GE FUNDS
ANNUAL REPORT
[GE LOGO OMITTED]
September 30, 2000
[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 VALUE EQUITY FUND ............................... 7
GE MID-CAP GROWTH FUND .............................11
GE MID-CAP VALUE EQUITY FUND .......................15
GE SMALL-CAP VALUE EQUITY FUND .....................18
GE S&P 500 INDEX FUND ..............................22
GE GLOBAL EQUITY FUND ..............................29
GE INTERNATIONAL EQUITY FUND .......................34
GE EUROPE EQUITY FUND ..............................39
GE EMERGING MARKETS FUND ...........................43
GE PREMIER GROWTH EQUITY FUND ......................48
GE PREMIER RESEARCH EQUITY FUND ....................51
GE PREMIER INTERNATIONAL EQUITY FUND ...............54
GE PREMIER VALUE EQUITY FUND .......................57
GE INCOME FUNDS ....................................60
O GE FIXED INCOME FUND
O GE GOVERNMENT SECURITIES FUND
O GE SHORT-TERM GOVERNMENT FUND
GE TAX-EXEMPT FUND .................................75
GE HIGH YIELD FUND .................................79
GE STRATEGIC INVESTMENT FUND .......................85
GE MONEY MARKET FUND ...............................95
NOTES TO PERFORMANCE ...............................97
NOTES TO SCHEDULES OF INVESTMENTS ..................98
FINANCIAL STATEMENTS
Financial Highlights ...............................99
Notes to Financial Highlights .....................117
Statements of Assets and Liabilities, Operations,
and Changes in Net Assets .........................118
NOTES
Notes to Financial Statements .....................134
REPORT OF INDEPENDENT ACCOUNTANTS ......................144
TAX INFORMATION ........................................145
GE FUNDS' INVESTMENT TEAM ..............................148
SHAREHOLDER INQUIRIES ....................INSIDE BACK COVER
HIGHLY RATED GE FUNDS
MORNINGSTAR RATINGS(TM)
THROUGH SEPTEMBER 30, 2000
NUMBER OF STAR
FUND/CLASS FUNDS IN ITS CLASS RATINGS
--------------------------------------------------------------------------------
GE U.S. EQUITY (DOMESTIC EQUITY)
------------------------------------------------------------------------------
OVERALL 3876
Class A, B & Y [star][star][star][star]
3 YEAR 3876
Class A, B & Y [star][star][star]
5 YEAR 2419
Class A, B & Y [star][star][star][star]
GE VALUE EQUITY (DOMESTIC EQUITY)
------------------------------------------------------------------------------
OVERALL 3876
Class A & B [star][star][star][star]
3 YEAR 3876
Class A & B [star][star][star]
5 YEAR 2419
Class A & B [star][star][star][star]
GE GLOBAL EQUITY (INTERNATIONAL EQUITY)
------------------------------------------------------------------------------
OVERALL 1175
Class A, B & Y [star][star][star][star]
3 YEAR 1175
Class A, B & Y [star][star][star][star]
5 YEAR 730
Class A, B & Y [star][star][star][star]
GE PREMIER GROWTH EQUITY (DOMESTIC EQUITY)
------------------------------------------------------------------------------
OVERALL & 3 YEAR 3876
Class A, B & Y [star][star][star][star]
GE SHORT TERM GOVERNMENT (TAXABLE BOND)
------------------------------------------------------------------------------
OVERALL 1741
Class A & B [star][star][star][star]
Class Y [star][star][star][star][star]
3 YEAR 1741
Class A & B [star][star][star][star]
Class Y [star][star][star][star][star]
5 YEAR 1300
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 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 on U.S.-domiciled funds reflect historical
risk-adjusted performance as of September 30, 2000. The ratings are subject to
change every month. Past performance is no guarantee of future results.
Morningstar ratings on U.S.-domiciled funds are calculated from the funds'
three-, five-, and 10-year average annual returns (if applicable) in excess of
90-day U.S. Treasury bill returns with appropriate fee adjustments, and a risk
factor that reflects fund performance below 90-day U.S. T-bill returns. The top
10% of the funds in a broad asset class receive 5 stars, the next 22.5% receive
4 stars, and the next 35% receive 3 stars. The funds were rated exclusively
against U.S.-domiciled funds. Ratings are for the share classes shown only,
other classes may vary.
Investment return and principal value 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.
--------------------------------------------------------------------------------
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:
I am pleased to provide you with the Annual Report for the GE Funds, for the
twelve months ended September 30, 2000. In this letter I would like to give you
an overview of some of the new products and ideas we have introduced since our
last report, fund highlights, an overview of the market and what we expect will
happen in the market over the course of the next few months. If you would like
detailed information about a particular fund's performance, please read the
portfolio manager commentary and fund specific data included in this report.
NEW FEATURES
As I mentioned in my letter that accompanied the semi-annual report sent to you
earlier this year, we improved our voice response system. Speech Recognition
capability was added, allowing you to get your account balance, change your PIN,
or request your statement over the telephone rather than waiting in a phone
queue for the answers you need. If you have not yet called in and used the new
program, I would encourage you to do so.
Our latest enhancements involve our Internet web sites. From the GE FINANCIAL
NETWORK, located at WWW.GEFN.COM/MUTUALFUNDS, you can access your account
information, check on your investments and download and print your quarterly GE
Funds statement - you no longer have to wait to receive your statement by mail.
In addition, the www.gefn.com web site contains information about obtaining
auto, life and disability insurance, a home mortgage or GE credit card, plus a
great deal more. The GE Center for Financial Learning, located at
WWW.FINANCIALLEARNING.COM offers a resource center complete with financial tools
and calculators, on-line courses, interactive workshops, a personal planner, and
a bookstore - all designed to help you meet a wide variety of personal financial
needs.
In other exciting news, on-line brokerage services will be made available in the
first quarter of next year. Customers will be able to invest in a variety of
various stocks, bonds and mutual funds through GE's brokerage service. Watch for
more information in the coming months!
FUND HIGHLIGHTS
The GE STRATEGIC INVESTMENT FUND was named by MUTUAL FUNDS MAGAZINE as one of
the top 100 mutual funds in its May, 2000 issue. This honor recognizes the value
inherent in Strategic Investment's neutral, or balanced, asset allocation
strategy. The strategy allows the portfolio management team to select the
securities they believe will offer the best return, without being limited to
holding a specific percent in particular sectors. For more information on this
Fund or any other GE Fund, you can download a prospectus from our web site or
call 800-242-0134 to request a copy.
In addition to the good news about the GE Strategic Investment Fund, Standard &
Poor's awarded its Select Fund designation to GE VALUE EQUITY FUND and GE U.S.
EQUITY FUND. The award acknowledges the Funds' performance track records as well
as their consistent management over the last three years. In its presentation,
S&P stated that GE Value Equity Fund earned this designation because of its
consistent high performance and experienced and skilled management team, which
has demonstrated an ability to identify undervalued companies. The GE U.S.
Equity Fund was noted for its consistent performance and management team, as
well as for demonstrating an ability to create a style-neutral portfolio from a
successful, established process.
We are very pleased with these honors and believe that they highlight our
investment management goal of realizing consistent above average returns, while
maintaining appropriate levels of risk for our investors.
MARKET OVERVIEW
The U.S. economy continued its strength into the third quarter of the year as
unemployment figures reached a new low of 3.9% and worker productivity levels
continued to rise. The Federal Reserve Board's interest rate increases over the
past 18 months began to take effect as signs of inflation diminished and the
U.S. economy appeared to be heading for a soft landing. U.S. stock markets were
hard hit
[PHOTO OF MICHAEL J. COSGROVE OMITTED]
1
<PAGE>
A LETTER FROM THE PRESIDENT (CONTINUED)
during the second quarter of the year as the NASDAQ composite index fell 355
points, or over 30% in one day. The NASDAQ did regain much of its losses in June
and into the third quarter, however, it still finished down 9.74% for the
one-year period ended September 30, 2000. The Dow Jones Industrial Average and
the S&P 500 Index also closed the year down, finishing at -1.39% and -6.31%,
respectively. The positive news from the major indices was that the market had
regained some breadth after having been narrowly focused on technology stocks
for so long. Utility stocks, financials, capital goods, and energy stocks all
performed well during the third quarter.
The Federal Reserve Board declined to increase interest rates at its last
meeting, meeting market expectations. The bond market reacted favorably as
interest rates lowered across the maturity spectrum, producing a positive total
return for the U.S. Treasury sector.
MARKET OUTLOOK
As we enter the fourth quarter of the year, we believe there are four areas of
concern for the economy and the markets. The first is the November presidential
elections, with concern about future spending by the U.S. Government being
raised, since both candidates have made promises that will impact the surplus,
and could cause the country to go back to a deficit position. The second concern
is the ability of the Federal Reserve Board to hold interest rates steady. The
Board's bias thus far has been toward tightening rates, and looks to continue
that way, given the tight labor market and potential inflation effect of higher
energy costs. The third concern came into play during September as a number of
large companies, roughly 30% of the DJIA, reported earnings misses -- meaning
that they would not meet their earnings estimates for the year. The fourth area
is rising energy costs. The price of oil reached a ten-year high of $37 a barrel
as the third quarter ended. If weather forecasters are correct in predicting a
very cold winter, then oil and gas consumption will be heavy and could result in
higher prices. Higher energy prices would also affect corporate earnings, since
the cost of doing business for many companies would be negatively impacted.
With all of these uncertainties in the market, we continue to believe that our
investment strategy of stock picking, and not indexing, is the key determinant
of who will be successful going forward and who will not. We will continue to
look for investment opportunities with high-quality companies that have
strategic vision and strong earnings potential. We plan to position our
portfolios in a neutral posture going forward in order to take advantage of
investment opportunities as they arise. We would suggest that our investors look
to balance their portfolios, based upon their tolerance levels and risk profiles
in order to make the most of the earning power in their portfolios.
Thank you for your continued investment with GE Funds. We look forward to
continuing to serve your financial needs and encourage you to log on to
WWW.GEFN.COM/MUTUALFUNDS to take advantage of the many opportunities offered by
the GE Financial Network.
Sincerely,
/s/Michael J. Cosgrove
Michael J. Cosgrove
CHAIRMAN, GE FUNDS
OCTOBER 16, 2000
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 ASSET
MANAGEMENT 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
<PAGE>
GE U.S. EQUITY FUND
Q&A
GENE BOLTON IS RESPONSIBLE FOR THE OVERALL MANAGEMENT OF THE U.S. EQUITY
OPERATION AT GE ASSET MANAGEMENT WITH TOTAL ASSETS OF APPROXIMATELY $34 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 ASSET MANAGEMENT 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 ASSET MANAGEMENT. 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.
[PHOTO OF GENE BOLTON OMITTED]
Q. HOW DID THE GE U.S. EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE U.S. Equity Fund posted a return of 12.10% for the Class A Shares,
11.29% for the Class B Shares, 11.25% for the Class C Shares and 12.38% for
the Class Y Shares for the one-year period ended September 30, 2000, while
the Standard & Poor's 500 Composite Price Index returned 13.24% for the same
period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK FOR THE ONE-YEAR PERIOD ENDED
SEPTEMBER 30, 2000?
A. The Fund underperformed the benchmark because of an underweighting in
technology and due to the continued decline in consumer cyclical stocks amid
a moderation in economic growth. Financial, consumer stable, energy, and
capital goods were strong sectors for the Fund and helped contribute
positively to performance.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL? WHICH HAVE NOT PERFORMED WELL?
A. On an annual basis, the Fund's strategy is outperforming the S&P 500 Index
by more than 1.00%. Several sectors have helped performance including
financial, consumer stable, energy, and capital goods. The financial sector
has just recently rebounded to post very strong returns in the third quarter
of 2000, helping to offset lackluster results early on in the year. The
consumer stable sector has done well primarily due to the strong performance
of healthcare stocks. Energy has also been a strong sector due to positive
demand/supply characteristics around oil and the production and refining of
this commodity. Another positive sector over the annual period was capital
goods. Recently capital goods stocks have pulled back because of several
disappointing earnings pre-announcements due to the moderation in economic
growth both in the United States and abroad.
The technology sector delivered strong double-digit returns over the period.
However, our concerns over valuations resulted in an underweighting of the
sector. In addition, the consumer cyclical sector has been hit hard amid
concerns of an economic slowdown with retailers, restaurants, broadcasting,
and entertainment stocks all under pressure.
Q. WHAT HAS BEEN GOING ON IN THE U.S. EQUITY MARKETS?
A. Volatility has been the one constant in the U.S. equity markets over the
past year. After stellar gains in the fourth quarter of 1999, the first
three quarters of 2000 have been very volatile. The first quarter of 2000
performed quite well with a very strong January and February, however, March
proved to be the beginning of a re-valuation of the U.S. equity markets. A
number of technology stocks were priced to perfection and the March through
May period corrected some of the excesses.
The U.S. equity markets certainly did not earn a gold medal in the third
quarter of 2000. In fact, the S&P 500 finished down 1.0% in the quarter,
placing the index seventh out of 33 FT/S&P All-World Indices measured in
U.S. dollars. The silver lining is that the U.S. position improved from 18th
place in 1999, perhaps indicating that the U.S. markets provide a relative
"safe" haven in times of slowing global economic conditions.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. With the Fund broadly diversified in high-quality, reasonably valued stocks,
we believe it is well positioned for the volatility that we expect for the
remainder of the year. We are committed to investing in high quality
managements that have the experience and resources to manage their
businesses in times of moderating economic conditions.
3
<PAGE>
GE U.S. EQUITY FUND
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TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Citigroup Inc. 4.24%
--------------------------------------------------------------------------------
Merck & Co. Inc. 2.71%
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Exxon Mobil Corp. 2.59%
--------------------------------------------------------------------------------
Microsoft Corp. 2.58%
--------------------------------------------------------------------------------
Intel Corp. 2.50%
--------------------------------------------------------------------------------
Cardinal Health Inc. 2.05%
--------------------------------------------------------------------------------
Cisco Systems Inc. 1.91%
--------------------------------------------------------------------------------
SBC Communications Inc. 1.90%
--------------------------------------------------------------------------------
Fannie Mae 1.79%
--------------------------------------------------------------------------------
First Data Corp. 1.77%
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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 9/30/00
One Five
Year Year
------- -------
Number of
Funds in
peer group: 365 169
Peer group
average annual
total return: 10.60% 16.71%
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+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE U.S. Equity GE U.S. Equity w/load S&P 500
2/22/93 10,000.00 9,425.00 10,000.00
10,519.58 9,917.30 10,215.80
9/93 11,032.38 10,400.76 10,531.82
10,701.37 10,088.69 10,365.39
9/94 11,129.16 10,491.98 10,920.02
11,991.38 11,304.84 11,979.63
9/95 14,118.31 13,310.00 14,166.68
15,797.66 14,893.21 15,825.89
9/96 16,758.61 15,799.16 17,047.17
18,560.23 17,497.63 18,960.87
9/97 23,422.39 22,081.43 23,948.59
26,873.73 25,335.17 28,069.47
9/98 24,739.00 23,323.11 26,131.98
31,294.61 29,502.94 33,274.27
9/99 31,615.33 29,805.30 33,398.05
36,083.96 34,018.08 39,318.96
9/00 35,439.60 33,410.62 37,820.44
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ---------
GE U.S. Equity 12.10% 20.21% 18.10%
GE U.S. Equity w/load
(maximum load-5.75%) 5.66% 18.79% 17.19%
S&P 500 13.24% 21.70% 19.11%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 9,618.62
9/94 9,990.57 9,990.57 10,133.30
10,728.90 10,728.90 11,116.57
9/95 12,579.81 12,579.81 13,146.06
14,022.58 14,022.58 14,685.73
9/96 14,816.93 14,816.93 15,819.02
16,345.27 16,345.27 17,594.85
9/97 20,558.50 20,558.50 22,223.24
23,492.61 23,492.61 26,047.23
9/98 21,545.00 21,545.00 24,249.33
27,153.91 27,153.91 30,877.06
9/99 27,326.98 27,326.98 30,991.92
32,103.31 32,103.31 36,486.26
9/00 31,530.04 31,530.04 35,095.70
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ---------
GE U.S. Equity 11.29% 19.31% 18.47%
GE U.S. Equity w/load 7.33% 19.31% 18.47%
(maximum load) 4.00% 0.00% 0.00%
S&P 500 13.24% 21.70% 20.36%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE U.S. Equity GE U.S. Equity w/load S&P 500
10/1/99 10,000.00 10,000.00 10,000.00
10/99 10,528.82 10,528.82 10,636.00
11/99 10,652.31 10,652.31 10,851.91
12/99 11,171.89 11,171.89 11,491.09
01/00 10,727.88 10,727.88 10,912.05
02/00 10,337.58 10,337.58 10,710.07
03/00 11,372.41 11,272.41 11,772.83
04/00 11,171.89 11,073.09 11,399.04
05/00 11,182.63 11,083.74 11,165.82
06/00 11,150.41 11,051.80 11,438.93
07/00 11,007.18 10,909.84 11,256.37
08/00 11,619.48 11,519.48 11,955.39
09/00 11,125.34 11,026.96 11,324.15
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE U.S. Equity 11.25% 11.25%
GE U.S. Equity w/load 10.27% 10.27%
(maximum load) 1.00% 1.00%
S&P 500 13.24% 13.24%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE U.S. Equity S&P 500
11/29/93 10,000.00 10,000.00
9,696.21 9,737.32
9/94 10,096.06 10,258.34
10,889.12 11,253.75
9/95 12,835.67 13,308.28
14,388.82 14,866.95
9/96 15,270.71 16,014.23
16,937.04 17,811.97
9/97 21,403.88 22,497.47
24,582.47 26,368.65
9/98 22,658.00 24,548.57
28,694.05 31,258.08
9/99 29,033.73 31,374.36
33,171.20 36,936.50
9/00 32,627.07 35,528.78
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ---------
GE U.S. Equity 12.38% 20.51% 18.88%
S&P 500 13.24% 21.70% 20.37%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4
<PAGE>
GE U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE U.S. EQUITY FUND
[GE U.S. EQUITY FUND PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TECHNOLOGY 19.1%
FINANCIAL 18.5%
CONSUMER STABLE 17.5%
CONSUMER CYCLICAL 11.0%
CAPITAL GOODS 8.2%
ENERGY 8.0%
CASH & OTHER* 7.6%
UTILITIES 6.8%
BASIC MATERIALS 2.2%
TRANSPORTATION 1.1%
*INCLUDES CASH EQUALIZED BY FUTURES OF 5.0%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 92.4%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 2.2%
Airgas Inc. ....................... 21,494 $ 146,428(a)
Barrick Gold Corp. ................ 131,351 2,003,103
Bowater Inc. ...................... 40,599 1,885,316
Du Pont de Nemours (E.I.) & Co. ... 47,764 1,979,221
International Paper Co. ........... 35,823 1,027,672
Newmont Mining Corp. .............. 161,204 2,740,468
PPG Industries Inc. ............... 29,853 1,184,791
Rayonier Inc. ..................... 40,002 1,437,572
The Dow Chemical Co. .............. 35,823 893,336
Weyerhaeuser Co. .................. 119,410 4,821,178
18,119,085
CAPITAL GOODS -- 8.2%
Boeing Co. ........................ 64,482 4,062,366
Deere & Co. ....................... 45,376 1,508,752
Dover Corp. ....................... 266,643 12,515,556(h)
Eaton Corp. ....................... 34,032 2,097,222
Emerson Electric Co. .............. 123,828 8,296,476
General Dynamics Corp. ............ 32,241 2,025,138
Honeywell International Inc. ...... 69,258 2,467,316(h)
Ingersoll-Rand Co. ................ 45,375 1,537,078
Martin Marietta Materials Inc. .... 50,152 1,919,819
Molex Inc. (Class A) .............. 188,668 7,817,930
Parker-Hannifin Corp. ............. 44,182 1,491,142
Textron Inc. ...................... 156,547 7,220,730
United Technologies Corp. ......... 195,048 13,507,074
Waste Management Inc. ............. 10,726 187,035
66,653,634
CONSUMER - CYCLICAL -- 11.0%
Adelphia Communications
Corp. (Class A) ................ 8,359 230,395(a)
AT&T Corp. - Liberty Media
Group (Class A) ................ 397,633 7,157,394(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Carnival Corp. .................... 52,540 $ 1,293,798
Catalina Marketing Corp. .......... 130,754 4,919,619(a)
Comcast Corp. (Class A) ........... 198,221 8,114,672(a)
Costco Wholesale Corp. ............ 25,076 876,093(a)
CVS Corp. ......................... 117,021 5,419,535
Gannett Co. Inc. .................. 99,110 5,252,830
Home Depot Inc. ................... 122,992 6,526,263
Interpublic Group Cos. Inc. ....... 194,638 6,629,857
Knight-Ridder Inc. ................ 39,406 2,002,317
Lowes Cos. Inc. ................... 124,186 5,572,847
McDonald's Corp. .................. 209,565 6,326,243
NTL Inc. .......................... 111,349 5,156,851(a)
Target Corp. ...................... 275,240 7,053,025
The Walt Disney Co. ............... 262,225 10,030,106(h)
Wal-Mart Stores Inc. .............. 146,874 7,068,311
89,630,156
CONSUMER - STABLE -- 17.5%
Abbott Laboratories ............... 145,083 6,900,510
American Home Products Corp. ...... 39,405 2,228,845(h)
Amgen Inc. ........................ 63,287 4,419,213(a)
Anheuser Busch Cos. Inc. .......... 51,346 2,172,578(h)
Avon Products Inc. ................ 28,658 1,171,396
Bestfoods ......................... 27,464 1,998,006
Bristol-Myers Squibb Co. .......... 159,878 9,133,031
Cardinal Health Inc. .............. 189,266 16,690,895(h)
Colgate-Palmolive Co. ............. 15,284 721,405
Dentsply International Inc. ....... 33,435 1,168,135
Eli Lilly & Co. ................... 80,006 6,490,487
Energizer Holdings Inc. ........... 94,334 2,311,183(a)
General Mills Inc. ................ 50,152 1,780,396
Gillette Co. ...................... 107,469 3,318,105
Heinz (H.J.) Co. .................. 29,853 1,106,427
Henry Schein Inc. ................. 54,332 1,083,244(a)
Johnson & Johnson ................. 113,559 10,667,449
Lincare Holdings Inc. ............. 72,840 2,089,598(a)
Medtronic Inc. .................... 14,926 773,353
Merck & Co. Inc. .................. 296,137 22,043,698(h)
PE Corp. - PE Biosystems Group .... 13,036 1,518,694
Pepsico Inc. ...................... 242,402 11,150,492
Pfizer Inc. ....................... 299,122 13,441,795
Pharmacia Corp. ................... 50,152 3,018,523
Philip Morris Cos. Inc. ........... 48,003 1,413,088
Procter & Gamble Co. .............. 14,354 961,718
Ralston-Ralston Purina Group ...... 137,321 3,252,791
Schering Plough Corp. ............. 96,722 4,497,573
Sybron International Corp. ........ 96,722 2,321,328(a)
The Quaker Oats Co. ............... 21,494 1,700,713
Watson Pharmaceuticals Inc. ....... 13,136 852,198(a)
142,396,867
ENERGY -- 8.0%
Anadarko Petroleum Corp. .......... 45,376 3,015,689
Baker Hughes Inc. ................. 60,899 2,260,875
BP Amoco PLC ADR .................. 28,658 1,518,874
Burlington Resources Inc. ......... 79,217 2,916,176
Calpine Corp. ..................... 15,524 1,620,318(a)
Chevron Corp. ..................... 28,658 2,443,094
Conoco Inc. (Class B) ............. 125,380 3,377,424
Exxon Mobil Corp. ................. 237,112 21,132,607(h)
Halliburton Co. ................... 63,236 3,094,612
Nabors Industries Inc. ............ 96,721 5,068,180(a)
Royal Dutch Petroleum Co. ADR ..... 95,529 5,725,769
--------
See Notes to Schedules of Investments and Financial Statements.
5
<PAGE>
GE U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Schlumberger Ltd. ................. 106,462 $ 8,763,153
Texaco Inc. ....................... 10,747 564,218
Unocal Corp. ...................... 71,646 2,538,955
USX-Marathon Group ................ 51,346 1,456,943
65,496,887
FINANCIAL -- 18.5%
AFLAC Inc. ........................ 14,329 917,952
American Express Co. .............. 104,484 6,347,403
American International
Group Inc. ..................... 124,097 11,874,532
Associates First Capital Corp.
(Class A) ...................... 137,919 5,240,922
Bank of America Corp. ............. 156,427 8,192,864
Bank One Corp. .................... 38,211 1,475,900
Berkshire Hathaway Inc. (Class B) . 940 1,945,800(a)
Chase Manhattan Corp. ............. 114,634 5,294,658
Chubb Corp. ....................... 59,705 4,724,158
Citigroup Inc. .................... 638,645 34,526,745
Countrywide Credit
Industries Inc. ................ 20,897 788,862
Fannie Mae ........................ 203,355 14,539,882
Fidelity National Financial Inc. .. 44,567 1,103,033
FleetBoston Financial Corp. ....... 138,516 5,402,124
Goldman Sachs Group Inc. .......... 23,882 2,721,055
Hartford Financial Services
Group Inc. ..................... 71,646 5,225,680
J.P. Morgan & Co. Inc. ............ 8,955 1,463,023
Lehman Brothers Holdings Inc. ..... 50,032 7,392,228
Loews Corp. ....................... 18,509 1,543,188
Marsh & McLennan Cos. Inc. ........ 32,002 4,248,266
MetLife Inc. ...................... 49,371 1,292,903(a)
Morgan Stanley, Dean
Witter & Co. ................... 119,112 10,891,304
PNC Financial Services Group ...... 93,139 6,054,035
St. Paul Cos. Inc. ................ 46,570 2,296,483
State Street Corp. ................ 29,256 3,803,280(e)
U.S. Bancorp. ..................... 56,123 1,276,798
150,583,078
TECHNOLOGY -- 19.1%
Analog Devices Inc. ............... 100,133 8,267,231(a)
Applied Materials Inc. ............ 106,036 6,289,260(a)
Automatic Data Processing Inc. .... 129,202 8,640,384
Cisco Systems Inc. ................ 281,211 15,536,908(a)
Compaq Computer Corp. ............. 40,599 1,119,720
Dell Computer Corp. ............... 300,913 9,271,882(a)
EMC Corp. ......................... 120,963 11,990,457(a)
Equifax Inc. ...................... 360,589 9,713,366
First Data Corp. .................. 368,977 14,413,164
Intel Corp. ....................... 489,581 20,348,210
International Business
Machines Corp. ................. 40,599 4,567,388
Microsoft Corp. ................... 348,263 21,004,612(a)
Motorola Inc. ..................... 72,182 2,039,142
Nortel Networks Corp. ............. 131,350 7,823,534
PerkinElmer Inc. .................. 13,971 1,458,223
Sun Microsystems Inc. ............. 41,794 4,879,450(a)
Tellabs Inc. ...................... 88,363 4,219,333(a)
Texas Instruments Inc. ............ 83,587 3,944,262
155,526,526
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TRANSPORTATION -- 1.1%
AMR Corp. ......................... 66,989 $ 2,189,703(a)
Burlington Northern
Santa Fe Corp. ................. 4,356 93,926
Canadian Pacific Ltd. ............. 112,245 2,918,370
Continental Airlines Inc.
(Class B) ...................... 32,241 1,464,951(a)
Delta Air Lines Inc. .............. 47,765 2,119,572
8,786,522
UTILITIES -- 6.8%
AT&T Wireless Group ............... 23,882 498,537(a)
Dominion Resources Inc. ........... 16,717 970,631
Duke Energy Corp. ................. 62,690 5,375,667
Dynegy Inc. (Class A) ............. 26,270 1,497,390
El Paso Energy Corp. .............. 75,228 4,635,925
Enron Corp. ....................... 21,494 1,883,412
Global Crossing Ltd. .............. 75,228 2,332,068(a)
NEXTLINK Communications
Inc. (Class A) ................. 51,346 1,806,737(a)
Qwest Communications
International Inc. ............. 145,083 6,973,052(a)
SBC Communications Inc. ........... 309,869 15,493,450
Southern Energy Inc. .............. 14,327 449,510(a)
Verizon Communications ............ 143,292 6,940,706
Vodafone Group PLC ADR ............ 108,065 3,998,405
Xcel Energy Inc. .................. 87,170 2,397,175
55,252,665
TOTAL INVESTMENTS IN SECURITIES
(COST $614,392,411) ............ 752,445,420
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.9%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund ...............31,070,492 31,070,492
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
TIME DEPOSIT -- 0.1%
State Street Cayman Islands
6.563% 10/02/00 ............. $485,000 485,000
TOTAL SHORT-TERM INVESTMENTS
(COST $31,555,492) ............ 31,555,492
OTHER ASSETS AND LIABILITIES,
NET 3.7% ...................... 30,411,010
------------
NET ASSETS-- 100% ................ $814,411,922
============
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long futures
contracts open at September 30, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE DEPRECIATION
--------------------------------------------------------------------------------
S&P 500 December 2000 111 $40,340,175 $(635,582)
-----------
See Notes to Schedules of Investments and Financial Statements.
6
<PAGE>
GE VALUE EQUITY FUND
Q&A
PETER J. HATHAWAY IS THE PORTFOLIO MANAGER FOR THE GE VALUE EQUITY FUND. HE IS
CURRENTLY A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT AND MANAGES EQUITY
ASSETS OF APPROXIMATELY $9 BILLION. PETE HAS MORE THAN 37 YEARS OF INVESTMENT
EXPERIENCE AND HAS HELD POSITIONS WITH GE ASSET MANAGEMENT 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 PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Value Equity Fund posted a return of 11.35% for Class A Shares,
10.44% for Class B Shares, 10.53% for Class C Shares and 11.56% for Class Y
Shares for the one-year period ended September 30, 2000, while the Standard
& Poor's 500/Barra Value Composite Price Index returned 13.76% for the same
period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK FOR THE ONE-YEAR PERIOD ENDED
SEPTEMBER 30, 2000?
A. Our performance lagged the benchmark because our technology holdings did not
keep pace with the holdings in the benchmark, despite an overweighting. The
benchmark returned in excess of 43% while the Fund returned just 20%. In
addition, financials did well during this period where the benchmark
returned 33% however the Fund was underweight financials despite solid stock
selection which returned more than 42% during the period.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL? WHICH HAVE NOT PERFORMED WELL?
A. Six of nine sectors in the S&P 500/Barra Value Index earned positive
returns. On a stock selection basis, we outperformed the S&P 500/Barra Value
Index in five sectors: capital goods, consumer cyclicals, transportation,
utilities, and financials. Specific stocks that did well included Molex,
Walt Disney, El Paso Energy, and Morgan Stanley Dean Witter to name just a
few.
Areas that detracted from performance included technology, where Unisys and
Motorola fell more than 75% and 42%, respectively, over the period. Again,
although our stock performance in the financial sector was very strong, the
Fund's underweight had a negative impact on the Fund's performance.
Q. HOW HAS THE VOLATILITY IN THE MARKET IMPACTED THE FUND?
A. Volatility over the past twelve months has been a consistent theme in the
U.S. equity markets. In particular, the market certainly did not earn a gold
medal in the most recent third quarter of 2000. In fact, the S&P 500 Index
finished down 1.0% in the quarter, placing the Index seventh out of 33
FT/S&P All-World Indices measured in U.S. dollars. In September, the broader
averages, including the S&P 500 Index and the Dow Jones Industrials, both
posted declines in excess of 5.0% while the NASDAQ gave back an 11% gain in
August with a more than 13% decline. These market indices have posted mixed
results on a year-to-date basis in 2000 with the S&P 500 Index now down
1.5%, the Dow Jones Industrials down 6.55%, and the NASDAQ down 9.7%.
Interestingly, this is the first negative nine-month performance for the S&P
500 Index since 1994.
The continuation of the roller coaster volatility in performance for the
broader averages is really the confluence of several factors including
energy prices, the Euro currency, U.S. corporate earnings, and the U.S.
Presidential election -- the "4 E's" as some equity strategists have
remarked. In addition, the Federal Reserve's monetary policy of raising
interest rates six times or 175 basis points over the past 18 months has
provided the backdrop for a global economic slowdown, following a blistering
pace of GDP growth in the U.S.
during 1999.
In terms of the Fund, we continue to own those companies that are
underappreciated relative to their earnings growth and their peers. We are
buying stocks that have a catalyst to unlock the intrinsic value over the
next three to four years. We look at volatility, or swings in the markets,
as opportunities to scale buy or scale sell those stocks that become,
respectively, undervalued or overvalued relative to the market and to their
peers. We are committed to finding those companies with excellent management
who can execute their business strategy in difficult market conditions.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We continue to expect the stock market to be volatile amid a moderate
economic slowdown. We maintain our focus on fundamental research and stock
selection, and plan to maintain the valuation discipline that has rewarded
us over the years. We remain focused on finding under-appreciated stocks
with a catalyst for investment over the next three to four years. We believe
the portfolio is positioned for solid relative performance in this
environment.
[PHOTO OF PETER J. HATHAWAY OMITTED]
7
<PAGE>
GE VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Citigroup Inc. 3.31%
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2.96%
--------------------------------------------------------------------------------
Merck & Co. Inc. 2.53%
--------------------------------------------------------------------------------
Microsoft Corp. 2.53%
--------------------------------------------------------------------------------
Intel Corp. 2.36%
--------------------------------------------------------------------------------
SBC Communications Inc. 2.30%
--------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 2.07%
--------------------------------------------------------------------------------
United Technologies Corp. 1.90%
--------------------------------------------------------------------------------
Cisco Systems Inc. 1.44%
--------------------------------------------------------------------------------
Fannie Mae 1.43%
--------------------------------------------------------------------------------
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 9/30/00
One Five
Year Year
------ ------
Number of Funds
in peer group: 365 169
Peer group
average annual
total return: 10.60% 16.71%
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++
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE RUSSELL 1000
<S> <C> <C> <C> <C>
9/8/93 10,000.00 9,425.00 10,000.00 10,000.00
9,573.86 9,023.37 9,710.11 9,639.65
9/94 9,925.18 9,354.48 10,050.64 9,946.33
10,731.37 10,114.31 10,936.61 10,718.19
9/95 12,288.84 11,582.23 12,833.89 12,698.33
13,491.08 12,715.34 14,537.21 14,309.44
9/96 14,770.05 13,920.77 15,226.76 14,977.25
16,253.70 15,319.11 16,962.23 16,893.04
9/97 20,647.82 19,460.57 21,195.09 21,313.61
23,729.39 22,364.95 24,167.98 24,863.84
9/98 21,858.00 20,601.48 21,156.16 22,081.64
27,331.79 25,752.31 25,552.22 26,117.31
9/99 27,834.55 26,226.02 25,698.62 26,215.41
31,479.72 29,660.54 28,068.43 27,772.11
9/00 30,993.92 29,202.81 29,233.17 28,510.98
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ----- -----------
GE Value Equity 11.35% 20.32% 17.37%
GE Value Equity w/load 4.97% 18.92% 16.39%
(maximum load-5.75%)
S&P 500/Barra Value 13.76% 17.90% 16.40%
Russell 1000 Value 8.76% 17.56% 15.98%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE RUSSELL 1000
<S> <C> <C> <C> <C>
9/8/93 10,000.00 10,000.00 10,000.00 10,000.00
9,555.57 9,555.57 9,710.11 9,639.65
9/94 9,873.06 9,873.06 10,050.64 9,946.33
10,625.67 10,625.67 10,936.61 10,718.19
9/95 12,139.56 12,139.56 12,833.89 12,698.33
13,268.08 13,268.08 14,537.21 14,309.44
9/96 14,461.66 14,461.66 15,226.76 14,977.25
15,862.84 15,862.84 16,962.23 16,893.04
9/97 20,078.03 20,078.03 21,195.09 21,313.61
23,007.23 23,007.23 24,167.98 24,863.84
9/98 21,146.00 21,146.00 21,156.16 22,081.64
26,358.96 26,358.96 25,552.22 26,117.31
9/99 26,785.19 26,785.19 25,698.62 26,215.41
30,178.69 30,178.69 28,068.43 27,772.11
9/00 29,581.81 29,581.81 29,233.17 28,510.98
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ----- ----------
GE Value Equity 10.44% 19.50% 16.60%
GE Value Equity w/load 6.44% 19.50% 16.60%
(maximum load) 4.00% 0.00% 0.00%
S&P 500/Barra Value 13.76% 17.90% 16.40%
Russell 1000 Value 8.76% 17.56% 15.98%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE RUSSELL 1000
<S> <C> <C> <C> <C>
9/30/99 10,000.00 10,000.00 10,000.00 10,000.00
10/99 10,569.51 10,569.51 10,564.50 10,575.60
11/99 10,661.64 10,661.64 10,502.17 10,492.90
12/99 11,115.40 11,115.40 10,896.74 10,543.58
1/00 10,625.14 10,625.14 10,550.00 10,199.65
2/00 10,232.94 10,232.94 9,890.84 9,441.81
3/00 11,275.85 11,175.85 10,922.16 10,593.81
4/00 11,097.57 10,997.57 10,849.09 10,470.50
5/00 11,115.40 11,015.40 10,882.94 10,580.44
63/00 11,053.00 10,953.00 10,453.06 10,096.91
7/00 10,954.95 10,854.95 10,662.23 10,223.12
8/00 11,543.26 11,443.26 11,377.66 10,792.55
9/00 11,053.00 10,953.00 11,375.38 10,875.65
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ --------
GE Value Equity 10.53% 10.53%
GE Value Equity w/load 9.53% 9.53%
(maximum load) 1.00% 1.00%
S&P 500/Barra Value 13.76% 13.76%
Russell 1000 Value 8.76% 8.76%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE VALUE EQUITY S&P 500/BARRA VALUE RUSSELL 1000
<S> <C> <C> <C>
1/5/98 10,000.00 10,000.00 10,000.00
03/98 11,240.00 11,155.33 11,166.49
6/98 11,540.00 11,213.06 11,216.69
09/98 10,380.19 9,765.15 9,916.99
12/98 12,447.54 11,467.64 11,563.74
3/99 12,999.61 11,794.26 11,729.43
6/99 14,082.91 13,067.40 13,052.23
9/99 13,270.43 11,861.83 11,773.49
12/99 14,782.74 12,925.53 12,413.47
3/00 15,036.66 12,955.68 12,472.61
6/00 14,771.70 12,399.25 11,887.59
9/00 14,804.82 12,493.29 12,804.44
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ --------
GE Value Equity 11.56% 15.41%
S&P 500/Barra Value 13.76% 11.57%
Russell 1000 Value 8.76% 9.45%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
8
<PAGE>
GE VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE VALUE EQUITY FUND
[GE VALUE EQUITY FUND PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
GE VALUE EQUITY FUND
FINANCIAL 19.0%
TECHNOLOGY 18.1%
CONSUMER STABLE 16.7%
UTILITIES 9.3%
CONSUMER CYCLICAL 9.3%
CAPITAL GOODS 8.6%
ENERGY 8.1%
CASH & OTHER 6.1%*
BASIC MATERIALS 3.2%
TRANSPORTATION 1.6%
*INCLUDES CASH EQUALIZED BY FUTURES OF 3.5%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 93.9%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 3.2%
Avery Dennison Corp. .............. 2,124 $ 98,501
Barrick Gold Corp. ................ 23,365 356,316
Bowater Inc. ...................... 7,219 335,232
Du Pont de Nemours (E.I.) & Co. ... 8,495 352,012
International Paper Co. ........... 6,378 182,969
Newmont Mining Corp. .............. 18,054 306,918
PPG Industries Inc. ............... 5,312 210,820
Praxair Inc. ...................... 1,062 39,692
Rayonier Inc. ..................... 7,115 255,695
Westvaco Corp. .................... 5,415 144,513
Weyerhaeuser Co. .................. 17,628 711,730
Willamette Industries Inc. ........ 1,168 32,704
3,027,102
CAPITAL GOODS -- 8.6%
Boeing Co. ........................ 11,469 722,547
Cooper Industries Inc. ............ 3,398 119,780
Deere & Co. ....................... 4,246 141,180
Dover Corp. ....................... 16,841 790,474(h)
Eaton Corp. ....................... 6,053 373,016
Emerson Electric Co. .............. 17,587 1,178,329(h)
General Dynamics Corp. ............ 5,735 360,230
Honeywell International Inc. ...... 6,797 242,143(h)
Illinois Tool Works Inc. .......... 1,274 71,185
Ingersoll-Rand Co. ................ 8,071 273,405
Martin Marietta Materials Inc. .... 8,923 341,572
Molex Inc. (Class A) .............. 8,495 352,012
Parker-Hannifin Corp. ............. 7,858 265,207
Sherwin-Williams Co. .............. 3,611 77,185
Textron Inc. ...................... 20,390 940,489
United Technologies Corp. ......... 25,636 1,775,293
8,024,047
CONSUMER - CYCLICAL -- 9.3%
AT&T Corp. - Liberty Media
Group (Class A) ................ 7,859 141,462(a)
Catalina Marketing Corp. .......... 4,458 167,732(a)
Comcast Corp. (Class A) ........... 13,593 556,464(a)
Costco Wholesale Corp. ............ 4,460 155,821(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
CVS Corp. ......................... 7,647 $ 354,152
Delphi Automotive Systems Corp. ... 7,859 118,867
Eastman Kodak Co. ................. 1,274 52,075
Gannett Co. Inc. .................. 11,045 585,385
Home Depot Inc. ................... 10,195 540,972
Interpublic Group Cos. Inc. ....... 13,829 471,050
Knight-Ridder Inc. ................ 7,009 356,145
Lowes Cos. Inc. ................... 14,442 648,085
McDonald's Corp. .................. 25,700 775,819
McGraw Hill Cos. Inc. ............. 2,124 135,007
Omnicom Group Inc. ................ 1,061 77,387
Target Corp. ...................... 36,110 925,319(h)
The Walt Disney Co. ............... 31,052 1,187,739
Tricon Global Restaurants Inc. .... 1,274 39,016(a)
TRW Inc. .......................... 767 31,159
Viacom Inc. (Class B) ............. 1,912 111,852(a)
Wal-Mart Stores Inc. .............. 26,146 1,258,276(h)
8,689,784
CONSUMER - STABLE -- 16.7%
Abbott Laboratories ............... 8,496 404,091(h)
Amgen Inc. ........................ 7,009 489,425(a)
Anheuser Busch Cos. Inc. .......... 9,132 386,398(h)
Avon Products Inc. ................ 3,398 138,893
Baxter International Inc. ......... 3,185 254,203
Bestfoods ......................... 4,885 355,384
Bristol-Myers Squibb Co. .......... 16,992 970,668(h)
Cardinal Health Inc. .............. 13,170 1,161,429
Colgate-Palmolive Co. ............. 2,974 140,373
Eli Lilly & Co. ................... 11,682 947,702
Energizer Holdings Inc. ........... 13,379 327,786(a)
General Mills Inc. ................ 8,922 316,731
Gillette Co. ...................... 5,310 163,946
Heinz (H.J.) Co. .................. 5,310 196,802
Johnson & Johnson ................. 11,469 1,077,369
Keebler Foods Co. ................. 1,911 80,262
Kimberly Clark Corp. .............. 4,035 225,203
Medtronic Inc. .................... 2,653 137,459
Merck & Co. Inc. .................. 31,859 2,371,504
PE Corp. - PE Biosystems Group .... 2,316 269,814
Pepsico Inc. ...................... 25,275 1,162,650(h)
Pfizer Inc. ....................... 21,876 983,053
Pharmacia Corp. ................... 9,034 543,734
Procter & Gamble Co. .............. 9,983 668,861
Ralston-Ralston Purina Group ...... 24,426 578,591
Schering Plough Corp. ............. 17,204 799,986
Sysco Corp. ....................... 5,735 265,602
The Quaker Oats Co. ............... 1,912 151,287
15,569,206
ENERGY -- 8.1%
BP Amoco PLC ADR .................. 5,097 270,141
Burlington Resources Inc. ......... 9,558 351,854
Chevron Corp. ..................... 5,097 434,519
Conoco Inc. (Class B) ............. 22,302 600,760
Exxon Mobil Corp. ................. 31,052 2,767,510
Halliburton Co. ................... 11,257 550,890
Nabors Industries Inc. ............ 9,768 511,843(a)
Royal Dutch Petroleum Co. ADR ..... 10,621 636,596
Schlumberger Ltd. ................. 4,673 384,646
Texaco Inc. ....................... 1,912 100,380
Tosco Corp. ....................... 5,521 172,186
Transocean Sedco Forex Inc. ....... 1,850 108,456
-----------
See Notes to Schedules of Investments and Financial Statements.
9
<PAGE>
GE VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Unocal Corp. ...................... 12,744 $ 451,616
USX-Marathon Group ................ 9,134 259,177
7,600,574
FINANCIAL -- 19.0%
AFLAC Inc. ........................ 1,699 108,842
Allstate Corp. .................... 4,248 147,618
American Express Co. .............. 13,171 800,138
American International
Group Inc. ..................... 11,024 1,054,859
Associates First Capital
Corp. (Class A) ................ 16,779 637,602
AXA-UAP ........................... 1,161 151,853
Bank of America Corp. ............. 21,240 1,112,445
Bank of New York Inc. ............. 2,807 157,367
Bank One Corp. .................... 1,062 41,020
BlackRock Inc. (Class A) .......... 7,647 244,704(a)
Chase Manhattan Corp. ............. 13,168 608,197
Chubb Corp. ....................... 7,009 554,587
Citigroup Inc. .................... 57,376 3,101,890
Comerica Inc. ..................... 3,186 186,182
Edwards A.G. Inc. ................. 3,901 204,071
Fannie Mae ........................ 18,691 1,336,406
Fidelity National Financial Inc. .. 14,401 356,425
FleetBoston Financial Corp. ....... 15,506 604,734
Franklin Resources Inc. ........... 2,940 130,624
Goldman Sachs Group Inc. .......... 4,248 484,007
Hartford Financial Services
Group Inc. ..................... 12,744 929,516
J.P. Morgan & Co. Inc. ............ 1,592 260,093
Lehman Brothers Holdings Inc. ..... 6,814 1,006,768
Merrill Lynch & Co. Inc. .......... 850 56,100
MetLife Inc. ...................... 2,760 72,278(a)
Morgan Stanley, Dean
Witter & Co. ................... 21,187 1,937,286
PNC Financial Services Group ...... 13,806 897,390
St. Paul Cos. Inc. ................ 8,284 408,505
Torchmark Corp. ................... 1,273 35,405
Waddell & Reed Financial
Inc. (Class A) ................. 5,523 171,213
17,798,125
TECHNOLOGY -- 18.1%
Analog Devices Inc. ............... 11,683 964,578(a)
Applied Materials Inc. ............ 10,474 621,239(a)
Automatic Data Processing Inc. .... 8,284 553,993
BMC Software Inc. ................. 2,548 48,731(a)
Cisco Systems Inc. ................ 24,320 1,343,680(a,h)
Compaq Computer Corp. ............. 1,487 41,011
Computer Sciences Corp. ........... 1,062 78,854(a)
Dell Computer Corp. ............... 33,984 1,047,132(a)
EarthLink Inc. .................... 2,124 19,382(a)
EMC Corp. ......................... 7,649 758,207(a)
Equifax Inc. ...................... 21,665 583,601
First Data Corp. .................. 26,550 1,037,109
Intel Corp. ....................... 53,100 2,206,969
International Business
Machines Corp. ................. 7,223 812,587
Microsoft Corp. ................... 39,292 2,369,799(a)
Motorola Inc. ..................... 10,832 306,004
Nokia Oyj ADR ..................... 1,168 46,501
Nortel Networks Corp. ............. 16,992 1,012,086
PerkinElmer Inc. .................. 3,611 376,898
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Pitney Bowes Inc. ................. 14,445 $ 569,675
SCI Systems Inc. .................. 2,124 87,084(a)
Sun Microsystems Inc. ............. 7,434 867,919(a)
Synopsys Inc. ..................... 2,549 96,543(a)
Tellabs Inc. ...................... 11,045 527,399(a)
Texas Instruments Inc. ............ 12,530 591,259
16,968,240
TRANSPORTATION -- 1.6%
AMR Corp. ......................... 9,345 305,465(a)
Canadian Pacific Ltd. ............. 19,968 519,168
Continental Airlines Inc.
(Class B) ...................... 5,748 261,175(a)
Delta Air Lines Inc. .............. 8,495 376,965
1,462,773
UTILITIES -- 9.3%
Constellation Energy Group ........ 5,947 295,863
Dominion Resources Inc. ........... 2,974 172,678
Duke Energy Corp. ................. 11,152 956,284
Dynegy Inc. (Class A) ............. 4,662 265,734
El Paso Energy Corp. .............. 13,381 824,604
FPL Group Inc. .................... 637 41,883
Global Crossing Ltd. .............. 13,381 414,811(a)
Montana Power Co. ................. 2,124 70,889
NEXTLINK Communications
Inc. (Class A) ................. 2,124 74,738(a)
PECO Energy Co. ................... 2,548 154,313
Qwest Communications
International Inc. ............. 19,752 949,330(a)
SBC Communications Inc. ........... 43,120 2,156,000
Southern Co. ...................... 637 20,663
Southern Energy Inc. .............. 2,548 79,944(a)
Sprint Corp. ...................... 16,990 498,019
Verizon Communications ............ 25,487 1,234,527(h)
Williams Cos. Inc. ................ 2,337 98,738
Xcel Energy Inc. .................. 15,506 426,414
8,735,432
TOTAL INVESTMENTS IN SECURITIES
(COST $70,146,157) ............. 87,875,283
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.0%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $2,781,702) ..............2,781,702 2,781,702
OTHER ASSETS AND LIABILITIES,
NET 3.1% ....................... 2,918,334
===========
NET ASSETS-- 100% ................. $93,575,319
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Value Equity Fund had the following long futures contracts open at
September 30, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE DEPRECIATION
--------------------------------------------------------------------------------
S&P 500 December 2000 9 $3,270,825 $(21,175)
-------
See Notes to Schedules of Investments and Financial Statements.
10
<PAGE>
GE MID-CAP GROWTH FUND
Q&A
RALPH (CHIP) E. WHITMAN HAS BEEN THE PORTFOLIO MANAGER OF THE GE MID-CAP GROWTH
FUND SINCE DECEMBER 1998. HE IS CURRENTLY A SENIOR VICE PRESIDENT OF GE ASSET
MANAGEMENT. CHIP HAS MORE THAN 12 YEARS OF INVESTMENT EXPERIENCE AND HAS HELD
POSITIONS WITH GE ASSET MANAGEMENT SINCE 1987. CHIP IS A HOLDER OF A CHARTERED
FINANCIAL ANALYST DESIGNATION. HE HOLDS A B.A. IN MATHEMATICS FROM HAMILTON
COLLEGE AND A M.S. IN MANAGEMENT FROM THE SLOAN SCHOOL AT MIT.
BETWEEN OCTOBER 1997 AND NOVEMBER 1998, ELAINE G. HARRIS WAS THE PORTFOLIO
MANAGER OF THE FUND.
Q. HOW DID THE GE MID-CAP GROWTH FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Mid-Cap Growth Fund returned 33.44% for Class A Shares, 32.47% for
Class B Shares, 32.47% for Class C Shares and 33.77% for Class Y Shares for
the one-year period ended September 30, 2000, while the Standard & Poor's
400 MidCap Index returned 43.23% for the same period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK FOR THE ONE-YEAR PERIOD ENDED
SEPTEMBER 30, 2000?
A. The Fund underperformed its benchmark due to its underweight positions in
the technology and selected healthcare areas. Valuation concerns in
technology and biotechnology related stocks caused us to de-emphasize these
groups. The Fund was underweight technology by 4.5%, but was able to invest
in some solid companies that did quite well over this period.
The financial sector provided the Fund with positive performance due to an
overweight of the sector and strong performance from holdings such as
Waddell & Reed, Bank of New York, and AXA Financial. Another sector
providing a positive boost to performance was utilities, where the Fund was
underweight but where stock selection was solid. The Fund's focus in this
sector was primarily in the telecommunications industry. The capital goods,
consumer cyclical, and consumer stable sectors, as well as an underweight in
energy, all detracted from the Fund's performance. The Fund continues to
seek out those companies with above average growth and reasonable
valuations.
Q. WHICH INVESTMENTS STAND OUT?
A. Energy, technology and healthcare-related stocks (mainly biotechnology)
were, no doubt, the main focus with investors over the past year. The Fund's
performance certainly benefited from this trend. Holdings such as Analog
Devices (semiconductors), up 223%, ADC Telecommunications (telecom
equipment), up 157% and Genentech (biotechnology), up 154%, certainly all
stand out. Other issues in the Fund such as Watson Pharmaceuticals, Waddell
& Reed Financial and Nabors Industries were up 112%, 110%, and 110%,
respectively, as strength in the financial, energy and healthcare-related
sectors accelerated. While the Fund continues to embrace the "new economy"
paradigm, we are focused on business models with sustainable advantages and
remain disciplined about valuation levels.
Q. HOW IS THE FUND POSITIONED AMID MODERATING ECONOMIC GROWTH?
A. While we believe the Fund is well positioned to survive an economic
slowdown, we concede that no one security or strategy would be immune to a
broad-based slowdown. Our strategy has been to select securities with
strong, consistent earnings track records and shareholder-friendly
management teams that have a sustainable business model for the long-term.
With respect to valuations, our discipline limits our exposure to
high-flying stocks with stretched valuations as these stocks tend to carry
the most amount of downside risk. We remain focused on bottom-up,
fundamental stock picking to achieve our results.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We believe the Fund is well positioned to take advantage of a rotation into
stocks other than technology-related names. Stocks in these areas have
produced stellar returns over the past few years and are now trading at
extreme valuation levels, even despite the recent correction in many of
them. As we stay focused on quality companies, we believe the Fund can
generate solid results.
[PHOTO OF RALPH E. WHITMAN OMITTED]
11
<PAGE>
GE MID-CAP GROWTH FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Analog Devices Inc. 3.74%
--------------------------------------------------------------------------------
SCI Systems Inc. 2.94%
--------------------------------------------------------------------------------
Bank of New York Inc. 2.72%
--------------------------------------------------------------------------------
Molex Inc. (Class A) 2.50%
--------------------------------------------------------------------------------
Viad Corp. 2.41%
--------------------------------------------------------------------------------
El Paso Energy Corp. 2.33%
--------------------------------------------------------------------------------
Devon Energy Corp. 2.27%
--------------------------------------------------------------------------------
Tosco Corp. 2.26%
--------------------------------------------------------------------------------
American International Group Inc. 2.17%
--------------------------------------------------------------------------------
Tyco International Ltd. 2.10%
-------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with medium-sized market
capitalizations that the fund's management considers to have the
potential for above-average growth.
* LIPPER PERFORMANCE COMPARISON
MULTICAP VALUE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/00
One Five
Year Year
------ ------
Number of
Funds in
peer group: 475 209
Peer group
average annual
total return: 11.94% 13.80%
Lipper categories
in peer group: MULTICAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Growth Fund GE Mid-Cap Growth Fund w/load S&P MidCap 400
9/8/93 10,000.00 9,425.00 10,000.00
9,847.06 9,280.85 9,977.95
9/94 10,251.10 9,661.66 10,262.83
11,106.35 10,467.73 10,824.72
9/95 13,743.36 12,953.12 12,919.75
14,277.89 13,456.91 13,911.12
9/96 15,715.18 14,811.56 14,730.65
15,430.10 14,542.87 15,388.68
9/97 20,917.94 19,715.16 20,490.44
22,427.98 21,138.37 22,940.57
9/98 17,548.00 16,536.00 19,213.60
20,836.59 19,635.36 23,000.74
9/99 19,987.85 18,835.55 24,048.16
26,735.34 25,194.05 31,762.12
9/00 26,671.68 25,134.07 34,444.96
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ---- ---------
GE Mid-Cap Growth 33.44% 14.18% 14.90%
GE Mid-Cap Growth w/load 25.83% 12.83% 13.94%
(maximum load-5.75%)
S&P MidCap 400 43.23% 21.67% 19.13%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Growth Fund GE Mid-Cap Growth Fund w/load S&P MidCap 400
9/8/93 10,000.00 10,000.00 10,000.00
9,823.53 9,823.53 9,977.95
9/94 10,180.31 10,180.31 10,262.83
10,976.20 10,976.20 10,824.72
9/95 13,542.06 13,542.06 12,919.75
14,017.22 14,017.22 13,911.12
9/96 15,383.31 15,383.31 14,730.65
15,050.70 15,050.70 15,388.68
9/97 20,336.85 20,336.85 20,490.44
21,740.75 21,740.75 22,940.57
9/98 16,958.00 16,958.00 19,213.60
20,088.45 20,088.45 23,000.74
9/99 19,218.82 19,218.82 24,048.16
25,610.61 25,610.61 31,762.12
9/00 25,458.42 25,458.42 34,444.96
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------- ---------
GE Mid-Cap Growth 32.47% 13.46% 14.15%
GE Mid-Cap Growth w/load 28.47% 13.46% 14.15%
(maximum load) 4.00% 0.00% 0.00%
S&P MidCap 400 43.23% 21.67% 19.13%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Growth Fund GE Mid-Cap Growth Fund w/load S&P MidCap 400
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,305.43 10,305.43 10,510.50
11/99 10,961.54 10,961.54 11,062.30
12/99 12,262.44 12,262.44 11,719.40
1/00 11,447.96 11,447.96 11,391.14
2/00 12,194.57 12,194.57 12,187.38
3/00 13,325.79 13,225.79 13,207.71
4/00 12,771.49 12,671.49 12,746.36
5/00 12,635.75 12,535.75 12,590.60
6/00 12,658.37 12,558.37 12,774.55
7/00 12,692.31 12,592.31 12,974.99
8/00 13,936.65 13,836.65 14,424.29
9/00 13,246.61 13,146.61 14,323.32
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Mid-Cap Growth 32.47% 32.47%
GE Mid-Cap Growth w/load 31.47% 31.47%
(maximum load) 1.00% 1.00%
S&P MidCap 400 43.23% 43.23%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Growth Fund S&P MidCap 400
1/5/98 10,000.00 10,000.00
3/98 11,120.00 11,104.28
6/98 10,680.00 10,865.88
9/98 8,710.05 9,300.25
12/98 10,400.00 11,886.37
3/99 10,380.00 11,133.40
6/99 11,280.00 12,707.03
9/99 9,980.00 11,640.40
12/99 1,270.00 13,641.85
3/00 13,370.00 15,374.30
6/00 12,730.00 14,870.09
9/00 13,350.00 16,672.92
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Mid-Cap Growth 33.77% 11.13%
S&P MidCap 400 43.23% 20.54%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
12
<PAGE>
GE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE MID-CAP GROWTH FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TECHNOLOGY 21.1%
FINANCIAL 14.3%
CONSUMER CYCLICAL 12.8%
CAPITAL GOODS 11.7%
CONSUMER STABLE 11.3%
UTILITIES 10.5%
ENERGY 7.9%
CASH & OTHER 7.5%*
BASIC MATERIALS 2.9%
*INCLUDES CASH EQUALIZED BY FUTURES OF (1.3)%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 92.5%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 2.9%
Bowater Inc. ...................... 6,200 $ 287,912
Crompton Corp. .................... 1 8
Praxair Inc. ...................... 12,400 463,450
Rohm & Haas Co. ................... 3,519 102,271
Sealed Air Corp. .................. 7,435 336,434(a)
1,190,075
CAPITAL GOODS -- 11.7%
Dover Corp. ....................... 10,161 476,932
Honeywell International Inc. ...... 8,054 286,924
Hubbell Inc. (Class B) ............ 7,064 177,042
Martin Marietta Materials Inc. .... 9,295 355,813
Mettler-Toledo International Inc. . 16,605 730,620(a)
Molex Inc. (Class A) .............. 24,791 1,027,277
Textron Inc. ...................... 12,396 571,765
Thermo Electron Corp. ............. 12,392 322,192(a)
Tyco International Ltd. ........... 16,605 861,384
4,809,949
CONSUMER - CYCLICAL -- 12.8%
Costco Wholesale Corp. ............ 10,116 353,428(a)
Federated Department Stores Inc. .. 24,788 647,586(a)
Hispanic Broadcasting Corp. ....... 9,300 259,238(a)
Interpublic Group Cos. Inc. ....... 16,740 570,206
ITT Industries Inc. ............... 24,788 804,061
Jones Apparel Group Inc. .......... 12,764 338,246(a)
Kroger Co. ........................ 20,075 452,942(a)
Office Depot Inc. ................. 30,980 242,031(a)
Viad Corp. ........................ 37,174 987,434
Young & Rubicam Inc. .............. 3,720 184,140
Zale Corp. ........................ 12,144 393,921(a,h)
5,233,233
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
CONSUMER - STABLE -- 11.3%
Cardinal Health Inc. .............. 7,187 $ 633,804
Energizer Holdings Inc. ........... 12,400 303,800(a)
Genentech Inc. .................... 2,675 496,714(a)
Henry Schein Inc. ................. 18,588 370,598(a)
Keebler Foods Co. ................. 15,500 651,000
Manor Care Inc. ................... 21,686 340,199(a)
Sybron International Corp. ........ 18,588 446,112(a)
Tenet Healthcare Corp. ............ 16,605 604,007(a)
Watson Pharmaceuticals Inc. ....... 12,392 803,931(a)
4,650,165
ENERGY -- 7.9%
Devon Energy Corp. ................ 15,500 932,325
Nabors Industries Inc. ............ 8,551 448,073(a)
Schlumberger Ltd. ................. 4,089 336,576
Tosco Corp. ....................... 29,751 927,859
Transocean Sedco Forex Inc. ....... 791 46,372
USX-Marathon Group ................ 18,592 527,548
3,218,753
FINANCIAL -- 14.3%
American International
Group Inc. ..................... 9,294 889,320(h)
AXA Financial Inc. ................ 16,109 820,552
Bank of New York Inc. ............. 19,950 1,118,447
Comdisco Inc. ..................... 30,980 590,556(h)
Firstar Corp. ..................... 6,241 139,642
GATX Corp. ........................ 10,409 435,877
Hartford Financial Services
Group Inc. ..................... 7,683 560,379
Nationwide Financial
Services Inc. (Class A) ........ 18,600 695,175
UnumProvident Corp. ............... 9,046 246,503
Waddell & Reed Financial
Inc. (Class A) ................. 12,379 383,749
5,880,200
TECHNOLOGY -- 21.1%
ADC Telecommunications Inc. ....... 23,146 622,410(a)
Analog Devices Inc. ............... 18,600 1,535,662(a)
ANTEC Corp. ....................... 12,400 365,800(a)
Atmel Corp. ....................... 31,114 472,544(a)
Axcelis Technologies Inc. ......... 24,800 294,500(a)
C-Cube Microsystems Inc. .......... 22,728 465,924(a)
Cadence Design Systems Inc. ....... 12,516 321,505(a)
Convergys Corp. ................... 12,400 486,195(a)
Cypress Semiconductor Corp. ....... 8,986 373,481(a)
Intuit Inc. ....................... 8,329 474,753(a)
Nokia Oyj ADR ..................... 17,531 697,953
Nortel Networks Corp. ............. 13,374 796,589
SCI Systems Inc. .................. 29,388 1,204,908(a)
SunGard Data Systems Inc. ......... 13,135 562,342(a)
8,674,566
--------
See Notes to Schedules of Investments and Financial Statements.
13
<PAGE>
GE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
UTILITIES -- 10.5%
Dynegy Inc. (Class A) ............. 12,401 $ 706,857
Eastern Enterprises ............... 9,300 593,456
El Paso Energy Corp. .............. 15,489 954,510
Montana Power Co. ................. 24,800 827,700
Qwest Communications
International Inc. ............. 16,109 774,239(a)
Southern Energy Inc. .............. 1,224 38,403(a)
Telephone & Data Systems Inc. ..... 3,720 411,804
4,306,969
TOTAL INVESTMENTS IN SECURITIES
(COST $31,030,142) ............. 37,963,910
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 11.0%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $4,534,955) ..............4,534,955 4,534,955
OTHER ASSETS AND LIABILITIES,
NET (3.5)% ..................... (1,449,111)
-----------
NET ASSETS-- 100% ................. $41,049,754
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Mid-Cap Growth Fund had the following short futures contracts open at
September 30, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE APPRECIATION
--------------------------------------------------------------------------------
S&P Midcap December 2000 2 $545,300 $10,750
--------
See Notes to Schedules of Investments and Financial Statements.
14
<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 $5.2 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 HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION 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 PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Mid-Cap Value Equity Fund posted a return of 8.55% for Class A, 7.69%
for Class B, 7.69% for Class C and 8.72% for Class Y for the one-year period
ended September 30, 2000. This compares with a 43.23% return for the S&P
MidCap 400 Index. The Lipper Multi-Cap Value Peer Group returned 11.94% for
the same period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
A. The Fund's underperformance relative to its benchmark can be attributed to
several factors, most importantly is the Fund's limited exposure to
technology stocks. These stocks, which comprise over twenty percent of the
S&P MidCap 400 Index, performed exceptionally well due to strong investor
demand for growth stocks. Our investment philosophy, in which we seek
attractive risk/reward opportunities with value-oriented characteristics,
limited our investment in that group. Also negatively impacting performance
was market weakness in the telecommunication sector. This weakness was
related to concerns about profitability, and the industry's ability to tap
the financial markets for the slated expansion of their networks. Fund
holdings in this sector include Alltel, AT&T Corp., CoreComm Limited, NTL
Inc., and Telephone & Data Systems. We actively reduced the Fund's exposure
to the telecommunication sector earlier this year following the group's
spectacular returns the past several years. Unfortunately, we were not as
aggressive as we would have liked to be, due to the group's severe sell-off
during the market's rapid decline in March 2000, and our belief we could
sell at better prices.
Q. WHICH INVESTMENTS STAND OUT?
A. Fund holdings that positively contributed to performance the past
twelve-months include Alberto-Culver, Carnival, Mandalay Resort Group, and
Quantum Hard Disk Drive Group. Improving fundamental trends in the
healthcare segment provided the catalyst for our Aetna, Pharmacia Corp., and
Tenet Healthcare holdings to perform well. These trends include growing unit
volumes, upward pricing momentum, and closure of government fraud
investigations. Some of the best performing stocks were Nabisco Group
Holdings, which received a $30/share cash takeout offer from RJ Reynolds
Tobacco Holdings, and APW Limited, an undervalued technology company.
Financial service was the best performing sector. These stocks rallied due
to moderating inflation concerns, extremely attractive valuations, and a
flurry of consolidation activity. Some of our favorites in the group include
Bear Stearns Companies, Countrywide Credit Industries, and Hartford
Financial Services Group. On the downside, CoreComm Limited and NTL Inc.
underperformed due to the very weak market environment for telecommunication
and media stocks.
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.
Q. WHAT ARE THE FIVE BEST AND WORST PERFORMING STOCKS HELD DURING THE
TWELVE-MONTH PERIOD?
BEST
Hartford Financial
Services Group + 78.4%
Bear Stearns Companies + 63.9%
Quantum Corp.-Hard Disk
Drive Group + 45.9%
Waddell & Reed Financial + 39.7%
IndyMac Mortgage
Holdings Inc. + 37.1%
WORST
Alltel Corp. - 25.8%
Chase Manhattan Corp. - 38.7%
Lear Corp. - 41.6%
Hasbro Inc. - 46.8%
CoreComm Ltd. - 63.8%
Effective October 1, 2000, GEAM, as Investment Adviser to the Fund, will assume
day-to-day portfolio management responsibility from NWQ, the current Sub-Adviser
to the Fund.
15
<PAGE>
GE MID-CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Tenet Healthcare Corp. 4.27%
--------------------------------------------------------------------------------
Telephone & Data Systems Inc. 4.17%
--------------------------------------------------------------------------------
Hartford Financial Services Group Inc. 3.12%
--------------------------------------------------------------------------------
Heller Financial Inc. 3.11%
--------------------------------------------------------------------------------
IndyMac Mortgage Holdings Inc. 2.85%
--------------------------------------------------------------------------------
The E.W. Scripps Co. Inc. (Class A) 2.70%
--------------------------------------------------------------------------------
Noble Affiliates Inc. 2.61%
--------------------------------------------------------------------------------
AT&T Corp. - Liberty Media
Group (Class A) 2.61%
--------------------------------------------------------------------------------
Loews Corp. 2.54%
--------------------------------------------------------------------------------
Praxair Inc. 2.49%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
Amutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with medium-sized
market capitalizations that the fund's management considers as
undervalued by the market and have above-average growth potential.
