First Union Lehman Brothers-
Bank of America
6.28% 06/18/07 535,517 521,795
6.56% 11/18/08 381,000 365,998
GMAC Commercial
Mortgage Security Inc.
6.42% 08/15/08 237,000 223,780
10.03% 08/15/23 4,273,500 169,604(d,g)
GS Mortgage Securities Corp.
6.86% 07/13/30 207,000 206,677
Lehman Large Loan
6.79% 06/12/04 125,166 124,814
Merrill Lynch Mortgage
Investors Inc.
5.71% 01/15/02 320,000 314,826
6.39% 02/15/30 376,000 358,316
Mid State Trust
7.54% 07/01/35 50,596 48,667
- ----------
See Notes to Schedules of Investments and Financial Statements.
62
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Morgan Stanley Capital Inc.
6.86% 05/15/06 $ 209,493 $ 209,329(b)
6.52% 01/15/08 79,000 76,260
6.21% 09/15/08 777,000 732,687
9.92% 04/15/23 2,092,625 85,667(d)
6.01% 11/15/30 261,752 252,754
6.48% 11/15/30 462,000 443,664
10.04% 11/15/31 3,934,872 190,595(b,d,g)
Nationslink Funding Corp.
6.001% 11/20/07 149,062 143,379
Sawgrass Finance REMIC Trust
6.45% 1/20/06 100,000 100,047
Structured Asset Securities Corp.
5.989% 8/25/00 702,216 701,777(b,m)
8.389% 4/25/27 186,617 192,449
8.45% 2/25/28 1,095,932 55,824(d,g)
Vornado Finance Corp.
6.36% 12/01/00 572,000 571,285(b)
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $9,279,662) 8,907,396
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.1%
BlackRock Capital Finance
7.22% 11/25/28 456,000 434,554(b)
7.25% 11/25/28 266,957 160,174(b)
Norwest Asset Securities Corp.
6.25% 12/25/28 623,370 518,376
Salomon Brothers Mortgage
Securities Inc.
7.00% 7/25/24 165,212 147,093
7.00% 7/25/24 222,551 201,166
TOTAL NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $1,650,390) 1,461,363
TOTAL BONDS AND NOTES
(COST $129,115,326) 125,100,005
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
- --------------------------------------------------------------------------------
CORPORATE PREFERRED -- 0.6%
Centaur Funding Corp.
(Series B), 9.08% 600 620,310(b)
TCI Communications Inc.,
10.00% 4,800 125,100
TOTAL PREFERRED STOCK
(COST $782,329) 745,410
TOTAL INVESTMENTS IN SECURITIES
(COST $129,897,655) 125,845,415
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 13.6%
- --------------------------------------------------------------------------------
TIME DEPOSIT -- 6.1%
State Street Cayman Islands
5.375% 10/01/99 $7,967,601 $ 7,967,601
U.S. GOVERNMENT AGENCIES -- 7.5%
Federal Home Loan Mortgage Corp.
5.20% 10/01/99 9,900,000 9,900,000(d)
TOTAL SHORT-TERM INVESTMENTS
(COST $17,867,601) 17,867,601
OTHER ASSETS AND LIABILITIES,
NET (9.5)% (12,420,380)
-------------
NET ASSETS-- 100% $131,292,636
=============
- -----------
See Notes to Schedules of Investments and Financial Statements.
63
<PAGE>
GE GOVERNMENT SECURITIES FUND
FIVE YEAR TREASURY NOTE YIELD HISTORY
4/1/98 -- 9/30/99
[LINE GRAPH OMITTED]
9/99 5.8%
8/99 5.79%
7/99 5.86%
6/99 5.71%
5/99 5.60%
4/99 5.25%
3/99 5.2%
2/99 5.29%
1/99 4.6%
12/98 4.63%
11/98 4.53%
10/98 4.23%
10/1/98 4.08%
HIGH 5.92%
LOW 5.13%
AVG. 4.08%
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 9/30/99
One Five Ten
Year Year Year
----- ----- -----
Number of
Funds in
peer group: 137 85 25
Peer group
average annual
total return: (1.50)% 6.45% 6.84%
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 GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
9/8/93 $10,000.00 $10,000.00 $10,000.00
9/93 9,903.09 9,482.20 10,038.00
9,609.14 9,200.75 9,702.89
9/94 9,084.41 8,698.33 9,632.30
9,365.20 8,967.18 10,121.71
9/95 9,978.59 9,554.50 10,939.25
10,155.47 9,723.87 11,180.35
9/96 10,352.80 9,912.81 11,422.80
10,601.57 10,151.01 11,660.57
9/97 11,329.33 10,847.83 12,467.87
11,788.54 11,287.52 13,076.55
9/98 12,646.00 12,109.00 14,163.97
12,481.59 11,951.12 13,948.63
9/99 12,391.64 11,862.87 13,921.07
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Gov't Securities (2.01)% 6.41% 3.60%
GE Gov't Securities
w/load (6.23)% 5.49% 2.86%
(maximum load-4.25%)
LB Gov't (1.71)% 7.64% 5.59%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
9/89 $10,000.00 $10,000.00 $10,000.00
9/90 11,889.15 11,889.15 10,694.57
9/91 13,518.99 13,518.99 12,349.74
9/92 14,894.90 14,894.90 13,945.92
9/93 16,052.28 16,052.28 15,491.19
9/94 14,608.99 14,608.99 14,865.09
9/95 15,962.84 15,962.84 16,882.04
9/96 16,416.08 16,416.08 17,628.30
9/97 17,964.52 17,964.52 19,241.10
9/98 20,050.38 20,050.38 21,858.61
9/99 17,851.73 17,851.73 21,483.76
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE TEN
YEAR YEAR YEAR
GE Gov't Securities (2.42)% 5.76% 5.97%
GE Gov't Securities
w/load (5.18)% 5.76% 5.97%
maximum load 3.0% 0.0% 0.0%
LB Gov't (1.71)% 7.64% 7.95%
64
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE GOVERNMENT SECURITIES FUND
[PIE CHART OMITTED]
MORTGAGE BACKED 41.1%
FEDERAL AGENCIES 34.1%
U.S. TREASURIES 15.4%
CASH & OTHER 6.2%
ASSET BACKED 3.2%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 93.8%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 15.4%
U.S. Treasury Bonds
8.125% 08/15/19 $6,915,000 $ 8,184,525(h)
8.125% 05/15/21 10,974,000 13,089,897(h)
5.25% 02/15/29 3,705,000 3,242,467(l)
24,516,889
U.S. Treasury Notes
5.00% 04/30/01 988,000 978,891(h)
5.25% 05/31/01 2,122,000 2,109,077(h)
6.625% 04/30/02 2,500,000 2,554,300(h)
5.50% 03/31/03 1,310,000 1,297,516(h)
4.75% 02/15/04 900,000 863,298(h)
7.00% 07/15/06 11,835,000 12,430,419(h)
5.50% 05/15/09 3,475,000 3,362,618(l)
23,596,119
TOTAL U.S. TREASURIES
(COST $50,563,247) 48,113,008
FEDERAL AGENCIES -- 34.1%
Federal Home Loan Bank
5.625% 03/19/01 2,430,000 2,418,603
5.875% 08/15/01 775,000 771,970
3,190,573
Federal Home Loan Mortgage Corp.
5.125% 10/15/08 2,065,000 1,850,426
Federal National Mortgage Assoc.
11.875% 05/19/00 29,000,000 30,078,510
Financing Corp.
10.70% 10/06/17 28,165,000 39,061,193(h)
9.65% 11/02/18 2,020,000 2,600,427
41,661,620
Small Business Administration
8.15% 02/01/15 1,512,416 1,580,947
8.10% 03/01/15 7,534,012 7,867,157
7.60% 05/01/16 3,333,939 3,419,892
7.55% 06/01/16 7,023,439 7,197,928
7.70% 07/01/16 4,991,943 5,147,941
7.15% 03/01/17 4,435,336 4,473,452
29,687,317
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TOTAL FEDERAL AGENCIES
(COST $106,612,241) $106,468,446
AGENCY MORTGAGE BACKED -- 33.7%
Federal Home Loan Mortgage Corp.
7.50% 02/01/07 $ 59,927 60,826
7.50% 02/01/09 - 05/01/09 29,433 29,927
7.50% 09/01/09 97,011 98,602
7.50% 06/01/10 - 12/01/10 4,053,779 4,118,820
7.50% 02/01/11 - 11/01/11 3,505,977 3,561,074
7.50% 01/01/12 - 07/01/12 3,413,298 3,466,295
9.00% 12/01/14 1,431,915 1,480,529
6.50% 08/01/25 - 12/01/25 6,226,957 6,012,665
6.50% 01/01/26 2,064,042 1,991,140
7.00% 12/01/26 14,757 14,517
6.50% 02/01/27 627,893 603,166
7.00% 07/01/29 908,143 892,813
7.00% TBA 1,705,400 1,676,886(c)
24,007,260
Federal National Mortgage Assoc.
9.00% 06/01/09 1,685,244 1,777,522
7.50% 12/01/09 1,859,121 1,887,007
7.50% 02/01/14 2,926,628 2,970,527
9.00% 04/01/16 1,575,952 1,669,524
8.00% 12/01/17 1,536,847 1,577,174
9.00% 05/01/21 - 07/01/21 1,027,682 1,078,737
7.50% 12/01/23 2,379,123 2,395,468
7.00% 10/01/27 - 12/01/27 8,841,611 8,667,542
6.16% 08/07/28 14,800,000 13,398,588
7.50% 01/19/39 6,752,638 6,775,850
42,197,939
Government National Mortgage Assoc.
7.00% 03/15/12 3,647,447 3,662,256
9.00% 05/15/13 140,863 148,422
9.50% 05/15/16 - 06/15/16 96,702 102,807
9.00% 07/15/16 1,994,463 2,105,395
9.50% 12/15/16 61,434 65,311
9.50% 06/15/17 - 12/15/17 1,122,224 1,193,792
8.50% 05/15/21 58,617 61,053
8.50% 10/15/22 7,368 7,674
8.50% 03/15/23 299,154 311,401
6.50% 05/15/23 - 12/15/23 3,973,921 3,833,563
6.50% 01/15/24 - 04/15/24 3,178,091 3,063,870
7.00% 08/15/25 - 10/15/25 10,250,102 10,083,537
7.00% 04/15/26 1,921,548 1,888,536
7.50% 05/15/27 105,845 106,176
7.50% 06/15/28 211,089 211,946(b)
7.50% 01/15/28 - 10/15/28 12,010,924 12,057,846
38,903,585
TOTAL AGENCY MORTGAGE BACKED
(COST $107,412,513) 105,108,784
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 5.1%
Federal National Mortgage Assoc.
6.00% 03/25/19 3,340,800 3,051,587
Federal National Mortgage Assoc. REMIC
3.50% 10/25/21 14,200,000 12,340,652
5.00% 01/25/23 627,254 621,565
12,962,217
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $15,265,852) 16,013,804
- -------------
See Notes to Schedules of Investments and Financial Statements.
65
<PAGE>
GE GOVERNMENT SECURITIES FUND SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
ASSET BACKED -- 3.2%
Ford Credit Auto Owner Trust
6.65% 10/15/03 $1,700,000 $ 1,671,304
Green Tree Financial Corp.
10.28% 12/01/30 4,000,000 3,716,240(d)
NYC Mortgage Loan Trust
6.75% 06/25/06 4,830,578 4,762,648(b)
TOTAL ASSET BACKED
(COST $10,384,647) 10,150,192
NON-AGENCY MORTGAGE BACKED SECURITIES -- 0.6%
Structured Asset Securities Corp.
5.939% 06/15/15
(COST $1,810,934) 1,810,934 1,809,802(b)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.7%
Norwest Asset Securities Corp.
7.25% 12/25/27 3,323,939 3,204,776
6.25% 12/25/28 2,382,307 1,981,055
TOTAL NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $5,458,733) 5,185,831
TOTAL INVESTMENTS IN SECURITIES
(COST $297,508,167) 292,849,867
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 7.7%
- --------------------------------------------------------------------------------
TIME DEPOSIT -- 7.7%
State Street Cayman Islands
5.375% 10/01/99
(COST $23,963,602) 23,963,602 23,963,602
OTHER ASSETS AND LIABILITIES,
NET (1.5)% (4,611,287)
-------------
NET ASSETS-- 100% $312,202,182
============
- -----------
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 -- 9/30/99
[LINE GRAPH OMITTED]
9/99 5.46%
8/99 5.59%
7/99 5.44%
6/99 5.39%
5/99 5.32%
4/99 5.03%
3/99 4.99%
2/99 5.15%
1/99 4.64%
12/98 4.6%
11/98 4.54%
10/98 4.22%
10/1/98 4.15%
HIGH 5.59%
LOW 4.15%
AVG. 4.96%
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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 191 120
Peer group
average annual
total return: 1.64% 5.74%
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 $10,000.00 $10,000.00 $10,000.00
9,942.80 9,692.40 9,949.00
9/94 10,052.77 9,799.56 10,049.39
10,359.10 10,098.28 10,382.28
9/95 10,831.26 10,558.48 10,871.71
11,102.52 10,822.98 11,181.07
9/96 11,370.47 11,084.22 11,488.39
11,667.42 11,373.69 11,781.51
9/97 12,117.11 11,812.06 12,279.88
12,455.99 12,142.41 12,665.17
9/98 13,009.00 12,681.07 13,253.24
13,162.85 12,831.37 13,438.07
9/99 13,336.61 13,000.76 13,677.51
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Short-Term Gov't 2.52% 5.82% 5.29%
GE Short-Term Gov't w/load (0.06)% 5.28% 4.81%
(maximum load-2.5%)
LB 1-3 Yr. 3.19% 6.36% 5.76%
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 $10,000.00 $10,000.00 $10,000.00
9,939.30 9,939.30 9,949.00
9/94 10,019.58 10,019.58 10,049.39
10,285.38 10,285.38 10,382.28
9/95 10,722.29 10,722.29 10,871.71
10,958.27 10,958.27 11,181.07
9/96 11,189.26 11,189.26 11,488.39
11,447.24 11,447.24 11,781.51
9/97 11,842.93 11,842.93 12,279.88
12,148.34 12,148.34 12,665.17
9/98 12,652.00 12,652.00 13,253.24
12,763.36 12,763.36 13,438.07
9/99 12,893.16 12,893.16 13,677.51
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Short-Term Gov't 1.91% 5.17% 4.66%
GE Short-Term Gov't w/load (1.01)% 5.17% 4.66%
maximum load 3.0% 0.0% 0.0%
LB 1-3 Yr. 3.19% 6.36% 5.76%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T LB 1-3 YR.
3/2/94 $10,000.00 $10,000.00
9,964.81 9,949.88
9/94 10,068.86 10,049.39
10,379.78 10,382.28
9/95 10,866.25 10,871.71
11,152.31 11,181.07
9/96 11,435.67 11,488.39
11,748.92 11,781.51
9/97 12,217.07 12,279.88
12,574.67 12,665.17
9/98 13,151.00 13,253.24
13,335.26 13,438.07
9/99 13,528.29 13,677.51
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Short-Term Gov't 2.87% 6.08% 5.56%
LB 1-3 Yr. 3.19% 6.36% 5.76%
67
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE SHORT-TERM GOVERNMENT FUND
[PIE CHART OMITTED]
U.S. TREASURIES 27.5%
MORTGAGE BACKED 26.4%
FEDERAL AGENCIES 20.8%
ASSET BACKED 11.7%
CORPORATE NOTES 6.9%
CASH & OTHER 6.7%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
BONDS AND NOTES -- 93.3%
- --------------------------------------------------------------------------------
U.S. TREASURIES -- 27.5% (H)
U.S. Treasury Notes
5.00% 02/28/01 $ 780,000 $ 773,908
4.875% 03/31/01 385,000 381,031
5.00% 04/30/01 181,000 179,331
5.25% 05/31/01 354,000 351,844
5.75% 06/30/01 950,000 951,340
5.50% 07/31/01 1,720,000 1,715,700
6.625% 03/31/02 1,599,000 1,632,483
5.875% 09/30/02 1,050,000 1,053,769
5.75% 11/30/02 365,000 364,770
TOTAL U.S. TREASURIES
(COST $7,480,623) 7,404,176
FEDERAL AGENCIES -- 20.8%
Federal Home Loan Bank
5.625% 03/19/01 910,000 905,732
5.875% 08/15/01 1,865,000 1,857,708
5.25% 04/25/02 1,360,000 1,331,943
4,095,383
Federal National Mortgage Assoc.
5.38% 01/16/01 675,000 669,202
5.625% 03/15/01 853,000 849,264
1,518,466
TOTAL FEDERAL AGENCIES
(COST $5,670,821) 5,613,849
AGENCY MORTGAGE BACKED -- 23.5%
Federal Home Loan Mortgage Corp.
5.929% 07/01/99 212,881 211,351
5.00% 02/15/01 3,500,000 3,458,420
8.00% 08/01/03 106,559 108,480
6.00% 12/01/08 38,840 38,136(h)
3,816,387
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc.
6.59% 03/25/02 $319,803 $ 319,603
6.55% 09/17/04 67,735 67,820
5.32% 11/17/06 44,821 44,947(d)
9.00% 08/01/10 168,083 177,537
9.00% 03/01/11 726,233 758,006
1,367,913
Federal National Mortgage Assoc. REMIC
6.17% 05/25/14 156,304 153,446
Government National Mortgage Assoc.
9.00% 08/15/09 - 12/15/09 446,651 469,461
9.50% 12/15/09 479,292 514,639
984,100
TOTAL AGENCY MORTGAGE BACKED
(COST $6,379,199) 6,321,846
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.4%
Federal Home Loan Mortgage Corp.
6.25% 09/15/18 100,254 100,253
Federal Home Loan
Mortgage Corp. REMIC
30.01% 09/15/05 82 547(d,g)
29.11% 07/15/06 172 2,229(d,g)
2,776
Federal National
Mortgage Assoc. REMIC
6.97% 11/25/06 4,057 4,004(d,f)
7.00% 06/18/20 10,460 10,441(b)
14,445
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $118,294) 117,474
ASSET BACKED -- 11.7%
American Express Master Trust
5.375% 07/15/01 142,000 141,245
AT&T Universal Card Master Trust
5.95% 10/17/02 260,000 260,242
California Infrastructure
6.16% 06/25/03 266,000 265,668
Capital Asset Research Funding L.P.
6.40% 12/15/04 40,299 40,387
Carco Auto Loan Master Trust
5.65% 03/15/03 266,000 264,545
Chemical Master Credit Card Trust I
5.55% 09/15/03 350,000 347,700
Cit RV Trust
5.78% 07/15/08 260,000 256,547
Citibank Credit Card Master Trust I
5.85% 04/10/03 50,000 49,766
Discover Card Master Trust I
5.80% 09/16/03 200,000 199,374
5.75% 10/16/03 311,000 308,568
5.30% 08/15/04 311,000 302,885
5.90% 10/15/04 266,000 262,218
Green Tree Financial Corp.
6.90% 04/15/18 136,320 136,447
Lehman FHA Title I Loan Trust
7.30% 05/25/17 26,175 26,290
Premier Auto Trust
5.77% 01/06/02 250,000 249,375
6.27% 04/08/03 23,000 22,978
- -----------
See Notes to Schedules of Investments and Financial Statements.
68
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 $29,538 $ 29,260
TOTAL ASSET BACKED
(COST $3,197,938) 3,163,495
CORPORATE NOTES -- 6.9%
Bank One Corp.
6.40% 08/01/02 100,000 99,366
Carnival Corp.
5.65% 10/15/00 125,000 124,002
Conseco Inc.
6.40% 06/15/01 40,000 39,217
Federated Department Stores Inc.
6.125% 09/01/01 120,000 118,796
Fleet Credit Card LLC
6.45% 10/30/00 250,000 250,140
Ford Motor Credit Co.
5.65% 10/15/01 202,633 201,999
Kroger Co.
6.34% 06/01/01 100,000 99,408(b)
LG&E Capital Corp.
5.75% 11/01/01 50,000 49,304(b)
MCI Worldcom Inc.
6.125% 08/15/01 50,000 49,716
Merrill Lynch & Co.
5.71% 01/15/02 125,000 122,979
Monsanto Co.
5.375% 12/01/01 250,000 243,786(b)
Republic of Columbia
8.75% 10/06/99 50,000 50,000
Tyco International Ltd.
6.50% 11/01/01 275,000 273,647
U.S. West Capital Funding Inc.
6.875% 08/15/01 50,000 49,932(b)
USA Waste Services Inc.
6.125% 07/15/01 100,000 96,682(d)
TOTAL CORPORATE NOTES
(COST $1,890,164) 1,868,974
NON-AGENCY MORTGAGE BACKED SECURITIES -- 2.2%
Asset Securitization Corp.
6.50% 02/14/41 388,931 385,528
DLJ Mortgage Acceptance Corp.
5.595% 02/08/00 52,748 52,715(b)
GS Mortgage Securities Corp.
