GE FUNDS
SEMI-ANNUAL REPORT
MARCH 31, 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 PREMIER GROWTH EQUITY FUND .................... 8
GE VALUE EQUITY FUND ............................. 11
GE MID-CAP GROWTH FUND ........................... 16
GE MID-CAP VALUE EQUITY FUND ..................... 20
GE SMALL-CAP VALUE EQUITY FUND ................... 23
GE GLOBAL EQUITY FUND ............................ 27
GE INTERNATIONAL EQUITY FUND ..................... 32
GE EUROPE EQUITY FUND ............................ 37
GE EMERGING MARKETS FUND ......................... 41
GE STRATEGIC INVESTMENT FUND ..................... 47
GE INCOME FUNDS .................................. 57
[BULLET] GE FIXED INCOME FUND
[BULLET] GE GOVERNMENT SECURITIES FUND
[BULLET] GE SHORT-TERM GOVERNMENT FUND
GE TAX-EXEMPT FUND ............................... 71
GE HIGH YIELD FUND ............................... 75
GE MONEY MARKET FUND ............................. 81
NOTES TO PERFORMANCE ............................. 83
NOTES TO SCHEDULES OF INVESTMENTS ................ 84
FINANCIAL STATEMENTS
Financial Highlights ............................. 85
Notes to the Financial Highlights ................ 99
Statements of Assets and Liabilities, Operations,
and Changes in Net Assets ........................100
NOTES
Notes to the Financial Statements ................116
GE FUNDS' INVESTMENT TEAM .............................128
SHAREHOLDER INQUIRIES ...................INSIDE BACK COVER
HIGHLY RATED GE FUNDS
Morningstar RATINGS(TM)
Through March 31, 2000
NUMBER OF STAR
FUND/CLASS FUNDS IN ITS CLASS RATINGS
--------------------------------------------------------------------------------
GE U.S. EQUITY (DOMESTIC EQUITY)
--------------------------------------------------------------------------------
OVERALL 3571
Class A, B & Y [STAR[STAR][STAR][STAR]
3 YEAR 3571
Class A, B & Y [STAR][STAR][STAR]
5 YEAR 2283
Class A, B & Y [STAR][STAR][STAR][STAR]
GE VALUE EQUITY (DOMESTIC EQUITY)
--------------------------------------------------------------------------------
OVERALL 3571
Class A & B [STAR][STAR][STAR][STAR]
3 YEAR 3571
Class A & B [STAR][STAR][STAR]
5 YEAR 2283
Class A & B [STAR][STAR][STAR][STAR]
GE GLOBAL EQUITY (INTERNATIONAL EQUITY)
--------------------------------------------------------------------------------
OVERALL 1124
Class B & Y [STAR][STAR][STAR][STAR]
3 YEAR 1124
Class B & Y [STAR][STAR][STAR][STAR]
5 YEAR 672
Class B & Y [STAR][STAR][STAR][STAR]
GE PREMIER GROWTH EQUITY (DOMESTIC EQUITY)
--------------------------------------------------------------------------------
OVERALL & 3 YEAR 3571
Class A, B & Y [STAR][STAR][STAR][STAR]
GE SHORT TERM GOVERNMENT (TAXABLE BOND)
--------------------------------------------------------------------------------
OVERALL 1680
Class A & B [STAR][STAR][STAR][STAR]
Class Y [STAR][STAR][STAR][STAR][STAR]
3 YEAR 1680
Class A & B [STAR][STAR][STAR][STAR]
Class Y [STAR][STAR][STAR][STAR][STAR]
5 YEAR 1279
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 March 31, 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:
Focusing on our customers isn't just a passing phase; it's an organizational
commitment.
Our new services and enhancements to your online account capabilities, the
revamped Voice Response Unit with voice recognition coming in June, and your
redesigned statements for the quarter ended March 31, 2000, sent in April 2000,
are all improvements in response to customer requests and suggestions in recent
months. Further, in an effort to continue to offer diversification and increased
investment options, on May 1, 2000 we expanded the range of our GE Premier Funds
by three additional funds. These new funds utilize a concentrated investment
style with a limited number of securities, currently just 30 to 40 quality
stocks, instead of investing in the 100 plus stocks like the average mutual
fund. The new options are GE Premier Research Equity Fund, GE Premier
International Equity Fund and GE Premier Value Equity Fund. For more complete
information about the new GE Funds, obtain the current Prospectus (dated April
28, 2000), which contains details on objectives, investment restrictions, fees
and expenses. Read it carefully before you invest.
Finally, on a customer focus perspective, we have renamed our investment
organization GE Asset Management and our sales and marketing organization GE
Asset Management Services to present a unified name and a succinct notation of
the services provided to the Funds and you by each of the entities.
FUND HIGHLIGHTS
Although market volatility continued into the first quarter of 2000, the GE
Funds produced solid performance for their investors. For the six-month period
ended March 31, 2000, two funds with outstanding performance were GE EMERGING
MARKETS FUND returning approximately 60% for all share classes compared to the
benchmark return of approximately 28% for the same period; and GE EUROPE EQUITY
FUND which had similar success posting a return in excess of 45% for all classes
compared to a benchmark of 17% for the same period. The returns of the GE
Emerging Markets Fund and the GE Europe Equity Fund reflect unusually favorable
market conditions and, in the case of the Emerging Markets Fund, the continued
recovery of this sector from a severe market correction in 1997 and 1998. As
always, remember that past performance is no guarantee of future results.
The theme of outstanding performance being driven from international exposure
was also reflected through the noteworthy performance of GE INTERNATIONAL EQUITY
and GE GLOBAL EQUITY FUNDS with each beating their respective market benchmarks
for the quarter, six month, and one year periods ended March 31, 2000.
The majority of our domestic equity funds beat the average return of their
Lipper peers and continued to provide investors with double-digit returns for
the six-month, one-year, three-year and five-year (where applicable) periods
ended March 31, 2000. Most notable, the GE SMALL CAP VALUE EQUITY FUND, with
returns of approximately 30% for each class compared to its benchmark's return
of approximately 27% for the same period and ranked in the top 20% of its Lipper
peers for the fourth quarter of 1999 and the top 10% for the first quarter of
2000.
The fixed income market continues to be affected by the volatile equity markets
and inflationary fears. The GE Fund's fixed income offerings have all operated
at or around their peer averages for the six-month period ended March 31, 2000.
The average returns for all
[Photo of Michael J. Cosgrove Omitted]
1
<PAGE>
A LETTER FROM THE PRESIDENT (CONTINUED)
the Lipper fund categories and complete details on each fund's performance,
including reductions for the effect of loads, can be found on the fund
performance profile pages in this report. Five of our funds were given four or
five star ratings at March 31, 2000 from Morningstar, an independent fund
ranking company that analyzes risk-adjusted performance. These funds were GE
U.S. EQUITY FUND, GE VALUE EQUITY FUND, GE GLOBAL EQUITY FUND, GE PREMIER GROWTH
EQUITY FUND and GE SHORT-TERM GOVERNMENT FUND.
MARKET OVERVIEW
Over the past six months the U.S. equity markets have been particularly volatile
and narrowly focused on the technology sector. The S&P 500 had gains of 15% for
the quarter ended December 31, 1999 and 2.5% for the quarter ended March 31,
2000. Despite an environment in the U.S. of robust economic growth, low
inflation, solid corporate earnings, modestly higher interest rates, and
declining oil prices, the markets behaved much like a roller coaster during the
quarter. Even after Y2K fears subsided and despite strong fourth quarter
earnings results, the S&P 500 initially had declined by 16% through mid-February
as investors remained on the sidelines before the late quarter rally.
International equity markets have behaved in much the same way with areas like
technology, telecom, and media garnering investor attention.
The Federal reserve increased interest rates three times during the six months
ended March 31, 2000 as the pace of economic activity rekindled fears of
inflation. These rate increases continue to have a significant impact on bond
values and bond returns as well as the U.S. equity markets.
MARKET OUTLOOK
In general, the earnings for S&P 500 companies were very good for 1999, coming
in at $51 per share, which represented 14% growth over 1998. The 2000 consensus
earnings estimate for the S&P 500 is now approaching 11%, and 2001 consensus
earnings are estimated to be up approximately 8%. First quarter earnings are
anticipated to be strong given very few announcements regarding earnings
disappointments. Offsetting this positive outlook, the Federal Reserve's
commitment to a "gradual adjustment to a more balanced noninflationary growth"
scenario is likely to continue to challenge the U.S. equity markets over the
near term. Therefore our investment philosophy continues to be one of
diversification with a neutral bias to stocks, as demonstrated in the GE
Strategic Investment Fund.
YEAR 2000
Lastly, a comment on the Year 2000 issue. To date, we have not experienced any
significant disruptions to our financial or operating activities caused by
failure of the computerized systems from Year 2000 issues but we continue to be
diligent in our review of systems.
Thank you for your continued investment in the GE Funds. We look forward to
helping you serve your financial needs in the future.
Sincerely,
/S/SIGNATURE
Michael J. Cosgrove
MIKE COSGROVE IS THE PRESIDENT OF THE ASSET MANAGEMENT SERVICES GROUP OF GE
FINANCIAL ASSURANCE HOLDINGS, INC., AND OF GE INVESTMENT DISTRIBUTORS, INC., THE
FUNDS' DISTRIBUTOR, AND SERVES AS A TRUSTEE OF THE GE PENSION TRUST AND GE'S
EMPLOYEE SAVINGS PROGRAM. PREVIOUSLY CHIEF FINANCIAL OFFICER OF GE INVESTMENTS
AND ASSISTANT TREASURER-GE COMPANY, MIKE JOINED GE IN 1970 AND HELD A NUMBER OF
MANAGERIAL POSITIONS IN FINANCE AND SALES IN THE INTERNATIONAL OPERATION AND IN
GE TRADING COMPANY. HE HAS A B.S. IN ECONOMICS FROM FORDHAM UNIVERSITY AND AN
M.B.A. FROM ST. JOHN'S UNIVERSITY.
2
<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 $40 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.
Q. HOW DID THE GE U.S. EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
SIX MONTHS ENDED MARCH 31, 2000?
A. The GE U.S. Equity Fund posted a return of 14.13% (Class A) for the six-
month period ended March 31, 2000 while the Standard & Poor's 500 Composite
Price Index returned 17.78% for the same period.
Q. WHY DID THE FUND UNDER-PERFORM ITS BENCHMARK FOR THE SIX MONTHS ENDED MARCH
31, 2000?
A. The Fund underperformed the benchmark because of an underweighting in the
technology sector and one segment of the utilities sector. Another area that
detracted from performance was the consumer stable sector which pulled back
during this period. The Fund was overweight and had solid stock selection in
several sectors including capital goods, consumer cyclical, and financial.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL? WHICH HAVE NOT PERFORMED WELL?
A. Our investments in the financial sector did well over the six month period
ended March 31, 2000. We were overweight the sector and had positive stock
selection for this time period. Among financial stocks, consumer spending
and strong financial markets continued to drive earnings for these
companies. Our holdings in Citigroup, Morgan Stanley Dean Witter, and
Goldman Sachs were all beneficiaries of these trends.
Our technology holdings did well despite an underweighting of the sector due
to valuation concerns. In particular, Analog Devices, Applied Materials,
Intel and EMC all contributed positively. In addition, avoiding stocks such
as Yahoo, AOL, Qualcomm, and 3COM also helped performance during this
period. Although our holdings did well, the market was very narrow and we
just could not own enough technology issues to get to a market weight
because of our valuation discipline. We believe valuations are very
important in the technology sector and will continue to look for those
companies with sustainable business models and attractive valuations for the
long term.
Consumer cyclical companies also did well as entertainment, broadcast media,
commercial services, and retailers all posted higher returns for the period.
Holdings such as Liberty Media, NTL Inc, and Interpublic Group showed very
good performance. In addition holdings such as Wal-Mart and Target did
particularly well given healthy consumer spending. The capital goods area
also provided a boost to performance due to strong stock selection with
companies like Molex, Dover, and Martin Marietta Materials delivering good
performance. In addition, our energy sector overweight and stock selections
contributed positively to performance. In particular, Schlumberger, Exxon
Mobil, and Nabors all benefited from rising oil prices over the period.
The consumer stable and utilities sectors contributed negatively to
performance. Within consumer stables, health care stocks, household
products, and some beverage stocks were all down during this period. The
utility sector was positive for the six months ended March 31, 2000, however
it was the natural gas industry that boosted performance the most and we did
not own enough in this area. Our holdings in the long distance telecom
sector however helped to mitigate the losses with Vodafone, Global Crossing,
and US West as notable contributors.
Q. HOW HAS THE VOLATILITY IN THE MARKET IMPACTED THE FUND?
A. Over the past six months the markets have been particularly volatile and
narrowly focused on technology. The S&P 500 had gains of 15% for the quarter
ended December 31, 1999, following a decline of 6.2% in the quarter ended
September 30, 1999. For the quarter ended March 31, 2000, the S&P 500 gained
2.5%. Despite an environment in the U.S. of robust economic growth, low
inflation, solid corporate earnings, modestly higher interest rates, and
declining oil prices, the markets behaved much like a roller coaster in the
quarter just ended March 2000. This is evident in the disparate returns of
the major averages for the quarter as the Dow Jones Industrial Average was
down 4.8%, the S&P 500 up 2.5%, and the NASDAQ up 12.4%.
In terms of the Fund, we continue to own those companies that have solid
earnings growth. We look at the swings in the market as opportunities to
scale buy or sell those stocks that become respectively undervalued or
overvalued relative to the market and to their peers.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The U.S. economy's strong underpinnings are encouraging for the long term.
Despite the Federal Reserve's commitment to containing any inflationary
pressures through rate increases, we believe companies should produce
healthy earnings over the next few quarters. The market will continue to be
volatile although this should be beneficial as the speculative excesses are
eliminated. 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.
[PHOTO OF GENE BOLTON OMITTED]
3
<PAGE>
GE U.S. EQUITY FUND
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TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Intel Corp. 4.08%
--------------------------------------------------------------------------------
Cisco Systems Inc. 3.79%
--------------------------------------------------------------------------------
Citigroup Inc. 3.69%
--------------------------------------------------------------------------------
Microsoft Corp. 2.78%
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2.24%
--------------------------------------------------------------------------------
Merck & Co. Inc. 2.09%
--------------------------------------------------------------------------------
First Data Corp. 2.03%
--------------------------------------------------------------------------------
Applied Materials Inc. 1.94%
--------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1.53%
--------------------------------------------------------------------------------
Target Corp. 1.50%
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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 3/31/00
Six One Five
Months Year Year
------- ------- -------
Number of Funds in peer group: 353 328 135
Peer group average annual total return: 9.84% 9.37% 20.30%
Lipper categories in peer group: LARGE CAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
2/22/93 10000.00 9425.00 10000.00
10519.58 9917.30 10216.10
9/93 11032.38 10400.76 10530.86
10701.37 10088.69 10364.46
9/94 11129.16 10491.98 10919.15
11991.38 11304.84 11978.67
9/95 14118.31 13310.00 14165.55
15797.66 14893.21 15824.63
9/96 16758.61 15799.16 17045.81
18560.23 17497.63 18959.35
9/97 23422.39 22081.43 23947.44
26873.73 25335.17 28068.12
9/98 24739.00 23323.11 26129.74
31294.61 29502.94 33270.71
9/99 31615.33 29805.30 33395.81
3/00 36083.96 34018.08 39332.75
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ ------
GE U.S. Equity 14.13% 15.30% 24.65% 19.79%
GE U.S. Equity w/load 7.59% 8.69% 23.18% 18.80%
(maximum load-5.75%)
S&P 500 17.78% 18.17% 26.83% 21.25%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
12/22/93 10000.00 10000.00 10000.00
9647.78 9647.78 9618.15
9/94 9990.57 9990.57 10132.90
10728.90 10728.90 11116.13
9/95 12579.81 12579.81 13145.54
14022.58 14022.58 14685.15
9/96 14816.93 14816.93 15818.40
16345.27 16345.27 17594.16
9/97 20558.50 20558.50 22223.07
23492.61 23492.61 26047.04
9/98 21545.00 21545.00 24248.24
27153.91 27153.91 30875.01
9/99 27326.98 27326.98 30991.10
3/00 32103.31 32103.31 36500.54
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ ------
GE U.S. Equity 13.71% 14.43% 23.70% 20.42%
GE U.S. Equity w/load 9.71% 10.43% 23.70% 20.42%
(maximum load) 4.00% 4.00% 0.00% 0.00%
S&P 500 17.78% 18.17% 26.83% 22.91%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY GE U.S. EQUITY W/LOAD S&P 500
9/30/99 10000.00 10000.00 10000.00
10/99 10528.82 10528.82 10636.00
11/99 10652.31 10652.31 10851.91
12/99 11171.89 11171.89 11491.09
01/00 10727.88 10727.88 10912.05
02/00 10337.58 10337.58 10714.54
03/00 11372.41 11272.41 11777.75
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE U.S. Equity 13.72%
GE U.S. Equity w/load 12.72%
(maximum load) 1.00%
S&P 500 17.78%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE U.S. EQUITY S&P 500
11/29/93 10000.00 10000.00
9696.21 9736.84
9/94 10096.06 10257.94
10889.12 11253.31
9/95 12835.67 13307.76
14388.82 14866.37
9/96 15270.71 16013.60
16937.04 17811.27
9/97 21403.88 22497.30
24582.47 26368.46
9/98 22658.00 24547.46
28694.05 31256.00
9/99 29033.73 31373.53
3/00 33171.20 36950.96
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ ------
GE U.S. Equity 14.25% 15.60% 24.96% 20.82%
S&P 500 17.78% 18.17% 26.83% 22.90%
See Notes to Performance. Past performance is no guarantee of future results.
4
<PAGE>
GE U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE U.S. EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 27.3%
FINANCIAL 15.7%
CONSUMER 12.6%
HEALTHCARE 10.8%
CAPITAL GOODS 8.3%
UTILITIES 8.2%
ENERGY 6.9%
RETAIL TRADE 5.4%
BASIC MATERIALS 2.0%
TRANSPORTATION 1.5%
CASH & OTHER 1.3%*
*INCLUDES CASH EQUALIZED BY FUTURES OF 0.26%.
Number
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCK -- 98.7%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 2.0%
Airgas Inc. ....................... 33,770 $ 280,713(a)
Barrick Gold Corp. ................ 122,800 1,926,425
Champion International Corp. ...... 46,628 2,482,941
Du Pont de Nemours (E.I.) & Co. ... 27,016 1,428,471
Mead Corp. ........................ 34,384 1,201,291
Newmont Mining Corp. .............. 184,200 4,132,987
PPG Industries Inc. ............... 30,700 1,605,994
Rayonier Inc. ..................... 41,138 2,005,478
Weyerhaeuser Co. .................. 23,332 1,329,924
16,394,224
CAPITAL GOODS -- 8.3%
Boeing Co. ........................ 27,016 1,024,919
Deere & Co. ....................... 29,472 1,119,936
Dover Corp. ....................... 247,442 11,846,286(h)
Eaton Corp. ....................... 20,876 1,628,328
Emerson Electric Co. .............. 140,378 7,422,487
General Dynamics Corp. ............ 40,524 2,016,069
Honeywell International Inc. ...... 171,060 9,012,724(h)
Hubbell Inc. (Class B) ............ 105,632 2,891,676
Ingersoll-Rand Co. ................ 29,815 1,319,314
Martin Marietta Materials Inc. .... 74,473 3,537,467
Masco Corp. ....................... 56,488 1,158,004
Molex Inc. (Class A) .............. 171,613 7,615,327
Parker Hannifin Corp. ............. 35,612 1,471,221
Textron Inc. ...................... 124,344 7,569,441
United Technologies Corp. ......... 112,976 7,138,671
Waste Management Inc. ............. 139,193 1,905,204
68,677,074
CONSUMER - CYCLICAL -- 8.5%
AT&T Corp. - Liberty Media
Group (Class A) ................ 178,060 10,550,055(a)
Carnival Corp. (Class A) .......... 50,962 1,264,495
Catalina Marketing Corp. .......... 44,822 4,538,228(a)
Number
of Shares Value
--------------------------------------------------------------------------------
Comcast Corp. (Class A) ........... 182,358 $ 7,909,778
Ford Motor Co. .................... 49,120 2,256,450
Gannett Co. Inc. .................. 101,924 7,172,902
Harman International
Industries Inc. ................ 6,754 405,240
Interpublic Group Cos. Inc. ....... 181,744 8,587,404
Knight-Ridder Inc. ................ 54,032 2,752,255
McDonald's Corp. .................. 202,006 7,587,850
NTL Inc. .......................... 104,073 9,659,275(a)
The Walt Disney Co. ............... 172,166 7,123,368(h)
Time Warner Inc. .................. 6,140 614,000
70,421,300
CONSUMER - STABLE -- 4.1%
Anheuser Busch Cos. Inc. .......... 41,752 2,599,062(h)
Avon Products Inc. ................ 49,734 1,445,394
Bestfoods ......................... 33,156 1,552,115
Colgate-Palmolive Co. ............. 15,718 886,102
Energizer Holdings Inc. ........... 6,754 156,608(a)
General Mills Inc. ................ 56,488 2,044,160
Gillette Co. ...................... 59,558 2,244,592
Heinz (H.J.) Co. .................. 36,840 1,284,795
Pepsico Inc. ...................... 249,284 8,615,878
Philip Morris Cos. Inc. ........... 49,366 1,042,857
Procter & Gamble Co. .............. 68,768 3,868,200
Ralston Purina Co. ................ 228,154 6,245,716
Sara Lee Corp. .................... 116,660 2,099,880
34,085,359
ENERGY -- 6.9%
Anadarko Petroleum Corp. .......... 36,226 1,401,493
Baker Hughes Inc. ................. 62,628 1,894,497
BP Amoco PLC ADR .................. 27,016 1,433,537
Burlington Resources Inc. ......... 69,186 2,559,882
Calpine Corp. ..................... 9,247 869,218(a)
Chevron Corp. ..................... 28,244 2,610,805
Conoco Inc. (Class B) ............. 98,240 2,517,400
Exxon Mobil Corp. ................. 240,160 18,687,450(h)
Halliburton Co. ................... 73,680 3,020,880
Nabors Industries Inc. ............ 30,700 1,191,544(a)
Royal Dutch Petroleum Co. ADR ..... 110,520 6,361,807
Schlumberger Ltd. ................. 110,888 8,482,932
Texaco Inc. ....................... 22,104 1,185,327
Transocean Sedco Forex Inc. ....... 10,438 535,600
Unocal Corp. ...................... 117,274 3,488,901
USX-Marathon Group ................ 55,260 1,440,214
57,681,487
FINANCIAL -- 12.3%
American Express Co. .............. 44,208 6,584,229
Associates First Capital Corp.