* LIPPER PERFORMANCE COMPARISON
MULTICAP VALUE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/00
One Year
----------
Number of
Funds in
peer group: 475
Peer group
average annual
total return: 11.94%
Lipper categories
in peer group: MULTICAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Value Equity GE Mid-Cap Value Equity w/load S&P MidCap 400
12/31/98 10,000.00 9,425.00 10,000.00
10,060.00 9,481.55 9,615.30
9,580.00 9,029.15 9,109.63
3/99 10,100.00 9,519.25 9,366.52
11,070.00 10,433.47 10,104.89
11,110.00 10,471.17 10,147.43
6/99 11,500.00 10,838.75 10,690.42
10,970.00 10,339.22 10,461.11
10,370.00 9,773.72 10,103.44
9/99 9,830.00 9,264.84 9,793.06
10,290.00 9,698.40 10,293.00
10,360.00 9,764.37 10,833.38
12/99 10,791.22 10,170.80 11,476.89
10,036.24 9,459.22 11,155.42
9,351.72 8,814.06 11,935.18
3/00 10,730.82 10,113.87 12,934.39
10,428.83 9,829.24 12,482.60
10,328.16 9,734.37 12,330.06
6/00 10,056.37 9,478.20 12,510.20
10,157.03 9,573.08 12,706.49
10,781.15 10,161.31 14,125.80
9/00 10,670.42 10,056.95 14,026.92
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Mid-Cap Value Equity 8.55% 3.77%
GE Mid-Cap Value w/load 2.31% 0.32%
(maximum load-5.75%)
S&P MidCap 400 43.23% 21.32%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Value Equity GE Mid-Cap Value Equity w/load S&P MidCap 400
12/31/98 10,000.00 10,000.00 10,000.00
10,050.00 10,050.00 9,615.30
9,570.00 9,570.00 9,109.63
3/99 10,080.00 10,080.00 9,366.52
11,030.00 11,030.00 10,104.89
11,070.00 11,070.00 10,147.43
6/99 11,450.00 11,450.00 10,690.42
10,910.00 10,910.00 10,461.11
10,310.00 10,310.00 10,103.44
9/99 9,770.00 9,770.00 9,793.06
10,220.00 10,220.00 10,293.00
10,280.00 10,280.00 10,833.38
12/99 10,711.74 10,711.74 11,476.89
9,950.20 9,950.20 11,155.42
9,258.79 9,258.79 11,935.18
3/00 10,631.58 10,331.58 12,934.39
10,320.95 10,020.95 12,482.60
10,220.74 9,920.74 12,330.06
6/00 9,940.18 9,642.58 12,510.20
10,040.38 9,740.38 12,706.49
10,641.60 10,341.60 14,125.80
9/00 10,521.36 10,221.36 14,026.92
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Mid-Cap Value Equity 7.69% 2.94%
GE Mid-Cap Value w/load 3.69% 1.26%
(maximum load) 4.00% 3.00%
S&P MidCap 400 43.23% 21.32%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Value Equity GE Mid-Cap Value Equity w/load S&P MidCap 400
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,460.59 10,460.59 10,510.50
11/99 10,522.01 10,522.01 11,062.30
12/99 10,965.14 10,965.14 11,719.40
1/00 10,191.50 10,191.50 11,391.14
2/00 9,479.74 9,479.74 12,187.38
3/00 10,882.62 10,782.62 13,207.71
4/00 10,562.85 10,462.85 12,746.36
5/00 10,459.69 10,359.69 12,590.60
6/00 10,170.86 10,070.86 12,774.55
7/00 10,274.02 10,174.02 12,974.99
8/00 10,892.93 10,792.93 14,424.29
9/00 10,769.15 10,669.15 14,323.32
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Mid-Cap Value Equity 7.69% 7.69%
GE Mid-Cap Value w/load 6.69% 6.69%
(maximum load) 1.00% 1.00%
S&P MidCap 400 43.23% 43.23%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Mid-Cap Value Equity S&P MidCap 400
12/31/98 10,000.00 10,000.00
10,060.00 9,615.30
9,580.00 9,109.63
3/99 10,100.00 9,366.52
11,070.00 10,104.89
11,110.00 10,147.43
6/99 11,510.00 10,690.42
10,970.00 10,461.11
10,380.00 10,103.44
9/99 9,840.00 9,793.06
10,300.00 10,293.00
10,370.00 10,833.38
12/99 10,808.50 11,476.89
10,052.31 11,155.42
9,366.69 11,935.18
3/00 10,758.09 12,934.39
10,455.61 12,482.60
10,354.78 12,330.06
6/00 10,082.56 12,510.20
10,193.46 12,706.49
10,818.58 14,125.80
9/00 10,697.59 14,026.92
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Mid-Cap Value Equity 8.72% 3.93%
S&P MidCap 400 43.23% 21.32%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
16
<PAGE>
GE MID-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE MID-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
FINANCIAL 15.1%
CONSUMER DISCRETIONARY 14.3%
TELECOMMUNICATIONS 10.1%
CASH & OTHER 8.7%
HEALTHCARE 8.5%
MATERIALS & PROCESSING 7.5%
INSURANCE 7.5%
CONSUMER STABLE 7.3%
TECHNOLOGY - ELECTRONICS & EQUIPMENT 6.7%
ENERGY 6.5%
CAPITAL GOODS 6.4%
TRANSPORTATION 1.4%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 91.3%
--------------------------------------------------------------------------------
CAPITAL GOODS -- 6.4%
CNH Global N.V. ................... 18,200 $ 182,000
Ingersoll-Rand Co. ................ 5,400 182,925
Parker-Hannifin Corp. ............. 4,700 158,625
Snap-on Inc. ...................... 7,300 172,006
York International Corp. .......... 7,500 186,563
882,119
CONSUMER - DISCRETIONARY -- 14.3%
AT&T Corp. - Liberty Media
Group (Class A) ................ 20,000 360,000(a)
Carnival Corp. .................... 6,900 169,912
Delphi Automotive Systems Corp. ... 16,200 245,025
Dillards Inc. (Class A) ........... 9,800 104,125
Ford Motor Co. .................... 9,789 247,784
Hasbro Inc. ....................... 20,400 233,325
Lear Corp. ........................ 4,600 94,588(a)
Mandalay Resort Group ............. 5,000 128,125(a)
The E.W. Scripps Co. Inc.
(Class A) ...................... 6,900 372,600
Visteon Corp. ..................... 733 11,087
1,966,571
CONSUMER - STABLE -- 7.3%
Alberto-Culver Co. (Class A) ...... 8,100 203,006
Loews Corp. ....................... 4,200 350,175
Philip Morris Cos. Inc. ........... 9,200 270,825
Sara Lee Corp. .................... 9,000 182,813
1,006,819
ENERGY -- 6.5%
Conoco Inc. (Class B) ............. 10,700 288,231
Noble Affiliates Inc. ............. 9,700 360,112
Tosco Corp. ....................... 8,100 252,619
900,962
FINANCIAL -- 15.1%
Bank of America Corp. ............. 4,200 219,975
Bear Stearns Cos. Inc. ............ 2,163 136,269
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Chase Manhattan Corp. ............. 5,100 $ 235,556
Countrywide Credit
Industries Inc. ................ 7,000 264,250
First Union Corp. ................. 6,600 212,438
Heller Financial Inc. ............. 15,000 428,437
IndyMac Mortgage Holdings Inc. .... 19,100 392,744
Waddell & Reed Financial
Inc. (Class A) ................. 6,400 198,400
2,088,069
HEALTHCARE -- 8.5%
Aetna Inc. ........................ 4,300 249,669
Pharmacia Corp. ................... 5,474 329,466
Tenet Healthcare Corp. ............ 16,200 589,275(a)
1,168,410
INSURANCE -- 7.5%
Hartford Financial Services
Group Inc. ..................... 5,900 430,331
MGIC Investment Corp. ............. 5,200 317,850
Torchmark Corp. ................... 10,300 286,469
1,034,650
MATERIALS & PROCESSING -- 7.5%
Bowater Inc. ...................... 3,400 157,887
Packaging Corp. of America ........ 16,700 184,744(a)
Praxair Inc. ...................... 9,200 343,850
Rohm & Haas Co. ................... 9,500 276,094
Smurfit-Stone Container Corp. ..... 6,600 79,200(a)
1,041,775
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 6.7%
Agilent Technologies Inc. ......... 4,500 220,219(a)
APW Ltd. .......................... 5,800 282,750(a)
Quantum Corp. - DLT & Storage
Systems ........................ 13,600 204,850(a)
Quantum Corp. - Hard Disk Drive ... 21,200 210,675(a)
918,494
TELECOMMUNICATIONS -- 10.1%
Alltel Corp. ...................... 4,100 213,969
AT&T Corp. ........................ 5,283 155,188
CoreComm Ltd. ..................... 13,725 108,942(a)
NTL Inc. .......................... 7,187 332,848(a)
Telephone & Data Systems Inc. ..... 5,200 575,640
1,386,587
TRANSPORTATION -- 1.4%
Delta Air Lines Inc. .............. 4,300 190,812
TOTAL INVESTMENTS IN SECURITIES
(COST $12,063,935) ............. 12,585,268
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.7%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $1,205,247) ..............1,205,247 1,205,247
OTHER ASSETS AND LIABILITIES,
NET 0.0% ....................... (682)
-----------
NET ASSETS-- 100% ................. $13,789,833
===========
---------
See Notes to Schedules of Investments and Financial Statements.
17
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
Q&A
PALISADE CAPITAL MANAGEMENT, L.L.C. ("PALISADE") WITH TOTAL ASSETS UNDER
MANAGEMENT EXCEEDING $2.4 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 PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Small-Cap Value Equity Fund posted a return of 27.80% for Class A,
26.77% for Class B, 26.77% for Class C and 28.11% for Class Y for the
one-year period ended September 30, 2000. The Russell 2000 Index returned
23.22% and the Lipper Small-Cap Value Equity Peer Group returned 20.66% for
the same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. Strong performance posted in the healthcare and financial services sectors
helped bolster results over the past twelve months. Among our top performers
were companies with strong management and robust growth potential:
AmeriCredit Corp, Barr Labs, Triad Hospitals and Universal Health Services.
Q. HOW DO YOU PICK STOCKS?
A. Our focus is on quality of management, valuation, visibility of earnings and
growth-rate sustainability. We believe sagacious stock selection begins with
thorough fundamental research. We attempt to maintain a balance between an
investment candidate's projected growth and its valuation.
Q. WHY DID THE WEIGHTING OF THE FUND CHANGE?
A. There is no limit as to the amount we will be under- or over-weighted in a
sector or industry group compared to the Russell 2000. First and foremost,
we consider ourselves stock pickers. We view sector allocation as a tool to
help manage risk, but rely upon our stock selection as the primary component
of portfolio construction. Our allocation to the financial services,
healthcare and energy sectors has increased over the last few months as we
have found greater potential for future return within these sectors.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. We remain committed to finding companies with strong product lines, robust
projected growth, reasonable valuations and forward-thinking management.
[PHOTO OF JACK FEILER OMITTED]
18
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
InterTAN Inc. 3.67%
--------------------------------------------------------------------------------
Golden State Bancorp Inc. 3.52%
--------------------------------------------------------------------------------
Iron Mountain Inc. 3.45%
--------------------------------------------------------------------------------
Triad Hospitals Inc. 3.06%
--------------------------------------------------------------------------------
Everest Re Group Ltd. 3.01%
--------------------------------------------------------------------------------
The Earthgrains Co. 2.90%
--------------------------------------------------------------------------------
Beckman Coulter Inc. 2.78%
--------------------------------------------------------------------------------
Caremark Rx Inc. 2.67%
--------------------------------------------------------------------------------
IndyMac Mortgage Holdings Inc. 2.61%
--------------------------------------------------------------------------------
Oshkosh Truck Corp. 2.47%
--------------------------------------------------------------------------------
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.
* LIPPER PERFORMANCE COMPARISON
SMALL CAP VALUE EQUITY PEER GROUP BASED
ON AVERAGE ANNUAL TOTAL RETURNS FOR THE
PERIODS ENDED 9/30/00
One Year
----------
Number of
Funds in
peer group: 311
Peer group
average annual
total return: 20.66%
Lipper categories
in peer group: SMALL-CAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Small-Cap GE Small-Cap Value Russell
Value Equity Equity w/load 2000
9/30/98 10,000.00 9,425.00 10,000.00
10,760.00 10,141.38 10,407.80
11,450.00 10,791.71 10,953.17
12/98 12,016.63 11,325.76 11,631.17
11,383.12 10,728.67 11,785.86
10,498.21 9,894.64 10,831.21
3/99 10,437.88 9,837.77 11,000.18
11,332.84 10,681.28 11,985.79
11,795.41 11,117.25 12,160.78
6/99 12,800.98 12,065.02 12,710.45
12,881.43 12,140.84 12,362.19
12,237.86 11,534.27 11,904.78
9/99 12,227.80 11,524.79 11,907.17
12,479.20 11,761.73 11,955.99
13,263.55 12,500.99 12,669.76
12/99 14,557.95 13,720.97 14,103.97
13,891.53 13,092.86 13,876.90
15,373.75 14,489.87 16,167.98
3/00 15,936.76 15,020.51 15,102.51
15,477.16 14,587.33 14,193.34
14,546.46 13,710.14 13,365.86
6/00 15,224.38 14,349.08 14,531.37
14,592.42 13,753.46 14,063.46
15,638.02 14,738.95 15,136.50
9/00 15,626.53 14,728.12 14,671.81
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Small-Cap Value 27.80% 24.97%
GE Small-Cap Value w/load 20.46% 21.33%
(maximum load-5.75%)
Russell 2000 23.22% 21.10%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Small-Cap GE Small-Cap Value Russell
Value Equity Equity w/load 2000
9/30/98 10,000.00 10,000.00 10,000.00
10,750.00 10,750.00 10,407.80
11,440.00 11,440.00 10,953.17
12/98 11,996.22 11,996.22 11,631.17
11,353.74 11,353.74 11,785.86
10,460.30 10,460.30 10,831.21
3/99 10,400.07 10,400.07 11,000.18
11,283.47 11,283.47 11,985.79
11,735.21 11,735.21 12,160.78
6/99 12,729.04 12,729.04 12,710.45
12,799.31 12,799.31 12,362.19
12,156.83 12,156.83 11,904.78
9/99 12,136.76 12,136.76 11,907.17
12,377.68 12,377.68 11,955.99
13,150.66 13,150.66 12,669.76
12/99 14,421.02 14,421.02 14,103.97
13,755.08 13,755.08 13,876.90
15,213.26 15,213.26 16,167.98
3/00 15,752.90 15,452.90 15,102.51
15,293.63 14,993.63 14,193.34
14,363.61 14,063.61 13,365.86
6/00 15,018.07 14,718.07 14,531.37
14,398.06 14,098.06 14,063.46
15,408.44 15,108.44 15,136.50
9/00 15,385.48 15,185.48 14,671.81
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Small-Cap Value 26.77% 24.00%
GE Small-Cap Value w/load 22.77% 23.19%
(maximum load) 4.00% 3.00%
Russell 2000 23.22% 21.10%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Small-Cap GE Small-Cap Value Russell
Value Equity Equity w/load 2000
9/30/1999 10,000.00 10,000.00 10,000.00
10/99 10,198.51 10,198.51 10,041.00
11/99 10,835.40 10,835.40 10,640.45
12/99 11,882.10 11,882.10 11,844.95
1/00 11,333.41 11,333.41 11,654.24
2/00 12,534.86 12,534.86 13,578.36
3/00 12,979.49 12,879.49 12,683.54
4/00 12,610.54 12,510.54 11,920.00
5/00 11,834.80 11,734.80 11,225.06
6/00 12,374.04 12,274.04 12,203.88
7/00 11,863.18 11,763.18 11,810.92
8/00 12,695.69 12,595.69 12,712.09
9/00 12,676.77 12,576.77 12,321.83
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Small-Cap Value 26.77% 26.77%
GE Small-Cap Value w/load 25.77% 25.77%
(maximum load) 1.00% 1.00%
Russell 2000 23.22% 23.22%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Small-Cap Value Equity Russell 2000
9/30/98 10,000.00 10,000.00
10,760.00 10,407.80
11,460.00 10,953.17
12/98 12,021.58 11,631.17
11,387.80 11,785.86
10,502.53 10,831.21
3/99 10,442.17 11,000.18
11,347.56 11,985.79
11,810.32 12,160.78
6/99 12,816.31 12,710.45
12,906.85 12,362.19
12,273.07 11,904.78
9/99 12,252.95 11,907.17
12,514.51 11,955.99
13,299.18 12,669.76
12/99 14,593.75 14,103.97
13,938.76 13,876.90
15,421.12 16,167.98
3/00 15,984.18 15,102.51
15,536.03 14,193.34
14,605.24 13,365.86
6/00 15,283.22 14,531.37
14,662.70 14,063.46
15,708.39 15,136.50
9/00 15,696.90 14,671.81
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Small-Cap Value 28.11% 25.25%
Russell 2000 23.22% 21.10%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
19
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
[GE SMALL-CAP VALUE EQUITY FUND PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TELECOMMUNICATIONS 1.0%
FINANCIAL SERVICES 19.3%
HEALTHCARE 18.1%
CONSUMER DISCRETIONARY 12.9%
TECHNOLOGY 12.5%
REAL ESTATE INVESTMENT TRUST 7.8%
CONSUMER STABLE 6.7%
PRODUCER DURABLES 3.9%
MATERIALS & PROCESSING 3.8%
AUTOS & TRANSPORTATION 3.7%
UTILITIES 3.6%
ENERGY 3.6%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 96.9%
--------------------------------------------------------------------------------
AUTO & TRANSPORTATION -- 3.7%
Kirby Corp. ........................ 33,700 $ 661,363(a)
Oshkosh Truck Corp. ................ 33,300 1,290,375
1,951,738
CONSUMER - DISCRETIONARY -- 12.9%
AnnTaylor Stores Corp. ............. 12,800 492,000(a)
F.Y.I. Inc. ........................ 6,700 250,413(a)
Handleman Co. ...................... 62,700 775,913(a)
InterTAN Inc. ...................... 132,650 1,915,134(a)
Iron Mountain Inc. ................. 48,600 1,798,200(a)
Reader's Digest Assoc. Inc.
(Class A) ....................... 12,400 437,875
School Specialty Inc. .............. 49,400 1,052,837(a)
6,722,372
CONSUMER - STABLE -- 6.7%
Smithfield Foods Inc. .............. 36,000 945,000(a)
Suiza Foods Corp. .................. 14,900 755,244(a)
The Earthgrains Co. ................ 82,200 1,515,562
The J.M. Smucker Co. ............... 11,700 284,456(a)
3,500,262
ENERGY -- 3.6%
Louis Dreyfus Natural Gas Corp. .... 23,900 947,037(a)
Noble Affiliates Inc. .............. 25,100 931,838
1,878,875
FINANCIAL SERVICES -- 19.3%
Affiliated Computer Services
Inc. (Class A) .................. 19,400 967,575(a)
AmeriCredit Corp. .................. 19,600 564,725(a)
Commerce Bancorp Inc. .............. 10,400 605,150
Everest Re Group Ltd. .............. 31,700 1,569,150
Golden State Bancorp Inc. .......... 77,800 1,838,025
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
IndyMac Mortgage
Holdings Inc. ................... 66,100 $ 1,359,181
Investment Technology
Group Inc. ...................... 18,000 718,875(a)
NOVA Corp. ......................... 24,800 424,700(a)
PartnerRe Ltd. ..................... 4,500 212,777
The BISYS Group Inc. ............... 16,300 1,260,194(a)
Trenwick Group Ltd. ................ 27,800 524,238
10,044,590
HEALTHCARE -- 18.1%
Beckman Coulter Inc. ............... 18,800 1,449,950
Caremark Rx Inc. ................... 124,000 1,395,000(a)
Digene Corp. ....................... 16,300 586,800(a)
Henry Schein Inc. .................. 39,900 795,506(a)
Oxford Health Plans Inc. ........... 16,100 494,823(a)
The Cooper Cos. Inc. ............... 35,700 1,262,888
Triad Hospitals Inc. ............... 54,300 1,595,063(a)
Universal Health Services Inc.
(Class B) ....................... 11,200 959,000(a)
Varian Medical Systems Inc. ........ 19,900 899,231
9,438,261
MATERIALS & PROCESSING -- 3.8%
Ball Corp. ......................... 29,600 937,950
Grant Prideco Inc. ................. 48,600 1,066,162(a)
2,004,112
PRODUCER DURABLES -- 3.9%
Advanced Energy Industries Inc. .... 9,300 306,900(a)
Baldor Electric Co. ................ 20,500 416,406
L-3 Communications
Holdings Inc. ................... 6,200 350,300(a)
LTX Corp. .......................... 37,100 702,581(a)
MKS Instruments Inc. ............... 8,700 238,163(a)
2,014,350
REAL ESTATE INVESTMENT TRUST -- 7.8%
Colonial Properties Trust .......... 29,500 757,781
First Industrial Realty Trust Inc. . 32,400 996,300
Gables Residential Trust ........... 18,300 497,531
Great Lakes REIT Inc. .............. 41,300 717,588
Mid-Atlantic Realty Trust .......... 50,500 596,531
Parkway Properties Inc. ............ 16,600 506,300
4,072,031
TECHNOLOGY -- 12.5%
About.com Inc. ..................... 15,200 492,100(a)
Aeroflex Inc. ...................... 21,100 1,025,988(a)
Comdisco Inc. ...................... 46,500 886,406
DRS Technologies Inc. .............. 35,600 578,500(a)
General Semiconductor Inc. ......... 87,000 1,060,312(a)
Glenayre Technologies Inc. ......... 45,000 489,375(a)
Herley Industries Inc. ............. 36,000 816,750(a)
Pemstar Inc. ....................... 37,100 730,406(a)
Teledyne Technologies Inc. ......... 15,100 439,788(a)
6,519,625
---------
See Notes to Schedules of Investments and Financial Statements.
20
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 1.0%
Microcell Telecommunications
Inc. (Class B) .................. 18,200 $ 528,938(a)
UTILITIES -- 3.6%
American Water Works Co. Inc. ...... 41,400 1,141,088
IDACORP Inc. ....................... 16,000 740,000
1,881,088
TOTAL INVESTMENTS IN SECURITIES
(COST $45,283,284) .............. 50,556,242
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.8%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $4,570,345) ..............4,570,345 4,570,345
OTHER ASSETS AND LIABILITIES,
NET (5.7)% ....................... (2,953,282)
-----------
NET ASSETS-- 100% ................... $52,173,305
===========
NUMBER
EXPIRATION DATE/ OF
STRIKE PRICE CONTRACTS VALUE
--------------------------------------------------------------------------------
CALL OPTIONS
--------------------------------------------------------------------------------
AmeriCredit Corp.
Oct 00/30.00
(Written Option
Premium $16,202) ............ (93) $(13,950)
========
---------
See Notes to Schedules of Investments and Financial Statements.
21
<PAGE>
GE S&P 500 INDEX FUND
Q&A
JAMES B. MAY LEADS A TEAM OF PORTFOLIO MANAGERS AT STATE STREET GLOBAL ADVISORS,
THE SUB-ADVISER FOR THE GE S&P 500 INDEX FUND. SINCE 1994, JAMES HAS BEEN AN
INVESTMENT OFFICER AND PORTFOLIO MANAGER IN THE U.S. STRUCTURED PRODUCTS GROUP
AT STATE STREET BANK AND TRUST COMPANY WITH TOTAL ASSETS UNDER MANAGEMENT
EXCEEDING $738 BILLION. FROM 1991 TO 1993, JAMES SERVED AS AN INVESTMENT SUPPORT
ANALYST IN THE U.S. PASSIVE SERVICES GROUP AT STATE STREET. JAMES HOLDS A B.S.
IN FINANCE FROM BENTLEY COLLEGE AND AN M.B.A. FROM BOSTON COLLEGE.
Q. HOW DID THE GE S&P 500 INDEX FUND PERFORM COMPARED TO ITS BENCHMARK AND
LIPPER PEER GROUP FOR THE PERIOD APRIL 28, 2000 (COMMENCEMENT OF OPERATIONS)
THROUGH SEPTEMBER 30, 2000?
A. The GE S&P 500 Index Fund returned negative 0.60% for the period ended
September 30, 2000 compared to negative 0.66% for the S&P 500 Index, the
Fund's benchmark.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The Fund outperformed its benchmark due to the investment of Fund cash flows
and our Index change trading strategy. The value added from those two
factors helped to offset the Fund's expenses.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. We are utilizing a full replication strategy to manage the GE S&P 500 Index
Fund. With this strategy, all 500 constituents of the S&P 500 Index are
owned by the Fund in the approximate capitalization weight of the Index.
This methodology has provided consistent tracking to the Index.
Q. WHICH INVESTMENTS STAND OUT?
A. As the technology sector continued to suffer, the financial sector emerged
as the Index sector leader during the third quarter. Firms such as
Associates First Capital, Capital One and Lehman Brothers posted strong
third quarter returns of 70.60%, 57.06% and 56.36%, respectively, helping to
lead the financial sector. Over the course of the year, technology increased
to 35% of the capitalization weight of the S&P 500 Index through strong
returns and Index additions. However, as the sector stumbled, the overall
weight in the Index has dropped to 29% at September 30, 2000.
The U.S. equity market is broadening. Earlier in the year the largest cap
stocks such as Cisco Systems, Intel and GE dominated the S&P 500 Index.
Their strong returns coupled with their large weightings in the universe
powered the Index return. As other smaller stocks in the Index have
performed well, the impact has not been as great due to their smaller
weightings. Reflecting the broadening market, in the year 2000, 260 stocks
in the S&P 500 Index have posted positive returns through September 30,
2000.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Due to the passive investment style of the Fund, it will remain fully
invested in the S&P 500 Index to provide as close tracking as possible to
the Index.
22
<PAGE>
GE S&P 500 INDEX FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
General Electric Co. 4.29%
--------------------------------------------------------------------------------
Cisco Systems Inc. 2.94%
--------------------------------------------------------------------------------
Microsoft Corp. 2.38%
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2.33%
--------------------------------------------------------------------------------
Pfizer Inc. 2.13%
--------------------------------------------------------------------------------
Intel Corp. 2.10%
--------------------------------------------------------------------------------
Citigroup Inc. 1.82%
--------------------------------------------------------------------------------
Oracle Systems Corp. 1.67%
--------------------------------------------------------------------------------
American International Group Inc. 1.66%
--------------------------------------------------------------------------------
EMC Corp. 1.62%
--------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
S&P 500 INDEX FUND S&P 500
4/28/00 10,000.00 10,000.00
5/00 9,810.00 9,791.70
6/00 10,040.00 10,031.20
7/00 9,890.00 9,874.82
8/00 10,500.00 10,488.04
9/00 9,940.00 9,934.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE S&P 500 Index -0.60%
S&P 500 -0.66%
INVESTMENT PROFILE
A mutual fund designed for investors who seek growth of capital and
accumulation of income that corresponds to the investment return of the
Standard & Poor's 500 Composite Stock Index by investing primarily in
equity securities of companies contained in the Index.
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
23
<PAGE>
GE S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE S&P 500 INDEX FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TECHNOLOGY 28.2%
CONSUMER STABLE 16.6%
FINANCIAL 14.8%
CONSUMER CYCLICAL 10.6%
UTILITIES 9.1%
CAPITAL GOODS 7.8%
ENERGY 5.5%
CASH & OTHER 5.2%*
BASIC MATERIALS 1.7%
TRANSPORTATION 0.5%
*INCLUDES CASH EQUALIZED BY FUTURES OF 5.1%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 94.8%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 1.7%
Air Products & Chemicals Inc. ....... 483 $ 17,388
Alcan Aluminum Ltd. ................. 463 13,398
Alcoa Inc. .......................... 1,850 46,828
Allegheny Technologies Inc. ......... 171 3,099
Avery Dennison Corp. ................ 236 10,944
Barrick Gold Corp. .................. 837 12,764
Bethlehem Steel Corp. ............... 239 717(a)
Boise Cascade Corp. ................. 104 2,763
Du Pont de Nemours (E.I.) & Co. ..... 2,255 93,442
Eastman Chemical Co. ................ 143 5,282
Ecolab Inc. ......................... 282 10,170
Engelhard Corp. ..................... 230 3,737
FMC Corp. ........................... 55 3,688(a)
Fort James Corp. .................... 451 13,784
Freeport McMoran Copper &
Gold Inc. (Class B) .............. 299 2,635(a)
Georgia Pacific Corp. ............... 412 9,682
Goodrich (B.F.) Co. ................. 201 7,877
Great Lakes Chemical Corp. .......... 105 3,078
Hercules Inc. ....................... 194 2,740
Homestake Mining Co. ................ 476 2,469
Inco Ltd. ........................... 351 5,660(a)
International Paper Co. ............. 1,024 29,376
Louisiana-Pacific Corp. ............. 194 1,782
Mead Corp. .......................... 187 4,371
Millipore Corp. ..................... 82 3,972
Newmont Mining Corp. ................ 306 5,202
Nucor Corp. ......................... 159 4,790
Pall Corp. .......................... 226 4,506
Phelps Dodge Corp. .................. 148 6,179
Placer Dome Inc. .................... 798 7,531
Potlatch Corp. ...................... 52 1,645
PPG Industries Inc. ................. 366 14,526
Praxair Inc. ........................ 322 12,035
Rohm & Haas Co. ..................... 456 13,252
Sealed Air Corp. .................... 188 8,507(a)
Sigma-Aldrich Corp. ................. 184 6,072
The Dow Chemical Co. ................ 1,488 37,107
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Union Carbide Corp. ................. 285 $ 10,759
USX-U.S. Steel Group Inc. ........... 161 2,445
W.R. Grace & Co. .................... 131 901(a)
Westvaco Corp. ...................... 183 4,884
Weyerhaeuser Co. .................... 492 19,864
Willamette Industries Inc. .......... 204 5,712
Worthington Industries Inc. ......... 163 1,528
479,091
CAPITAL GOODS -- 7.8%
Allied Waste Industries Inc. ........ 345 3,170(a)
American Power Conversion
Corp. ............................ 385 7,387(a)
Armstrong Holdings Inc. ............. 73 871
Boeing Co. .......................... 1,909 120,267
Briggs & Stratton Corp. ............. 42 1,588
Caterpillar Inc. .................... 746 25,177
Centex Corp. ........................ 108 3,470
Cooper Industries Inc. .............. 226 7,967
Crane Co. ........................... 120 2,745
Cummins Engine Co. Inc. ............. 75 2,245
Danaher Corp. ....................... 300 14,925
Deere & Co. ......................... 497 16,525
Dover Corp. ......................... 430 20,183
Eaton Corp. ......................... 162 9,983
Emerson Electric Co. ................ 905 60,635
Fluor Corp. ......................... 139 4,170
General Dynamics Corp. .............. 430 27,009
General Electric Co. ................ 21,220 1,224,129(h)
Grainger (W.W.) Inc. ................ 170 4,473
Honeywell International Inc. ........ 1,740 61,987
Illinois Tool Works Inc. ............ 639 35,704
Ingersoll-Rand Co. .................. 332 11,246
ITT Industries Inc. ................. 160 5,190
Kaufman & Broad Home Corp. .......... 87 2,344
Lockheed Martin Corp. ............... 944 31,114
Masco Corp. ......................... 957 17,824
McDermott International Inc. ........ 108 1,188
Minnesota Mining &
Manufacturing Co. ................ 856 78,003
Molex Inc. .......................... 415 22,592
National Service Industries Inc. .... 74 1,448
Navistar International Corp. Inc. ... 115 3,443(a)
Northrop Grumman Corp. .............. 151 13,722
PACCAR Inc. ......................... 143 5,300
Parker-Hannifin Corp. ............... 237 7,999
Pulte Corp. ......................... 79 2,607
Raytheon Co. (Class B) .............. 718 20,418
Rockwell International Corp. ........ 447 13,522
Sherwin-Williams Co. ................ 303 6,477
Textron Inc. ........................ 295 13,607
The Timken Co. ...................... 113 1,547
Thermo Electron Corp. ............... 389 10,114(a)
Thomas & Betts Corp. ................ 105 1,831
Tyco International Ltd. ............. 3,624 187,995
United Technologies Corp. ........... 1,016 70,358
Vulcan Materials Co. ................ 225 9,042
Waste Management Inc. ............... 1,321 23,035
2,216,576
---------
See Notes to Schedules of Investments and Financial Statements.
24
<PAGE>
GE S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
CONSUMER - CYCLICAL -- 10.6%
Albertsons Inc. ..................... 920 $ 19,320
American Greetings Corp.
(Class A) ........................ 118 2,065
Autozone Inc. ....................... 252 5,717(a)
Bed Bath & Beyond Inc. .............. 612 14,927(a)
Best Buy Co. Inc. ................... 438 27,868(a)
Black & Decker Corp. ................ 158 5,402
Block (H & R) Inc. .................. 279 10,340
Brunswick Corp. ..................... 168 3,066
Carnival Corp. ...................... 1,291 31,791
Cendant Corp. ....................... 1,559 16,954(a)
Circuit City Stores Inc. ............ 435 10,005
Clear Channel
Communications Inc. .............. 1,240 70,060(a)
Comcast Corp. (Class A) ............. 1,916 78,436(a)
Consolidated Stores Corp. ........... 202 2,727(a)
Cooper Tire & Rubber Co. ............ 138 1,389
Costco Wholesale Corp. .............. 947 33,086(a)
CVS Corp. ........................... 858 39,736
Dana Corp. .......................... 301 6,472
Darden Restaurants Inc. ............. 234 4,870
Delphi Automotive Systems Corp. ..... 1,197 18,105
Deluxe Corp. ........................ 134 2,722
Dillards Inc. (Class A) ............. 191 2,029
Dollar General Corp. ................ 703 11,775
Donnelley (R.R.) & Sons Co. ......... 231 5,674
Dow Jones & Co. Inc. ................ 191 11,556
Dun & Bradstreet Corp. .............. 394 13,568
Eastman Kodak Co. ................... 652 26,650
Federated Department Stores Inc. .... 460 12,017(a)
Ford Motor Co. ...................... 4,088 103,477(a)
Fortune Brands Inc. ................. 300 7,950
Gannett Co. Inc. .................... 558 29,574
Gap Inc. ............................ 1,802 36,265
General Motors Corp. ................ 1,136 73,840
Genuine Parts Co. ................... 325 6,195
Goodyear Tire & Rubber Co. .......... 331 5,958
Harcourt General Inc. ............... 161 9,499
Harley-Davidson Inc. ................ 641 30,688
Harrah's Entertainment Inc. ......... 235 6,463(a)
Hasbro Inc. ......................... 321 3,671
Hilton Hotels Corp. ................. 780 9,019
Home Depot Inc. ..................... 4,945 262,394
Interpublic Group Cos. Inc. ......... 652 22,209
J.C. Penney Co. Inc. ................ 554 6,544
Johnson Controls Inc. ............... 187 9,946
K Mart Corp. ........................ 890 5,340(a)
Knight-Ridder Inc. .................. 153 7,774
Kohl's Corp. ........................ 698 40,266(a)
Kroger Co. .......................... 1,805 40,725(a)
Leggett & Platt Inc. ................ 359 5,677
Limited Inc. ........................ 907 20,011
Liz Claiborne Inc. .................. 108 4,158
Longs Drug Stores Corp. ............. 71 1,358
Lowes Cos. Inc. ..................... 837 37,560
Marriott International Inc.
(Class A) ........................ 555 20,223
Mattel Inc. ......................... 869 9,722
May Department Stores Co. ........... 705 14,452
Maytag Corp. ........................ 154 4,784
McDonald's Corp. .................... 2,812 84,887
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
McGraw Hill Cos. Inc. ............... 406 $ 25,806
Meredith Corp. ...................... 94 2,773
New York Times Co. (Class A) ........ 413 16,236
Newell Rubbermaid Inc. .............. 565 12,889
Nike Inc. (Class B) ................. 586 23,477
Nordstrom Inc. ...................... 246 3,828
Office Depot Inc. ................... 602 4,703(a)
Omnicom Group Inc. .................. 376 27,424
Polaroid Corp. ...................... 81 1,088
RadioShack Corp. .................... 393 25,398
Reebok International Ltd. ........... 102 1,919(a)
Russell Corp. ....................... 60 953
Safeway Inc. ........................ 1,081 50,469(a)
Seagram Co. Ltd. .................... 950 54,566
Sears Roebuck & Co. ................. 732 23,731
Snap-on Inc. ........................ 107 2,521
Springs Industries Inc. ............. 32 902
Staples Inc. ........................ 1,053 14,939(a)
Starbucks Corp. ..................... 396 15,865(a)
Target Corp. ........................ 1,931 49,482
The Stanley Works ................... 163 3,759
The Walt Disney Co. ................. 4,457 170,480
Tiffany & Co. ....................... 330 12,726
Time Warner Inc. .................... 2,844 222,543
TJX Cos. Inc. ....................... 619 13,927
Toys `R Us Inc. ..................... 439 7,134(a)
Tribune Co. ......................... 641 27,964
Tricon Global Restaurants Inc. ...... 376 11,515(a)
TRW Inc. ............................ 249 10,116
Tupperware Corp. .................... 105 1,890
VF Corp. ............................ 216 5,333
Viacom Inc. (Class B) ............... 3,262 190,827(a)
Visteon Corp. ....................... 316 4,780
Wal-Mart Stores Inc. ................ 9,559 460,027(h)
Walgreen Co. ........................ 2,186 82,931
Wendy's International Inc. .......... 218 4,374
Whirlpool Corp. ..................... 136 5,287
Winn Dixie Stores Inc. .............. 267 3,838
Young & Rubicam Inc. ................ 159 7,871
3,015,247
CONSUMER - STABLE -- 16.6%
Abbott Laboratories ................. 3,314 157,622
Adolph Coors Co. (Class B) .......... 67 4,234
Aetna Inc. .......................... 294 17,070
Alberto-Culver Co. (Class B) ........ 101 2,910
Allergan Inc. ....................... 292 24,656
Alza Corp. .......................... 245 21,193(a)
American Home Products Corp. ........ 2,804 158,601
Amgen Inc. .......................... 2,214 154,599(a)
Anheuser Busch Cos. Inc. ............ 1,960 82,932
Archer-Daniels Midland Co. .......... 1,377 11,873
Avon Products Inc. .................. 494 20,192
Ball Corp. .......................... 55 1,743
Bard (C.R.) Inc. .................... 93 3,929
Bausch & Lomb Inc. .................. 105 4,088
Baxter International Inc. ........... 615 49,085
Becton Dickinson & Co. .............. 535 14,144
Bemis Co. Inc. ...................... 95 3,052
Bestfoods ........................... 587 42,704
Biogen Inc. ......................... 312 19,032(a)
Biomet Inc. ......................... 388 13,580
---------
See Notes to Schedules of Investments and Financial Statements.
25
<PAGE>
GE S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Boston Scientific Corp. ............. 853 $ 14,021(a)
Bristol-Myers Squibb Co. ............ 4,223 241,239
Brown-Forman Corp. (Class B) ........ 145 7,939
Campbell Soup Co. ................... 908 23,495
Cardinal Health Inc. ................ 589 51,942
CIGNA Corp. ......................... 347 36,227
Clorox Co. .......................... 492 19,465
Coca-Cola Co. ....................... 5,319 293,210
Coca-Cola Enterprises Inc. .......... 878 13,993
Colgate-Palmolive Co. ............... 1,250 59,000
Conagra Inc. ........................ 1,129 22,651
Crown Cork & Seal Inc. .............. 236 2,522
Eli Lilly & Co. ..................... 2,429 197,053
General Mills Inc. .................. 593 21,052
Gillette Co. ........................ 2,250 69,469
Guidant Corp. ....................... 652 46,088(a)
HCA-The Healthcare Corp. ............ 1,188 44,104
Healthsouth Corp. ................... 706 5,736(a)
Heinz (H.J.) Co. .................... 788 29,205
Hershey Foods Corp. ................. 281 15,209
Humana Inc. ......................... 306 3,290(a)
IMS Health Inc. ..................... 629 13,052
International Flavors &
Fragrances ....................... 192 3,504
Johnson & Johnson ................... 2,986 280,497
Kellogg Co. ......................... 874 21,140
Kimberly Clark Corp. ................ 1,172 65,412
Mallinckrodt Inc. ................... 125 5,703
Manor Care Inc. ..................... 188 2,949(a)
McKesson HBOC Inc. .................. 615 18,796
MedImmune Inc. ...................... 444 34,299(a)
Medtronic Inc. ...................... 2,583 133,832
Merck & Co. Inc. .................... 4,937 367,498
Nabisco Group Holdings Corp. ........ 696 19,836
Owens-Illinois Inc. ................. 274 2,535(a)
Pactiv Corp. ........................ 313 3,502(a)
PE Corp. - PE Biosystems Group ...... 443 51,609
Pepsico Inc. ........................ 3,090 142,140
Pfizer Inc. ......................... 13,537 608,319
Pharmacia Corp. ..................... 2,763 166,298
Philip Morris Cos. Inc. ............. 4,853 142,860
Procter & Gamble Co. ................ 2,814 188,538
Quintiles Transnational Corp. ....... 210 3,347(a)
Ralston-Ralston Purina Group ........ 653 15,468
Sara Lee Corp. ...................... 1,958 39,772
Schering Plough Corp. ............... 3,133 145,684
St. Jude Medical Inc. ............... 178 9,078(a)
Supervalu Inc. ...................... 255 3,841
Sysco Corp. ......................... 740 34,271
Temple-Inland Inc. .................. 102 3,863
Tenet Healthcare Corp. .............. 666 24,226(a)
The Quaker Oats Co. ................. 272 21,522
Unilever N.V. ....................... 1,243 59,975
UnitedHealth Group Inc. ............. 356 35,155
UST Inc. ............................ 313 7,160
Watson Pharmaceuticals Inc. ......... 217 14,078(a)
Wellpoint Health Networks Inc.
(Class A) ........................ 138 13,248(a)
Wrigley (W.M.) Junior Co. ........... 238 17,820
4,744,976
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ENERGY -- 5.5%
Amerada Hess Corp. .................. 186 $ 12,450
Anadarko Petroleum Corp. ............ 518 34,426
Apache Corp. ........................ 260 15,373
Ashland Oil Inc. .................... 129 4,346
Baker Hughes Inc. ................... 696 25,839
Burlington Resources Inc. ........... 451 16,602
Chevron Corp. ....................... 1,408 120,032
Conoco Inc. (Class B) ............... 1,310 35,288
Devon Energy Corp. .................. 270 16,241
Exxon Mobil Corp. ................... 7,469 665,675(h)
Halliburton Co. ..................... 940 46,001
Kerr-McGee Corp. .................... 204 13,515
Occidental Petroleum Corp. .......... 786 17,145
Phillips Petroleum Co. .............. 540 33,885
Rowan Cos. Inc. ..................... 200 5,800(a)
Royal Dutch Petroleum Co. ADR ....... 4,606 276,072
Schlumberger Ltd. ................... 1,227 100,997
Sunoco Inc. ......................... 165 4,445
Texaco Inc. ......................... 1,166 61,215
Tosco Corp. ......................... 325 10,136
Transocean Sedco Forex Inc. ......... 467 27,378
Unocal Corp. ........................ 517 18,321
USX-Marathon Group .................. 664 18,841
1,580,023
FINANCIAL -- 14.8%
AFLAC Inc. .......................... 562 36,003
Allstate Corp. ...................... 1,548 53,793
American Express Co. ................ 2,866 174,109
American General Corp. .............. 552 43,056
American International
Group Inc. ....................... 4,963 474,897
AmSouth Bancorp. .................... 834 10,425
Aon Corp. ........................... 543 21,313
Associates First Capital
Corp. (Class A) .................. 1,543 58,634
Bank of America Corp. ............... 3,533 185,041
Bank of New York Inc. ............... 1,573 88,186
Bank One Corp. ...................... 2,492 96,253
BB&T Corp. .......................... 838 25,245
Bear Stearns Cos. Inc. .............. 238 14,994
Capital One Financial Corp. ......... 414 29,006
Charles Schwab Corp. ................ 2,938 104,299
Charter One Financial Inc. .......... 420 10,238
Chase Manhattan Corp. ............... 2,820 130,249
Chubb Corp. ......................... 389 30,780
Cincinnati Financial Corp. .......... 346 12,283
CIT Group Inc. (Class A) ............ 556 9,730
Citigroup Inc. ...................... 9,627 520,460
Comerica Inc. ....................... 330 19,284
Conseco Inc. ........................ 598 4,560
Countrywide Credit
Industries Inc. .................. 242 9,136
Freddie Mac ......................... 1,506 81,418
Fannie Mae .......................... 2,170 155,155
Fifth Third Bancorp ................. 985 53,067
First Union Corp. ................... 2,085 67,111
Firstar Corp. ....................... 2,085 46,652
FleetBoston Financial Corp. ......... 1,918 74,802
---------
See Notes to Schedules of Investments and Financial Statements.
26
<PAGE>
GE S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Franklin Resources Inc. ............. 554 $ 24,614
Golden West Financial Corp. ......... 323 17,321
Hartford Financial Services
Group Inc. ....................... 475 34,645
Household International Inc. ........ 1,003 56,795
Huntington Bancshares Inc. .......... 532 7,814
Jefferson-Pilot Corp. ............... 211 14,322
J.P. Morgan & Co. Inc. .............. 346 56,528
KeyCorp. ............................ 918 23,237
Lehman Brothers Holdings Inc. ....... 257 37,972
Lincoln National Corp. .............. 426 20,501
Loews Corp. ......................... 209 17,425
Marsh & McLennan Cos. Inc. .......... 575 76,331
MBIA Inc. ........................... 202 14,367
MBNA Corp. .......................... 1,829 70,416
Mellon Financial Corp. .............. 1,027 47,627
Merrill Lynch & Co. Inc. ............ 2,101 138,666
MGIC Investment Corp. ............... 216 13,203
Morgan Stanley, Dean
Witter & Co. ..................... 2,418 221,096
National City Corp. ................. 1,314 29,072
Northern Trust Corp. ................ 473 42,038
Old Kent Financial Corp. ............ 290 8,392
PNC Financial Services Group ........ 612 39,780
Progressive Corp. ................... 150 12,281
Providian Financial Corp. ........... 303 38,481
Regions Financial Corp. ............. 500 11,344
Safeco Corp. ........................ 307 8,366
SouthTrust Corp. .................... 407 12,795
St. Paul Cos. Inc. .................. 496 24,459
State Street Corp. .................. 341 44,330(e)
Stilwell Financial Inc. ............. 472 20,532(a)
Summit Bancorp. ..................... 419 14,455
Suntrust Banks Inc. ................. 656 32,677
Synovus Financial Corp. ............. 612 12,967
T. Rowe Price Associates Inc. ....... 247 11,594
Torchmark Corp. ..................... 240 6,675
Union Planters Corp. ................ 316 10,448
U.S. Bancorp. ....................... 1,638 37,264
UnumProvident Corp. ................. 539 14,688
USA Education Inc. .................. 337 16,239
Wachovia Corp. ...................... 451 25,566
Washington Mutual Inc. .............. 1,141 45,426
Wells Fargo & Co. ................... 3,544 162,802
4,215,730
TECHNOLOGY -- 28.2%
Adaptec Inc. ........................ 190 3,800(a)
ADC Telecommunications Inc. ......... 1,495 40,201(a)
Adobe Systems Inc. .................. 254 39,434
Advanced Micro Devices Inc. ......... 701 16,561(a)
Agilent Technologies Inc. ........... 959 46,931(a)
Altera Corp. ........................ 843 40,253(a)
America Online Inc. ................. 4,959 266,546(a)
Analog Devices Inc. ................. 752 62,087(a)
Andrew Corp. ........................ 147 3,850(a)
Apple Computer ...................... 688 17,716(a)
Applied Materials Inc. .............. 1,750 103,797(a)
Autodesk Inc. ....................... 112 2,842
Automatic Data Processing Inc. ...... 1,357 90,749
BMC Software Inc. ................... 482 9,218(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Broadcom Corp. (Class A) ............ 479 $ 116,756(a)
Cabletron Systems Inc. .............. 433 12,719(a)
Ceridian Corp. ...................... 308 8,643(a)
Cisco Systems Inc. .................. 15,208 840,242(a,h)
Citrix Systems Inc. ................. 354 7,102(a)
Compaq Computer Corp. ............... 3,613 99,647
Computer Associates
International Inc. ............... 1,253 31,560
Computer Sciences Corp. ............. 356 26,433(a)
Compuware Corp. ..................... 773 6,474(a)
Comverse Technology Inc. ............ 343 37,044(a)
Conexant Systems Inc. ............... 472 19,765(a)
Convergys Corp. ..................... 326 12,673(a)
Corning Inc. ........................ 632 187,704
Dell Computer Corp. ................. 5,565 171,472(a)
Electronic Data Systems Corp. ....... 1,019 42,289
EMC Corp. ........................... 4,677 463,608(a)
Equifax Inc. ........................ 299 8,054
First Data Corp. .................... 863 33,711
Gateway Inc. ........................ 682 31,884(a)
Hewlett Packard Co. ................. 2,144 207,968
Intel Corp. ......................... 14,393 598,209(h)
International Business
Machines Corp. ................... 3,777 424,912
JDS Uniphase Corp. .................. 2,012 190,511(a)
KLA-Tencor Corp. .................... 394 16,228(a)
Lexmark International Inc.
(Class A) ........................ 270 10,125(a)
Linear Technology Corp. ............. 660 42,735
LSI Logic Corp. ..................... 648 18,954(a)
Lucent Technologies Inc. ............ 7,178 219,378
Maxim Integrated Products Inc. ...... 599 48,182(a)
Mercury Interactive Corp. ........... 169 26,491(a)
Micron Technology Inc. .............. 1,196 55,016(a)
Microsoft Corp. ..................... 11,280 680,325(a,h)
Motorola Inc. ....................... 4,697 132,690
National Semiconductor Corp. ........ 377 15,174(a)
NCR Corp. ........................... 203 7,676(a)
Network Appliance Inc. .............. 662 84,322(a)
Nortel Networks Corp. ............... 6,408 381,677
Novell Inc. ......................... 597 5,933(a)
Novellus Systems Inc. ............... 280 13,038(a)
Oracle Systems Corp. ................ 6,038 475,492(a,h)
Palm Inc. ........................... 1,195 63,260(a)
Parametric Technology Corp. ......... 503 5,502(a)
Paychex Inc. ........................ 788 41,370
PeopleSoft Inc. ..................... 591 16,511(a)
PerkinElmer Inc. .................... 111 11,586
Pitney Bowes Inc. ................... 524 20,665
QUALCOMM Inc. ....................... 1,608 114,570(a)
Sabre Holdings Corp. ................ 273 7,900
Sanmina Corp. ....................... 321 30,054(a)
Sapient Corp. ....................... 232 9,440(a)
Scientific-Atlanta Inc. ............. 355 22,587
Seagate Technology .................. 479 33,051(a)
Siebel Systems Inc. ................. 900 100,181(a)
Solectron Corp. ..................... 1,307 60,285(a)
Sun Microsystems Inc. ............... 3,404 397,417(a)
Tektronix Inc. ...................... 102 7,835
Tellabs Inc. ........................ 867 41,399(a)
Teradyne Inc. ....................... 356 12,460(a)
Texas Instruments Inc. .............. 3,718 175,443
---------
See Notes to Schedules of Investments and Financial Statements.
27
<PAGE>
GE S&P 500 INDEX FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Unisys Corp. ....................... 657 $ 7,391(a)
VERITAS Software Corp. ............. 867 123,114(a)
Xerox Corp. ........................ 1,382 20,816
Xilinx Inc. ........................ 696 59,595(a)
Yahoo! Inc. ........................ 1,185 107,835(a)
8,047,068
TRANSPORTATION -- 0.5%
AMR Corp. .......................... 370 12,095(a)
Burlington Northern
Santa Fe Corp. .................. 900 19,406
CSX Corp. .......................... 499 10,885
Delta Air Lines Inc. ............... 259 11,493
FedEx Corp. ........................ 623 27,624(a)
Norfolk Southern Corp. ............. 799 11,685
Ryder System Inc. .................. 108 1,991
Southwest Airlines Co. ............. 1,033 25,050
U.S. Airways Group Inc. ............ 130 3,957(a)
Union Pacific Corp. ................ 534 20,759
144,945
UTILITIES -- 9.1%
AES Corp. .......................... 971 66,513(a)
Alltel Corp. ....................... 668 34,861
Ameren Corp. ....................... 297 12,437
American Electric Power Inc. ....... 726 28,405
AT&T Corp. ......................... 8,072 237,115
Bellsouth Corp. .................... 4,035 162,409
CenturyTel Inc. .................... 298 8,121
CINergy Corp. ...................... 390 12,894
CMS Energy Corp. ................... 211 5,684
Coastal Corp. ...................... 454 33,653
Columbia Gas Systems Inc. .......... 174 12,354
Consolidated Edison Inc. ........... 464 15,834
Constellation Energy Group ......... 323 16,069
CP&L Inc. .......................... 392 16,342
Dominion Resources Inc. ............ 510 29,612
DTE Energy Co. ..................... 317 12,125
Duke Energy Corp. .................. 777 66,628
Eastern Enterprises ................ 49 3,127
Edison International ............... 727 14,040
El Paso Energy Corp. ............... 492 30,319
Enron Corp. ........................ 1,592 139,499
Entergy Corp. ...................... 451 16,800
FirstEnergy Corp. .................. 526 14,169
Florida Progress Corp. ............. 214 11,329
FPL Group Inc. ..................... 372 24,459
Global Crossing Ltd. ............... 1,869 57,939(a)
GPU Inc. ........................... 257 8,336
KeySpan Corp. ...................... 292 11,717
Nextel Communications Inc.
(Class A) ....................... 1,649 77,091(a)
Niagara Mohawk Holdings Inc. ....... 324 5,103(a)
Nicor Inc. ......................... 86 3,112
ONEOK Inc. ......................... 56 2,226
PECO Energy Co. .................... 359 21,742
Peoples Energy Corp. ............... 65 2,169
PG&E Corp. ......................... 849 20,535
Pinnacle West Capital Corp. ........ 179 9,107
PPL Corp. .......................... 324 13,527
Public Service Enterprise Group .... 455 20,333
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Qwest Communications
International Inc. .............. 3,574 $ 171,775(a)
Reliant Energy Inc. ................ 628 29,202
SBC Communications Inc. ............ 7,275 363,750
Sempra Energy ...................... 432 8,991
Southern Co. ....................... 1,380 44,764
Sprint Corp. (FON Group) ........... 1,873 54,902
Sprint Corp. (PCS Group) ........... 1,966 68,933(a)
TXU Corp. .......................... 605 23,973
Unicom Corp. ....................... 386 21,688
Verizon Communications ............. 5,839 282,827
Williams Cos. Inc. ................. 937 39,588
WorldCom Inc. ...................... 6,185 187,869(a)
Xcel Energy Inc. ................... 765 21,037
2,597,034
TOTAL INVESTMENTS IN SECURITIES
(COST $27,377,830) .............. 27,040,690
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.2%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund ................. 666,627 666,627
Money Market
Obligations Trust ............... 729,442 729,442
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
U.S. GOVERNMENT -- 0.3%
United States Treasury Bill
5.99% 12/14/00 ...............$100,000 98,790(d)
TOTAL SHORT-TERM INVESTMENTS
(COST $1,494,859) ............... 1,494,859
OTHER ASSETS AND LIABILITIES,
NET 0.0% ........................ (1,779)
-----------
NET ASSETS -- 100% ................. $28,533,770
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE S&P 500 Index Fund had the following long futures contracts open at
September 30, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE DEPRECIATION
--------------------------------------------------------------------------------
S&P 500 December 2000 4 $1,453,700 $(69,950)
----------
See Notes to Schedules of Investments and Financial Statements.
28
<PAGE>
GE GLOBAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PICTURED ON PAGE 34) MANAGES THE INTERNATIONAL EQUITY
INVESTMENT PROCESS AT GE ASSET MANAGEMENT. TOTAL ASSETS UNDER HIS MANAGEMENT
EXCEED $15 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 ASSET MANAGEMENT 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
ASSET MANAGEMENT'S ASSET ALLOCATION COMMITTEE. HE IS A HOLDER OF A CHARTERED
FINANCIAL ANALYST DESIGNATION, 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 34) 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 TEN YEARS OF INVESTMENT EXPERIENCE AND JOINED GE ASSET MANAGEMENT IN
1990. HE IS CURRENTLY A VICE PRESIDENT OF GE ASSET MANAGEMENT. MIKE IS A HOLDER
OF A CHARTERED FINANCIAL ANALYST DESIGNATION AND A MEMBER OF THE NEW YORK
SOCIETY OF SECURITY ANALYSTS. HE HOLDS A B.S. IN FINANCE FROM WESTERN NEW
ENGLAND COLLEGE AND AN M.B.A. FROM FORDHAM UNIVERSITY.
Q. HOW DID THE GE GLOBAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Global Equity Fund posted a return of 14.45% for the Class A Shares,
13.56% for the Class B Shares, 13.56% for the Class C Shares and 14.75% for
the Class Y Shares for the one-year period ended September 30, 2000, while
the MSCI World Index returned 8.15% for the same period.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE ONE-YEAR
PERIOD ENDED SEPTEMBER 30, 2000 AND HOW DID THEY IMPACT THE FUND?
A. The twelve-month period was one of two parts, the first half when the
markets were very strong, led by the technology, media and
telecommunications ("TMT") sectors and the second half during which many
stocks in these sectors lost most if not all of the gains they made earlier.
Thus, for the twelve-month period, the MSCI World Index rose 8.13%, but this
hides the fact that the Index rose 16.9% in the first three months but
declined in the following three three-month periods. Despite good
fundamentals in the non-TMT sectors, many stocks were ignored during the
first six months of this period and they have only recently started to
reflect their good underlying growth rates. It is interesting to note that
the only sector that consistently performed during the twelve-month period
was healthcare although the energy sector, boosted by strong crude oil
prices, also performed well.
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK FOR THE ONE-YEAR PERIOD
ENDED SEPTEMBER 30, 2000?
A. The Fund outperformed the MSCI World Index during the twelve-month period
ended September 30, 2000. The Fund avoided a great deal of the TMT meltdown
starting in the first quarter of 2000 which added value relative to the
Index. The best performing sectors for the Fund were the information
technology and telecommunications sectors. Continental Europe and the
Emerging Markets were the best regions, particularly in the information
technology and telecommunications sectors. The holdings that had the
greatest impact on performance were Sonera Oyj (Finland), EMC Corp (US),
Ericsson (Sweden), Vodafone (UK), Philips (Netherlands), Lagardere (France)
and Nortel Networks (Canada) all of which are TMT companies.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND RECENTLY BASED ON CURRENT MARKET
EVENTS?
A. The main activity during the period was in the first quarter when many of
the TMT stocks became very overvalued on our "price to cash earnings
relative to growth" measure which defines our buy and sell discipline. Many
of the TMT stocks became over-valued and their share prices rose to levels
that we considered as unsustainable, given their expected future growth.
Thus, we sold some of our largest holdings into this momentum driven market,
including Nortel Networks (Canada), Comverse Technology (Israel), Nokia
(Finland) and Telecom Italia Mobile (Italy). Stocks bought during the period
included RAS, the Italian Insurance Company; Aventis, the French Life
Sciences company; Nordic Baltic, the Swedish Banking group; BMW of Germany;
Duke Energy, a U.S. utility; and Schlumberger, a U.S. energy company.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. At the current time, relationships between Israel and the Palestinians have
deteriorated significantly which has caused further nervousness in the oil
market. This has exacerbated the situation in the oil industry, where stocks
in developed countries are low as we enter the Northern Hemisphere's winter
period. This has come about because of a lack of investment over the last
few years, when the price of a barrel of crude oil was at levels that made
capital investment unprofitable. Inflation expectations are rising, leading
to concerns that the U.S. Federal Reserve Board will, at best, keep rates at
current levels, causing the U.S.- and hence global- growth to slow. The
effect on overseas markets, especially those emerging markets that are
dependent on U.S. growth, will be significant unless European growth, which
is improving, can compensate for a slower U.S. growth outlook.
29
<PAGE>
GE GLOBAL EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Citigroup Inc. 2.33%
--------------------------------------------------------------------------------
SPDR Trust 2.13%
--------------------------------------------------------------------------------
Merck & Co. Inc. 2.00%
--------------------------------------------------------------------------------
Duke Energy Corp. 1.72%
--------------------------------------------------------------------------------
Pepsico Inc. 1.55%
--------------------------------------------------------------------------------
The Walt Disney Co. 1.54%
--------------------------------------------------------------------------------
Fannie Mae 1.52%
--------------------------------------------------------------------------------
EMC Corp. 1.48%
--------------------------------------------------------------------------------
Schlumberger Ltd. 1.45%
--------------------------------------------------------------------------------
SBC Communications Inc. 1.44%
--------------------------------------------------------------------------------
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 FUNDS PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 9/30/00
One Five
Year Year
------- -------
Number of
Funds in
peer group: 305 140
Peer group
average annual
total return: 20.93% 14.81%
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+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Global Equity Fund GE Global Equity Fund w/load MSCI World
2/22/93 10,000.00 9,425.00 10,000.00
10,405.58 9,805.76 10,576.80
9/93 11,409.58 10,751.88 11,744.20
12,615.25 11,888.04 12,006.81
9/94 13,038.67 12,287.06 12,631.91
12,646.61 11,917.60 13,126.17
9/95 14,012.70 13,204.94 14,450.99
14,798.50 13,945.44 15,754.10
9/96 15,615.16 14,715.02 16,426.49
16,167.68 15,235.68 17,228.07
9/97 18,553.20 17,483.68 20,387.13
20,128.56 18,968.23 22,733.25
9/98 16,539.00 15,585.56 20,414.83
21,406.49 20,172.53 25,607.49
9/99 22,640.97 21,335.85 26,431.84
28,553.08 26,907.17 31,206.53
9/00 25,912.28 24,418.59 28,586.36
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ------ ---------
GE Global Equity 14.45% 13.08% 13.33%
GE Global Equity w/load 7.86% 11.75% 12.45%
(maximum load-5.75%)
MSCI World 8.15% 14.62% 14.80%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 10,061.15
9/94 10,569.61 10,569.61 10,584.95
10,206.22 10,206.22 10,999.12
9/95 11,269.36 11,269.36 12,109.26
11,860.62 11,860.62 13,201.20
9/96 12,464.76 12,464.76 13,764.63
12,854.81 12,854.81 14,436.32
9/97 14,698.12 14,698.12 17,083.46
15,895.50 15,895.50 19,049.40
9/98 13,017.00 13,017.00 17,106.68
16,789.26 16,789.26 21,457.88
9/99 17,683.36 17,683.36 22,148.64
23,222.24 23,222.24 26,149.61
9/00 21,074.47 21,074.47 23,954.03
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ---- ---------
GE Global Equity 13.56% 12.25% 11.63%
GE Global Equity w/load 9.56% 12.25% 11.63%
(maximum load) 4.00% 0.00% 0.00%
MSCI World 8.15% 14.62% 13.76%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Global Equity Fund GE Global Equity Fund w/load MSCI World
9/30/99 10,000.00 10,000.00 10,000.00
10/99 11,308.99 11,308.99 10,518.40
11/99 10,822.63 10,822.63 10,812.92
12/99 12,106.23 12,106.23 11,686.82
1/00 11,610.75 11,610.75 11,015.99
2/00 11,979.07 11,979.07 11,044.41
3/00 12,562.24 12,462.24 11,806.42
4/00 12,058.00 11,958.00 11,305.82
5/00 11,922.07 11,822.07 11,018.20
6/00 12,364.93 12,264.93 11,387.31
7/00 11,961.53 11,861.53 11,065.40
8/00 12,123.77 12,023.77 11,424.02
9/00 11,356.44 11,256.44 10,815.12
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Global Equity 13.56% 13.56%
GE Global Equity w/load 12.56% 12.56%
(maximum load) 1.00% 1.00%
MSCI World 8.15% 8.15%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Global Equity Fund MSCI World
11/29/93 10,000.00 10,000.00
10,861.41 10,551.02
9/94 11,242.92 11,100.33
10,919.95 11,534.67
9/95 12,115.44 12,698.86
12,810.58 13,843.96
9/96 13,534.42 14,434.83
14,027.20 15,139.22
9/97 16,124.78 17,915.25
17,523.65 19,976.92
9/98 14,417.00 17,939.60
18,684.44 22,502.66
9/99 19,779.03 23,227.06
24,971.45 27,422.83
09/00 22,696.02 25,120.35
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ----- ---------
GE Global Equity 14.75% 13.38% 12.73%
MSCI World 8.15% 14.62% 14.41%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
30
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE GLOBAL EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
UNITED STATES 42.9%
EUROPE 31.4%
JAPAN 7.9%
PACIFIC RIM 5.0%
OTHER REGIONS 5.0%
CASH & OTHER 5.0%
OTHER INVESTMENT COMPANIES 2.8%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 91.4%
--------------------------------------------------------------------------------
AUSTRALIA -- 1.1%
Brambles Industries Ltd. ........... 27,542 $ 720,067
Cable & Wireless Optus Ltd. ........ 80,490 174,683(a)
894,750
BRAZIL -- 1.2%
Embraer - Empresa Brasileira de
Aeronautica S.A. ADR ............ 8,039 249,209(a)
Petroleo Brasileiro S.A. -
Petrobras ADR ................... 12,264 368,686(a)
Telecomunicacoes Brasileiras
S.A. ADR ........................ 1,372 108,560
Uniao de Bancos Brasileiros
S.A. GDR ........................ 8,120 267,960
994,415
CANADA -- 0.9%
ATI Technologies Inc. .............. 27,976 227,364(a)
Celestica Inc. ..................... 7,510 520,067(a)
CGI Group Inc. (Class A) ........... 5,965 46,302(a)
793,733
DENMARK -- 0.1%
GN Store Nord A/S .................. 410 58,254
FINLAND -- 1.0%
Sampo Insurance Co. Ltd.
(Series A) ...................... 12,500 611,997
Stora Enso Oyj ..................... 24,760 207,657
Tietoenator Oyj .................... 1,102 31,164
850,818
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
FRANCE -- 7.2%
Alcatel ............................ 4,227 $ 270,832
Alstom ............................. 34,108 788,238
Aventis S.A. ....................... 9,901 743,751
AXA-UAP ............................ 7,097 928,252
Banque Nationale de Paris .......... 5,996 529,366
Coflexip S.A. ADR .................. 2,480 154,380
Lagardere S.C.A. ................... 11,085 672,520
Lyonnaise Des Eaux S.A. ............ 2,011 312,258
Publicis Groupe .................... 3,102 94,867
Rhodia S.A. ........................ 7,046 76,653
Schneider S.A. ..................... 2,609 164,627
Total S.A. (Class B) ............... 5,821 852,926
Vivendi S.A. ....................... 5,779 430,025
6,018,695
GERMANY -- 3.8%
Bayer AG ........................... 7,144 266,114
Bayerische Hypo- und
Vereinsbank AG .................. 3,205 177,763
Bayerische Motoren Werke
(BMW) AG ........................ 12,537 429,334
Deutsche Bank AG ................... 6,139 508,354
Dresdner Bank AG ................... 14,356 631,565
Fresenius Medical Care AG .......... 4,934 446,943
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) ......... 1,702 508,400
Veba AG ............................ 4,589 236,437
3,204,910
GREECE -- 0.3%
Hellenic Telecommunication
Organization S.A. ADR ........... 10,384 96,052
Hellenic Telecommunication
Organization S.A. GDR ........... 9,550 182,999
279,051
HONG KONG -- 1.2%
Cheung Kong (Holdings) Ltd. ........ 26,918 324,542
Giordano International Ltd. ........ 332,000 192,689
Hutchison Whampoa Ltd. ............. 3,300 43,808
Johnson Electric Holdings Ltd. ..... 212,000 455,461
1,016,500
IRELAND -- 0.7%
Bank of Ireland .................... 26,806 214,397
CRH PLC ............................ 24,408 387,623
602,020
ISRAEL -- 1.4%
ECI Telecommunications Ltd. ........ 20,732 634,917
Teva Pharmaceutical Industries
Ltd. ADR ........................ 7,050 515,972
1,150,889
---------
See Notes to Schedules of Investments and Financial Statements.
31
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ITALY -- 1.6%
Banca Intesa S.p.A. ................ 119,048 $ 459,762
Riunione Adriatica di
Sicurta S.p.A ................... 36,344 478,573
Saipem ............................. 49,088 273,303
Telecom Italia S.p.A ............... 15,043 160,063
1,371,701
JAPAN -- 7.9%
Asahi Bank Ltd. .................... 15,024 61,994
Canon Inc. ......................... 24,000 1,065,974
Fujitsu Ltd. ....................... 37,000 861,143
ITOCHU Corp. ....................... 46,271 214,955(a)
Kao Corp. .......................... 18,144 496,312
Minebea Co. Ltd. ................... 61,000 715,518
Mizuho Holdings Inc. ............... 21 173,304(a)
Murata Manufacturing Co. Ltd. ...... 4,000 552,645
Nippon Telegraph and
Telephone Corp. (NTT) ........... 36 353,841
Shin-Etsu Chemical Co. ............. 12,000 506,282
Sony Corp. ......................... 6,900 701,229
The Tokyo Electric Power Co. Inc. .. 10,300 243,067
Toshiba Corp. ...................... 82,000 662,265
6,608,529
MEXICO -- 1.5%
Desc S.A. de C.V. (Series B) ....... 73,986 41,530
Desc S.A. de C.V. ADR .............. 7,636 78,746
Grupo Carso S.A. de C.V. ADR ....... 15,454 92,879(a)
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) .. 97,766 448,344(a)
Grupo Televisa S.A. GDR ............ 4,523 260,921(a)
Telefonos de Mexico S.A.
de C.V. ADR ..................... 5,544 294,871
1,217,291
NETHERLANDS -- 4.2%
ASM Lithography Holding N.V. ....... 12,341 410,079(a)
European Aeronautic Defence &
Space Co. ....................... 14,740 258,575(a)
Getronics N.V. ..................... 10,021 100,782
IHC Caland N.V. .................... 7,218 363,598
ING Groep N.V. ..................... 17,231 1,149,401
Ispat International N.V. (Regd.)