6.94% 07/13/30 137,033 137,932
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $583,892) 576,175
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.3%
BlackRock Capital Finance
7.05% 12/25/08
(COST $ 74,951) 74,892 73,979(b)
TOTAL INVESTMENTS IN SECURITIES
(COST $25,395,882) 25,139,968
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.0%
- --------------------------------------------------------------------------------
TIME DEPOSIT -- 9.0%
State Street Cayman Islands
5.375% 10/01/99
(COST $2,431,369) $2,431,369 $2,431,369
OTHER ASSETS AND LIABILITIES,
NET (2.3)% (614,253)
------------
NET ASSETS-- 100% $26,957,084
============
- -------------
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 $34 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 CHAIRPERSON 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 PEERS PERFORM FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. For the one-year period ended September 30, 1999, the Lehman Brothers
10-Year Municipal Index returned a negative 0.46%. Our Lipper peer group of
310 Intermediate Municipal Debt funds posted an average return of negative
0.94% for the same period. To see how your class of shares in the GE
Tax-Exempt Fund compared to its benchmark, please refer to the following
page.
Q. WHY DID THE FUND UNDER- PERFORM ITS BENCHMARK?
A. During the period, we initially extended the fund's average maturity and
duration, anticipating in the third quarter of 1998, that interest rates
would decline as the economy slowed. In fact, economic activity remained
surprisingly robust, leading the Federal Reserve to raise the rate for
Federal Funds. Municipal interest rates rose sharply, which hurt our
performance relative to the benchmark. In second quarter of 1999, we
reduced the fund's average maturity and duration in the expectation that
interest rates would rise further, as economic growth remained brisk. As
interest rates rose further, the fund was rewarded for its more defensive
posture. 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. In the fall of 1998, we anticipated that the deterioration in foreign
economies would lower U.S. growth prospects by reducing exports; keep
inflation in check by reducing import prices; and that interest rates were
likely to decline. To lock in the prevailing level of interest rates and to
benefit from their expected decline, we extended the duration of the fund
from 6.8 years to 7.3 years. Subsequently, in June, 1999, we anticipated
that surprisingly strong U.S. economic growth would increase inflationary
pressures and lead to higher interest rates. To protect against the price
erosion of higher interest rates, we reduced the duration of the fund back
to 6.7 years. We managed our sales transactions so as to avoid or minimize
any net capital gains tax liability.
Q. WHICH SECTORS HAVE YOU LIKED?
A. We prefer issues in the intermediate and longer intermediate maturity range
(7 to 18 year), which we believe best balances opportunity and risk. These
maturities lock in the higher tax-free yields of the upward sloping
municipal yield curve, and will benefit the fund with capital appreciation
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 the highest credit quality and are immune to any
changes in the issuer's economy or repayment ability. We seek to avoid
using securities that do not pass our credit screens, that are subject to
alternative minimum tax, or that are derivative securities.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED IT GOING
FORWARD?
A. Going forward, we expect the U.S. economy's historically incompatible mix
of strong growth and low inflation to keep upward pressure on interest
rates. Accordingly, the fund is positioned with neutral duration and
above-average income so as to benefit from these developments.
[PHOTO OF BARBARA A. BRINKLEY OMITTED]
70
<PAGE>
GE TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings** Net Assets
- --------------------------------------------------------------------------------
Aaa 77.9%
Aa 15.0%
A 0.1%
Baa 1.3%
NR/Other 5.7%
- --------------------------------------------------------------------------------
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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 310 208
Peer group
average annual
total return: (0.94)% 5.24%
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 LB GO MUNI BOND LBMI
9/8/93 $10,000.00 $10,000.00 $10,000.00 $10,000.00
9,724.93 9,311.62 9,710.26 9,725.44
9/94 9,883.82 9,463.75 9,917.70 9,937.39
10,427.05 9,983.90 10,446.56 10,456.70
9/95 10,813.77 10,354.18 11,087.72 11,110.74
11,110.74 10,638.54 11,372.75 11,383.93
9/96 11,508.82 11,019.69 11,626.07 11,648.17
11,833.68 11,330.75 11,966.21 11,976.14
9/97 12,403.79 11,876.63 12,753.05 12,754.89
12,705.81 12,165.81 13,221.72 13,219.66
9/98 13,185.00 12,626.00 13,903.97 13,879.03
13,271.20 12,707.64 14,062.38 14,048.47
9/99 12,942.30 12,392.71 13,827.48 13,815.28
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Tax-Exempt (1.84)% 5.54% 4.35%
GE Tax-Exempt w/load (6.05)% 4.62% 3.60%
(maximum load-4.25%)
LBMI (0.46)% 6.81% 5.45%
LB GO Muni Bond (0.55)% 6.87% 5.47%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LB GO MUNI BOND LBMI
9/8/93 $10,000.00 $10,000.00 $10,000.00 $10,000.00
9,682.67 9,682.67 9,710.26 9,725.44
9/94 9,826.66 9,826.66 9,917.70 9,937.39
10,366.28 10,366.28 10,446.56 10,456.70
9/95 10,759.89 10,759.89 11,087.72 11,110.74
11,045.21 11,045.21 11,372.75 11,383.93
9/96 11,450.52 11,450.52 11,626.07 11,648.17
11,763.04 11,763.04 11,966.21 11,976.14
9/97 12,305.35 12,305.35 12,753.05 12,754.89
12,573.35 12,573.35 13,221.72 13,219.66
9/98 13,000.00 13,000.00 13,903.97 13,879.03
13,052.01 13,052.01 14,062.38 14,048.47
9/99 12,695.20 12,695.20 13,827.48 13,815.28
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Tax-Exempt (2.34)% 5.26% 4.01%
GE Tax-Exempt w/load (5.17)% 5.26% 4.01%
maximum load 3.0% 0.0% 0.0%
LBMI (0.46)% 6.81% 5.45%
LB GO Muni Bond (0.55)% 6.87% 5.47%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT LB GO MUNI BOND LBMI
9/26/97 $10,000.00 $10,000.00 $10,000.00
12/97 10,175.00 10,254.73 10,258.81
3/98 10,291.00 10,367.49 10,364.39
6/98 10,441.00 10,528.43 10,521.39
9/98 10,744.00 10,902.46 10,881.35
12/98 10,783.15 10,974.55 10,952.20
3/99 10,838.44 11,026.67 11,014.18
6/99 10,604.48 10,768.28 10,762.63
9/99 10,596.54 10,842.48 10,831.36
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
GE Tax-Exempt (1.37)% 2.92%
LBMI (0.46)% 4.07%
LB GO Muni Bond (0.55)% 4.13%
71
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE TAX-EXEMPT FUND
[PIE GRAPH OMITTED]
UTILITIES 23.0%
WATER & SEWER 15.2%
HOUSING 10.6%
TRANSPORTATION 9.7%
EDUCATION 9.7%
SALES TAX 9.5%
HOSPITAL 9.5%
GENERAL OBLIGATIONS 5.6%
RESERVES/OTHER 2.7%
CASH 2.3%
LEASE 2.2%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 97.6%
- --------------------------------------------------------------------------------
ARKANSAS -- 3.8%
Arkansas Housing Development
Agency Rev. - Housing
8.375% 07/01/10 $400,000 $ 475,508(i)
5.793% 07/01/11 315,000 399,877(i)
Pulaski County Arkansas
Hospital Rev. - Health
9.25% 03/01/10 195,000 238,198(i)
1,113,583
CALIFORNIA -- 4.8%
Sacramento California Utility
Rev. - Electric Utility
9.00% 04/01/13 840,000 1,081,307(i)
San Diego California
Hospital Rev. - Health
8.875% 02/01/11 290,000 352,608(i)
1,433,915
COLORADO -- 2.3%
Colorado Springs Colorado
Utility Rev. - Electric Utility
8.50% 11/15/11 100,000 123,901(i)
Denver Colorado City & County,
Housing Finance Authority -
Housing
7.00% 08/01/10 510,000 566,365(i)
690,266
[ICON OMITTED] CONNECTICUT -- 6.0%
Connecticut State Health &
Educational Fac. Auth.
Rev. - Health
5.50% 07/01/12 500,000 507,410(k)
7.00% 07/01/12 765,000 850,596(i)
Connecticut State Housing Finance
Auth. Rev. - Housing
6.05% 05/15/14 410,000 417,983
1,775,989
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
FLORIDA -- 3.4%
Dade County Florida Special
Obligation - Special Tax
8.625% 12/01/07 $385,000 $ 465,584(i,k)
Florida State Broward County G.O.
10.00% 07/01/14 235,000 334,664
Gainesville Florida Utilities
Systems Rev. - Electric Utility
8.125% 10/01/14 175,000 204,101(i)
1,004,349
GEORGIA -- 3.2%
Clarke County Georgia Hospital
Auth. Rev. - Health
9.875% 01/01/06 80,000 97,722(i,k)
Columbus Georgia Medical
Center Hospital Auth. Rev. -
Health
7.75% 07/01/10 305,000 354,682(i)
Metropolitan Rapid Transportation
Auth. - Transportation
7.00% 07/01/11 415,000 479,715(i)
932,119
IDAHO -- 2.9%
Idaho Falls Idaho Electric Rev. -
Electric Utility
10.375% 04/01/13 640,000 860,038
ILLINOIS -- 0.1%
Chicago Illinois Motor Fuel
Tax Rev. - Sales Tax
6.50% 01/01/01 20,000 20,580(j,k)
Chicago Illinois Wastewater
Treatment Rev. - Water & Sewer
6.30% 01/01/03 20,000 21,501(j,k)
42,081
INDIANA -- 3.2%
Indiana State Toll Road
Commission Rev. - Transportation
9.00% 01/01/15 335,000 453,302
Indiana University Rev. - Education
6.00% 11/15/14 290,000 301,278
Purdue University Rev. - Education
5.25% 07/01/11 200,000 200,418
954,998
IOWA -- 3.9%
Muscatine Iowa Electric Rev. -
Electric Utility
9.70% 01/01/13 865,000 1,144,568(i)
LOUISIANA -- 3.8%
Jefferson Parish Louisiana
Hospital Rev. - Health
7.25% 01/01/09 590,000 654,511(i)
- -------------
See Notes to Schedules of Investments and Financial Statements.
72
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Louisiana Stadium & Expo District
Hotel Occupancy Tax Rev.
(Series B) - Special Tax
5.25% 07/01/17 $500,000 $ 472,105
1,126,616
MAINE -- 0.0%
Maine Municipal Bond Bank G.O.
7.10% 11/01/99 10,000 10,228(j)
[ICON OMITTED] MASSACHUSETTS -- 10.8%
Massachusetts State G.O.
6.75% 08/01/09 90,000 95,557(k)
5.25% 08/01/15 750,000 725,287
Massachusetts State Port
Auth. Rev. - Trans.
13.00% 07/01/13 1,035,000 1,634,110(i)
5.50% 07/01/17 750,000 732,090
3,187,044
[ICON OMITTED] MICHIGAN -- 5.8%
Michigan Municipal Bond Auth.
Rev. Drinking Water Revolving
Fund - Water & Sewer
5.25% 12/01/11 500,000 501,850
5.25% 10/01/14 500,000 488,590
Michigan State Hospital Finance
Auth. Rev. - Health
9.00% 05/01/08 595,000 731,648(i)
1,722,088
MISSISSIPPI -- 2.1%
Mississippi State G.O.
6.20% 02/01/08 580,000 629,190(i)
MISSOURI -- 0.1%
Lees Summit Missouri Water &
Sewer Rev. - Water & Sewer
10.00% 07/01/00 20,000 20,922(j,k)
NEW JERSEY -- 4.1%
Atlantic City New Jersey
Improvement Auth. Rev. - Lease Rev.
7.40% 03/01/12 325,000 380,692(k)
Atlantic County New Jersey
Improvement Auth. - Lease Rev.
7.40% 07/01/16 175,000 208,591(i,k)
Delaware River Port Authority
6.50% 01/15/11 315,000 340,294(i)
New Jersey State Tpke. Auth.
Rev. - Trans.
6.50% 01/01/16 250,000 278,383(k)
1,207,960
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] NEW YORK -- 8.3%
Erie County New York Water Auth.
Rev. - Water & Sewer
6.00% 12/01/08 $400,000 $ 425,416(i,k)
Long Island Power Authority New
York Electric System -
Electric Utility
5.75% 12/01/24 200,000 195,432
New York New York G.O.
3.95% 08/15/20 500,000 500,000(m)
3.95% 08/15/19 200,000 200,000(m)
New York State Dormitory
Auth. Rev. - Education
7.50% 05/15/11 165,000 190,818
5.20% 02/15/16 200,000 184,802
7.375% 07/01/16 640,000 763,136(i)
2,459,604
NORTH CAROLINA -- 5.2%
North Carolina Municipal Power
Rev. - Electric Utility
10.50% 01/01/10 1,175,000 1,534,374(i)
OHIO -- 3.6%
Columbus Ohio G.O.
6.00% 07/01/08 50,000 53,131
Ohio State Higher Educational
Rev. - Education
6.00% 05/15/09 550,000 582,950(k)
Ohio State Water Development
Auth. Rev. - Water & Sewer
7.00% 12/01/09 385,000 432,455(i,k)
1,068,536
[ICON OMITTED] PENNSYLVANIA -- 12.4%
Allegheny County Pennsylvania
Hospital Development
Rev. - Health
7.375% 07/01/12 365,000 422,301(i)
Pennsylvania Intergovernmental
Co-op. - Special Tax
5.60% 06/15/15 500,000 520,375(k)
Philadelphia Pennsylvania School
District (Series A) - Education
5.25% 04/01/16 250,000 238,713(k)
Pittsburgh Pennsylvania Water &
Sewer Rev. - Water & Sewer
7.25% 09/01/14 1,055,000 1,223,578(i)
Pittsburgh Pennsylvania Water &
Sewer Systems Rev. - Water & Sewer
6.00% 09/01/16 290,000 304,674(i,k)
Southeastern Pennsylvania
Transportation Authority
Pennsylvania (Series A) - Trans.
5.25% 03/01/17 1,000,000 949,070(k)
3,658,711
- ------------
See Notes to Schedules of Investments and Financial Statements.
73
<PAGE>
GE TAX-EXEMPT FUND SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TEXAS -- 4.8%
Houston Texas Sewer Systems Rev. -
Water & Sewer
9.375% 10/01/13 $1,065,000 $1,432,106(i,k)
WASHINGTON -- 0.1%
Snohomish County Washington
Public Utility Rev. - Electric Utility
6.375% 01/01/05 20,000 21,546(i)
PUERTO RICO -- 2.9%
Puerto Rico Commonwealth
Aquaduct & Sewer Rev. -
Water & Sewer
10.25% 07/01/09 660,000 851,756(i)
TOTAL INVESTMENTS IN SECURITIES
(COST $29,337,110) 28,882,587
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.3%
- --------------------------------------------------------------------------------
GEI Short Term Investment Fund
(COST $97,256) 97,256 97,256
OTHER ASSETS AND LIABILITIES,
NET 2.1% 611,122
-----------
NET ASSETS-- 100% $29,590,965
===========
- ------------
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 SEPTEMBER 30, 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 $21.2 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 FOR THE PERIOD FROM THE
FUND'S INCEPTION (DECEMBER 31, 1998) THROUGH SEPTEMBER 30, 1999?
A. During the period from inception of the fund (December 31, 1998) through
September 30, 1999, the Salomon High Yield Index posted a return of negative
0.71%. To see how your class of shares in the GE High Yield Fund performed
compared to its benchmark, please refer to page 76.
Q. WHAT CONTRIBUTED TO THE PERFORMANCE OF THE FUND?
A. Adjusting for expenses, the fund exceeded the market benchmark primarily due
to an overweight position in the telecommunications sector and exposure to
emerging market securities, which were both strong performers over the past
year. The fund benefited from merger and investment activity in the
telecommunications and cable sectors that have been very favorable for
credit quality. The emerging market sector has rebounded after the Russia
crisis last year. The fund also did a much better job in avoiding problem
credits than the market averages. The major negative contributor to the
performance was the bond market rally at the time the fund began operations.
The fund commenced its public offering in late January and was not able to
take advantage of the high yield market rally occuring early in the year.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. The high-yield investment team utilizes a disciplined, total return-oriented
process to actively manage a diversified high-yield portfolio. To identify
the most efficient portfolio, the team engages in fundamental analysis and
valuation of high-yield securities. Individual securities are compared on
the basis of option and credit-risk-adjusted expected return. Several
high-yield investment beliefs guide our process. We believe that the keys to
successful high-yield management are: superior, forward-looking credit
analysis; a consistent, disciplined investment process; a value focus; and
careful control of overall interest-rate risk and economic sensitivity, as
well as the integration of investment themes drawn from the firm's
financial-market research.
Q. WHICH SECTORS DO YOU LIKE?
A. The two sectors where we found the most value and have our highest
allocations to are telecommunications and emerging markets. The
telecommunications sector has been performing well due to good fundamentals,
along with a high level of merger and investment activity which has boosted
credit quality. Emerging markets debt has had good performance this year as
it has rebounded nicely from the Russia crisis last year. We continue to
feel that these sectors represent good value and will continue to overweight
them versus the benchmark.
Q. WHAT IS THE OUTLOOK FOR THE HIGH YIELD BOND MARKET?
A. We have a very positive outlook for the high-yield market for the coming
year. Several technical factors contributed to the lackluster performance of
high-yield bonds this year including: a high level of new issues in the
market, negative net cash flows into high-yield mutual funds, and dealers
were under pressure to keep inventories down. We feel these factors have
created a good buying opportunity and prices should improve over the next
year.
[PHOTO OF ROBERT E. ANGEVINE AND STEPHEN F. ESSER OMITTED]
75
<PAGE>
GE HIGH YIELD FUND
- --------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
Moody's/ Percent of
S&P Ratings** Net Assets
- --------------------------------------------------------------------------------
BBB 2.8%
BB 32.7%
B 49.1%
CCC 5.1%
NR 2.6%
Other 7.7%
- --------------------------------------------------------------------------------
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).
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 $10,000.00 $10,000.00 $10,000.00
1/99 10,058.16 9,630.69 10,149.80
2/99 10,012.08 9,586.57 10,064.54
3/99 10,188.53 9,755.52 10,149.59
4/99 10,371.84 9,931.04 10,362.12
5/99 10,087.45 9,658.74 10,199.43
6/99 10,100.18 9,670.93 10,177.00
7/99 10,097.44 9,668.30 10,199.38
8/99 10,039.37 9,612.70 10,078.01
9/99 10,053.27 9,629.57 9,928.86
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund 0.53%
GE High Yield Fund
w/load (3.70)%
(maximum load-4.25%)
Salomon High Yield (0.71)%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD GE HIGH YIELD W/LOAD SALOMON HIGH YIELD MARKET
12/31/98 $10,000.00 $10,000.00 $10,000.00
1/99 10,052.40 10,052.40 10,149.80
2/99 10,000.51 10,000.51 10,064.54
3/99 10,170.37 10,170.37 10,149.59
4/99 10,357.18 10,357.18 10,362.12
5/99 10,066.96 10,066.96 10,199.43
6/99 10,073.53 10,073.53 10,177.00
7/99 10,064.55 10,064.55 10,199.38
8/99 9,989.60 9,989.60 10,078.01
9/99 9,997.31 9,711.41 9,928.86
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
GE High Yield Fund (0.03)%
GE High Yield Fund
w/load (2.89)%
maximum load 3.0%
Salomon High Yield (0.71)%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD FUND SALOMON HIGH YIELD
12/31/98 $10,000.00 $10,000.00
1/99 10,060.13 10,149.80
2/99 10,015.94 10,064.54
3/99 10,194.62 10,149.59
4/99 10,390.34 10,362.12
5/99 10,107.88 10,199.43
6/99 10,122.75 10,177.00
7/99 10,122.31 10,199.38
8/99 10,055.40 10,078.01
9/99 10,071.41 9,928.86
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
76
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE HIGH YIELD FUND
[PIE GRAPH OMITTED]
COMMUNICATIONS 23.6%
SOVEREIGN AND EMERGING MARKETS 14.2%
CONSUMER 14.1%
INDUSTRIAL 11.2%
CASH & OTHER 10.7%
HEALTHCARE 6.7%
RETAIL 6.0%
CABLE 4.9%
ENERGY 3.0%
BASIC MATERIALS 2.7%
REAL ESTATE 1.6%
UTILITIES 1.3%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 89.7%
- --------------------------------------------------------------------------------
CABLE -- 4.9%
CSC Holdings Inc.
7.25% 07/15/08 $260,000 $ 249,400
Lenfest Communications Inc.
8.38% 11/01/05 200,000 207,610
NTL Inc. (Series B)
10.75% 04/01/08 275,000 296,539(d)
Rogers Cablesystems Ltd.
10.13% 09/01/12 320,000 345,600
TOTAL CABLE
(COST $1,145,705) 1,099,149
CHEMICALS -- 1.0%
ISP Holdings Inc. (Series B)
9.00% 10/15/03
(COST $242,342) 235,000 229,712
[ICON OMITTED] COMMUNICATIONS -- 23.6%
Adelphia Communications Corp.
7.50% 01/15/04 195,000 182,812
8.375% 02/01/08 125,000 116,875
7.75% 01/15/09 150,000 135,188
American Celluar Corp.