(Class A) ...................... 168,850 3,619,722
AXA Financial Inc. ................ 44,208 1,585,962
Bank of America Corp. ............. 160,254 8,403,319
Bank One Corp. .................... 5,526 189,956
Chase Manhattan Corp. ............. 73,312 6,391,890
Citigroup Inc. .................... 517,786 30,711,182
Countrywide Credit Industries Inc. 21,490585,603
Federal National Mortgage Assoc. .. 180,884 10,208,641
Fidelity National Financial Inc. .. 34,777 480,359
FleetBoston Financial Corp. ....... 139,746 5,100,729
Goldman Sachs Group Inc. .......... 24,560 2,581,870
------------------------
See Notes to Schedules of Investments and Financial Statements.
5
<PAGE>
GE U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
Number
of Shares Value
--------------------------------------------------------------------------------
Lehman Brothers Holdings Inc. ..... 38,805 $ 3,764,085
Morgan Stanley, Dean
Witter & Co. ................... 147,360 12,019,050
PNC Bank Corp. .................... 67,540 3,043,521
State Street Corp. ................ 34,040 3,297,625(e)
United States Bancorp. ............ 73,680 1,611,750
Wells Fargo & Co. ................. 61,400 2,513,562
102,693,055
HEALTHCARE -- 10.8%
Abbott Laboratories ............... 150,430 5,293,256
Allergan Inc. ..................... 9,824 491,200
American Home Products Corp. ...... 37,454 2,008,471(h)
Amgen Inc. ........................ 73,753 4,526,590(a)
Bristol-Myers Squibb Co. .......... 221,040 12,765,060
Cardinal Health Inc. .............. 268,318 12,309,088(h)
Dentsply International Inc. ....... 34,384 975,646
Eli Lilly & Co. ................... 46,664 2,939,832
Henry Schein Inc. ................. 58,944 954,156(a)
Johnson & Johnson ................. 108,187 7,579,852
Lincare Holdings Inc. ............. 74,908 2,125,514(a)
Merck & Co. Inc. .................. 279,984 17,394,006(h)
Omnicare Inc. ..................... 22,104 266,630
Pfizer Inc. ....................... 74,294 2,716,374
Pharmacia & Upjohn Inc. ........... 34,457 2,041,577
Schering Plough Corp. ............. 92,100 3,384,675
Shire Pharmaceuticals
Group PLC ADR .................. 5,526 283,207(a)
Sybron International Corp. ........ 99,468 2,884,572(a)
Warner-Lambert Co. ................ 51,208 4,992,780
Watson Pharmaceuticals Inc. ....... 97,258 3,859,927(a)
89,792,413
INSURANCE -- 3.4%
AFLAC Inc. ........................ 11,052 503,557
American International
Group Inc. ..................... 77,057 8,437,741
Berkshire Hathaway Inc.
(Class B) ...................... 967 1,759,940(a)
Chubb Corp. ....................... 56,734 3,833,091
Hartford Financial Services
Group Inc. ..................... 88,416 4,663,944
Lincoln National Corp. ............ 33,156 1,110,726
Loews Corp. ....................... 19,034 951,700
Marsh & McLennan Cos. Inc. ........ 32,910 3,630,384
Reliastar Financial Corp. ......... 42,980 1,455,948
St. Paul Cos. Inc. ................ 54,032 1,843,842
28,190,873
RETAIL TRADE -- 5.4%
Costco Wholesale Corp. ............ 28,244 1,484,575(a)
CVS Corp. ......................... 127,098 4,774,119
Federated Department Stores Inc. .. 87,188 3,640,099(a)
Home Depot Inc. ................... 121,031 7,806,500
Lowe's Cos. Inc. .................. 105,608 6,164,867
Target Corp. ...................... 167,254 12,502,236
Wal-Mart Stores Inc. .............. 159,640 8,860,020
45,232,416
Number
of Shares Value
--------------------------------------------------------------------------------
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 18.6%
Analog Devices Inc. ................ 125,869 $ 10,140,321(a)
Applied Materials Inc. ............. 171,674 16,180,275(a)
Cisco Systems Inc. ................. 408,678 31,595,918(a)
Dell Computer Corp. ................ 222,882 12,021,698(a)
Hewlett Packard Co. ................ 19,648 2,604,588
Intel Corp. ........................ 257,880 34,024,042
International Business
Machines Corp. .................. 55,260 6,520,680
Lucent Technologies Inc. ........... 117,397 7,131,868
Motorola Inc. ...................... 45,190 6,433,926
Nortel Networks Corp. .............. 84,486 10,645,236
PerkinElmer Inc. ................... 20,876 1,388,254
Pitney Bowes Inc. .................. 113,590 5,076,053
Sun Microsystems Inc. .............. 68,400 6,409,294(a)
Tellabs Inc. ....................... 18,420 1,160,172(a)
Texas Instruments Inc. ............. 24,560 3,929,600
155,261,925
TECHNOLOGY - SOFTWARE & SERVICES -- 8.7%
Automatic Data Processing Inc. ..... 143,922 6,944,237
EMC Corp. .......................... 91,609 11,451,125(a)
Equifax Inc. ....................... 335,858 8,480,415
First Data Corp. ................... 381,294 16,872,259
Microsoft Corp. .................... 217,970 23,159,312(a)
Unisys Corp. ....................... 224,724 5,730,462(a)
72,637,810
TRANSPORTATION -- 1.5%
Burlington Northern
Santa Fe Corp. .................. 147,360 3,260,340
Canadian Pacific Ltd. .............. 110,520 2,472,885
Continental Airlines Inc. (Class B) 63,242 2,585,017(a)
Delta Air Lines Inc. ............... 54,032 2,877,204
United Parcel Service Inc.
(Class B) ....................... 22,104 1,392,552
12,587,998
UTILITIES -- 8.2%
Alltel Corp. ....................... 36,840 2,323,223
AT&T Corp. ......................... 131,027 7,370,269
Bell Atlantic Corp. ................ 58,944 3,602,952
Duke Energy Corp. .................. 64,470 3,384,675
Edison International ............... 98,240 1,627,100
El Paso Energy Corp. ............... 74,908 3,024,410
Enron Corp. ........................ 22,546 1,688,132
FPL Group Inc. ..................... 27,016 1,244,425
Global Crossing Ltd. ............... 67,540 2,764,919(a)
GTE Corp. .......................... 120,897 8,583,687
MCI WorldCom Inc. .................. 56,488 2,559,612(a)
New Century Energies Inc. .......... 100,696 3,027,173
SBC Communications Inc. ............ 272,125 11,429,250
Sprint Corp. ....................... 71,838 4,525,794
U.S. WEST Inc. ..................... 87,299 6,340,090
Vodafone AirTouch PLC ADR .......... 90,258 5,014,960
68,510,671
TOTAL INVESTMENTS IN SECURITIES
(COST $660,457,245) ............. 822,166,605
---------------------
See Notes to Schedules of Investments and Financial Statements.
6
<PAGE>
GE U.S. EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.9%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund .............. 7,359,349 $ 7,359,349
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
TIME DEPOSIT -- 0.0%
State Street Corp.
6.13% 04/03/00 .............. $485,000 485,000
TOTAL SHORT-TERM INVESTMENTS
(COST $7,844,349) ............. 7,844,349
OTHER ASSETS AND LIABILITIES,
NET 0.4% ...................... 2,967,670
------------
NET ASSETS-- 100% ................ $832,978,624
============
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE U.S. Equity Fund had the following long Futures Contracts open at
March 31, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
--------------------------------------------------------------------------------
S&P 500 June 2000 6 $2,179,850 $93,100
----------------
See Notes to Schedules of Investments and Financial Statements.
7
<PAGE>
GE PREMIER GROWTH EQUITY FUND
Q&A
DAVID CARLSON MANAGES PENSION AND MUTUAL FUND PORTFOLIOS WITH TOTAL ASSETS OF
APPROXIMATELY $7 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 CHARTERED FINANCIAL ANALYST AND A MEMBER OF THE NEW YORK
SOCIETY OF SECURITY ANALYSTS. DAVE IS A GRADUATE OF INDIANA UNIVERSITY WITH A
B.S. IN BUSINESS.
Q. HOW DID THE GE PREMIER GROWTH EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The Premier Growth Fund posted a return of 25.37% (Class A) for the
six-month period ended March 31, 2000 while the Standard & Poor's 500
Composite Price Index returned 17.78% for the same period. The Fund
outperformed the benchmark by more than 7% for this period.
Q. HOW DID THE PREMIER GROWTH FUND PERFORM COMPARED TO ITS LIPPER PEER GROUP?
A. Lipper Analytical Services has reclassified its grouping of mutual funds and
the Fund has a new peer group. Lipper has eliminated with the "Growth"
category, and created smaller subsets of growth funds based on the market
capitalization of their holdings. The Fund is now grouped in the multi-cap
growth category, which is comprised of approximately 388 funds. The Fund
finished in the fourth quartile when compared to its peer group. The average
return for this category was 56% for the six-month period ending March 31,
2000. Many funds in this category hold technology weightings of 50% or more
in their respective portfolios while the Fund has a tech weighting of
approximately 30%. We continue to be constructive about technology but are
sensitive to valuation levels.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK FOR THE SIX MONTHS ENDED MARCH 31,
2000?
A. In looking at a breakdown of returns for the S&P 500 for the six-month
period, technology was the strongest performing sector with a return of 56%.
All other sectors underperformed the 17.8% return of the S&P 500. The
Premier Growth fund has approximately the same weight in technology as the
S&P 500, roughly 30%, so it benefited from the strength in this sector.
Positive stock selection in the remaining sectors resulted in outperformance
versus the S&P 500 for the six month period ending March 31, 2000.
Q. DOES ANY PARTICULAR STOCK PERFORMANCE STAND OUT IN THE PERIOD?
A. Among our technology holdings, Applied Materials posted a gain of 142%,
Cisco a gain of 125%, and Intel a gain of 78%. On the downside, our holdings
in the pharmaceutical industry declined with Merck down 3%, Cardinal Health
down 16% and Johnson & Johnson down 23%.
Q. HOW HAS THE VOLATILITY IN THE MARKET IMPACTED THE FUND?
A. Over the past 6 months the markets have been particularly volatile and
narrowly focused on technology. The S&P 500 had gains of 15% for the quarter
ended December 31, 1999 following a decline of 6.2% in the quarter ended
September 30, 1999. For the quarter ended March 31, 2000, the S&P 500 gained
2.5%. What is notable is that these market swings have been focused
primarily on the technology sector. Volatility is certainly the theme for
the U.S. equity markets in this new millennium. Despite an environment in
the U.S. of robust economic growth, low inflation, solid corporate earnings,
modestly higher interest rates, and declining oil prices, the markets
behaved much like a roller coaster in the quarter ended March 31, 2000. Even
after Y2K fears subsided and despite strong fourth quarter earnings results,
the S&P 500 initially declined by 16% through mid-February as investors
remained on the sidelines. As soon as interest rate worries dissipated in
March, the S&P 500 rebounded off its lows to end the quarter up 2.5%.
Similarly, the NASDAQ slumped in the early part of the quarter and then
progressively rallied through the first part of March, when it gained as
much as 26%. Profit-taking in the technology sector halved NASDAQ's gains to
end the quarter up 12.4%. Official results for the first quarter had the Dow
Jones Industrial Average down 4.8%, the S&P 500 posting a gain of 2.5%, the
Russell 2000 finishing up 6.8%, and the NASDAQ concluding the quarter up
12.4%.
In terms of the Fund, we continue to own those companies that have solid
earnings growth. While these swings do make us reflective of the
fundamentals of the market, we do not try to time the market but invest in
those companies with solid fundamentals.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The Fund remains concentrated in 34 holdings. We have reduced the
overweighting in technology stocks to match the level of the S&P 500. The
rationale was based on valuations. The fundamentals of the technology sector
remain excellent, but the valuation levels are extremely 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]
8
<PAGE>
GE PREMIER GROWTH EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Cisco Systems Inc. 4.88%
--------------------------------------------------------------------------------
Molex Inc. (Class A) 4.70%
--------------------------------------------------------------------------------
AT&T Corp. - Liberty Media Group
(Class A) 4.56%
--------------------------------------------------------------------------------
Intel Corp. 4.42%
--------------------------------------------------------------------------------
Applied Materials Inc. 4.24%
--------------------------------------------------------------------------------
EMC Corp. 4.19%
--------------------------------------------------------------------------------
Home Depot Inc. 3.82%
--------------------------------------------------------------------------------
Sybron International Corp. 3.72%
--------------------------------------------------------------------------------
NTL Inc. 3.66%
--------------------------------------------------------------------------------
First Data Corp. 3.58%
--------------------------------------------------------------------------------
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
MULTI-CAP GROWTH PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE
PERIOD ENDED 3/31/00
Six One
Months Year
------- ------
Number of Funds in peer group: 388 372
Peer group average annual total return: 55.62% 65.13%
Lipper categories in peer group: MULTICAP GROWTH
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE PREMIER GROWTH GE PREMIER GROWTH
EQUITY FUND EQUITY FUND W/LOAD S&P 500
12/31/96 10000.00 9425.00 10000.00
3/97 9533.32 8982.41 10260.73
11033.32 10395.73 12053.80
9/97 12233.32 11526.38 12960.26
12645.51 11914.75 13329.40
3/98 14294.04 13468.02 15190.35
14863.91 14004.95 15693.88
9/98 13866.65 13065.32 14141.31
17120.96 16131.56 17154.67
3/99 18630.40 17553.77 18005.97
20482.26 19298.61 19259.05
9/99 19210.41 18100.26 18073.68
23242.32 21899.17 20768.63
3/00 24084.59 22692.77 21286.73
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ---- ----------
GE Premier
Growth Equity 25.37% 29.28% 31.04%
GE Premier Growth
Equity w/load 18.15% 21.83% 28.66%
(maximum load-5.75%)
S&P 500 17.78% 18.17% 26.18%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE PREMIER GROWTH GE PREMIER GROWTH
EQUITY FUND EQUITY FUND W/LOAD S&P 500
12/31/96 10000.00 10000.00 10000.00
3/97 9513.33 9513.33 10260.73
10986.67 10986.67 12053.80
9/97 12166.67 12166.67 12960.26
12552.07 12552.07 13329.40
3/98 14157.49 14157.49 15190.35
14692.63 14692.63 15693.88
9/98 13683.31 13683.31 14141.31
16866.23 16866.23 17154.67
3/99 18316.48 18316.48 18005.97
20101.42 20101.42 19259.05
9/99 18818.50 18818.50 18073.68
22722.33 22722.33 20768.63
3/00 23498.11 23398.11 21286.73
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ----- ----------
GE Premier
Growth Equity 24.87% 28.29% 30.05%
GE Premier Growth
Equity w/load 20.87% 24.29% 29.88%
(maximum load) 4.00% 4.00% 3.00%
S&P 500 17.78% 18.17% 26.18%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE PREMIER GROWTH GE PREMIER GROWTH
EQUITY FUND EQUITY FUND W/LOAD S&P 500
10/1/99 10000.00 10000.00 10000.00
10/99 10418.52 10418.52 10636.00
11/99 10855.56 10855.56 10851.91
12/99 12070.00 12070.00 11491.09
1/00 11569.33 11569.33 10912.05
2/00 11388.32 11388.32 10714.54
3/00 12482.09 12382.09 11777.75
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
---------
GE Premier Growth Equity 24.82%
GE Premier Growth Equity w/load 23.82%
(maximum load) 1.00%
S&P 500 17.78%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE PREMIER GRWOTH EQUITY FUND S&P 500
12/31/96 10000.00 10000.00
3/97 9539.99 10260.73
11039.99 12053.80
9/97 12253.32 12960.26
12676.35 13329.40
3/98 14333.92 15190.35
14918.15 15693.88
9/98 13926.32 14141.31
17208.05 17154.67
3/99 18729.08 18005.97
20614.61 19259.05
9/99 19345.91 18073.68
23418.33 20768.63
3/00 24277.59 21286.73
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------- ----- ---------
GE Premier
Growth Equity 25.49% 29.63% 31.36%
S&P 500 17.78% 18.17% 26.18%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
9
<PAGE>
GE PREMIER GROWTH EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE PREMIER GROWTH EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 31.2%
CONSUMER 20.0%
HEALTHCARE 15.0%
CAPITAL GOODS 8.4%
RETAIL TRADE 5.9%
UTILITIES 5.3%
FINANCIAL 4.9%
CASH & OTHER 4.7%*
ENERGY 4.6%
*INCLUDES CASH EQUALIZED BY FUTURES OF 1.49%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 95.3%
--------------------------------------------------------------------------------
CAPITAL GOODS -- 8.4%
Dover Corp. ....................... 108,596 $ 5,199,034
Molex Inc. (Class A) .............. 188,292 8,355,457(h)
Waste Management Inc. ............. 94,584 1,294,619
14,849,110
CONSUMER - CYCLICAL -- 19.1%
AT&T Corp. - Liberty Media
Group (Class A) ................ 136,621 8,094,794(a)
Carnival Corp. (Class A) .......... 112,100 2,781,481
Catalina Marketing Corp. .......... 57,801 5,852,351(a)
Comcast Corp. (Class A) ........... 115,603 5,014,280
Interpublic Group Cos. Inc. ....... 119,106 5,627,759
NTL Inc. .......................... 70,062 6,502,630(a)
33,873,295
CONSUMER - STABLE -- 0.9%
Gillette Co. ...................... 42,037 1,584,269
ENERGY -- 4.6%
Baker Hughes Inc. ................. 143,628 4,344,747
Schlumberger Ltd. ................. 49,044 3,751,866
8,096,613
FINANCIAL -- 3.5%
Citigroup Inc. .................... 105,093 6,233,329
HEALTHCARE -- 15.0%
Cardinal Health Inc. .............. 115,603 5,303,287(h)
Dentsply International Inc. ....... 52,546 1,490,993
Henry Schein Inc. ................. 70,062 1,134,129(a)
Johnson & Johnson ................. 43,789 3,067,967
Lincare Holdings Inc. ............. 175,156 4,970,051(a)
Merck & Co. Inc. .................. 66,559 4,134,978
Sybron International Corp. ........ 227,702 6,603,358(a)
26,704,763
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
INSURANCE -- 1.4%
AFLAC Inc. ........................ 56,049 $ 2,553,733
RETAIL TRADE -- 5.9%
CVS Corp. ......................... 98,087 3,684,393
Home Depot Inc. ................... 105,093 6,778,498
10,462,891
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 15.2%
Applied Materials Inc. ............ 79,871 7,527,842(a)
Cisco Systems Inc. ................ 112,100 8,666,731(a)
Dell Computer Corp. ............... 56,050 3,023,197(a)
Intel Corp. ....................... 59,553 7,857,274
27,075,044
TECHNOLOGY - SOFTWARE & SERVICES -- 16.0%
Automatic Data Processing Inc. .... 94,584 4,563,678
EMC Corp. ......................... 59,553 7,444,125(a)
Equifax Inc. ...................... 147,131 3,715,058
First Data Corp. .................. 143,628 6,355,539(h)
Microsoft Corp. ................... 59,553 6,327,506(a)
28,405,906
UTILITIES -- 5.3%
MCI WorldCom Inc. ................. 94,584 4,285,837(a)
Vodafone AirTouch PLC ADR ......... 91,957 5,109,361
9,395,198
TOTAL INVESTMENTS IN SECURITIES
(COST $131,735,363) ............ 169,234,151
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.7%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund
(COST $8,274,044) ............. 8,274,044 8,274,044
OTHER ASSETS AND LIABILITIES,
NET 0.0% ...................... 79,311
------------
NET ASSETS-- 100% ................ $177,587,506
============
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Premier Growth Equity Fund had the following long Futures Contracts open
at March 31, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
--------------------------------------------------------------------------------
S&P 500 June 2000 7 $2,651,775 $(36,650)
---------------
See Notes to Schedules of Investments and Financial Statements.