(Class A) ....................... 13,558 67,790
Koninklijke (Royal) Philips
Electronics N.V. ................ 20,201 870,673
Koninklijke Ahold N.V. ............. 9,111 258,706
3,479,604
POLAND -- 0.1%
Telekomunikacja Polska S.A. GDR
(Series A) ...................... 24,599 124,225(b)
PORTUGAL -- 0.1%
Banco Comercial Portugues
(Regd.) ......................... 16,757 88,114
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SINGAPORE -- 0.3%
Datacraft Asia Ltd. ................ 30,160 $ 250,328
SOUTH KOREA -- 1.3%
Kookmin Bank ....................... 3,482 41,528
Korea Electric Power (KEPCO)
Corp. ........................... 4,770 124,474
Korea Telecom Corp. ADR ............ 5,680 190,990
Korea Telecom Corp. ................ 1,912 114,533
Pohang Iron &
Steel Co. Ltd. .................. 2,680 199,471
Pohang Iron &
Steel Co. Ltd. ADR .............. 1,283 23,896
Samsung Electronics ................ 2,160 391,266
1,086,158
SPAIN -- 1.4%
Acciona S.A. ....................... 1,956 64,754
Repsol S.A. ........................ 9,942 183,193
Telefonica S.A. .................... 42,476 842,732(a)
Telefonica S.A. ADR ................ 792 47,074(a)
1,137,753
SWEDEN -- 1.0%
Investor AB (Series B) ............. 5,717 81,161
Invik & Co. AB ..................... 1,232 114,551
Kinnevik AB (Series B) ............. 2,394 54,528
NetCom AB (Series B) ............... 1,325 68,076(a)
Nordic Baltic Holding AB FDR ....... 36,817 260,947
Svenska Handelsbanken AB
(Series A) ...................... 4,973 80,168
Telefonaktiebolaget LM
Ericsson AB (Series B) .......... 9,141 139,278
798,709
SWITZERLAND -- 0.5%
ABB Ltd. ........................... 524 51,014
Credit Suisse AG ................... 1,833 343,093
394,107
TAIWAN -- 1.1%
Taiwan Semiconductor
Manufacturing Co. Ltd. .......... 274,000 909,805(a)
UNITED KINGDOM -- 8.6%
BAE Systems PLC .................... 210,076 1,133,988
Bank of Scotland ................... 20,189 177,652
Billiton PLC ....................... 32,849 117,443
BP Amoco PLC ADR ................... 19,975 1,058,675
CGNU PLC ........................... 61,405 871,794
Corus Group PLC .................... 85,600 64,880
Dimension Data Holdings PLC ........ 5,344 49,553(a)
Granada Compass PLC ................ 27,919 261,362(a)
Invensys PLC ....................... 357,470 781,099
Nycomed Amersham PLC ............... 55,808 547,616
Prudential PLC ..................... 14,021 191,390
---------
See Notes to Schedules of Investments and Financial Statements.
32
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Railtrack Group PLC ................ 9,650 $ 158,270
Reed International PLC ............. 33,594 266,793
Royal & Sun Alliance Insurance
Group PLC ....................... 84,592 565,466
Vodafone AirTouch PLC .............. 235,759 880,377
7,126,358
UNITED STATES -- 42.9%
American Express Co. ............... 16,543 1,004,987
Analog Devices Inc. ................ 10,268 847,752(a)
Cisco Systems Inc. ................. 18,538 1,024,225(a)
Citigroup Inc. ..................... 35,902 1,940,952
Colgate-Palmolive Co. .............. 19,821 935,551
Comcast Corp. (Class A) ............ 23,609 966,493(a)
Dell Computer Corp. ................ 16,169 498,207(a)
Dover Corp. ........................ 23,608 1,108,101
Duke Energy Corp. .................. 16,666 1,429,110
El Paso Energy Corp. ............... 13,054 804,453
Eli Lilly & Co. .................... 12,789 1,037,508
EMC Corp. .......................... 12,473 1,236,386(a)
Emerson Electric Co. ............... 17,287 1,158,229
Fannie Mae ......................... 17,667 1,263,191
First Data Corp. ................... 23,347 911,992
Home Depot Inc. .................... 20,330 1,078,761
Intel Corp. ........................ 27,620 1,147,956
Interpublic Group Cos. Inc. ........ 28,070 956,134
McDonald's Corp. ................... 30,310 914,983
Merck & Co. Inc. ................... 22,418 1,668,740
Microsoft Corp. .................... 2,222 134,014(a)
Morgan Stanley, Dean
Witter & Co. .................... 12,517 1,144,523
Pepsico Inc. ....................... 28,067 1,291,082
Pfizer Inc. ........................ 23,790 1,069,063
SBC Communications Inc. ............ 24,058 1,202,900
Schering Plough Corp. .............. 18,383 854,810
Schlumberger Ltd. .................. 14,681 1,208,430
SPDR Trust ......................... 12,376 1,777,503
Texas Instruments Inc. ............. 12,877 607,633
Textron Inc. ....................... 21,657 998,929
The Quaker Oats Co. ................ 11,466 907,247
The Walt Disney Co. ................ 33,467 1,280,113
Wal-Mart Stores Inc. ............... 14,960 719,950
Zebra Technologies Corp.
(Class A) ....................... 12,275 589,967(a)
35,719,875
TOTAL COMMON STOCK
(COST $69,748,517) .............. 76,176,592
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.8%
--------------------------------------------------------------------------------
GERMANY -- 0.8%
Fresenius Medical Care AG .......... 3,605 178,411
Henkel KGaA ........................ 7,837 473,112
TOTAL PREFERRED STOCK
(COST $614,894) ................. 651,523
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02 ........................ 46 $ 3,496(a)
Publicis SA-CVG, 03/07/02 .......... 3,102 5,976(a)
TOTAL WARRANTS
(COST $0) ....................... 9,472
--------------------------------------------------------------------------------
OTHER INVESTMENT COMPANIES -- 2.8%
--------------------------------------------------------------------------------
iShares EMU Index Fund ............. 12,181 878,555
iShares MSCI France ................ 12,928 319,968
iShares MSCI Germany ............... 10,811 208,787
iShares MSCI Japan ................. 34,915 462,624
iShares MSCI United Kingdom ........ 25,308 452,380
TOTAL OTHER INVESTMENT COMPANIES
(COST $2,339,996) ............... 2,322,314
TOTAL INVESTMENTS IN SECURITIES
(COST $72,703,407) .............. 79,159,901
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.8%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $4,005,275) ..............4,005,275 4,005,275
OTHER ASSETS AND LIABILITIES,
NET 0.2% ....................... 139,686
-----------
NET ASSETS-- 100% ................. $83,304,862
===========
--------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The GE Global Equity Fund invested in the following sectors at September 30,
2000:
PERCENT (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Finance 18.83%
Consumer Goods 16.28%
Information Technology 15.86%
Industrials 14.75%
Health Care 8.48%
Cash and Other 7.76%
Telecommunication Services 5.88%
Energy 4.92%
Utilities 4.30%
Materials 2.94%
---------
100.00%
=========
---------
See Notes to Schedules of Investments and Financial Statements.
33
<PAGE>
GE INTERNATIONAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PLEASE REFER TO PAGE 29 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 PERFORM COMPARED TO ITS BENCHMARK
FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE International Equity Fund posted a return of 10.50% for the Class A
Shares, 9.68% for the Class B Shares, 9.68% for the Class C Shares and
10.77% for the Class Y Shares for the one-year period ended September 30,
2000, while the MSCI EAFE Index returned 3.18% for the same period.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE ONE-YEAR
PERIOD ENDED SEPTEMBER 30, 2000 AND HOW DID THEY IMPACT THE FUND?
A. The twelve-month period was one of two parts, the first half when the
markets were very strong, led by the technology, media and
telecommunications ("TMT") sectors and the second half during which many
stocks in these sectors lost most if not all of the gains they made earlier.
Thus, for the twelve-month period, the MSCI EAFE Index rose just 3.18%, but
this hides the fact that the index rose 17% in the first three months but
declined in the following three three-month periods.
Despite good fundamentals in the non-TMT sectors, many stocks were ignored
during the first six months of this period and they have only recently
started to reflect their good underlying growth rates. It is interesting to
note that the only sector that consistently performed during the
twelve-month period was Healthcare although the energy sector, boosted be a
strong crude oil price, also preformed well.
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK FOR THE ONE-YEAR PERIOD
ENDED SEPTEMBER 30, 2000?
A. The Fund outperformed the MSCI EAFE Index during the twelve-month period
ending September 30, 2000. With the exception of the United Kingdom, where a
small number of large holdings underperformed, market and stock attribution
was positive across all regions with that for Continental Europe being
particularly strong. In addition, the contribution from the Emerging Markets
stocks and the Canadian holdings was particularly noteworthy. The holdings
that had the greatest impact on performance were Ericsson (Sweden), Vodafone
(UK), Philips (Netherlands), Lagardere (France) and Nortel Networks (Canada)
all of which are TMT companies.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND RECENTLY BASED ON CURRENT MARKET
EVENTS?
A. The main activity during the period was in the first quarter when many of
the TMT stocks became very overvalued on our "price to cash earnings
relative to growth" measure which defines our buy and sell discipline. Many
of the TMT stocks became over valued and their share prices rose to levels
that we considered as unsustainable given their expected future growth.
Thus, we sold some of our largest holdings into this momentum driven market,
including Nortel Networks (Canada), Comverse Technology (Israel), Nokia
(Finland) and Telecom Italia Mobile (Italy). Stocks bought during the period
included RAS, the Italian Insurance Company; Aventis, the French Life
Sciences company; Nordic Baltic, the Swedish Banking group; and BMW of
Germany.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. At the current time, relationships between Israel and the Palestinians have
deteriorated significantly which has caused further nervousness in the oil
market. This has exacerbated the situation in the oil industry, where stocks
in developed countries are low as we enter the Northern Hemisphere's winter
period. This has come about because of a lack of investment over the last
few years, when the price of a barrel of crude oil was at levels that made
capital investment unprofitable. Inflation expectations are rising, leading
to concerns that the U.S. Federal Reserve Board will, at best, keep rates at
current levels, causing the U.S.- and hence global- growth to slow. The
effect on overseas markets, especially those emerging markets that are
dependent on U.S. growth, will be significant unless European growth, which
is improving, can compensate for a slower U.S. growth outlook.
[PHOTO OMITTED]
(PICTURED LEFT TO RIGHT: M. SOLECKI, J. STUDER, R. LAYMAN, B. HOPKINSON)
34
<PAGE>
GE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
ING Groep N.V. 2.55%
--------------------------------------------------------------------------------
BAE Systems PLC 2.54%
--------------------------------------------------------------------------------
Canon Inc. 2.31%
--------------------------------------------------------------------------------
AXA-UAP 2.10%
--------------------------------------------------------------------------------
Vodafone AirTouch PLC 2.05%
--------------------------------------------------------------------------------
CGNU PLC 2.03%
--------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. Ltd. 2.03%
--------------------------------------------------------------------------------
Total S.A. (Class B) 2.00%
--------------------------------------------------------------------------------
Telefonica S.A. 1.97%
--------------------------------------------------------------------------------
Fujitsu Ltd. 1.96%
--------------------------------------------------------------------------------
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 FUNDS PEER GROUP BASED
ON AVERAGE ANNUAL TOTAL RETURNS FOR
THE PERIOD ENDED 9/30/00
One Five
Year Year
-------- --------
Number of
Funds in
peer group: 730 302
Peer group
average annual
total return: 12.81% 10.79%
Lipper categories
in peer group: INTERNATIONAL, CANADIAN,
INTERNATIONAL SMALL CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Int'l Equity Fund GE Int'l Equity Fund w/load MSCI EAFE
3/2/94 10,000.00 9,425.00 10,000.00
9,760.00 9,195.98 9,569.30
9/94 10,126.66 9,541.46 10,067.77
9,703.64 9,142.89 10,150.72
9/95 10,649.18 10,033.80 10,650.87
11,379.76 10,722.16 11,402.42
9/96 11,877.76 11,191.38 11,568.08
12,543.60 11,818.75 11,568.04
9/97 14,109.82 13,294.46 12,976.21
15,473.21 14,579.07 13,719.51
9/98 12,882.00 12,137.17 11,894.60
15,519.80 14,622.93 14,551.79
9/99 16,163.52 15,229.45 15,576.45
20,375.65 19,198.16 18,203.72
9/00 17,861.17 16,828.99 16,072.43
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
----- ----- ---------
GE International Equity 10.50% 10.90% 9.21%
GE International Equity w/load 4.14% 9.59% 8.23%
(maximum load-5.75%)
MSCI EAFE 3.18% 8.57% 7.47%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 9,569.30
9/94 10,086.65 10,086.65 10,067.77
9,629.36 9,629.36 10,150.72
9/95 10,523.58 10,523.58 10,650.87
11,210.92 11,210.92 11,402.42
9/96 11,658.03 11,658.03 11,568.08
12,257.71 12,257.71 11,568.04
9/97 13,740.18 13,740.18 12,976.21
15,011.34 15,011.34 13,719.51
9/98 12,450.00 12,450.00 11,894.60
14,946.19 14,946.19 14,551.79
9/99 15,508.21 15,508.21 15,576.45
19,472.12 19,472.12 18,203.72
9/00 17,009.17 17,009.17 16,072.43
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ----- ---------
GE International Equity 9.68% 10.08% 8.40%
GE International Equity w/load 5.68% 10.08% 8.40%
(maximum load) 4.00% 0.00% 0.00%
MSCI EAFE 3.18% 8.57% 7.47%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Int'l Equity Fund GE Int'l Equity Fund w/load MSCI EAFE
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,266.14 10,266.14 10,374.60
11/99 10,747.45 10,747.45 10,735.01
12/99 12,131.76 12,131.76 11,698.48
1/00 11,594.43 11,594.43 10,955.63
2/00 12,221.32 12,221.32 11,250.55
3/00 12,561.63 12,461.63 11,686.70
4/00 11,839.21 11,739.21 11,071.75
5/00 11,749.66 11,649.66 10,801.37
6/00 12,364.60 12,264.60 11,223.71
7/00 11,922.80 11,822.80 10,753.10
8/00 11,857.12 11,757.12 10,846.65
9/00 10,967.54 10,867.54 10,318.42
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
---- ---------
GE International Equity 9.68% 9.68%
GE International Equity w/load 8.68% 8.68%
(maximum load) 1.00% 1.00%
MSCI EAFE 3.18% 3.18%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Int'l Equity Fund MSCI EAFE
3/2/94 10,000.00 10,000.00
9,760.00 9,569.30
9/94 10,146.67 10,067.77
9,733.29 10,150.72
9/95 10,699.89 10,650.87
11,461.43 11,402.42
9/96 11,980.87 11,568.08
12,669.13 11,568.04
9/97 14,276.37 12,976.21
15,697.18 13,719.51
9/98 13,085.00 11,894.60
15,781.79 14,551.79
9/99 16,450.89 15,576.45
20,766.23 18,203.72
9/00 18,223.23 16,072.43
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
----- ----- ---------
GE International Equity 10.77% 11.24% 9.55%
MSCI EAFE 3.18% 8.57% 7.47%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
35
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE INTERNATIONAL EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
EUROPE 53.4%
JAPAN 14.3%
OTHER INVESTMENT COMPANIES 9.4%
OTHER REGIONS 9.4%
PACIFIC RIM 8.5%
CASH & OTHER 5.0%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 84.3%
--------------------------------------------------------------------------------
AUSTRALIA -- 2.1%
Brambles Industries Ltd. .......... 49,849 $ 1,303,268
Cable & Wireless Optus Ltd. ....... 155,512 337,500(a)
1,640,768
BRAZIL -- 2.2%
Embraer - Empresa Brasileira de
Aeronautica S.A. ADR ........... 12,663 392,553(a)
Petroleo Brasileiro S.A. -
Petrobras ADR .................. 22,488 676,046(a)
Telecomunicacoes
Brasileiras S.A. ADR ........... 2,074 164,105
Uniao de Bancos
Brasileiros S.A. GDR ........... 15,127 499,191
1,731,895
CANADA -- 2.1%
ATI Technologies Inc. ............. 42,518 345,549(a)
Celestica Inc. .................... 13,252 917,701(a)
CGI Group Inc. (Class A) .......... 56,725 440,312(a)
1,703,562
DENMARK -- 0.1%
GN Store Nord A/S ................. 659 93,632
FINLAND -- 1.7%
Sampo Insurance Co. Ltd.
(Series A) ..................... 21,411 1,048,277
Stora Enso Oyj .................... 38,024 318,899
1,367,176
FRANCE -- 12.8%
Alcatel ........................... 6,863 439,725
Alstom ............................ 58,210 1,345,236
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Aventis S.A. ...................... 18,798 $ 1,412,082
AXA-UAP ........................... 12,932 1,691,441
Banque Nationale de Paris ......... 11,475 1,013,089
Coflexip S.A. ADR ................. 3,644 226,839
Lagardere S.C.A. .................. 12,280 745,021
Lyonnaise Des Eaux S.A. ........... 3,967 615,975
Publicis Groupe ................... 4,701 143,751
Schneider S.A. .................... 5,327 336,132
Total S.A. (Class B) .............. 10,981 1,608,999
Vivendi S.A. ...................... 10,152 755,428
10,333,718
GERMANY -- 7.0%
Bayer AG .......................... 10,446 389,114
Bayerische Hypo- und
Vereinsbank AG ................. 6,633 367,894
Bayerische Motoren Werke
(BMW) AG ....................... 22,971 786,649
Deutsche Bank AG .................. 10,590 876,930
Dresdner Bank AG .................. 26,357 1,159,525
Fresenius Medical Care AG ......... 8,150 738,262
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) ........ 3,267 975,877
Veba AG ........................... 7,062 363,853
5,658,104
GREECE -- 0.2%
Hellenic Telecommunication
Organization S.A. ADR .......... 20,003 185,028
HONG KONG -- 2.3%
Cheung Kong (Holdings) Ltd. ....... 49,277 594,118
Giordano International Ltd. ....... 620,000 359,841
Hutchison Whampoa Ltd. ............ 6,600 87,616
Johnson Electric Holdings Ltd. .... 377,600 811,236
1,852,811
IRELAND -- 1.6%
Bank of Ireland ................... 69,864 558,766
CRH PLC ........................... 47,357 752,075
1,310,841
ISRAEL -- 2.6%
ECI Telecommunications Ltd. ....... 39,264 1,202,460
Teva Pharmaceutical Industries
Ltd. ADR ....................... 11,836 866,247
2,068,707
ITALY -- 2.9%
Banca Intesa S.p.A. ............... 219,752 848,679
Riunione Adriatica di
Sicurta S.p.A .................. 60,918 802,160
Saipem ............................ 97,612 543,467
Telecom Italia S.p.A .............. 15,380 163,649
2,357,955
---------
See Notes to Schedules of Investments and Financial Statements.
36
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
JAPAN -- 14.3%
Asahi Bank Ltd. ................... 22,024 $ 90,877
Canon Inc. ........................ 42,000 1,865,455
Fujitsu Ltd. ...................... 68,000 1,582,642
ITOCHU Corp. ...................... 90,226 419,150(a)
Kao Corp. ......................... 29,737 813,428
Minebea Co. Ltd. .................. 103,000 1,208,169
Mizuho Holdings Inc. .............. 44 363,114(a)
Murata Manufacturing Co. Ltd. ..... 4,000 552,645
Nippon Telegraph and Telephone
Corp. (NTT) .................... 68 668,367
Shin-Etsu Chemical Co. ............ 21,000 885,994
Sony Corp. ........................ 12,600 1,280,504
The Tokyo Electric Power Co. Inc. . 19,200 453,095
Toshiba Corp. ..................... 163,000 1,316,454
11,499,894
MEXICO -- 2.5%
Desc S.A. de C.V. (Series B) ...... 75,199 42,211
Desc S.A. de C.V. ADR ............. 15,224 156,998
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) . 174,208 798,899(a)
Grupo Televisa S.A. GDR ........... 9,031 520,976(a)
Telefonos de Mexico S.A.
de C.V. ADR .................... 9,292 494,218
2,013,302
NETHERLANDS -- 7.5%
ASM Lithography Holding N.V. ...... 22,064 733,164(a)
European Aeronautic Defence &
Space Co. ...................... 18,931 332,096(a)
Getronics N.V. .................... 19,298 194,081
IHC Caland N.V. ................... 13,102 659,997
ING Groep N.V. .................... 30,881 2,059,931
Ispat International N.V. (Regd.)
(Class A) ...................... 18,579 92,895
Koninklijke (Royal) Philips
Electronics N.V. ............... 35,456 1,528,171
Koninklijke Ahold N.V. ............ 16,411 465,988
6,066,323
POLAND -- 0.2%
Telekomunikacja Polska
S.A. GDR (Series A) ............ 37,171 187,713(b)
PORTUGAL -- 0.2%
Banco Comercial Portugues
(Regd.) ........................ 33,224 174,702
SINGAPORE -- 0.6%
Datacraft Asia Ltd. ............... 52,280 433,924
SOUTH KOREA -- 1.5%
Korea Electric Power
(KEPCO) Corp. .................. 7,140 186,319
Korea Telecom Corp. ADR ........... 2,393 80,465
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Pohang Iron &
Steel Co. Ltd. ................. 2,300 $ 171,188
Pohang Iron &
Steel Co. Ltd. ADR ............. 831 15,477
Samsung Electronics ............... 3,960 717,320
1,170,769
SPAIN -- 2.5%
Acciona S.A. ...................... 3,361 111,267
Repsol S.A. ....................... 14,914 274,808
Telefonica S.A. ................... 79,919 1,585,608(a)
Telefonica S.A. ADR ............... 1,084 64,430(a)
2,036,113
SWEDEN -- 1.6%
Investor AB (Series B) ............ 8,912 126,520
Invik & Co. AB .................... 1,729 160,762
NetCom AB (Series B) .............. 2,763 141,958(a)
Nordic Baltic Holding AB FDR ...... 74,153 525,572
Svenska Handelsbanken AB
(Series A) ..................... 7,768 125,225
Telefonaktiebolaget LM
Ericsson AB (Series B) ......... 14,031 213,785
1,293,822
SWITZERLAND -- 0.8%
ABB Ltd. .......................... 406 39,526
Credit Suisse AG .................. 3,307 618,990
658,516
TAIWAN -- 2.0%
Taiwan Semiconductor
Manufacturing Co. Ltd. ......... 492,080 1,633,930(a)
UNITED KINGDOM -- 13.0%
BAE Systems PLC ................... 379,932 2,050,868
Billiton PLC ...................... 57,379 205,144
CGNU PLC .......................... 115,368 1,637,931
Dimension Data Holdings PLC ....... 8,812 81,711(a)
Granada Compass PLC ............... 53,115 497,233(a)
Invensys PLC ...................... 667,795 1,459,183
Nycomed Amersham PLC .............. 95,393 936,044
Prudential PLC .................... 22,988 313,792
Railtrack Group PLC ............... 3,230 52,975
Reed International PLC ............ 67,456 535,715
Royal & Sun Alliance Insurance
Group PLC ...................... 162,252 1,084,595
Vodafone AirTouch PLC ............. 442,265 1,651,516
10,506,707
TOTAL COMMON STOCK
(COST $65,541,774) ............. 67,979,912
---------
See Notes to Schedules of Investments and Financial Statements.
37
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 1.3%
--------------------------------------------------------------------------------
GERMANY -- 1.3%
Fresenius Medical Care AG ......... 5,662 $ 280,212
Henkel KGaA ....................... 12,334 744,591
TOTAL PREFERRED STOCK
(COST $962,449) ................ 1,024,803
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02 ....................... 57 4,332(a)
Publicis SA-CVG, 03/07/02 ......... 4,701 9,057(a)
TOTAL WARRANTS
(COST $0) ...................... 13,389
--------------------------------------------------------------------------------
OTHER INVESTMENT COMPANIES -- 9.4%
--------------------------------------------------------------------------------
iShares EMU Index Fund ............ 12,624 910,506
iShares MSCI Australia ............ 16,631 157,995
iShares MSCI Canada ............... 34,117 550,137
iShares MSCI France ............... 47,503 1,175,699
iShares MSCI Germany .............. 38,166 737,081
iShares MSCI Hong Kong ............ 15,283 185,306
iShares MSCI Italy ................ 11,128 236,470
iShares MSCI Japan ................ 95,497 1,265,335
iShares MSCI Netherlands .......... 26,287 591,457
iShares MSCI South Korea .......... 11,682 191,293
iShares MSCI Spain ................ 8,195 199,753
iShares MSCI Taiwan ............... 12,259 173,158
iShares MSCI United Kingdom ....... 67,402 1,204,811
TOTAL OTHER INVESTMENT COMPANIES
(COST $7,635,013) .............. 7,579,001
TOTAL INVESTMENTS IN SECURITIES
(COST $74,139,236) ............. 76,597,105
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 9.2%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $7,451,103) ..............7,451,103 7,451,103
OTHER ASSETS AND LIABILITIES,
NET (4.2)% ..................... (3,414,364)
-----------
NET ASSETS-- 100% ................. $80,633,844
===========
--------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The GE International Equity Fund invested in the following sectors at September
30, 2000:
PERCENT (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Financial 23.08%
Information Technology 15.71%
Industrials 13.30%
Cash and Other 9.53%
Other Investment Companies 9.40%
Consumer Discretionary 7.95%
Telecommunication Services 7.22%
Healthcare 5.25%
Materials 4.43%
Energy 4.13%
---------
100.00%
=========
---------
See Notes to Schedules of Investments and Financial Statements.
38
<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 29 FOR MIKE'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE GE EUROPE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Europe Equity Fund posted a return of 27.95% for the Class A Shares,
27.01% for the Class B Shares, 27.04% for the Class C Shares and 28.39% for
the Class Y Shares for the one-year period ended September 30, 2000, while
the MSCI Europe Index returned 5.45% for the same period.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE ONE-YEAR
PERIOD ENDED SEPTEMBER 30, 2000 AND HOW DID THEY IMPACT THE FUND?
A. European markets have recently been weak following a strong performance in
early 2000 and late 1999. Market sentiment has been significantly impacted
by the high price of the UMTS cellular licenses for which European telephone
companies have been paying, and by the rising price of oil. The political
implications of rising oil prices during the year were significant, given
the already high prices because of the substantial petroleum taxes imposed
by European governments. Public demonstrations led to distribution problems
in France, the United Kingdom and Germany, causing a loss of popularity for
their governments and leading to promises to ease taxes. Sentiment was
further dampened by the weakening Euro which fell to a low of 0.84 against
the U.S. dollar in mid-September, before rallying slightly to end the
quarter at 0.88. Since its launch in January 1999, the Euro has fallen 26%.
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK FOR THE ONE-YEAR PERIOD
ENDED SEPTEMBER 30, 2000?
A. The Fund outperformed the MSCI Europe Index during the twelve-month period
ended September 30, 2000. Over the last twelve months, the consumer
discretionary, information technology and telecommunication services sectors
were the three major performance drivers for the Fund. The holdings that had
the greatest impact on performance were Thomson Multimedia, Ericsson, Epcos
and Mannesmann.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. Restructuring at the corporate and fiscal level continues. Of note is the
discussion of tax reform, which will lead to lower corporate and personal
tax rates in France and Germany, and the removal of a tax liability on the
sale of cross shareholdings in Germany. Corporate activity continues to be
high, boosted by some significant acquisitions including Seagrams by
Vivendi, Paine Webber by UBS, Snapple by Cadbury and Voice-stream by
Deutsche Telecom - interestingly many of the transactions involve European
companies buying U.S. assets despite the weak Euro.
[PHOTO OMITTED]
(PICTURED LEFT TO RIGHT: C. SALDANHA, W. CHU, M. SOLECKI)
39
<PAGE>
GE EUROPE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Aventis S.A. 3.15%
--------------------------------------------------------------------------------
BAE Systems PLC 2.84%
--------------------------------------------------------------------------------
iShares MSCI France 2.80%
--------------------------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. 2.80%
--------------------------------------------------------------------------------
iShares MSCI United Kingdom 2.79%
--------------------------------------------------------------------------------
Invensys PLC 2.78%
--------------------------------------------------------------------------------
Royal & Sun Alliance Insurance
Group PLC 2.64%
--------------------------------------------------------------------------------
ING Groep N.V. 2.54%
--------------------------------------------------------------------------------
Koninklijke Ahold N.V. 2.39%
--------------------------------------------------------------------------------
Vivendi S.A. 2.37%
--------------------------------------------------------------------------------
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.
* LIPPER PERFORMANCE COMPARISON
EUROPE EQUITY PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/00
One Year
----------
Number of
Funds in
peer group: 150
Peer group
average annual
total return: 19.46%
Lipper categories
in peer group: EUROPE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Europe Equity GE Europe Equity w/load MSCI Europe
1/29/99 10,000.00 9,425.00 10,000.00
9,470.00 8,925.47 9,746.20
3/99 9,620.00 9,066.85 9,852.43
9,910.00 9,340.17 10,146.04
9,380.00 8,840.65 9,658.72
6/99 9,670.00 9,113.97 9,821.76
10,120.00 9,538.10 9,913.01
10,240.00 9,651.20 10,013.72
9/99 9,930.00 9,359.10 9,936.52
10,160.00 9,575.87 10,302.18
11,120.00 10,480.68 10,580.03
12/99 12,756.07 12,022.68 11,664.48
12,766.13 12,032.17 10,833.97
14,768.07 13,919.01 11,398.96
3/00 14,476.33 13,644.04 11,674.24
13,641.35 12,857.07 11,158.94
13,570.93 12,790.70 11,067.66
6/00 13,993.45 13,188.92 11,305.62
13,711.77 12,923.44 11,124.95
13,500.51 12,724.32 10,993.68
9/00 12,705.77 11,975.28 10,479.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Europe Equity 27.95% 15.40%
GE Europe Equity w/load 20.55% 11.38%
(maximum load-5.75%)
MSCI Europe 5.45% 2.84%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Europe Equity GE Europe Equity w/load MSCI Europe
1/29/99 10,000.00 10,000.00 10,000.00
9,470.00 9,470.00 9,746.20
3/99 9,610.00 9,610.00 9,852.43
9,890.00 9,890.00 10,146.04
9,360.00 9,360.00 9,658.72
6/99 9,640.00 9,640.00 9,821.76
10,080.00 10,080.00 9,913.01
10,200.00 10,200.00 10,013.72
9/99 9,880.00 9,880.00 9,936.52
10,100.00 10,100.00 10,302.18
11,050.00 11,050.00 10,580.03
12/99 12,668.68 12,668.68 11,664.48
12,668.68 12,668.68 10,833.97
14,641.59 14,641.59 11,398.96
3/00 14,351.16 14,051.16 11,674.24
13,509.92 13,209.92 11,158.94
13,439.82 13,139.82 11,067.66
6/00 13,850.43 13,550.43 11,305.62
13,560.00 13,260.00 11,124.95
13,339.67 13,069.37 10,993.68
9/00 12,548.51 12,248.51 10,479.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Europe Equity 27.01% 14.54%
GE Europe Equity w/load 23.01% 12.90%
(maximum load) 4.00% 3.00%
MSCI Europe 5.45% 2.84%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Europe Equity GE Europe Equity w/load MSCI Europe
9/30//99 10,000.00 10,000.00 10,000.00
10/99 10,222.67 10,222.67 10,368.00
11/99 11,184.21 11,184.21 10,647.62
12/99 12,816.29 12,816.29 11,739.01
1/00 12,826.47 12,826.47 10,903.19
2/00 14,821.70 14,821.70 11,471.79
3/00 14,526.48 14,426.48 11,748.83
4/00 13,681.57 13,581.57 11,230.24
5/00 13,600.13 13,500.13 11,138.37
6/00 14,017.50 13,917.50 11,377.85
7/00 13,722.29 13,622.29 11,196.03
8/00 13,508.51 13,408.51 11,063.92
9/00 12,704.31 12,604.31 10,546.12
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Europe Equity 27.04% 27.04%
GE Europe Equity w/load 26.04% 26.04%
(maximum load) 1.00% 1.00%
MSCI Europe 5.45% 5.45%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Europe Equity MSCI Europe
1/29/99 10,000.00 10,000.00
9,470.00 9,746.20
3/99 9,630.00 9,852.43
9,920.00 10,146.04
9,390.00 9,658.72
6/99 9,680.00 9,821.76
10,130.00 9,913.01
10,250.00 10,013.72
9/99 9,940.00 9,936.52
10,180.00 10,302.18
11,140.00 10,580.03
12/99 12,781.85 11,664.48
12,791.92 10,833.97
14,806.40 11,398.96
3/00 14,514.30 11,674.24
13,678.29 11,158.94
13,617.86 11,067.66
6/00 14,040.90 11,305.62
13,768.94 11,124.95
13,557.42 10,993.68
9/00 12,761.70 10,479.17
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Europe Equity 28.39% 15.70%
MSCI Europe 5.45% 2.84%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
40
<PAGE>
GE EUROPE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE EUROPE EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
DEVELOPED EUROPE 81.8%
OTHER INVESTMENT COMPANIES 9.5%
CASH & OTHER 6.9%
EMERGING EUROPE 1.8%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 83.6%
--------------------------------------------------------------------------------
DENMARK -- 0.4%
GN Store Nord A/S ................... 233 $ 33,105
Novo-Nordisk A/S (Series B) ......... 168 37,297
70,402
FINLAND -- 1.4%
Sampo Insurance Co. Ltd.
(Series A) ....................... 4,627 226,537
FRANCE -- 18.6%
Alcatel ............................. 2,552 163,511
Alstom .............................. 15,344 354,601
Aventis S.A. ........................ 6,917 519,596
AXA-UAP ............................. 2,426 317,309
Banque Nationale de Paris ........... 1,844 162,801
Lagardere S.C.A. .................... 5,310 322,155
Schneider S.A. ...................... 1,178 74,331
Studio Canal ........................ 9,553 97,933(a)
Thomson Multimedia .................. 5,251 264,512(a)
Total S.A. (Class B) ................ 2,496 365,728
Unilog S.A. ......................... 251 27,949
Vivendi S.A. ........................ 5,241 389,992
3,060,418
GERMANY -- 11.0%
AMB Aachener & Muenchener
Beteiligungs AG .................. 66 5,792
Bayer AG ............................ 848 31,588
Bayerische Motoren Werke
(BMW) AG ......................... 3,260 111,640
Dresdner Bank AG .................... 7,429 326,824
Epcos AG ............................ 3,776 308,009(a)
Ergo Versicherungs Gruppe AG ........ 1,286 193,092
Fresenius Medical Care AG ........... 3,024 273,927
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) .......... 786 234,784
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Suess MicroTec AG ................... 2,862 $ 93,078(a)
Techem AG ........................... 9,701 240,051(a)
1,818,785
GREECE -- 1.8%
Antenna TV S.A. ADR ................. 13,412 295,064(a)
IRELAND -- 3.4%
Bank of Ireland ..................... 34,506 275,981
CRH PLC ............................. 11,206 177,962
Irish Life & Permanent PLC .......... 3,724 36,893
Jefferson Smurfit Group PLC ......... 41,974 72,628
563,464
ITALY -- 3.6%
Banca Intesa S.p.A. ................. 73,459 283,698
Banca Popolare di Verona ............ 2,982 35,182
Riunione Adriatica di
Sicurta S.p.A .................... 6,422 84,564
Saipem .............................. 8,825 49,134
Telecom Italia S.p.A ................ 14,048 149,475
602,053
NETHERLANDS -- 15.0%
ASM Lithography Holding N.V. ........ 6,934 230,410(a)
Fox Kids Europe N.V. ................ 19,422 326,120(a)
Getronics N.V. ...................... 21,975 221,004
IHC Caland N.V. ..................... 5,227 263,303
ING Groep N.V. ...................... 6,277 418,710
Koninklijke (Royal) KPN N.V. ........ 6,995 152,568
Koninklijke (Royal) Philips
Electronics N.V. ................. 10,709 461,563
Koninklijke Ahold N.V. .............. 13,884 394,234
2,467,912
NORWAY -- 0.2%
Sparebanken NOR ..................... 1,537 37,358
PORTUGAL -- 1.7%
PT MULTIMEDIA - Servicos de
Telecomunicacoes e Multimedia
SGPS S.A. ........................ 2,526 92,643(a)
Telecel-Comunicacoes
Pessoais S.A. .................... 14,706 184,679(a)
277,322
SPAIN -- 1.4%
Corporacion Mapfre, Compania
Internacional de
Reaseguros S.A. .................. 1,029 16,141
Telefonica S.A. ..................... 10,725 212,786(a)
228,927
SWEDEN -- 1.1%
LGP Telecom Holding AB .............. 5,196 126,995
Telefonaktiebolaget LM
Ericsson AB (Series B) ........... 2,105 32,073
---------
See Notes to Schedules of Investments and Financial Statements.
41
<PAGE>
GE EUROPE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Telelogic AB ...................... 3,333 $ 26,692(a)
185,760
SWITZERLAND -- 6.0%
Credit Suisse AG .................. 518 96,957
Leica Geosystems AG ............... 673 210,989(a)
Sulzer AG (Regd.) ................. 503 292,068(a)
Unaxis Holding AG (Regd.) ......... 1,378 384,896(a)
984,910
UNITED KINGDOM -- 18.0%
BAE Systems PLC ................... 86,797 468,529
Bank of Scotland .................. 1,310 11,527
Cable & Wireless PLC .............. 23,289 332,366
CGNU PLC .......................... 19,643 278,880
Cobham PLC ........................ 2,342 36,783
Corus Group PLC ................... 124,032 94,008
Dialog Semiconductor PLC .......... 578 20,177(a)
Horizon Technology Group PLC ...... 2,036 17,094(a)
Invensys PLC ...................... 209,415 457,588
Nycomed Amersham PLC .............. 13,013 127,690
Prudential PLC .................... 6,487 88,549
Railtrack Group PLC ............... 180 2,952
Reed International PLC ............ 35,719 283,669
Royal & Sun Alliance Insurance
Group PLC ...................... 65,179 435,698
Somerfield PLC .................... 6,823 7,972
Standard Chartered PLC ............ 3,348 48,771
Tesco PLC ......................... 6,119 22,488
Vodafone AirTouch PLC ............. 62,976 235,167
2,969,908
TOTAL COMMON STOCK
(COST $13,138,653) ............. 13,788,820
--------------------------------------------------------------------------------
OTHER INVESTMENT COMPANIES -- 9.5%
--------------------------------------------------------------------------------
iShares MSCI France ............... 18,670 462,082
iShares MSCI Germany .............. 15,362 296,679
iShares MSCI Italy ................ 6,302 133,918
iShares MSCI Spain ................ 4,224 102,960
iShares MSCI Sweden ............... 5,071 111,245
iShares MSCI United Kingdom ....... 25,716 459,673
TOTAL OTHER INVESTMENT COMPANIES
(COST $1,581,148) .............. 1,566,557
TOTAL INVESTMENTS IN SECURITIES
(COST $14,719,801) ............. 15,355,377
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.9%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $636,774) ................ 636,774 636,774
OTHER ASSETS AND LIABILITIES,
NET 3.0% ....................... 493,726
-----------
NET ASSETS-- 100% ................. $16,485,877
===========
--------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The GE Europe Equity Fund invested in the following sectors at September 30,
2000:
PERCENT (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Financial 21.93%
Industrials 15.15%
Consumer Discretionary 13.12%
Cash and Other 11.51%
Information Technology 9.99%
Other Investment Companies 9.50%
Telecommunication Services 7.89%
Healthcare 5.81%
Consumer Staples 2.58%
Energy 2.52%
---------
100.00%
=========
---------
See Notes to Schedules of Investments and Financial Statements.
42
<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 29 FOR RALPH'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE GE EMERGING MARKETS FUND PERFORM COMPARED TO ITS BENCHMARK FOR
THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Emerging Markets Fund posted a return of 15.27% for the Class A
Shares, 14.41% for the Class B Shares, 13.56% for the Class C Shares and
15.56% for the Class Y Shares for the one-year period ended September 30,
2000, while the MSCI EMF Index returned 0.42% for the same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK FOR THE ONE-YEAR PERIOD ENDED
SEPTEMBER 30, 2000?
A. The Fund outperformed due to its superior stock selection. Our gains in
Latin America were led by our holdings in the Mexican banks. Mexico's
financial system has required nearly five years to repair itself following
the nation's currency devaluation in 1994. Institutions such as Bannaci and
Bancomer are now relatively healthy, and we expect stronger loan growth and
better profitability from these groups going forward. In Asia, we continue
to make money on several of our Indian software names. Also, the Chinese
market has performed well. Among our Chinese stocks, Huaneng Power, an
electric utility, and China Mobile, a cellular telephony provider, added the
most value.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. Our strategy remains to invest in the best companies in our asset class. It
is our view that there is a new generation of firms emerging in our
universe. These newer companies are run by entrepreneurs, they can compete
globally, and they are in some of world's best growth industries. Some
examples would include Embraer, a Brazilian regional jet maker, or Datacraft
Asia, a telecom systems integrator. We expect to find other companies like
these in the future, and believe that our efforts will ultimately prove
rewarding to our shareholders.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Going forward, we expect investors to wait for a clearer indication of
global economic growth before returning to the asset class. At these levels,
however, emerging stocks look compelling. We have recently been reducing our
cash holdings, as we are finding several attractive bottoms-up ideas.
[PHOTO OMITTED]
(PICTURED LEFT TO RIGHT: D. MOTOYOSHI, P. NESTRO, P. GILLESPIE, M. SUMINO,
P. ZHOU)
43
<PAGE>
GE EMERGING MARKETS FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Telefonos de Mexico S.A. de C.V. ADR 2.83%
--------------------------------------------------------------------------------
Satyam Computer Services Ltd. 2.60%
--------------------------------------------------------------------------------
UTI India IT Fund 2.49%
--------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. Ltd. 2.34%
--------------------------------------------------------------------------------
Mastek Ltd. 1.98%
--------------------------------------------------------------------------------
Korea Electric Power (KEPCO) Corp. 1.94%
--------------------------------------------------------------------------------
Pohang Iron & Steel Co. Ltd. ADR 1.88%
--------------------------------------------------------------------------------
Kookmin Bank 1.88%
--------------------------------------------------------------------------------
Samsung Electronics 1.80%
--------------------------------------------------------------------------------
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) 1.60%
--------------------------------------------------------------------------------
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.
* LIPPER PERFORMANCE COMPARISON
EMERGING MARKETS PEER GROUP BASED ON
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED
9/30/00
One Year
----------
Number of
Funds in
peer group: 188
Peer group
average annual
total return: 8.74%
Lipper categories
in peer group: EMERGING MARKETS
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Emerging Markets GE Emerging Markets w/load MSCI EMF
1/29/99 10,000.00 9,425.00 10,000.00
9,840.00 9,274.20 10,097.30
3/99 11,180.00 10,537.15 11,428.02
11,980.00 11,291.15 12,841.90
12,080.00 11,385.40 12,767.16
6/99 13,170.00 12,412.72 14,216.10
12,980.00 12,233.65 13,829.85
13,120.00 12,365.60 13,955.70
9/99 13,470.00 12,695.57 13,483.44
14,030.00 13,223.37 13,770.50
16,310.00 15,372.29 15,005.17
12/99 19,732.64 18,598.16 16,913.53
19,721.94 18,588.07 17,015.01
21,990.55 20,726.25 17,239.77
3/00 21,562.51 20,322.82 17,323.91
18,063.29 17,024.78 15,681.78
16,500.94 15,552.25 15,033.49
6/00 17,742.26 16,722.20 15,562.67
16,832.67 15,864.91 14,762.28
17,292.81 16,298.60 14,834.62
9/00 15,527.15 14,634.45 13,539.55
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Emerging Markets 15.27% 30.10%
GE Emerging Markets w/load 8.66% 25.57%
(maximum load-5.75%)
MSCI EMF 0.42% 19.88%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Emerging Markets GE Emerging Markets w/load MSCI EMF
1/29/99 10,000.00 10,000.00 10,000.00
9,840.00 9,840.00 10,097.30
3/99 11,160.00 11,160.00 11,428.02
11,960.00 11,960.00 12,841.90
12,050.00 12,050.00 12,767.16
6/99 13,140.00 13,140.00 14,216.10
12,930.00 12,930.00 13,829.85
13,060.00 13,060.00 13,955.70
9/99 13,400.00 13,400.00 13,483.44
13,950.00 13,950.00 13,770.50
16,210.00 16,210.00 15,005.17
12/99 19,591.15 19,591.15 16,913.53
19,580.45 19,580.45 17,015.01
21,817.91 21,817.91 17,239.77
3/00 21,378.98 21,078.98 17,323.91
17,899.68 17,599.68 15,681.78
16,336.67 16,036.67 15,033.49
6/00 17,557.10 17,257.10 15,562.67
16,647.13 16,347.13 14,762.28
17,096.76 16,796.76 14,834.62
9/00 15,330.35 15,030.35 13,539.55
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ --------
GE Emerging Markets 14.41% 29.11%
GE Emerging Markets w/load 10.41% 27.60%
(maximum load) 4.00% 3.00%
MSCI EMF 0.42% 19.88%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Emerging Markets GE Emerging Markets w/load MSCI EMF
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,325.93 10,325.93 10,212.90
11/99 12,000.00 12,000.00 11,128.59
12/99 14,511.97 14,511.97 12,543.92
1/00 14,496.11 14,496.11 12,619.19
2/00 16,153.48 16,153.48 12,785.89
3/00 15,828.35 15,728.35 12,848.28
4/00 13,251.09 13,151.09 11,630.39
5/00 12,101.23 12,001.23 11,149.59
6/00 13,005.26 12,905.26 11,542.06
7/00 12,323.28 12,223.28 10,948.45
8/00 12,656.34 12,556.34 11,002.10
9/00 11,355.81 11,255.81 10,041.62
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Emerging Markets 13.56% 13.56%
GE Emerging Markets w/load 12.56% 12.56%
(maximum load) 1.00% 1.00%
MSCI EMF 0.42% 0.42%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Emerging Markets MSCI EMF
1/29/99 10,000.00 10,000.00
9,850.00 10,097.30
3/99 11,180.00 11,428.02
11,990.00 12,841.90
12,090.00 12,767.16
6/99 13,190.00 14,216.10
12,990.00 13,829.85
13,140.00 13,955.70
9/99 13,490.00 13,483.44
14,050.00 13,770.50
16,340.00 15,005.17
12/99 19,772.11 16,913.53
19,772.11 17,015.01
22,051.04 17,239.77
3/00 21,623.08 17,323.91
18,124.44 15,681.78
16,562.36 15,033.49
6/00 17,814.16 15,562.67
16,894.03 14,762.28
17,364.80 14,834.62
9/00 15,588.73 13,539.55
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Emerging Markets 15.56% 30.41%
MSCI EMF 0.42% 19.88%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
44
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE EMERGING MARKETS FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
PACIFIC RIM 41.9%
OTHER REGIONS 40.7%
EUROPE 11.3%
CASH & OTHER 6.1%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 90.1%
--------------------------------------------------------------------------------
ARGENTINA -- 0.3%
Impsat Fiber Networks Inc. ......... 3,500 $ 38,500(a)
Telecom Argentina S.A. ADR ......... 1,358 29,367
67,867
BRAZIL -- 4.9%
Aracruz Celulose S.A. ADR .......... 2,853 47,253
Brasil Telecom Participacoes
S.A. ADR ........................ 1,835 106,889
Embraer - Empresa Brasileira de
Aeronautica S.A. ................ 28,001 214,224
Embraer - Empresa Brasileira de
Aeronautica S.A. ADR ............ 3,331 103,261(a)
Petroleo Brasileiro S.A. ADR ....... 1,644 46,648
Petroleo Brasileiro S.A. -
Petrobras ADR ................... 5,869 176,437(a)
Telecomunicacoes Brasileiras
S.A. ADR ........................ 4,221 333,987
Ultrapar Participacoes S.A. ADR .... 6,001 69,011
Uniao de Bancos Brasileiros
S.A. GDR ........................ 7,036 232,188
1,329,898
CANADA -- 0.5%
Global Light
Telecommunications Inc. ......... 26,136 134,600(a)
CHILE -- 0.1%
Companhia de Telecomunicaciones
de Chile S.A. ADR ............... 2,183 37,930
CHINA -- 4.6%
Brilliance China Automotive
Holdings Ltd. ADR ............... 9,235 281,668
China Mobile (Hong Kong)
Ltd. ADR ........................ 5,741 186,224(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
China Unicom Ltd. .................. 108,000 $ 241,724
Denway Motors Ltd. ................. 436,000 68,225(a)
Huaneng Power International
Inc. ADR ........................ 11,731 187,696
Huaneng Power International
Inc. (Class H) .................. 698,000 293,202
1,258,739
CROATIA -- 1.3%
Pliva D D GDR (Regd.) .............. 15,144 161,284
Zagrebacka Banka GDR ............... 11,621 180,125(b)
341,409
CZECH REPUBLIC -- 0.3%
Ceske Radiokomunikace GDR .......... 2,351 87,457(a,b)
DOMINICAN REPUBLIC -- 0.8%
TRICOM S.A. ADR .................... 13,783 210,191(a)
EGYPT -- 2.1%
Al-Ahram Beverage Co.
S.A.E. GDR ...................... 8,304 117,086(a)
Commercial International
Bank GDR ........................ 4,900 38,465(b)
EFG-Hermes Holding
S.A.E. GDR ...................... 12,320 29,568(b)
Egyptian Company for
Mobile Services ................. 9,645 213,851(a)
Olympic Group Financial
Investment Co. .................. 20,610 23,774
Orascom Telecommunication
GDR ............................. 25,169 161,082(a,b)
583,826
ESTONIA -- 0.5%
AS Eesti Telekom GDR ............... 8,360 129,998
GHANA -- 0.0%
Home Finance Co. ................... 30,523 4,436
GREECE -- 1.0%
A.G. Petzetakis S.A. ............... 14,939 122,518
Hellenic Telecommunication
Organization S.A. ADR ........... 15,781 145,974
268,492
HUNGARY -- 0.4%
Magyar Tavkozlesi RT ADR ........... 2,648 62,393
OTP Bank RT ........................ 1,151 59,386
121,779
INDIA -- 10.9%
Aptech Ltd. ........................ 20,216 201,259
Cipla Ltd. ......................... 3,500 50,374
Dr. Reddy's Laboratories Ltd. ...... 2,571 67,668
Global Tele-Systems Ltd. ADR ....... 3,004 75,727
---------
See Notes to Schedules of Investments and Financial Statements.
45
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Himachal Futuristic
Communications Ltd. ............. 4,286 $ 122,591
Mastek Ltd. ........................ 10,300 540,655(a)
NIIT Ltd. .......................... 7,936 246,037(k)
Pentamedia Graphics Ltd. ........... 3,200 29,578
Pentamedia Graphics Ltd. GDR ....... 13,043 110,866
Satyam Computer Services Ltd. ...... 69,535 710,683(a)
Sriven Multi-Tech Ltd. ............. 17,057 15,914(a)
Sun Pharmaceutical
Industries Ltd. ................. 12,732 117,388
UTI India IT Fund .................. 23,175 681,809
2,970,549
INDONESIA -- 0.5%
PT Gudang Garam .................... 119,500 143,113
ISRAEL -- 11.3%
Camtek Ltd. ........................ 18,410 155,334(a)
Commtouch Software Ltd. ............ 2,821 53,423(a)
Comverse Technology Inc. ........... 3,151 340,308(a)
DSP Group Inc. ..................... 4,183 156,340(a)
e-SIM Ltd. ......................... 7,140 50,426(a)
ECI Telecommunications Ltd. ........ 10,549 323,063
ECtel Ltd. ......................... 2,211 44,082(a)
Fundtech Ltd. ...................... 18,143 432,881(a)
Galileo Technology Ltd. ............ 9,793 310,928(a)
Magic Software Enterprises Ltd. .... 14,687 111,988(a)
MIND C.T.I. Ltd. ................... 8,839 104,963(a)
NICE Systems Ltd. ADR .............. 1,416 101,952(a)
Orbotech Ltd. ...................... 3,780 206,719(a)
Radview Software Ltd. .............. 12,327 81,666(a)
RADVision Ltd. ..................... 2,977 83,914(a)
Radware Ltd. ....................... 4,130 123,900(a)
Sapiens International Corp. N.V. ... 33,975 131,653(a)
Teva Pharmaceutical
Industries Ltd. ADR ............. 1,508 110,367
TTI Team Telecom
International Ltd. .............. 7,714 157,173(a)
3,081,080
KAZAKHSTAN -- 0.0%
Kazkommertsbank GDR ................ 1,367 9,785(a)
MEXICO -- 12.7%
Alfa S.A. (Series A) ............... 30,840 64,737
Coca-Cola Femsa S.A.
de C.V. ADR ..................... 5,486 109,720
Consorcio Ara S.A. de C.V. ......... 42,774 69,312(a)
Corporacion GEO S.A.
de C.V. (Series B) .............. 102,430 176,828(a)
Corporacion Interamericana
de Entretenimiento S.A.
de C.V.(CIE) (Series B) ......... 17,263 83,646(a)
Desc S.A. de C.V. (Series B) ....... 62,180 34,903
Desc S.A. de C.V. ADR .............. 5,107 52,666
Fomento Economico Mexicano
S.A. de C.V. ADR ................ 2,105 82,095
Grupo Carso S.A. de C.V. ADR ....... 12,413 74,602(a)
Grupo Elektra S.A. de C.V. GDR ..... 10,229 97,176
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) .. 95,575 $ 438,297(a)
Grupo Financiero Bancomer
S.A. ADR (Series C) ............. 30,796 358,003(a,b)
Grupo Financiero Banorte S.A.
de C.V. ......................... 141,208 184,249(a)
Grupo Financiero Inbursa
S.A. de C.V. .................... 10,195 44,486(a)
Grupo Iusacell S.A. de
C.V. ADR ........................ 5,786 68,709(a)
Grupo Televisa S.A. GDR ............ 5,032 290,283(a)
Telefonos de Mexico S.A.
de C.V. ADR ..................... 14,540 773,346
Tubos de Acero de
Mexico S.A. ADR ................. 7,818 130,952
TV Azteca S.A. de C.V. ADR ......... 11,233 144,625
Wal-Mart de Mexico S.A. de C.V. .... 89,797 186,403(a)
3,465,038
NETHERLANDS -- 0.7%
Indigo N.V. ........................ 26,517 177,332(a)
PHILIPPINES -- 1.9%
Benpres Holdings Corp. ............. 652,700 53,685(a)
Metropolitan Bank & Trust Co. ...... 20,720 75,346
Philippine Long Distance
Telephone Co. ................... 22,202 389,256
518,287
POLAND -- 1.8%
Elektrim Spolka Akcyjna S.A. ....... 14,996 135,409(a)
Europejki Fundusz
Leasingowy GDR .................. 2,717 40,076(a,b)
Prokom Software S.A. GDR ........... 8,228 181,016(b)
Telekomunikacja Polska
S.A. GDR (Series A) ............. 28,258 142,703(b)
499,204
RUSSIA -- 1.6%
Mobile Telesystems ADR ............. 10,943 277,679(a)
OAO Lukoil Holding ADR ............. 3,022 169,232
Sun Interbrew Ltd. GDR (Class A) ... 1,992 3,446(a)
450,357
SINGAPORE -- 1.3%
Datacraft Asia Ltd. ................ 43,319 359,548
SOUTH AFRICA -- 3.9%
Dimension Data Holdings PLC ........ 29,414 272,329(a)
Johnnic Holdings Ltd. .............. 23,847 309,697
M-Cell Ltd. ........................ 28,470 114,432
Sappi Ltd. ......................... 30,027 222,653
Softline Ltd. ...................... 220,031 136,929(a)
1,056,040
---------
See Notes to Schedules of Investments and Financial Statements.
46
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SOUTH KOREA -- 12.2%
Dae Duck Electronics Co. ........... 23,123 $ 207,353
Kookmin Bank ....................... 43,154 514,683
Korea Electric Power
(KEPCO) Corp. ................... 20,272 529,001
Korea Telecom Corp. ADR ............ 2,215 74,479
Korea Telecom Corp. ................ 5,977 358,036
Medison Co. Ltd. ................... 17,580 98,056
Mirae Co. ADR ...................... 2,025 9,619
Pohang Iron & Steel Co. Ltd. ....... 3,200 238,174
Pohang Iron & Steel Co.
Ltd. ADR ........................ 27,661 515,186
S1 Corp. ........................... 11,849 123,787
Samsung Electronics ................ 2,721 492,886
Youngone Corp. ..................... 143,270 170,231
3,331,491
TAIWAN -- 10.1%
Chroma Ate Inc. .................... 49,400 93,056
Compal Electronics Inc. ............ 177,261 277,315
Compeq Manufacturing Co. Ltd. ...... 41,200 226,251
D-Link Corp. ....................... 58,280 94,897
Far Eastern Textile Ltd. ........... 372,724 398,654
Hon Hai Precision Industry ......... 38,920 255,979
Nien Hsing Textile Corp. Ltd. ...... 143,900 174,586
Premier Camera Taiwan Ltd. ......... 83,802 203,344
Procomp Informatics Co. Ltd. ....... 31,640 150,518
Ritek Corp. ........................ 18,521 61,203
Ritek Corp. GDR .................... 2,313 14,803(b)
Taiwan Semiconductor
Manufacturing Co. Ltd. .......... 192,448 639,015(a)
Yageo Corp. ........................ 231,168 183,777
2,773,398
THAILAND -- 0.4%
Hana Microelectronics Public
Co. Ltd. ........................ 44,200 116,440(a)
TURKEY -- 3.7%
Aksigorta A.S. ................... 6,040,640 97,668
Dogan Yayin Holding A.S. .........18,437,106 210,749
Enka Holding Yatirim A.S. ........ 635,764 100,403
Migros Turk T.A.S. ............... 859,432 102,117
Tansas A.S. ...................... 1,244,734 142,282
Turkcell Iletisim Hizmetleri
A.S. ADR ...................... 15,987 175,857(a)
Turkiye Garanti Bankasi A.S. .....14,523,000 124,506
Yapi ve Kredi Bankasi A.S. ....... 7,242,677 52,288
1,005,870
VENEZUELA -- 0.3%
Compania Anonima Nacional
Telefonos de Venezuela ADR .... 3,735 91,274
TOTAL COMMON STOCK
(COST $25,157,481) ............ 24,625,428
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 3.8%
--------------------------------------------------------------------------------
BRAZIL -- 3.8%
Celular CRT Participaceos S.A. ... 226,477 $ 78,646(a)
Companhia de Bebidas das
Americas (Ambev) ADR .......... 7,920 175,230(a)
Companhia Paranaense de
Energia-Copel ADR ............. 7,095 62,968
Companhia Vale do Rio Doce ....... 3,872 97,273
Embratel Participacoes S.A.
ADR ........................... 3,702 68,487
Petroleo Brasileiro S.A. ......... 7,200 205,882
Tele Norte Leste Participacoes
S.A. ADR ...................... 8,419 192,585
Telecomunicacoes do Rio
de Janeiro S.A. ............... 2,351,816 72,469
Telesp Celular Participacoes S.A. 6,147,657 81,090
TOTAL PREFERRED STOCK
(COST $862,468) ............... 1,034,630
TOTAL INVESTMENTS IN SECURITIES
(COST $26,019,949) ............ 25,660,058
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.1%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $1,411,633) ............. 1,411,633 1,411,633
OTHER ASSETS AND LIABILITIES,
NET 1.0% ...................... 261,071
-----------
NET ASSETS-- 100% ................ $27,332,762
===========
--------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The GE Emerging Market Fund invested in the following sectors at September 30,
2000:
PERCENT (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Information Technology 31.78%
Telecommunication Services 18.58%
Finance 13.70%
Consumer Goods 11.85%
Cash and Other 5.90%
Materials 4.55%
Utilities 4.18%
Industrials 3.98%
Health Care 2.81%
Energy 2.67%
---------
100.00%
=========
---------
See Notes to Schedules of Investments and Financial Statements.
47
<PAGE>
GE PREMIER GROWTH EQUITY FUND
Q&A
DAVID CARLSON MANAGES PENSION AND MUTUAL FUND PORTFOLIOS WITH TOTAL ASSETS OF
APPROXIMATELY $6 BILLION. DAVE JOINED GE IN 1980 WITH THE GE FINANCIAL
MANAGEMENT PROGRAM. IN 1982, HE JOINED GE ASSET MANAGEMENT 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 HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION 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 PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Premier Growth Equity Fund posted a return of 18.61% for Class A
Shares, 17.70% for Class B Shares, 17.66% for Class C Shares and 18.87% for
Class Y Shares for the one-year period ended September 30, 2000, while the
S&P 500 Index returned 13.24% for the same period. The Fund's Lipper peer
group of 414 Multicap Growth funds, a new category, earned an average of
53.4% during that time.
Q. PLEASE DISCUSS THE FUND'S PERFORMANCE VERSUS THE BENCHMARK AND PEER FUNDS.
A. The Fund outperformed the S&P 500 Index primarily due to stock selection.
Technology is the largest sector in the Fund with about a 30% weight as of
the end of the quarter. The S&P 500 Index also has a technology weight of
approximately 30% now after being as high as 34%. Our technology holdings
were up about 33% in the period versus a 23% return for the S&P 500 Index
technology holdings. Other strong groups for the Fund were financials (+79%)
and energy (+38%). Lagging groups in the Fund were in the consumer cyclical
sector (+2%) and the telecommunications industry (-29%).
We underperformed our peer funds primarily due to a much lower technology
weighting in the Fund. Many of our peer funds have a technology weighting in
the 50-70% range, much higher than our 30% weighting. These stocks have been
very strong performers in the last year. While we share the positive outlook
for these companies, many look fully valued to us. Our valuation discipline
leads us to a lower weighting (though still substantial at 30%) in these
stocks than many of our peers.
Q. DOES ANY PARTICULAR STOCK PERFORMANCE STAND OUT IN THE PERIOD?
A. Among our technology holdings, EMC posted a gain of 176%, Applied Materials
a gain of 53%, and Automatic Data Processing a gain of 51%. On the downside,
in the consumer sector, our holding in Carnival Corp. declined 43%, and
Worldcom in the telecom sector declined 37%.
Q. WHAT IS THE OUTLOOK FOR THE FUND GIVEN A SLOWDOWN IN THE ECONOMY AND SLOWER
GROWTH IN CORPORATE PROFITS?
A. We continue to focus on companies with strong secular earnings growth, and
not overly dependent on the economy. For example, Catalina Marketing, a
leading company in supermarket promotional incentives, should continue to
grow at a double-digit rate in spite of projected slowing economic
conditions. Similarly, our positions in drugs and healthcare such as
Cardinal Health, Pfizer, Dentsply, and Lincare should continue to grow
nicely and be less sensitive to a slowing economy.
For the Fund as a whole, we believe we have less economic sensitivity in our
earnings growth than the S&P 500 Index. Our focus on high quality, market
share leaders should allow us to successfully weather rough market
conditions.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The Fund remains concentrated in thirty-three holdings. We have reduced the
overweighting in technology stocks over the past quarter to match the level
of the S&P 500 Index as mentioned above. The rationale was based on
valuations. The fundamentals of the technology sector remain excellent, but
the valuation levels remain stretched in our opinion. We are finding more
compelling investment opportunities in other sectors where growth rates are
high and valuation levels more reasonable. We continue to focus on industry
leaders with strong fundamentals. We estimate the earnings growth of our
holdings to be in the 15-20% range, and we expect that the above-average
growth will drive above average stock price performance over the long term.
[PHOTO OF DAVID CARLSON OMITTED]
48
<PAGE>
GE PREMIER GROWTH EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Molex Inc. (Class A) 4.68%
--------------------------------------------------------------------------------
Citigroup Inc. 4.39%
--------------------------------------------------------------------------------
EMC Corp. 4.17%
--------------------------------------------------------------------------------
Catalina Marketing Corp. 3.91%
--------------------------------------------------------------------------------
Cardinal Health Inc. 3.90%
--------------------------------------------------------------------------------
Automatic Data Processing Inc. 3.79%
--------------------------------------------------------------------------------
AFLAC Inc. 3.77%
--------------------------------------------------------------------------------
Comcast Corp. (Class A) 3.53%
--------------------------------------------------------------------------------
Cisco Systems Inc. 3.48%
--------------------------------------------------------------------------------
First Data Corp. 3.45%
--------------------------------------------------------------------------------
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 9/30/00
One Three
Year Year
------ ------
Number of Funds
in peer group: 414 300
Peer group
average annual
total return: 53.43% 26.71%
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+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER GROWTH GE PREMIER GROWTH S&P 500/
EQUITY FUND EQUITY FUND W/LOAD S&P 500 BARRA GROWTH
12/31/96 10,000.00 9,425.00 10,000.00 10,000.00
3/97 9,533.32 8,982.41 10,260.73 10,357.18
11,033.32 10,395.73 12,053.80 12,457.76
9/97 12,233.32 11,526.38 12,959.85 13,189.26
12,645.51 11,914.75 13,328.97 13,652.93
3/98 14,294.04 13,468.02 15,189.87 15,872.87
14,863.91 14,004.95 15,693.38 16,802.50
9/98 13,866.65 13,065.32 14,141.40 15,585.60
17,120.96 16,131.56 17,154.77 19,408.62
3/99 18,630.40 17,553.77 18,006.46 20,744.44
20,482.26 19,298.61 19,258.61 21,539.27
9/99 19,210.41 18,100.26 18,073.45 20,787.14
23,242.32 21,899.17 20,768.36 24,891.01
3/00 24,084.59 22,692.77 21,277.57 25,914.74
23,089.84 21,755.50 20,674.10 25,534.34
9/00 22,784.88 21,468.16 20,466.64 23,291.10
AVERAGE ANNUAL
TOTAL RETURN
ONE THREE SINCE
YEAR YEAR INCEPTION
------ ----- ---------
GE Premier
Growth Equity 18.61% 23.04% 24.55%
GE Premier Growth
Equity w/load 11.78% 20.63% 22.59%
(maximum load-5.75%)
S&P 500 13.24% 16.45% 21.05%
S&P 500/BARRA Growth 12.05% 20.87% 25.29%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE PREMIER GROWTH GE PREMIER GROWTH S&P 500/
EQUITY FUND EQUITY FUND W/LOAD S&P 500 BARRA GROWTH
<S> <C> <C> <C> <C>
12/31/96 10,000.00 10,000.00 10,000.00 10,000.00
3/97 9,513.33 9,513.33 10,260.73 10,357.18
10,986.67 10,986.67 12,053.80 12,457.76
9/97 12,166.67 12,166.67 12,959.85 13,189.26
12,552.07 12,552.07 13,328.97 13,652.93
3/98 14,157.49 14,157.49 15,189.87 15,872.87
14,692.63 14,692.63 15,693.38 16,802.50
9/98 13,683.31 13,683.31 14,141.40 15,585.60
16,866.23 16,866.23 17,154.77 19,408.62
3/99 18,316.48 18,316.48 18,006.46 20,744.44
20,101.42 20,101.42 19,258.61 21,539.27
9/99 18,818.50 18,818.50 18,073.45 20,787.14
22,722.33 22,722.33 20,768.36 24,891.01
3/00 23,498.11 23,398.11 21,277.57 25,914.74
22,490.33 22,390.33 20,674.10 25,534.34
9/00 22,149.56 22,049.56 20,466.64 23,291.10
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE THREE SINCE
YEAR YEAR INCEPTION
----- ----- ---------
GE Premier
Growth Equity 17.70% 22.10% 23.61%
GE Premier Growth
Equity w/load 13.70% 21.66% 23.46%
(maximum load) 4.00% 2.00% 1.00%
S&P 500 13.24% 16.45% 21.05%
S&P 500/BARRA Growth 12.05% 20.87% 25.29%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE PREMIER GROWTH GE PREMIER GROWTH S&P 500/
EQUITY FUND EQUITY FUND W/LOAD S&P 500 BARRA GROWTH
<S> <C> <C> <C> <C>
9/30/99 10,000.00 10,000.00 10,000.00 10,000.00
10/99 10,418.52 10,418.52 10,636.00 10,691.50
11/99 10,855.56 10,855.56 10,851.91 11,148.88
12/99 12,070.00 12,070.00 11,491.09 11,974.23
1/00 11,569.33 11,569.33 10,912.05 11,176.75
2/00 11,388.32 11,388.32 10,710.07 11,411.38
3/00 12,482.09 12,382.09 11,772.83 12,466.72
4/00 12,258.71 12,158.71 11,399.04 11,849.66
5/00 11,888.99 11,788.89 11,165.82 11,366.55
6/00 11,946.76 11,846.76 11,438.93 12,283.72
7/00 11,661.76 11,561.76 11,256.37 11,736.85
8/00 12,277.97 12,177.97 11,955.39 12,416.41
9/00 11,765.74 11,665.74 11,324.15 11,204.57
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Premier
Growth Equity 17.66% 17.66%
GE Premier Growth
Equity w/load 16.66% 16.66%
(maximum load) 1.00% 1.00%
S&P 500 13.24% 13.24%
S&P 500/BARRA Growth 12.05% 12.05%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE PREMIER GROWTH
EQUITY FUND S&P 500 S&P 500/BARRA GROWTH
<S> <C> <C> <C>
12/31/96 10,000.00 10,000.00 10,000.00
3/97 9,539.99 10,260.73 10,357.18
11,039.99 12,053.80 12,457.76
9/97 12,253.32 12,959.85 13,189.26
12,676.35 13,328.97 13,652.93
3/98 14,333.92 15,189.87 15,872.87
14,918.15 15,693.38 16,802.50
9/98 13,926.32 14,141.40 15,585.60
17,208.05 17,154.77 19,408.62
3/99 18,729.08 18,006.46 20,744.44
20,614.61 19,258.61 21,539.27
9/99 19,345.91 18,073.45 20,787.14
23,418.33 20,768.36 24,891.01
3/00 24,277.59 21,277.57 25,914.74
23,287.26 20,674.10 25,534.34
9/00 22,995.99 20,466.64 23,291.10
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE THREE SINCE
YEAR YEAR INCEPTION
----- ----- ---------
GE Premier
Growth Equity 18.87% 23.35% 24.85%
S&P 500 13.24% 16.45% 21.05%
S&P 500/BARRA Growth 12.05% 20.87% 25.29%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
49
<PAGE>
GE PREMIER GROWTH EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE PREMIER GROWTH EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TECHNOLOGY 26.9%
CONSUMER CYCLICAL 23.8%
CONSUMER STABLE 17.8%
FINANCIAL 8.1%
CAPITAL GOODS 7.7%
ENERGY 6.3%
UTILITIES 4.8%
CASH & OTHER 4.6%*
*INCLUDES CASH EQUALIZED BY FUTURES OF 0.5%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 95.4%
--------------------------------------------------------------------------------
CAPITAL GOODS -- 7.7%
Dover Corp. ...................... 134,365 $ 6,306,757
Molex Inc. (Class A) ............. 232,972 9,653,777(h)
15,960,534
CONSUMER - CYCLICAL -- 23.8%
AT&T Corp. - Liberty Media
Group (Class A) ............... 355,304 6,395,472(a)
Carnival Corp. ................... 151,703 3,735,686
Catalina Marketing Corp. ......... 214,551 8,072,481(a)
Comcast Corp. (Class A) .......... 177,709 7,274,962(a)
CVS Corp. ........................ 121,362 5,620,578
Home Depot Inc. .................. 130,031 6,899,770
Interpublic Group Cos. Inc. ...... 147,369 5,019,757
NTL Inc. ......................... 129,860 6,014,141(a)
49,032,847
CONSUMER - STABLE -- 17.8%
Cardinal Health Inc. ............. 91,137 8,037,144(h)
Dentsply International Inc. ...... 65,016 2,271,497
Gillette Co. ..................... 82,353 2,542,649
Henry Schein Inc. ................ 48 957(a)
Lincare Holdings Inc. ............ 216,719 6,217,126(a)
Merck & Co. Inc. ................. 82,353 6,130,151
Pfizer Inc. ...................... 130,031 5,843,268
Sybron International Corp. ....... 238,390 5,721,360(a)
36,764,152
ENERGY -- 6.3%
Baker Hughes Inc. ................ 177,709 6,597,447
Schlumberger Ltd. ................ 78,019 6,421,939
13,019,386
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
FINANCIAL -- 8.1%
AFLAC Inc. ....................... 121,362 $ 7,774,753
Citigroup Inc. ................... 167,593 9,060,497
16,835,250
TECHNOLOGY -- 26.9%
Applied Materials Inc. ........... 65,016 3,856,262(a)
Automatic Data Processing Inc. ... 117,028 7,826,247
Cisco Systems Inc. ............... 130,031 7,184,213(a)
Dell Computer Corp. .............. 143,034 4,407,235(a)
EMC Corp. ........................ 86,687 8,592,849(a)
Equifax Inc. ..................... 216,719 5,837,868
First Data Corp. ................. 182,043 7,111,055(h)
Intel Corp. ...................... 130,031 5,404,413
Microsoft Corp. .................. 86,687 5,228,310(a)
55,448,452
UTILITIES -- 4.8%
Vodafone Group PLC ADR ........... 151,703 5,613,011
WorldCom Inc. .................... 138,700 4,213,012(a)
9,826,023
TOTAL INVESTMENTS IN SECURITIES
(COST $174,187,442) ........... 196,886,644
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.6%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $9,436,071) ............. 9,436,071 9,436,071
OTHER ASSETS AND LIABILITIES,
NET 0.0% ...................... (49,095)
------------
NET ASSETS-- 100% ................ $206,273,620
============
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following long futures contracts open
at September 30, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE DEPRECIATION
--------------------------------------------------------------------------------
S&P 500 December 2000 3 $1,090,275 $(4,650)
---------
See Notes to Schedules of Investments and Financial Statements.