10.50% 05/15/08 160,000 164,800
AMSC Acquisition Co. Inc.
12.25% 04/01/08 75,000 53,250
Centennial Cellular Corp.
10.75% 12/15/08 150,000 156,563
Dobson Communications Corp.
11.75% 04/15/07 165,000 174,075
Dolphin Telecom PLC
14.00% 05/15/09 425,000 170,000(b,d)
EchoStar DBS Corp.
9.38% 02/01/09 215,000 211,506
Esprit Telecom Group PLC
11.00% 06/15/08 290,000 161,716
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Global Crossings Holdings Ltd.
9.625% 05/15/08 $160,000 $ 164,400
Globalstar LP/Capital
11.38% 02/15/04 175,000 113,750
Hermes Europe Railtel BV
11.50% 08/15/07 195,000 196,950
Hyperion Telecommunications
Inc. (Series B)
13.00% 04/15/03 190,000 159,600(d)
Intermedia Communications Inc.
8.60% 06/01/08 405,000 351,337
Iridium LLC/Capital Corp.
(Series A)
13.00% 07/15/05 225,000 23,625(n)
Metromedia Fiber Network Inc.
10.00% 11/15/08 150,000 145,500
Nextel Communications Inc.
9.95% 02/15/08 1,000,000 695,000(d)
Nextlink Communications Inc.
10.75% 11/15/08 200,000 201,250
Primus Telecommunications Group
11.25% 01/15/09 220,000 209,000
PSINet Inc. (Series B)
10.00% 02/15/05 150,000 144,000
11.00% 08/01/09 65,000 64,025(b)
RCN Corp. (Series B)
11.125% 10/15/07 325,000 211,250(d)
Rhythms Netconnections
13.50% 05/15/08 230,000 114,425(d)
RSL Communications PLC
10.125% 03/01/08 500,000 281,250(d)
12.00% 11/01/08 275,000 272,250
Tele1 Europe BV
13.00% 05/15/09 155,000 161,629
Viatel Inc.
12.50% 04/15/08 200,000 114,000(d)
Wam Net Inc. (Series A)
13.25% 03/01/05 175,000 104,344(d)
TOTAL COMMUNICATIONS
(COST $5,574,485) 5,254,370
ENERGY -- 3.0%
CMS Energy Corp.
7.50% 01/15/09 250,000 230,662(h)
Husky Oil Ltd.
8.90% 08/15/28 115,000 110,105
Synder Oil Corp.
8.75% 06/15/07 225,000 222,469
Vintage Petroleum Inc.
8.63% 02/01/09 35,000 33,687
9.75% 06/30/09 70,000 71,575
TOTAL ENERGY
(COST $682,623) 668,498
FOOD AND BEVERAGES -- 1.0%
Smithfield Foods Inc.
7.63% 02/15/08
(COST $240,884) 250,000 225,000
- -----------
See Notes to Schedules of Investments and Financial Statements.
77
<PAGE>
GE HIGH YIELD FUND
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] GAMING -- 7.6%
Harrahs Operating Co. Inc.
7.88% 12/15/05 $650,000 $ 622,375(h)
Horseshoe Gaming Holding
8.63% 05/15/09 220,000 209,550(b)
International Game Technology
8.38% 05/15/09 220,000 210,560
Park Place Entertainment Corp.
7.88% 12/15/05 250,000 235,937
Station Casinos Inc.
10.13% 03/15/06 400,000 411,000
TOTAL GAMING
(COST $1,764,018) 1,689,422
[ICON OMITTED] GENERAL INDUSTRIAL -- 10.2%
Applied Power Inc.
8.75% 04/01/09 100,000 93,500
Axia Inc.
10.75% 07/15/08 85,000 78,625(h)
Hayes Lemmerz International Inc.
8.25% 12/15/08 225,000 198,000
Huntsman ICI Chemicals LLC
10.125% 07/01/09 125,000 130,346
10.125% 07/01/09 100,000 97,500(b)
Lyondell Chemical Co. (Series A)
9.63% 05/01/07 190,000 189,288
National Steel Corp. (Series A)
9.88% 03/01/09 210,000 207,900
Norcal Waste Systems Inc.
13.50% 11/15/05 195,000 208,650
Nortek Inc. (Series B)
8.88% 08/01/08 490,000 463,050
Sequa Corp.
9.00% 08/01/09 110,000 108,075
Stater Brothers Holdings Inc.
10.75% 08/15/06 170,000 173,400(b)
Tembec Industries Inc.
8.63% 06/30/09 100,000 98,000
USA Waste Services Inc.
7.13% 10/01/07 30,000 26,833
7.13% 12/15/17 50,000 41,211
Waste Management Inc.
7.00% 10/15/06 45,000 40,642
7.65% 03/15/11 120,000 109,516
TOTAL GENERAL INDUSTRIAL
(COST $2,355,115) 2,264,536
[ICON OMITTED] HEALTHCARE -- 6.7%
Columbia/HCA Healthcare
6.91% 06/15/05 875,000 788,189(h)
7.58% 09/15/25 100,000 79,851
Fresenius Medical Capital Trust II
7.88% 02/01/08 165,000 151,800
Tenet Healthcare Corp.
8.63% 01/15/07 500,000 476,250
TOTAL HEALTHCARE
(COST $1,622,342) 1,496,090
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
HOTELS/LODGING/RESTAURANTS -- 2.9%
Hilton Hotels Corp.
7.95% 04/15/07 $200,000 $ 190,979
HMH Properties (Series A)
7.88% 08/01/05 300,000 276,000
Host Marriott Travel
Plazas Inc. (Series B)
9.50% 05/15/05 175,000 182,000
TOTAL HOTELS/LODGING/RESTAURANTS
(COST $685,327) 648,979
MEDIA AND ENTERTAINMENT -- 2.6%
Chancellor Media Corp.
9.00% 10/01/08
(COST $611,848) 575,000 583,625(h)
METALS -- 1.7%
Impress Metal
Packaging Holdings
9.88% 05/29/07 265,000 152,821
Murrin Murrin Holdings Ltd.
9.38% 08/31/07 255,000 225,675
TOTAL METALS
(COST $394,016) 378,496
PACKAGING -- 1.0%
Norampac Inc.
9.50% 02/01/08
(COST $217,178) 210,000 213,150
REAL ESTATE / BUILDING -- 1.6%
American Standard Inc.
7.125% 06/01/06 155,000 159,361
D.R. Horton Inc.
8.00% 02/01/09 220,000 195,800
TOTAL REAL ESTATE / BUILDING
(COST $382,647) 355,161
RETAIL -- 6.0%
Dillon Read Structured
Finance (Class A)
6.66% 08/15/10 252,239 230,455
DR Structured Finance Corp.
8.38% 08/15/15 435,000 415,389
HMV Media Group PLC
10.25% 05/15/08 400,000 392,000
Musicland Group Inc.
9.00% 06/15/03 300,000 291,000
TOTAL RETAIL
(COST $1,374,910) 1,328,844
- ----------
See Notes to Schedules of Investments and Financial Statements.
78
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
[ICON OMITTED] SOVEREIGN AND EMERGING MARKETS -- 14.2%
AST Research Inc.
7.45% 10/01/02 $300,000 $ 288,402(b)
Bayan Telecommunications
13.50% 07/15/06 250,000 236,250(b)
CTI Holdings S.A.
11.50% 04/15/08 250,000 123,750(d)
Glencore Nickel Property Ltd.
9.00% 12/01/14 60,000 51,150
Indah Kiat Finance Mauritius
10.00% 07/01/07 575,000 313,375
Multicanal S.A. (Series E)
13.125% 04/15/09 220,000 206,952(b)
Netia Holdings II BV
13.50% 06/15/09 175,000 185,743
Occidente Y Caribe Celular
S.A. (Series B)
14.00% 03/15/04 275,000 149,875(d)
Pacifica Papers Inc.
10.00% 03/15/09 220,000 222,475
Philippine Long Distance
Telephone Co.
7.85% 03/06/07 55,000 46,888
PTC International Finance BV
10.75% 07/01/07 235,000 164,500(d)
Republic of Columbia
9.75% 04/23/09 135,000 116,410
Satelites Mexicanos S.A. de CV
10.125% 11/01/04 150,000 117,000
Telewest Communications PLC
9.875% 04/15/09 210,000 205,705(d)
TV Azteca S.A. (Series B)
10.50% 02/15/07 425,000 327,250
United Mexican States
6.25% 12/31/19 250,000 184,375
United Pan-Europe
Communications NV
10.875% 08/01/09 215,000 217,150(b)
TOTAL SOVEREIGN AND EMERGING MARKETS
(COST $3,229,564) 3,157,250
TECHNOLOGY -- 0.4%
Republic Technologies International
13.75% 7/15/09
(COST $98,718) 100,000 95,000(b)
UTILITIES -- 1.3% AES Corp.
8.50% 11/1/07 210,000 191,625
Ras Laffan Liquefied Natural Gas
8.294% 3/15/14 115,000 105,234(b)
TOTAL UTILITIES
(COST $322,548) 296,859
TOTAL CORPORATE BONDS AND NOTES
(COST $20,944,270) 19,984,141
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 2.4%
- --------------------------------------------------------------------------------
Concentric Network Corp.,
13.50% 110 100,812(a)
NUMBER
OF SHARES VALUE
- --------------------------------------------------------------------------------
Dobson Communications Corp.,
13.00% 50 $ 48,250
IXC Communications Inc.
(Series B), 12.50% 257 274,756(a)
Paxson Communications Corp.,
13.25% 11 115,160(a)
TOTAL PREFERRED STOCK
(COST $465,172) 538,978
- --------------------------------------------------------------------------------
WARRANTS -- 0.2%
- --------------------------------------------------------------------------------
Occidente Y Caribe Celular
S.A., 03/15/04 11,000 16,500(a,b)
Tele1 Europe BV , 5/15/09 155 11,545(a)
Wam Net Inc. , 3/01/05 3,000 6,825(a,b)
TOTAL WARRANTS
(COST $13,000) 34,870
TOTAL INVESTMENTS IN SECURITIES
(COST $21,422,442) 20,557,989
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.8%
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.8%
State Street Bank and Trust Co.
5.12% 10/01/99
(COST $1,511,797) $1,511,797 1,511,797
OTHER ASSETS AND LIABILITIES,
NET 0.9% 211,382
-------------
NET ASSETS-- 100% $22,281,168
=============
FORWARD FOREIGN CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
At September 30, 1999, the outstanding 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 165,000 USD $177,912 10/27/99 $ 175,938 $ (1,974)
----------- ----------
$ 175,938 $ (1,974)
SALES
EUR 175,000 USD $185,234 10/26/99 $ 186,586 $ (1,352)
EUR 255,000 USD $269,782 10/27/99 $ 271,903 $ (2,121)
EUR 280,000 USD $301,560 10/27/99 $ 298,561 $ 2,999
EUR 155,000 USD $166,241 10/29/99 $ 165,300 $ 941
EUR 190,000 USD $201,193 11/19/99 $ 202,972 $ (1,779)
GBP 35,000 USD $ 56,616 11/10/99 $ 57,624 $ (1,008)
GBP 310,000 USD $497,860 12/03/99 $ 510,420 $ (12,560)
----------- ----------
$ 1,693,366 $ (14,880)
----------- ----------
NET UNREALIZED APPRECIATION (DEPRECIATION) $ (16,854)
----------
----------
- -------------
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 SEPTEMBER 30, 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 9/30/99
One Year Five Year
-------- --------
Number of
Funds in
peer group: 327 217
Peer group
average annual
total return: 4.40% 4.94%
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.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[LINE GRAPH OMITTED]
GE MONEY MARKET FUND 90 DAY T-BILL
2/22/93 $10,000.00 $10,000.00
10,000.00 10,000.00
10,028.72 10,024.74
10,094.88 10,099.91
9/93 10,164.21 10,176.55
10,236.25 10,255.35
10,307.06 10,339.42
10,392.39 10,443.81
9/94 10,500.20 10,562.06
10,627.61 10,702.77
10,778.38 10,857.68
10,928.54 11,011.20
9/95 11,079.32 11,160.37
11,227.98 11,308.52
11,369.71 11,449.21
11,509.01 11,594.04
9/96 11,653.48 11,743.11
11,800.27 11,890.81
11,944.97 12,042.37
12,096.32 12,195.67
9/97 12,252.89 12,350.52
12,412.02 12,508.93
12,570.34 12,668.16
12,730.09 12,825.77
9/98 12,894.00 12,977.48
13,048.79 13,120.03
13,193.90 13,266.58
13,338.95 13,418.61
9/99 13,497.68 13,579.08
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
GE Money Market 4.68% 5.15% 4.65%
90 Day T-Bill 4.63% 5.15% 4.75%
FUND YIELD
- --------------------------------------------------------------------------------
FUND IBC MONEY FUND
7 day current 4.89%** 4.71%
7 day effective 5.01% 4.82%
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.
** THE SEVEN DAY YIELD, RATHER THAN THE TOTAL RETURN, MORE CLOSELY REFLECTS THE
CURRENT EARNINGS OF THE GE MONEY MARKET FUND AT SEPTEMBER 30, 1999.
- --------------------------------------------------------------------------------
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 ONE-YEAR PERIOD ENDED SEPTEMBER 30, 1999?
A. The 90-day U.S. Treasury Bill returned 4.63% while the average return for the
327 Money Market funds tracked by Lipper was 4.40%.
Q. WHAT WERE THE KEY-DRIVERS OF FUND PERFORMANCE?
A. By keeping the average maturity of the portfolio relatively short during the
period of Federal Reserve tightening, we were able to reinvest at higher
levels as rates increased.
80
<PAGE>
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1999
GE MONEY MARKET FUND
[PIE CHART OMITTED]
COMMERCIAL PAPER 42.2%
YANKEE CERTIFICATES OF DEPOSITS 30.3%
U.S. GOVERNMENTS 21.4%
TIME DEPOSITS 5.7%
CASH & OTHER 0.4%
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 99.6%
- --------------------------------------------------------------------------------
U.S. GOVERNMENT (D) -- 21.4%
Federal Home Loan Bank
5.31% 11/10/99 $5,620,000 $ 5,587,186
5.60% 02/16/00 4,000,000 3,916,433
9,503,619
Federal Home Loan Mortgage Corp.
4.82% 10/18/99 1,000,000 997,778
Federal National Mortgage Assoc.
5.12% 10/04/99 1,300,000 1,299,452
5.13% 10/07/99 6,000,000 5,994,940
4.81% 10/15/99 6,700,000 6,687,754
5.22% 11/08/99 2,000,000 1,989,138
5.30% 11/09/99 2,000,000 1,988,625
5.16% 11/17/99 2,448,000 2,431,796
5.33% 12/06/99 7,640,000 7,566,325
27,958,030
U.S. Treasury Notes
5.50% 03/31/00 3,500,000 3,503,272
TOTAL U.S. GOVERNMENT
(COST $41,962,699) 41,962,699
COMMERCIAL PAPER -- 42.2%
Abbey National PLC
5.31% 11/22/99 7,900,000 7,839,407
Bank of America
5.19% 10/01/99 7,500,000 7,500,000
Citibank Capital Market
5.21% 10/04/99 7,500,000 7,496,744
First Union Corp.
5.29% 10/22/99 7,900,000 7,875,622
Goldman Sachs Group LP
5.30% 11/23/99 7,900,000 7,838,358
Halifax Building Society
5.225% 10/12/99 7,000,000 6,988,824
Merrill Lynch & Co. Inc.
5.29% 10/08/99 7,600,000 7,592,182
Morgan (J.P.) & Co. Inc.
5.14% 10/06/99 7,150,000 7,144,896
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Toronto-Dominion Bank
5.295% 11/12/99 $7,900,000 $ 7,851,198
UBS Finance Delaware Inc.
5.15% 10/18/99 7,350,000 7,332,125
Wells Fargo & Co.
5.32% 11/22/99 7,430,000 7,372,958
TOTAL COMMERICAL PAPER
(COST $82,832,314) 82,832,314
YANKEE CERTIFICATES OF DEPOSIT -- 30.3%
ABN AMRO
5.21% 10/21/99 6,740,000 6,740,000
Bank of Montreal
5.34% 10/19/99 7,430,000 7,430,000
Bank of Nova Scotia
5.42% 12/02/99 7,670,000 7,670,000
Bayerische Hypotheken Bank
5.18% 10/19/99 7,250,000 7,250,000
Canadian Imperial Bank
of Commerce
5.405% 12/07/99 7,300,000 7,300,000
Dresdner Bank AG
5.22% 10/29/99 7,570,000 7,570,000
Rabobank USA Financial Corp.
5.31% 10/26/99 8,000,000 8,000,000
Societe General North
America Inc.
5.33% 10/12/99 7,400,000 7,400,000
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(COST $59,360,000) 59,360,000
TIME DEPOSIT -- 5.7%
Republic National Bank
New York New York
5.531% 10/01/99 9,800,000 9,800,000
Royal Bank of Canada
5.563% 10/01/99 1,180,000 1,180,000
State Street Cayman Islands
5.375% 10/01/99 260,126 260,126
TOTAL TIME DEPOSIT
(COST $11,240,126) 11,240,126
TOTAL SHORT-TERM INVESTMENTS
(COST $195,395,139) 195,395,139
OTHER ASSETS AND LIABILITIES,
NET 0.4% 760,160
------------
NET ASSETS-- 100% $196,155,299
============
- -----------
See Notes to Schedules of Investments and Financial Statements.
81
<PAGE>
NOTES TO PERFORMANCE SEPTEMBER 30, 1999 (UNAUDITED)
Information on the preceding performance pages relating to the Funds' one year
total return and top ten largest holdings is audited, all other information on
the performance pages is 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 year ended September 30, 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 Y shares, performance data relating to
the Class Y shares of GE Mid-Cap Growth Fund, GE Value Equity Fund, and GE
Tax-Exempt Fund is limited to the period from the Merger Date to September 30,
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 January 28, 2000. Had these fees
and expenses not been absorbed, the returns (and/or yields) would have been
lower. These provisions may be renewed or discontinued 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 1,393 securities traded in 22 developed
markets of the world. MSCI EAFE is a composite of 989 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
82
<PAGE>
NOTES TO PERFORMANCE SEPTEMBER 30, 1999 (UNAUDITED)
Aggregate is a composite of short-, medium-, and long-term bond performance and
is widely recognized as a 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 GE Tax-Exempt Fund changed its benchmark index during the fiscal year-ended
September 30, 1999 from the Lehman Brothers 10-Year General Obligation Municipal
Bond Index, which is an index comprised of all municipal general obligation
investment-grade debt issues with maturities between 8 and 11 years and each
issue being at least $50 million, to the LBMI.
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 946 taxable money
market funds.
A number of the broad market returns are not available from the funds'
commencement of investment operations through September 30, 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 current or future holdings and should not be considered as a
recommendation to purchase or sell a particular security. They were cited solely
for illustrative purposes. See the prospectus for complete descriptions of
investment objectives, policies, risks and permissible investments.
+ Returns are those of the predecessor Class C, which was combined with Class A
as of the close of business on September 17, 1999. The Average Annual Total
Return figures for Class A with load have been adjusted to reflect Class A
sales charges. See Footnote 10 in the Notes to the Financial Statements.
++ Effective as of the close of business on September 17, 1999, the distribution
and service fees were reduced on Class A shares. See Footnote 10 in the Notes
to the Financial Statements. Had the distribution and service fees not been
reduced, the Class A performance results would have been lower.
83
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1999
(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 September 30, 1999, these securities amounted to
$315,369; $377,086; $57,816; $530,145; $4,920,148; $8,115,161; $6,784,396;
$579,565 and $1,886,788 or 0.5%, 0.7%, 0.5%, 3.6%, 2.6%, 6.2%, 2.2%, 2.2%
and 8.5% of net assets for the GE Global Equity, GE International Equity, GE
Europe Equity, GE Emerging Markets, GE Strategic Investment, GE Fixed
Income, GE Government Securities, GE Short-Term Government and GE High Yield
Funds, respectively. These securities have been determined to be liquid
using guidelines established by the Board of Trustees.
(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 September 30, 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 September 30, 1999 (as a
percentage of net assets) as follows (unaudited):
FGIC 5.9%
MBIA 12.12%
AMBAC 5.9%
(l) All or a portion of security out on loan.
(m) Adjustable rate mortgage coupon. The stated rate represents the rate at
September 30, 1999.
(n) At September 30, 1999, the security is in default. GEIM has determined that
the security is illiquid as it may be difficult to resell within seven days
in the ordinary course of business at approximately the price it is valued.
(o) At September 30, 1999, GEIM has determined that this security is illiquid as
it may be difficult to resell within seven days in the ordinary course of
business at approximately the price it is valued.