10
<PAGE>
GE VALUE EQUITY FUND
Q&A
PETER J. HATHAWAY IS THE PORTFOLIO MANAGER FOR THE GE VALUE EQUITY FUND. HE IS
CURRENTLY A SENIOR VICE PRESIDENT OF GE ASSET MANAGEMENT AND MANAGES EQUITY
ASSETS OF APPROXIMATELY $9 BILLION. PETE HAS MORE THAN 36 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
SIX MONTHS ENDED MARCH 31, 2000?
A. The Value Equity Fund posted a return of 13.10% (Class A) for the six-month
period ended March 31, 2000, while the Standard & Poor's 500/Barra Value
Composite Price Index returned 9.20% for the same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK FOR THE SIX MONTHS ENDED MARCH 31,
2000?
A. The stock market remained narrow by historical standards with technology
garnering most of the focus. Our positive performance was broadly based with
seven out of the nine sectors contributing positively to performance.
Sectors that specifically helped performance over this period included
capital goods, basic material, consumer cyclical, energy, technology, and
financials. Areas such as transportation and consumer staples did not
perform well over this time period however our stock selection was positive
for these areas and mitigated much of the declines in these areas.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL? WHICH HAVE NOT PERFORMED WELL?
A. Five of nine sectors in the S&P Barra Value Index earned positive returns.
On a stock selection basis, we outperformed the S&P Barra Value in four
sectors: capital goods, consumer cyclicals, transportation and financials.
We outperformed in capital goods, because we were overweight in Molex, and
our valuation discipline kept us out of Illinois Toolworks, 3M, and
Caterpillar. We did well in consumer cyclicals because we were overweight in
Home Depot, Target, and Wal-Mart. Our transportation sector outperformed
because we were overweight in Continental Airlines, and did not own Norfolk
Southern, Union Pacific, or CSX. In financials, our overweight in Morgan
Stanley, Goldman Sachs, and Waddell & Reed helped to boost performance for
the portfolio.
Areas that detracted from performance included the consumer stable sector
where concerns over spending caused the area to pullback after strong
performance through the December 1999 time period. The fact that we did not
own Philip Morris helped mitigate some of the losses in this sector. The
utility sector was the most challenging as we were underweight and did not
have enough exposure in the natural gas and regional bell operating
companies which did well over this period.
Q. HOW HAS THE VOLATILITY IN THE MARKET IMPACTED THE FUND?
A. Over the past 6 months the markets have been particularly volatile and
narrowly focused on technology. The overall S&P 500 Index had gains of 15%
for the quarter ended December 31, 1999 following a decline of 6.2% in the
quarter ended September 30, 1999. For the quarter ended March 31, 2000, the
S&P 500 gained 2.5%. What is notable is that these market swings have been
focused primarily on the technology sector. Despite an environment in the
U.S. of robust economic growth, low inflation, solid corporate earnings,
modestly higher interest rates, and declining oil prices, the markets
behaved much like a roller coaster in the quarter just ended March 2000.
This is evident in the disparate returns of the major averages for the
quarter as the Dow Jones Industrial Average was down 4.8%, the S&P 500 up
2.5%, and the NASDAQ up 12.4%.
In terms of the Fund, we continue to own those companies that have solid
earnings growth. We look at the swings in the market as opportunities to
scale buy or sell those stocks that become respectively undervalued or
overvalued relative to the market and to their peers.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. The U.S. economy's strong underpinnings are encouraging for the long term.
Despite the Federal Reserve's commitment to containing any inflationary
pressures through rate increases, we believe companies should produce good
earnings over the next few quarters. The market will continue to be volatile
although this should be beneficial as the speculative excesses are worked
out of the system. We also believe that the performance and valuation
discrepancy between technology and almost everything else cannot continue.
Thus we will maintain our focus on fundamental research and stock selection
and plan to maintain the valuation discipline that has rewarded us over the
years. We believe the portfolio is broadly diversified in high-quality
stocks and therefore the portfolio is well positioned for good relative
performance in this environment.
[PHOTO OF PETER J. HATHAWAY OMITTED]
11
<PAGE>
GE VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Intel Corp. 3.90%
--------------------------------------------------------------------------------
Cisco Systems Inc. 3.69%
--------------------------------------------------------------------------------
Citigroup Inc. 2.82%
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2.57%
--------------------------------------------------------------------------------
Microsoft Corp. 2.45%
--------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 2.23%
--------------------------------------------------------------------------------
Merck & Co. Inc. 1.99%
--------------------------------------------------------------------------------
Target Corp. 1.94%
--------------------------------------------------------------------------------
Applied Materials Inc. 1.84%
--------------------------------------------------------------------------------
Wal-Mart Stores Inc. 1.64%
--------------------------------------------------------------------------------
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 3/31/00
Six One Five
Months Year Year
------ ------- ------
Number of Funds in peer group: 353 328 135
Peer group average annual total return: 9.84% 9.37% 20.30%
Lipper categories in peer group: LARGE CAP VALUE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES++
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 10000.00 9425.00 10000.00
9573.86 9023.37 9710.11
9/94 9925.18 9354.48 10050.64
10731.37 10114.31 10936.61
9/95 12288.84 11582.23 12833.89
13491.08 12715.34 14537.21
9/96 14770.05 13920.77 15226.76
16253.70 15319.11 16962.23
9/97 20647.82 19460.57 21195.09
23729.39 22364.95 24167.98
9/98 21858.00 20601.48 21156.16
27331.79 25752.31 25552.22
9/99 27834.55 26226.02 25698.62
3/00 31479.72 29660.54 28062.46
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ ------
GE Value Equity 13.10% 15.18% 24.02% 19.09%
GE Value Equity
w/load 6.62% 8.55% 22.55% 18.02%
(maximum load-5.75%)
S&P 500/BARRA Value 9.20% 9.86% 20.75% 17.02%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/8/93 10000.00 10000.00 10000.00
9555.57 9555.57 9710.11
9/94 9873.06 9873.06 10050.64
10625.67 10625.67 10936.61
9/95 12139.56 12139.56 12833.89
13268.08 13268.08 14537.21
9/96 14461.66 14461.66 15226.76
15862.84 15862.84 16962.23
9/97 20078.03 20078.03 21195.09
23007.23 23007.23 24167.98
9/98 21146.00 21146.00 21156.16
26358.96 26358.96 25552.22
9/99 26785.19 26785.19 25698.62
3/00 30178.69 30178.69 28062.46
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ------ ------
GE Value Equity 12.67% 14.49% 23.22% 18.33%
GE Value Equity
w/load 8.67% 10.49% 23.22% 18.33%
(maximum load) 4.00% 4.00% 0.00% 0.00%
S&P 500/BARRA Value 9.20% 9.86% 20.75% 17.02%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY GE VALUE EQUITY W/LOAD S&P 500/BARRA VALUE
9/30/99 10000.00 10000.00 10000.00
10/99 10569.51 10569.51 10565.00
11/99 10661.64 10661.64 10502.67
12/99 11115.40 11115.40 10894.42
1/00 10625.14 10625.14 10547.76
2/00 10232.94 10232.94 9888.73
3/00 11275.85 11175.85 10919.83
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Value Equity 12.76%
GE Value Equity w/load 11.76%
(maximum load) 1.00%
S&P 500/BARRA Value 9.20%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE VALUE EQUITY S&P 500/BARRA VALUE
1/5/98 10000.00 10000.00
03/98 11240.00 11155.33
6/98 11540.00 11213.06
09/98 10380.19 9765.15
12/98 12447.54 11467.64
3/99 12999.61 11794.26
6/99 14082.91 13067.40
9/99 13270.43 11861.83
12/99 14782.74 12922.78
3/00 15036.66 12952.92
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Value Equity 13.31% 15.67% 20.00%
S&P 500/BARRA Value 9.20% 9.86% 12.27%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
12
<PAGE>
GE VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE VALUE EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 27.5%
FINANCIAL 17.1%
CONSUMER 10.6%
UTILITIES 9.4%
HEALTHCARE 8.3%
CAPITAL GOODS 8.2%
ENERGY 7.1%
RETAIL TRADE 6.0%
BASIC MATERIALS 3.0%
TRANSPORTATION 2.3%
CASH & OTHER 0.5%*
*INCLUDES CASH EQUALIZED BY FUTURES OF 0.41%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 99.5%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 3.0%
Avery Dennison Corp. ................ 2,124 $ 129,697
Barrick Gold Corp. .................. 21,241 333,218
Champion International Corp. ........ 8,081 430,313
Du Pont de Nemours (E.I.) & Co. ..... 4,673 247,085
Freeport McMoran Copper
& Gold Inc. (Class B) ............ 3,186 38,431
Mead Corp. .......................... 5,947 207,773
Newmont Mining Corp. ................ 21,240 476,572
PPG Industries Inc. ................. 5,311 277,832
Rayonier Inc. ....................... 7,115 346,856
Westvaco Corp. ...................... 2,124 70,889
Weyerhaeuser Co. .................... 4,460 254,220
2,812,886
CAPITAL GOODS -- 8.2%
Boeing Co. .......................... 4,673 177,282
Cooper Industries Inc. .............. 2,549 89,215
Deere & Co. ......................... 5,098 193,724
Dover Corp. ......................... 16,628 796,065(h)
Eaton Corp. ......................... 3,611 281,658
Emerson Electric Co. ................ 16,397 866,991(h)
General Dynamics Corp. .............. 7,009 348,698
Honeywell International Inc. ........ 18,513 975,404(h)
Hubbell Inc. (Class B) .............. 10,624 290,832
Ingersoll-Rand Co. .................. 3,823 169,168
Martin Marietta Materials Inc. ...... 12,107 575,083
Masco Corp. ......................... 9,770 200,285
Molex Inc. (Class A) ................ 6,637 294,517
Parker Hannifin Corp. ............... 6,160 254,485
Sherwin-Williams Co. ................ 3,823 83,867
Textron Inc. ........................ 15,174 923,717
Timken Co. .......................... 2,124 34,515
United Technologies Corp. ........... 16,508 1,043,099
Waste Management Inc. ............... 2,919 39,954
7,638,559
CONSUMER - CYCLICAL -- 5.6%
AT&T Corp. - Liberty Media
Group (Class A) .................. 3,186 188,771(a)
Carnival Corp. (Class A) ............ 1,699 42,156
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Catalina Marketing Corp. ............ 1,062 $ 107,528(a)
CBS Corp. ........................... 2,125 120,328(a)
Comcast Corp. (Class A) ............. 11,894 515,902
Delphi Automotive Systems Corp. ..... 7,009 112,144
Eastman Kodak Co. ................... 1,274 69,194
Ford Motor Co. ...................... 8,496 390,285
Gannett Co. Inc. .................... 10,195 717,473
General Motors Corp. ................ 1,062 87,947
Interpublic Group Cos. Inc. ......... 12,873 608,249
Knight-Ridder Inc. .................. 9,346 476,062
McDonald's Corp. .................... 23,364 877,610
McGraw Hill Cos. Inc. ............... 2,124 96,642
Sabre Holdings Corp. ................ 1,062 39,228
The Walt Disney Co. ................. 18,808 778,181
5,227,700
CONSUMER - STABLE -- 5.0%
Anheuser Busch Cos. Inc. ............ 6,372 396,657(h)
Archer-Daniels Midland Co. .......... 11,683 121,208
Avon Products Inc. .................. 3,398 98,754
Bestfoods ........................... 5,735 268,470
Colgate-Palmolive Co. ............... 2,974 167,659
General Mills Inc. .................. 9,771 353,588
Gillette Co. ........................ 3,398 128,062
Heinz (H.J.) Co. .................... 6,372 222,224
Kimberly Clark Corp. ................ 2,124 118,944
Pepsico Inc. ........................ 23,576 814,845(h)
Procter & Gamble Co. ................ 7,859 442,069
Quaker Oats Co. ..................... 2,124 128,768
Ralston Purina Co. .................. 30,798 843,095
Sara Lee Corp. ...................... 20,178 363,204
Sysco Corp. ......................... 5,930 211,627
4,679,174
ENERGY -- 7.1%
BP Amoco PLC ADR .................... 4,672 247,908
Burlington Resources Inc. ........... 7,434 275,058
Chevron Corp. ....................... 4,885 451,557
Conoco Inc. (Class B) ............... 16,992 435,420
Exxon Mobil Corp. ................... 30,798 2,396,470
Halliburton Co. ..................... 12,744 522,504
Nabors Industries Inc. .............. 2,124 82,438(a)
Royal Dutch Petroleum Co. ADR ....... 10,621 611,371
Schlumberger Ltd. ................... 5,522 422,433
Texaco Inc. ......................... 3,823 205,008
Tosco Corp. ......................... 3,399 103,457
Transocean Sedco Forex Inc. ......... 1,850 94,928
Unocal Corp. ........................ 16,567 492,868
USX-Marathon Group .................. 9,559 249,132
6,590,552
FINANCIAL -- 13.5%
American Express Co. ................ 5,735 854,157
Associates First Capital Corp.
(Class A) ........................ 20,178 432,566
AXA Financial Inc. .................. 637 22,852
Bank of America Corp. ............... 20,178 1,058,084
Bank of New York Inc. ............... 4,506 187,281
BlackRock Inc. ...................... 9,558 193,550(a)
Chase Manhattan Corp. ............... 8,496 740,745
Citigroup Inc. ...................... 44,474 2,637,864
Comerica Inc. ....................... 2,974 124,536
Edwards A.G. Inc. ................... 4,113 164,520
------------------------------
See Notes to Schedules of Investments and Financial Statements.
13
<PAGE>
GE VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Federal National Mortgage Assoc. ... 16,665 $ 940,531
Fidelity National Financial Inc. ... 13,315 183,918
FleetBoston Financial Corp. ........ 15,931 581,481
Franklin Resources Inc. ............ 4,426 147,994
Goldman Sachs Group Inc. ........... 4,248 446,571
Lehman Brothers Holdings Inc. ...... 4,903 475,591
Morgan Stanley, Dean Witter & Co. .. 25,488 2,078,865
PNC Bank Corp. ..................... 11,682 526,420
United States Bancorp. ............. 12,744 278,775
Wachovia Corp. ..................... 2,125 143,570
Waddell & Reed Financial
Inc. (Class A) .................. 5,113 216,344
Wells Fargo & Co. .................. 4,294 175,786
12,612,001
HEALTHCARE -- 8.3%
Abbott Laboratories ................ 8,496 298,953(h)
Allergan Inc. ...................... 1,699 84,950
Amgen Inc. ......................... 8,496 521,442(a)
Baxter International Inc. .......... 2,124 133,148
Bristol-Myers Squibb Co. ........... 22,514 1,300,183(h)
Cardinal Health Inc. ............... 16,993 779,554
Eli Lilly & Co. .................... 8,071 508,473
Johnson & Johnson .................. 9,983 699,434
Merck & Co. Inc. ................... 29,948 1,860,519
Pharmacia & Upjohn Inc. ............ 6,043 358,048
Schering Plough Corp. .............. 15,930 585,427
Warner-Lambert Co. ................. 4,885 476,288
Watson Pharmaceuticals Inc. ........ 4,673 185,460(a)
7,791,879
INSURANCE -- 3.6%
AFLAC Inc. ......................... 1,911 87,070
Allstate Corp. ..................... 2,974 70,818
American International Group Inc. .. 6,5517 17,334
AXA-UAP ............................ 1,382 195,986
Chubb Corp. ........................ 7,009 473,546
Hartford Financial Services
Group Inc. ...................... 15,293 806,706
Jefferson-Pilot Corp. .............. 637 42,400
Lincoln National Corp. ............. 5,735 192,122
Loews Corp. ........................ 2 100
Progressive Corp. .................. 2,974 226,210
Reliastar Financial Corp. .......... 7,434 251,827
St. Paul Cos. Inc. ................. 9,346 318,932
Travelers Property Casualty Corp. .. 106 4,373
3,387,424
RETAIL TRADE -- 6.0%
Costco Wholesale Corp. ............. 4,885 256,768(a)
CVS Corp. .......................... 7,222 271,276
Federated Department Stores Inc. ... 10,621 443,427(a)
Home Depot Inc. .................... 9,770 630,165
Lowe's Cos. Inc. ................... 12,107 706,746
Target Corp. ....................... 24,215 1,810,071(h)
Wal-Mart Stores Inc. ............... 27,633 1,533,632(h)
5,652,085
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 20.5%
Analog Devices Inc. ................. 15,931 $ 1,283,441(a)
Applied Materials Inc. .............. 18,268 1,721,759(a)
Cisco Systems Inc. .................. 44,604 3,448,447(a,h)
Dell Computer Corp. ................. 24,639 1,328,966(a)
Hewlett Packard Co. ................. 3,398 450,447
Intel Corp. ......................... 27,612 3,643,058
International Business
Machines Corp. ................... 9,558 1,127,844
Lucent Technologies Inc. ............ 14,868 903,231
Motorola Inc. ....................... 6,584 937,397
Nortel Networks Corp. ............... 11,682 1,471,932
PerkinElmer Inc. .................... 3,611 240,132
Pitney Bowes Inc. ................... 16,356 730,909
Sun Microsystems Inc. ............... 9,346 875,749(a)
Synopsys Inc. ....................... 1,912 93,210(a)
Tellabs Inc. ........................ 3,187 200,731(a)
Texas Instruments Inc. .............. 4,248 679,680
19,136,933
TECHNOLOGY - SOFTWARE & SERVICES -- 7.0%
Automatic Data Processing Inc. ...... 10,195 491,909
Computer Associates
International Inc. ............... 2,548 150,810
Computer Sciences Corp. ............. 212 16,774(a)
EMC Corp. ........................... 8,284 1,035,500(a)
Equifax Inc. ........................ 21,240 536,310
First Data Corp. .................... 28,037 1,240,637
Microsoft Corp. ..................... 21,559 2,290,644(a)
PE Corp. - PE Biosystems Group ...... 530 51,145
Unisys Corp. ........................ 27,612 704,106(a)
6,517,835
TRANSPORTATION -- 2.3%
Burlington Northern
Santa Fe Corp. ................... 22,302 493,432
Canadian Pacific Ltd. ............... 19,118 427,765
Continental Airlines Inc. (Class B) . 9,359 382,549(a)
Delta Air Lines Inc. ................ 9,345 497,621
Southwest Airlines Co. .............. 2,974 61,897
United Parcel Service Inc. (Class B) 3,823 240,849
2,104,113
UTILITIES -- 9.4%
Alltel Corp. ........................ 6,372 401,834
AT&T Corp. .......................... 15,505 872,156
Bell Atlantic Corp. ................. 10,195 623,169(h)
Constellation Energy Group .......... 4,249 135,437
Dominion Resources Inc. ............. 2,549 97,977
Duke Energy Corp. ................... 11,152 585,480
Edison International ................ 16,992 281,430
El Paso Energy Corp. ................ 12,956 523,098
FPL Group Inc. ...................... 4,673 215,250
Global Crossing Ltd. ................ 11,682 478,232(a)
GTE Corp. ........................... 14,019 995,349
New Century Energies Inc. ........... 17,417 523,599
SBC Communications Inc. ............. 36,111 1,516,662
Sprint Corp. ........................ 9,877 622,251
U.S. WEST Inc. ...................... 11,257 817,540
Williams Cos. Inc. .................. 1,700 74,694
8,764,158
-----------------------
See Notes to Schedules of Investments and Financial Statements.
14
<PAGE>
GE VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES
(COST $72,124,460) .............. $92,915,299
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.5%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $512,132) ................. 512,132 512,132
OTHER ASSETS AND LIABILITIES,
NET 0.0% ........................ (22,765)
-----------
NET ASSETS-- 100% .................. $93,404,666
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Value Equity Fund had the following long Futures Contracts open at March
31, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE GAIN
--------------------------------------------------------------------------------
S&P 500 June 2000 1 $378,825 $26,325
-------------
See Notes to Schedules of Investments and Financial Statements.