50
<PAGE>
GE PREMIER RESEARCH EQUITY FUND
Q&A
HRIS BROWN IS A SENIOR VICE PRESIDENT WITH GE ASSET MANAGEMENT AND IS
CO-PORTFOLIO MANAGER OF THE GE PREMIER RESEARCH EQUITY FUND. CHRIS BEGAN HIS
CAREER AT GE IN 1981, SPENDING TWO YEARS IN THE FINANCIAL MANAGEMENT PROGRAM. HE
THEN SPENT THE NEXT TWO YEARS AS AN INTERNATIONAL SECTOR FINANCIAL ANALYST WITH
SADELMI NEW YORK, INC., A GE SUBSIDIARY, AND JOINED GEAM IN 1985. CHRIS IS A CUM
LAUDE GRADUATE IN ECONOMICS FROM BUCKNELL UNIVERSITY AND IS THE HOLDER OF A
CHARTERED FINANCIAL ANALYST DESIGNATION. DICK SANDERSON IS A SENIOR VICE
PRESIDENT WITH GE ASSET MANAGEMENT AND IS CO-PORTFOLIO MANAGER OF THE GE PREMIER
RESEARCH EQUITY FUND. HE HAS TWENTY-NINE YEARS OF INVESTMENT EXPERIENCE, SIX
WITH GEAM. PRIOR TO JOINING GEAM, DICK HELD POSITIONS WITH ALLIANCE CAPITAL,
NEUBERGER BERMAN, INVESTORS DIVERSIFIED SERVICES, FIRST NATIONAL BANK OF DENVER,
AND NORTHERN TRUST COMPANY. DURING HIS CAREER, HE WAS VOTED "BEST OF BUY SIDE"
THREE TIMES BY INSTITUTIONAL INVESTOR MAGAZINE. HE RECEIVED BOTH A BA
(ANTHROPOLOGY) AND MBA (FINANCE) FROM THE UNIVERSITY OF MICHIGAN AND IS THE
HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION.
Q. HOW DID THE PREMIER RESEARCH EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE PERIOD APRIL 28, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER
30, 2000?
A. The Premier Research Equity Fund returned negative 1.00% for Class A Shares,
negative 1.30% for Class B Shares, negative 1.30% for Class C Shares and
negative 0.90% for Class Y Shares compared to the S&P 500 Index which
returned negative 0.66% for the period ended September 30, 2000. The Fund
slightly under-performed the benchmark over the period.
Q. PLEASE DISCUSS THE FUND'S PERFORMANCE VERSUS THE BENCHMARK.
A. As a reminder, the Fund is sector neutral versus the S&P 500 Index
benchmark. Therefore, performance is driven by stock selection. In this
regard, the stocks the Fund owned in the technology and consumer cyclical
sectors underperformed their respective benchmarks. This was partially
offset by positive stock performance in electric utilities, natural gas,
regional Bell operating companies and the financial and consumer stable
sectors.
Q. DOES ANY PARTICULAR STOCK PERFORMANCE STAND OUT IN THE PERIOD?
A. As mentioned, the utilities sector did very well over the period. Our
holdings in Calpine (+127%), Enron (+25%), and SBC Communications (+15%)
contributed to the strong performance. Despite declines in technology,
several holdings did well including PerkinElmer and EMC. Financial holdings
such as Lehman Brothers, AXA Financial, and Associates First Capital were
standouts in this area.
Q. WHAT IS THE OUTLOOK FOR THE FUND GIVEN A SLOWDOWN IN THE ECONOMY AND SLOWER
GROWTH IN CORPORATE PROFITS?
A. We continue to focus on companies with solid earnings prospects, and those
with managements that can execute in a variety of market conditions.
Delivering earnings in a slowing economic environment may be challenging,
however superior management teams can weather the storm. We may see
continued strength in the energy, utilities, and consumer stable areas as
investors look for safer havens away from technology. We believe the
companies we are invested with in these areas are positioned well given the
economic backdrop.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The Fund is positioned to be sector neutral versus the S&P 500 Index
benchmark so the Fund will follow the general trend of the overall market.
We believe we will add value over time through the ownership of stocks
comprised of the best large capitalization ideas generated by our research
team. We remain focused on the best ideas generated by our research team,
and believe this Fund will continue to reflect investments with solid
earnings prospects going forward.
51
<PAGE>
GE PREMIER RESEARCH EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Pfizer Inc. 4.44%
--------------------------------------------------------------------------------
Microsoft Corp. 4.13%
--------------------------------------------------------------------------------
Exxon Mobil Corp. 3.53%
--------------------------------------------------------------------------------
Cisco Systems Inc. 3.17%
--------------------------------------------------------------------------------
Intel Corp. 2.92%
--------------------------------------------------------------------------------
SBC Communications Inc. 2.89%
--------------------------------------------------------------------------------
Merck & Co. Inc. 2.87%
--------------------------------------------------------------------------------
EMC Corp. 2.70%
--------------------------------------------------------------------------------
Dell Computer Corp. 2.38%
--------------------------------------------------------------------------------
Citigroup Inc. 2.31%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
and future income by investing primarily in a limited number of equity
securities of large- and medium-sized companies located in the
United States.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER RESEARCH GE PREMIER RESEARCH S&P 500
EQUITY FUND EQUITY FUND W/LOAD
4/28/2000 1,000.00 10,000.00 10,000.00
5/00 10,000.00 9,425.00 9,791.70
6/00 10,100.00 9,519.25 10,031.20
7/00 9,930.00 9,359.02 9,874.82
8/00 10,580.00 9,971.65 10,488.04
9/00 9,900.00 9,330.75 9,934.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
---------
GE Premier Research Equity -1.00%
GE Premier Research Equity w/load -6.69%
(maximum load-5.75%)
S&P 500 -0.66%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER RESEARCH GE PREMIER RESEARCH S&P 500
EQUITY FUND EQUITY FUND W/LOAD
4/28/00 10,000.00 10,000.00 10,000.00
5/00 9,990.00 9,590.40 9,791.70
6/00 10,090.00 9,690.00 10,031.20
7/00 9,910.00 9,513.60 9,874.82
8/00 10,550.00 10,150.00 10,488.04
9/00 9,870.00 9,475.20 9,934.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Research Equity -1.30%
GE Premier Research Equity w/load -5.25%
(maximum load) 4.00%
S&P 500 -0.66%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER RESEARCH GE PREMIER RESEARCH S&P 500
EQUITY FUND EQUITY FUND W/LOAD
4/28/00 10,000.00 10,000.00 10,000.00
5/00 9,990.00 9,890.10 9,791.70
6/00 10,090.00 9,990.00 10,031.20
7/00 9,910.00 9,810.90 9,874.82
8/00 10,550.00 10,450.00 10,488.04
9/00 9,870.00 9,771.30 9,934.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Research Equity -1.30%
GE Premier Research Equity w/load -2.30%
(maximum load) 1.00%
S&P 500 -0.66%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER RESEARCH S&P 500
EQUITY FUND
4/28/00 10,000.00 10,000.00
5/00 10,000.00 9,791.70
6/00 10,110.00 10,031.20
7/00 9,930.00 9,874.82
8/00 10,580.00 10,488.04
9/00 9,910.00 9,934.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Research Equity -0.90%
S&P 500 -0.66%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
52
<PAGE>
GE PREMIER RESEARCH EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE PREMIER RESEARCH EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
TECHNOLOGY 29.7%
CONSUMER STABLE 18.0%
FINANCIAL 15.2%
CONSUMER CYCLICAL 11.6%
UTILITIES 7.9%
ENERGY 7.5%
CAPITAL GOODS 3.6%
CASH & OTHER 2.0%
MISCELLANEOUS 1.9%
BASIC MATERIALS 1.8%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 98.0%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 1.8%
Newmont Mining Corp. ............. 7,535 $ 128,095
Weyerhaeuser Co. ................. 2,562 103,441
231,536
CAPITAL GOODS -- 3.6%
Dover Corp. ...................... 3,090 145,037
Textron Inc. ..................... 2,411 111,207
United Technologies Corp. ........ 2,939 203,526
459,770
CONSUMER - CYCLICAL -- 11.6%
CVS Corp. ........................ 5,878 272,224
Gannett Co. Inc. ................. 3,692 195,676
Interpublic Group Cos. Inc. ...... 6,480 220,725
Lowes Cos. Inc. .................. 5,425 243,447
McDonald's Corp. ................. 8,213 247,930
NTL Inc. ......................... 1,846 85,493(a)
Target Corp. ..................... 9,117 233,623
1,499,118
CONSUMER - STABLE -- 18.0%
Amgen Inc. ....................... 3,014 210,462(a)
Cardinal Health Inc. ............. 1,733 152,829
Eli Lilly & Co. .................. 1,808 146,674
Gillette Co. ..................... 6,782 209,394
Merck & Co. Inc. ................. 4,973 370,178
Pepsico Inc. ..................... 4,069 187,174
Pfizer Inc. ...................... 12,734 572,234
Procter & Gamble Co. ............. 2,261 151,487
The Quaker Oats Co. .............. 2,713 214,666
Watson Pharmaceuticals Inc. ...... 1,658 107,563(a)
2,322,661
ENERGY -- 7.5%
Burlington Resources Inc. ........ 3,216 118,389
Calpine Corp. .................... 1,960 204,575(a)
Exxon Mobil Corp. ................ 5,104 454,894
Schlumberger Ltd. ................ 2,291 188,578
966,436
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
FINANCIAL -- 15.2%
Associates First Capital Corp.
(Class A) ..................... 5,501 $ 209,038
Bank of America Corp. ............ 4,672 244,696
Chase Manhattan Corp. ............ 5,124 236,665
Chubb Corp. ...................... 2,562 202,718
Citigroup Inc. ................... 5,500 297,344
FleetBoston Financial Corp. ...... 6,480 252,720
Lehman Brothers Holdings Inc. .... 1,492 220,443
MetLife Inc. ..................... 6,230 163,148(a)
PNC Financial Services Group ..... 1,959 127,335
1,954,107
MISCELLANEOUS -- 1.9%
SPDR Trust ....................... 1,734 249,046
TECHNOLOGY -- 29.7%
Analog Devices Inc. .............. 3,150 260,072(a)
Applied Materials Inc. ........... 1,884 111,745(a)
Cisco Systems Inc. ............... 7,384 407,966(a)
Compaq Computer Corp. ............ 5,124 141,320
Dell Computer Corp. .............. 9,946 306,461(a)
EMC Corp. ........................ 3,511 348,028(a)
Equifax Inc. ..................... 6,927 186,596
First Data Corp. ................. 3,767 147,148
Intel Corp. ...................... 9,042 375,808
Micron Technology Inc. ........... 2,938 135,148(a)
Microsoft Corp. .................. 8,816 531,715(a)
Motorola Inc. .................... 4,822 136,222
Nortel Networks Corp. ............ 4,521 269,282
PerkinElmer Inc. ................. 1,763 184,013
Tellabs Inc. ..................... 3,316 158,339(a)
Texas Instruments Inc. ........... 1,658 78,237
Unisys Corp. ..................... 4,521 50,861(a)
3,828,961
TRANSPORTATION -- 0.8%
AMR Corp. ........................ 1,823 59,589(a)
Burlington Northern
Santa Fe Corp. ................ 1,733 37,368
96,957
UTILITIES -- 7.9%
AT&T Wireless Group .............. 3,014 62,917(a)
Enron Corp. ...................... 2,713 237,727
NEXTLINK Communications
Inc. (Class A) ................ 3,918 137,865(a)
Qwest Communications
International Inc. ............ 4,295 206,428(a)
SBC Communications Inc. .......... 7,459 372,950
1,017,887
TOTAL INVESTMENTS IN SECURITIES
(COST $12,927,618) ............ 12,626,479
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.8%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $240,618) ............... 240,618 240,618
OTHER ASSETS AND LIABILITIES,
NET 0.2% ...................... 21,342
-----------
NET ASSETS-- 100% ................ $12,888,439
===========
---------
See Notes to Schedules of Investments and Financial Statements.
53
<PAGE>
GE PREMIER INTERNATIONAL EQUITY FUND
Q&A
BRIAN HOPKINSON IS A SENIOR VICE PRESIDENT WITH GE ASSET MANAGEMENT AND IS THE
PORTFOLIO MANAGER FOR THE GE PREMIER INTERNATIONAL EQUITY FUND. BRIAN HAS 21
YEARS OF INVESTMENT EXPERIENCE, INCLUDING ELEVEN YEARS IN LONDON AND HAS BEEN
WITH GEAM SINCE 1996. BEFORE JOINING GEAM HE WAS WITH COLUMBUS CIRCLE INVESTORS
AND FIDUCIARY TRUST COMPANY INTERNATIONAL. HE RECEIVED A BACHELOR OF SCIENCE
(HONOURS) DEGREE IN MATHEMATICS/STATISTICS FROM THE UNIVERSITY OF LEEDS AND IS
AN ASSOCIATE OF THE INSTITUTE OF ACTUARIES.
Q. HOW DID THE GE PREMIER INTERNATIONAL EQUITY FUND PERFORM COMPARED TO ITS
BENCHMARK FOR THE PERIOD APRIL 28, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH
SEPTEMBER 30, 2000?
A. The GE Premier International Equity Fund posted a return of negative 13.00%
for the Class A Shares, negative 13.30% for the Class B Shares, negative
13.30% for the Class C Shares and negative 12.90% for the Class Y Shares for
the period ended September 30, 2000, while the MSCI EAFE Index returned
negative 6.80% for the same period.
Q. WHY DID THE FUND UNDER-PERFORM ITS BENCHMARK FOR THE PERIOD ENDED SEPTEMBER
30, 2000?
A. The Fund's underperformance can be attributed to various factors. Following
strong performance from the technology stocks in the spring, we bought a
number of "old economy" companies whose valuations appeared much more
reasonable, including Fresenius Medical Systems (Germany), British Aerospace
(UK), Dresdner Bank (Germany) and BNP Paribas (France). These stocks
performed well initially although they have been weak in the recent sell-off
in the equity markets.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE PERIOD ENDED
SEPTEMBER 30, 2000 AND HOW DID THEY IMPACT THE FUND?
A. The European markets were generally weak during the period. Market sentiment
was hit by the high cost of the cellular telecommunications licenses which
the operators were paying throughout Europe and by the rising price of oil
with its implicit political implications. Sentiment was further negatively
affected by the weakening Euro which fell to a low of 0.84 against the US
dollar in mid-September before rallying slightly to end the quarter at 0.88
. Since its launch in January 1999, the Euro has underperformed the US
dollar by 25%. On a positive note, planned tax reform will lead to lower
corporate and personal tax rates in France and Germany and the elimination
of a tax liability on the sale of cross shareholdings in Germany.
The Japanese market fell 4.7% in US dollars during the period. Most sectors
were weak, with the exception of healthcare, and the market was led down by
the technology and telecommunications sectors. The Bank of Japan ended its
zero interest rate policy after much external pressure and the concern is
that this will lead to an increase in the failure of companies, especially
within the construction and retail sectors.
There were, however, signs that parts of the Japanese economy may be
improving, primarily the capital expenditure sectors, which experienced
strong order growth from the electronics and the auto sectors throughout the
past quarter. Elsewhere, consumer spending is still depressed and current
government policy includes the introduction of yet another supplementary
budget, which will cause a further increase in government debt which already
stands around 130% of GDP.
As Asian economies are still very dependent on the strength of the global
economy, the expectation of slower global growth has had a big effect on the
Asian stock markets. Most of the Asian countries are oil importers and so
slower demand from Europe and the US and higher input prices have resulted
in weak stock markets. The Latin American markets performed less well in the
third quarter as investors wait to see the degree of soft landing in the
U.S., as this will affect the main driver of exports for these markets,
especially in Brazil and Mexico.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. At the current time, relationships between Israel and the Palestinians have
deteriorated significantly which has caused further nervousness in the oil
market. Inflation expectations are rising, leading to concerns that the U.S.
Federal Reserve Board will, at best, keep rates at current levels, causing
the U.S.- and hence global-growth to slow. The effect on overseas markets,
especially those emerging markets that are dependent on U.S. growth, will be
significant unless European growth, which is improving, can compensate for a
slower U.S. growth outlook.
[PHOTO OF BRIAN HOPKINSON OMITTED]
54
<PAGE>
GE PREMIER INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
ING Groep N.V. 5.17%
--------------------------------------------------------------------------------
BAE Systems PLC 4.63%
--------------------------------------------------------------------------------
Canon Inc. 4.55%
--------------------------------------------------------------------------------
Koninklijke (Royal) Philips
Electronics N.V. 4.04%
--------------------------------------------------------------------------------
AXA-UAP 3.98%
--------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing Co. Ltd. 3.96%
--------------------------------------------------------------------------------
Toshiba Corp. 3.91%
--------------------------------------------------------------------------------
Telefonica S.A. 3.81%
--------------------------------------------------------------------------------
Total S.A. (Class B) 3.79%
--------------------------------------------------------------------------------
CGNU PLC 3.74%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
and future income by investing primarily in a limited number of equity
securities of companies located in developed and developing countries
other than the United States.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Premier International GE Premier International MSCI EAFE
Equity Fund Equity Fund w/load
4/28/00 10,000.00 9,425.00 10,000.00
5/00 9,660.00 9,104.55 9,755.80
6/00 10,300.00 9,707.75 10,137.25
7/00 9,710.00 9,151.67 9,712.20
8/00 9,690.00 9,132.82 9,796.69
9/00 8,700.00 8,199.75 9,319.59
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier International Equity -13.00%
GE Premier International Equity w/load -18.00%
(maximum load-5.75%)
MSCI EAFE -6.80%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Premier International GE Premier International MSCI EAFE
Equity Fund Equity Fund w/load
4/28/00 10,000.00 10,000.00 10,000.00
5/00 9,650.00 9,264.00 9,755.80
6/00 10,290.00 9,890.00 10,137.25
7/00 9,690.00 9,302.40 9,712.20
8/00 9,660.00 9,273.60 9,796.69
9/00 8,670.00 8,323.20 9,319.59
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier International Equity -13.30%
GE Premier International Equity w/load -16.77%
(maximum load) 4.00%
MSCI EAFE -6.80%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Premier International GE Premier International MSCI EAFE
Equity Fund Equity Fund w/load
4/28/00 10,000.00 10,000.00 10,000.00
5/00 9,650.00 9,553.50 9,755.80
6/00 10,290.00 10,190.00 10,137.25
7/00 9,690.00 9,593.10 9,712.20
8/00 9,660.00 9,563.40 9,796.69
9/00 8,670.00 8,583.30 9,319.59
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier International Equity -13.30%
GE Premier International Equity w/load -14.17%
(maximum load) 1.00%
MSCIEAFE -6.80%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Premier International Equity Fund MSCI EAFE
4/28/00 10,000.00 10,000.00
5/00 9,660.00 9,755.80
6/00 10,310.00 10,137.25
7/00 9,710.00 9,712.20
8/00 9,700.00 9,796.69
9/00 8,710.00 9,319.59
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
---------
GE Premier International Equity -12.90%
MSCI EAFE -6.80%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
55
<PAGE>
GE PREMIER INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE PREMIER INTERNATIONAL EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
EUROPE 62.6%
JAPAN 20.9%
PACIFIC RIM 9.0%
OTHER REGIONS 5.6%
CASH & OTHER 1.9%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 98.1%
--------------------------------------------------------------------------------
AUSTRALIA -- 3.2%
Brambles Industries Ltd. .......... 13,364 $ 349,393
CANADA -- 2.8%
Celestica Inc. .................... 4,380 303,315(a)
FINLAND -- 2.5%
Sampo Insurance Co. Ltd.
(Series A) ..................... 5,441 266,390
FRANCE -- 19.8%
Alstom ............................ 13,955 322,501
Aventis S.A. ...................... 4,584 344,344
AXA-UAP ........................... 3,269 427,569
Banque Nationale de Paris ......... 2,900 256,031
Lagardere S.C.A. .................. 6,090 369,477
Total S.A. (Class B) .............. 2,775 406,609
2,126,531
GERMANY -- 7.4%
Dresdner Bank AG .................. 5,907 259,867
Fresenius Medical Care AG ......... 3,143 284,707
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) ........ 826 246,732
791,306
ISRAEL -- 2.8%
ECI Telecommunications Ltd. ....... 9,873 302,361
JAPAN -- 20.9%
Canon Inc. ........................ 11,000 488,572
Fujitsu Ltd. ...................... 15,000 349,112
Minebea Co. Ltd. .................. 23,000 269,785
Nippon Telegraph and Telephone
Corp. (NTT) .................... 18 176,921
Shin-Etsu Chemical Co. ............ 5,000 210,951
Sony Corp. ........................ 3,200 325,207
Toshiba Corp. ..................... 52,000 419,973
2,240,521
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
NETHERLANDS -- 9.2%
ING Groep N.V. .................... 8,315 $ 554,655
Koninklijke (Royal) Philips
Electronics N.V. ............... 10,070 434,022
988,677
SOUTH KOREA -- 1.8%
Samsung Electronics ............... 1,070 193,821
SPAIN -- 3.8%
Telefonica S.A. ................... 20,605 408,807(a)
TAIWAN -- 4.0%
Taiwan Semiconductor
Manufacturing Co. Ltd. ......... 128,000 425,018(a)
UNITED KINGDOM -- 19.9%
BAE Systems PLC ................... 92,058 496,928
Cable & Wireless PLC .............. 21,722 310,003
CGNU PLC .......................... 28,278 401,476
Invensys PLC ...................... 138,621 302,897
Royal & Sun Alliance Insurance
Group PLC ...................... 40,943 273,689
Vodafone AirTouch PLC ............. 94,808 354,034
2,139,027
TOTAL INVESTMENTS IN SECURITIES
(COST $11,623,367) ............. 10,535,167
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.5%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $479,112) ................ 479,112 479,112
OTHER ASSETS AND LIABILITIES,
NET (2.6)% ..................... (275,688)
-----------
NET ASSETS-- 100% ................. $10,738,591
===========
--------------------------------------------------------------------------------
OTHER INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The GE Premier International Equity Fund invested in the following sectors at
September 30, 2000:
PERCENT (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Financial 25.02%
Information Technology 23.11%
Industrials 16.22%
Telecommunication Services 11.64%
Consumer 10.51%
Healthcare 5.86%
Energy 3.79%
Materials 1.96%
Cash and Other 1.89%
--------
100.00%
========
---------
See Notes to Schedules of Investments and Financial Statements.
56
<PAGE>
GE PREMIER VALUE EQUITY FUND
Q&A
PAUL REINHARDT IS A SENIOR VICE PRESIDENT WITH GE ASSET MANAGEMENT AND IS THE
PORTFOLIO MANAGER FOR THE GE PREMIER VALUE EQUITY FUND. PAUL HAS EIGHTEEN YEARS
INVESTMENT EXPERIENCE, SIXTEEN WITH GEAM. PAUL HOLDS AN MBA FROM COLUMBIA
UNIVERSITY, A BA IN ECONOMICS FROM HARTWICK COLLEGE, IS A HOLDER OF A CHARTERED
FINANCIAL ANALYST DESIGNATION AND A MEMBER OF THE NEW YORK SOCIETY OF SECURITY
ANALYSTS.
Q. HOW DID THE GE PREMIER VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE PERIOD APRIL 28, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH SEPTEMBER
30, 2000?
A. The GE Premier Value Equity Fund returned 10.80% for Class A Shares, 10.50%
for Class B Shares, 10.50% for Class C Shares and 10.90% for Class Y Shares
compared with the Russell 1000 Value benchmark return of 3.87% for the
period ended September 30, 2000.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The largest performance driver for the Fund was stock selection within three
groups that represented approximately one-half of the Fund's assets. The
technology, financial, and utilities sectors had returns averaging 31%, 29%
and 11%, respectively.
Q. WHAT ARE SOME OF THE STOCKS THAT DROVE THE PERFORMANCE RESULTS?
A. In the technology sector, the standout performer was PerkinElmer (+91%).
Several financial stocks, including AFLAC (+40%), Allstate (+49%), PNC
Financial (+50%), Aon (+46%) and Hartford Financial Services (+41%),
contributed positively to performance. In the utilities area, Duke Energy
(+52%), Dominion Resources (+33%), and PECO Energy (+47%) all pushed
performance higher as well. On the downside, Eaton and Ingersoll-Rand both
pulled back in the capital goods area. Bowater and Westvaco contributed to
the negative return in the basic materials sector (-17%).
Q. WOULD YOU REVIEW THE STRATEGY FOR THE FUND?
A. The Fund's strategy is to invest in a concentrated list of strong,
well-managed companies that sell at low valuations. These companies are
primarily U.S. based companies with relatively large market capitalizations.
After screening for undervalued companies, the Fund's holdings are selected
by looking for the following characteristics: 1) attractive business mix; 2)
strong management team; 3) solid growth and market share; and 4) favorable
opinion from our equity analyst team.
It is the objective of the Fund to keep the average valuation and turnover
relatively low. The average P/E ratio for GE Premier Value Equity Fund's
holdings is currently under 20 times forward earnings. Turnover for the Fund
is expected to remain below 50%, as our investment horizon is typically 2-3
years. Sell decisions are typically based on 1) stock achieving price
target; 2) deteriorating fundamentals; or 3) change in analyst's opinion.
Q. IS NOW A GOOD TIME FOR VALUE STOCKS?
A. Value stocks in general have underperformed growth and technology equities
over the last five years. However, a large valuation discrepancy has
resulted from the underperformance. While many "old economy" industrial
companies sell at low multiples of earnings and cash flow, many "new
economy" growth stocks are discounting extremely high growth rates for years
to come.
As of September 30, 2000 the Russell 1000 Value and Growth Indices were
selling at 18 and 49 times forward earnings, respectively. Imbedded in the
valuations are differences in expected growth rates, with the growth index
having a consensus 5-year earnings growth rate nearly twice that of the
value index.
While investors have, in recent years, been "paying up" for faster growth,
significant price declines usually result when growth expectations fail to
materialize. Therefore, lower-expectation, lower-volatility value stocks
could have a superior performance stretch, as growth rates slow over the
next year.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. Corporate profit growth in 2001 is likely to drop below 10%, after two years
of strong double-digit performance (as measured by S&P 500 operating
profits). We feel the Fund is well-positioned to deliver good relative
performance in a slowing economic environment.
The Fund has overweighted positions in capital goods, energy, and utilities
(almost one-half of the Fund's assets). In addition, the Fund is
underweighted in both consumer-cyclicals and consumer-stables.
While capital goods is a cyclical group, Boeing, Eaton and Emerson Electric
have favorably changed their business mix to grow through a slowdown. Large
individual holdings in energy and utilities include Devon Energy, Duke
Energy, and Exxon Mobil.
We continue to focus on valuation metrics such as P/E, price-to-cash flow,
price-to-revenues, and dividend discount model returns. We also look at
"sum-of-the-parts" valuations to determine a company's worth to a corporate
or financial acquirer. So, in addition to owning the right companies, we
strive to own them at good prices where the risk-reward balance is in our
favor.
[PHOTO OF PAUL REINHARDT OMITTED]
57
<PAGE>
GE PREMIER VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Exxon Mobil Corp. 4.89%
--------------------------------------------------------------------------------
Boeing Co. 4.88%
--------------------------------------------------------------------------------
Duke Energy Corp. 4.46%
--------------------------------------------------------------------------------
Devon Energy Corp. 3.97%
--------------------------------------------------------------------------------
Citigroup Inc. 3.85%
--------------------------------------------------------------------------------
AFLAC Inc. 3.85%
--------------------------------------------------------------------------------
SBC Communications Inc. 3.84%
--------------------------------------------------------------------------------
Allstate Corp. 3.48%
--------------------------------------------------------------------------------
Dominion Resources Inc. 3.41%
--------------------------------------------------------------------------------
FleetBoston Financial Corp. 3.30%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital
and future income by investing primarily in a limited number of equity
securities of large U.S. companies that the portfolio manager believes
are undervalued by the markets but have solid growth prospects.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER VALUE GE PREMIER VALUE S&P 500/BARRA RUSSELL
EQUITY FUND EQUITY FUND W/LOAD VALUE 1000 VALUE
4/28/2000 10,000.00 10,000.00 10,000.00 10,000.00
5/00 10,270.00 9,679.47 10,031.20 10,105.00
6/00 9,660.00 9,104.55 9,634.97 9,643.20
7/00 9,900.00 9,330.75 9,827.76 9,763.74
8/00 10,750.00 10,131.87 10,487.21 10,286.10
9/00 11,080.00 10,442.90 10,485.11 10,365.30
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Value Equity 10.80%
GE Premier Value Equity w/load 4.43%
(maximum load-5.75%)
Russell 1000 Value 3.87%
S&P 500/BARRA Value 4.85%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER VALUE GE PREMIER VALUE S&P 500/BARRA RUSSELL
EQUITY FUND EQUITY FUND W/LOAD VALUE 1000 VALUE
4/28/00 10,000.00 10,000.00 10,000.00 10,000.00
5/00 10,270.00 9,870.00 10,031.20 10,105.00
6/00 9,650.00 9,264.00 9,634.97 9,643.20
7/00 9,880.00 9,484.80 9,827.76 9,763.74
8/00 10,720.00 10,320.00 10,487.21 10,286.10
9/00 11,050.00 10,650.00 10,485.11 10,365.30
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Value Equity 10.50%
GE Premier Value Equity w/load 6.50%
(maximum load) 4.00%
Russell 1000 Value 3.87%
S&P 500/BARRA Value 4.85%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER VALUE GE PREMIER VALUE S&P 500/BARRA RUSSELL
EQUITY FUND EQUITY FUND W/LOAD VALUE 1000 VALUE
4/28/00 10,000.00 10,000.00 10,000.00 10,000.00
5/00 10,270.00 10,170.00 10,031.20 10,105.00
6/00 9,650.00 9,553.50 9,634.97 9,643.20
7/00 9,880.00 9,781.20 9,827.76 9,763.74
8/00 10,720.00 10,620.00 10,487.21 10,286.10
9/00 11,050.00 10,950.00 10,485.11 10,365.30
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
---------
GE Premier Value Equity 10.50%
GE Premier Value Equity w/load 9.50%
(maximum load) 1.00%
Russell 1000 Value 3.87%
S&P 500/BARRA Value 4.85%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE PREMIER VALUE EQUITY FUND S&P 500/BARRA VALUE RUSSELL 1000 VALUE
4/28/00 10,000.00 10,000.00 10,000.00
5/00 10,280.00 10,031.20 10,105.00
6/00 9,670.00 9,634.97 9,643.20
7/00 9,900.00 9,827.76 9,763.74
8/00 10,760.00 10,487.21 10,286.10
9/00 11,090.00 10,485.11 10,365.30
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Premier Value Equity 10.90%
Russell 1000 Value 3.87%
S&P 500/BARRA Value 4.85%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
58
<PAGE>
GE PREMIER VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE PREMIER VALUE EQUITY FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
MISCELLANEOUS 2.7%
FINANCIAL 26.5%
UTILITIES 20.7%
ENERGY 15.0%
CAPITAL GOODS 11.4%
CONSUMER CYCLICAL 6.2%
BASIC MATERIALS 5.7%
CASH & OTHER 5.1%
CONSUMER STABLE 4.2%
TECHNOLOGY 2.6%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 94.9%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 5.7%
Alcoa Inc. ........................ 4,481 $ 113,425
Bowater Inc. ...................... 7,707 357,894
Westvaco Corp. .................... 11,292 301,355
772,674
CAPITAL GOODS -- 11.4%
Boeing Co. ........................ 10,396 654,948
Eaton Corp. ....................... 5,377 331,358
Emerson Electric Co. .............. 6,093 408,231
Martin Marietta Materials Inc. .... 3,428 131,224
1,525,761
CONSUMER - CYCLICAL -- 6.2%
CVS Corp. ......................... 3,047 141,114
Delphi Automotive Systems Corp. ... 17,924 271,101
Interpublic Group Cos. Inc. ....... 5,825 198,414
McDonald's Corp. .................. 7,170 216,444
827,073
CONSUMER - STABLE -- 4.2%
Baxter International Inc. ......... 5,378 429,232
Philip Morris Cos. Inc. ........... 4,481 131,909
561,141
ENERGY -- 15.0%
BP Amoco PLC ADR .................. 4,481 237,493
Conoco Inc. (Class B) ............. 9,858 265,550
Devon Energy Corp. ................ 8,872 533,651
Exxon Mobil Corp. ................. 7,368 656,673
Tosco Corp. ....................... 10,217 318,642
2,012,009
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
FINANCIAL -- 26.5%
AFLAC Inc. ........................ 8,066 $ 516,728
Allstate Corp. .................... 13,443 467,144
Aon Corp. ......................... 8,962 351,759
Bank One Corp. .................... 4,429 171,070
Chase Manhattan Corp. ............. 3,584 165,536
Chubb Corp. ....................... 1,792 141,792
Citigroup Inc. .................... 9,560 516,837
FleetBoston Financial Corp. ....... 11,382 443,898
Hartford Financial Services
Group Inc. ..................... 4,481 326,833
PNC Financial Services Group ...... 5,556 361,140
U.S. Bancorp. ..................... 4,481 101,943
3,564,680
MISCELLANEOUS -- 2.6%
SPDR Trust ........................ 2,453 352,312
TECHNOLOGY -- 2.6%
Axcelis Technologies Inc. ......... 3,137 37,252(a)
First Data Corp. .................. 1,793 70,039(h)
PerkinElmer Inc. .................. 2,287 238,706
345,997
UTILITIES -- 20.7%
AT&T Corp. ........................ 3,137 92,149
Dominion Resources Inc. ........... 7,887 457,939
Duke Energy Corp. ................. 6,990 599,393
El Paso Energy Corp. .............. 5,825 358,966
PECO Energy Co. ................... 5,467 331,095
SBC Communications Inc. ........... 10,306 515,300
Verizon Communications ............ 5,377 260,448
WorldCom Inc. ..................... 5,377 163,327(a)
2,778,617
TOTAL INVESTMENTS IN SECURITIES
(COST $11,529,920) ............. 12,740,264
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.2%
-------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $566,163) ................ 566,163 566,163
OTHER ASSETS AND LIABILITIES,
NET 0.9% ....................... 125,324
-----------
NET ASSETS-- 100% ................. $13,431,751
===========
---------
See Notes to Schedules of Investments and Financial Statements.
59
<PAGE>
GE INCOME FUNDS
Q&A
ROBERT MACDOUGALL LEADS THE FIXED INCOME TEAM AT GE ASSET MANAGEMENT. TOTAL
ASSETS UNDER HIS MANAGEMENT EXCEEDS $31 BILLION. BOB JOINED GEAM 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. REVIEW WHAT HAPPENED IN THE FIXED INCOME MARKET OVER THE ONE-YEAR PERIOD
ENDED SEPTEMBER 30, 2000.
A. For the twelve months ended
September 30, 2000, the U.S. fixed income market was clearly defined by an
"inversion" in the yield curve. Yields on short maturity notes became
greater than the yields of long maturity bonds. The cause of this atypical
reshaping of the yield curve was twofold. Strong economic growth, driven by
explosive demand from consumers confident from increasing job growth and
stock market gains, forced the Federal Reserve to take action against the
risk of higher inflation, typically a byproduct of a strong economy. By May
of 2000, the Federal Reserve had raised the Federal Funds rate 175 basis
points to 6.50%, a nine year high. This caused yields in the front end of
the curve to rise. Conversely, the long dated economic expansion created a
surplus in the federal budget. This enabled the U.S. Treasury to announce in
January 2000 their intention to reduce the amount of quarterly debt issuance
and to buy back Treasury debt, particularly long maturity issues. This
expected reduction in supply drove yields on long Treasuries downward. On
May 16, 2000, the last time the Fed raised rates, two-year notes yielded 76
basis points more than 30-year bonds. Since May 2000, the Federal Reserve
has held monetary policy steady as economic growth appears to be softening,
the stock market has stumbled, and productivity gains hold inflation fears
in check. Recently, market expectations for further Federal Reserve
tightening through year- end dropped to zero, easing rates in the short end
of the yield curve; however, inflationary risks posed by higher oil prices
have put upward pressure on long yields. By the end of the period, two-year
notes yielded 5.60% and 30-year bonds yielded 5.88%, up 37 basis points and
down 17 basis points, respectively.
For the twelve-month period, the U.S. fixed income market posted a total
return of 6.99%, as measured by the Lehman Brothers Aggregate Bond Index.
Long maturity Treasuries (greater than 20 years) were the star performers,
providing investors with a 10.12% return. Investors were punished for
holding government agency and corporate securities versus U.S. Treasuries.
Agency yield spreads widened in reaction to a congressional debate over
benefits from government sponsorship enjoyed by these issuers. Inversion of
the yield curve, poor liquidity and credit concerns due to stock buybacks
and leveraged buy-outs caused corporate spreads to widen dramatically,
particularly on longer maturity issues. As a result, the corporate sector
posted the worst relative performance (4.99% return) for the period.
Although the securitized asset classes such as mortgage-backed and
asset-backed sectors suffered spread widening in the first half of 2000 due
to yield curve inversion, these security types still managed to outperform
U.S. Treasuries for the full twelve months.
[PHOTO OMITTED]
60
<PAGE>
GE INCOME FUNDS (CONTINUED)
GE FIXED INCOME FUND
Q. HOW DID THE GE FIXED INCOME FUND'S BENCHMARK AND PEER GROUP PERFORM FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The Lehman Brothers Aggregate Bond Index returned 6.99% for the period. The
average return for the Lipper Intermediate Government Bond peer group,
consisting of 141 funds, was 5.77%. To see how your class of shares in the
GE Fixed Income Fund performed relative to its benchmark and peers, please
refer to page 62.
Q. WHAT WERE THE PRIMARY DRIVERS OF FUND PERFORMANCE?
A. The Fund performed well versus its peer group. Before fees, the Fund
slightly underperformed the benchmark. Relative overweight positions in
corporate and commercial mortgage-backed securities provided positive
returns in the final quarter of 1999. Relative return was also enhanced by
an above market weighting in long maturity Treasury bonds, which
outperformed due to the inversion of the yield curve. Underperformance by
the agency and corporate sectors in 2000 somewhat offset these positive
drivers of return.
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, 2000?
A. The Lehman Brothers Government Bond Index posted a total return of 7.18%
compared to the average return for the 141 Intermediate Government Bond
funds making up the Lipper peer group, of 5.77%. To see how your class of
shares in the GE Government Securities Fund performed over this period,
please refer to page 69.
Q. WHAT WERE THE PRIMARY DETERMINANTS OF FUND PERFORMANCE?
A. While the Fund outperformed the Lehman Brothers Government Bond Index before
fees and expenses, net performance lagged that of the benchmark. The Fund
performed strongly within its peer group during the period. This positive
relative performance was attributable to the Fund's allocation to
mortgage-backed and commercial mortgage-backed securities.
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, 2000?
A. The Lehman Brothers 1-3 Year Government Bond Index posted a total return of
5.84% compared to the average return for the Lipper peer group of 189
Short-Term U.S. Government Bond funds of 5.49%. To see how your class of
shares in the GE Short-Term Government Fund performed over this period,
please refer to page 72.
Q. WHAT WERE THE PRIMARY DETERMINANTS OF FUND PERFORMANCE?
A. Before fees and expenses, the Fund outperformed the Lehman Brothers 1-3 Year
Government Bond Index for the period. It also outperformed the average
return within its Lipper peer group. Allocations to mortgage-backed and
asset-backed securities contributed significantly to the Fund's strong
relative performance.
OVERALL
Q. WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
A. Looking ahead, we expect the Federal Reserve will hold monetary policy
steady through year-end while keeping their bias towards raising rates given
the tight labor market and inflationary effects of higher energy costs. With
the 10-year Treasury yielding 70 basis points less than the Fed Funds rate,
bonds appear fully priced. However, interest rates should remain
range-bound, waiting for a clearer view of economic growth and inflation. We
believe that the recent normalization (steepening) of the yield curve will
continue over the near term, which should favor non-Treasury securities.
Therefore, selective positioning in spread sectors and good security
selection should provide above market returns through added income and
positive relative price performance.
61
<PAGE>
GE FIXED INCOME FUND
--------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
Percent of
Moody's/S&P Rating** Market Value
--------------------------------------------------------------------------------
Aaa or better 79.46%
A to AA 13.57%
Below A 6.67%
Other 0.30%
--------------------------------------------------------------------------------
100.00%
** MOODY'S INVESTORS SERVICE, INC. AND 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 9/30/00
One Five
Year Year
-------- --------
Number of
Funds in
peer group: 141 92
Peer group
average annual
total return: 5.77% 5.40%
Lipper categories
in peer group: INTERMEDIATE U.S. GOVERNMENT, INTERMEDIATE U.S. TREASURY
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Fixed Income GE Fixed Income w/load LB Aggregate
2/22/93 10,000.00 9,575.00 10,000.00
10,081.05 9,655.60 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
14,518.41 13,905.77 15,237.89
9/00 15,117.54 14,479.62 15,969.85
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ---- ---------
GE Fixed Income 5.94% 5.59% 5.58%
GE Fixed Income w/load 1.45% 4.67% 4.99%
(maximum load-4.25%)
LB Aggregate 6.99% 6.46% 6.35%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 9,713.37
9/94 9,669.13 9,669.13 9,671.19
10,094.77 10,094.77 10,197.85
9/95 10,827.50 10,827.50 11,031.69
10,997.08 10,997.08 11,296.35
9/96 11,196.65 11,196.65 11,570.04
11,437.39 11,437.39 11,851.06
9/97 12,164.50 12,164.50 12,697.29
12,616.61 12,616.61 13,273.05
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
13,239.82 13,239.82 14,398.16
9/00 13,787.91 13,787.91 15,089.78
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ---- ---------
GE Fixed Income 5.15% 4.84% 4.85%
GE Fixed Income w/load 2.16% 4.84% 4.85%
(maximum load) 3.00% 0.00% 0.00%
LB Aggregate 6.99% 6.46% 6.26%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Fixed Income GE Fixed Income w/load LB Aggregate
10/1/99 10,000.00 10,000.00 10,000.00
10/99 10,022.60 10,022.60 10,037.00
11/99 10,019.69 10,019.69 10,036.00
12/99 9,967.76 9,967.76 9,987.82
01/00 9,913.49 9,913.49 9,954.86
02/00 10,019.31 10,019.31 10,075.32
03/00 10,134.71 10,035.99 10,208.31
04/00 10,081.53 9,983.74 10,178.71
05/00 10,047.88 9,950.77 10,173.62
06/00 10,240.50 10,142.03 10,385.23
07/00 10,316.57 10,217.85 10,479.74
08/00 10,455.07 10,355.49 10,631.69
09/00 10,514.93 10,415.27 10,698.67
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Fixed Income 5.15% 5.15%
GE Fixed Income w/load 4.15% 4.15%
(maximum load) 1.00% 1.00%
LB Aggregate 6.99% 6.99%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 13,827.95 14,180.80
14,073.04 14,476.20
9/00 14,672.97 15,171.57
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
----- ---- ---------
GE Fixed Income 6.11% 5.85% 5.77%
LB Aggregate 6.99% 6.46% 6.28%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
62
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE FIXED INCOME FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
MORTGAGE BACKED 41.4%
CORPORATE NOTES 25.9%
FEDERAL AGENCIES 13.4%
U.S. TREASURIES 12.0%
ASSET BACKED & OTHER 7.3%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 106.1%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 12.0%
U.S. Treasury Bonds
8.125% 08/15/19 .......... $8,485,000 $10,363,664(h)
6.125% 08/15/29 .......... 1,315,000 1,343,154(j)
6.25% 05/15/30 .......... 4,060,000 4,266,816(j)
15,973,634
U.S. Treasury Notes
6.75% 05/15/05 .......... 1,890,000 1,957,927(j)
3.875% 01/15/09 .......... 1,289,227 1,277,546(h,q)
5.75% 08/15/10 .......... 250,000 249,375
3,484,848
TOTAL U.S. TREASURIES
(COST $19,303,280) ......... 19,458,482
FEDERAL AGENCIES -- 13.4%
Federal Home Loan Bank
6.75% 05/01/02 .......... 6,160,000 6,179,219(j)
Federal Home Loan Mortgage Corp.
7.375% 05/15/03 .......... 240,000 244,762
6.22% 03/18/08 .......... 880,000 827,886
1,072,648
Federal National Mortgage Assoc.
5.75% 04/15/03 .......... 685,000 672,478
5.125% 02/13/04 .......... 1,715,000 1,641,032
5.78% 05/05/04 .......... 685,000 661,772
7.00% 07/15/05 .......... 5,595,000 5,689,388(j)
6.99% 07/09/07 .......... 945,000 922,112
5.64% 12/10/08 .......... 935,000 879,209
6.04% 02/25/09 .......... 1,575,000 1,468,435
7.25% 01/15/10 .......... 1,005,000 1,036,406(j)
6.00% TBA ............... 1,633,000 1,524,814(c)
14,495,646
TOTAL FEDERAL AGENCIES
(COST $21,849,893) ......... 21,747,513
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AGENCY MORTGAGE BACKED -- 31.5%
Federal Home Loan Mortgage Corp.
7.50% 11/01/09 .......... $ 300,975 $ 303,891
7.50% 06/01/10 .......... 352,178 355,150
9.00% 12/01/16 .......... 180,922 186,121
9.50% 04/01/21 .......... 15,882 16,507(h)
6.00% 04/01/29-08/01/29 . 2,683,429 2,508,175
6.50% 04/01/29-08/01/29 . 5,226,232 5,028,032
6.00% 01/01/30 .......... 894,085 835,693
6.50% 01/01/30-07/01/30 . 812,961 781,319
7.00% 02/01/30-04/01/30 . 346,247 339,504
7.50% 01/01/30-02/01/30 . 492,717 491,943
7.00% TBA ............... 3,250,000 3,183,993(c)
7.50% TBA ............... 7,925,000 7,912,637(c)
21,942,965
Federal National Mortgage Assoc.
9.00% 06/01/09 .......... 632,685 661,551
7.50% 12/01/09 .......... 312,300 315,076
7.00% 08/01/13 .......... 118,762 118,651
7.50% 02/01/14 .......... 228,769 231,127
6.00% 09/01/14 .......... 353,599 340,225
8.00% 07/01/15 .......... 55,782 56,792
9.00% 04/01/16 .......... 682,281 701,644
9.00% 12/01/17 .......... 226,325 234,174
9.00% 12/01/22 .......... 259,727 268,735
7.50% 12/01/23 .......... 410,182 414,014
6.50% 01/01/29-12/01/29 . 5,106,872 4,903,891
6.00% 10/01/29 .......... 921,500 860,746
7.00% 12/01/29 .......... 316,927 310,389
6.50% 01/01/30 .......... 141,727 136,013
7.00% 01/01/30-02/01/30 . 462,566 453,127
7.50% 01/01/30-02/01/30 . 682,460 680,754
8.50% 07/01/30-09/01/30 . 1,120,350 1,146,738
6.00% TBA ............... 380,000 365,632(c)
6.50% TBA ............... 610,000 585,411(c)
6.50% TBA ............... 7,011,000 6,872,954(c)
19,657,644
Government National Mortgage Assoc.
7.00% 03/15/12 .......... 1,074,542 1,078,572
9.00% 11/15/16 .......... 602,595 633,285
9.00% 01/15/17-11/15/17 . 470,968 494,954
9.00% 12/15/21 .......... 50,183 52,316
7.50% 01/15/23-12/15/23 . 1,447,079 1,455,659
6.50% 02/15/24-04/15/24 . 849,915 822,556
8.00% 07/15/27-11/15/27 . 652,144 663,967
7.00% 02/15/28-04/15/28 . 737,631 726,567
6.50% 04/15/28 .......... 1,512,943 1,457,145
7.50% 01/15/28-09/15/28 . 686,859 689,211
8.00% 12/15/29 .......... 26,490 26,962
8.00% 01/15/30-06/15/30 . 1,495,009 1,521,635
9,622,829
TOTAL AGENCY MORTGAGE BACKED
(COST $51,124,284) ......... 51,223,438
---------
See Notes to Schedules of Investments and Financial Statements.
63
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 4.6%
Collateralized Mortgage Obligation Trust
8.31% 09/01/15 ............ $ 19,900 $ 17,746(d,f)
7.28% 11/01/18 ............ 58,720 38,462(d,f)
56,208
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 ............ 28,899 29,620
6.204% 02/15/22 ............ 165,000 146,122
7.75% 03/15/22 ............ 984,724 989,028
5.75% 06/15/23 ............ 293,000 281,298
5.46% 10/15/23 ............ 179,902 96,303(d,f)
6.894% 02/15/24 ............ 139,000 125,057
7.50% 07/15/27 ............ 61,710 16,546(g)
7.00% 01/15/28 ............ 101,000 38,474(g)
6.04% 04/01/29 ............ 376,388 243,652(d,f)
6.34% 06/15/29 ............ 2,403,833 1,521,176(d,f)
7.50% 06/15/29-07/15/29 ... 709,827 153,969(g)
2.745% 09/15/29 ............ 303,798 193,481
4.461% 03/15/30 ............ 460,131 331,299
4,166,025
Federal Home Loan Mortgage Corp. STRIPS
8.00% 02/01/23 ............ 123,851 33,207(g)
8.00% 07/01/24 ............ 133,520 37,244(g)
5.50% 08/01/27 ............ 295,906 213,236(d,f)
8.00% 01/01/28 ............ 129,122 36,032(g)
5.97% 04/01/28 ............ 95,515 63,040(d,f)
382,759
Federal National Mortgage Assoc.
6.18% 10/25/29 ............ 249,106 159,348(d,f)
7.00% 12/01/29 ............ 428,373 117,535(g)
276,883
Federal National Mortgage Assoc. REMIC
1,080.912%03/25/22 ........... 341 11,519(d,g)
1,008.00%05/25/22 ............ 413 11,398(d,g)
5.62% 12/25/22 ............ 55,834 41,765(d,f)
3.561% 12/18/29 ............ 144,210 95,088
159,770
Federal National Mortgage Assoc. STRIPS
8.50% 03/01/17-04/01/17 ... 72,356 18,226(g)
8.50% 01/01/18 ............ 8,487 2,130(g)
9.00% 05/25/22 ............ 57,289 15,769(g)
8.50% 07/25/22 ............ 107,555 29,234(g)
8.00% 02/01/23-08/01/23 ... 1,511,074 430,328(g)
7.50% 11/01/23 ............ 195,111 56,947(g)
8.00% 07/01/24 ............ 459,105 128,260(g)
8.00% 11/01/26 ............ 307,314 84,175(g)
7.50% 04/01/27-07/01/27 ... 3,056,887 871,280(g)
5.93% 05/01/28 ............ 850,623 560,612(d,f)
8.00% 11/01/29 ............ 564,759 143,425(g)
5.24% 05/01/30 ............ 176,293 131,118(d,f)
2,471,504
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $7,549,185) ............ 7,513,149
ASSET BACKED -- 13.4%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 ............ 19,672 18,658
American Express Credit Account
Master Trust
6.821% 03/15/05 ............ 107,000 107,268
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
American Express Master Trust
6.771% 08/15/04 ............$ 1,244,000 $ 1,246,326(i)
Arran Master Trust
6.80% 03/15/05 ............ 100,000 100,062(p)
Citibank Credit Card Master Trust I
5.75% 01/15/03 ............ 41,000 40,872
5.30% 01/09/06 ............ 375,000 359,411
Discover Card Master Trust I
6.731% 09/15/04 ............ 2,200,000 2,200,682(i)
6.801% 11/15/07 ............ 1,000,000 1,000,781(p)
First Chicago Master Trust II
6.861% 12/15/03 ............ 1,000,000 1,002,500
6.746% 08/15/04 ............ 1,500,000 1,499,055
First Deposit Master Trust
Series 1996-1
6.791% 08/15/07 ............ 2,000,000 2,003,740(d,p)
Ford Credit Auto Loan Master Trust
5.50% 02/15/03 ............ 95,000 94,545
Ford Credit Auto Owner Trust
7.03% 11/15/03 ............ 1,305,000 1,311,729
Green Tree Financial Corp.
Series 1993-1
6.90% 04/15/18 ............ 99,753 98,817
MBNA Master Credit Card Trust
6.746% 06/15/04 ............ 1,000,000 1,001,250
6.851% 04/15/05 ............ 358,000 359,228(i)
6.70% 11/15/05 ............ 1,000,000 1,000,310(p)
Metris Master Trust
6.833% 01/22/07 ............ 2,000,000 2,000,000(p)
Mid State Trust
7.54% 07/01/35 ............ 45,873 42,648
National City Credit Card
Master Trust
6.791% 08/15/07 ............ 1,000,000 999,757(p)
Providian Gateway Master Trust
6.84% 03/15/07 ............ 1,050,000 1,050,000
Providian Master Trust
6.788% 04/15/09 ............ 3,000,000 3,000,000(p)
Superior Wholesale Inventory
Financing Trust
6.905% 04/15/07 ............ 1,000,000 1,001,170(p)
West Penn Funding LLC
6.81% 09/25/08 ............ 117,000 116,653
Yorkshire Power Pass-Through
Asset Trust
8.25% 02/15/05 ............ 160,000 165,707(b)
TOTAL ASSET BACKED
(COST $21,806,646) ........... 21,821,169
CORPORATE NOTES -- 25.9%
Abbey National Capital Trust I
8.963% 12/29/49 ............ 295,000 295,709(i)
Abbey National PLC
6.70% 06/29/49 ............ 220,000 199,129(i)
7.35% 10/29/49 ............ 145,000 137,986(i)
Abitibi-Consolidated Inc.
8.30% 08/01/05 ............ 115,000 117,798
AES Drax Holdings Ltd.
10.41% 12/31/20 ............ 200,000 209,900(b)
Aetna Services Inc.
6.97% 08/15/36 ............ 330,000 327,700
----------
See Notes to Schedules of Investments and Financial Statements.
64
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AFLAC Inc.
6.50% 04/15/09 ........... $ 110,000 $ 102,169
Ahold Finance USA Inc.
8.25% 07/15/10 ........... 180,000 181,154
AIG SunAmerica GBL Fin II
7.60% 06/15/05 ........... 315,000 323,593(b)
Allstate Corp.
7.20% 12/01/09 ........... 1,160,000 1,141,823
Amerada Hess Corp.
7.875% 10/01/29 ........... 340,000 339,150
American Airlines Inc.
9.71% 01/02/07 ........... 258,727 276,929
6.855% 04/15/09 ........... 116,956 115,351
10.18% 01/02/13 ........... 75,000 83,120
Armstrong World Industries Inc.
7.45% 05/15/29 ........... 165,000 89,592
Arvin Industries Inc.
7.125% 03/15/09 ........... 110,000 97,666
Associates Corp. of North America
6.375% 10/15/02 ........... 300,000 297,609
5.75% 11/01/03 ........... 935,000 906,539
Bank One Corp.
6.896% 01/07/02 ........... 500,000 499,950(p)
6.40% 08/01/02 ........... 125,000 124,161
Barclays Bank PLC
8.55% 09/29/49 ........... 275,000 276,265(b)
BCI US Funding Trust I
8.01% 12/29/49 ........... 150,000 139,626(b,i)
Beckman Instruments Inc.
7.10% 03/04/03 ........... 100,000 97,002
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 ........... 75,000 79,340
Bellsouth Capital Funding
7.875% 02/15/30 ........... 395,000 407,462
Bellsouth Telecomm Inc.
6.375% 06/01/28 ........... 465,000 399,077
Boeing Capital Corp.
7.10% 09/27/05 ........... 375,000 377,265
Boston University
7.625% 07/15/97 ........... 325,000 296,374
Brascan Ltd.
7.375% 10/01/02 ........... 60,000 58,832
Bristol-Myers Squibb Co.
6.875% 08/01/97 ........... 100,000 92,064
CBS Corp.
7.15% 05/20/05 ........... 170,000 170,284
CIT Group Inc.
7.125% 10/15/04 ........... 620,000 617,545
Citigroup Inc.
7.45% 06/06/02 ........... 300,000 303,495
Clear Channel Communications Inc.
7.25% 09/15/03 ........... 255,000 255,468
7.875% 06/15/05 ........... 195,000 198,945
Coastal Corp.
7.75% 06/15/10 ........... 350,000 355,050
ConAgra Foods Inc.
7.50% 09/15/05 ........... 190,000 191,322
Conseco Inc.
8.70% 11/15/26 ........... 37,000 15,910
Corporacion Andina de Fomento
6.75% 03/15/05 ........... 190,000 183,911
CSC Holdings Inc.
8.125% 07/15/09 ........... 200,000 197,918
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
CSX Corp.
6.25% 10/15/08 ............ $ 240,000 $ 217,495
DaimlerChrysler AG
7.40% 01/20/05 ............ 275,000 276,466
DaimlerChrysler NA Holding Corp.
6.78% 09/16/02 ............ 2,000,000 1,999,724(p)
Delphi Automotive Systems Corp.
6.125% 05/01/04 ............ 245,000 233,823
Deutsche Telekom AG
7.75% 06/15/05 ............ 505,000 516,964
8.25% 06/15/30 ............ 910,000 934,815
Dominion Resources Inc.
7.60% 07/15/03 ............ 125,000 126,234
Dresdner Funding Trust I
8.151% 06/30/31 ............ 415,000 370,815(b)
Duke Capital Corp.
7.25% 10/01/04 ............ 845,000 850,814
Duke Energy Corp.
5.375% 01/01/09 ............ 400,000 351,904
Electronic Data Systems Corp.
6.85% 10/15/04 ............ 100,000 99,292
Empresa Nacional De Electricidad
8.125% 02/01/97 ............ 100,000 80,836
Enron Corp.
8.00% 08/15/05 ............ 330,000 335,612(b)
EOP Operating LP
6.50% 01/15/04 ............ 185,000 179,909
ERAC USA Finance Co.
8.25% 05/01/05 ............ 445,000 454,461(b)
Federated Department Stores Inc.
8.50% 06/01/10 ............ 150,000 149,577
First Union Corp.
7.55% 08/18/05 ............ 250,000 253,033
Ford Motor Co.
7.375% 10/28/09 ............ 325,000 317,531
7.45% 07/16/31 ............ 205,000 189,572
Ford Motor Credit Co.
7.50% 06/15/03 ............ 260,000 262,577
7.60% 08/01/05 ............ 380,000 383,940
7.875% 06/15/10 ............ 440,000 444,554
FPL Group Capital Inc.
7.375% 06/01/09 ............ 700,000 689,990
General Motors Acceptance Corp.
5.75% 11/10/03 ............ 110,000 106,158
6.125% 01/22/08 ............ 175,000 160,172
Georgia-Pacific Group
9.95% 06/15/02 ............ 105,000 108,962
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 ............ 65,000 8,450(b,l)
Hanson PLC
7.875% 09/27/10 ............ 255,000 252,589
Heritage Media Corp.
8.75% 02/15/06 ............ 135,000 133,988
Honeywell International Inc.
6.875% 10/03/05 ............ 380,000 377,940
Household Finance Corp.
6.125% 07/15/12 ............ 135,000 133,041(i)
HSBC Capital Funding LP
9.547% 06/30/10 ............ 355,000 375,895(b)
10.176% 06/30/30 ............ 100,000 110,236(b)
Hydro-Quebec
8.25% 04/15/26 ............ 360,000 387,425
---------
See Notes to Schedules of Investments and Financial Statements.
65
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
International Paper Co.
8.00% 07/08/03 ............ $ 255,000 $ 260,110(b)
8.125% 07/08/05 ............ 190,000 196,255(b)
Israel Electric Corp. Ltd.
8.10% 12/15/96 ............ 240,000 205,397(b)
7.125% 07/15/05 ............ 95,000 93,207(b)
J.P. Morgan & Co.
6.00% 01/15/09 ............ 170,000 156,106
Koninklijke (Royal) KPN NV
7.50% 10/01/05 ............ 190,000 190,627(b)
Kroger Co.
7.375% 03/01/05 ............ 130,000 128,176
LCI International Inc.
7.25% 06/15/07 ............ 366,000 358,922
Lehman Brothers Holdings Inc.
7.75% 01/15/05 ............ 390,000 397,827
8.25% 06/15/07 ............ 160,000 165,680
7.50% 08/01/26 ............ 205,000 207,333
Lenfest Communications Inc.
8.375% 11/01/05 ............ 165,000 172,841
Liberty Property Ltd. Partnership
7.50% 01/15/18 ............ 125,000 107,860
Lockheed Martin Corp.
7.95% 12/01/05 ............ 330,000 338,049
8.20% 12/01/09 ............ 235,000 244,717
Lumbermens Mutual Casualty
8.30% 12/01/37 ............ 35,000 27,919(b)
Marconi Corp. PLC
8.375% 09/15/30 ............ 775,000 767,242
Meditrust
7.114% 08/15/04 ............ 130,000 71,175
Merita Bank Ltd.
7.15% 12/29/49 ............ 145,000 143,202(b,i)
Merrill Lynch & Co.
5.71% 01/15/02 ............ 195,000 192,102
MidAmerican Energy Co.
7.375% 08/01/02 ............ 245,000 245,645
Midwest Generation LLC
8.56% 01/02/16 ............ 490,000 481,018(b)
Monumental Global Funding II
6.95% 10/01/03 ............ 310,000 309,854(b)
Morgan Stanley, Dean Witter & Co.
7.125% 01/15/03 ............ 185,000 185,866
5.625% 01/20/04 ............ 75,000 72,172
8.00% 06/15/10 ............ 380,000 396,340
Nabisco Inc.
6.70% 06/15/02 ............ 550,000 539,181
6.125% 02/01/33 ............ 140,000 134,245
National Rural Utilities Cooperative
6.046% 04/15/03 ............ 115,000 113,238
NB Capital Trust IV
8.25% 04/15/27 ............ 220,000 207,275
News America Holdings Inc.
7.625% 11/30/28 ............ 200,000 179,462
Noram Energy Corp.
6.375% 11/01/03 ............ 140,000 137,089(i)
Northrop-Grumman Corp.
8.625% 10/15/04 ............ 130,000 135,508
Occidental Petroleum Corp.
7.375% 11/15/08 ............ 160,000 158,106
8.45% 02/15/29 ............ 195,000 204,141
Ontario Province of Canada
7.375% 01/27/03 ............ 270,000 273,575
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Osprey Trust/Osprey I
7.797% 01/15/03 ............ $250,000 $250,000(b)
Pactiv Corp.
8.375% 04/15/27 ............ 215,000 194,227
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 ............ 300,000 285,966(b)
Petroleos Mexicanos
9.50% 09/15/27 ............ 340,000 351,050
Pharmacia Corp.
5.75% 12/01/05 ............ 150,000 142,894
Philip Morris Cos. Inc.
7.20% 02/01/07 ............ 100,000 96,073
Phillips Petroleum Co.
8.50% 05/25/05 ............ 125,000 132,132
9.375% 02/15/11 ............ 170,000 192,403
PP&L Capital Funding Inc.
7.75% 04/15/05 ............ 305,000 301,004
Procter & Gamble Co.
9.36% 01/01/21 ............ 205,000 233,729
Quebec Province of Canada
7.50% 09/15/29 ............ 235,000 234,739
Qwest Corp.
7.625% 06/09/03 ............ 550,000 556,705(b)
5.625% 11/15/08 ............ 150,000 132,695
Raytheon Co.
7.90% 03/01/03 ............ 250,000 252,012(b)
6.75% 08/15/07 ............ 200,000 189,472
Royal & Sun Alliance Insurance
Group PLC
8.95% 10/15/29 ............ 210,000 208,719(b)
Royal Bank of Scotland Group PLC
8.817% 03/31/49 ............ 185,000 192,936
9.118% 03/31/49 ............ 265,000 278,239
Sprint Capital Corp.
5.70% 11/15/03 ............ 570,000 545,119
St. George Funding Co.
8.485% 12/31/49 ............ 100,000 84,165(b,i)
Stop & Shop Cos. Inc.
9.75% 02/01/02 ............ 80,000 82,570
SunAmerica Inc.
5.60% 07/31/97 ............ 485,000 343,074
Suntrust Bank Inc.
6.00% 01/15/28 ............ 65,000 59,873
Tele-Communications Inc.