ABBREVIATIONS:
ADR -- American Depositary Receipt
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guarantee Insurance Corporation
GDR -- Global Depositary 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
<TABLE>
<CAPTION>
GE U.S. EQUITY FUND
- -------------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
- -------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $27.82 $29.00 $23.02 $19.98 $16.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.18 0.27 0.30 0.36 0.37
Net realized and unrealized
gains (losses) on investments 7.26 1.22 8.19 3.30 3.86
- -------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.44 1.49 8.49 3.66 4.23
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.23 0.24 0.32 0.35 0.29
Net realized gains 2.50 2.43 2.19 0.27 0.09
- -------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.73 2.67 2.51 0.62 0.38
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $32.53 $27.82 $29.00 $23.02 $19.98
- -------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 27.79% 5.62% 39.76% 18.70% 26.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $311,958 $ 124,714 $97,886 $50,035 $26,007
Ratios to average net assets:
Net investment income (loss)* 0.56% 0.92% 1.18% 1.66% 2.12%
Net expenses* 0.81% 0.75% 0.75% 0.75% 0.75%
Gross expenses* 0.83% 0.84% 0.93% 1.06% 1.19%
Portfolio turnover rate 46% 29% 38% 49% 43%
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE U.S. EQUITY FUND
- -----------------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
- -----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/99
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $27.11 $28.35 $22.57 $19.71 $16.03
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.06) 0.05 0.11 0.19 0.21
Net realized and unrealized
gains (losses) on investments 7.08 1.20 8.03 3.25 3.84
- -----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.02 1.25 8.14 3.44 4.05
- -----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.05 0.06 0.17 0.31 0.28
Net realized gains 2.50 2.43 2.19 0.27 0.09
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.55 2.49 2.36 0.58 0.37
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $31.58 $27.11 $28.35 $22.57 $19.71
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 26.83% 4.80% 38.75% 17.78% 25.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $36,921 $21,407 $14,380 $7,194 $1,563
Ratios to average net assets:
Net investment income (loss)* (0.19%) 0.17% 0.44% 0.90% 1.29%
Net expenses* 1.56% 1.50% 1.50% 1.50% 1.50%
Gross expenses* 1.58% 1.63% 1.88% 2.08% 3.50%
Portfolio turnover rate 46% 29% 38% 49% 43%
- -----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95
- ---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $27.78 $28.99 $23.03 $19.98 $16.16
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.26 0.34 0.37 0.40 0.38
Net realized and unrealized
gains (losses) on investments 7.25 1.21 8.19 3.31 3.88
- ---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS 7.51 1.55 8.56 3.71 4.26
- ---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.31 0.33 0.41 0.39 0.35
Net realized gains 2.50 2.43 2.19 0.27 0.09
- ---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.81 2.76 2.60 0.66 0.44
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $32.48 $27.78 $28.99 $23.03 $19.98
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 28.14% 5.86% 40.16% 18.97% 27.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $358,583 $281,071 $212,957 $144,470 $128,247
Ratios to average net assets:
Net investment income (loss)* 0.81% 1.16% 1.45% 1.90% 2.36%
Net expenses* 0.56% 0.50% 0.50% 0.50% 0.50%
Gross expenses* 0.58% 0.56% 0.52% 0.59% 0.71%
Portfolio turnover rate 46% 29% 38% 49% 43%
</TABLE>
- --------------
See Notes to Schedules of Investments and Financial Statements.
85
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE PREMIER GROWTH EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
9/30/99(B,C) 9/30/98(B) 9/30/97(B) 9/30/99(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 $20.20 $18.25 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.08) 0.03 0.00 (0.27) (0.12) (0.09)
Net realized and unrealized
gains (losses) on investments 7.83 2.38 3.35 7.73 2.36 3.34
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.75 2.41 3.35 7.46 2.24 3.25
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.03 0.03 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 0.69 0.32 0.00 0.66 0.29 0.00
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $27.50 $20.44 $18.35 $27.00 $20.20 $18.25
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 38.54% 13.35% 22.33% 37.53% 12.47% 21.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $67,311 $15,044 $7,287 $15,501 $2,076 $447
Ratios to average net assets:
Net investment income (loss)* (0.29%) 0.17% (0.03%) (1.03%) (0.62%) (0.76%)
Net expenses* 1.10% 1.12% 1.15% 1.84% 1.90% 1.90%
Gross expenses* 1.10% 1.16% 1.62% 1.84% 2.27% 9.30%
Portfolio turnover rate 26% 35% 17% 26% 35% 17%
</TABLE>
GE PREMIER GROWTH EQUITY FUND
- ------------------------------------------------------------------------------
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97(B)
- ------------------------------------------------------------------------------
INCEPTION DATE -- -- 12/31/96
Net asset value, beginning of period $20.50 $18.38 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01) 0.09 0.04
Net realized and unrealized
gains (losses) on investments 7.84 2.37 3.34
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.83 2.46 3.38
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.07 0.05 0.00
Net realized gains 0.66 0.29 0.00
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.73 0.34 0.00
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $27.60 $20.50 $18.38
- ------------------------------------------------------------------------------
TOTAL RETURN (A) 38.92% 13.65% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $20,704 $7,580 $5,770
Ratios to average net assets:
Net investment income (loss)* (0.03%) 0.47% 0.31%
Net expenses* 0.85% 0.88% 0.90%
Gross expenses* 0.85% 0.89% 1.17%
Portfolio turnover rate 26% 35% 17%
[PHOTO OMITTED]
- ---------------
See Notes to Schedules of Investments and Financial Statements.
86
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE VALUE EQUITY FUND
- -------------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- -------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.93 $13.58 $10.83 $8.95 $7.51
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.02 0.05 0.07 0.05 0.14
Net realized and unrealized
gains (losses) on investments 2.66 0.46 3.59 1.99 1.45
- -------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 2.68 0.51 3.66 2.04 1.59
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.03 0.00 0.04 0.09 0.15
Net realized gains 0.40 4.16 0.87 0.07 0.00
- -------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.43 4.16 0.91 0.16 0.15
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.18 $9.93 $13.58 $10.83 $8.95
- -------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 27.34% 5.86% 36.18% 23.10% 21.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $29,607 $14,276 $8,236 $5,833 $4,083
Ratios to average net assets:
Net investment income (loss)* 0.18% 0.50% 0.63% 1.03% 1.71%
Net expenses* 1.29% 1.31% 1.30% 1.35% 1.35%
Gross expenses* 1.30% 1.33% 1.33% 1.73% 2.43%
Portfolio turnover rate 31% 40% 131% 100% 27%
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- -----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.77 $13.48 $10.79 $8.93 $7.50
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04) 0.00 (0.01) 0.04 0.07
Net realized and unrealized
gains (losses) on investments 2.61 0.45 3.57 1.93 1.45
- -----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 2.57 0.45 3.56 1.97 1.52
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00 0.04 0.09
Net realized gains 0.40 4.16 0.87 0.07 0.00
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.40 4.16 0.87 0.11 0.09
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.94 $9.77 $13.48 $10.79 $8.93
- -----------------------------------------------------------------------------------------------
TOTAL RETURN (A) 26.67% 5.32% 35.23% 22.30% 20.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $51,369 $44,655 $46,035 $33,318 $14,450
Ratios to average net assets:
Net investment income (loss)* (0.32%) 0.00% (0.12%) 0.23% 0.94%
Net expenses* 1.81% 1.81% 2.05% 2.10% 2.10%
Gross expenses* 1.82% 1.81% 2.07% 2.40% 3.18%
Portfolio turnover rate 31% 40% 131% 100% 27%
- -----------------------------------------------------------------------------------------------
</TABLE>
CLASS Y(D)
9/30/99(B) 9/30/98(B)
- ------------------------------------------------------------------------------
INCEPTION DATE -- 1/5/98
Net asset value, beginning of period $10.38 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.08 0.08
Net realized and unrealized
gains (losses) on investments 2.76 0.30
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 2.84 0.38
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.08 0.00
Net realized gains 0.40 0.00
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.48 0.00
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.74 $10.38
- ------------------------------------------------------------------------------
TOTAL RETURN (A) 27.85% 3.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,292 $1,580
Ratios to average net assets:
Net investment income (loss)* 0.68% 0.98%
Net expenses* 0.81% 0.81%
Gross expenses* 0.82% 0.81%
Portfolio turnover rate 31% 40%
- ------------
See Notes to Schedules of Investments and Financial Statements.
87
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE MID-CAP GROWTH FUND
- -------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.27 $17.61 $13.16 $11.38 $8.81
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04) (0.04) (0.07) 0.00 0.01
Net realized and unrealized
gains (losses) on investments 1.19 (1.86) 4.52 1.78 2.56
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.15 (1.90) 4.45 1.78 2.57
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00 0.00 0.00
Net realized gains 0.00 7.37 0.00 0.00 0.00
Return of capital 0.00 0.07 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 7.44 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.42 $8.27 $17.61 $13.16 $11.38
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) 13.91% (16.11%) 33.81% 15.64% 29.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $15,943 $10,134 $10,885 $8,222 $5,986
Ratios to average net assets:
Net investment income (loss)* (0.41%) (0.35%) (0.51%) 0.03% 0.10%
Net expenses* 1.38% 1.40% 1.31% 1.35% 1.35%
Gross expenses* 1.46% 1.45% 1.46% 1.70% 2.44%
Portfolio turnover rate 48% 13% 139% 41% 74%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE MID-CAP GROWTH FUND
- ---------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- ---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.80 $17.11 $12.87 $11.21 $8.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.08) (0.08) (0.18) (0.09) (0.05)
Net realized and unrealized
gains (losses) on investments 1.12 (1.79) 4.42 1.75 2.52
- ---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 1.04 (1.87) 4.24 1.66 2.47
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00 0.00 0.00
Net realized gains 0.00 7.40 0.00 0.00 0.00
Return of capital 0.00 0.04 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 7.44 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.84 $7.80 $17.11 $12.87 $11.21
- ---------------------------------------------------------------------------------------------
TOTAL RETURN (A) 13.33% (16.62%) 33.02% 14.81% 28.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $18,073 $22,038 $32,280 $27,616 $14,311
Ratios to average net assets:
Net investment income (loss)* (0.91%) (0.86%) (1.26%) (0.73%) (0.66%)
Net expenses* 1.90% 1.90% 2.06% 2.10% 2.10%
Gross expenses* 1.97% 1.93% 2.21% 2.41% 3.19%
Portfolio turnover rate 48% 13% 139% 41% 74%
- ---------------------------------------------------------------------------------------------
</TABLE>
CLASS Y(D)
9/30/99(B) 9/30/98(B)
- --------------------------------------------------------------------------------
INCEPTION DATE -- 1/5/98
Net asset value, beginning of period $8.71 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.01
Net realized and unrealized
gains (losses) on investments 1.26 (1.30)
- --------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 1.27 (1.29)
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00
Net realized gains 0.00 0.00
Return of capital 0.00 0.00
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 0.00
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.98 $8.71
- --------------------------------------------------------------------------------
TOTAL RETURN (A) 14.58% (12.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $783 $471
Ratios to average net assets:
Net investment income (loss)* 0.09% 0.21%
Net expenses* 0.90% 0.89%
Gross expenses* 0.97% 0.89%
Portfolio turnover rate 48% 13%
- --------------
See Notes to Schedules of Investments and Financial Statements.
88
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE MID-CAP VALUE EQUITY FUND
- -----------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS Y(D)
9/30/99(B,C) 9/30/99(B) 9/30/99(B)
- -----------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/98 12/31/98 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.04 (0.02) 0.06
Net realized and unrealized
gains (losses) on investments (0.21) (0.21) (0.22)
- -----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.17) (0.23) (0.16)
- -----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00
Net realized gains 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.83 $9.77 $9.84
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) (1.70%) (2.30%) (1.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $708 $177 $10,103
Ratios to average net assets:
Net investment income (loss)* 0.47% (0.21%) 0.79%
Net expenses* 1.15% 1.90% 0.90%
Gross expenses* 1.54% 2.38% 1.36%
Portfolio turnover rate 17% 17% 17%
GE SMALL-CAP VALUE EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS Y(D)
9/30/99(B,C) 9/30/99(B) 9/30/99(B)
- ---------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/98 9/30/98 9/30/98
Net asset value, beginning of period $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02) (0.06) 0.05
Net realized and unrealized
gains (losses) on investments 2.24 2.19 2.19
- ---------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 2.22 2.13 2.24
- ---------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.03 0.01 0.03
Net realized gains 0.03 0.03 0.03
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.06 0.04 0.06
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.16 $12.09 $12.18
- ---------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 22.28% 21.37% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $14,561 $8,505 $293
Ratios to average net assets:
Net investment income (loss)* (0.15%) (0.56%) 0.41%
Net expenses* 1.15% 1.90% 0.90%
Gross expenses* 1.41% 2.19% 1.17%
Portfolio turnover rate 182% 182% 182%
</TABLE>
- ------------
See Notes to Schedules of Investments and Financial Statements.
89
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE GLOBAL EQUITY FUND
- ---------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- ---------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.72 $24.81 $22.18 $20.31 $19.40
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.06 0.05 0.04 0.06 0.09
Net realized and unrealized
gains (losses) on investments 7.05 (2.65) 3.94 2.22 1.30
- ---------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 7.11 (2.60) 3.98 2.28 1.39
- ---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.02 0.06 0.04 0.09
Net realized gains 0.97 2.47 1.29 0.37 0.39
- ---------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.97 2.49 1.35 0.41 0.48
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.86 $19.72 $24.81 $22.18 $20.31
- ---------------------------------------------------------------------------------------
TOTAL RETURN (A) 36.89% (10.86%) 18.82% 11.44% 7.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $39,245 $28,412 $35,120 $28,682 $23,683
Ratios to average net assets:
Net investment income (loss)* 0.23% 0.22% 0.24% 0.33% 0.59%
Net expenses* 1.35% 1.34% 1.35% 1.35% 1.35%
Gross expenses* 1.37% 1.35% 1.45% 1.60% 1.42%
Portfolio turnover rate 64% 71% 70% 46% 46%
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GLOBAL EQUITY FUND
- -----------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- -----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.17 $24.32 $21.87 $20.14 $19.32
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.12) (0.11) (0.08) (0.04) 0.00
Net realized and unrealized
gains (losses) on investments 6.84 (2.57) 3.82 2.14 1.23
- -----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 6.72 (2.68) 3.74 2.10 1.23
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00 0.00 0.02
Net realized gains 0.97 2.47 1.29 0.37 0.39
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.97 2.47 1.29 0.37 0.41
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.92 $19.17 $24.32 $21.87 $20.14
- -----------------------------------------------------------------------------------------
TOTAL RETURN (A) 35.85% (11.44%) 17.92% 10.61% 6.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,477 $989 $877 $600 $356
Ratios to average net assets:
Net investment income (loss)* (0.51%) (0.48%) (0.52%) (0.34%) (0.11%)
Net expenses* 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* 2.12% 2.45% 3.33% 3.50% 3.50%
Portfolio turnover rate 64% 71% 70% 46% 46%
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- -----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.72 $24.83 $22.25 $20.37 $19.45
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.12 0.09 0.10 0.13 0.13
Net realized and unrealized
gains (losses) on investments 7.04 (2.63) 3.94 2.21 1.31
- -----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS 7.16 (2.54) 4.04 2.34 1.44
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.07 0.10 0.17 0.09 0.13
Net realized gains 0.97 2.47 1.29 0.37 0.39
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 1.04 2.57 1.46 0.46 0.52
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.84 $19.72 $24.83 $22.25 $20.37
- -----------------------------------------------------------------------------------------
TOTAL RETURN (A) 37.20% (10.59%) 19.14% 11.71% 7.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $23,086 $15,039 $22,642 $10,123 $9,785
Ratios to average net assets:
Net investment income (loss)* 0.50% 0.37% 0.48% 0.56% 0.84%
Net expenses* 1.10% 1.07% 1.10% 1.10% 1.10%
Gross expenses* 1.12% 1.07% 1.10% 1.12% 1.75%
Portfolio turnover rate 64% 71% 70% 46% 46%
</TABLE>
- ------------
See Notes to Schedules of Investments and Financial Statements.
90
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE INTERNATIONAL EQUITY FUND
- ----------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
- ----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.11 $20.36 $17.65 $15.88 $15.19
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.09 0.05 0.11 0.12
Net realized and unrealized
gains (losses) on investments 3.74 (1.60) 3.19 1.72 0.65
- ----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 3.79 (1.51) 3.24 1.83 0.77
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.03 0.06 0.08
Net realized gains 0.57 3.74 0.50 0.00 0.00
- ----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.57 3.74 0.53 0.06 0.08
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.33 $15.11 $20.36 $17.65 $15.88
- ----------------------------------------------------------------------------------------
TOTAL RETURN (A) 25.48% (8.71%) 18.79% 11.54% 5.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $32,938 $6,114 $6,152 $3,230 $1,262
Ratios to average net assets:
Net investment income (loss)* 0.29% 0.50% 0.45% 0.68% 0.83%
Net expenses* 1.35% 1.35% 1.35% 1.35% 1.35%
Gross expenses* 1.39% 1.42% 1.58% 1.96% 2.75%
Portfolio turnover rate 51% 93% 51% 36% 27%
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
- --------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.68 $20.02 $17.47 $15.77 $15.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.07) (0.05) (0.06) 0.05 0.01
Net realized and unrealized
gains (losses) on investments 3.62 (1.55) 3.11 1.65 0.64
- --------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 3.55 (1.60) 3.05 1.70 0.65
- --------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00 0.00 0.01
Net realized gains 0.57 3.74 0.50 0.00 0.00
- --------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.57 3.74 0.50 0.00 0.01
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.66 $14.68 $20.02 $17.47 $15.77
- --------------------------------------------------------------------------------------------
TOTAL RETURN (A) 24.56% (9.39%) 17.86% 10.78% 4.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $1,488 $948 $455 $272 $57
Ratios to average net assets:
Net investment income (loss)* (0.40%) (0.26%) (0.30%) 0.28% 0.10%
Net expenses* 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* 2.14% 2.59% 4.12% 3.50% 3.50%
Portfolio turnover rate 51% 93% 51% 36% 27%
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
- ----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.18 $20.43 $17.76 $15.94 $15.22
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.11 0.01 0.13 0.17 0.12
Net realized and unrealized
gains (losses) on investments 3.73 (1.46) 3.18 1.73 0.70
- ----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 3.84 (1.45) 3.31 1.90 0.82
- ----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.01 0.06 0.14 0.08 0.10
Net realized gains 0.57 3.74 0.50 0.00 0.00
- ----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.58 3.80 0.64 0.08 0.10
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.44 $15.18 $20.43 $17.76 $15.94
- ----------------------------------------------------------------------------------------
TOTAL RETURN (A) 25.72% (8.34%) 19.16% 11.97% 5.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $21,952 $15,367 $75,098 $63,225 $32,907
Ratios to average net assets:
Net investment income (loss)* 0.60% 0.08% 0.76% 0.99% 0.97%
Net expenses* 1.10% 1.04% 1.01% 1.03% 1.07%
Gross expenses* 1.14% 1.06% 1.01% 1.03% 1.18%
Portfolio turnover rate 51% 93% 51% 36% 27%
</TABLE>
- -------------
See Notes to Schedules of Investments and Financial Statements.
91
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE EUROPE EQUITY FUND
- ------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS Y(D)
9/30/99(B,C) 9/30/99(B) 9/30/99(B)
- ------------------------------------------------------------------------------------------------
INCEPTION DATE 1/29/99 1/29/99 1/29/99
<S> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.06 0.02 0.09
Net realized and unrealized
gains (losses) on investments (0.13) (0.14) (0.15)
- ------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.07) (0.12) (0.06)
- ------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00
Net realized gains 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.93 $9.88 $9.94
- ------------------------------------------------------------------------------------------------
TOTAL RETURN (A) (0.70%) (1.20%) (0.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $669 $144 $10,051
Ratios to average net assets:
Net investment income (loss)* 0.88% 0.24% 1.36%
Net expenses* 1.45% 2.20% 1.20%
Gross expenses* 1.91% 2.69% 1.71%
Portfolio turnover rate 47% 47% 47%
- ------------------------------------------------------------------------------------------------
GE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS Y(D)
9/30/99(B,C) 9/30/99(B) 9/30/99(B)
- --------------------------------------------------------------------------------------------------------
INCEPTION DATE 1/29/99 1/29/99 1/29/99
Net asset value, beginning of period $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.05) (0.10) (0.01)
Net realized and unrealized
gains (losses) on investments 3.52 3.50 3.50
- --------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 3.47 3.40 3.49
- --------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.00 0.00 0.00
Net realized gains 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.47 $13.40 $13.49
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 34.70% 34.00% 34.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $900 $225 $13,651
Ratios to average net assets:
Net investment income (loss)* (0.56%) (1.26%) (0.18%)
Net expenses* 1.60% 2.35% 1.35%
Gross expenses* 1.90% 2.71% 1.74%
Portfolio turnover rate 59% 59% 59%
</TABLE>
- ------------
See Notes to Schedules of Investments and Financial Statements.