15
<PAGE>
GE MID-CAP GROWTH FUND
Q&A
RALPH (CHIP) E. WHITMAN IS THE PORTFOLIO MANAGER OF THE GE MID-CAP GROWTH FUND
SINCE DECEMBER 1998. HE IS CURRENTLY A SENIOR VICE PRESIDENT OF GE ASSET
MANAGEMENT. CHIP HAS MORE THAN 11 YEARS OF INVESTMENT EXPERIENCE AND HAS HELD
POSITIONS WITH GE ASSET MANAGEMENT SINCE 1987. CHIP IS A CHARTERED FINANCIAL
ANALYST. HE HOLDS A B.A. IN MATHEMATICS FROM HAMILTON COLLEGE AND A M.S. IN
MANAGEMENT FROM THE SLOAN SCHOOL AT MIT.
BETWEEN OCTOBER 1997 AND NOVEMBER 1998, ELAINE G. HARRIS WAS THE PORTFOLIO
MANAGER OF THE FUND.
Q. HOW DID THE GE MID-CAP GROWTH FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
SIX MONTHS ENDED MARCH 31, 2000?
A. The Fund returned 33.76% (Class A) for the six-month period ended March 31,
2000 while the Standard & Poor's MidCap 400 Index returned 32.08% for the
same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK FOR THE SIX MONTHS ENDED MARCH 31,
2000?
A. The Fund outperformed its benchmark due to solid stock selection in the
technology, financial, and utilities sectors despite an underweighting in
both technology and utilities. The market remained very narrow over this
time period as investors put most of their funds to work in the technology
sector. The Fund remained underweight in the technology sector due to
valuation concerns; however, the Fund was able to invest in solid companies
that did quite well over this period. Holdings such as Finisar, Agilent, and
Analog Devices performed very well for the Fund. The financial sector
provided the portfolio with positive performance due to an overweight of the
sector and due to strong performance from holdings such as Waddell & Reed,
Hartford Financial Services, and AXA Financial to name a few. Another sector
providing a positive boost to performance was utilities where the portfolio
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 funds performance. The team
continues to seek out those companies with above average growth and
reasonable valuations.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN FOR THE FUND?
A. The focus of the Fund continues to be on investing in companies with solid
earnings growth prospects, strong visibility, and superior fundamentals for
the long term. New companies being added to the Fund must be priced
reasonably based on earnings growth in comparison to the market as well as
in comparison to its respective peer group. We believe companies with high
quality management teams and a focus on shareholder value will produce
sustainable gains over the long term. We do not and will not invest or
speculate on companies with operating losses and no material track record in
managing their business.
Q. WHICH INVESTMENTS STAND OUT?
A. High-flying technology stocks were no doubt the main focus with investors
over the past six months. The Fund's performance certainly benefited from
this trend. Holdings such as Finisar (communications equipment), up 688%,
Agilent Technologies (test & measurement devices and instruments), up 244%,
and Analog Devices (semiconductors), up 214% certainly all stand out. Other
technology issues in the Fund such as ADC Telecommunications, Nokia and
Nortel Networks were up 157%, 142%, and 147% respectively, as strength in
the telecommunications equipment sector continues to accelerate. Comdisco
was up 129% due to potential spin-offs of its DSL business (Prism
Communications) and venture capital investments in 2000. The Fund continues
to embrace the information revolution, however we are focused on business
models with sustainable advantages and remain disciplined about valuation
levels.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND?
A. Over the course of the past six months, we have rebalanced the Fund in
several areas including the technology, financial, capital goods, consumer
cyclical, and consumer stable sectors. Technology has been an underweighted
sector in the Fund and this is an area where we continue to add stocks with
strong long term fundamentals. The financial, capital goods, and consumer
cyclical sectors are overweighted and we have been taking profits where
appropriate. The consumer stable sector has been underweighted and the Fund
has been adding stocks in this area. These shifts have benefited the
portfolio over the past six months. The cash position is higher than our
historical average and we are looking to deploy this cash as good
opportunities materialize. We continue to emphasize those companies with the
higher than average earnings growth rates with reasonable valuations.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. We believe the Fund is well positioned to take advantage of an anticipated
rotation into stocks other than technology, telecommunications, and the
internet. Stocks in these areas have produced mind-boggling returns over the
past few years and are now trading at stretched valuation levels given
historical patterns. However, we must emphasize that the Fund is also well
positioned for intermittent technology rallies which has been the norm over
the past couple of years. As we stay focused on quality companies, we
believe the Fund can generate solid results.
[PHOTO OF RALPH E. WHITMAN OMITTED]
16
<PAGE>
GE MID-CAP GROWTH FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Analog Devices Inc. 9.27%
--------------------------------------------------------------------------------
Nokia Corp. ADR 5.98%
--------------------------------------------------------------------------------
Nortel Networks Corp. 3.96%
--------------------------------------------------------------------------------
Comdisco Inc. 3.34%
--------------------------------------------------------------------------------
Agilent Technologies Inc. 3.14%
--------------------------------------------------------------------------------
ADC Telecommunications Inc. 2.80%
--------------------------------------------------------------------------------
Viad Corp. 2.07%
--------------------------------------------------------------------------------
Waddell & Reed Financial Inc.
(Class A) 2.06%
--------------------------------------------------------------------------------
Bank of New York Inc. 2.02%
--------------------------------------------------------------------------------
Tyco International Ltd. 2.02%
--------------------------------------------------------------------------------
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 CORE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six One Five
Months Year Year
------- ------ ------
Number of Funds in peer group: 408 372 129
Peer group average annual total return: 23.41% 25.51% 21.96%
Lipper categories in peer group: MULTICAP CORE
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
CLASS A SHARES++
[LINE GRAPH OMITTED]
GE MID-CAP GROWTH GE MID-CAP GROWTH W/LOAD S&P MIDCAP 400
9/8/93 10000.00 9425.00 10000.00
9847.06 9280.85 9977.95
9/94 10251.10 9661.66 10262.83
11106.35 10467.73 10824.72
9/95 13743.36 12953.12 12919.75
14277.89 13456.91 13911.12
9/96 15715.18 14811.56 14730.65
15430.10 14542.87 15388.68
9/97 20917.94 19715.16 20490.44
22427.98 21138.37 22940.57
9/98 17548.00 16536.00 19213.60
20836.59 19635.36 23000.74
9/99 19987.85 18835.55 24048.16
3/00 26735.34 25194.05 31762.12
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ---- ---- ------------
GE Mid-Cap Growth 33.76% 28.31% 19.21% 16.17%
GE Mid-Cap Growth
w/load 26.13% 20.92% 17.80% 15.12%
(maximum load-5.75%)
S&P MidCap 400 32.08% 38.09% 24.02% 19.25%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE MID-CAP GROWTH GE MID-CAP GROWTH W/LOAD S&P MIDCAP 400
9/8/93 10000.00 10000.00 10000.00
9823.53 9823.53 9977.95
9/94 10180.31 10180.31 10262.83
10976.20 10976.20 10824.72
9/95 13542.06 13542.06 12919.75
14017.22 14017.22 13911.12
9/96 15383.31 15383.31 14730.65
15050.70 15050.70 15388.68
9/97 20336.85 20336.85 20490.44
21740.75 21740.75 22940.57
9/98 16958.00 16958.00 19213.60
20088.45 20088.45 23000.74
9/99 19218.82 19218.82 24048.16
03/00 25610.61 25610.61 31762.12
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ------ --------
GE Mid-Cap Growth 33.26% 27.49% 18.47% 15.41%
GE Mid-Cap Growth
w/load 29.26% 23.49% 18.47% 15.41%
(maximum load) 4.00% 4.00% 0.00% 0.00%
S&P MidCap 400 32.08% 38.09% 24.02% 19.25%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE MID-CAP GROWTH GE MID-CAP GROWTH W/LOAD S&P MIDCAP 400
9/30/99 10000.00 10000.00 10000.00
10/99 10305.43 10305.43 10510.50
11/99 10961.54 10961.54 11062.30
12/99 12262.44 12262.44 11719.40
1/00 11447.96 11447.96 11391.14
2/00 12194.57 12194.57 12187.38
3/00 13325.79 13225.79 13207.71
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Mid-Cap Growth 33.26%
GE Mid-Cap Growth w/load 32.26%
(maximum load) 1.00%
S&P MidCap 400 32.08%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE MID-CAP GROWTH S&P MIDCAP 400
1/5/98 10000.00 10000.00
3/98 11120.00 11104.28
6/98 10680.00 10865.88
9/98 8710.05 9300.25
12/98 10400.00 11886.37
3/99 10380.00 11133.40
6/99 11280.00 12707.03
9/99 9980.00 11640.40
12/99 12270.00 13641.85
3/00 13370.00 15374.30
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Mid-Cap Growth 33.97% 28.81% 13.86%
S&P MidCap 400 32.08% 38.09% 21.21%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
17
<PAGE>
GE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE MID-CAP GROWTH FUND
[PIE CHART OMITTED]
TECHNOLOGY 32.1%
FINANCIAL 15.2%
CAPITAL GOODS 12.1%
CONSUMER 9.9%
CASH & OTHER 8.8%*
HEALTHCARE 6.7%
RETAIL TRADE 6.6%
ENERGY 3.5%
UTILITIES 3.4%
BASIC MATERIALS 1.7%
*INCLUDES CASH EQUALIZED BY FUTURES OF (0.61)%.
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 91.2%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 1.7%
CK Witco Corp. ...................... 12,392 $ 126,244
Rohm & Hass Co. ..................... 3,519 157,035
Sealed Air Corp. .................... 7,435 403,813(a)
687,092
CAPITAL GOODS -- 12.1%
Dover Corp. ......................... 10,161 486,458
Honeywell International Inc. ........ 8,054 424,345
Hubbell Inc. (Class B) .............. 7,064 193,377
Martin Marietta Materials Inc. ...... 13,383 635,692
Masco Corp. ......................... 23,297 477,589
Mettler-Toledo International Inc. ... 16,605 679,767(a)
Molex Inc. (Class A) ................ 13,166 584,241
Textron Inc. ........................ 6,692 407,376
Thermo Electron Corp. ............... 12,392 252,487(a)
Tyco International Ltd. ............. 16,605 828,174
4,969,506
CONSUMER - CYCLICAL -- 9.2%
Clear Channel
Communications Inc. .............. 8,030 554,572(a)
Dial Corp. .......................... 30,980 425,975
Interpublic Group Cos. Inc. ......... 13,631 644,065
ITT Industries Inc. ................. 18,588 577,390
Jones Apparel Group Inc. ............ 12,764 406,852(a)
U.S. Industries Inc. ................ 26,643 294,738
Viad Corp. .......................... 37,174 850,355
3,753,947
CONSUMER - STABLE -- 0.7%
Manor Care Inc. ..................... 21,686 292,761(a)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ENERGY -- 3.5%
Nabors Industries Inc. .............. 8,551 $ 331,886(a)
Schlumberger Ltd. ................... 4,089 312,809
Tosco Corp. ......................... 13,383 407,345
Transocean Sedco Forex Inc. ......... 791 40,588
USX-Marathon Group .................. 12,640 329,430
1,422,058
FINANCIAL -- 12.2%
AXA Financial Inc. .................. 16,109 577,910
Bank of New York Inc. ............... 19,950 829,172
CIT Group Inc. (Class A) ............ 13,383 260,969
Comdisco Inc. ....................... 30,980 1,366,992(h)
FINOVA Group Inc. ................... 13,879 233,341
Firstar Corp. ....................... 20,818 477,513
GATX Corp. .......................... 10,409 395,542
Waddell & Reed Financial
Inc. (Class A) ................... 19,950 844,134
4,985,573
HEALTHCARE -- 6.7%
Allergan Inc. ....................... 2,477 123,850
Cardinal Health Inc. ................ 7,187 329,704
Covance Inc. ........................ 15,862 170,517(a)
Genentech Inc. ...................... 2,675 406,600(a)
Henry Schein Inc. ................... 18,588 300,893(a)
Sybron International Corp. .......... 18,588 539,052(a)
Tenet Healthcare Corp. .............. 16,605 381,915(a)
Watson Pharmaceuticals Inc. ......... 12,392 491,807(a)
2,744,338
INSURANCE -- 3.0%
American International
Group Inc. ....................... 6,196 678,462(h)
Hartford Financial Services
Group Inc. ....................... 7,683 405,278
UNUMProvident Corp. ................. 9,046 153,782
1,237,522
RETAIL TRADE -- 6.6%
Costco Wholesale Corp. .............. 12,392 651,355(a)
Federated Department Stores Inc. .... 18,588 776,049(a)
Kroger Co. .......................... 20,075 352,567(a)
Office Depot Inc. ................... 30,980 358,206(a)
Zale Corp. .......................... 12,144 573,045(a,h)
2,711,222
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 28.2%
ADC Telecommunications Inc. ......... 21,314 1,148,292(a)
Agilent Technologies Inc. ........... 12,392 1,288,768(a)
Altera Corp. ........................ 3,097 276,407(a)
Analog Devices Inc. ................. 47,157 3,799,086(a)
Atmel Corp. ......................... 4,206 217,135(a)
Finisar Corp. ....................... 2,418 354,275(a)
Nokia Corp. ADR ..................... 11,288 2,452,318
Nortel Networks Corp. ............... 12,887 1,623,762
SCI Systems Inc. .................... 7,434 400,042(a)
11,560,085
-------------------------------
See Notes to Schedules of Investments and Financial Statements.
18
<PAGE>
GE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TECHNOLOGY - SOFTWARE & SERVICES -- 3.9%
Cadence Design Systems Inc. ......... 12,516 $ 259,707(a)
Compuware Corp. ..................... 16,109 339,296(a)
Intuit Inc. ......................... 2,064 112,230(a)
KPNQwest N.V. ....................... 7,435 403,349(a)
SunGard Data Systems Inc. ........... 13,135 495,846(a)
1,610,428
UTILITIES -- 3.4%
El Paso Energy Corp. ................ 15,489 625,368
Qwest Communications
International Inc. ............... 16,109 781,287(a)
1,406,655
TOTAL INVESTMENTS IN SECURITIES
(COST $26,010,699) ............... 37,381,187
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.0%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund
(COST $3,272,262) ............. 3,272,262 3,272,262
OTHER ASSETS AND LIABILITIES,
NET 0.8% ...................... 332,322
-----------
NET ASSETS-- 100% ................ $40,985,771
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Mid Cap Growth Fund had the following Short Futures Contracts open at
March 31, 2000:
NUMBER
EXPIRATION OF UNDERLYING UNREALIZED
DESCRIPTION DATE CONTRACTS FACE VALUE LOSS
-------------------------------------------------------------------------------
S&P 500 Midcap June 2000 1 $(252,675) $(1,225)
---------------
See Notes to Schedules of Investments and Financial Statements.
19
<PAGE>
GE MID-CAP VALUE EQUITY FUND
Q&A
JON D. BOSSE OF NWQ INVESTMENT MANAGEMENT COMPANY (NWQ) IS THE PORTFOLIO MANAGER
OF THE GE MID-CAP VALUE EQUITY FUND. NWQ IS THE FUND'S SUB-ADVISER AND HAS TOTAL
ASSETS UNDER MANAGEMENT EXCEEDING $5 BILLION. PRIOR TO JOINING NWQ IN 1996, JON
SPENT TEN YEARS WITH ARCO INVESTMENT MANAGEMENT COMPANY WHERE HE WAS DIRECTOR OF
EQUITY RESEARCH AND MANAGED A VALUE-ORIENTED FUND. PREVIOUS TO THIS, HE SPENT
FOUR YEARS IN THE CORPORATE FINANCE DEPARTMENT OF ARCO. JON RECEIVED HIS B.A.
(SUMMA CUM LAUDE) IN ECONOMICS FROM WASHINGTON UNIVERSITY IN ST. LOUIS WHERE HE
RECEIVED THE JOHN M. OLIN AWARD FOR EXCELLENCE IN ECONOMICS. HE RECEIVED HIS
M.B.A. FROM THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA. JON IS ALSO A
CHARTERED FINANCIAL ANALYST AND A MEMBER OF THE ASSOCIATION FOR INVESTMENT
MANAGEMENT AND RESEARCH AND THE LOS ANGELES SOCIETY OF FINANCIAL ANALYSTS.
Q. HOW DID THE GE MID-CAP VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The Fund posted a return of 9.16% (Class A) for the six-month period ended
March 31, 2000. This compares with a 32.08% return for the S&P MidCap 400
Index. The Lipper Multicap Funds Index returned 7.98% 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 a
very speculative stock market environment that was dominated by
biotechnology and Internet-startups - areas of the market we have avoided
due to their lofty valuations. These lofty valuations have come to symbolize
investing in certain sectors of the market akin to high-stakes gambling
rather than wealth accumulation supported by fundamental analysis. Despite
our limited exposure in these areas, however, our performance was strong,
particularly relative to the value indices. The Fund's performance was
bolstered due to the strong returns of several holdings, across many sectors
of the portfolio. While it is disheartening to underperform your benchmark
over any measured time-period, we believe that the Fund is positioned to
generate above-average returns, long-term, without taking on the high levels
of risk necessary to outperform in a short-term, speculative environment.
Q. WHICH INVESTMENTS STAND OUT?
A. Portfolio holdings that positively contributed to performance the past
six-months include AT&T Liberty Media, Hartford Financial Services Group,
Pharmacia & Upjohn, and Quantum Corp.-DLT & Storage Systems. Our best
performing stock was CoreComm Limited, an alternative telephone company
providing telephone and Internet services in the U.S. The best performing
sector was our energy holdings, including BJ Services, Noble Affiliates, and
Tosco Corporation. On the downside, our tobacco-related holdings Philip
Morris, Loews Corp., and Nabisco Group Holdings were weak on tobacco
litigation concerns.
Q. HOW DO YOU PICK STOCKS?
A. Our investment philosophy is to identify undervalued companies with
catalysts present to improve profitability and unlock value. Catalysts may
include new management, industry consolidation, restructuring, and a
positive turn in the fundamentals. We are value-oriented and invest in
attractive risk/reward opportunities. We do not chase the market mania for
Internet, technology, and other speculative growth stocks where we find
risk/reward and valuation parameters extremely unattractive.
Q. WHAT IS THE OUTLOOK FOR THE FUND AND HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. After being ignored for some time, the "non-tech" part of the market staged
a strong recovery in March, halting an unprecedented valuation gap that had
developed between growth and value investment styles. While stable core
inflation rates and declining bond yields were a factor in this change in
investor sentiment, a more significant catalyst was the increasing
confidence exhibited by old economy companies in their own ability to
deliver sustainable long-term earnings growth. This is reflected in the
willingness of many of these companies to repurchase record amounts of their
shares back in the open market. Additionally, with many of these companies
selling near book value, the quantity of announced leverage buyouts and
merger and acquisition activity has also increased significantly. We view
these events as a positive development for the overall market and value
stocks in general. Accordingly, we have positioned the Fund in a number of
attractive investment opportunities, including our holdings in the finance,
energy services, healthcare, media, and telecommunications sectors.
Q. WHAT ARE THE FOUR BEST AND WORST PERFORMING STOCKS HELD DURING THE SIX MONTH
PERIOD?
BEST
CoreComm Limited + 20.5%
BJ Services + 20.4%
Pharmacia & Upjohn + 19.9%
Quantum Corp. DLT & Storage + 11.7%
Hartford Financial Group +7.8%
WORST
Delta Airlines - 3.6%
Tenet Healthcare -5.6%
Philip Morris -5.6%
Ford Motor Co. -6.8%
NabiscoGroup Holdings -17.5%
[PHOTO OF JON D. BOSSE OMITTED]
20
<PAGE>
GE MID-CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
NTL Inc. 5.04%
--------------------------------------------------------------------------------
CoreComm Ltd. 4.56%
--------------------------------------------------------------------------------
AT&T Corp. - Liberty Media
Group (Class A) 4.48%
--------------------------------------------------------------------------------
Telephone & Data Systems Inc. 4.36%
--------------------------------------------------------------------------------
MediaOne Group Inc. 3.06%
--------------------------------------------------------------------------------
Tenet Healthcare Corp. 2.82%
--------------------------------------------------------------------------------
Waddell & Reed Financial Inc.
(Class A) 2.75%
--------------------------------------------------------------------------------
Heller Financial Inc. 2.62%
--------------------------------------------------------------------------------
The E.W. Scripps Co. Inc.
(Class A) 2.53%
--------------------------------------------------------------------------------
Noble Affiliates Inc. 2.41%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek long-term growth of capital by
investing primarily in equity securities of companies with medium-sized market
capitalizations that the fund's management considers as undervalued by the
market and have above-average growth potential.