9.80% 02/01/12 ............ 165,000 188,133
Telefonica Europe BV
7.35% 09/15/05 ............ 380,000 381,486
Texas Utilities Co.
5.94% 10/15/01 ............ 175,000 173,017(i)
Textron Inc.
6.375% 07/15/04 ............ 165,000 160,477
The Walt Disney Co.
5.62% 12/01/08 ............ 150,000 135,647
Time Warner Inc.
7.57% 02/01/24 ............ 275,000 257,958
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 ............ 130,000 128,244(b)
Tosco Corp.
7.625% 05/15/06 ............ 105,000 106,577
TRW Inc.
6.625% 06/01/04 ............ 200,000 192,928
Turner Broadcasting Systems Inc.
8.375% 07/01/13 ............ 160,000 165,990
---------
See Notes to Schedules of Investments and Financial Statements.
66
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
TXU Eastern Funding Co.
6.45% 05/15/05 ............ $385,000 $364,214
Tyco International Group S.A.
6.875% 09/05/02 ............ 500,000 497,915
6.25% 06/15/03 ............ 105,000 102,281(i)
7.00% 06/15/28 ............ 135,000 118,608
Union Carbide Corp.
6.79% 06/01/25 ............ 370,000 365,253
Union Oil Co.
7.35% 06/15/09 ............... 200,000 198,314
Union Pacific Co. (Series A)
8.02% 07/02/12 ............ 176,709 178,215
United Air Lines Inc.
7.73% 07/01/10 ............ 100,000 100,877
9.56% 10/19/18 ............ 125,000 126,476
United Illuminating Co.
6.25% 12/15/02 ............ 50,000 48,773
US Airways Pass-Through Trust
8.36% 07/20/20 ............ 284,493 293,349
USA Networks Inc.
6.75% 11/15/05 ............ 165,000 160,472
Viacom Inc.
7.75% 06/01/05 ............ 250,000 256,275
Visteon Corp.
7.95% 08/01/05 ............ 65,000 65,624
Vodafone AirTouch PLC
7.625% 02/15/05 ............ 465,000 471,584(b)
Wal-Mart Stores Inc.
6.875% 08/10/09 ............ 175,000 173,542
Williams Cos. Inc.
6.125% 02/15/12 ............ 235,000 231,799
WorldCom Inc.
6.40% 08/15/05 ............ 165,000 160,669
8.875% 01/15/06 ............ 200,000 206,988
Yale University
7.375% 04/15/96 ............ 70,000 66,958
TOTAL CORPORATE NOTES
(COST $42,607,141) ........... 42,070,878
NON-AGENCY MORTGAGE BACKED SECURITIES -- 1.1%
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 ............ 714,000 682,049
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 ............ 698,000 658,476
First Union Lehman Brothers-
Bank of America
6.28% 06/18/07 ............ 40,968 40,129
GS Mortgage Securities Corp.
(Class A)
6.86% 07/13/30 ............ 207,000 205,485(g)
Nationslink Funding Corp.
6.001% 11/20/07 ............ 138,915 134,488
TOTAL NON-AGENCY MORTGAGE
BACKED SECURITIES
(COST $1,803,491) ............ 1,720,627
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 4.2%
Countrywide Home Loans
8.00% 07/25/30 ............ 351,000 358,717
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 ............ $ 237,000 $ 225,491
Headlands Mortgage Securities
Inc. (Class A)
6.65% 02/25/29 ............ 361,809 346,433
Holmes Financing PLC
6.834% 07/15/05 ............ 1,000,000 1,000,469(p)
6.884% 07/15/07 ............ 1,000,000 1,000,000(p)
LB Commercial Conduit
Mortgage Trust
7.105% 07/15/08 ............ 394,107 397,107
Lehman Large Loan
6.79% 06/12/04 ............ 121,751 121,718
Merrill Lynch Mortgage
Investors Inc.
6.50% 05/01/30 ............ 144,000 129,957
Morgan Stanley Capital I
6.86% 05/15/06 ............ 168,696 168,258(b)
6.52% 01/15/08 ............ 79,000 76,391
6.76% 11/15/08 ............ 941,639 934,283
7.11% 07/15/09 ............ 420,000 419,606
Norwest Asset Securities Corp.
6.25% 12/25/28 ............ 616,021 508,760
Norwest Integrated Structured
Assets Inc. (Class A)
7.50% 03/25/30 ............ 93,940 93,764
Residential Accredit Loans Inc.
7.75% 04/25/30 ............ 273,000 271,457
Residential Asset
Securitization Trust
1.078% 08/25/30 ............ 1,785,565 53,388(d,g)
Residential Funding Mortgage
Securities I (Class A)
6.50% 07/25/14 ............ 288,747 280,988
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 ............ 162,243 143,595(i)
7.00% 07/25/24 ............ 218,551 198,737(f,i)
Structured Asset Securities Corp.
1.463% 02/25/28 ............ 755,198 40,592(d,g)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $6,803,014) ............ 6,769,711
TOTAL BONDS AND NOTES
(COST $172,846,934) .......... 172,324,967
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
--------------------------------------------------------------------------------
Centaur Funding Corp.
(Series B), 9.08%
(COST $651,828) .............. 600 609,262(b)
TOTAL INVESTMENTS IN SECURITIES
(COST $173,498,762) .......... 172,934,229
---------
See Notes to Schedules of Investments and Financial Statements.
67
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 18.9%
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 3.9%
National Australia Funding Inc.
6.68% 10/02/00 ............$ 6,300,000 $ 6,298,831(p)
FEDERAL AGENCIES -- 11.4%
Federal Farm Credit Bank
6.25% 10/02/00 ............ 2,570,000 2,569,554(d)
Federal Home Loan Bank
6.25% 10/02/00 ............ 8,000,000 7,998,604(d)
Federal National Mortgage Assoc.
6.63% 10/02/00 ............ 8,000,000 7,998,596(d)
18,566,754
TIME DEPOSIT -- 3.6%
Bank of Montreal
6.687% 10/02/00 ............ 4,950,000 4,950,000(p)
State Street Bank and
Trust Co.
6.40% 10/02/00 ............ 808,670 808,670
5,758,670
TOTAL SHORT-TERM INVESTMENTS
(COST $30,624,255) ........... 30,624,255
OTHER ASSETS AND LIABILITIES,
NET (25.4)% .................. (41,214,047)
-------------
NET ASSETS-- 100% ................ $162,344,437
============
---------
See Notes to Schedules of Investments and Financial Statements.
68
<PAGE>
GE GOVERNMENT SECURITIES FUND
FIVE YEAR TREASURY NOTE YIELD HISTORY
10/1/99 -- 9/30/00
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
9/30/2000 5.904
9/15/2000 5.950
8/31/2000 6.035
8/15/2000 6.147
7/31/2000 6.216
7/15/2000 6.320
6/30/2000 6.259
6/15/2000 6.330
5/31/2000 6.579
5/15/2000 6.756
4/30/2000 6.543
4/15/2000 6.135
3/31/2000 6.334
3/15/2000 6.506
2/29/2000 6.610
2/15/2000 6.710
1/31/2000 6.716
1/15/2000 6.600
12/31/99 6.386
12/15/99 6.177
11/30/99 6.148
11/15/99 5.875
10/31/99 5.946
10/15/99 5.966
10/1/99 5.861
HIGH 6.76%
LOW 5.86%
AVG. 6.28%
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.
AN INVESTMENT IN THE GE GOVERNMENT SECURITIES FUND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. IT IS POSSIBLE TO LOSE MONEY
BY INVESTING IN THE FUND.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE U.S. GOVERNMENT PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/00
One Five Ten
Year Year Year
----- ----- -----
Number of
Funds in
peer group: 141 92 27
Peer group
average annual
total return: 5.77% 5.40% 6.71%
Lipper categories
in peer group: INTERMEDIATE U.S. GOVERNMENT,
INTERMEDIATE U.S. TREASURY
* SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Gov't Securities Fund GE Gov't Securities Fund w/load LB Gov't
9/8/93 10,000.00 9,575.00 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
12,721.27 12,178.44 14,296.67
9/00 13,194.50 12,631.47 14,918.57
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
---- ---- ---------
GE Government Securities 6.48% 5.75% 4.00%
GE Government Securities 1.97% 4.84% 3.36%
w/load
(maximum load-4.25%)
LB Government 7.18% 6.39% 5.82%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Gov't Securities Fund GE Gov't Securities Fund w/load LB Gov't
9/90 10,000.00 10,000.00 10,000.00
9/91 13,518.99 13,518.99 11,547.68
9/92 14,894.90 14,894.90 13,040.20
9/93 16,052.28 16,052.28 14,485.10
9/94 14,608.99 14,608.99 13,899.66
9/95 15,962.84 15,962.84 15,785.63
9/96 16,416.08 16,416.08 16,483.41
9/97 17,964.52 17,964.52 17,991.47
9/98 20,050.38 20,050.38 20,438.99
9/99 17,851.73 17,851.73 20,088.48
9/00 17,323.52 17,323.52 21,527.89
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE TEN
YEAR YEAR YEAR
----- ------ ---------
GE Government Securities 5.56% 5.03% 5.65%
GE Government Securities 2.59% 5.03% 5.65%
w/load
(maximum load) 3.00% 0.00% 0.00%
LB Government 7.18% 6.39% 7.96%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Gov't Securities Fund GE Gov't Securities Fund w/load LB Gov't
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,016.12 10,016.12 10,016.00
11/99 10,001.76 10,001.76 10,001.98
12/99 9,951.33 9,951.33 9,936.96
1/00 9,931.12 9,931.12 9,950.88
2/00 10,113.31 10,113.31 10,092.18
3/00 10,273.14 10,173.87 10,269.80
4/00 10,137.80 10,040.37 10,241.05
5/00 10,130.61 10,033.78 10,247.19
6/00 10,337.53 10,239.24 10,429.59
7/00 10,419.27 10,320.74 10,530.76
8/00 10,550.35 10,451.08 10,686.61
9/00 10,607.84 10,508.57 10,716.54
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Government Securities 6.08% 6.08%
GE Government Securities 5.09% 5.09%
w/load
(maximum load) 1.00% 1.00%
LB Government 7.18% 7.18%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
69
<PAGE>
GE GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
[GE GOVERNMENT SECURITIES FUND PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
ASSET BACKED & OTHER 3.0%
MORTGAGE BACKED 45.8%
FEDERAL AGENCIES 26.6%
U.S. TREASURIES 23.8%
CORPORATE NOTES 0.8%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 109.0%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 23.8%
U.S. Treasury Bonds
8.125% 08/15/19 ........... $ 6,980,000 $ 8,525,442(h)
6.125% 08/15/29 ........... 4,499,000 4,595,323(j)
6.25% 05/15/30 ........... 6,940,000 7,293,524(j)
20,414,289
U.S. Treasury Notes
6.75% 05/15/05 ........... 33,220,000 34,413,927(j)
3.875% 01/15/09 ........... 2,025,928 2,007,573(h,q)
36,421,500
TOTAL U.S. TREASURIES
(COST $56,572,423) .......... 56,835,789
FEDERAL AGENCIES -- 26.6%
Federal National Mortgage Assoc.
5.125% 02/13/04 ........... 3,405,000 3,258,142
7.00% 07/15/05 ........... 25,955,000 26,392,861(j)
7.125% 01/15/30 ........... 15,000,000 15,468,750
45,119,753
Financing Corp.
10.70% 10/06/17 ........... 13,165,000 18,167,700(h)
TOTAL FEDERAL AGENCIES
(COST $61,231,555) .......... 63,287,453
AGENCY MORTGAGE BACKED -- 32.1%
Federal Home Loan Mortgage Corp.
7.50% 02/01/07 ........... 46,660 46,996
7.50% 02/01/09 - 09/01/09 96,518 97,548
7.50% 06/01/10 - 12/01/10 3,406,343 3,441,560
7.50% 02/01/11 - 11/01/11 2,946,207 2,975,170
7.50% 01/01/12 - 07/01/12 2,887,876 2,915,299
9.00% 12/01/14 ........... 1,268,233 1,292,000
6.50% 08/01/25 - 12/01/25 5,636,595 5,447,729
6.50% 01/01/26 ........... 1,923,308 1,855,376
7.00% 12/01/26 ........... 13,114 12,901
6.50% 02/01/27 ........... 570,028 549,364
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
6.00% 02/01/29-08/01/29 .. $ 4,342,937 $ 4,059,301
7.00% 02/01/30 ........... 284,265 279,280
6.50% TBA ................ 1,247,000 1,197,906(c)
7.00% TBA ................ 2,250,000 2,204,303(c)
26,374,733
Federal National Mortgage Assoc.
9.00% 06/01/09 ........... 1,357,898 1,418,148
7.50% 12/01/09 ........... 1,482,727 1,495,908
7.50% 02/01/14 ........... 2,417,588 2,442,513
9.00% 04/01/16 ........... 1,272,631 1,308,748
9.00% 05/01/21-07/01/21 .. 837,872 866,669
7.50% 12/01/23 ........... 2,142,013 2,151,759
7.00% 12/01/29 ........... 535,577 524,528
7.00% 02/01/30 ........... 7,846,456 7,684,583
17,892,856
Government National Mortgage Assoc.
7.00% 03/15/12 ........... 3,062,445 3,073,929
9.00% 05/15/13 ........... 134,217 140,659
9.00% 07/15/16 ........... 1,505,530 1,582,207
8.50% 05/15/21 ........... 53,446 55,065
8.50% 10/15/22 ........... 7,246 7,463
8.50% 03/15/23 ........... 271,831 279,899
6.50% 05/15/23-12/15/23 .. 3,565,242 3,453,829
6.50% 01/15/24-04/15/24 .. 2,696,496 2,609,696
7.00% 08/15/25-10/15/25 .. 9,068,065 8,946,192
7.00% 04/15/26 ........... 1,739,011 1,714,559
7.50% 05/15/27 ........... 98,622 98,930
7.50% 01/15/28-10/15/28 .. 10,165,727 10,202,229
32,164,657
TOTAL AGENCY MORTGAGE BACKED
(COST $76,549,975) .......... 76,432,246
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 9.8%
Federal Home Loan Mortgage
Corp. STRIPS
7.50% 05/15/24 ........... 16,750,000 17,081,544(g)
Federal National Mortgage Assoc.
7.50% 01/19/39 ........... 5,788,915 5,807,005
Federal National Mortgage Assoc.
REMIC
5.00% 01/25/23 ........... 345,186 340,978
Federal National Mortgage Assoc.
STRIPS
7.50% 11/01/23 ........... 416,615 121,598(g)
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $23,217,547) .......... 23,351,125
ASSET BACKED -- 12.0%
Advanta Business Card
Master Trust
6.793% 01/20/06 ........... 2,000,000 2,000,000(p)
Arran Master Trust
6.80% 03/15/05 ........... 200,000 200,124(p)
Associates Credit Card
Master Trust
6.72% 09/18/06 ........... 4,000,000 4,000,000(p)
---------
See Notes to Schedules of Investments and Financial Statements.
70
<PAGE>
GE GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Compucredit Credit Card
Master Trust
6.841% 03/15/07 ........... $2,000,000 $ 2,000,000(b,p)
Discover Card Master Trust I
6.71% 02/16/05 ........... 700,000 700,000(p)
6.801% 03/15/05 ........... 2,000,000 2,003,120(p)
6.801% 11/15/07 ........... 2,000,000 2,001,562(p)
First Deposit Master Trust
6.791% 08/15/07 ........... 3,000,000 3,005,610(p)
Ford Credit Auto Owner Trust
6.65% 10/15/03 ........... 1,700,000 1,682,456
Green Tree Financial Corp.
8.41% 12/01/30 ........... 4,000,000 3,615,000
MBNA Master Credit Card Trust II
6.701% 11/15/05 ........... 2,000,000 2,000,620(p)
6.781% 07/15/07 ........... 500,000 500,625(p)
Metris Master Trust
6.833% 01/22/07 ........... 2,000,000 2,000,000(p)
Providian Gateway Master Trust
6.84% 03/15/07 ........... 2,000,000 2,000,000(p)
Superior Wholesale Inventory
Financing Trust
6.905% 04/15/05 ........... 1,000,000 1,001,170(p)
TOTAL ASSET BACKED
(COST $29,104,384) .......... 28,710,287
CORPORATE NOTES -- 0.8%
Daimlerchrysler NA Holding
6.78% 09/16/02
(COST $2,000,000) ........... 2,000,000 2,000,000(p)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.9%
Bear Stearns Commercial
Mortgage Securities
7.11% 09/15/09 ........... 1,135,000 1,137,359
Holmes Financing PLC
6.834% 07/15/05 ........... 2,000,000 2,000,938(p)
J.P. Morgan Commercial
Mortgage Finance Corp.
7.11% 08/15/32 ........... 204,000 203,999
LB Commercial Conduit
Mortgage Trust
7.105% 07/15/08 ........... 722,854 728,357
Morgan Stanley Capital I
6.76% 11/15/08 ........... 214,694 213,016
Norwest Asset Securities Corp.
7.25% 12/25/27 ........... 3,293,652 3,140,366
6.25% 12/25/28 ........... 2,356,441 1,946,137
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $9,682,514) ........... 9,370,172
TOTAL INVESTMENTS IN SECURITIES
(COST $258,358,398) ......... 259,987,072
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 23.7%
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 10.5%
San Paolo U.S. Finance Co.
6.70% 10/02/00 ........... $11,920,000 $ 11,917,781(p)
UBS Finance Inc.
6.65% 10/02/00 ........... 13,000,000 12,997,599(p)
24,915,380
FEDERAL AGENCIES -- 2.3%
Federal National Mortgage Assoc.
6.63% 10/02/00 ........... 5,500,000 5,499,035(d)
TIME DEPOSIT -- 10.9%
Bank of Montreal
6.687% 10/02/00 ........... 13,000,000 13,000,000(p)
Banca Intesa Grand Cayman
6.687% 10/02/00 ........... 13,000,000 13,000,000(p)
26,000,000
TOTAL SHORT-TERM INVESTMENTS
(COST $56,414,415) .......... 56,414,415
OTHER ASSETS AND LIABILITIES,
NET (32.7)% ................. (77,996,778)
------------
NET ASSETS-- 100% .............. $238,404,709
============
---------
See Notes to Schedules of Investments and Financial Statements.
71
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
TWO YEAR TREASURY NOTE YIELD HISTORY
10/1/99 -- 9/30/00
[LINE GRAPH OMITTED]
9/30/2000 6.299
6.257
8/31/2000 6.380
6.467
7/31/2000 6.465
6.492
6/30/2000 6.506
6.553
5/31/2000 6.802
6.902
4/30/2000 6.690
6.296
3/31/2000 6.495
6.499
2/29/2000 6.518
6.611
1/31/2000 6.617
6.426
12/31/99 6.224
6.077
11/30/99 6.022
5.781
10/31/99 5.805
5.799
10/1/99 5.696
[PLOT POINTS FOLLOWS:
HIGH 6.90%
LOW 5.70%
AVG. 6.35%
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.
AN INVESTMENT IN THE GE SHORT-TERM GOVERNMENT FUND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. IT IS POSSIBLE TO LOSE MONEY
BY INVESTING IN THE FUND.
* LIPPER PERFORMANCE COMPARISON
SHORT-TERM U.S. GOVERNMENT BOND PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 9/30/00
One Five
Year Year
-------- --------
Number of
Funds in
peer group: 189 137
Peer group
average annual
total return: 5.49% 5.18%
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
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
Class A
GE Short Term Government GE Short Term Government w/load LB 1-3 Yr.
3/2/94 10,000.00 9,750.00 10,000.00
9,942.80 9,692.40 9,949.40
9/94 10,052.77 9,799.56 10,049.50
10,359.10 10,098.28 10,383.73
9/95 10,831.26 10,558.48 10,872.91
11,102.52 10,822.98 11,182.30
9/96 11,370.47 11,084.22 11,489.66
11,667.42 11,373.69 11,782.81
9/97 12,117.11 11,812.06 12,281.23
12,455.99 12,142.41 12,666.56
9/98 13,009.00 12,681.07 13,254.70
13,162.85 12,831.37 13,438.07
9/99 13,336.61 13,000.76 13,677.51
13,546.32 13,205.18 13,926.68
9/00 14,092.92 13,738.02 14,476.95
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ---------
GE Short-Term Government 5.67% 5.41% 5.35%
GE Short-Term Government w/load 3.03% 4.87% 4.94%
(maximum load-2.5%)
LB 1-3 Yr. 5.84% 5.89% 5.78%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Short Term Government GE Short Term Government w/load LB 1-3 Yr.
3/2/94 10,000.00 10,000.00 10,000.00
9,939.30 9,939.30 9,949.40
9/94 10,019.58 10,019.58 10,049.50
10,285.38 10,285.38 10,383.73
9/95 10,722.29 10,722.29 10,872.91
10,958.27 10,958.27 11,182.30
9/96 11,189.26 11,189.26 11,489.66
11,447.24 11,447.24 11,782.81
9/97 11,842.93 11,842.93 12,281.23
12,148.34 12,148.34 12,666.56
9/98 12,652.00 12,652.00 13,254.70
12,763.36 12,763.36 13,438.07
9/99 12,893.16 12,893.16 13,677.51
13,056.96 13,056.96 13,926.68
9/00 13,531.98 13,531.98 14,476.95
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ---------
GE Short-Term Government 4.95% 4.76% 4.70%
GE Short-Term Government w/load 1.96% 4.76% 4.70%
(maximum load) 3.00% 0.00% 0.00%
LB 1-3 Yr. 5.84% 5.89% 5.78%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Short Term Government GE Short Term Government w/load LB 1-3 Yr.
9/30/99 10,000.00 10,000.00 10,000.00
10/99 10,017.14 10,017.14 10,027.00
11/99 10,035.06 10,035.06 10,046.05
12/99 10,037.72 10,037.72 10,055.09
1/00 10,031.30 10,031.30 10,053.08
2/00 10,086.24 10,086.24 10,121.44
3/00 10,119.37 10,020.48 10,182.17
4/00 10,146.59 10,047.87 10,207.63
5/00 10,183.66 10,085.03 10,245.39
6/00 10,274.32 10,175.26 10,357.07
7/00 10,329.97 10,230.83 10,423.36
8/00 10,404.13 10,304.73 10,502.57
9/00 10,479.77 10,380.11 10,584.49
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE Short-Term Government 4.80% 4.80%
GE Short-Term Government w/load 3.80% 3.80%
(maximum load) 1.00% 1.00%
LB 1-3 Yr. 5.84% 5.84%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Short Term Government LB 1-3 Yr.
3/2/94 10,000.00 10,000.00
9,964.81 9,949.40
9/94 10,068.86 10,049.50
10,379.78 10,383.73
9/95 10,866.25 10,872.91
11,152.31 11,182.30
9/96 11,435.67 11,489.66
11,748.92 11,782.81
9/97 12,217.07 12,281.23
12,574.67 12,666.56
9/98 13,151.00 13,254.70
13,335.26 13,438.07
9/99 13,528.29 13,677.51
13,758.19 13,926.68
9/00 14,319.06 14,476.95
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ---- -----------
GE Short-Term Government 5.85% 5.67% 5.61%
LB 1-3 Yr. 5.84% 5.89% 5.78%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
72
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE SHORT-TERM GOVERNMENT FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
FEDERAL AGENCIES 43.2%
MORTGAGE BACKED 32.5%
CORPORATE NOTES 20.1%
CASH & OTHER 4.2%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 112.2%
--------------------------------------------------------------------------------
FEDERAL AGENCIES -- 43.2%
Federal Home Loan Bank
6.00% 11/15/01 ........... $3,075,000 $ 3,059,133
5.25% 04/25/02 ........... 2,360,000 2,315,750
6.75% 05/01/02 ........... 5,240,000 5,256,349(j)
10,631,232
Federal Home Loan Mortgage Corp.
5.50% 05/15/02 ........... 4,230,000 4,163,251
6.25% 10/15/02 ........... 1,640,000 1,631,800
7.375% 05/15/03 ........... 1,635,000 1,667,438
7,462,489
Federal National Mortgage Assoc.
6.625% 01/15/02 ........... 12,480,000 12,495,600(j)
5.75% 04/15/03 ........... 430,000 422,140
12,917,740
TOTAL FEDERAL AGENCIES
(COST $30,873,952) .......... 31,011,461
AGENCY MORTGAGE BACKED -- 20.2%
Federal Home Loan Mortgage Corp.
8.00% 08/01/03 ........... 55,857 55,904
6.00% 12/01/08 ........... 21,254 20,752(h)
76,656
Federal National Mortgage Assoc.
9.00% 08/01/10 ........... 125,810 130,500
9.00% 03/01/11 ........... 526,310 543,904
674,404
Government National Mortgage Assoc.
7.50% 02/15/09 ........... 5,388,671 5,473,758
9.00% 08/15/09 - 12/15/09 5,008,148 5,242,847
9.50% 12/15/09 ........... 376,834 391,776
7.50% 12/15/12 ........... 2,639,158 2,682,044
13,790,425
TOTAL AGENCY MORTGAGE BACKED
(COST $14,478,596) .......... 14,541,485
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 10.4%
Federal Home Loan
Mortgage Corp.
8.00% 10/15/10 ........... $1,336,335 $ 1,363,388
6.25% 09/15/18 ........... 26,407 26,308
1,389,696
Federal Home Loan Mortgage
Corp. REMIC
543.50% 09/15/05 ......... 52 286(g)
1002.00% 07/15/06 ......... 111 1,195(g)
1,481
Federal National Mortgage Assoc.
6.59% 09/01/02 ........... 195,905 194,558
7.00% 06/18/13 ........... 5,765,655 5,758,448
5,953,006
Federal National Mortgage
Assoc. REMIC
6.163% 05/25/14 ........... 142,318 139,694
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $7,442,773) ........... 7,483,877
ASSET BACKED -- 16.4%
Arran Master Trust
6.80% 03/15/05 ........... 900,000 900,558(p)
AT&T Universal Card Master Trust
5.95% 10/17/02 ........... 260,000 259,917
California Infrastructure
6.16% 06/25/03 ........... 157,158 156,463
Capital Asset Research Funding L.P.
6.40% 12/15/04 ........... 28,717 28,376
Carco Auto Loan Master Trust
5.65% 03/15/03 ........... 266,000 264,726
Chemical Master Credit
Card Trust I
5.55% 09/15/03 ........... 350,000 348,687
Cit RV Trust
5.78% 07/15/08 ........... 260,000 256,384
Citibank Credit Card
Master Trust I
5.85% 04/10/03 ........... 50,000 49,719
Discover Card Master Trust I
5.80% 09/16/03 ........... 200,000 199,000
5.75% 10/16/03 ........... 311,000 308,667
5.30% 08/15/04 ........... 311,000 304,973
5.90% 10/15/04 ........... 266,000 262,343
6.801% 11/15/07 ........... 700,000 700,547(p)
First Deposit Master Trust
Series 1996-1
6.791% 08/15/07 ........... 2,000,000 2,003,740(p)
Ford Credit Auto Owner Trust
7.03% 11/15/03 ........... 620,000 623,197
7.09% 11/17/03 ........... 875,000 879,917
Green Tree Financial Corp.
Series 1993-1
6.90% 04/15/18 ........... 99,753 98,817
Lehman FHA Title I Loan Trust
7.30% 05/25/17 ........... 15,350 15,230
MBNA Master Credit Card Trust II
6.701% 11/15/05 ........... 1,500,000 1,500,465(p)
6.781% 07/15/07 ........... 1,500,000 1,501,875(p)
----------
See Notes to Schedules of Investments and Financial Statements.
73
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Metris Master Trust
6.833% 01/22/07 ........... $1,000,000 $ 1,000,000(p)
Premier Auto Trust
5.77% 01/06/02 ........... 60,483 60,426
6.27% 04/08/03 ........... 23,000 22,905
Provident Bank Home Equity
Loan Trust
6.72% 01/25/13 ........... 20,762 20,541
TOTAL ASSET BACKED
(COST $11,784,336) .......... 11,767,473
CORPORATE NOTES -- 20.1%
AIG SunAmerica GBL Fin I
7.40% 05/05/03 ........... 720,000 730,999(b)
Bank One Corp.
6.896% 01/07/02 ........... 3,300,000 3,299,670(p)
6.40% 08/01/02 ........... 100,000 99,329
Carnival Corp.
5.65% 10/15/00 ........... 125,000 124,871
Citigroup Inc.
7.45% 06/06/02 ........... 800,000 809,320
DaimlerChrysler NA Holding Corp.
6.78% 09/16/02 ........... 1,000,000 1,000,000(p)
Deutsche Telekom AG
7.75% 06/15/05 ........... 500,000 511,845
Dominion Resources Inc.
7.60% 07/15/03 ........... 450,000 454,441
Federated Department Stores Inc.
6.125% 09/01/01 ........... 120,000 118,468(i)
Fleet Credit Card LLC
6.45% 10/30/00 ........... 250,000 249,862
Ford Motor Credit Co.
7.50% 06/15/03 ........... 1,000,000 1,009,910
General Motors Acceptance Corp.
5.75% 11/10/03 ........... 705,000 680,374
Goldman Sachs Group L.P.
7.875% 01/15/03 ........... 695,000 704,925(b)
International Paper Co.
8.00% 07/08/03 ........... 175,000 178,507(b)
Merrill Lynch & Co.
5.71% 01/15/02 ........... 125,000 123,143
MidAmerican Energy Co.
7.375% 08/01/02 ........... 475,000 476,251
Morgan Stanley, Dean Witter & Co.
7.125% 01/15/03 ........... 150,000 150,702
Occidental Petroleum Corp.
6.75% 11/15/02 ........... 475,000 470,734
Pharmacia Corp.
5.375% 12/01/01 ........... 250,000 244,476
Qwest Corp.
7.625% 06/09/03 ........... 700,000 708,534(b)
Raytheon Co. (Class B)
7.90% 03/01/03 ........... 400,000 403,220(b)
Sprint Capital Corp.
5.70% 11/15/03 ........... 400,000 382,540
Tyco International Group S.A.
6.875% 09/05/02 ........... 100,000 99,583
Tyco International Ltd.
6.50% 11/01/01 ........... 275,000 272,811
Union Oil Co.
6.375% 02/01/04 ........... 250,000 243,923
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
WorldCom Inc.
6.125% 08/15/01 ........... $ 50,000 $ 49,632
7.875% 05/15/03 ........... 855,000 875,460
TOTAL CORPORATE NOTES
(COST $14,394,968) .......... 14,473,530
NON-AGENCY MORTGAGE BACKED SECURITIES -- 0.1%
GS Mortgage Securities Corp.
(Class A)
6.94% 07/13/30
(COST $40,872) .............. 40,268 40,098(g)
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.8%
Asset Securitization Corp.
6.50% 02/14/41 ........... 315,304 313,465
Holmes Financing PLC
6.834% 07/15/05 ........... 1,000,000 1,000,469(p)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,317,838) ........... 1,313,934
TOTAL INVESTMENTS IN SECURITIES
(COST $80,333,335) .......... 80,631,858
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 19.0%
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 10.5%
National Australia Funding Inc.
6.68% 10/02/00 ........... 5,200,000 5,199,035(p)
San Paolo U.S. Finance Co.
6.70% 10/02/00 ........... 2,320,000 2,319,568(p)
7,518,603
FEDERAL AGENCIES -- 4.3%
Federal Home Loan Bank
6.25% 10/02/00 ........... 3,090,000 3,089,461(d)
TIME DEPOSIT -- 4.2%
Bank of Montreal
6.687% 10/02/00 ........... 3,000,000 3,000,000(p)
TOTAL SHORT-TERM INVESTMENTS
(COST $13,608,064) .......... 13,608,064
OTHER ASSETS AND LIABILITIES,
NET (31.2)% ................. (22,398,128)
------------
NET ASSETS-- 100% .............. $71,841,794
============
-------------
See Notes to Schedules of Investments and Financial Statements.
74
<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 PERFORM COMPARED TO ITS BENCHMARK AND LIPPER
PEER GROUP FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Tax-Exempt Fund had a return of 5.12% for Class A, 4.43% for Class B,
4.43% for Class C and 5.47% for Class Y for the one-year period ended
September 30, 2000. The Lehman Brothers 10-Year Municipal Index returned
6.39% and the Lipper Peer average return was 4.70% for the same period.
Q. WHY DID THE FUND UNDERPERFORM ITS BENCHMARK?
A. During the period, we initially shortened the Fund's average maturity and
duration, anticipating modestly higher municipal yields that would be capped
by slower economic growth. In fact, economic activity sped up, and municipal
yields moved even higher than we had expected. Year-end tax swapping
programs pressured secondary market prices lower, with lower coupons
particularly hard hit. As rates rose and the municipal yield curve
steepened, the portfolio's longer-intermediate maturities hurt our
performance relative to the benchmark's 10 year "bullet" structure. In the
new calendar year, the market pressure from year-end 1999 tax strategies
dissipated. Amid increasing signs that the Federal Reserve may have
successfully orchestrated a soft landing for the U.S. economy, and with
longer tax-exempt yields still above 90% of Treasury yields for a comparable
maturity, some investors extended maturity. As a result, yields on
intermediate and longer maturities fell 0.25%-0.30% in year-to-date 2000,
for a total decline of 0.10% in the twelve-month period. Reflecting these
lower rates, our intermediate and longer holdings benefited the portfolio
with strong price performance. At the same time, our emphasis on
call-protected high coupon structures benefited performance, with superior
tax-free income relative to the benchmark.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. Early in the fiscal year, we anticipated that the robust U.S. economy and
high consumer and business confidence would lead the Federal Reserve to
raise rates, even as inflation remained tame. We expected that, as this
environment unfolded, municipal yields were likely to rise. To protect
against the anticipated price erosion of a rise in yields, we maintained a
neutral duration relative to the Benchmark. At the same time, to generate
superior tax-exempt income, we maintained an emphasis on call-protected
premium coupons and on a maturity structure of longer-intermediate
maturities. We managed our sales transactions so as to incur no 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 years), which we believe best balances opportunity and risk. These
maturities lock in the higher tax-free yields of the upward sloping yield
curve, and should 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 avoid purchasing securities that do not
pass our credit screens, that are subject to Alternative Minimum Tax, or
that are derivative securities.
Effective October 1, 2000, GEAM, as Investment Adviser to the Fund, will assume
day-to-day portfolio management responsibility from Brown Brothers, the current
Sub-Adviser to the Fund.
75
<PAGE>
GE TAX-EXEMPT FUND
--------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings** Market Value
--------------------------------------------------------------------------------
Aaa 84.08%
Aa to A 12.06%
Below A 0.00%
NR/Other 3.86%
--------------------------------------------------------------------------------
100.00%
** MOODY'S INVESTORS SERVICES, INC. AND
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 9/30/00
One Five
Year Year
------- --------
Number of
Funds in
peer group: 305 229
Peer group
average annual
total return: 4.70% 4.44%
Lipper categories
in peer group: INTERMEDIATE MUNICIPAL DEBT,
INCLUDING SINGLE STATE FUNDS
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Tax-Exempt GE Tax-Exempt w/load LB GO Muni Bond LBMI
9/8/93 10,000.00 9,575.00 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 11,087.73 11,110.74
11,110.74 10,638.54 11,372.75 11,383.93
9/96 11,508.82 11,019.69 11,626.08 11,648.17
11,833.68 11,330.75 11,966.22 11,976.14
9/97 12,403.79 11,876.63 12,753.07 12,754.89
12,705.81 12,165.81 13,221.73 13,219.66
9/98 13,185.00 12,626.00 13,903.99 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
13,115.78 12,558.83 14,122.53 14,116.62
9/00 13,604.49 13,026.78 14,699.49 14,698.35
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------- ------ ---------
GE Tax-Exempt 5.12% 4.70% 4.45%
GE Tax-Exempt w/load 0.69% 3.79% 3.81%
(maximum load-4.25%)
LBMI 6.39% 5.75% 5.60%
LB GO Muni Bond 6.29% 5.80% 5.60%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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 11,087.73 11,110.74
11,045.21 11,045.21 11,372.75 11,383.93
9/96 11,450.52 11,450.52 11,626.08 11,648.17
11,763.04 11,763.04 11,966.22 11,976.14
9/97 12,305.35 12,305.35 12,753.07 12,754.89
12,573.35 12,573.35 13,221.73 13,219.66
9/98 13,000.00 13,000.00 13,903.99 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
12,817.24 12,817.24 14,122.53 14,116.62
9/00 13,257.53 13,257.53 14,699.49 14,698.35
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ----- ----------
GE Tax-Exempt 4.43% 4.26% 4.07%
GE Tax-Exempt w/load 1.43% 4.26% 4.07%
(maximum load) 3.00% 0.00% 0.00%
LBMI 6.39% 5.75% 5.60%
LB GO Muni Bond 6.29% 5.80% 5.60%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Tax-Exempt GE Tax-Exempt w/load LB GO Muni Bond LBMI
9/30/99 10,000.00 10,000.00 10,000.00 10,000.00
10/99 9,907.48 9,907.48 9,930.00 9,932.00
11/99 9,986.45 9,986.45 10,038.24 10,038.27
12/99 9,938.36 9,938.36 9,986.04 9,987.08
1/00 9,872.38 9,872.38 9,945.10 9,933.65
2/00 9,953.00 9,953.00 10,023.66 10,013.12
3/00 10,096.23 9,997.31 10,218.12 10,213.38
4/00 10,048.27 9,950.16 10,167.03 10,165.37
5/00 9,999.85 9,902.54 10,107.04 10,093.20
6/00 10,237.90 10,138.62 10,381.96 10,374.80
7/00 10,346.49 10,246.49 10,525.23 10,525.24
8/00 10,492.23 10,392.23 10,688.37 10,689.43
9/00 10,443.42 10,343.42 10,639.20 10,630.64
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ --------
GE Tax-Exempt 4.43% 4.43%
GE Tax-Exempt w/load 3.43 3.43%
(maximum load) 1.00% 1.00%
LBMI 6.39% 6.39%
LB GO Muni Bond 6.29% 6.29%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
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
12/99 10,555.09 10,828.46 10,816.24
3/00 10,747.06 11,073.83 11,067.61
6/00 10,923.38 11,248.85 11,245.07
9/00 11,175.86 11,526.24 11,523.70
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ --------
GE Tax-Exempt 5.47% 3.76%
LBMI 6.39% 4.82%
LB GO Muni Bond 6.29% 4.83%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
76
<PAGE>
GE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE TAX-EXEMPT FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
WATER & SEWER 26.0%
UTILITIES 19.2%
TRANSPORTATION 18.4%
HOSPITAL 15.0%
GENERAL OBLIGATION 7.0%
HOUSING 5.4%
CASH & OTHER 4.6%
EDUCATION 4.4%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 98.2%
--------------------------------------------------------------------------------
ARKANSAS -- 1.6%
Arkansas Housing Development
Agency Rev. - Housing
8.375% 07/01/11 ............. $315,000 $ 402,000(m)
CALIFORNIA -- 6.0%
Sacramento California Utility
Rev. - Electric Utility
9.00% 04/01/13 ............. 850,000 1,103,079(m)
6.80% 10/01/19 ............. 55,000 63,053
San Diego California Hospital
Rev. - Health
8.875% 02/01/11 ............. 275,000 328,633(m)
1,494,765
COLORADO -- 2.6%
Colorado Springs Colorado
Utility Rev. - Electric Utility
8.50% 11/15/11 ............. 100,000 123,030(m)
Denver Colorado City & County,
Housing Finance
Authority - Housing
7.00% 08/01/10 ............. 490,000 538,956(m)
661,986
CONNECTICUT -- 7.1%
Connecticut State Health &
Educational Fac. Auth.
Rev. - Health
5.50% 07/01/12 ............. 500,000 513,440(o)
7.00% 07/01/12 ............. 765,000 850,030(m)
Connecticut State Housing
Finance Auth. Rev. - Housing
6.05% 05/15/14 ............. 410,000 423,222
1,786,692
FLORIDA -- 3.4%
Florida State Broward County G.O.
10.00% 07/01/14 ............. 235,000 332,943
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Gainesville Florida Utilities
Systems Rev. - Electric Utility
8.125% 10/01/14 .............$ 175,000 $ 205,443(m)
Jacksonville Florida Health
Fac. Auth. Hosp. Rev. - Health
11.50% 10/01/12 ............. 200,000 313,486
851,872
GEORGIA -- 3.8%
Clarke County Georgia Hospital
Auth. Rev. - Health
9.875% 01/01/06 ............. 80,000 94,234(m,o)
Columbus Georgia Medical
Center Hospital Auth.
Rev. - Health
7.75% 07/01/10 ............. 305,000 350,064(m)
Metropolitan Rapid
Transportation Auth. -
Transportation
7.00% 07/01/11 ............. 435,000 510,025(m)
954,323
IDAHO -- 3.3%
Idaho Falls Idaho Electric
Rev. - Electric Utility
10.375% 04/01/13 ............. 640,000 838,445(n)
ILLINOIS -- 0.2%
Chicago Illinois Motor Fuel
Tax Rev. - Sales Tax
6.50% 01/01/16 ............. 20,000 20,105(n,o)
Chicago Illinois Wastewater
Treatment Rev. - Water & Sewer
6.30% 01/01/12 ............. 20,000 21,104(n,o)
41,209
INDIANA -- 4.0%
Indiana State Toll Road
Commission Rev. - Transportation
9.00% 01/01/15 ............. 580,000 786,318(m)
Purdue University Rev. - Education
5.25% 07/01/11 ............. 200,000 203,688
990,006
IOWA -- 3.9%
Muscatine Iowa Electric Rev. -
Electric Utility
9.70% 01/01/13 ............. 755,000 988,401(m)
MASSACHUSETTS -- 11.7%
Massachusetts State G.O.
6.75% 08/01/09 ............. 90,000 93,389(o)
5.25% 08/01/15 ............. 500,000 493,625
Massachusetts State Port
Auth. Rev. - Trans.
13.00% 07/01/13 ............. 1,035,000 1,601,197(m)
5.50% 07/01/17 ............. 750,000 747,090
2,935,301
MICHIGAN -- 2.9%
Michigan State Hospital Finance
Auth. Rev. - Health
9.00% 05/01/08 ............. 610,000 735,605(m)
----------
See Notes to Schedules of Investments and Financial Statements.
77
<PAGE>
GE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
MINNESOTA -- 0.4%
Western Minnesota Municipal
Power Agy. Minn. - Electric Utility
6.625% 01/01/16 .............$ 100,000 $ 111,570
MISSISSIPPI -- 1.7%
Mississippi State G.O.
6.20% 02/01/08 ............. 390,000 421,032(m)
NEW JERSEY -- 4.8%
Atlantic City New Jersey
Improvement Auth.
Rev. - Lease Rev.
7.40% 03/01/12 ............. 325,000 379,977(o)
Atlantic County New Jersey
Improvement Auth. - Lease Rev.
7.40% 07/01/16 ............. 175,000 207,993(m,o)
Delaware River Port Authority
6.50% 01/15/11 ............. 310,000 332,928(m)
New Jersey State Tpke. Auth.
Rev. - Trans.
6.50% 01/01/16 ............. 250,000 280,672(o)
1,201,570
NEW YORK -- 7.6%
Erie County New York Water
Auth. Rev. - Water & Sewer
6.00% 12/01/08 ............. 400,000 423,832(m,o)
New York State Dormitory Auth.
Rev. - Education
7.50% 05/15/11 ............. 165,000 191,176
5.20% 02/15/16 ............. 200,000 190,878
7.375% 07/01/16 ............. 770,000 903,102(m)
New York State Energy Research &
Development Auth. Pollution
Control Rev. - Electric Utility
5.40% 10/02/00 ............. 200,000 200,000
1,908,988
NORTH CAROLINA -- 5.9%
North Carolina Municipal Power
Rev. - Electric Utility
10.50% 01/01/10 ............. 1,175,000 1,490,934(m)
OHIO -- 1.9%
Columbus Ohio G.O.
6.00% 07/01/08 ............. 50,000 52,230(n)
Ohio State Water Development
Auth. Rev. - Water & Sewer
7.00% 12/01/09 ............. 385,000 428,705(m,o)
480,935
PENNSYLVANIA -- 9.8%
Allegheny County Pennsylvania
Hospital Development Rev. - Health
7.375% 07/01/12 ............. 495,000 568,389(m)
Philadelphia Pennsylvania Gas
Works Rev. - Utility
7.00% 05/15/20 ............. 415,000 477,773
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Philadelphia Pennsylvania
Hospitals & Higher Education
Facilities Auth. Rev. - Health
6.00% 06/01/23 .............$ 165,000 $ 166,889
Philadelphia Pennsylvania Water &
Wastewater Rev. - Water & Sewer
6.25% 08/01/12 ............. 250,000 275,883(o)
Pittsburgh Pennsylvania Water &
Sewer Rev. - Water & Sewer
7.25% 09/01/14 ............. 830,000 963,339(m)
2,452,273
TEXAS -- 9.3%
Houston Texas Sewer Systems
Rev. - Water & Sewer
9.375% 10/01/13 ............. 1,665,000 2,222,375(m,o)
Lone Star Texas Airport
Improvement Auth. Rev. -
Transportation
5.50% 12/01/14 ............. 100,000 100,000
2,322,375
WASHINGTON -- 0.1%
Snohomish County Washington
Public Utility Rev. - Electric Utility
6.375% 01/01/05 ............. 20,000 21,297(m)
WISCONSIN -- 2.4%
Wisconsin State Transportation
Rev. - Trans.
6.60% 07/01/11 ............. 525,000 597,224
WYOMING -- 0.4%
Lincoln County Wyoming Pollution
Control Rev. - Energy
5.40% 11/01/14 ............. 100,000 100,000
PUERTO RICO -- 3.4%
Puerto Rico Commonwealth
Aqueduct & Sewer Rev. -
Water & Sewer
10.25% 07/01/09 ............. 675,000 840,631(m)
TOTAL INVESTMENTS IN SECURITIES
(COST $24,757,718) ............ 24,629,434
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.0%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $1,000) ................. 1,000 1,000
OTHER ASSETS AND LIABILITIES,
NET 1.8% ...................... 439,999
-----------
NET ASSETS-- 100% ................ $25,070,433
===========
-----------
See Notes to Schedules of Investments and Financial Statements.
78
<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 $548 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 19 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 20 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 HOLDER OF A CHARTERED FINANCIAL ANALYST
DESIGNATION 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 14 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 HOLDER OF A CHARTERED FINANCIAL ANALYST DESIGNATION 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 PERFORM COMPARED TO ITS BENCHMARK FOR THE
ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE High Yield Fund had a return of negative 0.52% for Class A shares,
negative 1.25% for Class B Shares, negative 1.27% for Class C Shares and
negative 0.26% for Class Y Shares for the one-year-period ended September
30, 2000. The CS First Boston Global High Yield Index returned 1.92% for the
same period. The Lipper High Yield Taxable Peer Group returned negative
0.02% for the same period.
Q. WHAT CONTRIBUTED TO THE PERFORMANCE OF THE FUND?
A. Performance was below the benchmark, primarily due to our overweight
allocation to the telecom sector, along with some poor security selection
within that sector. Also detracting from results was our underweight
position in the energy sector, which had a very good year due to very high
oil prices. On the positive side, our higher quality portfolio in relation
to the benchmark enhanced returns, as BB rated securities outperformed lower
rated bonds. Also, our overweight allocation to the gaming sector, and good
security selection within the healthcare and homebuilding sectors, helped
results.
Q. WHICH SECTOR HAVE YOU LIKED THE MOST?
A. We liked the telecom sector, due to its high growth potential and high
equity valuations. This strategy hurt us as the NASDAQ, and telecom stocks
in general, had a major sell-off over the past six months, which led to a
widening of spreads.We believe we have selected some very good companies
within this sector and their valuations will improve over the coming year.
Q. WHICH INVESTMENTS STAND OUT?
A. On the positive side, Intermedia's bonds went up dramatically when they
agreed to be acquired by Worldcom. This should lead to a several notch
ratings upgrade for these bonds in the future. Also, we tendered the bonds
of Chancellor Media at a very favorable price after the company was acquired
by Clear Channel. On the negative side, RSL Communications performed very
poorly, as investors became concerned about the company's heavy debt burden
and its ability to complete scheduled asset sales at desirable prices.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. We continue to find good value in the telecommunications sector. This sector
widened dramatically over the past six months and we feel it should rebound
over the coming year. To a smaller extent, we remain overweight in the
healthcare, gaming, and cable sectors. Our portfolio currently maintains an
average credit quality of BB-, which is higher than that of the benchmark.
We are optimistic about better returns over the coming year due to the very
wide spreads and high yields available in the current market.
[PHOTO OMITTED]
79
<PAGE>
GE HIGH YIELD FUND
--------------------------------------------------------------------------------
QUALITY RATINGS
AT SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
Moody's/ Percent of
S&P Rating** Market Value
--------------------------------------------------------------------------------
AAA 4.46%
BBB 6.08%
BB 28.59%
B 53.28%
CCC/CC 5.03%
NR 2.56%
--------------------------------------------------------------------------------
100.00%
** MOODY'S INVESTORS SERVICES, INC. AND
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).
* LIPPER PERFORMANCE COMPARISON
HIGH YIELD TAXABLE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR
THE PERIODS ENDED 9/30/00
One Year
----------
Number of
Funds in
peer group: 352
Peer group
average annual
total return: -0.02%
Lipper categories
in peer group: HIGH YIELD TAXABLE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE High Yield Fund GE High Yield Fund w/load Salomon High Yield CS First Boston High Yield
<S> <C> <C> <C> <C>
12/31/98 10,000.00 9,575.00 10,000.00 10,000.00
10,058.16 9,630.69 10,149.80 10,094.00
10,012.08 9,586.57 10,064.54 10,072.80
3/99 10,188.53 9,755.52 10,149.59 10,164.47
10,371.84 9,931.04 10,362.12 10,389.10
10,087.45 9,658.74 10,199.43 10,276.90
6/99 10,100.18 9,670.93 10,177.00 10,282.04
10,097.44 9,668.30 10,199.38 10,287.18
10,039.37 9,612.70 10,078.01 10,195.62
9/99 10,053.27 9,629.57 10,001.42 10,117.11
10,121.73 9,695.15 9,933.41 10,067.54
10,316.40 9,881.61 10,089.36 10,204.46
12/99 10,435.42 9,995.61 10,174.11 10,327.93
10,353.71 9,917.34 10,089.67 10,286.62
10,440.10 10,000.10 10,113.88 10,350.40
3/00 10,292.04 9,858.27 9,908.57 10,195.14
10,276.14 9,843.05 9,948.21 10,179.85
9,997.37 9,576.02 9,809.84 10,016.97
6/00 10,249.84 9,817.85 10,030.12 10,241.35
10,176.49 9,747.60 10,139.03 10,337.62
10,210.57 9,780.24 10,214.05 10,406.88
9/00 10,001.47 9,579.95 10,104.76 10,311.11
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE High Yield Fund -0.52% 0.01%
GE High Yield Fund w/load -4.71% -2.42%
(maximum load-4.25%)
CS First Boston High Yield 1.92% 1.77%
Salomon High Yield 1.03% 0.60%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE High Yield Fund GE High Yield Fund w/load Salomon High Yield CS First Boston High Yield
<S> <C> <C> <C> <C>
12/31/98 10,000.00 10,000.00 10,000.00 10,000.00
10,052.40 10,052.40 10,149.80 10,094.00
10,000.51 10,000.51 10,064.54 10,072.80
3/99 10,170.37 10,170.37 10,149.59 10,164.47
10,357.18 10,357.18 10,362.12 10,389.10
10,066.96 10,066.96 10,199.43 10,276.90
6/99 10,073.53 10,073.53 10,177.00 10,282.04
10,064.55 10,064.55 10,199.38 10,287.18
9,989.60 9,989.60 10,078.01 10,195.62
9/99 9,997.31 9,997.31 10,001.42 10,117.11
10,059.09 10,059.09 9,933.41 10,067.54
10,246.52 10,246.52 10,089.36 10,204.46
12/99 10,358.14 10,358.14 10,174.11 10,327.93
10,281.12 10,281.12 10,089.67 10,286.62
10,350.12 10,350.12 10,113.88 10,350.40
3/00 10,197.03 9,916.23 9,908.57 10,195.14
10,175.05 9,896.65 9,948.21 10,179.85
9,892.65 9,623.85 9,809.84 10,016.97
6/00 10,147.39 9,873.49 10,030.12 10,241.35
10,057.37 9,787.67 10,139.03 10,337.62
10,095.94 9,827.14 10,214.05 10,406.88
9/00 9,872.02 9,611.02 10,104.76 10,311.11
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE High Yield Fund -1.25% -0.73%
GE High Yield Fund w/load -3.99% -2.24%
(maximum load) 3.00% 3.00%
CS First Boston High Yield 1.92% 1.77%
Salomon High Yield 1.03% 0.60%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE High Yield Fund GE High Yield Fund w/load Salomon High Yield CS First Boston High Yield
<S> <C> <C> <C> <C>
10/1/99 10,000.00 10,000.00 10,000.00 10,000.00
10/99 10,061.90 10,061.90 9,932.00 9,951.00
11/99 10,249.16 10,249.16 10,087.93 10,086.33
12/99 10,371.49 10,371.49 10,172.67 10,208.38
1/00 10,283.70 10,283.70 10,088.24 10,167.54
2/00 10,363.03 10,363.03 10,112.45 10,230.58
3/00 10,198.54 10,100.32 9,907.17 10,077.12
4/00 10,187.49 10,090.01 9,946.80 10,062.01
5/00 9,905.08 9,810.96 9,808.45 9,901.02
6/00 10,148.84 10,053.04 10,028.69 10,122.80
7/00 10,058.82 9,964.49 10,137.59 10,217.95
8/00 10,097.42 10,003.40 10,212.60 10,286.41
9/00 9,873.49 9,782.20 10,103.33 10,191.75
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE High Yield Fund -1.27% -1.27%
GE High Yield Fund w/load -2.18% -2.18%
(maximum load) 1.00% 1.00%
CS First Boston High Yield 1.92% 1.92%
Salomon High Yield 1.03% 1.03%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE High Yield Fund Salomon High Yield CS First Boston High Yield
12/31/98 10,000.00 10,000.00 10,000.00
1/99 10,060.13 10,149.80 10,094.00
2/99 10,015.94 10,064.54 10,072.80
3/99 10,194.62 10,149.59 10,164.47
4/99 10,390.34 10,362.12 10,389.10
5/99 10,107.88 10,199.43 10,276.90
6/99 10,122.75 10,177.00 10,282.04
7/99 10,122.31 10,199.38 10,287.18
8/99 10,055.40 10,078.01 10,195.62
9/99 10,071.41 10,001.42 10,117.11
10/99 10,142.30 9,933.41 10,067.54
11/99 10,339.45 10,089.36 10,204.46
12/99 10,460.96 10,174.11 10,327.93
1/00 10,392.06 10,089.67 10,286.62
2/00 10,469.92 10,113.88 10,350.40
3/00 10,323.74 9,908.57 10,195.14
4/00 10,321.01 9,948.21 10,179.85
5/00 10,032.37 9,809.84 10,016.97
6/00 10,299.08 10,030.12 10,241.35
7/00 10,216.36 10,139.03 10,337.62
8/00 10,264.20 10,214.05 10,406.88
9/00 10,044.87 10,104.76 10,311.11
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
GE High Yield Fund -0.26% 0.26%
CS First Boston High Yield 1.92% 1.77%
alomon High Yield 1.03% 0.60%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
80
<PAGE>
GE HIGH YIELD FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE HIGH YIELD FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
COMMUNICATIONS: FIXED 17.4%
CASH & OTHER 14.0%
ALL OTHER SECTORS 13.5%*
CABLE 13.1%
GAMING 7.2%
COMMUNICATIONS: MOBILE 7.2%
HEALTHCARE 6.9%
SERVICES 3.5%
RETAIL 3.4%
PACKAGING 3.3%
CHEMICALS 3.1%
REAL ESTATE/BUILDING 2.9%
MEDIA AND ENTERTAINMENT 2.4%
METALS 2.1%
* INCLUDES ALL OTHER SECTORS LESS THAN 2.0%.
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 85.9%
--------------------------------------------------------------------------------
AUTOMOTIVE -- 1.5%
Hayes Lemmerz International Inc.
8.25% 12/15/08 .............. $525,000 $ 425,250
Tenneco Automotive Inc.
11.625% 10/15/09 .............. 75,000 48,000
TOTAL AUTOMOTIVE
(COST $560,929) ................ 473,250
CABLE -- 13.1%
Adelphia Communications Corp.
8.375% 02/01/08 .............. 125,000 108,125
7.75% 01/15/09 .............. 400,000 333,500
9.375% 11/15/09 .............. 650,000 589,062
British Sky Broadcasting
Group PLC
8.20% 07/15/09 .............. 350,000 329,539
Callahan Nordrhein Westfalen
14.00% 07/15/10 .............. 350,000 348,250(b)
Charter Communications
Holdings
10.25% 01/15/10 .............. 475,000 464,906
CSC Holdings Inc.
7.25% 07/15/08 .............. 260,000 245,232
EchoStar DBS Corp.
9.375% 02/01/09 .............. 400,000 392,000
NTL Inc. (Series B)
10.75% 04/01/08 .............. 425,000 GBP 377,120
RCN Corp. (Series B)
12.96% 10/15/07 .............. 510,000 270,300
Rogers Cablesystems Ltd.
10.125% 09/01/12 .............. 200,000 209,500
Telewest Communications PLC
9.875% 04/15/09 .............. 450,000 GBP 342,735
United Pan-Europe
Communications N.V.
10.875% 08/01/09 .............. 230,000 195,500
TOTAL CABLE
(COST $4,654,813) .............. 4,205,769
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
CHEMICALS -- 3.1%
Huntsman ICI Chemicals LLC
10.125% 07/01/09 .............. $125,000 EUR $ 110,469
10.125% 07/01/09 .............. 230,000 225,687
ISP Holdings Inc. (Series B)
9.00% 10/15/03 .............. 435,000 382,800
Lyondell Chemical Co. (Series A)
9.625% 05/01/07 .............. 295,000 287,994
TOTAL CHEMICALS
(COST $1,076,067) .............. 1,006,950
COMMUNICATIONS: FIXED -- 17.3%
Bayan Telecommunications
13.50% 07/15/06 .............. 250,000 90,625(b)
Esprit Telecom Group PLC
11.00% 06/15/08 .............. 550,000 EUR 111,834
Exodus Communications Inc.
11.625% 07/15/10 .............. 240,000 240,600(b)
Focal Communications Corp.
11.875% 01/15/10 .............. 275,000 209,000
Global Crossings Holdings Ltd.
9.625% 05/15/08 .............. 605,000 DEM 605,000
Globix Corp.
12.50% 02/01/10 .............. 255,000 181,050
GT Group Telecom Inc.
13.25% 02/01/10 .............. 410,000 176,300
Hermes Europe Railtel BV
11.50% 08/15/07 .............. 195,000 97,500
Hyperion Telecommunications
Inc. (Series B)
10.99% 04/15/03 .............. 230,000 191,475
Intermedia Communications Inc.
11.25% 07/15/07 .............. 510,000 423,300
8.50% 01/15/08 .............. 50,000 47,875
Level 3 Communications Inc.
12.875% 03/15/10 .............. 335,000 179,225
Maxcom Telecomunicaciones S.A.
13.75% 04/01/07 .............. 215,000 117,713(b)
Motient Corp.
12.25% 04/01/08 .............. 215,000 155,337
Netia Holdings II BV
13.50% 06/15/09 .............. 250,000 EUR 204,367
NEXTLINK Communications Inc.
10.75% 11/15/08 .............. 325,000 300,625
12.125% 12/01/09 .............. 110,000 57,200
Primus Telecommunications Group
11.25% 01/15/09 .............. 405,000 206,550
12.75% 10/15/09 .............. 100,000 52,000
PSINet Inc. (Series B)
10.00% 02/15/05 .............. 460,000 299,000
PTC International Finance BV
10.75% 07/01/07 .............. 175,000 122,500
PTC International Finance II S.A.
11.25% 12/01/09 .............. 150,000 EUR 129,580
Rhythms Netconnections
18.34% 05/15/08 .............. 725,000 275,500
14.00% 02/15/10 .............. 145,000 95,700
RSL Communications PLC
12.25% 11/15/06 .............. 50,000 12,000
9.125% 03/01/08 .............. 230,000 46,000
15.20% 03/01/08 .............. 500,000 75,000
12.00% 11/01/08 .............. 275,000 67,375
-----------
See Notes to Schedules of Investments and Financial Statements.
81
<PAGE>
GE HIGH YIELD FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
Tele1 Europe BV
13.00% 05/15/09 ..............$ 155,000 EUR $ 136,981
Viatel Inc.
15.27% 04/15/08 .............. 325,000 81,250
Wam Net Inc. (Series A)
21.43% 03/01/05 .............. 250,000 112,500
Winstar Communications Inc.
14.75% 04/15/10 ..............1,385,000 443,200(b)
TOTAL COMMUNICATIONS: FIXED
(COST $7,749,862) .............. 5,544,162
COMMUNICATIONS: MOBILE -- 7.2%
Cellco Finance N.V. Turkcell
12.75% 08/01/05 .............. 160,000 158,400
Centennial Cellular Corp.
10.75% 12/15/08 .............. 350,000 342,125
CTI Holdings S.A.
12.91% 04/15/08 .............. 400,000 204,000
Dolphin Telecom PLC
19.53% 05/15/09 .............. 425,000 85,000
Globalstar LP/Capital
11.375% 02/15/04 .............. 260,000 78,000
Grupo Iusacell S.A. de C.V.
14.25% 12/01/06 .............. 210,000 222,600
Nextel Communications Inc.
11.63% 09/15/07 .............. 175,000 143,500
11.60% 02/15/08 ..............1,125,000 860,625(h)
Occidente Y Caribe Celular
S.A. (Series B)
24.58% 03/15/04 .............. 275,000 199,375
TOTAL COMMUNICATIONS: MOBILE
(COST $2,433,776) .............. 2,293,625
ENERGY -- 1.9%
Husky Oil Ltd.
8.90% 08/15/28 .............. 175,000 170,187
Nuevo Energy Co.
9.375% 10/01/10 .............. 170,000 168,938(b)
Vintage Petroleum Inc.
8.625% 02/01/09 .............. 35,000 34,825
9.75% 06/30/09 .............. 230,000 239,200
TOTAL ENERGY
(COST $602,610) ................ 613,150
FINANCIAL -- 1.8%
Anthem Insurance Cos. Inc.
9.125% 04/01/10 .............. 255,000 238,560(b)
Golden State Holdings
7.125% 08/01/05 .............. 375,000 349,949
TOTAL FINANCIAL
(COST $572,312) ................ 588,509
FOOD AND BEVERAGES -- 1.0%
Smithfield Foods Inc.
7.625% 02/15/08
(COST $353,288) ................ 375,000 336,563(h)
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
GAMING -- 7.2%
Harrah's Operating Co. Inc.
7.875% 12/15/05 .............. $550,000 $ 529,375(h)
Horseshoe Gaming Holding
8.625% 05/15/09 .............. 400,000 392,000
International Game Technology
8.375% 05/15/09 .............. 455,000 444,763
Park Place Entertainment Corp.
7.875% 12/15/05 .............. 180,000 173,475
8.50% 11/15/06 .............. 225,000 227,894
Station Casinos Inc.
10.125% 03/15/06 .............. 400,000 400,000(h)
8.875% 12/01/08 .............. 125,000 120,469
TOTAL GAMING
(COST $2,323,003) .............. 2,287,976
GENERAL INDUSTRIAL -- 1.7%
Actuant Corp.
13.00% 05/01/09 .............. 250,000 254,375(b)
Flowserve Corp.
12.25% 08/15/10 .............. 275,000 281,188(b)
TOTAL GENERAL INDUSTRIAL
(COST $521,106) ................ 535,563
HEALTHCARE -- 6.9%
Fresenius Medical Capital Trust II
9.00% 12/01/06 .............. 300,000 299,250
7.875% 02/01/08 .............. 165,000 155,925
HCA-The Healthcare Corp.
6.91% 06/15/05 .............. 750,000 709,955(h)
8.75% 09/01/10 .............. 150,000 152,159
7.58% 09/15/25 .............. 100,000 84,166
Tenet Healthcare Corp.
8.625% 01/15/07 .............. 810,000 801,900
TOTAL HEALTHCARE
(COST $2,238,091) .............. 2,203,355
HOTELS/LODGING/RESTAURANTS -- 1.3%
Hilton Hotels Corp.
7.95% 04/15/07 .............. 255,000 247,862
HMH Properties (Series A)
7.875% 08/01/05 .............. 185,000 174,362
TOTAL HOTELS/LODGING/RESTAURANTS
(COST $426,209) ................ 422,224
MEDIA AND ENTERTAINMENT -- 2.4%
Multicanal S.A. (Series E)
13.125% 04/15/09 .............. 220,000 199,495
Satelites Mexicanos S.A. de CV
10.125% 11/01/04 .............. 245,000 154,350
TV Azteca S.A. (Series B)
10.50% 02/15/07 .............. 325,000 301,437
XM Satellite Radio Holdings
Inc. (Class A)
14.00% 03/15/10 .............. 170,000 119,000(b)
TOTAL MEDIA AND ENTERTAINMENT
(COST $812,756) ................ 774,282
-----------
See Notes to Schedules of Investments and Financial Statements.
82
<PAGE>
GE HIGH YIELD FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
METALS -- 2.1%
Glencore Nickel Property Ltd.
9.00% 12/01/14 .............$ 60,000 $ 50,100
Murrin Murrin Holdings Ltd.
9.375% 08/31/07 ............. 425,000 382,500
National Steel Corp. (Series A)
9.875% 03/01/09 ............. 375,000 221,250
Republic Technologies
International LLC
13.75% 07/15/09 ............. 135,000 24,300
TOTAL METALS
(COST $902,505) ............... 678,150
OTHER -- 1.6%
Federal Republic of Brazil
11.00% 08/17/40 ............. 400,000 319,000
Republic of Colombia
9.75% 04/23/09 ............. 135,000 109,504
Republic of Philippines
10.625% 03/16/25 ............. 100,000 84,646
TOTAL OTHER
(COST $536,928) ............... 513,150
PACKAGING -- 3.3%
Indah Kiat Finance Mauritius
10.00% 07/01/07 ............. 675,000 324,000
Norampac Inc.
9.50% 02/01/08 ............. 335,000 337,513
Pacifica Papers Inc.
10.00% 03/15/09 ............. 395,000 397,962
TOTAL PACKAGING
(COST $1,118,471) ............. 1,059,475
REAL ESTATE / BUILDING -- 2.9%
Centex Corp.
9.75% 06/15/05 ............. 225,000 232,415
D.R. Horton Inc.
8.00% 02/01/09 ............. 185,000 169,738
Lennar Corp.
9.95% 05/01/10 ............. 225,000 231,187(b)
Nortek Inc. (Series B)
8.875% 08/01/08 ............. 315,000 289,800
TOTAL REAL ESTATE / BUILDING
(COST $944,889) ............... 923,140
RETAIL -- 3.4%
Dillon Read Structured
Finance (Class A)
6.66% 08/15/10 ............. 236,182 178,781
DR Structured Finance Corp.
8.375% 08/15/15 ............. 200,000 140,386
HMV Media Group PLC
10.25% 05/15/08 ............. 400,000 264,000
Musicland Group Inc.
9.00% 06/15/03 ............. 300,000 279,000
9.875% 03/15/08 ............. 250,000 210,000
TOTAL RETAIL
(COST $1,342,224) ............. 1,072,167
PRINCIPAL
AMOUNT [DIAMOND] VALUE
--------------------------------------------------------------------------------
SERVICES -- 3.5%
Norcal Waste Systems Inc.
13.50% 11/15/05 ............. $295,000 $ 310,488
USA Waste Services Inc.
7.125% 10/01/07 ............. 375,000 351,962
7.125% 12/15/17 ............. 50,000 42,991
Waste Management Inc.
6.875% 11/15/00 ............. 75,000 68,074
7.00% 10/15/06 ............. 250,000 234,237
7.65% 03/15/11 ............. 120,000 112,625
TOTAL SERVICES
(COST $1,085,894) ............. 1,120,377
SUPERMARKET/DRUGS -- 0.5%
Stater Brothers Holdings Inc.
10.75% 08/15/06
(COST $183,657) ............... 195,000 164,775
TECHNOLOGY -- 0.7%
Hyundai Semiconductor
8.25% 05/15/04 ............. 100,000 90,983(b)
8.625% 05/15/07 ............. 150,000 129,177(b)
TOTAL TECHNOLOGY
(COST $220,255) ............... 220,160
UTILITIES -- 1.5%
AES Corp.
8.50% 11/01/07 ............. 325,000 310,375(h)
Paiton Energy Funding BV
9.34% 02/15/14 ............. 350,000 73,500(b)
Ras Laffan Liquefied Natural Gas
8.294% 03/15/14 ............. 100,000 95,059(b)
TOTAL UTILITIES
(COST $482,916) ............... 478,934
TOTAL CORPORATE BONDS AND NOTES
(COST $31,142,561) ............ 27,515,706
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 0.1%
--------------------------------------------------------------------------------
Tele1 Europe Holding AB ADR ...... 2,912 23,161(a)
TOTAL COMMON STOCK
(COST $0) ..................... 23,161
--------------------------------------------------------------------------------
PREFERRED STOCK -- 4.5%
--------------------------------------------------------------------------------
Dobson Communications Corp.,
13.00% ........................ 244 232,660
IXC Communications Inc.