92
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE STRATEGIC INVESTMENT FUND
- ----------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
- ----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.15 $24.11 $20.38 $18.46 $15.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.55 0.61 0.59 0.54 0.53
Net realized and unrealized
gains (losses) on investments 2.98 0.73 3.88 1.92 2.59
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 3.53 1.34 4.47 2.46 3.12
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.56 0.52 0.49 0.46 0.38
Net realized gains 2.08 0.78 0.25 0.08 0.00
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.64 1.30 0.74 0.54 0.38
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.04 $24.15 $24.11 $20.38 $18.46
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) 15.28% 5.88% 22.45% 13.58% 20.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $107,034 $49,540 $40,516 $26,467 $17,821
Ratios to average net assets:
Net investment income (loss)* 2.17% 2.49% 2.66% 2.81% 3.21%
Net expenses* 0.87% 0.85% 0.90% 0.90% 0.90%
Gross expenses* 0.87% 0.85% 0.94% 1.05% 1.03%
Portfolio turnover rate 109% 119% 106% 93% 98%
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE STRATEGIC INVESTMENT FUND
- --------------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
- --------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $23.65 $23.70 $20.04 $18.26 $15.62
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.35 0.42 0.42 0.41 0.40
Net realized and unrealized
gains (losses) on investments 2.93 0.69 3.82 1.87 2.58
- --------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 3.28 1.11 4.24 2.28 2.98
- --------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.40 0.38 0.33 0.42 0.34
Net realized gains 2.08 0.78 0.25 0.08 0.00
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.48 1.16 0.58 0.50 0.34
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $24.45 $23.65 $23.70 $20.04 $18.26
- --------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 14.44% 4.91% 21.57% 12.73% 19.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $16,372 $11,158 $5,685 $3,701 $882
Ratios to average net assets:
Net investment income (loss)* 1.44% 1.72% 1.92% 2.11% 2.46%
Net expenses* 1.62% 1.63% 1.65% 1.65% 1.65%
Gross expenses* 1.62% 1.63% 1.93% 2.10% 3.50%
Portfolio turnover rate 109% 119% 106% 93% 98%
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95
- ---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.20 $24.16 $20.44 $18.49 $15.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.61 0.67 0.64 0.63 0.55
Net realized and unrealized
gains (losses) on investments 2.99 0.72 3.89 1.90 2.62
- ---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS 3.60 1.39 4.53 2.53 3.17
- ---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.62 0.57 0.56 0.50 0.42
Net realized gains 2.08 0.78 0.25 0.08 0.00
- ---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 2.70 1.35 0.81 0.58 0.42
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $25.10 $24.20 $24.16 $20.44 $18.49
- ---------------------------------------------------------------------------------------------
TOTAL RETURN (A) 15.56% 6.10% 22.76% 13.95% 20.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $62,714 $51,802 $37,924 $36,162 $18,665
Ratios to average net assets:
Net investment income (loss)* 2.41% 2.70% 2.90% 3.16% 3.46%
Net expenses* 0.62% 0.64% 0.65% 0.58% 0.65%
Gross expenses* 0.62% 0.64% 0.65% 0.59% 0.97%
Portfolio turnover rate 109% 119% 106% 93% 98%
</TABLE>
- ------------
See Notes to Schedules of Investments and Financial Statements.
93
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE FIXED INCOME FUND
- ---------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- ---------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.55 $12.06 $11.70 $11.92 $11.27
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.64 0.68 0.72 0.69 0.73
Net realized and unrealized
gains (losses) on investments (0.79) 0.50 0.35 (0.21) 0.67
- ---------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS (0.15) 1.18 1.07 0.48 1.40
- ---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.64 0.67 0.71 0.70 0.75
Net realized gains 0.00 0.00 0.00 0.00 0.00
In excess of net investment income 0.00 0.02 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.64 0.69 0.71 0.70 0.75
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.76 $12.55 $12.06 $11.70 $11.92
- ---------------------------------------------------------------------------------------
TOTAL RETURN (A) (1.20%) 10.06% 9.45% 4.10% 12.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $92,217 $49,736 $35,097 $28,115 $21,401
Ratios to average net assets:
Net investment income (loss)* 5.27% 5.53% 6.17% 5.84% 6.37%
Net expenses* 0.80% 0.80% 0.85% 0.85% 0.85%
Gross expenses* 0.83% 0.83% 0.96% 0.99% 0.95%
Portfolio turnover rate 246% 219% 258% 275% 315%
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE FIXED INCOME FUND
- -------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- ------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.55 $12.06 $11.70 $11.91 $11.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.55 0.58 0.63 0.60 0.65
Net realized and unrealized
gains (losses) on investments (0.78) 0.50 0.36 (0.20) 0.66
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS (0.23) 1.08 0.99 0.40 1.31
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.55 0.57 0.63 0.61 0.66
Net realized gains 0.00 0.00 0.00 0.00 0.00
In excess of net investment income 0.00 0.02 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.55 0.59 0.63 0.61 0.66
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.77 $12.55 $12.06 $11.70 $11.91
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) (1.85%) 9.24% 8.64% 3.41% 11.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $2,854 $1,855 $1,401 $1,673 $234
Ratios to average net assets:
Net investment income (loss)* 4.54% 4.79% 5.17% 5.19% 5.57%
Net expenses* 1.55% 1.55% 1.56% 1.60% 1.60%
Gross expenses* 1.58% 1.85% 2.19% 2.44% 3.50%
Portfolio turnover rate 246% 219% 258% 275% 315%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- -----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.54 $12.05 $11.69 $11.92 $11.27
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.67 0.71 0.75 0.72 0.77
Net realized and unrealized
gains (losses) on investments (0.78) 0.50 0.35 (0.22) 0.65
- -----------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS (0.11) 1.21 1.10 0.50 1.42
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.67 0.70 0.74 0.73 0.77
Net realized gains 0.00 0.00 0.00 0.00 0.00
In excess of net investment income 0.00 0.02 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.67 0.72 0.74 0.73 0.77
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.76 $12.54 $12.05 $11.69 $11.92
- -----------------------------------------------------------------------------------------
TOTAL RETURN (A) (0.87%) 10.33% 9.74% 4.32% 13.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $36,152 $30,067 $16,229 $19,098 $6,642
Ratios to average net assets:
Net investment income (loss)* 5.51% 5.58% 5.97% 6.14% 6.57%
Net expenses* 0.55% 0.55% 0.56% 0.55% 0.59%
Gross expenses* 0.58% 0.57% 0.59% 0.57% 2.50%
Portfolio turnover rate 246% 219% 258% 275% 315%
</TABLE>
- ----------
See Notes to Schedules of Investments and Financial Statements.
94
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE GOVERNMENT SECURITIES FUND
- -------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $8.90 $8.53 $8.48 $8.70 $8.43
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.50 0.56 0.53 0.62 0.58
Net realized and unrealized
gains (losses) on investments (0.68) 0.39 0.05 (0.22) 0.38
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS (0.18) 0.95 0.58 0.40 0.96
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.58 0.53 0.53 0.54 0.58
Net realized gains 0.00 0.00 0.00 0.00 0.00
Return of capital 0.00 0.00 0.00 0.08 0.11
In excess of net investment income 0.00 0.05 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.58 0.58 0.53 0.62 0.69
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $8.14 $8.90 $8.53 $8.48 $8.70
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) (2.01%) 11.61% 7.13% 4.80% 11.77%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) $42,723 $24,541 $24,027 $29,090 $26,889
Ratios to average net assets:
Net investment income (loss)* 5.89% 6.52% 6.91% 6.59% 6.78%
Net expenses* 1.07% 1.10% 0.88% 0.90% 1.01%
Gross expenses* 1.11% 1.16% 0.88% 0.90% 1.01%
Portfolio turnover rate 101% 64% 110% 334% 316%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- --------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 4/22/87
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $8.93 $8.54 $8.49 $8.71 $8.42
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.46 0.52 0.47 0.55 0.51
Net realized and unrealized
gains (losses) on investments (0.67) 0.39 0.05 (0.22) 0.41
- --------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS (0.21) 0.91 0.52 0.33 0.92
- --------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.52 0.48 0.47 0.48 0.52
Net realized gains 0.00 0.00 0.00 0.00 0.00
Return of capital 0.00 0.00 0.00 0.07 0.11
In excess of net investment income 0.00 0.04 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.52 0.52 0.47 0.55 0.63
- --------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $8.20 $8.93 $8.54 $8.49 $8.71
- --------------------------------------------------------------------------------------------
TOTAL RETURN (A) (2.42%) 10.99% 6.36% 4.00% 11.19%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of period
(in thousands) $269,409 $399,675 $523,303 $767,216 $1,112,254
Ratios to average net assets:
Net investment income (loss)* 5.34% 6.00% 6.15% 5.77% 6.08%
Net expenses* 1.59% 1.60% 1.63% 1.69% 1.76%
Gross expenses* 1.63% 1.61% 1.63% 1.69% 1.76%
Portfolio turnover rate 101% 64% 110% 334% 316%
- --------------------------------------------------------------------------------------------
</TABLE>
- ----------
See Notes to Schedules of Investments and Financial Statements.
95
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE SHORT-TERM GOVERNMENT FUND
- ---------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- ---------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.02 $11.86 $11.79 $11.91 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.55 0.65 0.67 0.63 0.66
Net realized and unrealized
gains (losses) on investments (0.25) 0.19 0.08 (0.05) 0.22
- ---------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.30 0.84 0.75 0.58 0.88
- ---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.56 0.66 0.67 0.64 0.69
Net realized gains 0.05 0.02 0.01 0.06 0.00
- ---------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.61 0.68 0.68 0.70 0.69
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.71 $12.02 $11.86 $11.79 $11.91
- ---------------------------------------------------------------------------------------
TOTAL RETURN (A) 2.52% 7.36% 6.57% 4.98% 7.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $23,106 $8,199 $5,319 $3,653 $2,437
Ratios to average net assets:
Net investment income (loss)* 4.70% 5.47% 5.57% 5.28% 5.62%
Net expenses* 0.70% 0.70% 0.70% 0.70% 0.70%
Gross expenses* 1.01% 0.95% 1.07% 1.34% 1.84%
Portfolio turnover rate 118% 185% 265% 201% 415%
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE SHORT-TERM GOVERNMENT FUND
- -----------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- -----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.01 $11.84 $11.78 $11.90 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.48 0.58 0.61 0.56 0.59
Net realized and unrealized
gains (losses) on investments (0.26) 0.20 0.06 (0.05) 0.21
- -----------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.22 0.78 0.67 0.51 0.80
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.48 0.59 0.60 0.57 0.62
Net realized gains 0.05 0.02 0.01 0.06 0.00
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.53 0.61 0.61 0.63 0.62
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.70 $12.01 $11.84 $11.78 $11.90
- -----------------------------------------------------------------------------------------
TOTAL RETURN (A) 1.91% 6.83% 5.84% 4.35% 7.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $641 $895 $1,031 $145 $83
Ratios to average net assets:
Net investment income (loss)* 4.10% 4.87% 4.84% 4.67% 5.07%
Net expenses* 1.30% 1.30% 1.30% 1.30% 1.30%
Gross expenses* 1.61% 1.88% 7.77% 3.35% 3.35%
Portfolio turnover rate 118% 185% 265% 201% 415%
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- -----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.01 $11.85 $11.78 $11.90 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.58 0.68 0.70 0.66 0.69
Net realized and unrealized
gains (losses) on investments (0.25) 0.19 0.08 (0.05) 0.21
- -----------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.33 0.87 0.78 0.61 0.90
- -----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.58 0.69 0.70 0.67 0.72
Net realized gains 0.05 0.02 0.01 0.06 0.00
- -----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.63 0.71 0.71 0.73 0.72
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.71 $12.01 $11.85 $11.78 $11.90
- -----------------------------------------------------------------------------------------
TOTAL RETURN (A) 2.87% 7.65% 6.83% 5.24% 7.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $3,140 $9,444 $7,717 $7,786 $8,048
Ratios to average net assets:
Net investment income (loss)* 4.91% 5.74% 5.80% 5.54% 5.89%
Net expenses* 0.45% 0.45% 0.45% 0.45% 0.45%
Gross expenses* 0.76% 0.68% 0.68% 0.83% 0.98%
Portfolio turnover rate 118% 185% 265% 201% 415%
</TABLE>
- ---------
See Notes to Schedules of Investments and Financial Statements.
96
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE TAX-EXEMPT FUND
- -------------------------------------------------------------------------------------------
CLASS A
9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- -------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.83 $11.63 $11.42 $11.31 $10.59
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.49 0.51 0.53 0.62 0.55
Net realized and unrealized
gains (losses) on investments (0.69) 0.20 0.22 0.05 0.73
- -------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS (0.20) 0.71 0.75 0.67 1.28
- -------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.49 0.51 0.54 0.56 0.56
Net realized gains 0.00 0.00 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.49 0.51 0.54 0.56 0.56
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.14 $11.83 $11.63 $11.42 $11.31
- -------------------------------------------------------------------------------------------
TOTAL RETURN (A) (1.84%) 6.33% 6.77% 6.13% 12.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $22,228 $5,730 $16,542 $16,169 $16,025
Ratios to average net assets:
Net investment income (loss)* 4.28% 4.32% 5.01% 5.42% 5.01%
Net expenses* 1.08% 1.10% 0.35% 0.00% 0.00%
Gross expenses* 1.21% 1.23% 1.57% 1.52% 1.81%
Portfolio turnover rate 48% 74% 13% 6% 25%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE TAX-EXEMPT FUND
- ----------------------------------------------------------------------------------------------
CLASS B
9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
- ----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.83 $11.63 $11.44 $11.32 $10.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.43 0.44 0.51 0.62 0.55
Net realized and unrealized
gains (losses) on investments (0.70) 0.21 0.21 0.06 0.73
- ----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS (0.27) 0.65 0.72 0.68 1.28
- ----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.43 0.45 0.53 0.56 0.56
Net realized gains 0.00 0.00 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.43 0.45 0.53 0.56 0.56
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.13 $11.83 $11.63 $11.44 $11.32
- ----------------------------------------------------------------------------------------------
TOTAL RETURN (A) (2.34%) 5.68% 6.46% 6.12% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $7,269 $8,905 $10,133 $9,184 $7,668
Ratios to average net assets:
Net investment income (loss)* 3.72% 3.81% 4.79% 5.43% 5.01%
Net expenses* 1.60% 1.60% 0.57% 0.00% 0.00%
Gross expenses* 1.75% 1.71% 2.32% 2.26% 2.56%
Portfolio turnover rate 48% 74% 13% 6% 25%
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
9/30/99(B) 9/30/98(B) 9/30/97
- -------------------------------------------------------------------------------------
INCEPTION DATE -- -- 9/26/97
<S> <C> <C> <C>
Net asset value, beginning of period $12.30 $12.10 $12.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.57 0.58 0.02
Net realized and unrealized gains
(losses) on investments (0.72) 0.27 0.00
- -------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.15) 0.85 0.02
- -------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.57 0.65 0.01
Net realized gains 0.00 0.00 0.00
- -------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.57 0.65 0.01
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.58 $12.30 $12.10
- -------------------------------------------------------------------------------------
TOTAL RETURN (A) (1.37%) 7.30% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $24 $24 $3,216
Ratios to average net assets:
Net investment income (loss)* 4.72% 4.74% 4.31%
Net expenses* 0.59% 0.60% 0.54%
Gross expenses* 0.74% 1.25% 0.56%
Portfolio turnover rate 48% 74% 13%
</TABLE>
- ----------
See Notes to Schedules of Investments and Financial Statements.
97
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE HIGH YIELD FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS Y(D)
9/30/99(B,C) 9/30/99(B) 9/30/99(B)
- ------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 12/31/98 12/31/98 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.55 0.48 0.55
Net realized and unrealized
gains (losses) on investments (0.49) (0.48) (0.48)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.06 0.00 0.07
- ------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.53 0.47 0.54
Net realized gains 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.53 0.47 0.54
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.53 $9.53 $9.53
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 0.53% (0.03%) 0.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,931 $154 $20,126
Ratios to average net assets:
Net investment income (loss)* 7.57% 6.53% 7.49%
Expenses 0.89% 1.70% 0.70%
Gross expenses 1.16% 2.05% 0.98%
Portfolio turnover rate 27% 27% 27%
- ------------------------------------------------------------------------------------------------------------------------------------
GE MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------------
CLASS A
9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
- --------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.05 0.05 0.05 0.05
Net realized and unrealized gains
on investments 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT
OPERATIONS 0.05 0.05 0.05 0.05 0.05
- --------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income 0.05 0.05 0.05 0.05 0.05
Net realized gains 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0.05 0.05 0.05 0.05 0.05
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 4.68% 5.23% 5.14% 5.18% 5.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $196,155 $153,665 $114,030 $85,842 $71,664
Ratios to average net assets:
Net investment income (loss)* 4.58% 5.11% 5.04% 5.06% 5.32%
Net expenses* 0.49% 0.50% 0.47% 0.45% 0.45%
Gross expenses* 0.50% 0.52% 0.56% 0.66% 0.70%
</TABLE>
- ----------
See Notes to Schedules of Investments and 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 DISTRIBUTION, 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) EFFECTIVE AS OF THE CLOSE OF BUSINESS SEPTEMBER 17, 1999, CLASS C SHARES OF
GE FUNDS WERE COMBINED WITH CLASS A SHARES. THE CURRENT YEAR AND PRIOR
YEARS' PER SHARE INFORMATION, TOTAL RETURN, AND RATIOS/SUPPLEMENTAL DATA
REFLECT THE RELEVANT INFORMATION OF THE PREDECESSOR CLASS C SHARES FOR ALL
FUNDS EXCEPT FOR THE GE VALUE EQUITY FUND, GE MID-CAP GROWTH EQUITY FUND, GE
GOVERNMENT SECURITIES FUND AND GE TAX-EXEMPT FUND WHERE THE RELEVANT
INFORMATION FOR CLASS A SHARES WAS RETAINED. ALSO SEE NOTE 10 OF NOTES TO
FINANCIAL STATEMENTS.
(D) EFFECTIVE AS OF THE CLOSE OF BUSINESS SEPTEMBER 17, 1999, CLASS D SHARES ARE
RENAMED CLASS Y SHARES.
(E) FOR THE PERIOD NOVEMBER 1, 1996, THROUGH SEPTEMBER 30, 1997.
* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
99
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES SEPTEMBER 30, 1999
<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>
ASSETS
Investments in securities, at market (cost $571,463,018; $85,398,454;
$64,494,553; $29,878,983; $10,874,083; $21,119,509; $51,066,197;
$50,645,438; $10,585,929;
$11,689,824; and $151,867,151, respectively ) $683,686,423 $97,268,738 $80,096,112 $31,239,940
Short-term investments (at amortized cost) 24,651,307 7,513,314 3,154,969 2,646,709
Cash -- -- -- --
Foreign currency (cost $0; $0; $0; $0; $0; $0; $475,386;
$418,082; $80,807; $260,316; and $132,023, respectively) -- -- --
132,447
Receivable for investments sold 1,770,536 -- 127,461 925,105
Income receivables 813,126 67,539 104,690 39,266
Receivable for fund shares sold 434,805 696,330 136,625 74,168
Variation margin receivable 210,450 38,523 27,450 --
Deferred organizational costs -- 6,031 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 711,566,647 105,590,475 83,647,307 34,925,188
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 2,165,803 1,814,731 207,848 --
Payable for fund shares redeemed 1,510,574 82,975 9,940 10,431
Payable to GEIM 358,128 106,769 92,041 45,213
Current country taxes payable -- -- -- --
Defered country taxes payable -- -- -- --
Variation margin payable -- -- -- --
Payable to custodian -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,034,505 2,004,475 309,829 55,644
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $707,532,142 $103,586,000 $83,337,478 $34,869,544
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in 517,946,420 87,059,950 63,420,128 35,128,089
Undistributed (overdistributed) net investment income 3,080,697 207,970 83,542 89,119
2,907,036
Accumulated net realized gain (loss) 74,974,879 4,458,096 4,325,192 (1,708,621)
Net unrealized appreciation / (depreciation) on:
Investments 112,223,405 11,870,284 15,601,559 1,360,957
Futures (693,005) (10,300) (92,925) --
Foreign currency related transactions (254) -- (18) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $707,532,142 $103,586,000 $83,337,478 $34,869,544
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets 311,958,525 67,310,862 29,606,775 15,943,227
Shares outstanding ($.001 par value) 9,590,820 2,447,862 2,431,206 1,692,570
Net asset value per share 32.53 27.50 12.18 9.42
Maximum offering price per share 34.51 29.18 12.92 9.99
CLASS B:
Net assets 36,920,812 15,501,256 51,369,052 18,073,054
Shares outstanding ($.001 par value) 1,168,995 574,226 4,303,910 2,044,112
Net asset value per share* 31.58 27.00 11.94 8.84
CLASS C (LEVEL LOAD):
Net assets 70,000 70,000 70,000 70,000
Shares outstanding ($.001 par value) 2,217 2,594 5,863 7,919
Net asset value per share* 31.58 27.00 11.94 8.84
CLASS Y:
Net assets 358,582,805 20,703,882 2,291,651 783,263
Shares outstanding ($.001 par value) 11,041,723 750,125 179,854 78,494
Net asset value per share 32.48 27.60 12.74 9.98
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $571,463,018; $85,398,454;
$64,494,553; $29,878,983; $10,874,083; $21,119,509; $51,066,197;
$50,645,438; $10,585,929;
$11,689,824; and $151,867,151, respectively ) $10,672,321 $21,749,050 $61,296,405 $55,975,877
Short-term investments (at amortized cost) 309,819 1,803,640 465,330 1,000
Cash -- -- -- --
Foreign currency (cost $0; $0; $0; $0; $0; $0; $475,386;
$418,082; $80,807; $260,316; and $132,023, respectively) -- -- -- 475,558
132,447
Receivable for investments sold 14,432 126,075 3,539,924 188,618
Income receivables 70,035 18,559 145,800 142,969
Receivable for fund shares sold -- 70,307 122,260 417,515
Variation margin receivable -- -- -- --
Deferred organizational costs -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 11,066,607 23,767,631 66,045,277 57,147,979
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased -- 309,799 2,023,990 --
Payable for fund shares redeemed -- -- 64,970 560,617
Payable to GEIM 8,802 28,587 78,023 62,697
Current country taxes payable -- -- -- --
Defered country taxes payable -- -- -- --
Variation margin payable -- -- -- --
Payable to custodian -- -- -- 76,262
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 8,802 338,386 2,166,983 699,576
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $11,057,805 $23,429,245 $63,878,294 $56,448,403
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in 11,317,269 20,280,602 47,974,604 48,515,503
Undistributed (overdistributed) net investment income 64,371 24,228 (26,399) (61,286)
Accumulated net realized gain (loss) (122,073) 2,494,874 5,714,000 2,657,854
Net unrealized appreciation / (depreciation) on:
Investments (201,762) 629,541 10,230,208 5,330,439
Futures -- -- -- --
Foreign currency related transactions -- -- (14,119) 5,893
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $11,057,805 $23,429,245 $63,878,294 $56,448,403
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets 707,970 14,561,347 39,244,873 32,938,459
Shares outstanding ($.001 par value) 72,027 1,197,699 1,517,702 1,797,404
Net asset value per share 9.83 12.16 25.86 18.33
Maximum offering price per share 10.43 12.90 27.44 19.45
CLASS B:
Net assets 177,135 8,505,087 1,477,243 1,488,128
Shares outstanding ($.001 par value) 18,136 703,601 59,283 84,280
Net asset value per share* 9.77 12.09 24.92 17.66
CLASS C (LEVEL LOAD):
Net assets 70,000 70,000 70,000 70,000
Shares outstanding ($.001 par value) 7,165 5,790 2,809 3,964
Net asset value per share* 9.77 12.09 24.92 17.66
CLASS Y:
Net assets 10,102,700 292,811 23,086,178 21,951,816
Shares outstanding ($.001 par value) 1,026,869 24,038 893,318 1,190,159
Net asset value per share 9.84 12.18 25.84 18.44
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $571,463,018; $85,398,454;
$64,494,553; $29,878,983; $10,874,083; $21,119,509; $51,066,197;
$50,645,438; $10,585,929;
$11,689,824; and $151,867,151, respectively ) $10,541,243 $14,305,151 $178,530,659
Short-term investments (at amortized cost) 159,451 276,969 16,520,169
Cash -- -- --
Foreign currency (cost $0; $0; $0; $0; $0; $0; $475,386;
$418,082; $80,807; $260,316; and $132,023, respectively) 422,000 80,808 261,888
132,447
Receivable for investments sold 71,441 286,206 2,121,126
Income receivables 31,267 11,930 922,618
Receivable for fund shares sold 68,620 70,220 263,033
Variation margin receivable -- -- --
Deferred organizational costs -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 10,952,830 15,212,364 198,490,052
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 7,724 239,187 11,362,808
Payable for fund shares redeemed -- -- 827,179
Payable to GEIM 11,055 16,464 109,582
Current country taxes payable -- 37,280 --
Defered country taxes payable -- 73,628 --
Variation margin payable -- -- --
Payable to custodian -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 18,779 366,559 12,299,569
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS $10,934,051 $14,845,805 $186,190,483
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in 10,999,268 11,166,349 149,417,337
Undistributed (overdistributed) net investment income 42,349 (78,643) 2,907,036
Accumulated net realized gain (loss) (56,612) 1,217,934 7,203,386
Net unrealized appreciation / (depreciation) on:
Investments (44,686) 2,541,699 26,663,508
Futures -- -- --
Foreign currency related transactions 732 (1,534) (784)
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS $10,934,051 $14,845,805 $186,190,483
- -------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets 668,624 899,647 107,034,122
Shares outstanding ($.001 par value) 67,348 66,788 4,274,096
Net asset value per share 9.93 13.47 25.04
Maximum offering price per share 10.54 14.29 26.57
CLASS B:
Net assets 144,008 225,296 16,371,870
Shares outstanding ($.001 par value) 14,579 16,808 669,569
Net asset value per share* 9.88 13.40 24.45
CLASS C (LEVEL LOAD):
Net assets 70,000 70,000 70,000
Shares outstanding ($.001 par value) 7,085 5,185 2,863
Net asset value per share* 9.88 13.50 24.45
CLASS Y:
Net assets 10,051,419 13,650,862 62,714,491
Shares outstanding ($.001 par value) 1,010,800 1,011,661 2,498,345
Net asset value per share 9.94 13.49 25.10
<FN>
*Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
</FN>
</TABLE>
- ----------
See Notes to Financial Statements.
100 & 101
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
GE GE GE
FIXED GOVERNMENT SHORT-TERM GE
INCOME SECURITIES GOVERNMENT TAX-EXEMPT
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at market (cost $129,897,655;
$297,508,167; $25,395,882; $29,337,110; $21,422,442;
and $0, respectively ) $125,845,415 $292,849,867 $25,139,968 $28,882,587
Short-term investments (at amortized cost) 17,867,601 23,963,602 2,431,369 97,256
Receivable for investments sold 3,828,196 -- 2,264,533 --
Income receivables 1,451,658 5,067,439 226,857 531,225
Receivable for fund shares sold 83,002 43,759 92,413 70,780
Receivable from advisor -- -- -- 24,312
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 149,075,872 321,924,667 30,155,140 29,606,160
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders 84,801 276,572 14,349 15,195
Payable on forward currency contract -- -- -- --
Payable upon return of securities loaned -- 6,801,442 -- --
Payable for investments purchased 17,302,795 1,669,301 1,994,490 --
Payable for fund shares redeemed 311,911 129,085 1,172,100 --
Payable to GEIM 83,729 846,085 17,117 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 17,783,236 9,722,485 3,198,056 15,195
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $131,292,636 $312,202,182 $26,957,084 $29,590,965
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in 137,813,486 511,322,007 27,170,351 30,558,804
Undistributed (overdistributed)net investment income 260,617 (276,571) 21,673 76,821
Accumulated net realized gain (loss) (2,729,227) (194,184,954) 20,974 (590,136)
Net unrealized appreciation / (depreciation) on:
Investments (4,052,240) (4,658,300) (255,914) (454,524)
Foreign currency related transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $131,292,636 $312,202,182 $26,957,084 $29,590,965
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
Net assets 92,217,241 42,723,040 23,106,202 22,228,241
Shares outstanding ($.001 par value) 7,838,670 5,248,801 1,972,406 1,996,137
Net asset value per share 11.76 8.14 11.71 11.14
Maximum offering price per share 12.28 8.50 12.01 11.63
CLASS B:
Net assets 2,853,506 269,409,142 640,919 7,268,785
Shares outstanding ($.001 par value) 242,426 32,864,354 54,778 652,925
Net asset value per share* 11.77 8.20 11.70 11.13
CLASS C (LEVEL LOAD):
Net assets 70,000 70,000 70,000 70,000
Shares outstanding ($.001 par value) 5,947 8,537 5,983 6,289
Net asset value per share* 11.77 8.20 11.70 11.13
CLASS Y:
Net assets 36,151,889 -- 3,139,963 23,939
Shares outstanding ($.001 par value) 3,074,337 -- 268,191 2,068
Net asset value per share 11.76 -- 11.71 11.58
</TABLE>
<TABLE>
<CAPTION>
GE GE
HIGH MONEY
YIELD MARKET
FUND FUND**
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at market (cost $129,897,655;
$297,508,167; $25,395,882; $29,337,110; $21,422,442;
and $0, respectively ) $20,557,989 $ --
Short-term investments (at amortized cost) 1,511,797 195,395,139
Receivable for investments sold -- --
Income receivables 458,642 411,220
Receivable for fund shares sold 74,789 929,481
Receivable from advisor -- --
- ---------------------------------------------------------------------------------------------------
TOTAL ASSETS 22,603,217 196,735,840
- ---------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders 19,950 104,065
Payable on forward currency contract 16,854 --
Payable upon return of securities loaned -- --
Payable for investments purchased 272,807 --
Payable for fund shares redeemed -- 409,110
Payable to GEIM 12,438 67,366
- ---------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 322,049 580,541
- ---------------------------------------------------------------------------------------------------
NET ASSETS $22,281,168 $196,155,299
- ---------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in 23,322,619 196,105,050
Undistributed (overdistributed)net investment income 19,810 59,091
Accumulated net realized gain (loss) (180,490) (8,842)
Net unrealized appreciation / (depreciation) on:
Investments (864,453) --
Foreign currency related transactions (16,318) --
- ---------------------------------------------------------------------------------------------------
NET ASSETS $22,281,168 $196,155,299
- ---------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
Net assets 1,930,832 196,155,299
Shares outstanding ($.001 par value) 202,641 196,166,485
Net asset value per share 9.53 1.00
Maximum offering price per share 9.95 --
CLASS B:
Net assets 153,865 --
Shares outstanding ($.001 par value) 16,143 --
Net asset value per share* 9.53 --
CLASS C (LEVEL LOAD):
Net assets 70,000 --
Shares outstanding ($.001 par value) 7,345 --
Net asset value per share* 9.53 --
CLASS Y:
Net assets 20,126,471 --
Shares outstanding ($.001 par value) 2,111,476 --
Net asset value per share 9.53 --
<FN>
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** GE Money Market Fund is a no load fund offering only one class of shares
to all investors.
</FN>
</TABLE>
- ------
See Notes to Financial Statements.
102 & 103
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
GE GE GE GE
U.S. PREMIER GROWTH VALUE MID-CAP
EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends $ 7,850,483 $ 281,553 $1,047,610 $ 249,774
Interest 1,233,895 248,408 112,264 122,913
Less: Foreign taxes withheld (48,104) -- (6,008) (1,715)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 9,036,274 529,961 1,153,866 370,972
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees 2,639,031 392,543 427,255 226,763
Distribution fees (Note 10)
Class A 569,062 60,399 94,037 60,624
Class B 305,739 67,620 517,137 219,637
Class C 426,731 80,968 11,483 7,006
Blue Sky fees 44,554 31,710 34,763 33,698
Transfer agent fees 612,537 78,774 102,047 68,918
Trustees' fees 14,384 1,134 1,737 769
Custody and accounting expenses 145,533 23,138 27,937 17,336
Professional fees 202,177 16,081 24,359 10,653
Registration expenses 35,660 2,801 4,311 1,924
Amortization of deferred organization expense -- 2,821 -- --
Other expenses 131,789 10,552 15,850 6,857
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER 5,127,197 768,541 1,260,916 654,185
Less: Expenses waived or borne by
the adviser (137,157) (4,986) (8,803) (29,544)
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses 4,990,040 763,555 1,252,113 624,641
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 4,046,234 (233,594) (98,247) (253,669)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments 91,979,021 4,562,042 4,562,070 81,384
Futures 703,955 384,297 144,537 (183,925)
Written options -- -- -- --
Foreign currency related transactions (9,549) -- (3,894) (14)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments 45,728,985 8,665,127 12,085,012 5,146,055
Futures (687,581) (1,487) (113,663) 425
Written options -- -- -- --
Foreign currency related transactions (640) -- 2,027 --
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 137,714,191 13,609,979 16,676,089 5,043,925
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $141,760,425 $13,376,385 $16,577,842 $4,790,256
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND* FUND** FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends $ 117,830 $ 144,922 $ 876,865 $ 914,728
Interest 24,612 105,818 128,849 97,786
Less: Foreign taxes withheld -- -- (94,260) (114,356)
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 142,442 250,740 911,454 898,158
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees 67,241 135,264 430,835 420,497
Distribution fees (Note 10)
Class A 697 47,220 9,889 110,415
Class B 979 78,025 12,741 12,517
Class C 749 4,942 85,439 20,075
Blue Sky fees 20,000 20,000 32,588 33,167
Transfer agent fees 12,106 47,925 121,976 79,777
Trustees' fees 184 457 1,355 1,334
Custody and accounting expenses 10,443 15,732 24,068 23,280
Professional fees 2,645 6,378 18,943 18,565
Registration expenses 453 1,135 3,364 3,324
Amortization of deferred organization expense 50 -- -- 8,863
Other expenses 1,746 4,140 12,310 12,016
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER 117,293 361,218 753,508 743,830
Less: Expenses waived or borne by
the adviser (39,172) (57,123) (14,910) (23,259)
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 78,121 304,095 738,598 720,571
- ---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 64,321 (53,355) 172,856 177,587
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments (122,073) 2,634,906 5,927,427 3,014,869
Futures -- -- -- --
Written options -- -- -- --
Foreign currency related transactions -- -- (104,053) (104,709)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments (201,762) 629,541 10,668,035 8,426,194
Futures -- -- -- --
Written options -- -- -- --
Foreign currency related transactions -- -- (20,276) 23,479
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (323,835) 3,264,447 16,471,133 11,359,833
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(259,514) $3,211,092 $16,643,989 $11,537,420
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND*** FUND*** FUND
- --------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C>
Dividends $ 177,539 $ 86,918 $1,238,775
Interest 20,171 23,913 4,127,449
Less: Foreign taxes withheld (21,831) (10,760) (66,343)
- --------------------------------------------------------------------------------------------------------
TOTAL INCOME 175,879 100,071 5,299,881
- --------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees 72,259 103,321 611,538
Distribution fees (Note 10)
Class A 318 399 174,262
Class B 724 946 140,969
Class C 572 686 159,315
Blue Sky fees 19,917 19,917 33,894
Transfer agent fees 12,170 12,170 286,662
Trustees' fees 162 177 3,946
Custody and accounting expenses 9,013 9,124 48,481
Professional fees 2,323 2,547 55,376
Registration expenses 392 612 9,784
Amortization of deferred organization expense -- -- --
Other expenses 1,552 1,703 37,088
- --------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER 119,402 151,602 1,561,315
Less: Expenses waived or borne by
the adviser (35,207) (33,445) --
- --------------------------------------------------------------------------------------------------------
Net expenses 84,195 118,157 1,561,315
- --------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 91,684 (18,086) 3,738,566
- --------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments (56,612) 1,250,870 7,744,452
Futures -- -- (74,172)
Written options -- -- 77,677
Foreign currency related transactions (56,979) (101,105) (52,537)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments (44,686) 2,541,699 10,858,459
Futures -- -- --
Written options -- -- (737)
Foreign currency related transactions 732 (1,534) (2,100)
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (157,545) 3,689,930 18,551,042
- --------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (65,861) $3,671,844 $22,289,608
- --------------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** For the period September 30, 1998 (inception) through September 30, 1999.
*** For the period January 29, 1999 (inception) through September 30, 1999.
</FN>
</TABLE>
- ------
See Notes to Financial Statements.
104 & 105
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
GE GE GE GE
FIXED GOVERNMENT SHORT-TERM GE HIGH
INCOME SECURITIES GOVERNMENT TAX-EXEMPT YIELD
FUND FUND FUND FUND FUND*
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C> <C>
Dividends $ 92,191 $ -- $ -- $ -- $ --
Interest 7,893,215 25,698,112** 1,397,270 1,632,331 1,298,596
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 7,985,406 25,698,112 1,397,270 1,632,331 1,298,596
- ---------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees 461,197 1,483,393 77,782 107,280 94,653
Distribution fees (Note 10)
Class A 175,126 131,353 47,152 30,009 386
Class B 23,225 3,389,751 6,342 82,606 840
Class C 144,727 12,025 25,081 40,056 1,989
Blue Sky fees 29,985 36,278 32,960 33,501 20,000
Transfer agent fees 150,742 450,264 47,832 54,949 18,034
Trustees' fees 2,970 9,699 597 692 366
Custody and accounting expenses 39,947 91,367 16,464 18,132 12,409
Professional fees 41,792 134,800 8,352 9,701 5,261
Registration expenses 7,362 24,164 1,485 1,717 904
Amortization of deferred organization expense -- -- 8,863 -- --
Other expenses 28,276 88,831 5,417 7,336 3,475
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER 1,105,349 5,851,925 278,327 385,979 158,317
Less: Expenses waived or borne by
the adviser (38,513) (144,751) (83,078) (48,378) (45,089)
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,066,836 5,707,174 195,249 337,601 113,228
- ---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 6,918,570 19,990,938 1,202,021 1,294,730 1,185,368
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments (1,720,767) (4,261,858) 116,762 (161,812) (184,314)
Written options 163,015 459,307 -- -- --
Foreign currency related transactions (13) -- -- -- 23,634
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments (6,968,363) (25,796,543) (670,369) (1,896,136) (864,453)
Written options (1,934) (8,859) -- -- --
Foreign currency related transactions (29) -- -- -- (16,318)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (8,528,091) (29,607,953) (553,607) (2,057,948) (1,041,451)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS $(1,609,521) $(9,617,015) $ 648,414 $(763,218) $143,917
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE
MONEY
MARKET
FUND
- -----------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
INCOME:
Dividends $ --
Interest 8,850,392
- -----------------------------------------------------------------------
TOTAL INCOME 8,850,392
- -----------------------------------------------------------------------
EXPENSES:
Advisory and administration fees 436,186
Distribution fees (Note 10)
Class A --
Class B --
Class C --
Blue Sky fees 32,904
Transfer agent fees 250,900
Trustees' fees 4,010
Custody and accounting expenses 47,569
Professional fees 56,163
Registration expenses 9,960
Amortization of deferred organization expense --
Other expenses 36,509
- -----------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER 874,201
Less: Expenses waived or borne by
the adviser (20,979)
- -----------------------------------------------------------------------
Net expenses 853,222
- -----------------------------------------------------------------------
NET INVESTMENT INCOME 7,997,170
- -----------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments --
Written options --
Foreign currency related transactions --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments --
Written options --
Foreign currency related transactions --
- -----------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments --
- -----------------------------------------------------------------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS $7,997,170
- -----------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** Income attributable to security lending activity, net of rebate expenses, for the GE Government Securities Fund was $488,628.