* LIPPER PERFORMANCE COMPARISON
MULTICAP VALUE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six Months One Year
---------- ----------
Number of Funds in peer group: 493 476
Peer group average annual total return: 7.98% 8.13%
Lipper categoriesin 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+
[LINE GRAPH OMITTED]
GE MID-CAP GE MID-CAP VALUE
VALUE W/LOAD S&P MIDCAP 400
12/31/98 10000.00 9425.00 10000.00
10060.00 9481.55 9615.30
9580.00 9029.15 9109.63
3/99 10100.00 9519.25 9366.52
11070.00 10433.47 10104.89
11110.00 10471.17 10147.43
6/99 11500.00 10838.75 10690.42
10970.00 10339.22 10461.11
10370.00 9773.72 10103.44
9/99 9830.00 9264.84 9793.06
10290.00 9698.40 10293.00
10360.00 9764.37 10833.38
12/99 10791.22 10170.80 11476.89
10036.24 9459.22 11155.42
9351.72 8814.06 11935.18
3/00 10730.82 10113.87 12934.39
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Mid-Cap Value 9.16% 6.25% 5.80%
GE Mid-Cap Value
w/load 2.88% 0.10% 0.91%
(maximum load-5.75%)
S&P MidCap 400 32.08% 38.09% 22.87%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE MID-CAP GE MID-CAP VALUE S&P
VALUE W/LOAD MIDCAP 400
12/31/98 10000.00 10000.00 10000.00
10050.00 10050.00 9615.30
9570.00 9570.00 9109.63
3/99 10080.00 10080.00 9366.52
11030.00 11030.00 10104.89
11070.00 11070.00 10147.43
6/99 11450.00 11450.00 10690.42
10910.00 10910.00 10461.11
10310.00 10310.00 10103.44
9/99 9770.00 9770.00 9793.06
10220.00 10220.00 10293.00
10280.00 10280.00 10833.38
12/99 10711.74 10711.74 11476.89
9950.20 9950.20 11155.42
9258.79 9258.79 11935.18
3/00 10631.58 10331.58 12934.39
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Mid-Cap Value 8.82% 5.47% 5.02%
GE Mid-Cap Value
w/load 4.82% 1.47% 2.64%
(maximum load) 4.00% 4.00% 3.00%
S&P MidCap 400 32.08% 38.09% 22.87%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE GE MID-CAP VALUE W/LOAD S&P MIDCAP 400
9/30/99 10000.00 10000.00 10000.00
10/99 10460.59 10460.59 10510.50
11/99 10522.01 10522.01 11062.30
12/99 10965.14 10965.14 11719.40
01/00 10191.50 10191.50 11391.14
02/00 9479.74 9479.74 12187.38
03/00 10882.62 10782.62 13207.71
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Mid-Cap Value 8.83%
GE Mid-Cap Value w/load 7.83%
(maximum load) 1.00%
S&P MidCap 400 32.08%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE MID-CAP VALUE S&P MIDCAP 400
12/31/98 10000.00 10000.00
10060.00 9615.30
9580.00 9109.63
3/99 10100.00 9366.52
11070.00 10104.89
11110.00 10147.43
6/99 11510.00 10690.42
10970.00 10461.11
10380.00 10103.44
9/99 9840.00 9793.06
10300.00 10293.00
10370.00 10833.38
12/99 10808.50 11476.89
10052.31 11155.42
9366.69 11935.18
3/00 10758.09 12934.39
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Mid-Cap Value 9.33% 6.52% 6.01%
S&P MidCap 400 32.08% 38.09% 22.87%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
21
<PAGE>
GE MID-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
MID-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
CONSUMER 23.6%
FINANCIAL SERVICES 21.8%
TELECOMMUNICATIONS 15.9%
ENERGY 7.3%
MATERIALS & PROCESSING 7.0%
HEALTHCARE 6.7%
CAPITAL GOODS 5.5%
CASH & OTHER 4.7%
TECHNOLOGY 3.0%
MISCELLANEOUS 2.8%
TRANSPORTATION 1.7%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 95.3%
--------------------------------------------------------------------------------
CAPITAL GOODS -- 5.5%
CNH Global N.V. .................... 12,000 $ 118,500
Ingersoll-Rand Co. ................. 5,400 238,950
Parker Hannifin Corp. .............. 4,700 194,169
York International Corp. ........... 7,500 175,312
726,931
CONSUMER - DISCRETIONARY -- 19.8%
AT&T Corp. - Liberty Media
Group (Class A) ................. 10,000 592,500(a)
Cox Communications Inc.
(Class A) ....................... 4,800 232,800(a)
Delphi Automotive Systems Corp. .... 8,000 128,000
Dillards Inc. (Class A) ............ 9,800 161,087
Ford Motor Co. ..................... 5,600 257,250
Hasbro Inc. ........................ 13,900 229,350
Lear Corp. ......................... 4,600 129,375(a)
Mandalay Resort Group .............. 8,500 143,438(a)
MediaOne Group Inc. ................ 5,000 405,000(a)
The E.W. Scripps Co. Inc. (Class A) 6,900 334,650
2,613,450
CONSUMER - STABLE -- 3.8%
Alberto-Culver Co. (Class A) ....... 8,100 177,188
Nabisco Group Holdings Corp. ....... 10,600 127,200
Philip Morris Cos. Inc. ............ 9,200 194,350
498,738
ENERGY -- 7.3%
BJ Services Co. .................... 1,700 125,588(a)
Conoco Inc. (Class B) .............. 10,700 274,187
Noble Affiliates Inc. .............. 9,700 318,281
Tosco Corp. ........................ 8,100 246,544
964,600
FINANCIAL -- 16.3%
Bank of America Corp. .............. 4,200 220,238
Bear Stearns Cos. Inc. ............. 6,063 276,624
Chase Manhattan Corp. .............. 3,400 296,437
Countrywide Credit Industries Inc. . 7,000 190,750
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
First Union Corp. .................. 6,600 $ 245,850
Heller Financial Inc. .............. 15,000 346,875
IndyMac Mortgage Holdings Inc. ..... 14,600 218,088
Waddell & Reed Financial
Inc. (Class A) .................. 8,600 363,887
2,158,749
HEALTHCARE -- 6.7%
Aetna Inc. ......................... 4,300 239,456
Pharmacia & Upjohn Inc. ............ 4,600 272,550
Tenet Healthcare Corp. ............. 16,200 372,600(a)
884,606
INSURANCE -- 5.5%
Hartford Financial Services
Group Inc. ...................... 5,900 311,225
MGIC Investment Corp. .............. 5,200 226,850
Torchmark Corp. .................... 8,300 191,938
730,013
MATERIALS & PROCESSING -- 7.0%
Applied Power Inc. (Class A) ....... 5,800 165,300
Bowater Inc. ....................... 3,400 181,475
Packaging Corp. of America ......... 16,700 175,350(a)
Praxair Inc. ....................... 7,000 291,375
Smurfit-Stone Container Corp. ...... 6,600 111,787(a)
925,287
MISCELLANEOUS -- 2.8%
Loews Corp. ........................ 4,200 210,000
Pactiv Corp. ....................... 17,800 155,750(a)
365,750
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 3.0%
Quantum Corp. - DLT &
Storage Systems ................. 13,600 162,350(a)
Quantum Corp. - Hard Disk Drive .... 21,200 238,500(a)
400,850
TELECOMMUNICATIONS -- 15.9%
Alltel Corp. ....................... 4,100 258,556
CoreComm Ltd. ...................... 13,725 603,900(a)
NTL Inc. ........................... 7,187 667,044(a)
Telephone & Data Systems Inc. ...... 5,200 577,200
2,106,700
TRANSPORTATION -- 1.7%
Delta Air Lines Inc. ............... 4,300 228,975
TOTAL INVESTMENTS IN SECURITIES
(COST $11,421,944) ............... 12,604,649
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 5.7%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $760,653) ................. 760,653 760,653
OTHER ASSETS AND LIABILITIES,
NET (1.0)% ...................... (134,393)
-----------
NET ASSETS-- 100% .................. $13,230,909
===========
----------
See Notes to Schedules of Investments and Financial Statements.
22
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
Q&A
PALISADE CAPITAL MANAGEMENT, L.L.C. ("PALISADE") WITH TOTAL ASSETS UNDER
MANAGEMENT EXCEEDING $2 BILLION, IS THE FUND'S SUB-ADVISER. THE FUND IS MANAGED
BY PALISADE'S SENIOR INVESTMENT COMMITTEE WHICH IS COMPOSED OF THE FOLLOWING
MEMBERS: JACK FEILER, MARTIN L. BERMAN, STEVEN E. BERMAN AND RICHARD MEISENBERG.
JACK FEILER (PICTURED), CHIEF INVESTMENT OFFICER AT PALISADE, HAS DAY-TO-DAY
RESPONSIBILITY FOR MANAGING THE FUND AND WORKS WITH, THE SENIOR INVESTMENT
COMMITTEE FOR DEVELOPING AND EXECUTING THE FUND'S INVESTMENT PROGRAM. JACK HAS
MORE THAN 30 YEARS OF INVESTMENT EXPERIENCE AND HAS SERVED AS THE PRINCIPAL
SMALL-CAP PORTFOLIO MANAGER AT PALISADE SINCE THE COMMENCEMENT OF PALISADE'S
OPERATIONS IN APRIL 1995. PRIOR TO JOINING PALISADE, JACK WORKED FOR BURNHAM &
CO. AS AN ACCOUNT EXECUTIVE AND WAS PROMOTED TO SENIOR EXECUTIVE VICE PRESIDENT
OF BROAD STREET INVESTMENT MANAGEMENT IN 1981. IN 1990 HE JOINED SMITH BARNEY AS
SENIOR VICE PRESIDENT OF INVESTMENTS. JACK RECEIVED HIS BACHELOR'S DEGREE IN
1964 FROM CITY COLLEGE OF NEW YORK AND HIS JURIS DOCTOR DEGREE FROM BROOKLYN LAW
SCHOOL IN 1967.
Q. HOW DID THE GE SMALL-CAP VALUE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
AND LIPPER PEER GROUP FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The Fund had a return of 30.33% (Class A) for the six months ended March 31,
2000. The Russell 2000 Index returned 26.65% and the Lipper average returned
12.77% for the same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. Core holdings in the financial services and consumer discretionary sectors
aided returns while strong additions in the technology and health care
sectors helped the Fund garner additional strength against the Russell 2000
Index. Among our top performers were companies with strong management and
product lines positioned well for the future, such as: Titan Corp., Emmis
Communications, Comdisco, Veeco Instruments and Glenayre Technologies.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. We believe that, over the long term, the stocks of small to medium
capitalization companies will outperform those of large capitalization
companies. These companies are often more efficient in bringing recently
developed products to the market in a timely manner and in reacting to
changes in the marketplace. Our primary focus is on quality of management.
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 technology and health care has
increased over the last six months as we have found more opportunities 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]
23
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Eastern Enterprises 3.99%
--------------------------------------------------------------------------------
NOVA Corp. 3.57%
--------------------------------------------------------------------------------
The Titan Corp. 3.42%
--------------------------------------------------------------------------------
Zebra Technologies Corp.
(Class A) 3.03%
--------------------------------------------------------------------------------
Quantum Corp. - Hard Disk Drive 2.89%
--------------------------------------------------------------------------------
CommScope Inc. 2.54%
--------------------------------------------------------------------------------
ITC DeltaCom Inc. 2.51%
--------------------------------------------------------------------------------
Glenayre Technologies Inc. 2.44%
--------------------------------------------------------------------------------
S3 Inc. 2.41%
--------------------------------------------------------------------------------
Aeroflex Inc. 2.40%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
Amutual 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 3/31/00
Six Months One Year
---------- ----------
Number of Funds in peer group: 345 328
Peer group average annual total return: 12.77% 24.01%
Lipper categoriesin 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+
[LINE GRAPH OMITTED]
GE SMALL-CAP GE SMALL-CAP VALUE
VALUE W/LOAD RUSSELL 2000
9/30/98 10000.00 9425.00 10000.00
10/98 10760.00 10141.38 10407.80
11/98 11450.00 10791.71 10953.17
12/98 12016.63 11325.76 11631.17
1/99 11383.12 10728.67 11785.86
2/99 10498.21 9894.64 10831.21
3/99 10437.88 9837.77 11000.18
4/99 11332.84 10681.28 11985.79
5/99 11795.41 11117.25 12160.78
6/99 12800.98 12065.02 12710.45
7/99 12881.43 12140.84 12362.19
8/99 12237.86 11534.27 11904.78
9/99 12227.80 11524.79 11907.17
10/99 12479.20 11761.73 11955.99
11/99 13263.55 12500.99 12669.76
12/99 14557.95 13720.97 14083.70
1/00 13891.53 13092.86 13856.95
2/00 15373.75 14489.87 16144.74
3/00 15936.76 15020.51 15080.80
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Small-Cap Value 30.33% 52.68% 36.36%
GE Small-Cap Value
w/load 22.86% 43.95% 31.09%
(maximum load-5.75%)
Russell 2000 26.65% 37.29% 31.47%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE SMALL-CAP GE SMALL-CAP VALUE
VALUE W/LOAD RUSSELL 2000
9/30/98 10000.00 10000.00 10000.00
10750.00 10750.00 10407.80
11440.00 11440.00 10953.17
12/98 11996.22 11996.22 11631.17
11353.74 11353.74 11785.86
10460.30 10460.30 10831.21
3/99 10400.07 10400.07 11000.18
11283.47 11283.47 11985.79
11735.21 11735.21 12160.78
6/99 12729.04 12729.04 12710.45
12799.31 12799.31 12362.19
12156.83 12156.83 11904.78
9/99 12136.76 12136.76 11907.17
12377.68 12377.68 11955.99
13150.66 13150.66 12669.76
12/99 14421.02 14421.02 14083.70
13755.08 13755.08 13856.95
15213.26 15213.26 16144.74
3/00 15752.90 15452.90 15080.80
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Small-Cap Value 29.79% 51.47% 35.31%
GE Small-Cap Value
w/load 25.79% 47.47% 33.59%
(maximum load) 4.00% 4.00% 3.00%
Russell 2000 26.65% 37.29% 31.47%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE SMALL-CAP GE SMALL-CAP VALUE
VALUE W/LOAD RUSSELL 2000
9/30/99 10000.00 10000.00 10000.00
10/99 10198.51 10198.51 10041.00
11/99 10835.40 10835.40 10640.45
12/99 11882.10 11882.10 11827.92
1/00 11333.41 11333.41 11637.49
2/00 12534.86 12534.86 13558.84
3/00 12979.49 12879.49 12665.31
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Small-Cap Value 29.79%
GE Small-Cap Value w/load 28.79%
(maximum load) 1.00%
Russell 2000 26.65%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE SMALL-CAP VALUE RUSSELL 2000
9/30/98 10000.00 10000.00
10/98 10760.00 10407.80
11/98 11460.00 10953.17
12/98 12021.58 11631.17
1/99 11387.80 11785.86
2/99 10502.53 10831.21
3/99 10442.17 11000.18
4/99 11347.56 11985.79
5/99 11810.32 12160.78
6/99 12816.31 12710.45
7/99 12906.85 12362.19
8/99 12273.07 11904.78
9/99 12252.95 11907.17
10/99 12514.51 11955.99
11/99 13299.18 12669.76
12/99 14593.75 14083.70
1/00 13938.76 13856.95
2/00 15421.12 16144.74
3/00 15984.18 15080.80
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Small-Cap Value 30.45% 53.07% 36.63%
Russell 2000 26.65% 37.29% 31.47%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
24
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE SMALL-CAP VALUE EQUITY FUND
[PIE CHART OMITTED]
TECHNOLOGY 32.9%
CONSUMER 14.7%
HEALTHCARE 10.3%
FINANCIAL SERVICES 8.4%
UTILITIES 7.5%
TELECOMMUNICATIONS 7.2%
CASH & OTHER 6.6%
PRODUCER DURABLES 5.4%
MATERIALS & PROCESSING 2.2%
REAL ESTATE INVESTMENT TRUST 1.6%
ENERGY 1.2%
AUTOS & TRANSPORTATION 1.0%
BROADCAST & CABLE 1.0%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 93.4%
--------------------------------------------------------------------------------
AUTO & TRANSPORTATION -- 1.0%
Kirby Corp. ......................... 24,300 $ 479,925(a)
BROADCAST/CABLE -- 1.0%
Pegasus Communications Corp. ........ 3,500 492,625(a)
CONSUMER - DISCRETIONARY -- 14.7%
Applebee's International Inc. ....... 17,400 489,375
Dollar Tree Stores Inc. ............. 11,700 609,863(a)
Fastenal Co. ........................ 11,900 569,713
Handleman Co. ....................... 49,600 440,200(a)
InterTAN Inc. ....................... 57,450 789,937(a)
Iron Mountain Inc. .................. 18,600 633,562(a)
Polaroid Corp. ...................... 21,300 505,875
Reader's Digest Assoc. Inc.
(Class A) ........................ 19,200 679,200
School Specialty Inc. ............... 31,600 679,400(a)
TeleTech Holdings Inc. .............. 28,900 997,050(a)
United Stationers Inc. .............. 15,100 538,881(a)
Ziff-Davis Inc. - ZDNet ............. 16,600 352,750(a)
7,285,806
ENERGY -- 1.2%
Noble Affiliates Inc. ............... 17,500 574,219
FINANCIAL SERVICES -- 8.4%
AmeriCredit Corp. ................... 12,900 210,431(a)
Commerce Bancorp Inc. ............... 7,200 266,400
Imperial Bancorp .................... 5,292 164,052
IndyMac Mortgage Holdings Inc. ...... 32,100 479,494
Investment Technology Group Inc. .... 12,900 454,725(a)
NOVA Corp. .......................... 60,600 1,764,975(a)
The BISYS Group Inc. ................ 12,000 798,000(a)
4,138,077
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
HEALTHCARE -- 10.3%
Barr Laboratories Inc. ............. 12,900 $ 541,800(a)
Beckman Coulter Inc. ............... 12,200 783,087
Chattem Inc. ....................... 18,100 255,663(a)
Hooper Holmes Inc. ................. 12,200 418,613
Oxford Health Plans Inc. ........... 33,000 503,250(a)
The Cooper Cos. Inc. ............... 22,700 730,656
Triad Hospitals Inc. ............... 34,500 577,875(a)
Universal Health Services Inc.
(Class B) ....................... 13,600 666,400(a)
Varian Medical Systems Inc. ........ 13,600 620,500
5,097,844
MATERIALS & PROCESSING -- 2.2%
Airgas Inc. ........................ 42,200 350,787(a)
Ball Corp. ......................... 8,400 290,325
Kaydon Corp. ....................... 7,800 213,038
New England Business Service Inc. .. 14,400 248,400
1,102,550
PRODUCER DURABLES -- 5.4%
Baldor Electric Co. ................ 20,500 370,281
Cable Design Technologies Corp. .... 15,100 512,456(a)
Graco Inc. ......................... 15,800 458,200
HEICO Corp. (Class A) .............. 10,100 141,400
L-3 Communications
Holdings Inc. ................... 17,700 920,400(a)
The Manitowoc Co. Inc. ............. 10,300 278,744
2,681,481
REAL ESTATE INVESTMENT TRUST -- 1.6%
First Industrial Realty Trust Inc. 13,000 354,250
Mid-Atlantic Realty Trust .......... 50,500 467,125
821,375
TECHNOLOGY -- 32.9%
About.com Inc. ..................... 7,900 696,187(a)
Aeroflex Inc. ...................... 24,000 1,188,000(a)
Affiliated Computer Services Inc. .. 17,100 649,800(a)
Comdisco Inc. ...................... 9,800 432,425
CommScope Inc. ..................... 27,500 1,254,687(a)
Danka Business Systems PLC ADR ..... 78,100 478,362(a)
Digene Corp. ....................... 9,400 432,400(a)
Frequency Electronics Inc. ......... 37,500 684,375
General Semiconductor Inc. ......... 60,400 1,041,900(a)
Glenayre Technologies Inc. ......... 68,700 1,206,544(a)
Hadco Corp. ........................ 6,700 432,988(a)
iGATE Capital Corp. ................ 8,900 401,613(a)
Lattice Semiconductor Corp. ........ 8,000 541,500(a)
Printronix Inc. .................... 13,000 258,375(a)
Quantum Corp. - Hard
Disk Drive ...................... 127,200 1,431,000(a)
S3 Inc. ............................ 56,800 1,192,800(a)
The Titan Corp. .................... 33,200 1,693,200(a)
VIA NET.WORKS Inc. ................. 16,200 430,313(a)
Visual Networks Inc. ............... 6,300 357,525(a)
Zebra Technologies Corp.
(Class A) ....................... 30,000 1,500,000(a)
16,303,994
------------------------
See Notes to Schedules of Investments and Financial Statements.