(Series B), 12.50% ............ 279 284,580
Kmart Financing I, 7.75% ......... 4,950 155,925
Nextel Communications Inc.
(Series D), 13.00% ............ 37 39,775
---------
See Notes to Schedules of Investments and Financial Statements.
83
<PAGE>
GE HIGH YIELD FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
NEXTLINK Communications Inc.
(Series B), 13.50% ............ 196 $ 168,894
Paxson Communications Corp.,
13.25% ........................ 31 303,439(a)
TNP Enterprises Inc., 14.50% ..... 250 252,500(b)
TOTAL PREFERRED STOCK
(COST $1,417,362) ............. 1,437,773
--------------------------------------------------------------------------------
WARRANTS -- 0.2%
--------------------------------------------------------------------------------
Globalstar Telecom, 02/15/04 ..... 900 1,125(a)
GT Group Telecom Inc. (Class B),
02/01/10 ...................... 410 32,800(b)
Maxcom Telecomunicaciones
S.A., 04/01/07 ................ 215 538(b)
Motient Corp., 04/01/08 .......... 7,500 2,062
Occidente Y Caribe Celular
S.A., (Class D), 03/15/04 ..... 14,600 5,475(a)
Republic Technologies
International Inc., 07/15/09 .. 135 1(a,b)
Wam Net Inc., 03/01/05 ........... 5,250 6,103(a,b)
XM Satellite Radio Inc.,
03/15/2010 .................... 170 23,800
TOTAL WARRANTS
(COST $111,992) ............... 71,904
TOTAL INVESTMENTS IN SECURITIES
(COST $32,671,896) ............ 29,048,544
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.2%
--------------------------------------------------------------------------------
San Paolo U.S. Finance Co.
6.70% 10/02/00
(COST $1,359,747) .............$1,360,000 1,359,747
OTHER ASSETS AND LIABILITIES,
NET 5.1% ...................... 1,616,271
-----------
NET ASSETS-- 100% ................ $32,024,562
===========
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------
At September 30, 2000, 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 85,000 USD $ 75,267 11/10/00 $ 75,119 $ (148)
--------- -----------
SALES
EUR 175,000 USD $164,295 10/26/00 $ 154,656 $ 9,639
EUR 80,000 USD 72,484 10/26/00 70,700 1,784
EUR 200,000 USD 189,500 10/30/00 176,750 12,750
EUR 150,000 USD 142,110 10/30/00 132,562 9,548
EUR 320,000 USD 290,042 11/10/00 282,800 7,242
GBP 145,000 USD 217,456 11/02/00 214,441 3,015
GBP 320,000 USD 480,544 11/03/00 473,248 7,296
GBP 35,000 USD 52,673 11/10/00 51,762 911
---------- -----------
$1,556,919 $ 52,185
---------- -----------
NET UNREALIZED APPRECIATION $ 52,037
-----------
-----------
--------
See Notes to Schedules of Investments and Financial Statements.
84
<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 48 FOR DAVE'S BIOGRAPHICAL DETAILS), RALPH MANAGES THE
INTERNATIONAL EQUITY HOLDINGS WITHIN THE PORTFOLIO (PLEASE REFER TO PAGE 29 FOR
RALPH'S BIOGRAPHICAL DETAILS) AND BOB MANAGES THE FIXED INCOME RELATED
INVESTMENTS IN THE PORTFOLIO (PLEASE REFER TO PAGE 60 FOR, BOB'S BIOGRAPHICAL
DETAILS).
Q. HOW DID THE GE STRATEGIC INVESTMENT FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE ONE-YEAR PERIOD ENDED SEPTEMBER 30, 2000?
A. The GE Strategic Investment Fund posted a return of 13.78% for Class A
Shares, 12.94% for Class B Shares, 12.76% for Class C Shares and 14.06% for
Class Y Shares for the one-year period ended September 30, 2000. The Fund
allocates investments among several asset classes and therefore the results
of the Fund need to be compared to several benchmarks: S&P 500 Index which
returned 13.24%; the MSCI EAFE Index which returned 3.18%; and the Lehman
Brothers Aggregate Bond Index which returned 6.99%. A synthetic benchmark
for this product returned 11.03%. For the same period, our Lipper peer group
of 472 Balanced funds had an average return of approximately 11.31%. The
Fund's performance is ranked in the top third relative to the peer group.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK FOR THE ONE-YEAR PERIOD ENDED
SEPTEMBER 30, 2000?
A. The Fund's outperformance was driven by asset allocation and strong
performance within each of the asset classes. The U.S. equity portion of the
Fund returned in excess of 20%, exceeding the S&P 500 Index return of more
than 13%. The fixed income portion of the portfolio was very strong during
this time period, posting a gain of more than 5.5%. The international
portion of the portfolio performed strongly as well, with gains in excess of
12%. This more than beat the MSCI EAFE Index, which posted gains of only 3%
during the period. Our allocation in international stocks sets us apart from
many other balanced funds, which only concentrate on the U.S. financial
markets. Please read the commentary on the GE International Equity Fund and
the GE Fixed Income Fund for a more detailed description of the individual
asset classes.
Q. WHAT HAS BEEN GOING ON IN THE U.S. EQUITY MARKETS?
A. Volatility has been the one constant in the U.S. equity markets over the
past year. After stellar gains in the fourth quarter of 1999, the first
three quarters of 2000 have been very volatile. The first quarter of 2000
performed quite well, with a very strong January and February, however,
March proved to be the beginning of a re-valuation in the U.S. equity
markets. A number of technology stocks were priced to perfection and the
March through May period corrected some of the excesses.
The U.S. Equity markets certainly did not earn a gold medal in the third
quarter of 2000. In fact, the S&P 500 Index finished down 1.0% in the
quarter, placing the Index seventh out of 33 FT/S&P All-World Indices
measured in U.S. dollars. The silver lining is that the U.S. position
improved from 18th place in 1999, perhaps indicating that the U.S. markets
provide a relative "safe" haven in times of slowing global economic
conditions.
Q. WHAT ARE THE CURRENT WEIGHTINGS OF THE VARIOUS ASSET CLASSES AND HOW HAVE
THEY CHANGED OVER THE PAST YEAR?
A. Currently, the Fund's asset allocation mix reflects 46% of the assets in
U.S. equities, 14% in international equities, 35% in fixed income, and 5% in
cash and cash equivalents. We continue to directionally model the weights of
this portfolio in conjunction with the policy governing the GE Pension Plan.
Our Asset Allocation Committee meets regularly to discuss any changes to the
policy. The target weightings have shifted marginally toward international
equities, as our Committee believes there are compelling values in the
international markets versus the U.S. equity markets. The total equity
allocation is 60% and the fixed income allocation is 35%, directionally in
line with the Committee's policy targets.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The returns for the Fund will continue to reflect demand for equities in
both U.S. and international issues. Despite the Federal Reserve's commitment
to containing any inflationary pressures through rate increases, we believe
companies are executing their business plans and should produce solid
earnings over the next few quarters. The U.S. market, and consequently the
international markets, likely will continue to be volatile, although this
should be beneficial as the speculative excesses are eliminated from the
system. The fixed income market should continue to experience relief as the
market seeks short term security in the bond market as a soft landing
unfolds.
85
<PAGE>
GE STRATEGIC INVESTMENT FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT SEPTEMBER 30, 2000
AS A % OF NET ASSETS
--------------------------------------------------------------------------------
Citigroup Inc. 3.08%
--------------------------------------------------------------------------------
U.S. Treasury Bonds 8.125%, 08/15/19 2.35%
--------------------------------------------------------------------------------
Cardinal Health Inc. 1.93%
--------------------------------------------------------------------------------
First Data Corp. 1.60%
--------------------------------------------------------------------------------
Dover Corp. 1.43%
--------------------------------------------------------------------------------
Federal National Mortgage
Assoc. 6.50%, TBA 1.43%
--------------------------------------------------------------------------------
Fannie Mae 1.40%
--------------------------------------------------------------------------------
Federal National Mortgage
Assoc. 7.00%, 07/15/05 1.39%
--------------------------------------------------------------------------------
AT&T Corp. - Liberty Media
Group (Class A) 1.37%
--------------------------------------------------------------------------------
Molex Inc. (Class A) 1.26%
--------------------------------------------------------------------------------
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 9/30/00
One Five
Year Year
-------- --------
Number of
Funds in
peer group: 472 252
Peer group
average annual
total return: 11.31% 12.73%
Lipper categories
in peer group: BALANCED
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[CLASS A SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE Strategic Investment GE Strategic Investment w/load S&P 500 LB Aggregate Composite Index**
<S> <C> <C> <C> <C> <C>
2/22/93 10,000.00 9,425.00 10,000.00 10,000.00 10,000.00
10,309.14 9,715.01 10,215.80 10,041.80 10,146.38
9/93 10,806.46 10,183.66 10,531.82 10,576.96 10,552.78
10,482.79 9,878.65 10,365.39 10,279.87 10,335.45
9/94 10,777.59 10,156.46 10,920.02 10,235.87 10,649.38
11,488.09 10,826.02 11,979.63 10,792.61 11,502.55
9/95 12,970.65 12,223.14 14,166.68 11,675.08 13,130.68
14,023.21 13,215.03 15,825.89 11,955.18 14,171.42
9/96 14,731.61 13,882.59 17,047.17 12,244.82 14,970.25
15,562.97 14,666.04 18,960.87 12,542.24 16,125.56
9/97 18,039.57 16,999.92 23,948.59 13,437.82 19,097.01
19,811.42 18,669.65 28,069.47 14,047.16 21,410.01
9/98 19,100.00 17,998.89 26,131.98 14,983.10 21,130.68
22,062.24 20,790.76 33,274.27 14,957.20 24,454.06
9/99 22,018.27 20,749.32 33,398.05 14,926.95 24,509.51
24,893.54 23,458.89 39,318.96 15,237.89 27,318.92
9/00 25,052.10 23,608.31 37,820.44 15,969.85 27,220.04
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ----------
GE Strategic Investment 13.78% 14.07% 12.83%
GE Strategic Investment w/load 7.23% 12.72% 11.96%
(maximum load-5.75%)
S&P 500 13.24% 21.70% 19.11%
LB Aggregate 6.99% 6.46% 6.35%
Composite Index** 11.03% 15.68% 14.07%
CLASS B SHARES
[CLASS B SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE Strategic Investment GE Strategic Investment w/load S&P 500 LB Aggregate Composite Index**
<S> <C> <C> <C> <C> <C>
12/22/93 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
9,640.98 9,640.98 9,618.62 9,713.37 9,657.13
9/94 9,874.90 9,874.90 10,133.30 9,671.79 9,950.46
10,491.68 10,491.68 11,116.57 10,197.82 10,747.64
9/95 11,803.95 11,803.95 13,146.06 11,031.69 12,268.91
12,715.28 12,715.28 14,685.73 11,296.35 13,241.35
9/96 13,306.23 13,306.23 15,819.02 11,570.04 13,987.75
14,012.40 14,012.40 17,594.85 11,851.06 15,067.24
9/97 16,176.03 16,176.03 22,223.24 12,697.29 17,843.67
17,672.96 17,672.96 26,047.23 13,273.05 20,004.87
9/98 16,970.00 16,970.00 24,249.33 14,157.41 19,743.87
19,531.49 19,531.49 30,877.06 14,132.94 22,849.14
9/99 19,420.29 19,420.29 30,991.92 14,104.35 22,900.95
22,403.56 22,403.56 36,486.26 14,398.16 25,525.98
9/00 22,546.25 22,546.25 35,095.70 15,089.78 25,433.59
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------- ---------
GE Strategic Investment 12.94% 13.19% 12.75%
GE Strategic Investment w/load 8.94% 13.19% 12.75%
(maximum load) 4.00% 0.00% 0.00%
S&P 500 13.24% 21.70% 20.36%
LB Aggregate 6.99% 6.46% 6.26%
Composite Index** 11.03% 15.68% 14.77%
CLASS C SHARES
[CLASS C SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE Strategic Investment GE Strategic Investmentw/load S&P 500 LB Aggregate Composite Index**
<S> <C> <C> <C> <C> <C>
9/30/99 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
10/99 10,294.48 10,294.48 10,636.00 10,037.00 10,396.40
11/99 10,462.17 10,462.17 10,851.91 10,036.00 10,522.61
12/99 10,945.52 10,945.52 11,491.09 9,987.82 10,874.28
1/00 10,697.45 10,697.45 10,912.05 9,954.86 10,531.15
2/00 10,627.82 10,627.82 10,710.07 10,075.32 10,467.75
3/00 11,245.81 11,145.81 11,772.83 10,208.31 11,146.25
4/00 11,097.84 10,997.84 11,399.04 10,178.71 10,920.99
5/00 11,093.49 10,993.49 11,165.82 10,173.62 10,782.31
6/00 11,258.87 11,158.87 11,438.93 10,385.23 11,030.26
7/00 11,128.31 11,028.31 11,256.37 10,479.74 10,967.24
8/00 11,480.83 11,380.83 11,955.39 10,631.69 11,439.48
9/00 11,276.28 11,176.28 11,324.15 10,698.67 11,105.91
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
GE Strategic Investment 12.76% 12.76%
GE Strategic Investment w/load 11.76% 11.76%
(maximum load) 1.00% 1.00%
S&P 500 13.24% 13.24%
LB Aggregate 6.99% 6.99%
Composite Index** 11.03% 11.03%
CLASS Y SHARES
[CLASS Y SHARES LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
<TABLE>
<CAPTION>
GE Strategic Investment S&P 500 LB Aggregate Composite Index**
<S> <C> <C> <C> <C>
11/29/93 10,000.00 10,000.00 10,000.00 10,000.00
9,745.04 9,737.32 9,766.01 9,749.57
9/94 10,025.30 10,258.34 9,724.21 10,045.71
10,700.41 11,253.75 10,253.12 10,850.52
9/95 12,100.96 13,308.28 11,091.48 12,386.35
13,101.36 14,866.95 11,357.58 13,368.09
9/96 13,789.47 16,014.23 11,632.74 14,121.64
14,588.35 17,811.97 11,915.30 15,211.46
9/97 16,928.65 22,497.47 12,766.11 18,014.47
18,607.41 26,368.65 13,344.99 20,196.36
9/98 17,962.00 24,548.57 14,234.14 19,932.86
20,773.06 31,258.08 14,209.54 23,067.85
9/99 20,756.52 31,374.36 14,180.80 23,120.16
23,499.60 36,936.50 14,476.20 25,770.32
09/00 23,675.49 35,528.78 15,171.57 25,677.04
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ------ ----------
GE Strategic Investment 14.06% 14.37% 13.43%
S&P 500 13.24% 21.70% 20.37%
LB Aggregate 6.99% 6.46% 6.28%
Composite Index** 11.03% 15.68% 14.78%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
86
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE STRATEGIC INVESTMENT FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
DOMESTIC EQUITY 45.5%
BONDS AND NOTES 35.2%
FOREIGN EQUITY 14.3%
CASH & OTHER 5.0%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
DOMESTIC EQUITY -- 45.5%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 0.0%
Airgas Inc. ........................ 10,316 $ 70,278(a)
CAPITAL GOODS -- 4.4%
Alleghany Corp. .................... 1,081 211,876
Dover Corp. ........................ 68,027 3,193,017
Emerson Electric Co. ............... 9,112 610,504
Honeywell International Inc. ....... 14,901 530,848
Hubbell Inc. (Class B) ............. 19,199 481,175
Molex Inc. (Class A) ............... 67,626 2,802,253
Textron Inc. ....................... 8,253 380,670
United Technologies Corp. .......... 9,972 690,561
Waste Management Inc. .............. 57,310 999,343
9,900,247
CONSUMER - CYCLICAL -- 7.0%
Adelphia Communications
Corp. (Class A) ................. 4,012 110,581(a)
AT&T Corp. - Liberty Media
Group (Class A) ................. 169,637 3,053,466(a)
Carnival Corp. ..................... 25,217 620,969
Catalina Marketing Corp. ........... 62,754 2,361,119(a)
Comcast Corp. (Class A) ............ 58,456 2,393,042(a)
CVS Corp. .......................... 13,181 610,445
Gannett Co. Inc. ................... 3,725 197,425
Home Depot Inc. .................... 31,521 1,672,583
Interpublic Group Cos. Inc. ........ 31,521 1,073,684
NTL Inc. ........................... 46,421 2,149,873(a)
The Walt Disney Co. ................ 37,194 1,422,670
15,665,857
CONSUMER - STABLE -- 10.3%
Abbott Laboratories ................ 46,708 2,221,549
American Home Products Corp. ....... 18,912 1,069,710
Avon Products Inc. ................. 4,585 187,412
Bristol-Myers Squibb Co. ........... 30,947 1,767,847
Cardinal Health Inc. ............... 48,713 4,295,878
Colgate-Palmolive Co. .............. 7,336 346,259
Dentsply International Inc. ........ 16,047 560,642
Energizer Holdings Inc. ............ 9,170 224,665(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Gillette Co. ....................... 25,790 $ 796,266
Henry Schein Inc. .................. 26,076 519,890(a)
Johnson & Johnson .................. 23,554 2,212,604
Lincare Holdings Inc. .............. 34,959 1,002,886(a)
Merck & Co. Inc. ................... 37,252 2,772,946
Pepsico Inc. ....................... 32,667 1,502,682
Pfizer Inc. ........................ 36,105 1,622,469
Philip Morris Cos. Inc. ............ 23,039 678,211
Sybron International Corp. ......... 46,421 1,114,104(a)
22,896,020
ENERGY -- 3.6%
Anadarko Petroleum Corp. ........... 21,778 1,447,366
Baker Hughes Inc. .................. 29,228 1,085,089
Exxon Mobil Corp. .................. 10,602 944,903
Nabors Industries Inc. ............. 20,059 1,051,092(a)
Royal Dutch Petroleum Co. ADR ...... 17,193 1,030,505
Schlumberger Ltd. .................. 29,801 2,452,995
8,011,950
FINANCIAL -- 9.5%
AFLAC Inc. ......................... 6,877 440,558
American Express Co. ............... 14,614 887,800
American International Group Inc. .. 27,523 2,633,607
Bank One Corp. ..................... 18,339 708,344
Berkshire Hathaway Inc. (Class B) .. 451 933,570(a)
Citigroup Inc. ..................... 127,037 6,867,938
Countrywide Credit Industries Inc. . 10,029 378,595
Federal National Mortgage Assoc. ... 43,613 3,118,329
Fidelity National Financial Inc. ... 21,778 539,006
Loews Corp. ........................ 8,883 740,620
Marsh & McLennan Cos. Inc. ......... 15,359 2,038,907
State Street Corp. ................. 14,041 1,825,330(e)
21,112,604
MISCELLANEOUS -- 1.2%
SPDR Trust ......................... 17,907 2,571,893
TECHNOLOGY -- 8.7%
Analog Devices Inc. ................ 4,585 378,549(a)
Applied Materials Inc. ............. 15,474 917,802(a)
Automatic Data Processing Inc. ..... 39,659 2,652,196
Cisco Systems Inc. ................. 41,263 2,279,781(a)
Dell Computer Corp. ................ 14,901 459,137(a)
EMC Corp. .......................... 24,070 2,385,939(a)
Equifax Inc. ....................... 88,260 2,377,504
First Data Corp. ................... 91,123 3,559,492
Intel Corp. ........................ 57,310 2,381,947
Microsoft Corp. .................... 27,509 1,659,136(a)
Pitney Bowes Inc. .................. 8,883 350,323
19,401,806
UTILITIES -- 0.8%
NEXTLINK Communications
Inc. (Class A) .................. 9,743 342,832(a)
SBC Communications Inc. ............ 4,012 200,600
Sprint Corp. ....................... 8,023 235,174
WorldCom Inc. ...................... 30,374 922,610(a)
1,701,216
TOTAL DOMESTIC EQUITY
(COST $69,013,093) .............. 101,331,871
-------------
See Notes to Schedules of Investments and Financial Statements.
87
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
FOREIGN EQUITY -- 14.3%
--------------------------------------------------------------------------------
CONSUMER - DISCRETIONARY -- 1.5%
Autoliv Inc. SDR .................. 12,860 $ 253,455
Bayerische Motoren Werke
(BMW) AG ....................... 10,374 355,261
Giordano International Ltd. ....... 256,000 148,580
Granada Compass PLC ............... 19,500 182,548(a)
Grupo Televisa S.A. GDR ........... 3,204 184,831(a)
Koninklijke (Royal) Philips
Electronics N.V. ............... 15,041 648,274
Lagardere S.C.A. .................. 9,096 551,849
Mazda Motor Corp. ................. 74,000 144,096
Michelin CGDE (Regd.) (Class B) ... 5,336 148,544
NAMCO Ltd. ........................ 200 5,564
Publicis Groupe ................... 1,821 55,693
Reed International PLC ............ 26,082 207,135
Sony Corp. ........................ 4,800 487,811
3,373,641
CONSUMER STAPLES -- 0.3%
Kao Corp. ......................... 12,643 345,837
Koninklijke Ahold N.V. ............ 6,528 185,362
Somerfield PLC .................... 64,610 75,486
606,685
ENERGY -- 0.6%
Coflexip S.A. ADR ................. 1,636 101,841
Petroleo Brasileiro S.A. -
Petrobras ADR .................. 7,978 239,839(a)
Repsol S.A. ....................... 6,050 111,478
Saipem ............................ 34,627 192,790
Total S.A. (Class B) .............. 4,404 645,299
1,291,247
FINANCIAL -- 3.4%
Asahi Bank Ltd. ................... 9,512 39,249
AXA-UAP ........................... 5,173 676,602
Banca Intesa S.p.A. ............... 93,816 362,316
Banco Comercial Portugues
(Regd.) ........................ 13,726 72,176
Bank of Ireland ................... 52,944 423,441
Bank of Scotland .................. 11,250 98,994
Banque Nationale de Paris ......... 4,302 379,809
Bayerische Hypo- und
Vereinsbank AG ................. 2,560 141,988
CGNU PLC .......................... 46,254 656,689
Cheung Kong (Holdings) Ltd. ....... 19,014 229,246
Credit Suisse AG .................. 1,267 237,152
Deutsche Bank AG .................. 4,421 366,091
Dresdner Bank AG .................. 10,744 472,661
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) . 61,299 281,111(a)
Hutchison Whampoa Ltd. ............ 2,200 29,205
ING Groep N.V. .................... 12,856 857,565
Investor AB (Series B) ............ 3,356 47,644
Invik & Co. AB .................... 723 67,224
Kookmin Bank ...................... 2,711 32,333
Mizuho Holdings Inc. .............. 17 140,294(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) ........ 1,159 $ 346,202
Nordic Baltic Holding AB FDR ...... 29,849 211,560
Prudential PLC .................... 8,578 117,092
Riunione Adriatica di
Sicurta S.p.A .................. 21,608 284,531
Royal & Sun Alliance Insurance
Group PLC ...................... 60,324 403,244
Sampo Insurance Co. Ltd.
(Series A) ..................... 8,918 436,623
Svenska Handelsbanken AB
(Series A) ..................... 2,957 47,669
Uniao de Bancos Brasileiros
S.A. GDR ....................... 5,769 190,377
7,649,088
HEALTHCARE -- 0.7%
Aventis S.A. ...................... 6,668 500,892
Fresenius Medical Care AG ......... 3,124 282,985
Nycomed Amersham PLC .............. 40,077 393,256
Teva Pharmaceutical Industries
Ltd. ADR ....................... 5,489 401,726
1,578,859
INDUSTRIALS -- 2.1%
ABB Ltd. .......................... 175 17,037
Acciona S.A. ...................... 1,272 42,110
Alstom ............................ 24,420 564,348
BAE Systems PLC ................... 157,783 851,711
Brambles Industries Ltd. .......... 21,072 550,913
Desc S.A. de C.V. (Series B) ...... 34,858 19,566
Desc S.A. de C.V. ADR ............. 6,086 62,762
Embraer - Empresa Brasileira de
Aeronautica S.A. ADR ........... 4,792 148,552(a)
European Aeronautic Defence &
Space Co. ...................... 10,674 187,248(a)
Grupo Carso S.A. de C.V. ADR ...... 9,611 57,762(a)
IHC Caland N.V. ................... 5,028 253,279
Invensys PLC ...................... 269,957 589,876
ITOCHU Corp. ...................... 30,166 140,138(a)
Johnson Electric Holdings Ltd. .... 170,400 366,087
Minebea Co. Ltd. .................. 44,000 516,111
Preussag AG ....................... 1,241 38,254
Railtrack Group PLC ............... 5,747 94,257
Schneider S.A. .................... 1,935 122,098
4,622,109
INFORMATION TECHNOLOGY -- 2.3%
Alcatel ........................... 2,435 156,015
ASM Lithography Holding N.V. ...... 7,827 260,083(a)
ATI Technologies Inc. ............. 18,145 147,467(a)
Canon Inc. ........................ 18,000 799,481
Celestica Inc. .................... 4,702 325,613(a)
CGI Group Inc. (Class A) .......... 20,461 158,823(a)
Datacraft Asia Ltd. ............... 18,080 150,064
Dimension Data Holdings PLC ....... 3,177 29,459(a)
ECI Telecommunications Ltd. ....... 13,928 426,545
Fujitsu Ltd. ...................... 28,000 651,676
Getronics N.V. .................... 7,362 74,040
Murata Manufacturing Co. Ltd. ..... 2,000 276,323
--------------
See Notes to Schedules of Investments and Financial Statements.
88
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Samsung Electronics ............... 1,660 $ 300,695
Taiwan Semiconductor
Manufacturing Co. Ltd. ......... 198,206 658,134(a)
Telefonaktiebolaget LM
Ericsson AB (Series B) ......... 5,495 83,725
Tietoenator Oyj ................... 556 15,724
Toshiba Corp. ..................... 76,000 613,807
5,127,674
MATERIALS -- 0.8%
Bayer AG .......................... 4,345 161,851
Billiton PLC ...................... 21,366 76,389
Corus Group PLC ................... 55,700 42,217
CRH PLC ........................... 16,806 266,896
Ispat International N.V. (Regd.)
(Class A) ...................... 8,153 40,765
Jefferson Smurfit Group PLC ....... 56,307 97,429
Kinnevik AB (Series B) ............ 1,406 32,024
Metallgesellschaft AG ............. 23,984 255,410
Pohang Iron & Steel Co. Ltd. ...... 2,024 150,645
Pohang Iron & Steel Co. Ltd. ADR .. 732 13,634
Rhodia S.A. ....................... 9,007 97,987
Shin-Etsu Chemical Co. ............ 9,000 379,712
Stora Enso Oyj .................... 14,298 119,914
1,734,873
TELECOMMUNICATION SERVICES -- 1.3%
Cable & Wireless Optus Ltd. ....... 71,168 154,452(a)
Cable & Wireless PLC .............. 37,202 530,924
GN Store Nord A/S ................. 245 34,810
Hellenic Telecommunication
Organization S.A. ADR .......... 6,033 55,805
Hellenic Telecommunication
Organization S.A. GDR .......... 5,590 107,117
Koninklijke (Royal) KPN N.V. ...... 2,215 48,311
Korea Telecom Corp. ADR ........... 2,583 86,853
Korea Telecom Corp. ............... 1,486 89,015
NetCom AB (Series B) .............. 1,149 59,034(a)
Nippon Telegraph and Telephone
Corp. (NTT) .................... 24 235,894
Telecom Italia S.p.A .............. 7,733 82,282
Telefonica S.A. ................... 31,139 617,803(a)
Telefonica S.A. ADR ............... 477 28,352(a)
Telefonos de Mexico S.A. de
C.V. ADR ....................... 3,297 175,359
Telekomunikacja Polska S.A.
GDR (Series A) ................. 19,058 96,243(b)
Vodafone AirTouch PLC ............. 156,886 585,848
2,988,102
UTILITIES -- 1.3%
Korea Electric Power (KEPCO)
Corp. .......................... 2,940 76,720
Lyonnaise Des Eaux S.A. ........... 1,695 263,191
The Tokyo Electric Power Co. Inc. . 9,300 219,468
Veba AG ........................... 2,565 132,155
Vivendi S.A. ...................... 3,601 267,957
Vodafone Group PLC ADR ............ 51,866 1,919,042
2,878,533
TOTAL FOREIGN EQUITY
(COST $30,970,742) ............. 31,850,811
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 35.2%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 4.1%
U.S. Treasury Bonds
8.125% 08/15/19 .............$4,290,000 $ 5,239,849(h)
6.125% 08/15/29 ............. 1,860,000 1,899,823(h)
6.25% 05/15/30 ............. 1,061,000 1,115,047(h)
8,254,719
U.S. Treasury Notes
3.875% 01/15/09 ............. 662,999 656,992(h,q)
5.75% 08/15/10 ............. 140,000 139,650
796,642
TOTAL U.S. TREASURIES
(COST $8,918,207) ............. 9,051,361
FEDERAL AGENCIES -- 4.7%
Federal Home Loan Bank
6.75% 05/01/02 ............. 2,750,000 2,758,580
Federal Home Loan Mortgage Corp.
7.375% 05/15/03 ............. 685,000 698,590
6.22% 03/18/08 ............. 445,000 418,647
1,117,237
Federal National Mortgage Assoc.
5.75% 04/15/03 ............. 560,000 549,763
5.125% 02/13/04 ............. 310,000 296,630
5.78% 05/05/04 ............. 405,000 391,266
7.00% 07/15/05 ............. 3,035,000 3,086,201
6.99% 07/09/07 ............. 855,000 834,292
5.64% 12/10/08 ............. 255,000 239,784
6.04% 02/25/09 ............. 760,000 708,578
7.25% 01/15/10 ............. 70,000 72,188
6.00% TBA .................. 548,000 511,695(c)
6,690,397
TOTAL FEDERAL AGENCIES
(COST $10,642,973) ............ 10,566,214
AGENCY MORTGAGE BACKED -- 11.2%
Federal Home Loan Mortgage Corp.
7.50% 11/01/09 ............. 60,195 60,778
7.50% 06/01/10 ............. 136,958 138,114
9.00% 04/01/16-07/01/16 .... 54,561 56,129
9.00% 02/01/17 ............. 73,869 75,992
9.00% 06/01/21 ............. 28,615 29,688(h)
6.00% 04/01/29-05/01/29 .... 1,804,147 1,686,318
6.50% 06/01/29-07/01/29 .... 1,520,403 1,463,985
7.50% 10/01/29 ............. 148,609 148,376
6.00% 01/01/30 ............. 866,469 809,880
7.50% 01/01/30-03/01/30 .... 222,983 222,632
7.00% 02/01/30 ............. 227,660 223,240
8.00% 04/01/30-08/01/30 .... 1,042,189 1,057,164
7.00% TBA .................. 750,000 734,768(c)
7.50% TBA .................. 1,070,000 1,068,331(c)
7,775,395
---------
See Notes to Schedules of Investments and Financial Statements.
89
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Federal National Mortgage Assoc.
9.00% 06/01/09 ............ $ 297,734 $ 311,318
7.50% 12/01/09 ............ 140,117 141,362
7.00% 08/01/13 ............ 53,167 53,117
7.50% 02/01/14 ............ 97,425 98,430
6.50% 01/01/15 ............ 149,821 146,871
8.00% 07/01/15 ............ 39,845 40,567
9.00% 04/01/16 ............ 159,584 164,113
9.00% 12/01/17 ............ 107,207 110,925
9.00% 12/01/22 ............ 123,680 127,969
7.50% 12/01/23 ............ 316,776 318,217
6.50% 01/01/29-10/01/29 ... 3,253,961 3,124,813
7.50% 09/01/29 ............ 160,256 159,954
6.00% 10/01/29 ............ 368,600 344,298
7.00% 02/01/30 ............ 6,162 6,034
7.50% 02/01/30 ............ 1,294,860 1,291,623
8.50% 05/01/30-09/01/30 ... 1,158,946 1,186,718
6.00% TBA ................. 177,000 170,308(c)
6.50% TBA ................. 311,000 298,464(c)
6.50% TBA ................. 3,242,000 3,178,165(c)
11,273,266
Government National Mortgage Assoc.
7.00% 03/15/12 ............ 376,090 377,500
9.00% 11/15/16 ............ 487,166 511,977
8.50% 10/15/17 ............ 720,300 745,532
9.00% 01/15/17-11/15/17 ... 274,573 288,556
9.00% 12/15/21 ............ 21,819 22,746
7.50% 01/15/23 ............ 94,237 94,796
6.50% 02/15/24-03/15/24 ... 794,068 768,507
6.50% 04/15/28 ............ 1,797,019 1,730,745
7.00% 04/15/28 ............ 409,370 403,230
8.00% 09/15/29 ............ 25,757 26,216
8.00% 02/15/30-06/15/30 ... 969,289 986,551
5,956,356
TOTAL AGENCY MORTGAGE BACKED
(COST $24,969,210) ........... 25,005,017
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.9%
Collateralized Mortgage
Obligation Trust
8.31% 09/01/15 ............ 7,201 6,422(d,f)
7.28% 11/01/18 ............ 21,248 13,917(d,f)
20,339
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 ............ 12,385 12,694(f)
6.204% 02/15/22 ............ 84,000 74,390(f)
7.75% 03/15/22 ............ 196,218 197,076(f)
5.75% 06/15/23 ............ 137,000 131,528
5.46% 10/15/23 ............ 91,849 49,168(d,f)
6.894% 02/15/24 ............ 71,000 63,878(f)
7.50% 07/15/27 ............ 307,493 82,445(g)
7.00% 01/15/28 ............ 52,000 19,808(g)
6.04% 04/01/29 ............ 189,995 122,992(d,f)
7.50% 06/15/29-07/15/29 ... 362,655 78,662(g)
2.745% 09/15/29 ............ 155,870 99,270
4.461% 03/15/30 ............ 235,939 169,879
1,101,790
Federal Home Loan Mortgage Corp. STRIPS
8.00% 02/01/23 ............ 63,250 16,959(g)
8.00% 07/01/24 ............ 69,080 19,269(g)
5.55% 08/01/27 ............ 151,409 109,108(d,f)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
8.00% 01/01/28 ............ $ 43,668 $ 12,186(g)
5.97% 04/01/28 ............ 477,574 315,199(f)
6.34% 06/15/29 ............ 1,016,685 643,371(d,f)
1,116,092
Federal National Mortgage Assoc.
6.00% 07/01/14 ............ 141,364 136,017
5.62% 12/25/22 ............ 30,279 22,649(d,f)
6.18% 10/25/29 ............ 127,342 81,458(d,f)
7.00% 12/01/29 ............ 219,702 60,281(g)
300,405
Federal National Mortgage Assoc. REMIC
1,080.912% 03/25/22 ........... 341 11,519(d,f)
1,008.00% 05/25/22 ............ 165 4,559(d,f)
3.561% 12/18/29 ............ 73,597 48,528
64,606
Federal National Mortgage Assoc. STRIPS
8.50% 03/01/17-04/01/17 ... 26,214 6,603(g)
8.50% 01/01/18 ............ 3,071 771(g)
9.00% 05/25/22 ............ 31,071 8,553(g)
8.50% 07/25/22 ............ 42,589 11,576(g)
8.00% 02/01/23-08/01/23 ... 876,611 249,633(g)
7.50% 11/01/23 ............ 535,887 156,409(g)
8.00% 07/01/24 ............ 233,745 65,301(g)
8.00% 11/01/26 ............ 154,667 42,364(g)
7.50% 04/01/27-07/01/27 ... 1,564,307 445,861(g)
5.93% 05/01/28 ............ 785,672 517,805(d,f)
8.00% 11/01/29 ............ 288,556 73,281(g)
5.24% 05/01/30 ............ 90,582 67,370(d,f)
1,645,527
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $4,272,057) ............ 4,248,759
ASSET BACKED -- 2.5%
Advanta Mortgage Loan
Trust Corp.
6.30% 07/25/25 ............ 9,836 9,329
American Express Credit
Account Master Trust
6.821% 03/15/05 ............ 62,000 62,155
American Express Master Trust
6.771% 08/15/04 ............ 719,000 720,344(i)
Citibank Credit Card Master Trust I
5.75% 01/15/03 ............ 19,000 18,940
Discover Card Master Trust I
Series 1999-3
6.731% 09/15/04 ............ 1,025,000 1,025,318(i)
Ford Credit Auto Loan Master Trust
5.50% 02/15/03 ............ 47,000 46,775
Green Tree Financial Corp.
Series 1993-1
6.90% 04/15/18 ............ 44,335 43,919
6.97% 04/01/31 ............ 88,000 87,340
LB Commercial Conduit
Mortgage Trust
6.78% 04/15/09 ............ 1,300,000 1,271,969
MBNA Master Credit Card Trust
6.746% 06/15/04 ............ 1,200,000 1,201,500
6.851% 04/15/05 ............ 207,000 207,710(i)
Provident Bank Home Equity
Loan Trust
6.72% 01/25/13 ............ 51,904 51,353
----------
See Notes to Schedules of Investments and Financial Statements.
90
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Providian Gateway Master Trust
6.84% 03/15/07 ............ $600,000 $ 600,000
West Penn Funding LLC
6.81% 09/25/08 ............ 63,000 62,813
Yorkshire Power Pass-Through
Asset Trust
8.25% 02/15/05 ............ 100,000 103,567(b)
TOTAL ASSET BACKED
(COST $5,493,837) ............ 5,513,032
CORPORATE NOTES -- 9.1%
Abbey National Capital Trust I
8.963% 12/29/49 ............ 130,000 130,313(i)
Abbey National PLC
6.70% 06/29/49 ............ 55,000 49,782
7.35% 10/29/49 ............ 42,000 39,969(i)
Abitibi-Consolidated Inc.
8.30% 08/01/05 ............ 60,000 61,460
AES Drax Holdings Ltd.
10.41% 12/31/20 ............ 100,000 104,950(b)
Aetna Services Inc.
6.97% 08/15/36 ............ 140,000 139,024
AFLAC Inc.
6.50% 04/15/09 ............ 145,000 134,677
Ahold Finance USA Inc.
8.25% 07/15/10 ............ 145,000 145,929
AIG SunAmerica GBL Fin II
7.60% 06/15/05 ............ 250,000 256,820(b)
Allstate Corp.
7.20% 12/01/09 ............ 85,000 83,668
Amerada Hess Corp.
7.875% 10/01/29 ............ 125,000 124,687
American Airlines Inc.
9.71% 01/02/07 ............ 136,172 145,752
6.855% 04/15/09 ............ 79,530 78,438
10.18% 01/02/13 ............ 45,000 49,872
Armstrong World Industries Inc.
7.45% 05/15/29 ............ 85,000 46,153
Arvin Industries Inc.
7.125% 03/15/09 ............ 60,000 53,272
Associates Corp. of North America
6.375% 10/15/02 ............ 200,000 198,406
5.75% 11/01/03 ............ 55,000 53,326
Bank One Corp.
6.40% 08/01/02 ............ 195,000 193,692
Barclays Bank PLC
8.55% 09/29/49 ............ 155,000 155,713(b)
BCI US Funding Trust I
8.01% 12/29/49 ............ 100,000 93,084(b,i)
Beckman Instruments Inc.
7.10% 03/04/03 ............ 50,000 48,501
Bellsouth Capital Funding
7.875% 02/15/30 ............ 150,000 154,732
Bellsouth Telecomm Inc.
6.375% 06/01/28 ............ 75,000 64,367
Boeing Capital Corp.
7.10% 09/27/05 ............ 195,000 196,178
Boston University
7.625% 07/15/97 ............ 200,000 182,384
Brascan Ltd.
7.375% 10/01/02 ............ 30,000 29,416
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Bristol-Myers Squibb Co.
6.875% 08/01/97 ............ $ 50,000 $ 46,032
CIT Group Inc.
7.125% 10/15/04 ............ 120,000 119,525
Citigroup Inc.
7.45% 06/06/02 ............ 155,000 156,806
Clear Channel Communications Inc.
7.25% 09/15/03 ............ 130,000 130,239
7.875% 06/15/05 ............ 105,000 107,124
Coastal Corp.
7.75% 06/15/10 ............ 160,000 162,309
ConAgra Foods Inc.
7.50% 09/15/05 ............ 95,000 95,661
Conseco Inc.
8.70% 11/15/26 ............ 20,000 8,600
Corporacion Andina de Fomento
6.75% 03/15/05 ............ 130,000 125,833
CSC Holdings Inc.
8.125% 07/15/09 ............ 130,000 128,647
CSX Corp.
6.25% 10/15/08 ............ 240,000 217,495
DaimlerChrysler AG
7.40% 01/20/05 ............ 130,000 130,693
Delphi Automotive Systems Corp.
6.125% 05/01/04 ............ 85,000 81,122
Deutsche Telekom AG
7.75% 06/15/05 ............ 260,000 266,160
8.25% 06/15/30 ............ 355,000 364,680
Dominion Resources Inc.
7.60% 07/15/03 ............ 65,000 65,642
Dresdner Funding Trust I
8.151% 06/30/31 ............ 230,000 205,512(b)
Duke Capital Corp.
7.25% 10/01/04 ............ 190,000 191,307
Duke Energy Corp.
5.375% 01/01/09 ............ 150,000 131,964
Electronic Data Systems Corp.
6.85% 10/15/04 ............ 50,000 49,646
Empresa Nacional De Electricidad
8.125% 02/01/97 ............ 65,000 52,543
Enron Corp.
8.00% 08/15/05 ............ 170,000 172,891(b)
EOP Operating LP
6.50% 01/15/04 ............ 150,000 145,872
ERAC USA Finance Co.
8.25% 05/01/05 ............ 225,000 229,783(b)
Federated Department Stores Inc.
8.50% 06/01/10 ............ 75,000 74,789
First Union Corp.
7.55% 08/18/05 ............ 130,000 131,577
Ford Motor Co.
7.375% 10/28/09 ............ 240,000 234,485
7.45% 07/16/31 ............ 200,000 184,948
Ford Motor Credit Co.
7.50% 06/15/03 ............ 90,000 90,892
7.60% 08/01/05 ............ 255,000 257,644
7.875% 06/15/10 ............ 385,000 388,985
FPL Group Capital Inc.
7.375% 06/01/09 ............ 480,000 473,136
General Motors Acceptance Corp.
5.75% 11/10/03 ............ 50,000 48,253
6.125% 01/22/08 ............ 85,000 77,798
----------
See Notes to Schedules of Investments and Financial Statements.
91
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Georgia-Pacific Group
9.95% 06/15/02 ............ $ 50,000 $ 51,887
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 ............ 50,000 6,500(b,l)
Hanson PLC
7.875% 09/27/10 ............ 155,000 153,534
Heritage Media Corp.
8.75% 02/15/06 ............ 90,000 89,325
Honeywell International Inc.
6.875% 10/03/05 ............ 190,000 188,970
Household Finance Corp.
6.125% 07/15/12 ............ 40,000 39,420(i)
HSBC Capital Funding LP
9.547% 06/30/10 ............ 100,000 105,886(b)
10.176% 06/30/30 ............ 150,000 165,354(b)
Hydro-Quebec
8.25% 04/15/26 ............ 50,000 53,809
International Paper Co.
8.00% 07/08/03 ............ 130,000 132,605(b)
8.125% 07/08/05 ............ 100,000 103,292(b)
Israel Electric Corp. Ltd.
8.10% 12/15/96 ............ 25,000 21,396(b)
7.125% 07/15/05 ............ 50,000 49,056(b)
J.P. Morgan & Co.
6.00% 01/15/09 ............ 200,000 183,654
Koninklijke (Royal) KPN NV
7.50% 10/01/05 ............ 95,000 95,314(b)
Kroger Co.
7.375% 03/01/05 ............ 150,000 147,895
LCI International Inc.
7.25% 06/15/07 ............ 129,000 126,505
Lehman Brothers Holdings Inc.
7.75% 01/15/05 ............ 195,000 198,913
8.25% 06/15/07 ............ 130,000 134,615
7.50% 08/01/26 ............ 115,000 116,309
Lenfest Communications Inc.
8.375% 11/01/05 ............ 95,000 99,514
Liberty Property Ltd. Partnership
7.50% 01/15/18 ............ 70,000 60,402
Lockheed Martin Corp.
7.95% 12/01/05 ............ 130,000 133,170
8.20% 12/01/09 ............ 165,000 171,823
Lumbermens Mutual Casualty
8.30% 12/01/37 ............ 20,000 15,954(b)
Marconi Corp. PLC
8.375% 09/15/30 ............ 395,000 391,046
Meditrust
7.114% 08/15/04 ............ 100,000 54,750
Merita Bank Ltd.
7.15% 12/29/49 ............ 250,000 246,900(b,i)
Merrill Lynch & Co.
5.71% 01/15/02 ............ 100,000 98,514
MidAmerican Energy Co.
7.375% 08/01/02 ............ 130,000 130,342
Midwest Generation LLC
8.56% 01/02/16 ............ 200,000 196,334(b)
Monumental Global Funding II
6.95% 10/01/03 ............ 250,000 249,882(b)
Morgan Stanley, Dean Witter & Co.
7.125% 01/15/03 ............ 185,000 185,866
5.625% 01/20/04 ............ 160,000 153,966
8.00% 06/15/10 ............ 215,000 224,245
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Nabisco Inc.
6.125% 02/01/33 ............ $ 70,000 $ 67,122
National Rural Utilities Cooperative
6.046% 04/15/03 ............ 100,000 98,468
NB Capital Trust IV
8.25% 04/15/27 ............ 195,000 183,721
News America Holdings Inc.
7.625% 11/30/28 ............ 110,000 98,704
Noram Energy Corp.
6.375% 11/01/03 ............ 70,000 68,545(i)
Northrop-Grumman Corp.
8.625% 10/15/04 ............ 65,000 67,754
Occidental Petroleum Corp.
7.375% 11/15/08 ............ 65,000 64,230
8.45% 02/15/29 ............ 100,000 104,688
Ontario Province of Canada
7.375% 01/27/03 ............ 150,000 151,986
Osprey Trust/Osprey I
7.797% 01/15/03 ............ 160,000 160,000(b)
Pactiv Corp.
8.375% 04/15/27 ............ 125,000 112,923
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 ............ 150,000 142,983(b)
Petroleos Mexicanos
9.50% 09/15/27 ............ 180,000 185,850
Pharmacia Corp.
5.75% 12/01/05 ............ 65,000 61,921
Philip Morris Cos. Inc.
7.20% 02/01/07 ............ 30,000 28,822
Phillips Petroleum Co.
8.50% 05/25/05 ............ 65,000 68,709
9.375% 02/15/11 ............ 195,000 220,697
PP&L Capital Funding Inc.
7.75% 04/15/05 ............ 125,000 123,362
Procter & Gamble Co.
9.36% 01/01/21 ............ 110,000 125,415
Quebec Province of Canada
7.50% 09/15/29 ............ 90,000 89,900
Qwest Corp.
7.625% 06/09/03 ............ 435,000 440,303(b)
5.625% 11/15/08 ............ 95,000 84,040
Raytheon Co.
7.90% 03/01/03 ............ 140,000 141,127(b)
6.75% 08/15/07 ............ 150,000 142,104
Royal & Sun Alliance Insurance
Group PLC
8.95% 10/15/29 ............ 115,000 114,299(b)
Royal Bank of Scotland Group PLC
8.817% 03/31/49 ............ 100,000 104,289
9.118% 03/31/49 ............ 35,000 36,749
Sprint Capital Corp.
5.70% 11/15/03 ............ 60,000 57,381
Stop & Shop Cos. Inc.
9.75% 02/01/02 ............ 40,000 41,285
SunAmerica Inc.
5.60% 07/31/97 ............ 150,000 106,106
Suntrust Bank Inc.
6.00% 01/15/28 ............ 30,000 27,634
Tele-Communications Inc.
9.80% 02/01/12 ............ 125,000 142,525
Telefonica Europe BV
7.35% 09/15/05 ............ 195,000 195,762
Texas Utilities Co.
5.94% 10/15/01 ............ 100,000 98,867(i)
----------
See Notes to Schedules of Investments and Financial Statements.
92
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Textron Inc.
6.375% 07/15/04 .............. $140,000 $ 136,163
The Walt Disney Co.
5.62% 12/01/08 .............. 80,000 72,345
Time Warner Inc.
7.57% 02/01/24 .............. 285,000 267,339
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 .............. 250,000 246,622(b)
Tosco Corp.
7.625% 05/15/06 .............. 50,000 50,751
TRW Inc.
6.625% 06/01/04 .............. 110,000 106,110
Turner Broadcasting Systems Inc.
8.375% 07/01/13 .............. 90,000 93,370
TXU Eastern Funding Co.
6.45% 05/15/05 .............. 165,000 156,092
Tyco International Group S.A.
6.875% 09/05/02 .............. 250,000 248,957
6.25% 06/15/03 .............. 35,000 34,094(i)
7.00% 06/15/28 .............. 305,000 267,967
Union Carbide Corp.
6.79% 06/01/25 .............. 200,000 197,434
Union Oil Co.
7.35% 06/15/09 .............. 100,000 99,157
Union Pacific Co. (Series A)
8.02% 07/02/12 .............. 147,258 148,512
United Air Lines Inc.
7.73% 07/01/10 .............. 50,000 50,438
9.56% 10/19/18 .............. 65,000 65,768
United Illuminating Co.
6.25% 12/15/02 .............. 25,000 24,387
US Airways Pass-Through Trust
8.36% 07/20/20 .............. 164,706 169,834
USA Networks Inc.
6.75% 11/15/05 .............. 80,000 77,805
Visteon Corp.
7.95% 08/01/05 .............. 30,000 30,288
Vodafone AirTouch PLC
7.625% 02/15/05 .............. 180,000 182,549(b)
Wal-Mart Stores Inc.
6.875% 08/10/09 .............. 265,000 262,793
Williams Cos. Inc.
6.125% 02/15/12 .............. 120,000 118,366
WorldCom Inc.
6.40% 08/15/05 .............. 85,000 82,769
8.875% 01/15/06 .............. 100,000 103,009
Yale University
7.375% 04/15/96 .............. 45,000 43,044
TOTAL CORPORATE NOTES
(COST $20,587,810) ............. 20,234,339
NON-AGENCY MORTGAGE BACKED SECURITIES -- 0.5%
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 .............. 83,000 79,286
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 .............. 183,000 172,638
First Union Lehman Brothers -
Bank of America
6.28% 06/18/07 .............. 280,671 274,923
6.56% 11/18/08 .............. 350,000 340,214
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
GS Mortgage Securities Corp.
(Class A)
6.86% 07/13/30 .............. $117,000 $ 116,144(g)
Mid State Trust
7.54% 07/01/35 .............. 22,937 21,324(f)
Nationslink Funding Corp.
6.001% 11/20/07 .............. 63,706 61,676
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $1,103,612) .............. 1,066,205
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.2%
Bear Stearns Commercial
Mortgage Securities
7.11% 09/15/09 .............. 386,000 386,802
Countrywide Home Loans
7.50% 09/25/27 .............. 250,000 244,920(f)
8.00% 07/25/30 .............. 179,000 182,935
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 .............. 74,000 70,407
Headlands Mortgage Securities
Inc. (Class A)
6.65% 02/25/29 .............. 184,016 176,195
J.P. Morgan Commercial
Mortgage Finance Corp.
7.11% 08/15/32 .............. 69,000 69,000
LB Commercial Conduit
Mortgage Trust
7.105% 07/15/08 .............. 241,927 243,769
Lehman Large Loan
6.79% 06/12/04 .............. 68,776 68,757
Merrill Lynch Mortgage
Investors Inc.
6.50% 05/01/30 .............. 74,000 66,783
Morgan Stanley Capital I
6.86% 05/15/06 .............. 93,191 92,949(b)
6.52% 01/15/08 .............. 25,000 24,174
6.54% 05/15/08 .............. 142,000 138,091
6.21% 09/15/08 .............. 32,000 30,407
6.76% 11/15/08 .............. 72,506 71,940
7.11% 07/15/09 .............. 93,000 92,913
Norwest Integrated Structured
Assets Inc. (Class A)
7.50% 03/25/30 .............. 121,656 121,427
Residential Accredit Loans Inc.
7.75% 04/25/30 .............. 140,000 139,209
Residential Asset Securitization Trust
1.078% 08/25/30 .............. 915,699 27,379(d,g)
Residential Funding Mortgage
Securities I (Class A)
6.50% 07/25/14 .............. 144,373 140,494
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 .............. 91,620 81,089(i)
7.00% 07/25/24 .............. 123,114 111,953(f,i)
Structured Asset Securities Corp.
1.463% 02/25/28 .............. 368,644 19,815(d,g)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $2,618,471) .............. 2,601,408
TOTAL BONDS AND NOTES
(COST $78,606,177) ............. 78,286,335
------------
See Notes to Schedules of Investments and Financial Statements.
93
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
--------------------------------------------------------------------------------
CORPORATE PREFERRED -- 0.2%
Centaur Funding Corp.
(Series B), 9.08% .............. 405 $ 411,252(b)
INTERNATIONAL PREFERRED -- 0.2%
Fresenius Medical Care AG ......... 2,143 106,057
Henkel KGaA ....................... 4,887 295,023
Telecomunicacoes Brasileiras
S.A. ADR ....................... 827 65,436
466,516
TOTAL PREFERRED STOCK
(COST $894,780) ................ 877,768
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02 ....................... 27 2,052(a)
Publicis SA-CVG, 03/07/02 ......... 1,821 3,508(a)
TOTAL WARRANTS
(COST $0) ...................... 5,560
TOTAL INVESTMENTS IN SECURITIES
(COST $179,484,792) ............ 212,352,345
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.4%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $14,312,138) ............14,312,138 14,312,138
OTHER ASSETS AND LIABILITIES,
NET (1.8)% .................... (3,987,958)
------------
NET ASSETS-- 100% ................ $222,676,525
============
-----------
See Notes to Schedules of Investments and Financial Statements.
94
<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 9/30/00
One Five
Year Year
-------- --------
Number of
Funds in
peer group: 362 249
Peer group
average annual
total return: 5.43% 4.95%
Lipper categories
in peer group: MONEY MARKET
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[LINE GRAPH OMITTED]
PLOT POINTS FOLLOWS:
GE Money Market Fund 90 Day T-Bill
2/22/93 10,000.00 10000.00
10,028.72 10024.74
9/93 10,164.21 10176.55
10,307.06 10339.42
9/94 10,500.20 10562.06
10,778.38 10857.68
9/95 11,079.32 11160.37
11,369.71 11449.21
9/96 11,653.48 11743.11
11,944.97 12042.37
9/97 12,252.89 12350.52
12,570.34 12668.37
9/98 12,894.00 12977.69
13,193.90 13266.58
9/99 13,497.68 13579.08
13,860.47 13950.13
9/00 14,281.39 14367.04
AVERAGE ANNUAL
TOTAL RETURN
ONE FIVE SINCE
YEAR YEAR INCEPTION
------ ----- ----------
GE Money Market 5.81% 5.21% 4.80%
90 Day T-Bill 5.77% 5.18% 4.88%
FUND YIELD
--------------------------------------------------------------------------------
FUND IBC MONEY FUND
7 day current 6.13%+ 5.99%
7 day effective 6.31% 6.17%
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, 2000.
ROBERT MACDOUGALL LEADS A TEAM OF MANAGERS FOR THE GE MONEY MARKET FUND (PLEASE
REFER TO PAGE 60 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, 2000?
A. The 90-day U.S. Treasury Bill posted a total return of 5.77% compared to the
average return of 5.43% for the Lipper peer group of 362 Money Market funds.
Q. WHAT WERE THE PRIMARY DETERMINANTS OF FUND PERFORMANCE?
A. The Fund outperformed the 90-day U.S. Treasury Bill before and after fees
and expenses. It also outperformed the average return within its Lipper peer
group. The positive relative performance is attributable to favorable
duration management at the short end of the yield curve, taking advantage of
movements in rates around the Federal Reserve action.
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
95
<PAGE>
GE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2000
GE MONEY MARKET FUND
[PIE CHART OMITTED]
PLOT POINTS FOLLOWS:
COMMERCIAL PAPER 51.0%
YANKEE CERTIFICATES OF DEPOSITS 27.4%
U.S. GOVERNMENTS 20.5%
CASH & OTHER 1.0%
TIME DEPOSITS 0.1%
PRINCIPAL AMORTIZED
AMOUNT COST
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 99.0%
--------------------------------------------------------------------------------
U.S. GOVERNMENTS -- 20.5%
U.S. AGENCIES (D)
Federal Home Loan Bank
6.61% 11/01/00 ............ $8,000,000 $ 7,955,567
Federal Home Loan
Mortgage Corp.
6.35% 10/12/00 ............ 9,520,000 9,502,096
Federal National Mortgage Assoc.
6.63% 10/02/00 ............ 19,500,000 19,496,485
6.60% 10/26/00 ............ 9,350,000 9,308,509
6.50% 12/07/00 ............ 9,000,000 8,892,884
37,697,878
TOTAL U.S. GOVERNMENTS
(COST $55,155,541) ........... 55,155,541
COMMERCIAL PAPER -- 51.0%
Abbey National PLC
6.51% 10/24/00 ............ 10,000,000 9,958,408
Associates Corp. of North America
6.68% 10/02/00 ............ 11,000,000 10,997,959
Bank One NA
6.52% 10/05/00 ............ 2,000,000 2,000,000
6.68% 10/05/00 ............ 9,600,000 9,600,000
Barclays US Funding Corp.
6.50% 10/30/00 ............ 10,500,000 10,445,021
Citibank Capital Markets
6.55% 10/17/00 ............ 9,500,000 9,472,344
Credit Suisse
6.48% 11/13/00 ............ 10,550,000 10,468,343
Goldman Sachs Group LP
6.47% 10/16/00 ............ 9,900,000 9,873,311
Halifax Building Society
6.475% 11/20/00 ............ 10,120,000 10,028,990
Morgan (J.P.) & Co. Inc.
6.50% 10/10/00 ............ 11,500,000 11,481,313
Royal Bank of Canada
6.478% 11/10/00 ............ 10,310,000 10,235,791
PRINCIPAL AMORTIZED
AMOUNT COST
--------------------------------------------------------------------------------
UBS Finance Delaware Inc.
6.65% 10/02/00 ............$12,570,000 $ 12,567,678
Wachovia Bank
6.58% 11/16/00 ............ 10,100,000 10,100,000
Wells Fargo & Co.
6.505% 10/31/00 ............ 10,000,000 9,945,792
TOTAL COMMERCIAL PAPER
(COST $137,174,950) .......... 137,174,950
YANKEE CERTIFICATES OF DEPOSIT -- 27.4%
Bank of America
6.66% 10/23/00 ............ 12,500,000 12,500,000
Bank of Montreal
6.53% 10/03/00 ............ 10,500,000 10,500,000
Bayerische Hypotheken Bank
6.56% 11/22/00 ............ 10,280,000 10,280,000
Canadian Imperial Bank of
Commerce
6.55% 11/15/00 ............ 10,500,000 10,500,000
Deutsche Bank AG
6.62% 11/01/00 ............ 10,000,000 10,000,000
Dresdner Bank AG
6.59% 11/07/00 ............ 10,000,000 10,000,000
Societe Generale
6.64% 10/06/00 ............ 9,750,000 9,750,000
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(COST $73,530,000) ........... 73,530,000
TIME DEPOSIT -- 0.1%
State Street Cayman Islands
6.563% 10/02/00
(COST $214,529) .............. 214,529 214,529
TOTAL SHORT-TERM INVESTMENTS
(COST $266,075,020) .......... 266,075,020
OTHER ASSETS AND LIABILITIES,
NET 1.0% ..................... 2,810,846
------------
NET ASSETS-- 100% ............... $268,885,866
============
----------
See Notes to Schedules of Investments and Financial Statements.
96
<PAGE>
NOTES TO PERFORMANCE SEPTEMBER 30, 2000 (UNAUDITED)
Information on the preceding 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 distributions, 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 years ended September 30, 2000, 1999 and 1998,
respectively, 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,
2000.
Shares of the GE Funds 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 Asset Management Incorporated ("GEAM") has agreed in writing to limit "Other
Expenses" of each class of certain funds on an annualized basis through January
28, 2001. 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
MidCap 400 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 Russell 1000 Value Index (Russell 1000), the Lehman Brothers
Aggregate Bond Index (LB Aggregate), the Lehman Brothers Government Bond Index
(LB Gov't), the Lehman Brothers 1-3 Year Government Bond Index (LB 1-3), the
Lehman Brothers 10-Year Municipal Index (LBMI) and the Credit Suisse First
Boston High Yield Index (CS First Boston 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 2000 smallest
companies in the Russell 3000 Index, which represents approximately 8% of the
total market capitalization of the Russell 3000 Index. The Russell 1000 measures
the performance of the 1000 largest companies in the Russell 3000 Index, which
represents approximately 92% of the total market capitalization of the Russell
3000 Index. The Russell 3000 Index 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 the Far East. MSCI Europe is a composite of
securities traded in 15 developed markets in Europe. MSCI EMF is a composite of
securities available to non-domestic investors traded in 25 emerging markets. LB
Aggregate is a composite of short-, medium-, and long-term bond performance and
is widely recognized as a 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 CS First Boston 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 GE High Yield Fund changed its benchmark during the fiscal year-ended
September 30, 2000 from the Salomon Smith Barney High Yield Market Index, which
is an index comprised of below investment-grade corporate bonds issued in the
United States, to the CS First Boston High Yield.
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, 2000 and therefore
are calculated from the month end nearest to the Funds' commencement of
operations 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.
Standard & Poor's, S&P, S&P 500 and S&P MidCap 400 are trademarks of The
McGraw-Hill Companies, Inc. and have been licensed for use. The GE S&P 500 Index
Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's, and
Standard & Poor's makes no representation or warranty, express or implied, to
the investors of the Fund or any member of the public regarding the advisability
of investing in the securities generally or in this Fund particularly or the
ability of the GE S&P 500 Index Fund to track general stock market performance.
+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 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 Financial Statements. Had the distribution and service fees not been
reduced, the Class A performance results would have been lower.
97
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS SEPTEMBER 30, 2000
(a) Non-income producing security.
(b) Pursuant to Rule 144A of the Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At September 30, 2000, these securities amounted to
$124,225; $187,713; $1,233,298; $7,693,064; $2,000,000; $2,726,185;
$3,214,297; and $4,739,120 or 0.15%, 0.23%, 4.51%, 4.74%, 0.84%, 3.79%,
10.04%, and 2.13% of net assets for the GE Global Equity, GE International
Equity, GE Emerging Markets, GE Fixed Income, GE Government Securities, GE
Short-Term Government, GE High Yield and GE Strategic Investment 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 and sub-advisor.
(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, 2000, all or a portion of this security was pledged to
cover collateral requirements for futures, options, forward foreign currency
contracts and/or TBA's.
(i) Variable or floating rate security. The stated rate represents the rate at
September 30, 2000.
(j) All or a portion of security out on loan.
(k) At September 30, 2000, GEAM 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.
(l) At September 30, 2000, the security is in default. GEAM 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.
(m) Escrowed to maturity. Bonds 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.
(n) Prerefunded. Bonds 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.
(o) 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, 2000 (as a
percentage of net assets) as follows:
MBIA 13%
AMBAC 6%
(p) Investments of cash collateral for securities on loan.
(q) Treasury Inflation Protected Security. Principal amount has been adjusted
for inflation.
[diamond] Denominated in USD unless otherwise indicated.
ABBREVIATIONS:
ADR -- American Depositary Receipt
AMBAC -- AMBAC Indemnity Corporation
DEM -- German Deutschemark
EUR -- Euro
FDR -- Finnish Depositary Receipt
FGIC -- Financial Guaranty Insurance Corporation
GBP -- British Pound
GDR -- Global Depositary Receipt
G.O. -- General Obligation
MBIA -- Municipal Bond Investors Assurance
Corporation
Regd. -- Registered
REMIC -- Real Estate Mortgage Investment Conduit
STRIPS -- Separate Trading of Registered Interest
and Principal of Security
USD -- United States Dollar
98
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE U.S. EQUITY FUND
----------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCEPTION DATE -- -- -- -- 1/5/93
Net asset value, beginning of period ...... $32.53 $27.82 $29.00 $23.02 $19.98
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ 0.15 0.18 0.27 0.30 0.36
Net realized and unrealized
gains (losses) on investments .......... 3.63 7.26 1.22 8.19 3.30
----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .............................. 3.78 7.44 1.49 8.49 3.66
----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.14 0.23 0.24 0.32 0.35
Net realized gains ...................... 3.72 2.50 2.43 2.19 0.27
----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 3.86 2.73 2.67 2.51 0.62
----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $32.45 $32.53 $27.82 $29.00 $23.02
----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .......................... 12.10% 27.79% 5.62% 39.76% 18.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $385,111 $311,958 $124,714 $97,886 $50,035
Ratios to average net assets:
Net investment income (loss)* .......... 0.46% 0.56% 0.92% 1.18% 1.66%
Net expenses* .......................... 0.83% 0.81% 0.75% 0.75% 0.75%
Gross expenses* ........................ 0.83% 0.83% 0.84% 0.93% 1.06%
Portfolio turnover rate ................. 48% 46% 29% 38% 49%
----------------------------------------------------------------------------------------------
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
Net asset value, beginning of period ...... $31.58 $27.11 $28.35 $22.57 $19.71
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ (0.09) (0.06) 0.05 0.11 0.19
Net realized and unrealized
gains (losses) on investments .......... 3.53 7.08 1.20 8.03 3.25
----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .............................. 3.44 7.02 1.25 8.14 3.44
----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... -- 0.05 0.06 0.17 0.31
Net realized gains ...................... 3.72 2.50 2.43 2.19 0.27
----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 3.72 2.55 2.49 2.36 0.58
----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............ $31.30 $31.58 $27.11 $28.35 $22.57
----------------------------------------------------------------------------------------------
TOTAL RETURN (A) .......................... 11.29% 26.83% 4.80% 38.75% 17.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $46,577 $36,921 $21,407 $14,380 $7,194
Ratios to average net assets:
Net investment income (loss)* .......... (0.29%) (0.19%) 0.17% 0.44% 0.90%
Net expenses* .......................... 1.58% 1.56% 1.50% 1.50% 1.50%
Gross expenses* ........................ 1.58% 1.58% 1.63% 1.88% 2.08%
Portfolio turnover rate ................. 48% 46% 29% 38% 49%
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCEPTION DATE 9/30/99 -- -- -- -- 11/29/93
Net asset value, beginning of period ......$31.58 $32.48 $27.78 $28.99 $23.03 $19.98
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ (0.10) 0.23 0.26 0.34 0.37 0.40
Net realized and unrealized
gains (losses) on investments .......... 3.53 3.62 7.25 1.21 8.19 3.31
------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .............................. 3.43 3.85 7.51 1.55 8.56 3.71
------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... 0.21 0.23 0.31 0.33 0.41 0.39
Net realized gains ...................... 3.72 3.72 2.50 2.43 2.19 0.27
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 3.93 3.95 2.81 2.76 2.60 0.66
------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............$31.08 $32.38 $32.48 $27.78 $28.99 $23.03
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ..........................11.25% 12.38% 28.14% 5.86% 40.16% 18.97%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,811 $377,913 $358,583 $281,071 $212,957 $144,470
Ratios to average net assets:
Net investment income (loss)* ..........(0.32%) 0.71% 0.81% 1.16% 1.45% 1.90%
Net expenses* .......................... 1.57% 0.58% 0.56% 0.50% 0.50% 0.50%
Gross expenses* ........................ 1.57% 0.58% 0.58% 0.56% 0.52% 0.59%
Portfolio turnover rate ................. 48% 48% 46% 29% 38% 49%
</TABLE>
-----------
See Notes to Financial Highlights and Notes to Financial Statements.