</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
- ---------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998 30, 1999 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income/(loss) $4,046,234 $ 4,526,425 $ (233,594) $ 44,149 $(98,247) $ 77,791
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions 92,673,427 45,962,987 4,946,339 1,198,776 4,702,713 2,575,075
Net increase (decrease) in unrealized
appreciation/depreciation 45,040,764 (38,784,755) 8,663,640 1,054,296 11,973,376 139,963
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations 141,760,425 11,704,657 13,376,385 2,297,221 16,577,842 2,792,829
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (554,582) (481,181) -- -- (54,459) --
Class B (37,985) (32,171) -- -- -- --
Class C (1,040,599) (855,823) (21,376) (13,202) -- --
Class Y (3,032,762) (2,463,920) (24,596) (17,092) (12,937) --
Tax return of capital
Class A -- -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class Y -- -- -- -- -- --
Net realized gains
Class A (8,266,829) (5,530,158) (245,349) (32,269) (712,210) (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) -- (117,795)
Class Y (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 90,741,420 (25,701,044) 12,223,495 2,002,437 13,971,040 (13,640,150)
- ---------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A 57,506,537 39,908,081 15,693,055 5,068,340 23,306,671 7,573,642
Class B 13,686,463 9,344,808 13,025,352 1,665,872 6,646,123 8,084,776
Class C 48,866,502 39,694,037 30,507,072 8,332,734 5,287,366 2,734,074
Class C (level load) 70,000 -- 70,000 -- 70,000 --
Class Y 87,021,913 148,277,145 47,132,513 1,303,750 3,154,151 2,145,188
Value of distributions reinvested
Class A 8,822,976 6,011,339 245,318 32,272 639,827 2,501,541
Class B 1,987,603 1,323,764 69,002 11,511 1,723,554 13,405,062
Class C 12,199,432 9,238,804 556,529 140,941 122,575 117,795
Class Y 27,361,490 20,389,435 268,239 107,550 75,002 --
Cost of shares redeemed
Class A (38,044,646) (22,060,445) (6,210,407) (873,788)(19,256,429) (1,991,397)
Class B (3,827,603) (2,702,360) (384,886) (99,702)(11,457,926)(11,473,261)
Class C (26,060,350) (17,397,625) (3,387,295) (1,489,425) (942,565) (274,073)
Class Y (85,897,990) (83,986,003) (36,981,788) (342,129) (2,877,595) (578,798)
Value of shares redesignated (Note10)
Class A (133,574,732) -- (18,802,004) -- 7,595,717 --
Class C 133,574,732 -- 18,802,004 -- (7,595,717) --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions 103,692,327 148,040,980 60,602,704 13,857,926 6,490,754 22,244,549
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 194,433,747 122,339,936 72,826,199 15,860,363 20,461,794 8,604,399
NET ASSETS
Beginning of year 513,098,395 390,758,459 30,759,801 14,899,438 62,875,684 54,271,285
- ---------------------------------------------------------------------------------------------------------------------------------
End of year $707,532,142 $513,098,395 $103,586,000 $30,759,801 $83,337,478 $62,875,684
- ---------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT
INCOME, END OF YEAR $ 3,080,697 $3,710,271 $ 207,970 $ 106,765 $ 83,542 $ 173,039
</TABLE>
<TABLE>
<CAPTION>
GE
MID-CAP
GROWTH
FUND
- ------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER
30, 1999 30, 1998
- ------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C>
Net investment income/(loss) $ (253,669) $ (286,747)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions (102,555) (1,477,789)
Net increase (decrease) in unrealized
appreciation/depreciation 5,146,480 (5,051,237)
- ------------------------------------------------------------------------------
Net increase (decrease) from operations 4,790,256 (6,815,773)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A -- --
Class B -- --
Class C -- --
Class Y -- --
Tax return of capital
Class A -- (25,589)
Class B -- (73,996)
Class C -- (1,885)
Class Y -- --
Net realized gains
Class A -- (4,618,651)
Class B -- (13,413,646)
Class C -- (341,767)
Class Y -- --
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS -- (18,475,534)
- ------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions 4,790,256 (25,291,307)
- ------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A 15,816,615 2,242,341
Class B 1,278,017 3,303,026
Class C 2,134,797 2,724,759
Class C (level load) 70,000 --
Class Y 1,110,339 749,812
Value of distributions reinvested
Class A -- 4,628,103
Class B -- 13,080,553
Class C -- 343,652
Class Y -- --
Cost of shares redeemed
Class A (14,637,395) (1,094,533)
Class B (8,378,193) (8,646,813)
Class C (819,735) (662,619)
Class Y (842,798) (194,710)
Value of shares redesignated (Note10)
Class A 3,348,474 --
Class C (3,348,474) --
- ------------------------------------------------------------------------------
Net increase (decrease) from
share transactions (4,268,353) 16,473,571
- ------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 521,903 (8,817,736)
NET ASSETS
Beginning of year 34,347,641 43,165,377
- ------------------------------------------------------------------------------
End of year $34,869,544 $34,347,641
- ------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT
INCOME, END OF YEAR $ 89,119 $ 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 FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FOR THE
PERIOD ENDED PERIOD ENDED SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER PERIOD ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1999 30, 1999 30, 1998 30, 1999 30, 1998 SEPTEMBER 30, 1999
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 64,321 $ (53,355) $ 172,856 $ 136,320 $ 177,587 $ 100,619 $ 91,684
(122,073) 2,634,906 5,823,374 2,517,115 2,910,160 17,619,722 (113,591)
(201,762) 629,541 10,647,759 (9,215,341) 8,449,673 (21,297,740) (43,954)
- ---------------------------------------------------------------------------------------------------------
(259,514) 3,211,092 16,643,989 (6,561,906) 11,537,420 (3,577,399) (65,861)
- ---------------------------------------------------------------------------------------------------------
-- (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) --
(259,514) 3,132,880 14,365,307 (12,656,978) 9,854,789 (22,604,019) (65,861)
- ---------------------------------------------------------------------------------------------------------
260,465 33,698,178 1,185,815 621,999 23,567,324 15,760,753 109,592
189,794 24,885,336 482,336 440,879 451,153 917,197 146,344
680,786 2,586,142 4,277,279 3,978,342 7,656,574 1,841,361 568,691
70,000 70,000 70,000 -- 70,000 -- 70,000
33,017,910 278,087 5,962,663 7,111,585 81,372,385 52,750,459 20,512,200
-- 43,277 66,068 150,788 736,219 3,380,724 --
-- 29,257 50,665 99,333 38,196 106,474 --
-- 4,438 1,302,707 3,342,507 215,589 1,074,389 --
-- 683 804,025 2,384,063 687,713 14,343,411 --
(4,488) (23,451,422) (467,769) (522,162)(20,561,422) (14,299,215) --
-- (17,707,407) (349,174) (178,609) (153,506) (306,317) (51)
(181,317) (134,696) (6,110,317) (6,992,560) (6,910,555) (1,101,264) (6,864)
(22,715,831) (5,508) (3,616,436)(12,087,216)(79,809,601) (111,605,714)(10,400,000)
(247,930) (12,090,451) (2,709,574) -- (24,843,172) -- (110,008)
247,930 12,090,451 2,709,574 -- 24,843,172 -- 110,008
- ---------------------------------------------------------------------------------------------------------
11,317,319 20,296,365 3,657,862 (1,651,051) 7,360,069 (37,137,742) 10,999,912
- ---------------------------------------------------------------------------------------------------------
11,057,805 23,429,245 18,023,169 (14,308,029) 17,214,858 (59,741,761) 10,934,051
-- -- 45,855,125 60,163,154 39,233,545 98,975,306 --
- ---------------------------------------------------------------------------------------------------------
$11,057,805 $23,429,245 $63,878,294 $45,855,125 $56,448,403 $39,233,545 $10,934,051
- ---------------------------------------------------------------------------------------------------------
$ 64,371 $ 24,228 $ (26,399)$ (91,940)$ (61,286) $ (177,615) $ 42,349
</TABLE>
<TABLE>
<CAPTION>
GE GE
EMERGING STRATEGIC
MARKETS INVESTMENT
FUND*** FUND
- ----------------------------------------------
FOR THE YEAR ENDED YEAR ENDED
PERIOD ENDED SEPTEMBER SEPTEMBER
SEPTEMBER 30, 1999 30, 1999 30, 1998
- ----------------------------------------------
<S> <C> <C>
$ (18,086) $ 3,738,566 $ 3,327,326
1,149,765 7,695,420 12,605,986
2,540,165 10,855,622 (9,993,051)
- ----------------------------------------------
3,671,844 22,289,608 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)
3,671,844 6,336,795 (1,075,644)
- ----------------------------------------------
114,859 8,326,786 13,892,894
189,288 4,870,311 6,179,827
680,644 23,300,754 13,331,124
70,000 70,000 --
36,168,212 15,731,664 35,615,406
-- 3,366,398 2,157,656
-- 1,124,159 331,559
-- 5,427,453 2,232,380
-- 5,809,005 2,205,624
(9) (8,854,818) (22,533,547)
(398) (1,181,212) (984,281)
(7,265) (10,237,274) (6,507,447)
(26,041,370) (13,089,905) (23,511,013)
(151,399) (37,490,879) --
151,399 37,490,879 --
- ----------------------------------------------
11,173,961 34,663,321 22,410,182
- ----------------------------------------------
14,845,805 41,000,116 21,334,538
-- 145,190,367 123,855,829
- ----------------------------------------------
$14,845,805 $186,190,483 $145,190,367
- ----------------------------------------------
$ (78,643) $ 2,907,036 $ 2,557,260
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** For the period September 30, 1998 (inception) through September 30, 1999.
*** For the period January 29, 1999 (inception) through September 30, 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
- --------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998
- --------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
<S> <C> <C> <C> <C>
Shares sold 1,736,350 1,344,147 591,449 262,567
Issued for distributions reinvested 295,675 223,670 10,840 1,793
Shares redeemed (1,156,282) (751,831) (226,666) (43,151)
Shares redesignated (3,918,249) -- (672,983) --
- --------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (3,042,506) 815,986 (297,360) 221,209
- --------------------------------------------------------------------------------------------
CLASS B:
Shares sold 431,868 324,472 483,216 82,590
Issued for distributions reinvested 69,399 52,027 3,079 643
Shares redeemed (121,853) (94,240) (14,847) (4,985)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 379,414 282,259 471,448 78,248
- --------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold 1,526,641 1,354,049 1,148,329 404,093
Issued for distributions reinvested 416,077 349,552 24,527 7,816
Shares redeemed (816,120) (595,640) (130,952) (72,985)
Shares redesignated 3,980,888+ -- 669,969+ --
- --------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 5,107,486 1,107,961 1,711,873 338,924
- --------------------------------------------------------------------------------------------
CLASS Y:
Shares sold 2,688,715 4,892,297 1,755,080 66,412
Issued for distributions reinvested 936,717 774,086 11,802 5,965
Shares redeemed (2,700,838) (2,895,887) (1,386,491) (16,534)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 924,594 2,770,496 380,391 55,843
- --------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold 2,217 -- 2,594 --
- --------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
VALUE MID-CAP
EQUITY GROWTH
FUND FUND
- -----------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998
- -------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
<S> <C> <C> <C> <C>
Shares sold 1,955,637 750,562 1,561,898 226,004
Issued for distributions reinvested 57,746 269,272 -- 489,229
Shares redeemed (1,624,075) (189,310) (1,440,010) (107,318)
Shares redesignated 604,899 -- 344,777 --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 994,207 830,524 466,665 607,915
- -------------------------------------------------------------------------------------------
CLASS B:
Shares sold 560,010 769,421 139,605 331,551
Issued for distributions reinvested 158,124 1,461,859 -- 1,459,769
Shares redeemed (984,873) (1,076,407) (921,219) (852,340)
- -------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (266,739) 1,154,873 (781,614) 938,980
- -------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold 447,938 245,325 334,526 226,192
Issued for distributions reinvested 10,838 13,339 -- 36,751
Shares redeemed (100,254) (25,716) (200,410) (62,200)
Shares redesignated (591,470) -- (334,859) --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (232,948) 232,948 (200,743) 200,743
- -------------------------------------------------------------------------------------------
CLASS Y:
Shares sold 239,887 204,968 101,644 72,759
Issued for distributions reinvested 6,499 -- -- --
Shares redeemed (218,737) (52,763) (77,172) (18,737)
- -------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 27,649 152,205 24,472 54,022
- -------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold 5,863 -- 7,919 --
- -------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** For the period September 30, 1998 (inception) through September 30, 1999.
*** For the period January 29, 1999 (inception) through September 30, 1999.
+ Class C shares were renamed Class A as a result of the redesignation. See Note 10 of the Notes to Financial Statements.
</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 FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FOR THE
PERIOD ENDED PERIOD ENDED SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER PERIOD ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1999 30, 1999 30, 1998 30, 1999 30, 1998 SEPTEMBER 30, 1999
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
24,768 2,949,640 48,986 27,204 1,334,667 849,142 10,935
-- 3,803 3,004 7,432 44,756 204,348 --
(431) (1,975,102) (19,835) (24,111) (1,147,351) (784,389) --
(24,337) (978,341) (104,616) -- (1,353,542) -- (10,935)
- ------------------------------------------------------------------------------------------------------
-- -- (72,461) 10,525 (1,121,470) 269,101 --
- ------------------------------------------------------------------------------------------------------
18,136 2,198,692 20,327 18,635 26,476 52,960 14,584
-- 2,571 2,351 4,967 2,374 6,550 --
-- (1,497,662) (15,003) (8,038) (9,142) (17,677) (5)
- ------------------------------------------------------------------------------------------------------
18,136 703,601 7,675 15,564 19,708 41,833 14,579
- ------------------------------------------------------------------------------------------------------
65,504 233,146 175,894 169,269 427,459 99,589 57,157
-- 390 58,628 163,280 12,987 64,512 --
(17,755) (12,291) (260,820) (307,386) (386,521) (61,675) (727)
24,278+ 976,454+ 103,261+ -- 1,338,822+ -- 10,918+
- ------------------------------------------------------------------------------------------------------
72,027 1,197,699 76,963 25,163 1,392,747 102,426 67,348
- ------------------------------------------------------------------------------------------------------
3,042,212 24,419 244,044 304,658 4,815,998 2,982,399 2,010,800
-- 60 36,266 116,751 41,255 858,464 --
(2,015,343) (441) (149,704 (570,743) (4,679,403)(6,505,018) (1,000,000)
- ------------------------------------------------------------------------------------------------------
1,026,869 24,038 130,606 (149,334) 177,850 (2,664,155) 1,010,800
- ------------------------------------------------------------------------------------------------------
7,165 5,790 2,809 -- 3,964 -- 7,085
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
EMERGING STRATEGIC
MARKETS INVESTMENT
FUND*** FUND
- -------------------------------------------
FOR THE YEAR ENDED YEAR ENDED
PERIOD ENDED SEPTEMBER SEPTEMBER
SEPTEMBER 30, 1999 30, 1999 30, 1998
- ------------------------------------------
<S> <C> <C> <C>
11,173 331,745 566,785
-- 142,765 94,758
-- (353,840) (955,787)
(11,173) (1,481,299) --
- ------------------------------------------
-- (1,360,629) (294,244)
- ------------------------------------------
16,837 197,491 257,968
-- 48,393 14,710
(29) (48,091) (40,768)
- ------------------------------------------
16,808 197,793 231,910
- ------------------------------------------
56,204 924,935 540,921
-- 229,489 97,714
(573) (405,876) (267,511)
11,157+ 1,474,104+ --
- ------------------------------------------
66,788 2,222,652 371,124
- ------------------------------------------
3,035,431 630,397 1,414,703
-- 245,520 96,568
(2,023,770) (518,456) (940,177)
- ------------------------------------------
1,011,661 357,461 571,094
- ------------------------------------------
5,185 2,863 --
- ------------------------------------------
</TABLE>
111
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
GE GE
FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 6,918,570 $ 5,068,096 $19,990,938 $28,543,678
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions (1,557,765) 1,914,232 (3,802,551) 6,729,401
Net increase (decrease) in unrealized
appreciation/depreciation (6,970,326) 1,975,703 (25,805,402) 13,323,472
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations (1,609,521) 8,958,031 (9,617,015) 48,596,551
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,759,290) (1,446,282) (1,826,244) (1,482,314)
Class B (105,975) (74,005) (20,205,547) (24,576,037)
Class C (3,068,814) (2,279,994) (287,474) (19,806)
Class Y (2,028,088) (1,154,520) -- --
In excess of net investment income
Class A -- (48,982) (27,048) (137,534)
Class B -- (2,506) (299,260) (2,280,240)
Class C -- (77,218) (4,258) (1,838)
Class Y -- (39,101) -- --
Net realized gains
Class A -- -- -- --
Class B -- -- -- --
Class C -- -- -- --
Class Y -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (6,962,167) (5,122,608) (22,649,831) (28,497,769)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions (8,571,688) 3,835,423 (32,266,846) 20,098,782
- --------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A 16,074,155 24,826,414 18,299,359 5,748,451
Class B 1,661,775 454,176 1,564,140 1,975,186
Class C 25,941,359 18,055,834 8,984,911 1,072,103
Class C (level load) 70,000 -- 70,000 --
Class Y 32,062,979 22,825,479 -- --
Value of distributions reinvested
Class A 1,744,421 1,490,154 1,212,950 1,024,680
Class B 92,742 66,019 11,006,743 14,233,382
Class C 2,520,894 1,972,220 257,463 15,945
Class Y 2,015,869 1,189,393 -- --
Cost of shares redeemed
Class A (19,846,087) (10,689,227) (7,089,591) (7,282,931)
Class B (604,323) (130,035) (113,282,929) (158,884,041)
Class C (13,270,795) (7,139,096) (1,741,911) (144,030)
Class Y (25,598,559) (11,100,710) -- --
Value of shares redesignated (Note 10)
Class A (30,959,039) -- 8,088,932 --
Class C 30,959,039 -- (8,088,932) --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
share transactions 22,864,430 41,820,621 (80,718,865) (142,241,255)
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 14,292,742 45,656,044 (112,985,711) (122,142,473)
NET ASSETS
Beginning of year 116,999,894 71,343,850 425,187,893 547,330,366
- --------------------------------------------------------------------------------------------------------------------------------
End of year $131,292,636 $116,999,894 $312,202,182 $425,187,893
- --------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF YEAR $ 260,617 $ 304,228 $ (276,571) $ 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**
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FOR THE YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER PERIOD ENDED SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998 SEPTEMBER 30, 1999 30, 1999 30, 1998
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,202,021 $1,317,610 $1,294,730 $ 1,103,940 $ 1,185,368 $7,997,170 $ 6,311,997
116,762 208,995 (161,812) 314,282 (160,680) -- 491
(670,369) 242,914 (1,896,136) 87,364 (880,771) -- --
- -----------------------------------------------------------------------------------------------------------------------------
648,414 1,769,519 (763,218) 1,505,586 143,917 7,997,170 6,312,488
- -----------------------------------------------------------------------------------------------------------------------------
(419,703) (439,601) (271,001) (305,754) (5,379) (7,998,158) (6,311,997)
(30,624) (46,925) (307,436) (359,269) (5,478) -- --
(470,958) (385,296) (715,149) (404,359) (60,256) -- --
(283,959) (476,763) (1,147) (35,569) (1,114,255) -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
-- -- -- -- -- -- --
(38,417) (12,916) -- -- -- -- --
(3,579) (1,764) -- -- -- -- --
(37,788) (11,323) -- -- -- -- --
(32,682) (13,601) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
(1,317,710) (1,388,189) (1,294,733) (1,104,951) (1,185,368) (7,998,158) (6,311,997)
(669,296) 381,330 (2,057,951) 400,635 (1,041,451) (988) 491
- ---------------------------------------------------------------------------------------------------------------------------
3,527,565 1,913,508 749,798 323,984 140,749 368,131,388 249,769,855
295,325 139,431 603,787 519,672 171,010 -- --
6,646,546 3,768,403 12,388,023 3,461,252 1,949,270 -- --
70,000 -- 70,000 -- 70,000 -- --
1,694,190 2,038,639 -- 2 20,000,160 -- --
441,082 447,377 54,219 27,838 4,971 7,631,458 6,056,055
29,138 39,774 214,362 253,474 5,225 -- --
467,900 364,028 624,445 337,596 28,202 -- --
316,658 490,364 1,142 26,477 1,095,962 -- --
(1,686,423) (874,765) (294,952) (11,220,260) -- (333,271,857)(216,190,647)
(557,985) (327,201) (1,970,806) (2,153,769) (16,486) -- --
(2,909,386) (1,369,667) (6,244,697) (1,212,139) (126,444) -- --
(8,149,832) (934,445) (6) (3,234,639) --
(10,939,300) -- 16,384,881 -- (140,479) -- --
10,939,300 -- (16,384,881) -- 140,479 -- --
- -----------------------------------------------------------------------------------------------------------------------------
184,778 5,695,446 6,195,315 (12,870,512) 23,322,619 42,490,989 39,635,263
- -----------------------------------------------------------------------------------------------------------------------------
(484,518) 6,076,776 4,137,364 (12,469,877) 22,281,168 42,490,001 39,635,754
27,441,602 21,364,826 25,453,601 37,923,478 -- 153,665,298 114,029,544
- -----------------------------------------------------------------------------------------------------------------------------
$26,957,084 $27,441,602 $29,590,965 $25,453,601 $22,281,168 $196,155,299 $153,665,298
- -----------------------------------------------------------------------------------------------------------------------------
$ 21,673 $ 16,033 $ 76,821 $ 76,824 $ 19,810 $ 59,091 $ 60,209
<FN>
* For the period December 31, 1998 (inception) through September 30, 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
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998
- -----------------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
<S> <C> <C> <C> <C>
Shares sold by subscription 1,309,417 2,027,068 2,201,504 666,957
Issued for distributions reinvested 144,112 121,804 143,852 118,722
Shares redeemed (1,640,540) (874,272) (847,660) (843,431)
Shares redesignated (2,632,817) -- 992,629 --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares (2,819,828) 1,274,600 2,490,325 (57,752)
- -----------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold by subscription 137,143 36,886 181,816 228,535
Issued for distributions reinvested 7,685 5,393 1,290,547 1,645,646
Shares redeemed (50,180) (10,610) (13,346,412) (18,393,279)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 94,648 31,669 (11,874,049) (16,519,098)
- -----------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold by subscription 2,128,616 1,476,623 895,961 106,023
Issued for distributions reinvested 208,804 161,153 26,136 1,575
Shares redeemed (1,093,325) (583,721) (175,695) (14,221)
Shares redesignated 2,630,335+ -- (839,779) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 3,874,430 1,054,055 (93,377) 93,377
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold by subscription 2,627,378 1,861,485 -- --
Issued for distributions reinvested 166,900 97,133 -- --
Shares redeemed (2,117,582) (907,273) -- --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares 676,696 1,051,345 -- --
- -----------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD) (2):
Shares sold 5,947 -- 8,537 --
- -----------------------------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** GE Money Market Fund is a no load Fund offering only one class of shares to all
investors.
+ Class C shares were renamed Class A as a result of the redesignation. See Note 10 of the Notes to Financial Statements.