25
<PAGE>
GE SMALL-CAP VALUE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 7.2%
Global TeleSystems Group Inc. ...... 22,700 $ 465,350(a)
InterVoice-Brite Inc. .............. 25,900 747,863(a)
ITC DeltaCom Inc. .................. 34,900 1,243,312(a)
Microcell Telecommunications
Inc. (Class B) .................. 24,700 1,096,062(a)
3,552,587
UTILITIES -- 7.5%
Citizens Utilities Co. (Class B) ... 30,400 497,800
Eastern Enterprises ................ 33,000 1,975,875
ICG Communications Inc. ............ 20,000 722,500(a)
NSTAR .............................. 11,900 499,800
3,695,975
TOTAL INVESTMENTS IN SECURITIES
(COST $43,484,712) .............. 46,226,458
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.9%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $3,395,948) ..............3,395,948 3,395,948
OTHER ASSETS AND LIABILITIES,
NET (0.3)% ..................... (143,732)
-----------
NET ASSETS-- 100% ................. $49,478,674
===========
----------------
See Notes to Schedules of Investments and Financial Statements.
26
<PAGE>
GE GLOBAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PICTURED ON PAGE 32) MANAGES THE INTERNATIONAL EQUITY
INVESTMENT PROCESS AT GE 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
INVESTMENTS' ASSET ALLOCATION COMMITTEE. HE IS A CHARTERED FINANCIAL ANALYST, A
CHARTER MEMBER OF THE INTERNATIONAL SOCIETY OF SECURITY ANALYSTS AND A MEMBER OF
THE NEW YORK SOCIETY OF SECURITY ANALYSTS. RALPH IS A GRADUATE OF THE UNIVERSITY
OF WISCONSIN WITH A B.S. IN ECONOMICS AND A M.S. IN FINANCE.
MICHAEL J. SOLECKI (PICTURED ON THE LEFT ON PAGE 32) CO-LEADS THE TEAM OF
PORTFOLIO MANAGERS FOR THE GE GLOBAL EQUITY FUND. HE HAS SERVED THE FUND AS
CO-PORTFOLIO MANAGER SINCE SEPTEMBER 1997. MIKE ALSO HAS SERVED AS PORTFOLIO
MANAGER OF THE GE EUROPE EQUITY FUND SINCE THAT FUND'S COMMENCEMENT. MIKE HAS
MORE THAN NINE YEARS OF INVESTMENT EXPERIENCE AND JOINED GE ASSET MANAGEMENT IN
1990. HE IS CURRENTLY A VICE PRESIDENT OF GE INVESTMENTS. MIKE IS A CHARTERED
FINANCIAL ANALYST AND A MEMBER OF THE NEW YORK SOCIETY OF SECURITY ANALYSTS. HE
HOLDS A B.S. IN FINANCE FROM WESTERN NEW ENGLAND COLLEGE AND AN M.B.A. FROM
FORDHAM UNIVERSITY.
Q. HOW DID THE GE GLOBAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE
SIX MONTHS ENDED MARCH 31, 2000?
A. The GE Global Equity Fund rose 26.11% (Class A) in the six month period
ended March 31, 2000, well ahead of the MSCI World benchmark which rose
18.06%.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE SIX MONTHS
ENDED MARCH 31, 2000 AND HOW DID THEY IMPACT THE FUND?
A. The 4th quarter of 1999 witnessed the birth of "TMT" - the euphemism
describing the three sectors that outperformed at the expense of all others,
namely Technology, Media and Telecoms. That trend continued into the 1st
quarter of 2000, although investors became more discriminating as the
quarter progressed, concentrating on companies whose future earnings and
business plans looked more realistic. By the end of the quarter, the
valuations of many TMT stocks reached unjustifiably high levels and share
prices across the sectors fell sharply, with the fall continuing into early
April.
Over the last 6 months, many non-TMT stocks have been weak, although the
underlying fundamentals often looked good. These stocks became known as "old
economy" stocks and included such sectors as steels, chemicals and papers as
well as financials and general engineering, all of which benefit
fundamentally from the strong economic growth which most of the world is
currently experiencing. During the quarter, we reduced our holdings in the
TMT stocks because we could not justify their high valuations given their
expected growth rates, and increased our weights in the old economy sectors
where the valuations were more reasonable. By the end of the quarter, this
strategy was paying off.
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK FOR THE SIX MONTHS ENDED
MARCH 31, 2000?
A. The Fund outperformed the MSCI World Index during the six-month period.
Market attribution was positive across all regions except the U.S. However,
most of the outperformance came from stock selection that was positive
across the portfolio. The greatest contribution came from the Continental
European portfolio whose stocks significantly outperformed the underlying
index. The emerging markets stocks also performed very well. Holdings that
provided the greatest contribution to performance were Sonera Oyj (Finland),
Ericsson (Sweden), Vodafone Airtouch (U.K.), which acquired Mannesmann, EMC
Corp (U.S.), Lagardere (France), Comverse Technology (Israel), and Taiwan
Semiconductor Manufacturing (Taiwan).
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND RECENTLY BASED ON CURRENT MARKET
EVENTS?
A. During the period, many TMT share prices rose to levels that could not be
justified by their underlying growth. Our discipline of owning companies
which have forecasted 3 to 5 year cash earnings growth greater than the
underlying price/cash earnings ratio lead us to sell such stocks once they
became expensive. As a result, we sold our holding in Nokia, the Finnish
telecom equipment manufacturer, and began the sell program in many others
including Cap Gemini (French software), Nortel (Canadian telecom equipment),
Sonera (Finnish telecoms operator) and Comverse Technology (Israeli
telecommunications equipment). In addition, we sold Airtours (U.K. Travel
agent) because of weakening earnings expectations amid an overly competitive
environment. In the U.S., we trimmed our position in EMC Corp, which makes
enterprise data storage devices. New positions added during the 1st quarter
included British Aerospace (U.K., aerospace & defense) which is benefiting
from improved sales of Airbus globally, BMW (German car manufacturer) where
earnings expectations improved on the sale of the loss making Rover Car
operation, Samsung Electronics (Korea, electronics), and KPN (Netherlands,
telecoms operator). In the U.S., we added pharmaceutical giants Merck & Co.
and Bristol-Myers Squibb.
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. There is no doubt that the last six months have been an unusual period in
global stock markets. Every few decades, a new technology is developed which
can transform the way in which companies operate. In the 1970's, the
introduction of the computer into corporate life was seen as revolutionary,
but the main beneficiaries were companies that swiftly and successfully used
computers in their operations, rather than the computer manufacturers
themselves. Similarly, the main long-term beneficiaries of e-commerce will
probably not be the e-commerce vendors but those companies that successfully
use e-commerce to improve their operations. The recent rise in so-called
e-commerce stocks is unlikely to be long lived and investors should
concentrate on companies that use e-commerce effectively. Many of the recent
high performance stocks, especially those that have had a short life span,
will either disappear or be acquired. In our search for companies with share
price valuations that are cheap relative to their long-term growth, we will
take their use of e-commerce into account when estimating their future
earnings.
27
<PAGE>
GE GLOBAL EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Intel Corp. 1.71%
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. 1.70%
--------------------------------------------------------------------------------
Vodafone AirTouch PLC 1.60%
--------------------------------------------------------------------------------
Honeywell International Inc. 1.51%
--------------------------------------------------------------------------------
Canon Inc. 1.46%
--------------------------------------------------------------------------------
Interpublic Group Cos. Inc. 1.44%
--------------------------------------------------------------------------------
Cisco Systems Inc. 1.42%
--------------------------------------------------------------------------------
Dell Computer Corp. 1.39%
--------------------------------------------------------------------------------
Microsoft Corp. 1.39%
--------------------------------------------------------------------------------
Philips Electronics N.V. 1.33%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors
who seek long-term growth of
capital by investing primarily in
equity securities of companies
around the world.
* LIPPER PERFORMANCE COMPARISON
GLOBAL STOCK PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 3/31/00
Six One Five
Months Year Year
------- ------- -------
Number of Funds in peer group: 311 307 123
Peer group average annual total return: 31.38% 42.16% 20.05%
Lipper categories in peer group: GLOBAL, GLOBAL SMALL CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY GE GLOBAL EQUITY W/LOAD MSCI WORLD
2/22/93 10000.00 9425.00 10000.00
10405.58 9805.76 10576.80
9/93 11409.58 10751.88 11744.20
12615.25 11888.04 12006.81
9/94 13038.67 12287.06 12631.91
12646.61 11917.60 13126.17
9/95 14012.70 13204.94 14450.99
14798.50 13945.44 15754.10
9/96 15615.16 14715.02 16426.49
16167.68 15235.68 17228.07
9/97 18553.20 17483.68 20387.13
20128.56 18968.23 22733.25
9/98 16539.00 15585.56 20414.83
21406.49 20172.53 25607.49
9/99 22640.97 21335.85 26431.84
3/00 28553.08 26907.17 31206.53
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ --------
GE Global Equity 26.11% 33.39% 17.69% 15.91%
GE Global Equity w/load 18.85% 25.72% 16.30% 14.94%
(maximum load-5.75%)
MSCI World 18.06% 21.86% 18.91% 17.45%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY GE GLOBAL EQUITY W/LOAD MSCI WORLD
12/22/93 10000.00 10000.00 10000.00
10257.78 10257.78 10061.15
9/94 10569.61 10569.61 10584.95
10206.22 10206.22 10999.12
9/95 11269.36 11269.36 12109.26
11860.62 11860.62 13201.20
9/96 12464.76 12464.76 13764.63
12854.81 12854.81 14436.32
9/97 14698.12 14698.12 17083.46
15895.50 15895.50 19049.40
9/98 13017.00 13017.00 17106.68
16789.26 16789.26 21457.88
9/99 17683.36 17683.36 22148.64
03/00 23222.24 23222.24 26149.61
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ----- ----------
GE Global Equity 25.62% 32.31% 16.83% 14.37%
GE Global Equity w/load 21.62% 28.31% 16.83% 14.37%
(maximum load) 4.00% 4.00% 0.00% 0.00%
MSCI World 18.06% 21.86% 18.91% 16.55%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY GE GLOBAL EQUITY W/LOAD MSCI WORLD
10/1/99 10000.00 10000.00 10000.00
10/99 11308.99 11308.99 10518.40
11/99 10822.63 10822.63 10812.92
12/99 12106.23 12106.23 11686.82
1/00 11610.75 11610.75 11015.99
2/00 11979.07 11979.07 11044.41
3/00 12562.24 12462.24 11806.42
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Global Equity 25.62%
GE Global Equity w/load 24.62%
(maximum load) 1.00%
MSCI World 18.06%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE GLOBAL EQUITY MSCI WORLD
11/29/93 10000.00 10000.00
10861.41 10551.02
9/94 11242.92 11100.33
10919.95 11534.67
9/95 12115.44 12698.86
12810.58 13843.96
9/96 13534.42 14434.83
14027.20 15139.22
9/97 16124.78 17915.25
17523.65 19976.92
9/98 14417.00 17939.60
18684.44 22502.66
9/99 19779.03 23227.06
3/00 24971.45 27422.83
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ------ --------
GE Global Equity 26.25% 33.65% 17.99% 15.53%
MSCI World 18.06% 21.86% 18.91% 17.25%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
28
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE GLOBAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 40.8%
UNITED STATES 34.1%
JAPAN 9.9%
PACIFIC RIM 6.8%
OTHER REGIONS 4.6%
CASH & OTHER 3.8%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 95.6%
--------------------------------------------------------------------------------
AUSTRALIA -- 1.3%
Brambles Industries Ltd. ........... 29,954 $ 761,264
Cable & Wireless Optus Ltd. ........ 105,558 422,573(a)
1,183,837
BRAZIL -- 0.3%
Uniao de Bancos Brasilieros
S.A. GDR ........................ 8,120 257,810
CANADA -- 1.4%
ATI Technologies Inc. .............. 14,375 254,753(a)
Celestica Inc. ..................... 9,673 513,273(a)
CGI Group Inc. (Class A) ........... 29,656 416,368(a)
Nortel Networks Corp. .............. 680 85,680
1,270,074
DENMARK -- 0.2%
Novo-Nordisk AS (Series B) ......... 1,158 156,328
FINLAND -- 1.0%
Pohjola Group Insurance Corp.
(Series B) ...................... 2,035 151,018
Sampo Insurance Co. Ltd.
(Series A) ...................... 11,923 456,675
Sonera Oyj ......................... 708 48,337
Stora Enso Oyj ..................... 18,450 197,868
Tietoenator Oyj .................... 1,102 66,162
920,060
FRANCE -- 9.8%
Aerospatiale Matra (Regd.) ......... 16,644 318,430(a)
Alstom ............................. 27,584 765,979
Aventis S.A. ....................... 10,009 548,211
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
AXA-UAP ............................. 8,193 $1,161,875
Banque Nationale de Paris ........... 5,571 440,097
Cap Gemini S.A. ..................... 461 124,925
Carrefour S.A. ...................... 2,908 372,852
Coflexip S.A. ADR ................... 5,560 304,410
Lagardere S.C.A. .................... 14,046 1,141,211
Lyonnaise Des Eaux S.A. ............. 2,556 439,571
Michelin CGDE (Regd.) (Class B) ..... 12,157 390,437
Rhodia S.A. ......................... 16,443 294,431
Schneider S.A. ...................... 7,796 497,919
STMicroelectronics N.V. ............. 1,640 301,513
Total S.A. (Class B) ................ 7,386 1,106,841
Vivendi ............................. 5,026 579,924
8,788,626
GERMANY -- 5.4%
Bayer AG ............................ 5,445 243,904
Bayerische Motoren Werke
(BMW) AG ......................... 13,200 419,005
DaimlerChrysler AG .................. 3,983 259,423
Deutsche Bank AG .................... 6,486 429,778
Fresenius Medical Care AG ........... 6,854 511,261
HypoVereinsbank AG .................. 4,306 266,978
Infineon Technologies AG ............ 1,030 56,267(a)
Metallgesellschaft AG ............... 36,552 673,757
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) .......... 2,492 775,520
Preussag AG ......................... 14,595 670,681
Veba AG ............................. 9,457 482,208
4,788,782
GREECE -- 0.5%
Hellenic Telecommunication
Organization S.A. ADR ............ 10,384 150,568
Hellenic Telecommunication
Organization S.A. GDR ............ 9,550 271,651
422,219
HONG KONG -- 1.5%
Cheung Kong (Holdings) Ltd. ......... 31,918 477,547
Giordano International Ltd. .........218,000 264,572
Hutchison Whampoa Ltd. .............. 5,000 90,220
Johnson Electric Holdings Ltd. ...... 79,500 543,678
1,376,017
IRELAND -- 1.5%
Bank of Ireland ..................... 83,455 599,342
CRH PLC ............................. 30,696 558,466
Jefferson Smurfit Group PLC ......... 92,628 215,311
1,373,119
ISRAEL -- 1.2%
ECI Telecommunications Ltd. ......... 22,453 704,463
Teva Pharmaceutical Industries
Ltd. ADR ......................... 9,097 339,432
1,043,895
------------------------------
See Notes to Schedules of Investments and Financial Statements.
29
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ITALY -- 1.1%
Banca Intesa S.p.A. ................ 84,653 $ 292,625
Saipem ............................. 89,630 437,708
Telecom Italia S.p.A ............... 15,043 224,709
955,042
JAPAN -- 9.9%
Asahi Bank Ltd. .................... 20,024 112,149
Canon Inc. ......................... 30,000 1,300,346
Fujitsu Ltd. ....................... 30,000 920,469
ITOCHU Corp. ....................... 61,271 326,452 (a)
Kao Corp. .......................... 17,144 524,348
Mazda Motor Corp. .................. 118,000 402,279
Minebea Co. Ltd. ................... 46,000 611,601
Mitsukoshi Ltd. .................... 10,844 46,898 (a)
NAMCO Ltd. ......................... 2,700 110,719
Nippon Telegraph and
Telephone Corp. (NTT) ........... 44 698,583
Shin-Etsu Chemical Co. ............. 12,000 728,194
Sony Corp. ......................... 3,700 526,177(a)
Sony Corp. ......................... 3,700 522,574
Sumitomo Electric Industries ....... 19,000 267,793
The Fuji Bank Ltd. ................. 32,000 300,784
The Tokyo Electric Power Co. Inc. .. 13,600 298,057
Toshiba Corp. ...................... 115,000 1,171,675
8,869,098
MEXICO -- 1.4%
Desc S.A. de C.V. (Series B) ....... 100,823 73,618
Desc S.A. de C.V. ADR .............. 8,451 126,765
Grupo Carso S.A. de C.V. ADR ....... 15,454 118,841
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) .. 113,944 521,525(a)
Grupo Televisa S.A. GDR ............ 6,006 408,408(a)
1,249,157
NETHERLANDS -- 4.9%
Getronics N.V. ..................... 5,935 454,076
IHC Caland N.V. .................... 9,762 417,838
ING Groep N.V. ..................... 18,642 1,010,347
Ispat International N.V. (Regd.)
(Class A) ....................... 13,558 201,675
Koninklijke Ahold N.V. ............. 8,933 232,578
Koninklijke KPN N.V. ............... 6,574 753,189
Philips Electronics N.V. ........... 7,076 1,189,799
Vendex KBB N.V. .................... 8,592 141,509
4,401,011
PANAMA -- 0.1%
Panamerican Beverages Inc.
(Class A) ....................... 3,293 58,039
POLAND -- 0.3%
Telekomunikacja Polska
S.A. GDR (Series A) ............. 32,994 308,494(a,b)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
PORTUGAL -- 0.1%
Banco Comercial Portugues
(Regd.) ......................... 16,757 $ 90,337
SINGAPORE -- 0.2%
Chartered Semiconductor
Manufacturing Ltd. ADR .......... 1,957 184,447(a)
SOUTH KOREA -- 1.9%
Kookmin Bank ....................... 5,392 54,640
Korea Electric Power Corp. ......... 4,770 135,947
Korea Telecom Corp. ADR ............ 5,680 248,500
Korea Telecom Corp. ................ 1,912 169,533
Pohang Iron & Steel Co. Ltd. ....... 3,590 352,845
Pohang Iron & Steel Co. Ltd. ADR ... 3,363 92,482
Samsung Electronics ................ 2,210 669,848
1,723,795
SPAIN -- 1.6%
Repsol S.A. ........................ 10,231 224,442
Telefonica S.A. .................... 46,629 1,178,750(a)
1,403,192
SWEDEN -- 2.5%
Autoliv Inc. SDR ................... 15,369 425,729
Ericsson LM Telephone (Series B) ... 11,259 990,448
Investor AB (Series B) ............. 5,717 89,452
Invik & Co. AB ..................... 1,232 178,489
Kinnevik AB (Series B) ............. 2,394 91,565
NetCom Systems AB (Series B) ....... 1,817 156,892(a)
Nordic Baltic Holding AB FDR ....... 50,492 265,917
Pharmacia & Upjohn Inc. ............ 913 54,095
2,252,587
SWITZERLAND -- 1.2%
ABB Ltd. ........................... 3,703 425,466
Credit Suisse AG ................... 2,270 451,992
Novartis AG (Regd.) ................ 108 147,738
1,025,196
TAIWAN -- 1.9%
Synnex Technology International
Corp. GDR ....................... 4,421 138,156(b)
Taiwan Semiconductor
Manufacturing Co. ............... 224,617 1,513,194
1,651,350
UNITED KINGDOM -- 10.3%
Bank of Scotland ................... 19,061 218,347
BP Amoco PLC ADR ................... 16,936 898,667
British Aerospace PLC .............. 212,755 1,185,546
British Energy PLC ................. 6,103 18,802(a)
Cable & Wireless PLC ............... 49,617 931,354
----------------------
See Notes to Schedules of Investments and Financial Statements.
30
<PAGE>
GE GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Commercial Union PLC .............. 61,187 $ 848,492
Corus Group PLC ................... 334,567 536,659
Granada Group PLC ................. 93,065 997,176
Invensys PLC ...................... 153,863 685,291
Nycomed Amersham PLC .............. 63,972 519,434
Railtrack Group PLC ............... 9,650 112,156
Reed International PLC ............ 39,560 288,464
Royal & Sun Alliance Insurance
Group PLC ...................... 49,717 308,702
Saatchi & Saatchi PLC ............. 16,998 99,590
Somerfield PLC .................... 124,044 109,607
Vodafone AirTouch PLC ............. 256,001 1,426,526
Vodafone AirTouch PLC ADR ......... 5 278
9,185,091
UNITED STATES -- 34.1%
American Express Co. .............. 4,680 697,028
Applied Materials Inc. ............ 6,266 590,571(a)
Bristol-Myers Squibb Co. .......... 18,764 1,083,621
Cisco Systems Inc. ................ 16,396 1,267,616(a)
Citigroup Inc. .................... 19,886 1,179,488
Colgate-Palmolive Co. ............. 16,774 945,634
Comcast Corp. (Class A) ........... 20,135 873,356
Dell Computer Corp. ............... 22,988 1,239,915(a)
Dover Corp. ....................... 21,336 1,021,461
Duke Energy Corp. ................. 16,096 845,040
EMC Corp. ......................... 7,531 941,375(a)
Federal National Mortgage Assoc. .. 15,000 846,563
First Data Corp. .................. 21,220 938,985
Gannett Co. Inc. .................. 11,925 839,222
Home Depot Inc. ................... 15,953 1,028,968
Honeywell International Inc. ...... 25,525 1,344,848
Intel Corp. ....................... 11,598 1,530,211
International Business
Machines Corp. ................. 7,609 897,862
Interpublic Group Cos. Inc. ....... 27,203 1,285,342
Lowe's Cos. Inc. .................. 1,190 69,466
McDonald's Corp. .................. 25,756 967,460
MCI WorldCom Inc. ................. 20,782 941,684(a)
Merck & Co. Inc. .................. 18,872 1,172,423
Microsoft Corp. ................... 11,652 1,238,025(a)
Morgan Stanley, Dean
Witter & Co. ................... 12,667 1,033,152
SBC Communications Inc. ........... 20,386 856,212
Schering Plough Corp. ............. 18,578 682,742
Schlumberger Ltd. ................. 12,441 951,736
The Walt Disney Co. ............... 23,339 965,651
Wal-Mart Stores Inc. .............. 16,097 893,384
Warner-Lambert Co. ................ 6,510 634,725
Zebra Technologies Corp.