99
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE VALUE EQUITY FUND
---------------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96
---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......$12.18 $9.93 $13.58 $10.83 $8.95
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ 0.05 0.02 0.05 0.07 0.05
Net realized and unrealized
gains (losses) on investments .......... 1.31 2.66 0.46 3.59 1.99
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 1.36 2.68 0.51 3.66 2.04
---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................... -- 0.03 -- 0.04 0.09
Net realized gains ...................... 0.78 0.40 4.16 0.87 0.07
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................... 0.78 0.43 4.16 0.91 0.16
---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............$12.76 $12.18 $9.93 $13.58 $10.83
---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ..........................11.35% 27.34% 5.86% 36.18% 23.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$43,283 $29,607 $14,276 $8,236 $5,833
Ratios to average net assets:
Net investment income (loss)* ......... 0.38% 0.18% 0.50% 0.63% 1.03%
Net expenses* ......................... 1.05% 1.29% 1.31% 1.30% 1.35%
Gross expenses* ....................... 1.05% 1.30% 1.33% 1.33% 1.73%
Portfolio turnover rate ................. 49% 31% 40% 131% 100%
---------------------------------------------------------------------------------------------------
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96
-----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
Net asset value, beginning of period ....$11.94 $9.77 $13.48 $10.79 $8.93
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... (0.04) (0.04) -- (0.01) 0.04
Net realized and unrealized
gains (losses) on investments ........ 1.27 2.61 0.45 3.57 1.93
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................ 1.23 2.57 0.45 3.56 1.97
-----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. -- -- -- -- 0.04
Net realized gains .................... 0.78 0.40 4.16 0.87 0.07
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... 0.78 0.40 4.16 0.87 0.11
-----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ..........$12.39 $11.94 $9.77 $13.48 $10.79
-----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................10.44% 26.67% 5.32% 35.23% 22.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................$45,675 $51,369 $44,655 $46,035 $33,318
Ratios to average net assets:
Net investment income (loss)* .......(0.36%) (0.32%) 0.00% (0.12%) 0.23%
Net expenses* ....................... 1.80% 1.81% 1.81% 2.05% 2.10%
Gross expenses* ..................... 1.80% 1.82% 1.81% 2.07% 2.40%
Portfolio turnover rate ............... 49% 31% 40% 131% 100%
-----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B,H)
------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- 1/5/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........ $11.94 $12.74 $10.38 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .............. (0.05) 0.08 0.08 0.08
Net realized and unrealized
gains (losses) on investments ............ 1.29 1.37 2.76 0.30
------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ..................... 1.24 1.45 2.84 0.38
------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ..................... -- -- 0.08 --
Net realized gains ........................ 0.78 0.78 0.40 --
------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ......................... 0.78 0.78 0.48 --
------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .............. $12.40 $13.41 $12.74 $10.38
------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................ 10.53% 11.56% 27.85% 3.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .. $847 $3,769 $2,292 $1,580
Ratios to average net assets:
Net investment income (loss)* ........... (0.41%) 0.61% 0.68% 0.98%
Net expenses* ........................... 1.80% 0.80% 0.81% 0.81%
Gross expenses* ......................... 1.80% 0.80% 0.82% 0.81%
Portfolio turnover rate ................... 49% 49% 31% 40%
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
100
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE MID-CAP GROWTH FUND
---------------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96
---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $9.42 $8.27 $17.61 $13.16 $11.38
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.01 (0.04) (0.04) (0.07) --
Net realized and unrealized
gains (losses) on investments ........ 3.14 1.19 (1.86) 4.52 1.78
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 3.15 1.15 (1.90) 4.45 1.78
---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- -- --
Net realized gains ..................... -- -- 7.37 -- --
Return of capital ...................... -- -- 0.07 -- --
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... -- -- 7.44 -- --
---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $12.57 $9.42 $8.27 $17.61 $13.16
---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 33.44% 13.91% (16.11%) 33.81% 15.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$23,942 $15,943 $10,134 $10,885 $8,222
Ratios to average net assets:
Net investment income (loss)* ......... 0.12% (0.41%) (0.35%) (0.51%) 0.03%
Net expenses* ......................... 1.15% 1.38% 1.40% 1.31% 1.35%
Gross expenses* ....................... 1.25% 1.46% 1.45% 1.46% 1.70%
Portfolio turnover rate ................ 47% 48% 13% 139% 41%
---------------------------------------------------------------------------------------------------
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96
--------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
Net asset value, beginning of period ..... $8.84 $7.80 $17.11 $12.87 $11.21
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.07) (0.08) (0.08) (0.18) (0.09)
Net realized and unrealized
gains (losses) on investments ........ 2.94 1.12 (1.79) 4.42 1.75
--------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 2.87 1.04 (1.87) 4.24 1.66
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- -- --
Net realized gains ..................... -- -- 7.40 -- --
Return of capital ...................... -- -- 0.04 -- --
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... -- -- 7.44 -- --
--------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.71 $8.84 $7.80 $17.11 $12.87
--------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 32.47% 13.33% (16.62%) 33.02% 14.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$16,908 $18,073 $22,038 $32,280 $27,616
Ratios to average net assets:
Net investment income (loss)* ......... (0.65%) (0.91%) (0.86%) (1.26%) (0.73%)
Net expenses* ......................... 1.90% 1.90% 1.90% 2.06% 2.10%
Gross expenses* ....................... 2.00% 1.97% 1.93% 2.21% 2.41%
Portfolio turnover rate ................ 47% 48% 13% 139% 41%
--------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B,H)
-------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- 1/5/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........ $8.84 $9.98 $8.71 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .............. (0.07) 0.03 0.01 0.01
Net realized and unrealized
gains (losses) on investments ............ 2.94 3.34 1.26 (1.30)
-------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................... 2.87 3.37 1.27 (1.29)
-------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ..................... -- -- -- --
Net realized gains ........................ -- -- -- --
Return of capital ......................... -- -- -- --
-------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ......................... -- -- -- --
-------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ..............$11.71 $13.35 $9.98 $8.71
-------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................32.47% 33.77% 14.58% (12.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .. $186 $14 $783 $471
Ratios to average net assets:
Net investment income (loss)* ...........(0.60%) 0.26% 0.09% 0.21%
Net expenses* ........................... 1.90% 0.90% 0.90% 0.89%
Gross expenses* ......................... 2.00% 1.01% 0.97% 0.89%
Portfolio turnover rate ................... 47% 47% 48% 13%
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
101
<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
9/30/00(B) 9/30/99(B,C,I) 9/30/00(B) 9/30/99(B,I)
-------------------------------------------------------------------------------------------------
INCEPTION DATE -- 12/31/98 -- 12/31/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............. $9.83 $10.00 $9.77 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... 0.06 0.04 (0.02) (0.02)
Net realized and unrealized
gains (losses) on investments ................ 0.78 (0.21) 0.77 (0.21)
-------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 0.84 (0.17) 0.75 (0.23)
-------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... 0.07 -- 0.02 --
Net realized gains ............................. -- -- -- --
-------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.07 -- 0.02 --
-------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $10.60 $9.83 $10.50 $9.77
-------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 8.55% (1.70%) 7.69% (2.30%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $1,911 $708 $298 $177
Ratios to average net assets:
Net investment income (loss)* ................. 0.54% 0.47% (0.19%) (0.21%)
Net expenses* ................................. 1.23% 1.15% 1.98% 1.90%
Gross expenses* ............................... 1.34% 1.54% 2.09% 2.38%
Portfolio turnover rate ........................ 35% 17% 35% 17%
-------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B,I)
--------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- 12/31/98
Net asset value, beginning of period ............. $9.77 $9.84 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... (0.02) 0.08 0.06
Net realized and unrealized
gains (losses) on investments ................ 0.77 0.78 (0.22)
--------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 0.75 0.86 (0.16)
--------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... 0.08 0.09 --
Net realized gains ............................. -- -- --
--------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 0.08 0.09 --
--------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $10.44 $10.61 $9.84
--------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 7.69% 8.72% (1.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $590 $10,990 $10,103
Ratios to average net assets:
Net investment income (loss)* ................. (0.23%) 0.81% 0.79%
Net expenses* ................................. 1.99% 0.97% 0.90%
Gross expenses* ............................... 2.09% 1.09% 1.36%
Portfolio turnover rate ........................ 35% 35% 17%
--------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE SMALL-CAP VALUE EQUITY FUND
------------------------------------------------------------------------------------------------
CLASS A CLASS B
9/30/00(B) 9/30/99(B,C) 9/30/00(B) 9/30/99(B)
------------------------------------------------------------------------------------------------
INCEPTION DATE -- 9/30/98 -- 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............. $12.16 $10.00 $12.09 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... 0.00(g) (0.02) (0.10) (0.06)
Net realized and unrealized
gains (losses) on investments ................ 3.10 2.24 3.08 2.19
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 3.10 2.22 2.98 2.13
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... -- 0.03 -- 0.01
Net realized gains ............................. 1.66 0.03 1.66 0.03
------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 1.66 0.06 1.66 0.04
------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $13.60 $12.16 $13.41 $12.09
------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 27.80% 22.28% 26.77% 21.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .......$29,228 $14,561 $11,853 $8,505
Ratios to average net assets:
Net investment income (loss)* ................. 0.02% (0.15%) (0.75%) (0.56%)
Net expenses* ................................. 1.10% 1.15% 1.85% 1.90%
Gross expenses* ............................... 1.11% 1.41% 1.86% 2.19%
Portfolio turnover rate ........................ 219% 182% 219% 182%
------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B)
-------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- 9/30/98
Net asset value, beginning of period ............. $12.09 $12.18 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................... (0.10) 0.05 0.05
Net realized and unrealized
gains (losses) on investments ................ 3.08 3.09 2.19
-------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ... 2.98 3.14 2.24
-------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .......................... -- -- 0.03
Net realized gains ............................. 1.66 1.66 0.03
-------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .............................. 1.66 1.66 0.06
-------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................... $13.41 $13.66 $12.18
-------------------------------------------------------------------------------------------
TOTAL RETURN (A) ................................. 26.77% 28.11% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ....... $159 $10,934 $293
Ratios to average net assets:
Net investment income (loss)* ................. (0.76%) 0.35% 0.41%
Net expenses* ................................. 1.85% 0.83% 0.90%
Gross expenses* ............................... 1.86% 0.83% 1.17%
Portfolio turnover rate ........................ 219% 219% 182%
-------------------------------------------------------------------------------------------
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
102
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE S&P 500 INDEX FUND
--------------------------------------------------------------------------------
CLASS A
9/30/00(B,F)
--------------------------------------------------------------------------------
INCEPTION DATE 4/28/00
Net asset value, beginning of period ...................... $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............................ 0.04
Net realized and unrealized
gains (losses) on investments ......................... (0.10)
--------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS ............ (0.06)
--------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................................... --
Net realized gains ...................................... --
--------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ....................................... --
--------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............................ $9.94
--------------------------------------------------------------------------------
TOTAL RETURN (A) .......................................... (0.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ................ $28,534
Ratios to average net assets:
Net investment income (loss)* .......................... 1.13%
Net expenses* .......................................... 0.45%
Gross expenses* ........................................ 1.06%
Portfolio turnover rate ................................. 6%
--------------------------------------------------------------------------------
---------
See Notes to Financial Highlights and Notes to Financial Statements.
103
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE GLOBAL EQUITY FUND
-------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
-------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $25.86 $19.72 $24.81 $22.18 $20.31
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.03 0.06 0.05 0.04 0.06
Net realized and unrealized
gains (losses) on investments ......... 3.61 7.05 (2.65) 3.94 2.22
-------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 3.64 7.11 (2.60) 3.98 2.28
-------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- 0.02 0.06 0.04
Net realized gains ..................... 2.32 0.97 2.47 1.29 0.37
-------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 2.32 0.97 2.49 1.35 0.41
-------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $27.18 $25.86 $19.72 $24.81 $22.18
-------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 14.45% 36.89% (10.86%) 18.82% 11.44%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $49,784 $39,245 $28,412 $35,120 $28,682
Ratios to average net assets:
Net investment income (loss)* ......... 0.11% 0.23% 0.22% 0.24% 0.33%
Net expenses* ......................... 1.31% 1.35% 1.34% 1.35% 1.35%
Gross expenses* ....................... 1.31% 1.37% 1.35% 1.45% 1.60%
Portfolio turnover rate ................ 77% 64% 71% 70% 46%
-------------------------------------------------------------------------------------------
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
Net asset value, beginning of period .....$24.92 $19.17 $24.32 $21.87 $20.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.16) (0.12) (0.11) (0.08) (0.04)
Net realized and unrealized
gains (losses) on investments ......... 3.46 6.84 (2.57) 3.82 2.14
-------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 3.30 6.72 (2.68) 3.74 2.10
-------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- -- --
Net realized gains ..................... 2.32 0.97 2.47 1.29 0.37
-------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 2.32 0.97 2.47 1.29 0.37
-------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ...........$25.90 $24.92 $19.17 $24.32 $21.87
-------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 13.56% 35.85% (11.44%) 17.92% 10.61%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $2,384 $1,477 $989 $877 $600
Ratios to average net assets:
Net investment income (loss)* ......... (0.60%) (0.51%) (0.48%) (0.52%) (0.34%)
Net expenses* ......................... 2.06% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ....................... 2.06% 2.12% 2.45% 3.33% 3.50%
Portfolio turnover rate ................ 77% 64% 71% 70% 46%
-------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $24.92 $25.84 $19.72 $24.83 $22.25 $20.37
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.13) 0.11 0.12 0.09 0.10 0.13
Net realized and unrealized
gains (losses) on investments ......... 3.43 3.59 7.04 (2.63) 3.94 2.21
-------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 3.30 3.70 7.16 (2.54) 4.04 2.34
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- 0.07 0.10 0.17 0.09
Net realized gains ..................... 2.32 2.32 0.97 2.47 1.29 0.37
-------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 2.32 2.32 1.04 2.57 1.46 0.46
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $25.90 $27.22 $25.84 $19.72 $24.83 $22.25
-------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 13.56% 14.75% 37.20% (10.59%) 19.14% 11.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $180 $30,956 $23,086 $15,039 $22,642 $10,123
Ratios to average net assets:
Net investment income (loss)* ......... (0.49%) 0.38% 0.50% 0.37% 0.48% 0.56%
Net expenses* ......................... 2.05% 1.06% 1.10% 1.07% 1.10% 1.10%
Gross expenses* ....................... 2.05% 1.06% 1.12% 1.07% 1.10% 1.12%
Portfolio turnover rate ................ 77% 77% 64% 71% 70% 46%
</TABLE>
------------
See Notes to Financial Highlights and Notes to Financial Statements.
104
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE INTERNATIONAL EQUITY FUND
---------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $18.33 $15.11 $20.36 $17.65 $15.88
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.07 0.05 0.09 0.05 0.11
Net realized and unrealized
gains (losses) on investments ......... 1.83 3.74 (1.60) 3.19 1.72
---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 1.90 3.79 (1.51) 3.24 1.83
---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- 0.03 0.06
Net realized gains ..................... 0.99 0.57 3.74 0.50 --
---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.99 0.57 3.74 0.53 0.06
---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $19.24 $18.33 $15.11 $20.36 $17.65
---------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 10.50% 25.48% (8.71%) 18.79% 11.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$40,282 $32,938 $6,114 $6,152 $3,230
Ratios to average net assets:
Net investment income (loss)* ......... 0.33% 0.29% 0.50% 0.45% 0.68%
Net expenses* ......................... 1.33% 1.35% 1.35% 1.35% 1.35%
Gross expenses* ....................... 1.33% 1.39% 1.42% 1.58% 1.96%
Portfolio turnover rate ................ 76% 51% 93% 51% 36%
---------------------------------------------------------------------------------------------
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
Net asset value, beginning of period ..... $17.66 $14.68 $20.02 $17.47 $15.77
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.08) (0.07) (0.05) (0.06) 0.05
Net realized and unrealized
gains (losses) on investments ......... 1.77 3.62 (1.55) 3.11 1.65
-------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 1.69 3.55 (1.60) 3.05 1.70
-------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- -- --
Net realized gains ..................... 0.99 0.57 3.74 0.50 --
-------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.99 0.57 3.74 0.50 --
-------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $18.36 $17.66 $14.68 $20.02 $17.47
-------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 9.68% 24.56% (9.39%) 17.86% 10.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $1,828 $1,488 $948 $455 $272
Ratios to average net assets:
Net investment income (loss)* ......... (0.39%) (0.40%) (0.26%) (0.30%) 0.28%
Net expenses* ......................... 2.08% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ....................... 2.08% 2.14% 2.59% 4.12% 3.50%
Portfolio turnover rate ................ 76% 51% 93% 51% 36%
-------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $17.66 $18.44 $15.18 $20.43 $17.76 $15.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.06) 0.16 0.11 0.01 0.13 0.17
Net realized and unrealized
gains (losses) on investments ......... 1.76 1.81 3.73 (1.46) 3.18 1.73
------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 1.70 1.97 3.84 (1.45) 3.31 1.90
------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- 0.01 0.06 0.14 0.08
Net realized gains ..................... 0.99 0.99 0.57 3.74 0.50 --
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.99 0.99 0.58 3.80 0.64 0.08
------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $18.37 $19.42 $18.44 $15.18 $20.43 $17.76
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 9.68% 10.77% 25.72% (8.34%) 19.16% 11.97%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $283 $38,241 $21,952 $15,367 $75,098 $63,225
Ratios to average net assets:
Net investment income (loss)* ......... (0.29%) 0.75% 0.60% 0.08% 0.76% 0.99%
Net expenses* ......................... 2.07% 1.08% 1.10% 1.04% 1.01% 1.03%
Gross expenses* ....................... 2.07% 1.08% 1.14% 1.06% 1.01% 1.03%
Portfolio turnover rate ................ 76% 76% 51% 93% 51% 36%
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
105
<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 C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/99(B,C) 9/30/00(B) 9/30/99(B) 9/30/00(B) 9/30/00(B) 9/30/99(B)
-----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 1/29/99 -- 1/29/99 9/30/99 -- 1/29/99
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $9.93 $10.00 $9.88 $10.00 $9.88 $9.94 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.05 0.06 (0.05) 0.02 (0.04) 0.06 0.09
Net realized and unrealized
gains (losses) on investments ........ 2.72 (0.13) 2.72 (0.14) 2.70 2.75 (0.15)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 2.77 (0.07) 2.67 (0.12) 2.66 2.81 (0.06)
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.07 -- 0.02 -- 0.06 0.08 --
Net realized gains ..................... -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.07 -- 0.02 -- 0.06 0.08 --
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $12.63 $9.93 $12.53 $9.88 $12.48 $12.67 $9.94
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 27.95% (0.70%) 27.01% (1.20%) 27.04% 28.39% (0.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,989 $669 $350 $144 $176 $12,970 $10,051
Ratios to average net assets:
Net investment income (loss)* ......... 0.39% 0.88% (0.38%) 0.24% (0.34%) 0.48% 1.36%
Net expenses* ......................... 1.47% 1.45% 2.21% 2.20% 2.22% 1.20% 1.20%
Gross expenses* ....................... 1.53% 1.91% 2.28% 2.69% 2.28% 1.29% 1.71%
Portfolio turnover rate ................ 89% 47% 89% 47% 89% 89% 47%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE EMERGING MARKETS FUND
------------------------------------------------------------------------------------------------
CLASS A CLASS B
9/30/00(B) 9/30/99(B,C) 9/30/00(B) 9/30/99(B)
------------------------------------------------------------------------------------------------
INCEPTION DATE -- 1/29/99 -- 1/29/99
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $13.47 $10.00 $13.40 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.08) (0.05) (0.21) (0.10)
Net realized and unrealized
gains (losses) on investments ........ 2.21 3.52 2.22 3.50
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 2.13 3.47 2.01 3.40
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- --
Net realized gains ..................... 1.09 -- 1.09 --
------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.09 -- 1.09 --
------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $14.51 $13.47 $14.32 $13.40
------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 15.27% 34.70% 14.41% 34.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $9,071 $900 $659 $225
Ratios to average net assets:
Net investment income (loss)* ......... (0.45%) (0.56%) (1.22%) (1.26%)
Net expenses* ......................... 1.53% 1.60% 2.28% 2.35%
Gross expenses* ....................... 1.59% 1.90% 2.34% 2.71%
Portfolio turnover rate ................ 57% 59% 57% 59%
CLASS C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B)
--------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- 1/29/99
Net asset value, beginning of period ..... $13.50 $13.49 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.21) (0.05) (0.01)
Net realized and unrealized
gains (losses) on investments ........ 2.12 2.22 3.50
--------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 1.91 2.17 3.49
--------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- --
Net realized gains ..................... 1.09 1.09 --
--------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.09 1.09 --
--------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $14.32 $14.57 $13.49
--------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 13.56% 15.56% 34.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $137 $17,466 $13,651
Ratios to average net assets:
Net investment income (loss)* ......... (1.24%) (0.27%) (0.18%)
Net expenses* ......................... 2.27% 1.27% 1.35%
Gross expenses* ....................... 2.35% 1.35% 1.74%
Portfolio turnover rate ................ 57% 57% 59%
</TABLE>
-----------
See Notes to Financial Highlights and Notes to Financial Statements.
106
<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
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97
------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- 12/31/96 -- -- -- 12/31/96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $27.50 $20.44 $18.35 $15.00 $27.00 $20.20 $18.25 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.07) (0.08) 0.03 -- (0.30) (0.27) (0.12) (0.09)
Net realized and unrealized
gains (losses) on investments ........ 5.10 7.83 2.38 3.35 5.00 7.73 2.36 3.34
------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 5.03 7.75 2.41 3.35 4.70 7.46 2.24 3.25
------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- 0.03 0.03 -- -- -- -- --
Net realized gains ..................... 1.15 0.66 0.29 -- 1.15 0.66 0.29 --
------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.15 0.69 0.32 -- 1.15 0.66 0.29 --
------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $31.38 $27.50 $20.44 $18.35 $30.55 $27.00 $20.20 $18.25
------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 18.61% 38.54% 13.35% 22.33% 17.70% 37.53% 12.47% 21.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ......................$128,255 $67,311 $15,044 $7,287 $41,795 $15,501 $2,076 $447
Ratios to average net assets:
Net investment income (loss)* ......... (0.24%) (0.29%) 0.17% (0.03%) (0.98%) (1.03%) (0.62%) (0.76%)
Net expenses* ......................... 1.01% 1.10% 1.12% 1.15% 1.75% 1.84% 1.90% 1.90%
Gross expenses* ....................... 1.01% 1.10% 1.16% 1.62% 1.75% 1.84% 2.27% 9.30%
Portfolio turnover rate ................ 22% 26% 35% 17% 22% 26% 35% 17%
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS C (LEVEL LOAD)
9/30/00(B)
----------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period ..... $27.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... (0.31)
Net realized and unrealized
gains (losses) on investments ........ 5.01
----------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 4.70
----------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. --
Net realized gains ..................... 1.15
----------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.15
----------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $30.55
----------------------------------------------------------
TOTAL RETURN (A) ......................... 17.66%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ...................... $3,134
Ratios to average net assets:
Net investment income (loss)* ......... (0.98%)
Net expenses* ......................... 1.75%
Gross expenses* ....................... 1.75%
Portfolio turnover rate ................ 22%
----------------------------------------------------------
<CAPTION>
CLASS Y(D)
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97
------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $27.60 $20.50 $18.38 $15.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.00(g) (0.01) 0.09 0.04
Net realized and unrealized
gains (losses) on investments ...... 5.13 7.84 2.37 3.34
------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 5.13 7.83 2.46 3.38
------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- 0.07 0.05 --
Net realized gains ..................... 1.15 0.66 0.29 --
------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.15 0.73 0.34 --
------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $31.58 $27.60 $20.50 $18.38
------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 18.87% 38.92% 13.65% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $33,089 $20,704 $7,580 $5,770
Ratios to average net assets:
Net investment income (loss)* ......... 0.01% (0.03%) 0.47% 0.31%
Net expenses* ......................... 0.76% 0.85% 0.88% 0.90%
Gross expenses* ....................... 0.76% 0.85% 0.89% 1.17%
Portfolio turnover rate ................ 22% 26% 35% 17%
</TABLE>
------------
See Notes to Financial Highlights and Notes to Financial Statements.
107
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE PREMIER RESEARCH EQUITY FUND
----------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y
9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F)
----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 4/28/00 4/28/00 4/28/00 4/28/00
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.00(g) (0.04) (0.03) 0.01
Net realized and unrealized
gains (losses) on investments ........ (0.10) (0.09) (0.10) (0.10)
----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.10) (0.13) (0.13) (0.09)
----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- --
Net realized gains ..................... -- -- -- --
----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... -- -- -- --
----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $9.90 $9.87 $9.87 $9.91
----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... (1.00%) (1.30%) (1.30%) (0.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $12,415 $255 $119 $99
Ratios to average net assets:
Net investment income (loss)* ......... 0.03% (0.81%) (0.71%) 0.31%
Net expenses* ......................... 1.20% 1.95% 1.95% 0.95%
Gross expenses* ....................... 2.33% 3.06% 3.08% 2.09%
Portfolio turnover rate ................ 39% 39% 39% 39%
----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GE PREMIER INTERNATIONAL EQUITY FUND
----------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y
9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F)
----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 4/28/00 4/28/00 4/28/00 4/28/00
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.05 0.02 0.02 0.06
Net realized and unrealized
gains (losses) on investments ........ (1.35) (1.35) (1.35) (1.35)
----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (1.30) (1.33) (1.33) (1.29)
----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- --
Net realized gains ..................... -- -- -- --
----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... -- -- -- --
----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.70 $8.67 $8.67 $8.71
----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... (13.00%) (13.30%) (13.30%) (12.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $10,339 $225 $87 $87
Ratios to average net assets:
Net investment income (loss)* ......... 1.26% 0.38% 0.54% 1.54%
Net expenses* ......................... 1.30% 2.05% 2.05% 1.05%
Gross expenses* ....................... 2.56% 3.29% 3.31% 2.31%
Portfolio turnover rate ................ 27% 27% 27% 27%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
------------
See Notes to Financial Highlights and Notes to Financial Statements.
108
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE PREMIER VALUE EQUITY FUND
----------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y
9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F) 9/30/00(B,F)
---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 4/28/00 4/28/00 4/28/00 4/28/00
<S> <C> <C> <C> <C>
Net asset value, beginning of period ..... $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.05 0.02 0.02 0.07
Net realized and unrealized
gains (losses) on investments ........ 1.03 1.03 1.03 1.02
---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 1.08 1.05 1.05 1.09
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. -- -- -- --
Net realized gains ..................... -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.08 $11.05 $11.05 $11.09
---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 10.80% 10.50% 10.50% 10.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $12,978 $227 $116 $111
Ratios to average net assets:
Net investment income (loss)* ......... 1.25% 0.46% 0.51% 1.52%
Net expenses* ......................... 1.10% 1.85% 1.85% 0.85%
Gross expenses* ....................... 2.28% 3.01% 3.04% 2.04%
Portfolio turnover rate ................ 34% 34% 34% 34%
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
------------
See Notes to Financial Highlights and Notes to Financial Statements.
109
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE FIXED INCOME FUND
-----------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
-----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.76 $12.55 $12.06 $11.70 $11.92
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.70 0.64 0.68 0.72 0.69
Net realized and unrealized
gains (losses) on investments ......... (0.03) (0.79) 0.50 0.35 (0.21)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.67 (0.15) 1.18 1.07 0.48
-----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.71 0.64 0.67 0.71 0.70
Net realized gains ..................... -- -- -- -- --
In excess of net investment income ..... -- -- 0.02 -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.71 0.64 0.69 0.71 0.70
-----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.72 $11.76 $12.55 $12.06 $11.70
-----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.94% (1.20%) 10.06% 9.45% 4.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $100,745 $92,217 $49,736 $35,097 $28,115
Ratios to average net assets:
Net investment income (loss)* ......... 6.04% 5.27% 5.53% 6.17% 5.84%
Net expenses* ......................... 0.80% 0.80% 0.80% 0.85% 0.85%
Gross expenses* ....................... 0.80% 0.83% 0.83% 0.96% 0.99%
Portfolio turnover rate ................ 219% 246% 219% 258% 275%
-----------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
--------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.77 $12.55 $12.06 $11.70 $11.91
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.61 0.55 0.58 0.63 0.60
Net realized and unrealized
gains (losses) on investments ......... (0.03) (0.78) 0.50 0.36 (0.20)
--------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.58 (0.23) 1.08 0.99 0.40
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.62 0.55 0.57 0.63 0.61
Net realized gains ..................... -- -- -- -- --
In excess of net investment income ..... -- -- 0.02 -- --
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.62 0.55 0.59 0.63 0.61
--------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.73 $11.77 $12.55 $12.06 $11.70
--------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.15% (1.85%) 9.24% 8.64% 3.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $2,042 $2,854 $1,855 $1,401 $1,673
Ratios to average net assets:
Net investment income (loss)* ......... 5.24% 4.54% 4.79% 5.17% 5.19%
Net expenses* ......................... 1.55% 1.55% 1.55% 1.56% 1.60%
Gross expenses* ....................... 1.55% 1.58% 1.85% 2.19% 2.44%
Portfolio turnover rate ................ 219% 246% 219% 258% 275%
--------------------------------------------------------------------------------------------------
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.77 $11.76 $12.54 $12.05 $11.69 $11.92
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.62 0.74 0.67 0.71 0.75 0.72
Net realized and unrealized
gains (losses) on investments ......... (0.04) (0.05) (0.78) 0.50 0.35 (0.22)
------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.58 0.69 (0.11) 1.21 1.10 0.50
------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.62 0.74 0.67 0.70 0.74 0.73
Net realized gains ..................... -- -- -- -- -- --
In excess of net investment income ..... -- -- -- 0.02 -- --
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.62 0.74 0.67 0.72 0.74 0.73
------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.73 $11.71 $11.76 $12.54 $12.05 $11.69
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.15% 6.11% (0.87%) 10.33% 9.74% 4.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $298 $59,259 $36,152 $30,067 $16,229 $19,098
Ratios to average net assets:
Net investment income (loss)* ......... 5.40% 6.34% 5.51% 5.58% 5.97% 6.14%
Net expenses* ......................... 1.55% 0.55% 0.55% 0.55% 0.56% 0.55%
Gross expenses* ....................... 1.55% 0.55% 0.58% 0.57% 0.59% 0.57%
Portfolio turnover rate ................ 219% 219% 246% 219% 258% 275%
</TABLE>
------------
See Notes to Financial Highlights and Notes to Financial Statements.
110
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE GOVERNMENT SECURITIES FUND
-----------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96
-----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
Net asset value, beginning of period ..... $8.14 $8.90 $8.53 $8.48 $8.70
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.52 0.50 0.56 0.53 0.62
Net realized and unrealized
gains (losses) on investments ......... (0.02) (0.68) 0.39 0.05 (0.22)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 0.50 (0.18) 0.95 0.58 0.40
-----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.58 0.58 0.53 0.53 0.54
Net realized gains ..................... -- -- -- -- --
Return of capital ...................... -- -- -- -- 0.08
In excess of net investment income ..... -- -- 0.05 -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.58 0.58 0.58 0.53 0.62
-----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.06 $8.14 $8.90 $8.53 $8.48
-----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 6.48% (2.01%) 11.61% 7.13% 4.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................$102,907 $42,723 $24,541 $24,027 $29,090
Ratios to average net assets:
Net investment income (loss)* ......... 6.53% 5.89% 6.52% 6.91% 6.59%
Net expenses* ......................... 0.85% 1.07% 1.10% 0.88% 0.90%
Gross expenses* ....................... 0.99% 1.11% 1.16% 0.88% 0.90%
Portfolio turnover rate ................ 79% 101% 64% 110% 334%
-----------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96
------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 4/22/87
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $8.20 $8.93 $8.54 $8.49 $8.71
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.47 0.46 0.52 0.47 0.55
Net realized and unrealized
gains (losses) on investments ......... (0.03) (0.67) 0.39 0.05 (0.22)
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 0.44 (0.21) 0.91 0.52 0.33
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.52 0.52 0.48 0.47 0.48
Net realized gains ..................... -- -- -- -- --
Return of capital ...................... -- -- -- -- 0.07
In excess of net investment income ..... -- -- 0.04 -- --
------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.52 0.52 0.52 0.47 0.55
------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.12 $8.20 $8.93 $8.54 $8.49
------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.56% (2.42%) 10.99% 6.36% 4.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $135,488 $269,409 $399,675 $523,303 $767,216
Ratios to average net assets:
Net investment income (loss)* ......... 5.83% 5.34% 6.00% 6.15% 5.77%
Net expenses* ......................... 1.60% 1.59% 1.60% 1.63% 1.69%
Gross expenses* ....................... 1.72% 1.63% 1.61% 1.63% 1.69%
Portfolio turnover rate ................ 79% 101% 64% 110% 334%
------------------------------------------------------------------------------------------------
<CAPTION>
CLASS C (LEVEL LOAD)
9/30/00(B)
--------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period ..... $8.20
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.47
Net realized and unrealized
gains (losses) on investments ......... 0.01
--------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 0.48
--------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.54
Net realized gains ..................... --
--------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.54
--------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.14
--------------------------------------------------------
TOTAL RETURN (A) ......................... 6.08%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $10
Ratios to average net assets:
Net investment income (loss)* ......... 5.95%
Net expenses* ......................... 1.60%
Gross expenses* ....................... 1.71%
Portfolio turnover rate ................ 79%
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
111
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE SHORT-TERM GOVERNMENT FUND
--------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
--------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.71 $12.02 $11.86 $11.79 $11.91
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.65 0.55 0.65 0.67 0.63
Net realized and unrealized
gains (losses) on investments ......... (0.01)(j) (0.25) 0.19 0.08 (0.05)
--------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .. 0.64 0.30 0.84 0.75 0.58
--------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.66 0.56 0.66 0.67 0.64
Net realized gains ..................... 0.01 0.05 0.02 0.01 0.06
--------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.67 0.61 0.68 0.68 0.70
--------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.68 $11.71 $12.02 $11.86 $11.79
--------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.67% 2.52% 7.36% 6.57% 4.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$22,016 $23,106 $8,199 $5,319 $3,653
Ratios to average net assets:
Net investment income (loss)* ......... 5.63% 4.70% 5.47% 5.57% 5.28%
Net expenses* ......................... 0.68% 0.70% 0.70% 0.70% 0.70%
Gross expenses* ....................... 0.74% 1.01% 0.95% 1.07% 1.34%
Portfolio turnover rate ................ 170% 118% 185% 265% 201%
--------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-----------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .....$11.70 $12.01 $11.84 $11.78 $11.90
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.57 0.48 0.58 0.61 0.56
Net realized and unrealized
gains (losses) on investments ......... (0.01)(j) (0.26) 0.20 0.06 (0.05)
-----------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .. 0.56 0.22 0.78 0.67 0.51
-----------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.59 0.48 0.59 0.60 0.57
Net realized gains ..................... 0.01 0.05 0.02 0.01 0.06
-----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.60 0.53 0.61 0.61 0.63
-----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ...........$11.66 $11.70 $12.01 $11.84 $11.78
-----------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 4.95% 1.91% 6.83% 5.84% 4.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $347 $641 $895 $1,031 $145
Ratios to average net assets:
Net investment income (loss)* ......... 4.94% 4.10% 4.87% 4.84% 4.67%
Net expenses* ......................... 1.28% 1.30% 1.30% 1.30% 1.30%
Gross expenses* ....................... 1.35% 1.61% 1.88% 7.77% 3.35%
Portfolio turnover rate ................ 170% 118% 185% 265% 201%
-----------------------------------------------------------------------------------------
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
--------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.70 $11.71 $12.01 $11.85 $11.78 $11.90
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.56 0.74 0.58 0.68 0.70 0.66
Net realized and unrealized
gains (losses) on investments ......... (0.02)(j) (0.08)(j) (0.25) 0.19 0.08 (0.05)
--------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .. 0.54 0.66 0.33 0.87 0.78 0.61
--------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.57 0.69 0.58 0.69 0.70 0.67
Net realized gains ..................... 0.01 0.01 0.05 0.02 0.01 0.06
--------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.58 0.70 0.63 0.71 0.71 0.73
--------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.66 $11.67 $11.71 $12.01 $11.85 $11.78
--------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 4.80% 5.85% 2.87% 7.65% 6.83% 5.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $121 $49,358 $3,140 $9,444 $7,717 $7,786
Ratios to average net assets:
Net investment income (loss)* ......... 4.93% 6.34% 4.91% 5.74% 5.80% 5.54%
Net expenses* ......................... 1.43% 0.42% 0.45% 0.45% 0.45% 0.45%
Gross expenses* ....................... 1.48% 0.42% 0.76% 0.68% 0.68% 0.83%
Portfolio turnover rate ................ 170% 170% 118% 185% 265% 201%
</TABLE>
----------
See Notes to Financial Highlights and Notes to Financial Statements.
112
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE TAX-EXEMPT FUND
------------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96
------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.14 $11.83 $11.63 $11.42 $11.31
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.53 0.49 0.51 0.53 0.62
Net realized and unrealized
gains (losses) on investments ......... 0.02 (0.69) 0.20 0.22 0.05
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 0.55 (0.20) 0.71 0.75 0.67
------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.53 0.49 0.51 0.54 0.56
Net realized gains ..................... -- -- -- -- --
------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.53 0.49 0.51 0.54 0.56
------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.16 $11.14 $11.83 $11.63 $11.42
------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 5.12% (1.84%) 6.33% 6.77% 6.13%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................$19,543 $22,228 $5,730 $16,542 $16,169
Ratios to average net assets:
Net investment income (loss)* ......... 4.81% 4.28% 4.32% 5.01% 5.42%
Net expenses* ......................... 0.85% 1.08% 1.10% 0.35% 0.00%
Gross expenses* ....................... 0.99% 1.21% 1.23% 1.57% 1.52%
Portfolio turnover rate ................ 45% 48% 74% 13% 6%
------------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96
-----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.13 $11.83 $11.63 $11.44 $11.32
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.45 0.43 0.44 0.51 0.62
Net realized and unrealized
gains (losses) on investments ......... 0.03 (0.70) 0.21 0.21 0.06
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 0.48 (0.27) 0.65 0.72 0.68
-----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.45 0.43 0.45 0.53 0.56
Net realized gains ..................... -- -- -- -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.45 0.43 0.45 0.53 0.56
-----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.16 $11.13 $11.83 $11.63 $11.44
-----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 4.43% (2.34%) 5.68% 6.46% 6.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $5,397 $7,269 $8,905 $10,133 $9,184
Ratios to average net assets:
Net investment income (loss)* ......... 4.07% 3.72% 3.81% 4.79% 5.43%
Net expenses* ......................... 1.60% 1.60% 1.60% 0.57% 0.00%
Gross expenses* ....................... 1.74% 1.75% 1.71% 2.32% 2.26%
Portfolio turnover rate ................ 45% 48% 74% 13% 6%
-----------------------------------------------------------------------------------------------
<CAPTION>
CLASS C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97
-------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- 9/26/97
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $11.13 $11.58 $12.30 $12.10 $12.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.44 0.58 0.57 0.58 0.02
Net realized and unrealized gains
(losses) on investments ............... 0.04 0.03 (0.72) 0.27 --
-------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.48 0.61 (0.15) 0.85 0.02
-------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.45 0.58 0.57 0.65 0.01
Net realized gains ..................... -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.45 0.58 0.57 0.65 0.01
-------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $11.16 $11.61 $11.58 $12.30 $12.10
-------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 4.43% 5.47% (1.37%) 7.30% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $105 $25 $24 $24 $3,216
Ratios to average net assets:
Net investment income (loss)* ......... 4.06% 5.07% 4.72% 4.74% 4.31%
Net expenses* ......................... 1.60% 0.59% 0.59% 0.60% 0.54%
Gross expenses* ....................... 1.73% 0.73% 0.74% 1.25% 0.56%
Portfolio turnover rate ................ 45% 45% 48% 74% 13%
</TABLE>
---------
See Notes to Financial Highlights and Notes to Financial Statements.
113
<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 C (LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/99(B,C) 9/30/00(B) 9/30/99(B) 9/30/00(B) 9/30/00(B) 9/30/99(B)
------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 12/31/98 -- 12/31/98 9/30/99 -- 12/31/98
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $9.53 $10.00 $9.53 $10.00 $9.53 $9.53 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.80 0.55 0.73 0.48 0.73 0.82 0.55
Net realized and unrealized
gains (losses) on investments ........ (0.83) (0.49) (0.83) (0.48) (0.83) (0.83) (0.48)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS (0.03) 0.06 (0.10) -- (0.10) (0.01) 0.07
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.80 0.53 0.73 0.47 0.73 0.82 0.54
Net realized gains ..................... -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.80 0.53 0.73 0.47 0.73 0.82 0.54
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.70 $9.53 $8.70 $9.53 $8.70 $8.70 $9.53
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... (0.52%) 0.53% (1.25%) (0.03%) (1.27%) (0.26%) 0.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $6,999 $1,931 $1,082 $154 $1,019 $22,923 $20,126
Ratios to average net assets:
Net investment income (loss)* ......... 8.64% 7.57% 7.93% 6.53% 7.90% 8.79% 7.49%
Expenses* ............................. 0.97% 0.89% 1.72% 1.70% 1.72% 0.71% 0.70%
Gross expenses* ....................... 1.01% 1.16% 1.76% 2.05% 1.76% 0.77% 0.98%
Portfolio turnover rate ................ 35% 27% 35% 27% 35% 35% 27%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
---------
See Notes to Financial Highlights and Notes to Financial Statements.
114
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE STRATEGIC INVESTMENT FUND
---------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96
---------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $25.04 $24.15 $24.11 $20.38 $18.46
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.64 0.55 0.61 0.59 0.54
Net realized and unrealized
gains (losses) on investments ........ 2.69 2.98 0.73 3.88 1.92
---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 3.33 3.53 1.34 4.47 2.46
---------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.50 0.56 0.52 0.49 0.46
Net realized gains ..................... 1.01 2.08 0.78 0.25 0.08
---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.51 2.64 1.30 0.74 0.54
---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $26.86 $25.04 $24.15 $24.11 $20.38
---------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 13.78% 15.28% 5.88% 22.45% 13.58%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .......................$128,847 $107,034 $49,540 $40,516 $26,467
Ratios to average net assets:
Net investment income (loss)* ......... 2.44% 2.17% 2.49% 2.66% 2.81%
Net expenses* ......................... 0.84% 0.87% 0.85% 0.90% 0.90%
Gross expenses* ....................... 0.84% 0.87% 0.85% 0.94% 1.05%
Portfolio turnover rate ................ 103% 109% 119% 106% 93%
---------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
----------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 12/22/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $24.45 $23.65 $23.70 $20.04 $18.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.43 0.35 0.42 0.42 0.41
Net realized and unrealized
gains (losses) on investments ........ 2.63 2.93 0.69 3.82 1.87
----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .................. 3.06 3.28 1.11 4.24 2.28
----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.37 0.40 0.38 0.33 0.42
Net realized gains ..................... 1.01 2.08 0.78 0.25 0.08
----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.38 2.48 1.16 0.58 0.50
----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $26.13 $24.45 $23.65 $23.70 $20.04
----------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 12.94% 14.44% 4.91% 21.57% 12.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $21,225 $16,372 $11,158 $5,685 $3,701
Ratios to average net assets:
Net investment income (loss)* ......... 1.69% 1.44% 1.72% 1.92% 2.11%
Net expenses* ......................... 1.59% 1.62% 1.63% 1.65% 1.65%
Gross expenses* ....................... 1.59% 1.62% 1.63% 1.93% 2.10%
Portfolio turnover rate ................ 103% 109% 119% 106% 93%
----------------------------------------------------------------------------------------------
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
9/30/00(B) 9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
-------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- 11/29/93
Net asset value, beginning of period ..... $24.45 $25.10 $24.20 $24.16 $20.44 $18.49
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.46 0.70 0.61 0.67 0.64 0.63
Net realized and unrealized
gains (losses) on investments ......... 2.55 2.70 2.99 0.72 3.89 1.90
-------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ............................. 3.01 3.40 3.60 1.39 4.53 2.53
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.54 0.57 0.62 0.57 0.56 0.50
Net realized gains ..................... 1.01 1.01 2.08 0.78 0.25 0.08
-------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 1.55 1.58 2.70 1.35 0.81 0.58
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $25.91 $26.92 $25.10 $24.20 $24.16 $20.44
-------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ......................... 12.76% 14.06% 15.56% 6.10% 22.76% 13.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................ $2,271 $70,334 $62,714 $51,802 $37,924 $36,162
Ratios to average net assets:
Net investment income (loss)* ......... 1.80% 2.69% 2.41% 2.70% 2.90% 3.16%
Net expenses* ......................... 1.59% 0.59% 0.62% 0.64% 0.65% 0.58%
Gross expenses* ....................... 1.59% 0.59% 0.62% 0.64% 0.65% 0.59%
Portfolio turnover rate ................ 103% 103% 109% 119% 106% 93%
</TABLE>
---------
See Notes to Financial Highlights and Notes to Financial Statements.
115
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE MONEY MARKET FUND
--------------------------------------------------------------------------------------------------------------
CLASS A
9/30/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96
--------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.06 0.05 0.05 0.05 0.05
Net realized and unrealized gains
on investments ........................ -- -- -- -- --
--------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .. 0.06 0.05 0.05 0.05 0.05
--------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.06 0.05 0.05 0.05 0.05
Net realized gains ..................... -- -- -- -- --
--------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.06 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) ......................... 5.81% 4.68% 5.23% 5.14% 5.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $268,886 $196,155 $153,665 $114,030 $85,842
Ratios to average net assets:
Net investment income (loss)* ......... 5.69% 4.58% 5.11% 5.04% 5.06%
Net expenses* ......................... 0.50% 0.49% 0.50% 0.47% 0.45%
Gross expenses* ....................... 0.50% 0.50% 0.52% 0.56% 0.66%
--------------------------------------------------------------------------------------------------------------
</TABLE>
-----------
See Notes to Financial Highlights and Notes to Financial Statements.
117
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
(A) TOTAL RETURNS ARE HISTORICAL AND ASSUME CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS, AND ASSUME NO
SALES CHARGE. HAD THE ADVISOR 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 FUND, GE
GOVERNMENT SECURITIES FUND AND GE TAX-EXEMPT FUND WHERE THE RELEVANT
INFORMATION FOR CLASS A SHARES WERE RETAINED. ALSO SEE NOTE 10 OF NOTES TO
FINANCIAL STATEMENTS.
(D) EFFECTIVE AS OF THE CLOSE OF BUSINESS SEPTEMBER 17, 1999, CLASS D SHARES
WERE RENAMED CLASS Y SHARES.
(E) FOR THE PERIOD NOVEMBER 1, 1996 (INCEPTION) THROUGH SEPTEMBER 30, 1997.
(F) FOR THE PERIOD APRIL 28, 2000 (INCEPTION) THROUGH SEPTEMBER 30, 2000.
(G) LESS THAN $0.01 PER SHARE.
(H) FOR THE PERIOD JANUARY 5, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1998.
(I) FOR THE PERIOD DECEMBER 31, 1998 (INCEPTION) THROUGH SEPTEMBER 30, 1999.
(J) AS A RESULT OF THE TIMING OF PURCHASES AND SALES OF FUND SHARES, PER SHARE
AMOUNTS DO NOT ACCORD WITH AGGREGATE AMOUNTS APPEARING IN THE STATEMENTS OF
OPERATIONS.
* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
117
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE
STATEMENTS OF ASSETS U.S. VALUE MID-CAP MID-CAP
AND LIABILITIES SEPTEMBER 30, 2000 EQUITY EQUITY GROWTH VALUE EQUITY
FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $614,392,411;
$70,146,157; $31,030,142; $12,063,935; $45,283,284;
$27,377,830; $72,703,407; $74,139,236; $14,719,801;
$26,019,949; and $174,187,442, respectively) $752,445,420 $87,875,283 $37,963,910 $12,585,268
Short-term investments (at amortized cost) 31,555,492 2,781,702 4,534,955 1,205,247
Cash .................................. 184,686 -- -- --
Foreign currency (cost $0; $2,015; $0; $0; $0 $0;
$98,898; $235,907; $170,966; $132,077;
and $0, respectively) .............. -- 2,006 -- --
Receivable for investments sold ....... 34,076,366 3,071,268 770,385 --
Income receivables .................... 647,134 82,267 59,227 18,588
Receivable for fund shares sold ....... 700,035 96,786 30,646 240
Variation margin receivable ........... -- -- 4,200 --
Deferred organizational costs ......... -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 819,609,133 93,909,312 43,363,323 13,809,343
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market*** ......... -- -- -- --
Distributions payable to shareholders . 39,715 -- 4,242 --
Payable for investments purchased ..... 3,618,201 125,607 2,280,835 --
Payable for fund shares redeemed ...... 796,634 128,000 2,500 7,270
Payable to GEAM ....................... 354,836 52,211 25,992 12,240
Variation margin payable .............. 387,825 28,175 -- --
Payable to custodian .................. -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 5,197,211 333,993 2,313,569 19,510
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $814,411,922 $93,575,319 $41,049,754 $13,789,833
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 635,305,722 70,226,685 30,230,664 13,131,351
Undistributed (overdistributed) net investment income 3,333,136 89,374 224,136 59,694
Accumulated net realized gain (loss) .. 38,356,636 5,551,456 3,650,436 77,455
Net unrealized appreciation / (depreciation) on:
Investments ........................ 138,053,009 17,729,126 6,933,768 521,333
Futures ............................ (635,582) (21,175) 10,750 --
Written options .................... -- -- -- --
Foreign currency related transactions (999) (147) -- --
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $814,411,922 $93,575,319 $41,049,754 $13,789,833
-----------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 385,111,142 43,283,446 23,942,279 1,911,225
Shares outstanding ($.001 par value) ..... 11,866,159 3,392,784 1,905,332 180,372
Net asset value per share ................ 32.45 12.76 12.57 10.60
Maximum offering price per share ......... 34.43 13.54 13.34 11.25
CLASS B:
Net assets ............................... 46,576,663 45,675,415 16,907,536 298,127
Shares outstanding ($.001 par value) ..... 1,487,954 3,685,452 1,444,280 28,390
Net asset value per share* ............... 31.30 12.39 11.71 10.50
CLASS C (LEVEL LOAD):
Net assets ............................... 4,811,434 847,474 185,919 590,400
Shares outstanding ($.001 par value) ..... 154,806 68,347 15,883 56,535
Net asset value per share* ............... 31.08 12.40 11.71 10.44
CLASS Y:
Net assets ............................... 377,912,683 3,768,984 14,020 10,990,081
Shares outstanding ($.001 par value) ..... 11,669,923 280,960 1,050 1,035,345
Net asset value per share ................ 32.38 13.41 13.35 10.61
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
STATEMENTS OF ASSETS SMALL-CAP S&P 500 GLOBAL INTERNATIONAL
AND LIABILITIES SEPTEMBER 30, 2000 VALUE EQUITY INDEX EQUITY EQUITY
FUND FUND** FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $614,392,411;
$70,146,157; $31,030,142; $12,063,935; $45,283,284;
$27,377,830; $72,703,407; $74,139,236; $14,719,801;
$26,019,949; and $174,187,442, respectively) $50,556,242 $27,040,690 $79,159,901 $76,597,105
Short-term investments (at amortized cost) 4,570,345 1,494,859 4,005,275 7,451,103
Cash -- -- -- 8,908
Foreign currency (cost $0; $2,015; $0; $0; $0 $0;
$98,898; $235,907; $170,966; $132,077;
and $0, respectively) .............. -- -- 98,037 235,865
Receivable for investments sold ....... 695,385 267 5,112,973 8,522,414
Income receivables .................... 51,347 29,775 159,663 208,258
Receivable for fund shares sold ....... 27,391 1,192 336,173 552,411
Variation margin receivable ........... -- -- -- --
Deferred organizational costs ......... -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 55,900,710 28,566,783 88,872,022 93,576,064
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market*** ......... 13,950 -- -- --
Distributions payable to shareholders . -- -- -- --
Payable for investments purchased ..... 3,602,025 -- 4,748,170 10,667,244
Payable for fund shares redeemed ...... 80,142 -- 640,497 2,206,991
Payable to GEAM ....................... 31,288 10,713 82,598 67,985
Variation margin payable .............. -- 22,300 -- --
Payable to custodian .................. -- -- 95,895 --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 3,727,405 33,013 5,567,160 12,942,220
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $52,173,305 $28,533,770 $83,304,862 $80,633,844
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 45,220,819 28,767,720 64,195,398 71,320,873
Undistributed (overdistributed) net investment income 141,453 136,090 42,236 77,830
Accumulated net realized gain (loss) .. 1,535,823 37,050 12,611,976 6,776,653
Net unrealized appreciation / (depreciation) on:
Investments ........................ 5,272,958 (337,140) 6,456,494 2,457,869
Futures ............................ -- (69,950) -- --
Written options .................... 2,252 -- -- --
Foreign currency related transactions -- -- (1,242) 619
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $52,173,305 $28,533,770 $83,304,862 $80,633,844
------------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 29,227,618 28,533,770 49,783,969 40,281,827
Shares outstanding ($.001 par value) ..... 2,149,387 2,870,622 1,831,923 2,093,439
Net asset value per share ................ 13.60 9.94 27.18 19.24
Maximum offering price per share ......... 14.43 -- 28.84 20.41
CLASS B:
Net assets ............................... 11,852,763 -- 2,384,270 1,828,445
Shares outstanding ($.001 par value) ..... 884,127 -- 92,052 99,572
Net asset value per share* ............... 13.41 -- 25.90 18.36
CLASS C (LEVEL LOAD):
Net assets ............................... 159,385 -- 180,423 282,531
Shares outstanding ($.001 par value) ..... 11,888 -- 6,966 15,381
Net asset value per share* ............... 13.41 -- 25.90 18.37
CLASS Y:
Net assets ............................... 10,933,539 -- 30,956,200 38,241,041
Shares outstanding ($.001 par value) ..... 800,301 -- 1,137,065 1,969,066
Net asset value per share ................ 13.66 -- 27.22 19.42
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
STATEMENTS OF ASSETS EUROPE EMERGING PREMIER GROWTH
AND LIABILITIES SEPTEMBER 30, 2000 EQUITY MARKETS EQUITY
FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $614,392,411;
$70,146,157; $31,030,142; $12,063,935; $45,283,284;
$27,377,830; $72,703,407; $74,139,236; $14,719,801;
$26,019,949; and $174,187,442, respectively) $15,355,377 $25,660,058 $196,886,644
Short-term investments (at amortized cost) 636,774 1,411,633 9,436,071
Cash -- -- 23,086
Foreign currency (cost $0; $2,015; $0; $0; $0 $0;
$98,898; $235,907; $170,966; $132,077;
and $0, respectively) .............. 171,461 131,090 --
Receivable for investments sold ....... 2,369,809 225,563 --
Income receivables .................... 44,576 17,378 125,928
Receivable for fund shares sold ....... 1,808 96,532 298,462
Variation margin receivable ........... -- -- --
Deferred organizational costs ......... -- -- 3,201
-----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 18,579,805 27,542,254 206,773,392
-----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Options written, at market*** ......... -- -- --
Distributions payable to shareholders . -- -- 24,038
Payable for investments purchased ..... 2,076,658 176,330 --
Payable for fund shares redeemed ...... -- 1,150 320,678
Payable to GEAM ....................... 17,270 32,012 138,331
Variation margin payable .............. -- -- 16,725
Payable to custodian .................. -- -- --
-----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 2,093,928 209,492 499,772
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $16,485,877 $27,332,762 $206,273,620
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 13,673,282 25,009,975 173,447,167
Undistributed (overdistributed) net investment income 13,292 44,146 454,018
Accumulated net realized gain (loss) .. 2,162,968 2,639,598 9,677,883
Net unrealized appreciation / (depreciation) on:
Investments ........................ 635,576 (359,891) 22,699,202
Futures ............................ -- -- (4,650)
Written options .................... -- -- --
Foreign currency related transactions 759 (1,066) --
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $16,485,877 $27,332,762 $206,273,620
-----------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 2,989,354 9,071,101 128,254,652
Shares outstanding ($.001 par value) ..... 236,645 625,350 4,087,474
Net asset value per share ................ 12.63 14.51 31.38
Maximum offering price per share ......... 13.40 15.40 33.29
CLASS B:
Net assets ............................... 350,256 659,160 41,795,419
Shares outstanding ($.001 par value) ..... 27,946 46,028 1,368,093
Net asset value per share* ............... 12.53 14.32 30.55
CLASS C (LEVEL LOAD):
Net assets ............................... 176,379 136,986 3,134,386
Shares outstanding ($.001 par value) ..... 14,132 9,569 102,606
Net asset value per share* ............... 12.48 14.32 30.55
CLASS Y:
Net assets ............................... 12,969,888 17,465,515 33,089,163
Shares outstanding ($.001 par value) ..... 1,023,740 1,198,732 1,047,840
Net asset value per share ................ 12.67 14.57 31.58
<FN>
*Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
**GE Money Market Fund and GE S&P 500 Index Fund are no load funds offering
only one class of shares to all investors.
***Premiums received for the GE Small-Cap Value Equity Fund were $16,202.
</FN>
</TABLE>
----------
See Notes to Financial Statements.
118 & 119
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE
STATEMENTS OF ASSETS PREMIER PREMIER PREMIER FIXED
AND LIABILITIES SEPTEMBER 30, 2000 RESEARCH INTERNATIONAL VALUE INCOME
EQUITY FUND EQUITY FUND EQUITY FUND FUND
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $12,927,618;
$11,623,367; $11,529,920; $173,498,762;
$258,358,398; $80,333,335; $24,757,718;
$32,671,896; $179,484,792; and $0, respectively.) $12,626,479 $10,535,167 $12,740,264 $172,934,229
Short-term investments (at amortized cost) 240,618 479,112 566,163 30,624,255
Cash -- -- -- --
Foreign currency (cost $0; $39,394; $0; $6; $0; $0;
$0; $0; $71,833; and $0, respectively.) -- 39,149 -- 5
Receivable for investments sold ....... 392,949 -- 196,350 7,929,350
Income receivables .................... 9,537 25,149 20,083 2,017,472
Receivable for fund shares sold ....... 17,949 6,475 9,824 306,286
Unrealized gain on forward foreign currency
contracts .......................... -- -- -- --
Receivable from advisor ............... -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 13,287,532 11,085,052 13,532,684 213,811,597
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders . -- -- -- 159,512
Payable upon return of securities loaned -- -- -- 20,609,087
Payable for investments purchased ..... 382,681 335,418 91,939 23,936,667
Payable for fund shares redeemed ...... 5,376 -- -- 107,208
Payable to GEAM ....................... 11,036 11,043 8,994 47,162
Payable to custodian .................. -- -- -- 6,607,524
----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 399,093 346,461 100,933 51,467,160
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $12,888,439 $10,738,591 $13,431,751 $162,344,437
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 13,042,409 12,292,985 12,131,824 168,767,238
Undistributed (overdistributed) net investment income 19,452 125,330 78,263 499,466
Accumulated net realized gain (loss) .. 127,717 (591,200) 11,320 (6,357,733)
Net unrealized appreciation / (depreciation) on:
Investments ........................ (301,139) (1,088,200) 1,210,344 (564,533)
Foreign currency related transactions -- (324) -- (1)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $12,888,439 $10,738,591 $13,431,751 $162,344,437
----------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 12,415,046 10,339,252 12,978,138 100,744,866
Shares outstanding ($.001 par value) ..... 1,254,339 1,188,760 1,171,141 8,595,964
Net asset value per share ................ 9.90 8.70 11.08 11.72
Maximum offering price per share ......... 10.50 9.23 11.76 12.24
CLASS B:
Net assets ............................... 255,116 225,282 226,528 2,042,321
Shares outstanding ($.001 par value) ..... 25,852 25,983 20,500 174,178
Net asset value per share* ............... 9.87 8.67 11.05 11.73
CLASS C (LEVEL LOAD):
Net assets ............................... 119,138 86,936 116,085 297,881
Shares outstanding ($.001 par value) ..... 12,075 10,027 10,508 25,405
Net asset value per share* ............... 9.87 8.67 11.05 11.73
CLASS Y:
Net assets ............................... 99,139 87,121 111,000 59,259,369
Shares outstanding ($.001 par value) ..... 10,006 10,006 10,006 5,058,694
Net asset value per share ................ 9.91 8.71 11.09 11.71
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
STATEMENTS OF ASSETS GOVERNMENT SHORT-TERM GE HIGH
AND LIABILITIES SEPTEMBER 30, 2000 SECURITIES GOVERNMENT TAX-EXEMPT YIELD
FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $12,927,618;
$11,623,367; $11,529,920; $173,498,762;
$258,358,398; $80,333,335; $24,757,718;
$32,671,896; $179,484,792; and $0, respectively.) $259,987,072 $80,631,858 $24,629,434 $29,048,544
Short-term investments (at amortized cost) 56,414,415 13,608,064 1,000 1,359,747
Cash 32,790 -- -- --
Foreign currency (cost $0; $39,394; $0; $6; $0; $0;
$0; $0; $71,833; and $0, respectively.) -- -- -- --
Receivable for investments sold ....... 2,207,432 -- -- 1,258,407
Income receivables .................... 3,432,015 1,075,629 494,608 731,652
Receivable for fund shares sold ....... -- 57,212 21,250 190
Unrealized gain on forward foreign currency
contracts .......................... -- -- -- 52,037
Receivable from advisor ............... -- 63,352 53,524 --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 322,073,724 95,436,115 25,199,816 32,450,577
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders . 269,632 67,146 16,116 42,057
Payable upon return of securities loaned 75,471,745 18,163,701 -- --
Payable for investments purchased ..... 6,877,827 -- -- 320,514
Payable for fund shares redeemed ...... 380,504 30,962 -- 7,554
Payable to GEAM ....................... 624,342 25,198 15,222 19,523
Payable to custodian .................. 44,965 5,307,314 98,045 36,367
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 83,669,015 23,594,321 129,383 426,015
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $238,404,709 $71,841,794 $25,070,433 $32,024,562
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 438,907,473 71,843,462 26,026,083 36,020,925
Undistributed (overdistributed) net investment income 188,734 15,804 76,818 179,355
Accumulated net realized gain (loss) .. (202,320,172) (315,995) (904,184) (603,426)
Net unrealized appreciation / (depreciation) on:
Investments ........................ 1,628,674 298,523 (128,284) (3,623,352)
Foreign currency related transactions -- -- -- 51,060
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ............................... $238,404,709 $71,841,794 $25,070,433 $32,024,562
-----------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 102,906,591 22,015,574 19,543,220 6,999,319
Shares outstanding ($.001 par value) ..... 12,774,933 1,885,277 1,750,408 804,422
Net asset value per share ................ 8.06 11.68 11.16 8.70
Maximum offering price per share ......... 8.42 11.98 11.66 9.09
CLASS B:
Net assets ............................... 135,488,308 347,259 5,397,124 1,082,411
Shares outstanding ($.001 par value) ..... 16,679,835 29,775 483,496 124,389
Net asset value per share* ............... 8.12 11.66 11.16 8.70
CLASS C (LEVEL LOAD):
Net assets ............................... 9,810 120,852 104,971 1,019,452
Shares outstanding ($.001 par value) ..... 1,205 10,361 9,409 117,114
Net asset value per share* ............... 8.14 11.66 11.16 8.70
CLASS Y:
Net assets ............................... -- 49,358,109 25,118 22,923,380
Shares outstanding ($.001 par value) ..... -- 4,227,954 2,164 2,634,269
Net asset value per share ................ -- 11.67 11.61 8.70
</TABLE>
<TABLE>
<CAPTION>
GE GE
STATEMENTS OF ASSETS STRATEGIC MONEY
AND LIABILITIES SEPTEMBER 30, 2000 INVESTMENT MARKET
FUND FUND**
--------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities, at market (cost $12,927,618;
$11,623,367; $11,529,920; $173,498,762;
$258,358,398; $80,333,335; $24,757,718;
$32,671,896; $179,484,792; and $0, respectively.) $212,352,345 $ --
Short-term investments (at amortized cost) 14,312,138 266,075,020
Cash 3,968 --
Foreign currency (cost $0; $39,394; $0; $6; $0; $0;
$0; $0; $71,833; and $0, respectively.) 72,118 --
Receivable for investments sold ....... 3,339,071 --
Income receivables .................... 1,107,746 967,322
Receivable for fund shares sold ....... 484,047 3,112,380
Unrealized gain on forward foreign currency
contracts .......................... -- --
Receivable from advisor ............... -- --
--------------------------------------------------------------------------------------------------
TOTAL ASSETS ....................... 231,671,433 270,154,722
--------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders . -- 223,143
Payable upon return of securities loaned -- --
Payable for investments purchased ..... 8,767,075 --
Payable for fund shares redeemed ...... 52,459 891,183
Payable to GEAM ....................... 97,944 103,751
Payable to custodian .................. 77,430 50,779
--------------------------------------------------------------------------------------------------
TOTAL LIABILITIES .................. 8,994,908 1,268,856
--------------------------------------------------------------------------------------------------
NET ASSETS ............................... $222,676,525 $268,885,866
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ....................... 171,613,088 268,835,714
Undistributed (overdistributed) net investment income 4,181,549 58,994
Accumulated net realized gain (loss) .. 14,017,739 (8,842)
Net unrealized appreciation / (depreciation) on:
Investments ........................ 32,867,553 --
Foreign currency related transactions (3,404) --
--------------------------------------------------------------------------------------------------
NET ASSETS ............................... $222,676,525 $268,885,866
--------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ............................... 128,847,392 268,885,866
Shares outstanding ($.001 par value) ..... 4,796,630 268,897,132
Net asset value per share ................ 26.86 1.00
Maximum offering price per share ......... 28.50 --
CLASS B:
Net assets ............................... 21,224,595 --
Shares outstanding ($.001 par value) ..... 812,316 --
Net asset value per share* ............... 26.13 --
CLASS C (LEVEL LOAD):
Net assets ............................... 2,270,885 --
Shares outstanding ($.001 par value) ..... 87,657 --
Net asset value per share* ............... 25.91 --
CLASS Y:
Net assets ............................... 70,333,653 --
Shares outstanding ($.001 par value) ..... 2,612,586 --
Net asset value per share ................ 26.92 --
<FN>
*Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
**GE Money Market Fund and GE S&P 500 Index Fund are no load funds offering
only one class of shares to all investors.
</FN>
</TABLE>
-----------
See Notes to Financial Statements.
120 & 121
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE
STATEMENTS OF OPERATIONS U.S. VALUE MID-CAP MID-CAP
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 EQUITY EQUITY GROWTH VALUE EQUITY
FUND FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends .......................... $ 8,896,420 $1,186,330 $ 222,098 $ 176,048
Interest ........................... 1,378,319 151,446 275,010 49,509
Less: Foreign taxes withheld ....... (44,342) (5,767) (1,604) (994)
-------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME .......................... 10,230,397 1,332,009 495,504 224,563
-------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ... 3,180,319 507,952 236,178 100,839
Distribution fees (Notes 4 & 10)
Class A ......................... 920,044 94,866 50,311 3,708
Class B ......................... 449,214 509,877 187,197 2,452
Class C ......................... 34,161 5,720 1,165 2,844
Blue Sky fees ...................... 48,616 37,936 36,772 21,825
Transfer agent fees ................ 692,563 119,828 89,546 4,911
Trustees' fees ..................... 25,195 2,961 1,237 392
Custody and accounting expenses .... 288,975 33,947 14,193 4,480
Professional fees .................. 220,610 25,916 10,834 3,418
Registration expenses .............. 29,298 3,440 1,438 454
Amortization of deferred organization expense -- -- -- --
Other expenses ..................... 96,388 11,325 4,732 1,493
-------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER .......... 5,985,383 1,353,768 633,603 146,816
Less: Expenses waived or borne
by the adviser .................. -- -- (40,663) (15,450)
-------------------------------------------------------------------------------------------------------------------------
Net expenses ....................... 5,985,383 1,353,768 592,940 131,366
-------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .......... 4,245,014 (21,759) (97,436) 93,197
-------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ..................... 58,894,325 6,612,063 5,707,415 199,528
Futures ......................... (94,347) 198,902 (115,905) --
Written options ................. -- -- -- --
Foreign currency related transactions 253 (216) -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ..................... 25,829,604 2,127,567 5,572,811 723,095
Futures ......................... 57,423 71,750 10,750 --
Written options ................. -- -- -- --
Foreign currency related transactions (745) (129) -- --
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .................. 84,686,513 9,009,937 11,175,071 922,623
-------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......... $88,931,527 $8,988,178 $11,077,635 $1,015,820
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
STATEMENTS OF OPERATIONS SMALL-CAP S&P 500 GLOBAL INTERNATIONAL
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 VALUE EQUITY INDEX EQUITY EQUITY
FUND FUND* FUND FUND
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends ................................. $ 291,228 $ 123,395 $1,090,103 $1,353,702
Interest .................................. 158,718 52,042 218,398 170,609
Less: Foreign taxes withheld .............. -- (1,093) (133,882) (200,001)
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................. 449,946 174,344 1,174,619 1,324,310
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......... 278,919 33,171 617,020 610,732
Distribution fees (Notes 4 & 10)
Class A ................................ 57,738 -- 124,835 100,837
Class B ................................ 105,450 -- 21,990 19,473
Class C ................................ 1,112 -- 1,321 2,020
Blue Sky fees ............................. 21,825 20,000 35,561 36,190
Transfer agent fees ....................... 19,138 40,000 159,805 122,819
Trustees' fees ............................ 831 721 2,269 2,013
Custody and accounting expenses ........... 9,523 12,096 26,023 23,080
Professional fees ......................... 7,269 7,107 19,866 17,623
Registration expenses ..................... 966 1,008 2,639 2,339
Amortization of deferred organization expense -- -- -- --
Other expenses ............................ 3,177 2,758 8,682 7,700
-------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................. 505,948 116,861 1,020,011 944,826
Less: Expenses waived or borne
by the adviser ......................... (2,649) (67,104) -- --
-------------------------------------------------------------------------------------------------------------------------------
Net expenses .............................. 503,299 49,757 1,020,011 944,826
-------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ................. (53,353) 124,587 154,608 379,484
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................ 2,201,311 (1,130) 12,817,851 7,066,106
Futures ................................ -- 38,180 -- --
Written options ........................ 303,603 -- -- --
Foreign currency related transactions .. -- -- (140,375) (77,120)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ............................ 4,643,417 (337,140) (3,773,714) (2,872,570)
Futures ................................ -- (69,950) -- --
Written options ........................ 2,252 -- -- --
Foreign currency related transactions .. -- -- 12,877 (5,274)
-------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ......................... 7,150,583 (370,040) 8,916,639 4,111,142
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................. $7,097,230 $(245,453) $9,071,247 $4,490,626
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
STATEMENTS OF OPERATIONS EUROPE EMERGING PREMIER
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 EQUITY MARKETS GROWTH EQUITY
FUND FUND FUND
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends ................................. $ 270,169 $ 204,573 $ 714,752
Interest .................................. 37,153 84,305 576,723
Less: Foreign taxes withheld .............. (40,406) (21,629) (2,209)
-----------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................. 266,916 267,249 1,289,266
-----------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......... 163,531 313,207 1,005,849
Distribution fees (Notes 4 & 10)
Class A ................................ 4,677 15,380 264,399
Class B ................................ 2,936 5,465 326,182
Class C ................................ 1,374 1,255 19,599
Blue Sky fees ............................. 21,825 21,825 34,602
Transfer agent fees ....................... 5,139 3,726 129,038
Trustees' fees ............................ 388 531 3,671
Custody and accounting expenses ........... 4,428 6,068 42,097
Professional fees ......................... 3,382 4,634 32,138
Registration expenses ..................... 450 615 4,268
Amortization of deferred organization expense -- -- 2,829
Other expenses ............................ 1,478 2,118 14,044
-----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................. 209,608 374,824 1,878,716
Less: Expenses waived or borne
by the adviser ......................... (12,637) (19,613) --
-----------------------------------------------------------------------------------------------------------
Net expenses .............................. 196,971 355,211 1,878,716
-----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ................. 69,945 (87,962) (589,450)
-----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................ 2,231,907 2,911,356 9,929,850
Futures ................................ -- -- 141,790
Written options ........................ -- 4,315 --
Foreign currency related transactions .. (22,034) (26,814) --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ............................ 680,262 (2,901,590) 10,828,918
Futures ................................ -- -- 5,650
Written options ........................ -- -- --
Foreign currency related transactions .. 27 468 --
-----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ......................... 2,890,162 (12,265) 20,906,208
-----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................. $2,960,107 $(100,227) $20,316,758
-----------------------------------------------------------------------------------------------------------
<FN>
*For the period April 28, 2000 (inception) through September 30, 2000.