</FN>
</TABLE>
114
<PAGE>
<TABLE>
<CAPTION>
GE GE GE
SHORT-TERM GE HIGH MONEY
GOVERNMENT TAX-EXEMPT YIELD MARKET
FUND FUND FUND* FUND**
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FOR THE YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER PERIOD ENDED SEPTEMBER SEPTEMBER
30, 1999 30, 1998 30, 1999 30, 1998 SEPTEMBER 30, 1999 30, 1999 30, 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
298,453 161,494 65,078 27,965 14,219 368,126,450 249,769,855
37,352 37,766 4,762 2,387 505 7,630,908 6,056,055
(142,583) (73,896) (25,923) (968,784) -- (333,266,918) (216,190,647)
(934,532) -- 1,467,916 -- (14,724) -- --
- -----------------------------------------------------------------------------------------------------------------
(741,310) 125,364 1,511,833 (938,432) -- 42,490,440 39,635,263
- -----------------------------------------------------------------------------------------------------------------
24,906 11,782 51,615 44,630 17,336 -- --
2,467 3,358 18,557 21,736 532 -- --
(47,118) (27,658) (170,051) (184,662) (1,725) -- --
- -----------------------------------------------------------------------------------------------------------------
(19,745) (12,518) (99,879) (118,296) 16,143 -- --
- -----------------------------------------------------------------------------------------------------------------
563,042 318,037 1,014,919 285,575 198,263 -- --
39,627 30,702 52,155 27,838 2,898 -- --
(246,049) (115,358) (532,407) (99,769) (13,248) -- --
933,786+ -- (1,412,373) -- 14,728+ --
- -----------------------------------------------------------------------------------------------------------------
1,290,406 233,381 (877,706) 213,644 202,641 -- --
- -----------------------------------------------------------------------------------------------------------------
143,939 172,114 -- -- 2,000,016 -- --
26,772 41,521 95 2,197 111,460 -- --
(688,818) (78,863) -- (266,126) -- -- --
- -----------------------------------------------------------------------------------------------------------------
(518,107) 134,772 95 (263,929) 2,111,476 -- --
- -----------------------------------------------------------------------------------------------------------------
5,983 -- 6,289 -- 7,345 -- --
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
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"), although
only the following seventeen are currently being offered: GE U.S. Equity Fund,
GE Premier Growth Equity Fund, GE Value Equity 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. As of September 30, 1999,
only three classes were active, except for the GE Government Securities Fund,
which had only two classes active.
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 Equity 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 individual purchases of Class A
shares of $1 million or more. The front-end sales charge is also waived in other
instances as described in the Funds' prospectus. MAXIMUM CONTINGENT DEFERRED
SALES CHARGE IMPOSED ON REDEMPTIONS OF CLASS B SHARES (AS A PERCENTAGE OF
REDEMPTION PROCEEDS) WITHIN THE FIRST YEAR ARE:
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
charge for Class B redemptions for all Funds are as follows: within the second
year -- 3.00%; within the third year -- 2.00%; within the fourth year -- 1.00%
and within the fifth year and thereafter --0.00%.
The maximum contingent deferred sales charge 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 GE Funds 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.
Purchases of $1 million or more in Class A shares at net asset value are subject
to a 1.00% contingent deferred sales charge if redeemed within one year of
purchase.
No front-end or contingent deferred sales charges are assessed by the Trust with
respect to Class Y shares (formerly 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 at
the date of the financial statements. Actual results may differ from those
estimates.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
The following summarizes the significant accounting policies of the Trust:
SECURITY VALUATION AND TRANSACTIONS
Securities for which exchange (or NASDAQ) 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 matrix system, which considers market
transactions as well as dealer supplied valuations. Valuations for municipal
bonds are based on prices obtained from a qualified municipal bond pricing
service; such prices represent the mean of the bid and ask of the secondary
market. Short-term investments maturing within 60 days are valued at amortized
cost or original cost plus accrued interest, both of which approximate current
value. Fund positions that cannot be valued as set forth above are valued at
fair value determined in good faith 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.
Security transactions are accounted for as of the trade date. Realized gains and
losses on investments sold are recorded on the basis of identified cost for both
financial statement and federal tax purposes.
Each Fund's income, expenses (other than distribution fees) and realized and
unrealized gains and losses are allocated proportionally each day among the
classes based upon the relative net assets of each class.
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 102% of the repurchase price. In the event the
seller defaults and the value of the security declines, or if the seller enters
an insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
SECURITY LENDING
The Funds may loan securities to brokers, dealers, and financial institutions
determined by GE Investment Management Incorporated ("GEIM") to be creditworthy,
subject to certain limitations. The Funds receive compensation in the form of
fees in addition to the interest and dividends on the loaned securities during
the term of the loan. The loans of securities are secured by collateral in the
form of cash or other liquid assets, which are segregated and maintained with
the custodian in an amount at least equal to 102% of the current market value of
the loaned securities. During the term of the loan, the Funds will receive any
gain or loss in the market value of its loaned securities and of securities in
which cash collateral is invested net of any rebate. 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.
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
denominated in foreign currencies 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.
Net realized gains or losses on foreign currency transactions represent net
gains or losses on sales and maturities of foreign currency contracts,
disposition of foreign currencies, the difference between the amount of net
investment income and withholding taxes accrued and the U.S. dollar amount
actually received and paid, and gains or losses between the trade and settlement
date on purchases and sales of securities. Net unrealized foreign exchange gains
and losses arising from changes in the value of other assets and liabilities as
a result of changes in foreign exchange
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
rates are included as increases or decreases in unrealized
appreciation/depreciation on foreign currency related transactions.
FINANCIAL FUTURES CONTRACTS AND OPTIONS
Each of the Funds, other than GE Small-Cap Value Equity Fund and GE Money Market
Fund, may invest in financial futures contracts and each of the Funds, other
than GE Money Market Fund, may purchase and write options, subject to certain
limitations. The Funds may invest in futures and options contracts to manage
their exposure to the stock and bond markets and fluctuations in currency
values. 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. The Fund's risks in
using these contracts include changes in the value of the underlying
instruments, non-performance of the counterparties under the contracts' terms
and changes in the liquidity of secondary market for the contracts. Futures
contracts are valued at the settlement price established each day by the board
of trade or exchange on which they principally trade. Options are valued at the
last sale price, or if no sales occurred on that day, at the last quoted bid
price.
Upon entering into a financial futures contract, the Funds are required to
pledge to the broker an amount of cash and/or other assets equal to a certain
percentage of the contract amount, know as initial margin deposit. Subsequent
payments, known as variation margins, are made or received by the Funds each
day, depending on the daily fluctuation in the fair value of the underlying
security. The Funds record an unrealized gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the financial futures contracts and may
incur a loss. The Funds recognize a realized gain or loss on the expiration or
closing of a futures contract.
When a Fund writes an option, the amount of the premium received is recorded as
a liability and is subsequently adjusted to the current fair value of the option
written. Premiums received from writing options that expire unexercised are
treated by the Funds on the expiration date as realized gains from investments.
The difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or if the premium is less than the amount paid for the closing
purchase, as a realized loss. When an option is exercised, the proceeds from the
sale of the underlying security or the cost basis of the securities purchased is
adjusted by the original premium received or paid.
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. These transactions are arrangements in which the Funds purchase and sell
securities with payment and delivery scheduled a month or more after entering
into the transaction. 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. Losses may arise due to changes in the market value
of the underlying securities or if the counterparty does not perform under the
contract. 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.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Certain Funds may enter into forward foreign currency exchange contracts to
facilitate transactions in foreign denominated securities and to manage the
Fund's currency exposure. Forward foreign currency exchange contracts are valued
at the mean between the bid and the offered forward rates as last quoted by a
recognized dealer. The aggregate principal amounts of the contracts are not
recorded in the Fund's financial statements. Such amounts appear under the
caption forward foreign currency contracts in the Schedule of Investments.
Fluctuations in the value of the contracts are recorded in the Statement of
Assets and Liabilities as an asset (or liability) and in the Statement of
Operations as unrealized appreciation (depreciation) until
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
the contracts are closed, when they are recorded as realized foreign currency
related transactions gains or losses. The Fund's risks in using these contracts
include changes in the value of foreign currency or the possibility that the
counterparties do not perform under the contracts' terms. When a Fund enters
into a forward foreign currency exchange contract, it is required to segregate
cash or liquid securities with its custodian in an amount equal to the value of
the Fund's total assets committed to the consummation of the forward contract.
If the value of the segregated securities declines, additional cash or
securities is segregated so that the value of the account will equal the amount
of the Fund's commitment with respect to the contract.
INVESTMENTS IN FOREIGN MARKETS
Investments in foreign markets may involve special risks and considerations not
typically associated with investing in the United States. These risks include
revaluation of currencies, high rates of inflation, repatriation on income and
capital, and adverse political and economic developments. Moreover, securities
issued in these markets may be less liquid, subject to government ownership
controls, tariffs and taxes, subject to delays in settlements, and their prices
may be more volatile.
The GE Emerging Markets Fund may be subject to capital gains and repatriation
taxes imposed by certain countries in which it invests. At September 30, 1999,
the GE Emerging Markets Fund has recorded an accrual in the amount of $37,280
for capital gains taxes incurred, and a deferred tax accrual of $73,628 in
respect of unrealized appreciation on applicable investments in securities.
These accruals are included in net realized and unrealized gain (loss) on
investments in the Statements of Operations.
INCOME TAXES
The Funds intend to comply with all sections of the Internal Revenue Code
applicable to regulated investment companies including the distribution of
substantially all of their taxable net investment income, tax-exempt income, and
net realized capital gains to their shareholders. 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, 1999, 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 Tax-Exempt Fund $ 333,580 2004
GE Fixed Income Fund 182,527 2003
38,636 2004
445,270 2005
GE Government Securities Fund 78,123,796 2002
107,525,597 2003
1,748,819 2004
GE Money Market Fund 3,153 2003
5,688 2005
GE Mid-Cap Growth Fund 1,693,901 2007
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 incurred after October 31, 1998
as follows:
FUND CURRENCY CAPITAL
- --------------------------------------------------------------------------------
GE International Equity Fund $ 98,758 $ --
GE Global Equity Fund 93,760 --
GE U.S. Equity Fund 8,578 --
GE Value Equity Fund 319 --
GE Strategic Investment Fund 56,102 --
GE Tax-Exempt Fund -- 256,556
GE Fixed Income Fund 14 1,980,977
GE Government Securities Fund -- 6,418,299
GE Short-Term Government Fund -- 7,435
GE Mid-Cap Value Equity Fund -- 122,073
GE High Yield Fund -- 180,490
GEEurope Equity Fund 56,979 49,786
GE Emerging Markets Fund 101,105 --
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
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 in excess of capital loss carryforwards 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. 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.
INVESTMENT INCOME
Corporate actions (including cash dividends) are recorded on the ex-dividend
date, net of applicable withholding taxes, except for certain foreign corporate
actions which 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 GEIM, investment adviser to the
Funds and wholly-owned subsidiary of General Electric Company, and reimbursed by
the Funds.
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.
3. SECURITY LENDING
At September 30, 1999, the GE Government Securities Fund, which is the only fund
that participated in securities lending, had loaned securities having a value,
including accrued interest, of approximately $6,702,771 and received $6,801,442
and $91,485 in cash and letter of credit, respectively, as collateral for loans.
4. FEES AND COMPENSATION
PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION AND OTHER OPERATING 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 to the levels as
stated in the following schedule:
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND 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% .47%
GE International Equity Fund .80% .47%
GE Europe Equity Fund .90% .30%
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
ANNUALIZED BASED ON AVERAGE DAILY NET ASSETS
ADVISORY AND OTHER
ADMINISTRATION FEES* OPERATING EXPENSES*
- --------------------------------------------------------------------------------
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 .45% .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
were: prior to September 18, 1999, .50% for Class A shares, 1.00% for Class B
shares (except GE Short-Term Government Fund which was .85%) and .25% for Class
C shares. Subsequent to the close of business on September 17, 1999, the annual
rate for Class A shares was reduced to .25% (see Note 10 for additional
information). Currently Class Y shares are not subject to a 12b-1 fee.
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 become subject to the .25% 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 September 30, 1999, the Trust was informed that GEID acting
as underwriter received net commissions of $677,052 from the sale of Class A
shares and $297,460 in contingent deferred sales charges from redemptions of
Class A and Class B shares.
5. SUB-ADVISORY FEES
Pursuant to investment sub-advisory agreements with GEIM, Brown Brothers
Harriman & Co. ("Brown Brothers") is the sub-adviser to the GE Tax-Exempt Fund;
Palisade Capital Management, LLC ("Palisade") is the sub-adviser to the GE
Small-Cap Value Equity Fund; NWQ Investment Management Company ("NWQ") is the
sub-adviser to the GE Mid-Cap Value Equity Fund; and Miller Anderson & Sherrerd,
LLP ("MAS") is the sub-adviser to the GE High Yield Fund.
Brown Brothers, Palisade, 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 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.
6. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at September 30, 1999, were as follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $142,097,007 $29,873,602 $112,223,405
GE Premier Growth
Equity Fund 17,535,994 5,665,710 11,870,284
GE Value Equity Fund 19,080,667 3,479,108 15,601,559
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
- --------------------------------------------------------------------------------
GE Mid-Cap
Growth Fund 5,610,319 4,249,362 1,360,957
GE Mid-Cap Value
Equity Fund 1,496,457 1,698,219 (201,762)
GE Small-Cap Value
Equity Fund 2,189,863 1,560,322 629,541
GE Global Equity Fund 12,397,703 2,167,495 10,230,208
GE International
Equity Fund 8,128,516 2,798,077 5,330,439
GE Europe Equity Fund 884,492 929,178 (44,686)
GE Emerging
Markets Fund 3,528,498 913,171 2,615,327
GE Strategic
Investment Fund 32,776,592 6,113,084 26,663,508
GE Fixed Income Fund 173,635 4,225,875 (4,052,240)
GE Government
Securities Fund 6,291,100 10,949,400 (4,658,300)
GE Short-Term
Government Fund 4,519 260,433 (255,914)
GE Tax-Exempt Fund 286,537 741,061 (454,524)
GE High Yield Fund 230,047 1,094,500 (864,453)
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at September 30, 1999.
7. OPTIONS
During the period ended September 30, 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, 1998 2,940 $11,771 6,370 $ 25,412
Written 28,958 93,472 60,046 194,985
Closed and Expired (25,728) (84,060) (53,511) (175,986)
Exercised (6,170) (21,183) (12,905) (44,411)
- --------------------------------------------------------------------------------
Balance as of
September 30, 1999 -- $ -- -- $ --
- --------------------------------------------------------------------------------
GE GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
NUMBER
OF CONTRACTS PREMIUM
- --------------------------------------------------------------------------------
Balance as of September 30, 1998 14,900 $ 53,984
Written 184,932 591,397
Closed and Expired (157,347) (495,866)
Exercised (42,485) (149,515)
- --------------------------------------------------------------------------------
Balance as of September 30, 1999 -- $ --
- --------------------------------------------------------------------------------
8. INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of investments, other than
short-term securities and options, for the period ended September 30, 1999, were
as follows:
PURCHASES SALES
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $338,759,776 $292,203,207
GE Premier Growth
Equity Fund 71,738,102 16,018,460
GE Value Equity Fund 26,387,030 23,299,119
GE Mid-Cap Growth Fund 17,005,162 23,055,300
GE Mid-Cap Value
Equity Fund 12,808,918 1,812,761
GE Small-Cap Value
Equity Fund 52,417,224 33,932,865
GE Global Equity Fund 38,506,244 35,140,384
GE International
Equity Fund 32,224,132 25,508,342
GE Europe Equity Fund 15,446,770 4,764,377
GE Emerging Markets Fund 17,868,871 7,467,172
GE Strategic
Investment Fund 205,469,750 182,185,529
GE Fixed Income Fund 344,197,140 312,528,922
GE Government
Securities Fund 354,976,441 413,162,029
GE Short-Term
Government Fund 30,772,004 29,607,027
GE Tax-Exempt Fund 20,218,579 14,235,733
GE High Yield Fund 26,752,740 5,227,939
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1999
9. BENEFICIAL INTEREST
The number of shareholders each owning 5% or more of a Fund are listed below.
The total percentage of a Fund held by such shareholders as well as percentage
of a Fund held by certain directly and indirectly wholly-owned subsidiaries of
General Electric Company and their respective investment plans ("GE Affiliates")
at September 30, 1999 are:
5% OR GREATER SHAREHOLDERS % OF FUND HELD
-------------------------
NUMBER % OF FUND HELD BY GE AFFILIATES*
- ------------------------------------------------------------------
GE U.S. Equity Fund 2 18% 18%
GE Premier Growth
Equity Fund 2 16% 9%
GE Value Equity Fund 2 11% 6%
GE Mid-Cap Growth Fund 1 17% 17%
GE Mid-Cap Value Fund 1 91% 91%
GE Small-Cap Value
Equity Fund 2 61% 61%
GE Global Equity Fund 2 32% 17%
GE International
Equity Fund 4 43% 10%
GE Europe Equity Fund 1 92% 92%
GE Emerging
Markets Fund 1 92% 92%
GE Strategic
Investment Fund 2 19% 19%
GE Fixed Income Fund 3 20% 15%
GE Short-Term
Government Fund 3 38% 25%
GE Tax-Exempt Fund 2 24% 13%
GE High Yield Fund 1 90% 90%
GE Money Market Fund 1 15% --
The GE Moderate Strategy Fund, an open-ended management investment company
operating as a "fund of funds," that is advised by GEIM, also owned 5% or more
of the outstanding shares of certain funds.
Investment activities of these shareholders could have a material impact on the
Funds.
* INCLUDED IN THE 5% OR GREATER SHAREHOLDERS PERCENTAGE.
10. CAPITAL STOCK TRANSACTIONS
On June 11, 1999, the Board of Trustees of GE Funds approved a share class
redesignation (the "Redesignation") for each of the Funds, except the GE Money
Market Fund, effective at the close of business September 17, 1999. The
Redesignation combined each Fund's respective Class A and Class C shares into a
single class designated as Class A. For each of the Funds affected by the
Redesignation, except the GE Value Equity Fund, GE Mid-Cap Growth Fund, GE
Government Securities Fund and GE Tax-Exempt Fund, Class A shares were combined
into Class C shares and the combined Class C shares were renamed Class A shares.
For the GE Value Equity Fund, GE Mid-Cap Growth Fund, GE Government Securities
Fund and GE Tax-Exempt Fund, Class C shares were combined into Class A shares.
The Redesignation was completed to simplify the structure and increase the
operating efficiencies of the Funds. For tax purposes, the Redesignation results
in a non-taxable exchange of shares. At the same time, the Trustees approved a
reduction in the annual distribution and shareholder servicing fee rate for
Class A shareholders from 0.50% to 0.25%, effective September 18, 1999.
Additionally, Class D shares were renamed Class Y shares.
On September 30, 1999 a new class of shares, the Class C (level load) shares,
were created and offered for public sale effective October 1, 1999 by each of
the Funds (except the GE Money Market Fund). As of September 30, 1999 there had
been no activity in Class C (level load) shares other than the initial
investment. There is no front-end sales load imposed on individual purchases of
Class C (level load) shares. However, a maximum contingent deferred sales charge
of 1% is imposed on the redemption of Class C (level load) shares within the
first year of purchase. Class C (level load) shares pays GEID a monthly fee for
distribution and/or shareholder services provided, at an annual rate of 1.00% of
the average daily net assets of Class C (level load) shares.
123
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of GE Funds
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the funds constituting GE
Funds (the "Trust") at September 30, 1999, and the results of their operations,
the changes in their net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of investments owned at
September 30, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 12, 1999
124
<PAGE>
TAX INFORMATION, UNAUDITED
Of the dividends paid from net investment income by the GE Tax-Exempt Fund for
the tax period ended September 30, 1999, 98.47% represents exempt interest
dividends for Federal income tax purposes.
During the year ended September 30, 1999, the following GE Funds paid to
shareholders of record on December 8, 1998 the following long-term capital gain
dividends reported on Forms 1099-DIV for 1998.
FUND PER SHARE AMOUNT
- --------------------------------------------------------------------------------
GE U.S. Equity Fund $2.42509
GE Premier Growth Equity Fund 0.63722
GE Value Equity Fund 0.24364
GE Global Equity Fund 0.83598
GE International Equity Fund 0.00142
GE Strategic Investment Fund 1.80593
GE Short-Term Government Fund 0.04186
Please consult a tax adviser if you have any questions about federal or state
income tax laws or on how to prepare your tax returns. If you have specific
questions about your Fund account, please consult your investment representative
or call 1-800-242-0134.
125
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126
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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
Michael J. Tansley
ASSISTANT TREASURER
Michael M. D'Ambrosio
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
John J. Walker, 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, 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 Professional or GE Funds Shareholder Services at
1-800-242-0134.
Address inquiries regarding the Funds to: GE FUNDS
3003 SUMMER STREET
P.O. BOX 7900
STAMFORD, CT 06904-7900
Address requests regarding your account(s) to: GE FUNDS
P.O. BOX 219631
KANSAS CITY, MO 64141-9631
Overnight express mail Address: GE FUNDS
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
(816) 843-7335
CLASS Y INVESTORS: Contact your designated GE Investments
account representative
401(K) PLAN INVESTORS: Call your company's designated plan number.
WEBSITE: HTTP:/WWW.GE.COM/MUTUALFUNDS
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 70 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 (9/99) 903105