(Class A) ...................... 12,275 613,750(a)
30,417,516
TOTAL COMMON STOCK
(COST $71,099,378) ............. 85,355,119
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
--------------------------------------------------------------------------------
Henkel KGaA ........................ 5,085 292,149
Telecomunicacoes Brasileiras
S.A. ADR ........................ 1,372 205,371(a)
TOTAL PREFERRED STOCK
(COST $471,041) ................. 497,520
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.), 06/03/02
(COST $0) .......................... 46 $ 3,964(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $71,570,419) ................. 85,856,603
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.7%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $3,306,315) ..............3,306,315 3,306,315
OTHER ASSETS AND LIABILITIES,
NET 0.1% ........................ 87,442
-----------
NET ASSETS-- 100% .................. $89,250,360
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Global Equity Fund invested in the following sectors at March 31, 2000:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Information Technology 20.22%
Consumer Goods 18.98%
Finance 15.25%
Industrials 13.19%
Telecommunication Services 10.08%
Health Care 6.55%
Energy 4.40%
Materials 4.39%
Cash and Other 3.80%
Utilities 3.14%
-------
100.00%
=======
-------------
See Notes to Schedules of Investments and Financial Statements.
31
<PAGE>
GE INTERNATIONAL EQUITY FUND
Q&A
RALPH R. LAYMAN (PLEASE REFER TO PAGE 27 FOR RALPH'S BIOGRAPHICAL DETAILS) LEADS
A TEAM OF PORTFOLIO MANAGERS FOR THE GE INTERNATIONAL EQUITY FUND.
Q. HOW DID THE GE INTERNATIONAL EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The GE International Equity Fund rose 26.06% (Class A) in the six month
period ending March 31, 2000, well ahead of the MSCI EAFE benchmark which
rose 16.87%.
Q. WHAT EVENTS HAD AN IMPACT ON THE FINANCIAL MARKETS DURING THE SIX MONTHS
ENDED MARCH 31, 2000 AND HOW DID THEY IMPACT THE FUND?
A. The 4th quarter of 1999 witnessed the birth of "TMT" - the euphemism
describing the three sectors that outperformed at the expense of all others,
namely Technology, Media and Telecoms. The trend continued into the 1st
quarter of 2000, although investors became more discriminatory as the
quarter progressed -concentrating on companies whose future earnings and
business plans looked more realistic. By the end of the quarter, the
valuations of many TMT stocks reached unjustifiably high levels and share
prices across the sectors fell sharply, with the fall continuing into early
April.
Over the last 6 months, many non-TMT stocks have been weak, although the
underlying fundamentals often looked good. These stocks became known as "old
economy" stocks and included such sectors as steels, chemicals and papers as
well as financials and general engineering, all of which benefit
fundamentally from the strong economic growth which most of the world is
currently experiencing. During the quarter, we reduced our holdings in the
TMT stocks because we could not justify their high valuations given their
expected growth rates, and increased our weights in the old economy sectors
where the valuations were more reasonable. By the end of the quarter, this
strategy was paying off.
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK FOR THE SIX MONTHS ENDED
MARCH 31, 2000?
A. The Fund outperformed the MSCI EAFE Index during the six month period.
Market attribution was positive across all regions. However, most of the
outperformance came from stock selection that was positive across the
portfolio. The greatest contribution came from the Continental European
portfolio whose stocks significantly outperformed the underlying index. The
emerging markets stocks also performed very well. Holdings that provided the
greatest contribution to performance were Lagardere (France), Vodafone
Airtouch (U.K.), which acquired Mannesmann, Ericsson (Sweden), Taiwan
Semiconductor Manufacturing (Taiwan) and Toshiba (Japan).
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND RECENTLY BASED ON CURRENT MARKET
EVENTS?
A. During the period, many TMT share prices rose to levels that could not be
justified by their underlying growth. Our discipline of owning companies
which have forecasted 3 to 5 year cash earnings growth greater than the
underlying price/cash earnings ratio lead us to sell such stocks once they
became expensive. As a result, we sold our holding in Nokia, the Finnish
telecoms equipment manufacturer, and began the sell program in many others
including Cap Gemini (French software), Nortel (Canadian telecoms
equipment), Sonera (Finnish telecoms operator) and STMicroelectronics
(French computer chip manufacturer). In addition, we sold Airtours (U.K.
Travel agent) because of weakening earnings expectations amid an overly
competitive environment, and FKI (U.K. engineering company) because of
valuations. New positions added during the 1st quarter included BMW (German
car manufacturer) where earnings expectations improved on the sale of the
loss making Rover Car operation, Samsung Electronics (Korea, electronics),
and KPN (Netherlands, telecoms operator).
Q. WHAT IS YOUR OUTLOOK FOR THE FUND?
A. There is no doubt that the last six months has been an unusual period in
global stock markets. Every few decades, a new technology is developed which
can transform the way in which companies operate. In the 1970s, the
introduction of the computer into corporate life was seen as revolutionary,
but the main beneficiaries were companies that swiftly and successfully used
computers in their operations, rather than the computer manufacturers
themselves. Similarly, the main long term beneficiaries of e-commerce will
probably not be the e-commerce vendors but those companies that successfully
use e-commerce to improve their operations. The recent rise in so-called
e-commerce stocks is unlikely to be long lived and investors should
concentrate on companies that use e-commerce effectively. Many of the recent
high performance stocks, especially those that have had a short life span,
will either disappear or be acquired. In our search for companies with share
price valuations that are cheap relative to their long-term growth, we will
take their use of e-commerce into account when estimating their future
earnings.
(PICTURED LEFT TO RIGHT: M. SOLECKI, J. STUDER, R. LAYMAN, B. HOPKINSON)
32
<PAGE>
GE INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. 2.75%
--------------------------------------------------------------------------------
Vodafone AirTouch PLC 2.61%
--------------------------------------------------------------------------------
Canon Inc. 2.40%
--------------------------------------------------------------------------------
Philips Electronics N.V. 2.18%
--------------------------------------------------------------------------------
BAE Systems PLC 2.16%
--------------------------------------------------------------------------------
Toshiba Corp. 2.14%
--------------------------------------------------------------------------------
Telefonica S.A. 2.14%
--------------------------------------------------------------------------------
AXA-UAP 2.13%
--------------------------------------------------------------------------------
Lagardere S.C.A. 2.10%
--------------------------------------------------------------------------------
Total S.A. (Class B) 2.03%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for
investors who seek
long-term growth of
capital by investing
primarily in foreign
equity securities.
* LIPPER PERFORMANCE COMPARISON
INTERNATIONAL STOCK PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE
PERIOD ENDED 3/31/00
Six One Five
Months Year Year
------ ---------- --------
Number of Funds in peer group: 759 717 270
Peer group average annual total return: 29.38% 44.66% 15.73%
Lipper categories in peer group: INTERNATIONAL, CANADIAN, INTERNATIONAL
SMALL CAP
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
CLASS A SHARES+
[LINE GRAPH OMITTED]
GE INT'L EQUITY GE INT'L EQUITY W/LOAD MSCI EAFE
3/2/94 10000.00 9425.00 10000.00
9760.00 9195.98 9569.30
9/94 10126.66 9541.46 10067.77
9703.64 9142.89 10150.72
9/95 10649.18 10033.80 10650.87
11379.76 10722.16 11402.42
9/96 11877.76 11191.38 11568.08
12543.6 11818.75 11568.04
9/97 14109.82 13294.46 12976.21
15473.21 14579.07 13719.51
9/98 12882.00 12137.17 11894.60
15519.80 14622.93 14551.79
9/99 16163.52 15229.45 15576.45
03/00 20375.65 19198.16 18203.72
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ------ ---------
GE Int'l Equity 26.06% 31.29% 15.99% 12.41%
GE Int'l Equity w/load 18.80% 23.76% 14.63% 11.32%
(maximum load-5.75%)
MSCI EAFE 16.87% 25.10% 12.39% 10.35%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY GE INT'L EQUITY W/LOAD MSCI EAFE
3/2/94 10000.00 10000.00 10000.00
9753.33 9753.33 9569.30
9/94 10086.65 10086.65 10067.77
9629.36 9629.36 10150.72
9/95 10523.58 10523.58 10650.87
11210.92 11210.92 11402.42
9/96 11658.03 11658.03 11568.08
12257.71 12257.71 11568.04
9/97 13740.18 13740.18 12976.21
15011.34 15011.34 13719.51
9/98 12450.00 12450.00 11894.60
14946.19 14946.19 14551.79
9/99 15508.21 15508.21 15576.45
03/00 19472.12 19472.12 18203.72
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------- ------ -------
GE Int'l Equity 25.56% 30.28% 15.12% 11.58%
GE Int'l Equity w/load 21.56% 26.28% 15.12% 11.58%
(maximum load) 4.00% 4.00% 0.00% 0.00%
MSCI EAFE 16.87% 25.10% 12.39% 10.35%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY GE INT'L EQUITY W/LOAD MSCI EAFE
9/30/99 10000.00 10000.00 10000.00
10/99 10266.14 10266.14 10374.60
11/99 10747.45 10747.45 10735.01
12/99 12131.76 12131.76 11698.48
1/00 11594.43 11594.43 10955.63
2/00 12221.32 12221.32 11250.55
3/00 12561.63 12461.63 11686.70
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Int'l Equity 25.62%
GE Int'l Equity w/load 24.62%
(maximum load) 1.00%
MSCI EAFE 16.87%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE INT'L EQUITY MSCI EAFE
3/2/94 10000.00 10000.00
9760.00 9569.30
9/94 10146.67 10067.77
9733.29 10150.72
9/95 10699.89 10650.87
11461.43 11402.42
9/96 11980.87 11568.08
12669.13 11568.04
9/97 14276.37 12976.21
15697.18 13719.51
9/98 13085.00 11894.60
15781.79 14551.79
9/99 16450.89 15576.45
03/00 20766.23 18203.72
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ----- ----------
GE Int'l Equity 26.23% 31.58% 16.36% 12.77%
MSCI EAFE 16.87% 25.10% 12.39% 10.35%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
33
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE INTERNATIONAL EQUITY FUND
[PIE CHART OMITTED]
EUROPE 63.0%
JAPAN 15.9%
PACIFIC RIM 10.9%
OTHER REGIONS 7.4%
CASH & OTHER 2.9%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 96.2%
--------------------------------------------------------------------------------
AUSTRALIA -- 2.1%
Brambles Industries Ltd. ........... 47,492 $1,206,982
Cable & Wireless Optus Ltd. ........ 149,507 598,511(a)
1,805,493
BRAZIL -- 0.5%
Uniao de Bancos Brasilieros
S.A. GDR ........................ 13,920 441,960
CANADA -- 2.3%
ATI Technologies Inc. .............. 20,371 361,014(a)
Celestica Inc. ..................... 15,713 833,771(a)
CGI Group Inc. (Class A) ........... 42,648 598,774(a)
Nortel Networks Corp. .............. 1,439 181,314
1,974,873
DENMARK -- 0.2%
Novo-Nordisk AS (Series B) ......... 1,481 199,932
FINLAND -- 1.6%
Pohjola Group Insurance
Corp. (Series B) ................ 3,066 227,528
Sampo Insurance Co. Ltd.
(Series A) ...................... 19,619 751,447
Sonera Oyj ......................... 740 50,522
Stora Enso Oyj ..................... 27,002 289,584
Tietoenator Oyj .................... 1,527 91,679
1,410,760
FRANCE -- 15.8%
Aerospatiale Matra (Regd.) ......... 23,827 455,855(a)
Alstom ............................. 43,814 1,216,669
Aventis S.A. ....................... 16,306 893,110
AXA-UAP ............................ 13,013 1,845,414
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Banque Nationale de Paris ........... 7,904 $ 624,399
Cap Gemini S.A. ..................... 589 159,611
Carrefour S.A. ...................... 4,080 523,121
Coflexip S.A. ADR ................... 9,497 519,961
Lagardere S.C.A. .................... 22,374 1,817,845
Lyonnaise Des Eaux S.A. ............. 3,636 625,305
Michelin CGDE (Regd.) (Class B) ..... 20,076 644,765
Rhodia S.A. ......................... 22,554 403,856
Schneider S.A. ...................... 11,068 706,897
STMicroelectronics N.V. ............. 2,831 520,478
Total S.A. (Class B) ................ 11,713 1,755,270
Vivendi ............................. 8,093 933,809
13,646,365
GERMANY -- 8.6%
Bayer AG ............................ 7,462 334,254
Bayerische Motoren Werke
(BMW) AG ......................... 20,300 644,379
DaimlerChrysler AG .................. 5,459 355,559
Deutsche Bank AG .................... 10,567 700,195
Fresenius Medical Care AG ........... 11,076 826,194
HypoVereinsbank AG .................. 5,932 367,792
Infineon Technologies AG ............ 1,321 72,164(a)
Metallgesellschaft AG ............... 57,660 1,062,837
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) .......... 3,978 1,237,968
Preussag AG ......................... 23,401 1,075,342
Veba AG ............................. 15,488 789,726
7,466,410
GREECE -- 0.7%
Hellenic Telecommunication
Organization S.A. ADR ............ 17,793 257,999
Hellenic Telecommunication
Organization S.A. GDR ............ 11,340 322,568
580,567
HONG KONG -- 2.4%
Cheung Kong (Holdings) Ltd. ......... 46,277 692,383
Giordano International Ltd. .........300,000 364,089
Hutchison Whampoa Ltd. .............. 9,000 162,395
Johnson Electric Holdings Ltd. ......128,400 878,091
2,096,958
IRELAND -- 2.2%
Bank of Ireland .....................117,823 846,160
CRH PLC ............................. 43,163 785,284
Jefferson Smurfit Group PLC .........127,979 297,483
1,928,927
ISRAEL -- 2.0%
Comverse Technology Inc. ............ 219 41,391(a)
ECI Telecommunications Ltd. ......... 35,885 1,125,892
Teva Pharmaceutical Industries
Ltd. ADR ......................... 15,112 563,866
1,731,149
------------------
See Notes to Schedules of Investments and Financial Statements.
34
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ITALY -- 1.6%
Banca Intesa S.p.A. ............... 119,897 $ 414,454
Saipem ............................ 126,411 617,329
Telecom Italia S.p.A .............. 21,382 319,400
1,351,183
JAPAN -- 15.9%
Asahi Bank Ltd. ................... 30,024 168,157
Asahi Chemical Industry Co. Ltd. .. 1,000 6,380
Canon Inc. ........................ 48,000 2,080,553
Fujitsu Ltd. ...................... 48,000 1,472,751
ITOCHU Corp. ...................... 86,226 459,413(a)
Kao Corp. ......................... 29,737 909,504
Mazda Motor Corp. ................. 168,000 572,737
Minebea Co. Ltd. .................. 72,000 957,288
Mitsukoshi Ltd. ................... 12,493 54,029(a)
NAMCO Ltd. ........................ 3,800 155,827
Nippon Telegraph and
Telephone Corp. (NTT) .......... 64 1,016,120
Shin-Etsu Chemical Co. ............ 20,000 1,213,656
Sony Corp. ........................ 5,800 824,819(a)
Sony Corp. ........................ 5,800 819,169
Sumitomo Electric Industries ...... 27,000 380,548
The Fuji Bank Ltd. ................ 44,000 413,578
The Tokyo Electric Power Co. Inc. . 19,200 420,786
Toshiba Corp. ..................... 182,000 1,854,303
13,779,618
MEXICO -- 2.2%
Desc S.A. de C.V. (Series B) ...... 118,256 86,347
Desc S.A. de C.V. ADR ............. 16,503 247,545
Grupo Carso S.A. de C.V. ADR ...... 21,043 161,821
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) . 183,829 841,390(a)
Grupo Televisa S.A. GDR ........... 8,500 578,000(a)
1,915,103
NETHERLANDS -- 7.8%
Getronics N.V. .................... 8,310 635,783
IHC Caland N.V. ................... 13,827 591,830
ING Groep N.V. .................... 29,455 1,596,382
Ispat International N.V. (Regd.)
(Class A) ...................... 18,579 276,363
Koninklijke Ahold N.V. ............ 15,468 402,721
Koninklijke KPN N.V. .............. 10,434 1,195,432
Philips Electronics N.V. .......... 11,209 1,884,746
Vendex KBB N.V. ................... 12,209 201,081
6,784,338
PANAMA -- 0.1%
Panamerican Beverages Inc.
(Class A) ...................... 3,932 69,302
POLAND -- 0.5%
Telekomunikacja Polska
S.A. GDR (Series A) ............ 45,706 427,351(a,b)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
PORTUGAL -- 0.2%
Banco Comercial Portugues
(Regd.) ......................... 33,224 $ 179,111
SINGAPORE -- 0.3%
Chartered Semiconductor
Manufacturing Ltd. ADR .......... 2,905 273,796(a)
SOUTH KOREA -- 3.0%
Kookmin Bank ....................... 7,064 71,583
Korea Electric Power Corp. ......... 7,140 203,492
Korea Telecom Corp. ADR ............ 8,776 383,950
Korea Telecom Corp. ................ 2,860 253,590
Pohang Iron & Steel Co. Ltd. ....... 4,960 487,496
Pohang Iron & Steel Co. Ltd. ADR ... 5,286 145,365
Samsung Electronics ................ 3,540 1,072,970
2,618,446
SPAIN -- 2.5%
Repsol S.A. ........................ 14,019 307,542
Telefonica S.A. .................... 73,233 1,851,280(a)
2,158,822
SWEDEN -- 3.9%
Autoliv Inc. SDR ................... 25,289 700,518
Ericsson LM Telephone (Series B) ... 17,884 1,573,245
Investor AB (Series B) ............. 8,912 139,444
Invik & Co. AB ..................... 941 136,329
Kinnevik AB (Series B) ............. 3,640 139,221
NetCom Systems AB (Series B) ....... 2,055 177,443(a)
Nordic Baltic Holding AB FDR ....... 66,026 347,728
Pharmacia & Upjohn Inc. ............ 2,489 147,473
3,361,401
SWITZERLAND -- 1.8%
ABB Ltd. ........................... 6,122 703,403
Credit Suisse AG ................... 3,288 654,692
Novartis AG (Regd.) ................ 148 202,456
1,560,551
TAIWAN -- 3.0%
Synnex Technology International
Corp. GDR ....................... 7,135 222,969(b)
Taiwan Semiconductor
Manufacturing Co. ............... 353,000 2,378,081
2,601,050
UNITED KINGDOM -- 15.0%
Bank of Scotland ................... 29,318 335,843
BAE Systems PLC .................... 334,984 1,866,649
Cable & Wireless PLC ............... 78,261 1,469,027
Commercial Union PLC ............... 97,524 1,352,384
Corus Group PLC .................... 538,502 863,779
-----------------------------
See Notes to Schedules of Investments and Financial Statements.
35
<PAGE>
GE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Granada Group PLC ................. 147,755 $ 1,583,171
Invensys PLC ...................... 247,781 1,103,592
Nycomed Amersham PLC .............. 102,972 836,103
Railtrack Group PLC ............... 14,713 170,999
Reed International PLC ............ 53,778 392,140
Royal & Sun Alliance Insurance
Group PLC ...................... 70,450 437,438
Saatchi & Saatchi PLC ............. 25,757 150,908
Somerfield PLC .................... 186,557 164,845
Vodafone AirTouch PLC ............. 405,511 2,259,649
12,986,527
TOTAL COMMON STOCK
(COST $72,177,022) ............. 83,349,993
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.9%
--------------------------------------------------------------------------------
Henkel KGaA ....................... 7,831 449,914
Telecomunicacoes Brasileiras
S.A. ADR ....................... 1,879 281,263(a)
TOTAL PREFERRED STOCK
(COST $701,607) ................ 731,177
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.), 06/03/02
(COST $0) ....................... 57 4,912(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $72,878,629) .............. 84,086,082
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.8%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $1,527,178) ..............1,527,178 1,527,178
OTHER ASSETS AND LIABILITIES,
NET 1.1% ........................ 989,524
-----------
NET ASSETS-- 100% ..................... $86,602,784
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE International Equity Fund invested in the following sectors at March 31,
2000:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Information Technology 17.70%
Finance 17.31%
Consumer Goods 16.21%
Industrials 15.07%
Telecommunication Services 12.55%
Materials 6.89%
Health Care 4.24%
Energy 3.70%
Utilities 3.43%
Cash and Other 2.90%
-------
100.00%
=======
--------------
See Notes to Schedules of Investments and Financial Statements.