</FN>
</TABLE>
------------
See Notes to Financial Statements.
122 & 123
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS GE GE GE GE
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 PREMIER PREMIER PREMIER FIXED
RESEARCH INTERNATIONAL VALUE EQUITY INCOME
EQUITY FUND* EQUITY FUND* FUND* FUND
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends ............................... $ 45,518 $ 96,952 $ 98,542 $ 63,480
Interest** .............................. 16,243 31,171 15,595 9,926,099
Less: Foreign taxes withheld ............ (22) (10,413) (347) --
------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ............................... 61,739 117,710 113,790 9,989,579
------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ........ 35,049 36,767 29,020 509,376
Distribution fees (Notes 4 & 10)
Class A .............................. 12,134 11,132 11,745 235,235
Class B .............................. 763 711 594 25,059
Class C .............................. 467 406 447 1,167
Blue Sky fees ........................... 20,000 20,000 20,000 32,720
Transfer agent fees ..................... 40,000 40,000 40,000 135,785
Trustees' fees .......................... 288 288 288 4,677
Custody and accounting expenses ......... 4,838 4,838 4,838 53,626
Professional fees ....................... 2,843 2,843 2,843 40,937
Registration expenses ................... 404 404 404 5,439
Other expenses .......................... 1,103 1,103 1,103 17,886
------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ............... 117,889 118,492 111,282 1,061,907
Less: Expenses waived or borne
by the adviser ....................... (56,958) (57,986) (57,384) --
------------------------------------------------------------------------------------------------------------------------
Net expenses ............................ 60,931 60,506 53,898 1,061,907
------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ............... 808 57,204 59,892 8,927,672
------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments .......................... 110,809 (591,199) 31,262 (3,590,612)
Futures .............................. 16,908 -- (19,942) (40,216)
Written options ...................... -- -- -- 2,322
Foreign currency related transactions -- 49,773 -- --
Swaps ................................ -- -- -- 131,585
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments .......................... (301,139) (1,088,200) 1,210,344 3,487,707
Futures .............................. -- -- -- --
Written options ...................... -- -- -- --
Foreign currency related transactions -- (324) -- (1)
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ....................... (173,422) (1,629,950) 1,221,664 (9,215)
------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............... $(172,614) $(1,572,746) $1,281,556 $ 8,918,457
------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS GE GE GE
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 GOVERNMENT SHORT-TERM GE HIGH
SECURITIES GOVERNMENT TAX-EXEMPT YIELD
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends ................................. $ -- $ -- $ -- $ 40,830
Interest** ................................ 19,869,299 3,545,243 1,362,505 2,702,089
Less: Foreign taxes withheld .............. -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ................................. 19,869,299 3,545,243 1,362,505 2,742,919
------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees .......... 1,071,550 161,841 84,322 172,455
Distribution fees (Notes 4 & 10)
Class A ................................ 176,220 56,383 44,393 12,612
Class B ................................ 1,971,599 4,063 61,797 8,007
Class C ................................ 356 1,225 938 8,256
Blue Sky fees ............................. 39,587 35,967 36,556 21,825
Transfer agent fees ....................... 543,686 20,223 28,577 5,406
Trustees' fees ............................ 11,101 995 1,050 791
Custody and accounting expenses ........... 127,324 11,438 12,038 9,055
Professional fees ......................... 97,199 8,733 9,190 6,914
Registration expenses ..................... 12,909 1,160 1,219 919
Other expenses ............................ 44,151 3,817 4,017 3,018
------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ................. 4,095,682 305,845 284,097 249,258
Less: Expenses waived or borne
by the adviser ......................... (338,497) (15,895) (32,416) (14,493)
------------------------------------------------------------------------------------------------------------------------------
Net expenses .............................. 3,757,185 289,950 251,681 234,765
------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) ................. 16,112,114 3,255,293 1,110,824 2,508,154
------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................ (8,052,100) (307,405) (314,048) (480,034)
Futures ................................ (88,652) -- -- --
Written options ........................ 5,534 -- -- --
Foreign currency related transactions .. -- -- -- 232,040
Swaps .................................. -- -- -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ............................ 6,286,974 554,437 326,240 (2,758,899)
Futures ................................ -- -- -- --
Written options ........................ -- -- -- --
Foreign currency related transactions .. -- -- -- 67,378
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments ......................... (1,848,244) 247,032 12,192 (2,939,515)
------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................. $14,263,870 $3,502,325 $1,123,016 $ (431,361)
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS GE GE
FOR THE PERIOD ENDED SEPTEMBER 30, 2000 STRATEGIC MONEY
INVESTMENT MARKET
FUND FUND
--------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends .................................. $ 1,351,993 $ --
Interest** ................................. 5,581,863 14,390,312
Less: Foreign taxes withheld ............... (77,407) --
--------------------------------------------------------------------------------
TOTAL INCOME .................................. 6,856,449 14,390,312
--------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ........... 731,020 581,854
Distribution fees (Notes 4 & 10)
Class A ................................. 301,056 --
Class B ................................. 191,716 --
Class C ................................. 16,150 --
Blue Sky fees .............................. 36,988 35,905
Transfer agent fees ........................ 294,916 355,310
Trustees' fees ............................. 6,643 6,954
Custody and accounting expenses ............ 76,183 79,766
Professional fees .......................... 58,157 60,895
Registration expenses ...................... 7,723 8,089
Other expenses ............................. 25,411 26,608
--------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER .................. 1,745,963 1,155,381
Less: Expenses waived or borne
by the adviser .......................... -- --
--------------------------------------------------------------------------------
Net expenses ............................... 1,745,963 1,155,381
--------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .................. 5,110,486 13,234,931
--------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ............................. 14,471,790 --
Futures ................................. (28,217) --
Written options ......................... 1,153 --
Foreign currency related transactions ... (49,404) --
Swaps ................................... 70,225 --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ............................. 6,204,045 --
Futures ................................. -- --
Written options ......................... -- --
Foreign currency related transactions ... (2,620) --
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .......................... 20,666,972 --
--------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .................. $25,777,458 $13,234,931
--------------------------------------------------------------------------------
<FN>
*For the period April 28, 2000 (inception) through September 30, 2000.
**Income attributable to security lending activity, net of rebate expenses, for
the GE Fixed Income Fund, GE Government Securities Fund and GE Short-Term
Government Fund was $36,107, $163,100 and $38,721, respectively.
</FN>
</TABLE>
-----------
See Notes to Financial Statements.
124 & 125
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS U.S. VALUE MID-CAP
EQUITY EQUITY GROWTH
FUND FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 4,245,014 $ 4,046,234 $ (21,759) $ (98,247) $ (97,436) $ (253,669)
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
related transactions ............ 58,800,231 92,673,427 6,810,749 4,702,713 5,591,510 (102,555)
Net increase (decrease) in unrealized
appreciation/depreciation ....... 25,886,282 45,040,764 2,199,188 11,973,376 5,583,561 5,146,480
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations ................. 88,931,527 141,760,425 8,988,178 16,577,842 11,077,635 4,790,256
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... (1,380,844) (554,582) -- (54,459) -- --
Class B ......................... -- (37,985) -- -- -- --
Class C ......................... -- (1,040,599) -- -- -- --
Class C (level load) ............ (9,291) -- -- -- -- --
Class Y ......................... (2,602,693) (3,032,762) -- (12,937) -- --
Net realized gains
Class A ......................... (36,780,485) (8,266,829) (2,129,544) (712,210) -- --
Class B ......................... (4,638,890) (2,013,790) (3,277,572) (1,765,132) -- --
Class C ......................... -- (11,428,065) -- -- -- --
Class C (level load) ............ (162,704) -- (18,991) -- -- --
Class Y ......................... (41,627,300) (24,644,393) (130,787) (62,064) -- --
------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (87,202,207) (51,019,005) (5,556,894) (2,606,802) -- --
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ 1,729,320 90,741,420 3,431,284 13,971,040 11,077,635 4,790,256
------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ......................... 115,674,931 57,506,537 35,101,545 23,306,671 47,731,977 15,816,615
Class B ......................... 12,874,150 13,686,463 6,110,000 6,646,123 976,894 1,278,017
Class C ......................... -- 48,866,502 -- 5,287,366 -- 2,134,797
Class C (level load) ............ 5,072,015 70,000 867,785 70,000 90,395 70,000
Class Y ......................... 84,261,884 87,021,913 3,609,415 3,154,151 35,977 1,110,339
Value of distributions reinvested
Class A ......................... 37,394,137 8,822,976 2,077,451 639,827 29 --
Class B ......................... 4,410,373 1,987,603 3,190,950 1,723,554 38 --
Class C ......................... -- 12,199,432 -- 122,575 -- --
Class C (level load) ............ 171,977 -- 18,989 -- -- --
Class Y ......................... 43,848,215 27,361,490 130,786 75,002 -- --
Cost of shares redeemed
Class A ......................... (81,078,197) (38,044,646) (24,708,494) (19,256,429) (45,213,360) (14,637,395)
Class B ......................... (7,398,342) (3,827,603) (16,977,546) (11,457,926) (7,491,278) (8,378,193)
Class C ......................... -- (26,060,350) -- (942,565) -- (819,735)
Class C (level load) ............ (488,861) -- (122,795) -- (33) --
Class Y ......................... (109,591,822) (85,897,990) (2,491,529) (2,877,595) (1,028,064) (842,798)
Value of shares redesignated (Note 10)
Class A ......................... -- (133,574,732) -- 7,595,717 -- 3,348,474
Class C ......................... -- 133,574,732 -- (7,595,717) -- (3,348,474)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share
transactions ................... 105,150,460 103,692,327 6,806,557 6,490,754 (4,897,425) (4,268,353)
------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .................... 106,879,780 194,433,747 10,237,841 20,461,794 6,180,210 521,903
NET ASSETS
Beginning of period ............... 707,532,142 513,098,395 83,337,478 62,875,684 34,869,544 34,347,641
------------------------------------------------------------------------------------------------------------------------
End of period ..................... $814,411,922 $707,532,142 $93,575,319 $83,337,478 $41,049,754 $34,869,544
------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 3,333,136 $ 3,080,697 $ 89,374 $ 83,542 $ 224,136 $ 89,119
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS MID-CAP SMALL-CAP S&P 500
VALUE EQUITY VALUE EQUITY INDEX
FUND FUND FUND++
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999* 30, 2000 30, 1999* 30, 2000+
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 93,197 $ 64,321 $ (53,353) $ (53,355) $ 124,587
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
related transactions ............ 199,528 (122,073) 2,504,914 2,634,906 37,050
Net increase (decrease) in unrealized
appreciation/depreciation ....... 723,095 (201,762) 4,645,669 629,541 (407,090)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations ................. 1,015,820 (259,514) 7,097,230 3,211,092 (245,453)
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... (7,497) -- -- (17,185) --
Class B ......................... (423) -- -- (6,483) --
Class C ......................... -- -- -- (2,030) --
Class C (level load) ............ (2,044) -- -- -- --
Class Y ......................... (87,910) -- -- (338) --
Net realized gains
Class A ......................... -- -- (2,055,057) (26,117) --
Class B ......................... -- -- (1,179,620) (23,306) --
Class C ......................... -- -- -- (2,408) --
Class C (level load) ............ -- -- (10,923) -- --
Class Y ......................... -- -- (47,787) (345) --
-----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (97,874) -- (3,293,387) (78,212) --
-----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ 917,946 (259,514) 3,803,843 3,132,880 (245,453)
-----------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ......................... 1,750,674 260,465 32,881,546 33,698,178 103,871,059
Class B ......................... 232,126 189,794 15,810,977 24,885,336 --
Class C ......................... -- 680,786 -- 2,586,142 --
Class C (level load) ............ 643,035 70,000 160,452 70,000 --
Class Y ......................... 30 33,017,910 11,933,541 278,087 --
Value of distributions reinvested
Class A ......................... 7,675 -- 2,040,255 43,277 --
Class B ......................... 423 -- 1,167,330 29,257 --
Class C ......................... -- -- -- 4,438 --
Class C (level load) ............ 2,044 -- 10,919 -- --
Class Y ......................... 87,910 -- 47,779 683 --
Cost of shares redeemed
Class A ......................... (647,495) (4,488) (22,708,887) (23,451,422) (75,091,836)
Class B ......................... (130,011) -- (14,762,605) (17,707,407) --
Class C ......................... -- (181,317) -- (134,696) --
Class C (level load) ............ (132,287) -- (97,083) -- --
Class Y ......................... (42) (22,715,831) (1,544,007) (5,508) --
Value of shares redesignated (Note 10)
Class A ......................... -- (247,930) -- (12,090,451) --
Class C ......................... -- 247,930 -- 12,090,451 --
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share
transactions ................... 1,814,082 11,317,319 24,940,217 20,296,365 28,779,223
-----------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .................... 2,732,028 11,057,805 28,744,060 23,429,245 28,533,770
NET ASSETS
Beginning of period ............... 11,057,805 -- 23,429,245 -- --
-----------------------------------------------------------------------------------------------------------------
End of period ..................... $13,789,833 $11,057,805 $52,173,305 $23,429,245 $28,533,770
-----------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 59,694 $ 64,371 $ 141,453 $ 24,228 $ 136,090
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS GLOBAL INTERNATIONAL EUROPE
EQUITY EQUITY EQUITY
FUND FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999***
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 154,608 $ 172,856 $ 379,484 $ 177,587 $ 69,945 $ 91,684
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
related transactions ............ 12,677,476 5,823,374 6,988,986 2,910,160 2,209,873 (113,591)
Net increase (decrease) in unrealized
appreciation/depreciation ....... (3,760,837) 10,647,759 (2,877,844) 8,449,673 680,289 (43,954)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations ................. 9,071,247 16,643,989 4,490,626 11,537,420 2,960,107 (65,861)
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... -- -- -- -- (5,880) --
Class B ......................... -- -- -- -- (250) --
Class C ......................... -- (6,483) -- -- -- --
Class C (level load) ............ -- -- -- -- (459) --
Class Y ......................... -- (54,973) -- (14,483) (82,706) --
Net realized gains
Class A ......................... (3,657,749) (66,628) (1,829,560) (734,084) -- --
Class B ......................... (154,668) (50,765) (86,688) (38,540) -- --
Class C ......................... -- (1,350,779) -- (222,299) -- --
Class C (level load) ............ (6,517) -- (4,188) -- -- --
Class Y ......................... (2,112,455) (749,054) (1,190,119) (673,225) -- --
---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (5,931,389) (2,278,682) (3,110,555) (1,682,631) (89,295) --
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ 3,139,858 14,365,307 1,380,071 9,854,789 2,870,812 (65,861)
---------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ......................... 37,425,451 1,185,815 80,857,100 23,567,324 3,552,970 109,592
Class B ......................... 1,200,395 482,336 754,153 451,153 246,908 146,344
Class C ......................... -- 4,277,279 -- 7,656,574 -- 568,691
Class C (level load) ............ 108,879 70,000 310,916 70,000 102,647 70,000
Class Y ......................... 11,812,925 5,962,663 28,101,237 81,372,385 65,998,294 20,512,200
Value of distributions reinvested
Class A ......................... 3,466,570 66,068 1,812,538 736,219 5,872 --
Class B ......................... 154,548 50,665 74,242 38,196 250 --
Class C ......................... -- 1,302,707 -- 215,589 -- --
Class C (level load) ............ 6,515 -- 4,186 -- 459 --
Class Y ......................... 2,116,923 804,025 1,190,127 687,713 82,701 --
Cost of shares redeemed
Class A ......................... (32,318,003) (467,769) (77,169,950) (20,561,422) (1,322,744) --
Class B ......................... (474,782) (349,174) (512,952) (153,506) (67,234) (51)
Class C ......................... -- (6,110,317) -- (6,910,555) -- (6,864)
Class C (level load) ............ -- -- (89,467) -- (9) --
Class Y ......................... (7,212,711) (3,616,436) (12,526,760) (79,809,601) (65,919,100) (10,400,000)
Value of shares redesignated (Note 10)
Class A ......................... -- (2,709,574) -- (24,843,172) -- (110,008)
Class C ......................... -- 2,709,574 -- 24,843,172 -- 110,008
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share
transactions ................... 16,286,710 3,657,862 22,805,370 7,360,069 2,681,014 10,999,912
---------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .................... 19,426,568 18,023,169 24,185,441 17,214,858 5,551,826 10,934,051
NET ASSETS
Beginning of period ............... 63,878,294 45,855,125 56,448,403 39,233,545 10,934,051 --
---------------------------------------------------------------------------------------------------------------------------
End of period ..................... $83,304,862 $63,878,294 $80,633,844 $56,448,403 $16,485,877 $10,934,051
---------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 42,236 $ (26,399) $ 77,830 $ (61,286) $ 13,292 $ 42,349
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS EMERGING PREMIER GROWTH
MARKETS EQUITY
FUND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999*** 30, 2000 30, 1999
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ (87,962) $ (18,086) $ (589,450) $ (233,594)
Net realized gain (loss) on
investments, futures, written
options, and foreign currency
related transactions ............ 2,888,857 1,149,765 10,071,640 4,946,339
Net increase (decrease) in unrealized
appreciation/depreciation ....... (2,901,122) 2,540,165 10,834,568 8,663,640
----------------------------------------------------------------------------------------------------
Net increase (decrease)
from operations ................. (100,227) 3,671,844 20,316,758 13,376,385
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... -- -- -- --
Class B ......................... -- -- -- --
Class C ......................... -- -- -- (21,376)
Class C (level load) ............ -- -- -- --
Class Y ......................... -- -- -- (24,596)
Net realized gains
Class A ......................... (131,270) -- (3,161,016) (245,349)
Class B ......................... (20,058) -- (805,004) (75,915)
Class C ......................... -- -- -- (541,997)
Class C (level load) ............ (5,643) -- (25,553) --
Class Y ......................... (1,099,471) -- (860,280) (243,657)
----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (1,256,442) -- (4,851,853) (1,152,890)
----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ (1,356,669) 3,671,844 15,464,905 12,223,495
----------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ......................... 11,879,825 114,859 78,416,887 15,693,055
Class B ......................... 530,265 189,288 27,339,909 13,025,352
Class C ......................... -- 680,644 -- 30,507,072
Class C (level load) ............ 68,487 70,000 3,265,531 70,000
Class Y ......................... 103,792,521 36,168,212 48,836,927 47,132,513
Value of distributions reinvested
Class A ......................... 129,842 -- 3,081,478 245,318
Class B ......................... 20,067 -- 779,461 69,002
Class C ......................... -- -- -- 556,529
Class C (level load) ............ 5,641 -- 25,553 --
Class Y ......................... 1,099,469 -- 860,280 268,239
Cost of shares redeemed
Class A ......................... (2,118,407) (9) (31,015,385) (6,210,407)
Class B ......................... (32,502) (398) (4,148,005) (384,886)
Class C ......................... -- (7,265) -- (3,387,295)
Class C (level load) ............ (120) -- (271,549) --
Class Y ......................... (101,531,462) (26,041,370) (39,948,372) (36,981,788)
Value of shares redesignated (Note 10)
Class A ......................... -- (151,399) -- (18,802,004)
Class C ......................... -- 151,399 -- 18,802,004
----------------------------------------------------------------------------------------------------
Net increase (decrease) from share
transactions ................... 13,843,626 11,173,961 87,222,715 60,602,704
----------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS .................... 12,486,957 14,845,805 102,687,620 72,826,199
NET ASSETS
Beginning of period ............... 14,845,805 -- 103,586,000 30,759,801
----------------------------------------------------------------------------------------------------
End of period ..................... $27,332,762 $14,845,805 $206,273,620 $103,586,000
----------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 44,146 $ (78,643) $ 454,018 $ 207,970
<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.
+ For the period April 28, 2000 (inception) through September 30, 2000.
++ GE S&P 500 Index Fund is a no load fund offering only one class of shares to all investors.
</FN>
</TABLE>
---------
See Notes to Financial Statements.
126 & 127
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS (CONTINUED) U.S. VALUE MID-CAP
CHANGES IN FUND SHARES EQUITY EQUITY GROWTH
FUND FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 3,592,861 1,736,350 2,736,575 1,955,637 3,876,694 1,561,898
Issued for distributions reinvested .... 1,198,516 295,675 168,215 57,746 3 --
Shares redeemed ........................ (2,516,038) (1,156,282) (1,943,212) (1,624,075) (3,663,935) (1,440,010)
Shares redesignated .................... -- (3,918,249) -- 604,899 -- 344,777
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 2,275,339 (3,042,506) 961,578 994,207 212,762 466,665
-----------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 411,688 431,868 494,576 560,010 89,700 139,605
Issued for distributions reinvested .... 144,316 69,399 264,152 158,124 4 --
Shares redeemed ........................ (237,045) (121,853) (1,377,186) (984,873) (689,536) (921,219)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 318,959 379,414 (618,458) (266,739) (599,832) (781,614)
-----------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 1,526,641 -- 447,938 -- 334,526
Issued for distributions reinvested .... -- 416,077 -- 10,838 -- --
Shares redeemed ........................ -- (816,120) -- (100,254) -- (200,410)
Shares redesignated .................... -- 3,980,888++ -- (591,470) -- (334,859)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- 5,107,486 -- (232,948) -- (200,743)
-----------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 2,639,226 2,688,715 287,635 239,887 3,223 101,644
Issued for distributions reinvested .... 1,411,272 936,717 10,084 6,499 -- --
Shares redeemed ........................ (3,422,298) (2,700,838) (196,613) (218,737) (80,667) (77,172)
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 628,200 924,594 101,106 27,649 (77,444) 24,472
-----------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 162,392 2,217 70,652 5,863 7,967 7,919
Issued for distributions reinvested .... 5,719 -- 1,572 -- -- --
Shares redeemed ........................ (15,522) -- (9,740) -- (3) --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 152,589 2,217 62,484 5,863 7,964 7,919
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS (CONTINUED) MID-CAP SMALL-CAP S&P 500
CHANGES IN FUND SHARES VALUE EQUITY VALUE EQUITY INDEX
FUND FUND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999* 30, 2000 30, 1999** 30, 2000+
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 172,464 24,768 2,459,715 2,949,640 10,102,575
Issued for distributions reinvested .... 742 -- 174,829 3,803 --
Shares redeemed ........................ (64,861) (431) (1,682,856) (1,975,102) (7,231,953)
Shares redesignated .................... -- (24,337) -- (978,341) --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 108,345 -- 951,688 -- 2,870,622
----------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 22,892 18,136 1,180,874 2,198,692 --
Issued for distributions reinvested .... 41 -- 100,806 2,571 --
Shares redeemed ........................ (12,679) -- (1,101,154) (1,497,662) --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 10,254 18,136 180,526 703,601 --
----------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 65,504 -- 233,146 --
Issued for distributions reinvested .... -- -- -- 390 --
Shares redeemed ........................ -- (17,755) -- (12,291) --
Shares redesignated .................... -- 24,278++ -- 976,454++ --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- 72,027 -- 1,197,699 --
----------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 3 3,042,212 887,010 24,419 --
Issued for distributions reinvested .... 8,477 -- 4,084 60 --
Shares redeemed ........................ (4) (2,015,343) (114,831) (441) --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 8,476 1,026,869 776,263 24,038 --
----------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 62,304 7,165 12,221 5,790 --
Issued for distributions reinvested .... 198 -- 943 -- --
Shares redeemed ........................ (13,132) -- (7,066) -- --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 49,370 7,165 6,098 5,790 --
----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS (CONTINUED) GLOBAL INTERNATIONAL EUROPE
CHANGES IN FUND SHARES EQUITY EQUITY EQUITY
FUND FUND FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999***
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 1,307,254 48,986 3,914,975 1,334,667 267,331 10,935
Issued for distributions reinvested .... 133,023 3,004 95,441 44,756 520 --
Shares redeemed ........................ 1,126,056) (19,835) (3,714,381) (1,147,351) (98,554) --
Shares redesignated .................... -- (104,616) -- (1,353,542) -- (10,935)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 314,221 (72,461) 296,035 (1,121,470) 169,297 --
-------------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 43,961 20,327 38,058 26,476 18,680 14,584
Issued for distributions reinvested .... 6,182 2,351 4,073 2,374 22 --
Shares redeemed ........................ (17,374) (15,003) (26,839) (9,142) (5,335) (5)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 32,769 7,675 15,292 19,708 13,367 14,579
-------------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 175,894 -- 427,459 -- 57,157
Issued for distributions reinvested .... -- 58,628 -- 12,987 -- --
Shares redeemed ........................ -- (260,820) -- (386,521) -- (727)
Shares redesignated .................... -- 103,261++ -- 1,338,822++ -- 10,918++
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- 76,963 -- 1,392,747 -- 67,348
-------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 417,035 244,044 1,314,617 4,815,998 5,095,525 2,010,800
Issued for distributions reinvested .... 81,227 36,266 62,213 41,255 7,312 --
Shares redeemed ........................ (254,515) (149,704) (597,923) (4,679,403) (5,089,897) (1,000,000)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 243,747 130,606 778,907 177,850 12,940 1,010,800
-------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 3,896 2,809 15,572 3,964 7,007 7,085
Issued for distributions reinvested .... 261 -- 230 -- 41 --
Shares redeemed ........................ -- -- (4,385) -- (1) --
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 4,157 2,809 11,417 3,964 7,047 7,085
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS (CONTINUED) EMERGING PREMIER GROWTH
CHANGES IN FUND SHARES MARKETS EQUITY
FUND FUND
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999*** 30, 2000 30, 1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 677,841 11,173 2,521,621 591,449
Issued for distributions reinvested .... 8,371 -- 104,914 10,840
Shares redeemed ........................ (127,650) -- (986,923) (226,666)
Shares redesignated .................... -- (11,173) -- (672,983)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 558,562 -- 1,639,612 (297,360)
-----------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 29,204 16,837 902,439 483,216
Issued for distributions reinvested .... 1,302 -- 27,093 3,079
Shares redeemed ........................ (1,286) (29) (135,665) (14,847)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 29,220 16,808 793,867 471,448
-----------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 56,204 -- 1,148,329
Issued for distributions reinvested .... -- -- -- 24,527
Shares redeemed ........................ -- (573) -- (130,952)
Shares redesignated .................... -- 11,157++ -- 669,969++
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- 66,788 -- 1,711,873
-----------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 5,460,328 3,035,431 1,536,037 1,755,080
Issued for distributions reinvested .... 70,705 -- 29,162 11,802
Shares redeemed ........................ (5,343,962) (2,023,770) (1,267,484) (1,386,491)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 187,071 1,011,661 297,715 380,391
-----------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 4,018 5,185 107,962 2,594
Issued for distributions reinvested .... 366 -- 888 --
Shares redeemed ........................ -- -- (8,838) --
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 4,384 5,185 100,012 2,594
-----------------------------------------------------------------------------------------------------
<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.
+ For the period April 28, 2000 (inception) through September 30, 2000.
++ 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.
128 & 129
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS PREMIER PREMIER PREMIER
RESEARCH INTERNATIONAL VALUE
EQUITY FUND EQUITY FUND EQUITY FUND
----------------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000+ 30, 2000+ 30, 2000+
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 808 $ 57,204 $ 59,892
Net realized gain (loss) on investments, futures,
written options, foreign currency related
transactions and swaps .......... 127,717 (541,426) 11,320
Net increase (decrease) in
unrealized appreciation / depreciation (301,139) (1,088,524) 1,210,344
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations (172,614) (1,572,746) 1,281,556
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... -- -- --
Class B ......................... -- -- --
Class C ......................... -- -- --
Class C (level load) ............ -- -- --
Class Y ......................... -- -- --
In excess of net investment income
Class A ......................... -- -- --
Class B ......................... -- -- --
Class C ......................... -- -- --
Class C (level load) ............ -- -- --
Class Y ......................... -- -- --
Net realized gains
Class A ......................... -- -- --
Class B ......................... -- -- --
Class C ......................... -- -- --
Class C (level load) ............ -- -- --
Class Y ......................... -- -- --
----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. -- -- --
----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ (172,614) (1,572,746) 1,281,556
----------------------------------------------------------------------------------------------------------------
Proceeds from sale of shares
Class A ......................... 33,465,536 32,500,224 44,104,283
Class B ......................... 264,340 257,541 206,481
Class C ......................... -- -- --
Class C (level load) ............ 121,498 100,273 105,157
Class Y ......................... 100,070 100,070 100,070
Value of distributions reinvested
Class A ......................... -- -- --
Class B ......................... -- -- --
Class C ......................... -- -- --
Class C (level load) ............ -- -- --
Class Y ......................... -- -- --
Cost of shares redeemed
Class A ......................... (20,886,074) (20,646,741) (32,365,766)
Class B ......................... (4,246) (10) (10)
Class C ......................... -- -- --
Class C (level load) ............ (61) (10) (10)
Class Y ......................... (10) (10) (10)
Value of shares redesignated (Note 10)
Class A ......................... -- -- --
Class C ......................... -- -- --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions 13,061,053 12,311,337 12,150,195
----------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 12,888,439 10,738,591 13,431,751
NET ASSETS
Beginning of period ............... -- -- --
----------------------------------------------------------------------------------------------------------------
End of period ..................... $12,888,439 $10,738,591 $13,431,751
----------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 19,452 $ 125,330 $ 78,263
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
-------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 8,927,672 $ 6,918,570 $16,112,114 $ 19,990,938
Net realized gain (loss) on investments, futures,
written options, foreign currency related
transactions and swaps .......... (3,496,921) (1,557,765) (8,135,218) (3,802,551)
Net increase (decrease) in
unrealized appreciation / depreciation 3,487,706 (6,970,326) 6,286,974 (25,805,402)
-------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations 8,918,457 (1,609,521) 14,263,870 (9,617,015)
-------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... (5,758,338) (1,759,290) (5,143,977) (1,826,244)
Class B ......................... (133,338) (105,975) (12,657,996) (20,205,547)
Class C ......................... -- (3,068,814) -- (287,474)
Class C (level load) ............ (6,401) -- (2,439) --
Class Y ......................... (3,152,159) (2,028,088) -- --
In excess of net investment income
Class A ......................... -- -- -- (27,048)
Class B ......................... -- -- -- (299,260)
Class C ......................... -- -- -- (4,258)
Class C (level load) ............ -- -- -- --
Class Y ......................... -- -- -- --
Net realized gains
Class A ......................... -- -- -- --
Class B ......................... -- -- -- --
Class C ......................... -- -- -- --
Class C (level load) ............ -- -- -- --
Class Y ......................... -- -- -- --
-------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (9,050,236) (6,962,167) (17,804,412) (22,649,831)
-------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ (131,779) (8,571,688) (3,540,542) (32,266,846)
-------------------------------------------------------------------------------------------------------------------
Proceeds from sale of shares
Class A ......................... 28,880,314 16,074,155 85,368,939 18,299,359
Class B ......................... 450,443 1,661,775 947,663 1,564,140
Class C ......................... -- 25,941,359 -- 8,984,911
Class C (level load) ............ 291,616 70,000 8,169 70,000
Class Y ......................... 39,700,946 32,062,979 -- --
Value of distributions reinvested
Class A ......................... 5,029,447 1,744,421 3,365,815 1,212,950
Class B ......................... 120,881 92,742 6,819,460 11,006,743
Class C ......................... -- 2,520,894 -- 257,463
Class C (level load) ............ 6,126 -- 2,424 --
Class Y ......................... 3,116,605 2,015,869 -- --
Cost of shares redeemed
Class A ......................... (25,058,379) (19,846,087) (28,770,495) (7,089,591)
Class B ......................... (1,358,658) (604,323) (137,929,461) (113,282,929)
Class C ......................... -- (13,270,795) -- (1,741,911)
Class C (level load) ............ (70,528) -- (69,445) --
Class Y ......................... (19,925,233) (25,598,559) -- --
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 31,183,580 22,864,430 (70,256,931) (80,718,865)
-------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 31,051,801 14,292,742 (73,797,473) (112,985,711)
NET ASSETS
Beginning of period ............... 131,292,636 116,999,894 312,202,182 425,187,893
-------------------------------------------------------------------------------------------------------------------
End of period ..................... $162,344,437 $131,292,636 $238,404,709 $312,202,182
-------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 499,466 $ 260,617 $ 188,734 $ (276,571)
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS SHORT-TERM GE HIGH
GOVERNMENT TAX-EXEMPT YIELD
FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999*
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 3,255,293 $ 1,202,021 $ 1,110,824 $ 1,294,730 $ 2,508,154 $ 1,185,368
Net realized gain (loss) on investments, futures,
written options, foreign currency related
transactions and swaps .......... (307,405) 116,762 (314,048) (161,812) (247,994) (160,680)
Net increase (decrease) in
unrealized appreciation / depreciation 554,437 (670,369) 326,240 (1,896,136) (2,691,521) (880,771)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations 3,502,325 648,414 1,123,016 (763,218) (431,361) 143,917
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... (1,271,321) (419,703) (854,370) (271,001) (437,925) (5,379)
Class B ......................... (23,799) (30,624) (251,418) (307,436) (63,824) (5,478)
Class C ......................... -- (470,958) -- (715,149) -- (60,256)
Class C (level load) ............ (6,047) -- (3,810) -- (65,416) --
Class Y ......................... (1,959,995) (283,959) (1,229) (1,147) (1,956,386) (1,114,255)
In excess of net investment income
Class A ......................... -- -- -- -- -- --
Class B ......................... -- -- -- -- -- --
Class C ......................... -- -- -- -- -- --
Class C (level load) ............ -- -- -- -- -- --
Class Y ......................... -- -- -- -- -- --
Net realized gains
Class A ......................... (25,818) (38,417) -- -- -- --
Class B ......................... (541) (3,579) -- -- -- --
Class C ......................... -- (37,788) -- -- -- --
Class C (level load) ............ (115) -- -- -- -- --
Class Y ......................... (3,090) (32,682) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (3,290,726) (1,317,710) (1,110,827) (1,294,733) (2,523,551) (1,185,368)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ 211,599 (669,296) 12,189 (2,057,951) (2,954,912) (1,041,451)
------------------------------------------------------------------------------------------------------------------------------------
Proceeds from sale of shares
Class A ......................... 13,128,046 3,527,565 5,296,750 749,798 6,530,900 140,749
Class B ......................... 265,425 295,325 318,608 603,787 1,218,673 171,010
Class C ......................... -- 6,646,546 -- 12,388,023 -- 1,949,270
Class C (level load) ............ 361,742 70,000 100,148 70,000 1,132,704 70,000
Class Y ......................... 53,851,214 1,694,190 30 -- 3,113,478 20,000,160
Value of distributions reinvested
Class A ......................... 1,197,066 441,082 639,239 54,219 324,867 4,971
Class B ......................... 20,738 29,138 173,468 214,362 17,854 5,225
Class C ......................... -- 467,900 -- 624,445 -- 28,202
Class C (level load) ............ 5,964 -- 3,735 -- 23,943 --
Class Y ......................... 1,917,867 316,658 1,222 1,142 1,944,059 1,095,962
Cost of shares redeemed
Class A ......................... (15,310,144) (1,686,423) (8,638,554) (294,952) (1,162,812) --
Class B ......................... (576,637) (557,985) (2,356,703) (1,970,806) (209,552) (16,486)
Class C ......................... -- (2,909,386) -- (6,244,697) -- (126,444)
Class C (level load) ............ (316,627) -- (70,507) -- (93,991) --
Class Y ......................... (9,871,543) (8,149,832) (157) (6) (141,817) --
Value of shares redesignated (Note 10)
Class A ......................... -- (10,939,300) -- 16,384,881 -- (140,479)
Class C ......................... -- 10,939,300 -- (16,384,881) -- 140,479
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions 44,673,111 184,778 (4,532,721) 6,195,315 12,698,306 23,322,619
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 44,884,710 (484,518) (4,520,532) 4,137,364 9,743,394 22,281,168
NET ASSETS
Beginning of period ............... 26,957,084 27,441,602 29,590,965 25,453,601 22,281,168 --
------------------------------------------------------------------------------------------------------------------------------------
End of period ..................... $71,841,794 $26,957,084 $25,070,433 $29,590,965 $32,024,562 $22,281,168
------------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 15,804 $ 21,673 $ 76,818 $ 76,821 $ 179,355 $ 19,810
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS STRATEGIC MONEY
INVESTMENT MARKET
FUND FUND**
-----------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income / (loss) .... $ 5,110,486 $ 3,738,566 $ 13,234,931 $ 7,997,170
Net realized gain (loss) on investments, futures,
written options, foreign currency related
transactions and swaps .......... 14,465,547 7,695,420 -- --
Net increase (decrease) in
unrealized appreciation / depreciation 6,201,425 10,855,622 -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations 25,777,458 22,289,608 13,234,931 7,997,170
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ......................... (2,169,346) (638,181) (13,235,011) (7,998,158)
Class B ......................... (264,181) (195,368) -- --
Class C ......................... -- (1,188,354) -- --
Class C (level load) ............ (4,264) -- -- --
Class Y ......................... (1,416,422) (1,334,185) -- --
In excess of net investment income
Class A ......................... -- -- -- --
Class B ......................... -- -- -- --
Class C ......................... -- -- -- --
Class C (level load) ............ -- -- -- --
Class Y ......................... -- -- -- --
Net realized gains
Class A ......................... (4,392,881) (2,732,777) -- --
Class B ......................... (717,573) (1,006,283) -- --
Class C ......................... -- (4,382,836) -- --
Class C (level load) ............ (7,991) -- -- --
Class Y ......................... (2,514,509) (4,474,829) -- --
-----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................. (11,487,167) (15,952,813) (13,235,011) (7,998,158)
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations and distributions ........ 14,290,291 6,336,795 (80) (988)
-----------------------------------------------------------------------------------------------------------------------
Proceeds from sale of shares
Class A ......................... 34,348,783 8,326,786 478,683,865 368,131,388
Class B ......................... 6,102,581 4,870,311 -- --
Class C ......................... -- 23,300,754 -- --
Class C (level load) ............ 2,323,941 70,000 -- --
Class Y ......................... 13,080,715 15,731,664 -- --
Value of distributions reinvested
Class A ......................... 6,392,931 3,366,398 12,458,869 7,631,458
Class B ......................... 927,614 1,124,159 -- --
Class C ......................... -- 5,427,453 -- --
Class C (level load) ............ 12,253 -- -- --
Class Y ......................... 3,931,461 5,809,005 -- --
Cost of shares redeemed
Class A ......................... (27,235,062) (8,854,818) (418,412,087) (333,271,857)
Class B ......................... (3,405,297) (1,181,212) -- --
Class C ......................... -- (10,237,274) -- --
Class C (level load) ............ (222,532) -- -- --
Class Y ......................... (14,061,637) (13,089,905) -- --
Value of shares redesignated (Note 10)
Class A ......................... -- (37,490,879) -- --
Class C ......................... -- 37,490,879 -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions 22,195,751 34,663,321 72,730,647 42,490,989
-----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 36,486,042 41,000,116 72,730,567 42,490,001
NET ASSETS
Beginning of period ............... 186,190,483 145,190,367 196,155,299 153,665,298
-----------------------------------------------------------------------------------------------------------------------
End of period ..................... $222,676,525 $186,190,483 $268,885,866 $196,155,299
-----------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET
INVESTMENT INCOME, END OF YEAR ...... $ 4,181,549 $ 2,907,036 $ 58,994 $ 59,091
<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.
+ For the period April 28, 2000 (inception) through September 30, 2000.
</FN>
</TABLE>
-----------
See Notes to Financial Statements.
130 & 131
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE GE
IN NET ASSETS (CONTINUED) PREMIER PREMIER PREMIER FIXED
CHANGES IN FUND SHARES RESEARCH INTERNATIONAL VALUE INCOME
EQUITY FUND EQUITY FUND EQUITY FUND FUND
--------------------------------------------------------------------------------------------------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 + 30, 2000 + 30, 2000 + 30, 2000 30, 1999
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 3,256,830 3,192,742 4,176,641 2,486,291 1,309,417
Issued for distributions reinvested .... -- -- -- 434,027 144,112
Shares redeemed ........................ (2,002,491) (2,003,982) (3,005,500) (2,163,024) (1,640,540)
Shares redesignated .................... -- -- -- -- (2,632,817)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 1,254,339 1,188,760 1,171,141 757,294 (2,819,828)
--------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 26,245 25,984 20,501 38,630 137,143
Issued for distributions reinvested .... -- -- -- 10,429 7,685
Shares redeemed ........................ (393) (1) (1) (117,307) (50,180)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 25,852 25,983 20,500 (68,248) 94,648
--------------------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- -- -- -- 2,128,616
Issued for distributions reinvested .... -- -- -- -- 208,804
Shares redeemed ........................ -- -- -- -- (1,093,325)
Shares redesignated .................... -- -- -- -- 2,630,335++
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- -- -- -- 3,874,430
--------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 10,007 10,007 10,007 3,437,151 2,627,378
Issued for distributions reinvested .... -- -- -- 269,121 166,900
Shares redeemed ........................ (1) (1) (1) (1,721,915) (2,117,582)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 10,006 10,006 10,006 1,984,357 676,696
--------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 12,081 10,028 10,509 25,026 5,947
Issued for distributions reinvested .... -- -- -- 528 --
Shares redeemed ........................ (6) (1) (1) (6,096) --
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 12,075 10,027 10,508 19,458 5,947
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE
IN NET ASSETS (CONTINUED) GOVERNMENT SHORT-TERM GE
CHANGES IN FUND SHARES SECURITIES GOVERNMENT TAX-EXEMPT
FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 10,715,569 2,201,504 1,129,607 298,453 480,624 65,078
Issued for distributions reinvested .... 421,712 143,852 103,037 37,352 58,062 4,762
Shares redeemed ........................ (3,611,149) (847,660) (1,319,773) (142,583) (784,415) (25,923)
Shares redesignated .................... -- 992,629 -- (934,532) -- 1,467,916
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 7,526,132 2,490,325 (87,129) (741,310) (245,729) 1,511,833
-----------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 117,142 181,816 22,857 24,906 29,200 51,615
Issued for distributions reinvested .... 847,818 1,290,547 1,787 2,467 15,775 18,557
Shares redeemed ........................ (17,149,479) (13,346,412) (49,647) (47,118) (214,404) (170,051)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . (16,184,519) (11,874,049) (25,003) (19,745) (169,429) (99,879)
-----------------------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 895,961 -- 563,042 -- 1,014,919
Issued for distributions reinvested .... -- 26,136 -- 39,627 -- 52,155
Shares redeemed ........................ -- (175,695) -- (246,049) -- (532,407)
Shares redesignated .................... -- (839,779) -- 933,786++ -- (1,412,373)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- (93,377) -- 1,290,406 -- (877,706)
-----------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ -- -- 4,646,365 143,939 2 --
Issued for distributions reinvested .... -- -- 165,304 26,772 107 95
Shares redeemed ........................ -- -- (851,906) (688,818) (13) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- -- 3,959,763 (518,107) 96 95
-----------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 1,005 8,537 31,074 5,983 9,196 6,289
Issued for distributions reinvested .... 301 -- 514 -- 339 --
Shares redeemed ........................ (8,638) -- (27,210) -- (6,415) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . (7,332) 8,537 4,378 5,983 3,120 6,289
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES GE GE GE
IN NET ASSETS (CONTINUED) HIGH STRATEGIC MONEY
CHANGES IN FUND SHARES YIELD INVESTMENT MARKET
FUND FUND FUND**
------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER
30, 2000 30, 1999 30, 2000 30, 1999 30, 2000 30, 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A (NOTE 10):
Shares sold ............................ 689,772 14,219 1,315,556 331,745 478,683,865 368,126,450
Issued for distributions reinvested .... 35,354 505 257,151 142,765 12,458,869 7,630,908
Shares redeemed ........................ (123,345) -- (1,050,173) (353,840)(418,412,087) (333,266,918)
Shares redesignated .................... -- (14,724) -- (1,481,299) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 601,781 -- 522,534 (1,360,629) 72,730,647 42,490,440
------------------------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ............................ 129,073 17,336 237,855 197,491 -- --
Issued for distributions reinvested .... 1,931 532 38,126 48,393 -- --
Shares redeemed ........................ (22,758) (1,725) (133,234) (48,091) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 108,246 16,143 142,747 197,793 -- --
------------------------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ............................ -- 198,263 -- 924,935 -- --
Issued for distributions reinvested .... -- 2,898 -- 229,489 -- --
Shares redeemed ........................ -- (13,248) -- (405,876) -- --
Shares redesignated .................... -- 14,728++ -- 1,474,104++ -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . -- 202,641 -- 2,222,652 -- --
------------------------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ............................ 328,842 2,000,016 495,258 630,397 -- --
Issued for distributions reinvested .... 209,537 111,460 158,143 245,520 -- --
Shares redeemed ........................ (15,586) -- (539,160) (518,456) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 522,793 2,111,476 114,241 357,461 -- --
------------------------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ............................ 117,251 7,345 92,967 2,863 -- --
Issued for distributions reinvested .... 2,580 -- 507 -- -- --
Shares redeemed ........................ (10,062) -- (8,680) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares . 109,769 7,345 84,794 2,863 -- --
------------------------------------------------------------------------------------------------------------------------------------
<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.
+ For the period April 28, 2000 (inception) through September 30, 2000.
++ 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.
132 & 133
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
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 twenty-two
investment portfolios (each a "Fund" and collectively the "Funds"), although
only the following twenty-one are currently being offered: GE U.S. Equity Fund,
GE Value Equity Fund, GE Mid-Cap Growth Fund, GE Mid-Cap Value Equity Fund, GE
Small-Cap Value Equity Fund, GE S&P 500 Index Fund, GE Global Equity Fund, GE
International Equity Fund, GE Europe Equity Fund, GE Emerging Markets Fund, GE
Premier Growth Equity Fund, GE Premier Research Equity Fund, GE Premier
International Equity Fund, GE Premier Value Equity Fund, GE Fixed Income Fund,
GE Government Securities Fund, GE Short-Term Government Fund, GE Tax-Exempt
Fund, GE High Yield Fund, GE Strategic Investment Fund and GE Money Market Fund.
The Funds (except GE S&P 500 Index Fund and GE Money Market Fund) are presently
authorized to issue four classes of shares. As of September 30, 2000, each Fund
had four share classes active, except for GE Government Securities Fund, which
had only three classes active.
GE Investment Management Incorporated, the Funds' investment advisor and a
wholly-owned subsidiary of General Electric Company, changed its name to GE
Asset Management Incorporated ("GEAM") effective January 28, 2000.
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 Value Equity Fund GE Government
Securities Fund
GE Mid-Cap Growth Fund GE Tax-Exempt Fund
GE Mid-Cap Value GE High Yield Fund
Equity Fund
GE Small-Cap Value
Equity Fund
GE Global Equity Fund
GE International
Equity Fund
5.75% 4.25% 2.50%
--------------------------------------------------------------------------------
GE Europe Equity Fund
GE Emerging Markets Fund
GE Premier Growth
Equity Fund
GE Premier Research
Equity Fund
GE Premier International
Equity Fund
GE Premier Value Equity 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 Value Equity Fund
GE Short-Term Government Fund GE Mid-Cap Growth Fund
GE Tax-Exempt Fund GE Mid-Cap Value Equity Fund
GE High Yield Fund GE Small-Cap Value Equity Fund
GE Global Equity Fund
GE International Equity Fund
GE Europe Equity Fund
GE Emerging Markets Fund
GE Premier Growth Equity Fund
GE Premier Research Equity Fund
GE Premier International Equity Fund
GE Premier Value Equity 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
134
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
year, 3.00% within the third year, 2.00% within the fourth year, 1.00% within
the fifth year, and 0.00% thereafter.
The maximum contingent deferred sales charge imposed on Class C (level load)
redemptions for all Funds is 1.00% within the first year of purchase 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 or shares of GE S&P 500 Index Fund or 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.
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
Each of the Funds may loan securities to brokers, dealers, and financial
institutions determined by GEAM to be creditworthy, subject to certain
limitations. The Funds continue to receive 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 Funds 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.
135
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
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 such transactions.
The Funds do not isolate the portion of the results of operations resulting from
changes in foreign exchange rates from the fluctuations arising from changes in
market prices of securities during the period. 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 rates are included as increases or
decreases in unrealized appreciation/depreciation on foreign currency related
transactions.
FINANCIAL FUTURES CONTRACTS AND OPTIONS
FUTURES CONTRACTS
Certain Funds may invest in interest rate, financial and stock or bond index
futures contracts subject to certain limitations. The Funds may invest in
futures contracts to manage their exposure to the stock and bond markets and
fluctuations in currency values. Buying futures tends to increase a Fund's
exposure to the underlying instrument while selling futures tends 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 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 the 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.
Upon entering into a 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, known as initial margin deposit. Subsequent payments, known
as variation margin, 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 futures contracts and may incur a loss. The Funds recognize a
realized gain or loss on the expiration or closing of a futures contract.
OPTIONS
Certain Funds may purchase and write options, subject to certain limitations.
The Funds may invest in options contracts to manage their exposure to the stock
and bond markets and fluctuations in currency values. Writing puts and buying
calls tend to increase a Fund's exposure to the underlying instrument while
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 options 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 the secondary market for the contracts. Options
are valued at the last sale price, or if no sales occurred on that day, at the
last quoted bid price.
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.
136
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
SWAP CONTRACTS
Certain Funds may invest in swap agreements. A swap agreement is an agreement to
exchange the return generated by one instrument for the return generated by
another instrument. The Funds may enter into total return swaps as part of their
investment strategies. Total return swap agreements involve commitments to pay
interest in exchange for a market linked return based upon a notional principal
amount. To the extent the total return of the security or index underlying the
agreement exceeds or falls short of the offsetting interest rate obligation, the
Funds will receive a payment from or make a payment to the counterparty.
Payments received or made are recorded as realized gain or loss in the Statement
of Operations. Entering into swap agreements involves, to varying degrees,
elements of credit and market risk in excess of the amounts recognized on the
Statement of Assets and Liabilities. Such risks involve the possibility that
there will be no liquid market for these agreements, that the counterparty to
the agreements may default on its obligation to perform and that there may be
unfavorable changes in the value of the index or securities underlying the
agreement. Notional principal amounts are used to express the extent of
involvement in these transaction, but the amounts potentially subject to credit
risk are much smaller.
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS
Each of 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 transactions. 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 the contracts are
closed, when they are recorded as realized gains or losses on foreign currency
related transactions. 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 Funds may be subject to capital gains and repatriation taxes imposed by
certain countries in which they invest. Such taxes are generally based on income
and/or capital gains earned or repatriated. Taxes are accrued based upon net
investment income, net realized gains and net unrealized appreciation as income
and/or capital gains are earned. At September 30, 2000, the GE Emerging Markets
Fund has recorded a deferred tax accrual of $60,996 with
137
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
respect to unrealized appreciation on applicable investments in securities.
These accruals are included in net realized and unrealized gain (loss) on
investments in the Statement 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, 2000, 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
437,039 2008
GE Fixed Income Fund 182,527 2003
38,636 2004
445,270 2005
2,159,439 2008
GE Government
Securities Fund 78,123,796 2002
107,525,597 2003
1,748,819 2004
6,478,543 2008
GE Short-Term
Government Fund 12,130 2008
GE Money Market Fund 3,153 2003
5,688 2005
GE High Yield Fund 176,620 2008
The GE Mid-Cap Growth Fund utilized $1,693,901 of its capital loss carryovers
during the current year.
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, 1999
as follows:
FUND CURRENCY CAPITAL
--------------------------------------------------------------------------------
GE International Equity Fund $ 67,273 --
GE Global Equity Fund 119,911 --
GE Value Equity Fund 216 --
GE Strategic Investment Fund 43,928 --
GE Tax-Exempt Fund -- 120,343
GE Fixed Income Fund -- 3,522,923
GE Government
Securities Fund -- 7,452,592
GE Short-Term
Government Fund -- 303,866
GE High Yield Fund -- 409,099
GE Europe Equity Fund 19,014 --
GE Emerging Markets Fund 24,845 --
GE Premier Value Equity Fund -- 11,965
GE Premier International
Equity Fund -- 547,641
GE S & P 500 Index Fund -- 4,049
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 (but are not limited to) swaps,
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 projec-
138
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
tions 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 GEAM, and reimbursed by the Funds.
DEFERRED ORGANIZATIONAL COSTS
Organizational expenses applicable to the GE Premier Growth Equity Fund 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, 2000, the following Funds participated in securities lending:
LOANED SECURITIES
(INCLUDING CASH
ACCRUED INTEREST) COLLATERAL
--------------------------------------------------------------------------------
GE Fixed Income
Fund: $20,246,531 $20,609,087
GE Government
Securities Fund: 74,144,645 75,471,745
GE Short-Term
Government Fund: 17,837,932 18,163,701
4. FEES AND COMPENSATION
PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION
AND OTHER OPERATING FEES
Compensation of GEAM for investment advisory and administrative services is paid
monthly based on the average daily net assets of each Fund. Until further
notice, GEAM 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% .25%
GE Value Equity Fund .55% .30%
GE Mid-Cap Growth Fund .60% .30%
GE Mid-Cap Value
Equity Fund** .80% .25%
GE Small-Cap Value
Equity Fund .70% .20%
GE S&P 500 Index Fund .30% .15%
GE Global Equity Fund .75% .35%
GE International Equity Fund .80% .30%
GE Europe Equity Fund** 1.05% .30%
GE Emerging Markets Fund** 1.20% .30%
GE Premier Growth
Equity Fund .60% .30%
GE Premier Research
Equity Fund .70% .25%
GE Premier International
Equity Fund .80% .25%
GE Premier Value
Equity Fund .60% .25%
GE Fixed Income Fund .35% .20%
GE Government
Securities Fund .40% .20%
GE Short-Term
Government Fund .30% .15%
GE Tax-Exempt Fund .35% .25%
GE High Yield Fund** .60% .20%
GE Strategic Investment Fund .35% .30%
GE Money Market Fund .25% .25%
* AFTER REIMBURSEMENT, IF ANY
** THESE FIGURES DO NOT REFLECT (I) A .15% REDUCTION OF INVESTMENT MANAGEMENT
FEES FOR THE GE MID-CAP VALUE EQUITY FUND, GE EUROPE EQUITY FUND AND GE
EMERGING MARKETS FUND AND (II) A .10% REDUCTION OF INVESTMENT MANAGEMENT FEES
FOR THE GE HIGH YIELD FUND FOR THE PERIOD OCTOBER 1, 1999 THROUGH APRIL 16,
2000. THIS REDUCTION WAS DISCONTINUED EFFECTIVE APRIL 17, 2000.
139
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
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 S&P 500 Index Fund and GE Money Market Fund. Each Fund pays GE
Investment Distributors, Inc. ("GEID"), a wholly-owned subsidiary of GE
Financial Assurance Holdings, Inc. (an indirect wholly-owned subsidiary of
General Electric Company) and the Funds' principal underwriter, a monthly fee
for distribution and/or shareholder services provided, at an annual rate of the
average daily net assets attributable to each applicable class of shares. The
annual rates applicable are: 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
GEAM 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, 2000, the Trust was informed that GEID acting
as underwriter received net commissions of $760,616 from the sale of Class A
shares and $354,959 in contingent deferred sales charges from redemptions of
Class A, Class B and Class C shares.
5. SUB-ADVISORY FEES
Pursuant to investment sub-advisory agreements with GEAM, 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; State Street Global Advisors
("SSgA") is the sub-adviser to the GES&P 500 Index Fund; and Miller Anderson &
Sherrerd, LLP ("MAS") is the sub-adviser to the GE High Yield Fund.
Brown Brothers, Palisade, NWQ, SSgA 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, the GE S&P 500 Index 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 GEAM and the Board.
For their services, GEAM pays Brown Brothers, Palisade, NWQ, SSgA and MAS
monthly sub-advisory fees which are calculated as a percentage of the average
daily net assets of the respective funds.
Effective October 1, 2000, GEAM, as Investment Adviser to GE Mid-Cap Value
Equity Fund and GE Tax-Exempt Fund, will assume day-to-day portfolio management
responsibility from NWQ and Brown Brothers, the current Sub-Advisers to GE
Mid-Cap Value Equity Fund and GE Tax-Exempt Fund, respectively.
6. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at September 30, 2000, were as follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
--------------------------------------------------------------------------------
GE U.S. Equity Fund $169,234,164 $31,181,155 $138,053,009
GE Value Equity Fund 21,582,402 3,853,276 17,729,126
GE Mid-Cap
Growth Fund 9,718,920 2,785,152 6,933,768
GE Mid-Cap Value
Equity Fund 2,145,012 1,623,679 521,333
GE Small-Cap Value
Equity Fund 7,151,301 1,878,343 5,272,958
GE S&P 500 Index Fund 2,491,123 2,828,263 (337,140)
GE Global Equity Fund 11,499,091 5,042,597 6,456,494
140
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
--------------------------------------------------------------------------------
GE International
Equity Fund $ 7,413,304 $4,955,435 $ 2,457,869
GE Europe Equity Fund 1,692,050 1,056,474 635,576
GE Emerging
Markets Fund 3,341,021 3,700,912 (359,891)
GE Premier Growth
Equity Fund 32,665,104 9,965,902 22,699,202
GE Premier Research
Equity Fund 1,057,021 1,358,160 (301,139)
GE Premier International
Equity Fund 291,628 1,379,828 (1,088,200)
GE Premier Value
Equity Fund 1,891,506 681,162 1,210,344
GE Fixed Income Fund 1,419,489 1,984,022 (564,533)
GE Government
Securities Fund 3,610,408 1,981,734 1,628,674
GE Short-Term
Government Fund 398,097 99,574 298,523
GE Tax-Exempt Fund 245,912 374,196 (128,284)
GE High Yield Fund 422,483 4,045,835 (3,623,352)
GE Strategic
Investment Fund 40,991,856 8,124,303 32,867,553
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at September 30, 2000.
7. OPTIONS
During the period ended September 30, 2000, 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, 1999 -- $ -- -- $ --
Written 1,420 3,106 2,690 5,884
Closed and Expired (1,420) (3,106) (2,690) (5,884)
Exercised -- -- -- --
--------------------------------------------------------------------------------
Balance as of
September 30, 2000 -- $ -- -- $ --
--------------------------------------------------------------------------------
GE GOVERNMENT GE SMALL CAP
SECURITIES FUND VALUE EQUITY FUND
--------------------------------------------------------------------------------
NUMBER NUMBER
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
--------------------------------------------------------------------------------
Balance as of
September 30, 1999 -- $ -- -- $ --
Written 6,430 14,066 1,621 738,765
Closed and Expired (6,430) (14,066) (1,277) (563,848)
Exercised -- -- (251) (158,715)
--------------------------------------------------------------------------------
Balance as of
September 30, 2000 -- $ -- 93 $ 16,202
--------------------------------------------------------------------------------
GE EMERGING MARKETS FUND
--------------------------------------------------------------------------------
NUMBER
OF CONTRACTS PREMIUM
--------------------------------------------------------------------------------
Balance as of
September 30, 1999 -- $ --
Written 6 4,968
Closed and Expired (6) (4,968)
Exercised -- --
--------------------------------------------------------------------------------
Balance as of
September 30, 2000 -- $ --
--------------------------------------------------------------------------------
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, 2000, were
as follows:
PURCHASES SALES
--------------------------------------------------------------------------------
GE U.S. Equity Fund $365,967,079 $381,932,009
GE Value Equity Fund 44,034,382 44,994,842
GE Mid-Cap Growth Fund 16,300,538 20,856,794
GE Mid-Cap Value
Equity Fund 5,086,597 4,096,273
GE Small-Cap Value
Equity Fund 104,541,055 82,466,411
GE S&P 500 Index Fund 29,052,761 1,627,857
GE Global Equity Fund 68,725,541 59,843,837
GE International Equity Fund 71,726,022 55,225,174
GE Europe Equity Fund 14,992,780 13,079,849
GE Emerging Markets Fund 25,105,583 13,768,217
GE Premier Growth
Equity Fund 113,840,151 34,981,013
GE Premier Research
Equity Fund 17,363,700 4,546,891
GE Premier International
Equity Fund 15,110,375 2,895,810
GE Premier Value
Equity Fund 15,278,366 3,779,709
141
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
PURCHASES SALES
--------------------------------------------------------------------------------
GE Fixed Income Fund $ 345,640,655 $309,484,633
GE Government
Securities Fund 200,108,092 243,469,877
GE Short-Term
Government Fund 135,668,626 90,098,541
GE Tax-Exempt Fund 10,850,147 14,871,960
GE High Yield Fund 20,898,168 9,443,772
GE Strategic
Investment Fund 220,258,785 204,720,121
Open swap transactions held by the Funds consisted of the following as of
September 30, 2000:
GE FIXED INCOME FUND
NOTIONAL AMOUNT
Total Return Swap with Morgan
Stanley Capital Services Inc. on
the Lehman Brothers Asset
Backed Securities Index. Fund
receives/pays the positive/negative
return on the Index and pays
one month LIBOR minus 35
basis points monthly, expires
January 31, 2001. $ 2,200,000
Total Return Swap with Morgan
Stanley Capital Services Inc. on
the investment grade portion of
the Lehman Brothers CMBS Index.
Fund receives/pays the positive/
negative return on the Index and
pays one month LIBOR minus 35
basis points monthly, expires
June 29, 2001. 2,758,000
GE STRATEGIC INVESTMENT FUND
NOTIONAL AMOUNT
Total Return Swap with Morgan
Stanley Capital Services Inc. on
the Lehman Brothers Asset Backed
Securities Index. Fund receives/
pays the positive/negative return
on the Index and pays one month
LIBOR minus 35 basis points monthly,
expires January 31, 2001. $1,025,000
NOTIONAL AMOUNT
Total Return Swap with Morgan
Stanley Capital Services Inc. on
the investment grade portion of
the Lehman Brothers CMBS Index.
Fund receives/pays the positive/
negative return on the Index and
pays one month LIBOR minus 35
basis points monthly, expires
June 29, 2001. $1,578,000
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, 2000 are:
5% OR GREATER SHAREHOLDERS
------------------------- % OF FUND HELD
NUMBER % OF FUND HELD BY GE AFFILIATES*
--------------------------------------------------------------------------------
GE U.S. Equity Fund 3 23% 23%
GE Value Equity Fund 1 6% 6%
GE Mid-Cap
Growth Fund 1 19% 19%
GE Mid-Cap Value
Equity Fund 1 80% 80%
GE Small-Cap Value
Equity Fund 3 54% 54%
GE S&P 500 Index Fund 1 84% 84%
GE Global Equity Fund 2 33% --
GE International
Equity Fund 5 43% 43%
GE Europe Equity Fund 1 79% 79%
GE Emerging
Markets Fund 1 58% 58%
GE Premier Research
Equity Fund 1 79% 79%
GE Premier International
Equity Fund 1 84% 84%
GE Premier Value
Equity Fund 1 85% 85%
GE Fixed Income Fund 3 25% 25%
GE Short-Term
Government Fund 2 70% 5%
GE Tax-Exempt Fund 2 14% --
GE High Yield Fund 3 75% 75%
GE Strategic
Investment Fund 3 22% 22%
GE Money Market Fund 1 12% --
142
<PAGE>
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2000
The GE LifeStyle Moderate Strategy Fund, an open-ended management investment
company operating as a "fund of funds," that is advised by GEAM, 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
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 merged
into Class C shares and 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 merged 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. 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). 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 pay 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.
143
<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, 2000, and the results of their operations,
the changes in their net assets and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America. 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 auditing standards generally accepted in
the United States of America, which require that we plan and perform the audits
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 securities at September 30, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 17, 2000
144
<PAGE>
TAX INFORMATION, UNAUDITED
For the ordinary income distributions paid by the following Funds during the
year ended September 30, 2000, the total amount of qualified passive income per
share received from sources within foreign countries and possessions of the
United States and total amount of taxes paid per share by the Funds to such
countries was as follows:
FOREIGN SOURCE TAXES PAID
FUND INCOME PER SHARE PER SHARE
--------------------------------------------------------------------------------
GE Global Equity Fund $0.34988 $0.04088
GE International Equity Fund $0.33771 $0.04109
GE Emerging Markets Fund $0.13363 $0.04286
GE Europe Equity Fund $0.20230 $0.02362
Of the dividends paid from net investment income by the GE Tax-Exempt Fund for
the tax period ended September 30, 2000, 99.56% represents exempt interest
dividends for Federal income tax purposes.
During the year ended September 30, 2000, the following Funds paid to
shareholders of record on December 1, 1999 the following long-term capital gain
dividends reported on Forms 1099-DIV for 1999.
FUND PER SHARE AMOUNT
--------------------------------------------------------------------------------
GE International Equity Fund $0.79180
GE Global Equity Fund 2.30005
GE Premier Growth Equity Fund 0.95290
GE U.S. Equity Fund 3.53905
GE Value Equity Fund 0.71610
GE Strategic Investment Fund 0.99199
GE Small-Cap Value Fund 0.00849
Please consult a tax advisor 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.
145
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146
<PAGE>
[This page is left intentionally blank.]
147
<PAGE>
GE FUNDS' INVESTMENT TEAM
PORTFOLIO MANAGERS
GE U.S. EQUITY FUND
Team led by Eugene K. Bolton
GE VALUE EQUITY FUND
Peter J. Hathaway
GE MID-CAP GROWTH FUND
Ralph E. Whitman, Jr.
GE MID-CAP VALUE EQUITY FUND
Ralph E. Whitman, Jr.
GE SMALL-CAP VALUE EQUITY FUND
Investment Committee:
Jack Feiler
Martin L. Berman
Steven E. Berman
Richard Meisenberg -
Palisade Capital Management, L.L.C.
GE S&P 500 INDEX FUND
James B. May - State Street Global Advisors
GE GLOBAL EQUITY FUND
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 PREMIER GROWTH EQUITY FUND
David B. Carlson
GE PREMIER RESEARCH EQUITY FUND
Christopher Brown
Richard Sanderson
GE PREMIER INTERNATIONAL EQUITY FUND
Brian Hopkinson
GE PREMIER VALUE EQUITY FUND
Paul Reinhardt
GE FIXED INCOME FUND
GE GOVERNMENT SECURITIES FUND
GE SHORT-TERM GOVERNMENT FUND
Team led by Robert A. MacDougall
GE TAX-EXEMPT FUND
Michael J. Caufield
GE HIGH YIELD FUND
Robert E. Angevine
Thomas L. Bennett
Stephen F. Esser -
Miller Anderson & Sherrerd, LLP
GE STRATEGIC INVESTMENT FUND
David B. Carlson
Ralph R. Layman
Robert A. MacDougall
GE MONEY MARKET FUND
Team led by Robert A. MacDougall
INVESTMENT ADVISER
AND ADMINISTRATOR
GE Asset 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
148
<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 Asset Management 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 ASSET MANAGEMENT INCORPORATED
3003 SUMMER STREET
STAMFORD, CT 06905
DISTRIBUTOR
GE INVESTMENT DISTRIBUTORS, INC.
MEMBER NASD AND SIPC
777 LONG RIDGE ROAD
STAMFORD, CT 06927
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO LIFE.