36
<PAGE>
GE EUROPE EQUITY FUND
Q&A
MICHAEL SOLECKI LEADS THE TEAM OF PORTFOLIO MANAGERS FOR THE GE EUROPE EQUITY
FUND (PLEASE REFER TO PAGE 27 FOR MIKE'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE EUROPE EQUITY FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE SIX
MONTHS ENDING MARCH 31, 2000?
A. The GE Europe Equity Fund had an outstanding six months ending March 31,
2000. The fund rose 45.78% (Class A), outperforming the MSCI Europe
benchmark by 28.29%.
Q. WHAT WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS IN THE PAST
SIX MONTHS AND HOW DID THIS IMPACT THE FUND?
A. The recent six months have witnessed a strong performance within the
European Technology, Media and Telecommunications ("TMT") sectors and our
portfolio has participated in the re-rating of many of Europe's Technology
leaders.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. Excellent stock selection in France and Germany was the main driver of first
quarter performance, adding more than 700 basis points to the total return.
French holdings Lagardere and Thomson Multimedia along with German holdings
Prosieben Media and Epcos were among the top contributors to performance.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL? WHICH STOCKS/SECTORS HAVE YOU
LIKED?
A. Our positions in Thomson Multimedia, Epcos and Ericsson were some of our
strongest performance drivers. These three positions are focused on the
convergence of media and data technologies-- a concept which is rapidly
becoming reality in Europe.
As we progressed through the 1st quarter of 2000, many TMT valuations began
to fully reflect their future growth potential and we selectively reduced
our positions. As a result, we increased our exposure in the "old economy"
where we believe there are substantial bottom-up opportunities in companies
with low valuations and strong growth catalysts. One such company is the
U.K. based BAE Systems-- formerly known as British Aerospace. BAE Systems is
the world's 2nd largest aerospace/ defense company. The group has strong
proprietary technologies in the civil and military aerospace markets and a
strong balance sheet that will enable them to continue to participate in the
global consolidation of the sector.
Q. WHAT IS THE OUTLOOK FOR THE FUND GOING FORWARD?
A. We believe European markets continue to be well positioned from an economic
standpoint. The current environment of accelerating economic growth coupled
with low inflation creates a healthy backdrop for equities in Europe. With
unemployment beginning to decline and productivity on the rise we believe
the current environment may well continue.
[PHOTO OMITTED]
(PICTURED LEFT TO RIGHT: C. SALDANHA, W. CHU, M. SOLECKI)
37
<PAGE>
GE EUROPE EQUITY FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Epcos AG 3.65%
--------------------------------------------------------------------------------
Thomson Multimedia 3.30%
--------------------------------------------------------------------------------
Philips Electronics N.V. 3.26%
--------------------------------------------------------------------------------
Vodafone AirTouch PLC 2.97%
--------------------------------------------------------------------------------
Lagardere S.C.A. 2.93%
--------------------------------------------------------------------------------
Ericsson LM Telephone (Series B) 2.69%
--------------------------------------------------------------------------------
AXA-UAP 2.63%
--------------------------------------------------------------------------------
Cable & Wireless PLC 2.53%
--------------------------------------------------------------------------------
BAE Systems PLC 2.40%
--------------------------------------------------------------------------------
Total S.A. (Class B) 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 3/31/00
Six Months One Year
---------- ----------
Number of Funds in peer group: 164 153
Peer group average annual total return: 33.17% 33.83%
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+
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
1/29/99 10000.00 9425.00 10000.00
9470.00 8925.47 9746.20
3/99 9620.00 9066.85 9852.43
9910.00 9340.17 10146.04
9380.00 8840.65 9658.72
6/99 9670.00 9113.97 9821.76
10120.00 9538.10 9913.01
10240.00 9651.20 10013.72
9/99 9930.00 9359.10 9936.52
10160.00 9575.87 10302.18
11120.00 10480.68 10580.03
12/99 12756.07 12022.68 11664.48
12766.13 12032.17 10833.97
14768.07 13919.01 11398.96
3/00 14476.33 13644.04 11674.24
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Europe Equity 45.78% 50.48% 37.11%
GE Europe Equity
w/load 37.35% 41.79% 30.35%
(maximum load-5.75%)
MSCI Europe 17.49% 18.49% 14.15%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
1/29/99 10000.00 10000.00 10000.00
9470.00 9470.00 9746.20
3/99 9610.00 9610.00 9852.43
9890.00 9890.00 10146.04
9360.00 9360.00 9658.72
6/99 9640.00 9640.00 9821.76
10080.00 10080.00 9913.01
10200.00 10200.00 10013.72
9/99 9880.00 9880.00 9936.52
10100.00 10100.00 10302.18
11050.00 11050.00 10580.03
12/99 12668.68 12668.68 11664.48
12668.68 12668.68 10833.97
14641.59 14641.59 11398.96
3/00 14351.16 14051.16 11674.24
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Europe Equity 45.25% 49.34% 36.10%
GE Europe Equity
w/load 41.25% 45.34% 33.67%
(maximum load) 4.00% 4.00% 3.00%
MSCI Europe 17.49% 18.49% 14.15%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY GE EUROPE EQUITY W/LOAD MSCI EUROPE
9/30/99 10000.00 10000.00 10000.00
10/99 10222.67 10222.67 10368.00
11/99 11184.21 11184.21 10647.62
12/99 12816.29 12816.29 11739.01
1/00 12826.47 12826.47 10903.19
2/00 14821.70 14821.70 11471.79
3/00 14526.48 14426.48 11748.83
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Europe Equity 45.26%
GE Europe Equity w/load 44.26%
(maximum load) 1.00%
MSCI Europe 17.49%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE EUROPE EQUITY MSCI EUROPE
1/29/99 10000.00 10000.00
9470.00 9746.20
3/99 9630.00 9852.43
9920.00 10146.04
9390.00 9658.72
6/99 9680.00 9821.76
10130.00 9913.01
10250.00 10013.72
9/99 9940.00 9936.52
10180.00 10302.18
11140.00 10580.03
12/99 12781.85 11664.48
12791.92 10833.97
14806.40 11398.96
3/00 14514.30 11674.24
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Europe Equity 46.02% 50.72% 37.42%
MSCI Europe 17.49% 18.49% 14.15%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
38
<PAGE>
GE EUROPE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE EUROPE EQUITY FUND
[PIE CHART OMITTED]
DEVELOPED EUROPE 91.6%
CASH & OTHER 3.6%
EMERGING EUROPE 3.4%
OTHER REGIONS 1.4%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 95.0%
--------------------------------------------------------------------------------
DENMARK -- 0.4%
Tele Danmark AS (Series B) .......... 842 $ 75,779
FINLAND -- 1.4%
Sampo Insurance Co. Ltd.
(Series A) ....................... 4,140 158,570
Sonera Oyj .......................... 713 48,679
Stora Enso Oyj ...................... 2,449 26,265
233,514
FRANCE -- 25.0%
Aerospatiale Matra (Regd.) .......... 5,404 103,389(a)
Alstom .............................. 10,842 301,071
Aventis S.A. ........................ 6,331 346,761
AXA-UAP ............................. 3,200 453,802
Banque Nationale de Paris ........... 1,939 153,177
Cap Gemini S.A. ..................... 521 141,184
Carrefour S.A. ...................... 506 64,877
Coflexip S.A. ADR ................... 516 28,251
Credit Lyonnais ..................... 2,678 100,393(a)
Imerys .............................. 1,257 153,223
Lagardere S.C.A. .................... 6,209 504,470
Michelin CGDE (Regd.) (Class B) ..... 3,068 98,533
Rhodia S.A. ......................... 1,101 19,715
Schneider S.A. ...................... 2,269 144,918
STMicroelectronics N.V. ............. 617 113,435
Thomson Multimedia .................. 6,001 568,879(a)
Total S.A. (Class B) ................ 2,724 408,209
Transiciel S.A. ..................... 1,660 304,554
Vivendi ............................. 2,514 290,077
4,298,918
GERMANY -- 13.1%
Bayerische Motoren Werke
(BMW) AG ......................... 3,190 101,259
Dialog Semiconductor PLC ............ 603 47,347(a)
Epcos AG ............................ 4,779 629,218(a)
Fresenius Medical Care AG ........... 2,825 210,726
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
HypoVereinsbank AG .................. 369 $ 22,878
Infineon Technologies AG ............ 544 29,718(a)
Metallgesellschaft AG ............... 17,563 323,736
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) .......... 780 242,739
Preussag AG ......................... 2,681 123,200
Suess MicroTec AG ................... 3,358 122,187(a)
Techem AG ........................... 8,680 249,346(a)
Veba AG ............................. 3,140 160,107
2,262,461
GREECE -- 2.8%
Antenna TV S.A. ADR ................. 11,242 262,782(a)
Hellenic Telecommunication
Organization S.A. ADR ............ 7,543 109,373
Hellenic Telecommunication
Organization S.A. GDR ............ 3,710 105,532
477,687
IRELAND -- 3.7%
Bank of Ireland ..................... 48,347 347,210
CRH PLC ............................. 9,966 181,316
Irish Life & Permanent PLC .......... 2,249 20,458
Jefferson Smurfit Group PLC ......... 38,179 88,746
637,730
ITALY -- 3.2%
Banca Popolare di Lodi .............. 10,991 135,976
Saipem .............................. 35,057 171,201
Telecom Italia S.p.A ................ 16,651 248,729
555,906
NETHERLANDS -- 12.1%
Fox Kids Europe N.V. ................ 10,877 229,136(a)
Getronics N.V. ...................... 1,462 111,855
IFCO Systems N.V. ................... 2,939 69,652(a)
IHC Caland N.V. ..................... 4,863 208,148
ING Groep N.V. ...................... 5,846 316,838
Ispat International N.V. (Regd.)
(Class A) ........................ 2,905 43,212
Koninklijke Ahold N.V. .............. 11,147 290,221
Koninklijke KPN N.V. ................ 1,948 223,184
Philips Electronics N.V. ............ 3,344 562,279
Vendex KBB N.V. ..................... 2,347 38,655
2,093,180
POLAND -- 0.6%
Telekomunikacja Polska
S.A. GDR (Series A) .............. 12,045 112,621(a,b)
PORTUGAL -- 3.0%
PT MULTIMEDIA - Servicos de
Telecomunicacoes e
Multimedia SGPS S.A. ............. 2,770 246,674(a)
Telecel-Comunicacoes
Pessoais S.A. .................... 13,609 265,839(a)
512,513
----------------------------
See Notes to Schedules of Investments and Financial Statements.
39
<PAGE>
GE EUROPE EQUITY FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SPAIN -- 2.0%
Sol Melia S.A. ..................... 10,619 $ 133,203(a)
Telefonica S.A. .................... 8,706 220,082(a)
353,285
SWEDEN -- 3.6%
Autoliv Inc. SDR ................... 5,676 157,228
Ericsson LM Telephone (Series B) ... 5,265 463,159
620,387
SWITZERLAND -- 1.9%
ABB Ltd. ........................... 1,990 228,646
Credit Suisse AG ................... 468 93,186
Novartis AG (Regd.) ................ 2 2,736
324,568
UNITED KINGDOM -- 20.8%
Bank of Scotland ................... 14,401 164,966
BAE Systems PLC .................... 74,278 413,903
British Energy PLC ................. 3,557 10,958(a)
Cable & Wireless PLC ............... 23,210 435,672
Cobham PLC ......................... 2,133 31,582
Commercial Union PLC ............... 15,342 212,751
Corus Group PLC .................... 138,581 222,290
Granada Group PLC .................. 34,707 371,880
Invensys PLC ....................... 58,676 261,337
Jazztel PLC ADR .................... 1,901 153,862(a)
Mayflower Corp. PLC ................ 16,652 48,516
Nycomed Amersham PLC ............... 14,138 114,796
Prudential PLC ..................... 2,346 35,595
Railtrack Group PLC ................ 951 11,053
Reed International PLC ............. 24,467 178,409
Royal & Sun Alliance
Insurance Group PLC ............. 45,130 280,221
Somerfield PLC ..................... 47,914 42,338
Standard Chartered PLC ............. 2,040 27,282
Tesco PLC .......................... 5,215 17,436
Thus PLC ........................... 3,962 30,278(a)
Vodafone AirTouch PLC .............. 91,757 511,301
3,576,426
UNITED STATES -- 1.4%
Global TeleSystems Group Inc. ...... 7,498 153,709(a)
Infonet Services Corp. (Class B) ... 3,056 69,142(a)
UnitedGlobalCom Inc. ............... 169 12,685(a)
235,536
TOTAL COMMON STOCK
(COST $13,566,005) .............. 16,370,511
--------------------------------------------------------------------------------
PREFERRED STOCK -- 1.4%
--------------------------------------------------------------------------------
ProSieben Media AG
(COST $99,592) ................. 2,012 242,750
TOTAL INVESTMENTS IN SECURITIES
(COST $13,665,597) ............. 16,613,261
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.5%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $596,320) ................. 596,320 $ 596,320
OTHER ASSETS AND LIABILITIES,
NET 0.1% ........................ 16,303
-----------
NET ASSETS-- 100% .................. $17,225,884
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Europe Equity Fund invested in the following sectors at March 31, 2000:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Consumer Goods 22.79%
Industrials 16.75%
Finance 16.06%
Telecommunication Services 15.47%
Information Technology 9.75%
Materials 5.50%
Health Care 3.92%
Cash and Other 3.55%
Energy 3.53%
Utilities 2.68%
-------
100.00%
=======
---------------
See Notes to Schedules of Investments and Financial Statements.
40
<PAGE>
GE EMERGING MARKETS FUND
Q&A
RALPH LAYMAN LEADS A TEAM OF PORTFOLIO MANAGERS FOR THE GE EMERGING MARKETS FUND
(PLEASE REFER TO PAGE 27 FOR RALPH'S BIOGRAPHICAL DETAILS).
Q. HOW DID THE GE EMERGING MARKETS FUND PERFORM COMPARED TO ITS BENCHMARK FOR
THE SIX MONTHS ENDED MARCH 31, 2000
A. The GE Emerging Markets Fund began the millennium on a strong note. For the
trailing six months, the Fund rose 60.08% (Class A) compared with the
benchmark return of 28.48%.
Q. WHAT WORLD EVENTS HAD A MAJOR IMPACT ON THE FINANCIAL MARKETS IN THE PAST
SIX MONTHS, AND HOW DID THIS IMPACT THE EMERGING MARKETS FUND?
A. Global investors returned to the emerging markets following signs that the
developing nations would be prepared for the Y2K computer glitch. Global
money was attracted to the bargains within the telecom and technology
sectors of the asset class. In many instances, quality emerging market
companies in these areas were trading at steep discounts to their peers in
the developed world.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK? WHICH INVESTMENTS STAND OUT?
A. Stock selection explains our outperformance. As a group, the Indian software
names continue to outpace the index. Companies such as Wipro and Satyam are
becoming the favored IT service vendors for multinationals, such as General
Electric. Their fundamentals remain extremely solid, although valuation
concerns led us to pare back our exposure somewhat in the first quarter.
Q. WHICH STOCKS/SECTORS HAVE PERFORMED WELL?
A. Elsewhere, technology, media, and telecom ("TMT") names advanced, a trend we
witnessed globally in the first quarter. Stocks that performed well include
Dongan Yayin Holdings, Turkey's leading media group, and Brazil's Telesp
Cellular, a leading mobile phone provider.
Q. WHAT WERE THE MAJOR BUYS AND SELLS FOR THE QUARTER AND WHY?
A. During the quarter, we trimmed our holdings in the popular TMT sectors. We
sold our positions in Tele Sudeste Cellular, a Brazilian mobile phone
operator, and in Hitron Technologies, a Taiwanese telecom equipment firm. We
have moved money into some of the neglected sectors of the market.
Specifically, two companies in the paper industry, Sappi of South Africa and
Aracruz of Brazil, appear interesting. Both should have good earnings this
year, and we expect higher paper prices going forward.
Q. WHAT IS THE OUTLOOK FOR THE EMERGING MARKETS FUND AND HOW IS THE FUND
POSITIONED GOING FORWARD?
A. The emerging markets remain attractive. We are impressed by the quality of
the companies we have found in India, Taiwan and Israel. These firms are
growing rapidly. We expect this trend to continue as multi-nationals
outsource more of their production to the developing world. This movement
should provide stockpickers like ourselves with many attractive investment
opportunities in the future. Among the regions, we have upped our weighting
in Taiwan, having purchased some shares during the pre-election nervousness.
We expect the Taiwanese electronics firms to report strong earnings this
quarter, and we are encouraged by the market's surprisingly low correlation
to NASDAQ. These changes bring our Asian weighting closer to a neutral
position. In Emerging Europe, we have maintained our overweight stance. The
region continues to converge with Western Europe, a trend that could provide
for falling interest rates, more stable currencies, and higher equity
valuations. The Fund remains underweight in Latin America, although it is
roughly neutral in Brazil and Mexico. We remain concerned about the impact
of higher US interest rates on the region. We would also prefer to see
higher growth companies list their shares on the local exchanges.
[PHOTO OMITTED]
(PICTURED LEFT TO RIGHT: D. MOTOYOSHI, P. NESTRO, P. GILLESPIE, M. SUMINO,
P. ZHOU)
41
<PAGE>
GE EMERGING MARKETS FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Satyam Computer Services Ltd. 4.42%
--------------------------------------------------------------------------------
Mastek Ltd. 3.15%
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. 3.03%
--------------------------------------------------------------------------------
Datacraft Asia Ltd. 2.51%
--------------------------------------------------------------------------------
Telecomunicacoes Brasileiras S.A. ADR 2.23%
--------------------------------------------------------------------------------
Telefonos de Mexico S.A. ADR 1.61%
--------------------------------------------------------------------------------
Compal Electronics Inc. 1.50%
--------------------------------------------------------------------------------
Grupo Televisa S.A. GDR 1.47%
--------------------------------------------------------------------------------
Far Eastern Textile Ltd. 1.45%
--------------------------------------------------------------------------------
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 MARKET PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six Months One Year
---------- ----------
Number of Funds in peer group: 190 183
Peer group average annual total return: 42.02% 65.41%
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+
[LINE GRAPH OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MSCI EMF
1/29/99 10000.00 9425.00 10000.00
9840.00 9274.20 10097.30
3/99 11180.00 10537.15 11428.02
11980.00 11291.15 12841.90
12080.00 11385.40 12767.16
6/99 13170.00 12412.72 14216.10
12980.00 12233.65 13829.85
13120.00 12365.60 13955.70
9/99 13470.00 12695.57 13483.44
14030.00 13223.37 13770.50
16310.00 15372.29 15005.17
12/99 19732.64 18598.16 16913.53
19721.94 18588.07 17015.01
21990.55 20726.25 17239.77
3/00 21562.51 20322.82 17323.91
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Emerging Markets 60.08% 92.87% 92.62%
GE Emerging Markets
w/load 50.89% 81.81% 83.13%
(maximum load-5.75%)
MSCI EMF 28.48% 51.59% 59.95%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MSCI EMF
1/29/99 10000.00 10000.00 10000.00
9840.00 9840.00 10097.30
3/99 11160.00 11160.00 11428.02
11960.00 11960.00 12841.90
12050.00 12050.00 12767.16
6/99 13140.00 13140.00 14216.10
12930.00 12930.00 13829.85
13060.00 13060.00 13955.70
9/99 13400.00 13400.00 13483.44
13950.00 13950.00 13770.50
16210.00 16210.00 15005.17
12/99 19591.15 19591.15 16913.53
19580.45 19580.45 17015.01
21817.91 21817.91 17239.77
3/00 21378.98 21078.98 17323.91
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Emerging Markets 59.54% 91.57% 91.22%
GE Emerging Markets
w/load 55.54% 87.57% 88.93%
(maximum load) 4.00% 4.00% 3.00%
MSCI EMF 28.48% 51.59% 59.95%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE EMERGING MARKETS GE EMERGING MARKETS W/LOAD MSCI EMF
9/30/99 10000.00 10000.00 10000.00
10/99 10325.93 10325.93 10212.90
11/99 12000.00 12000.00 11128.59
12/99 14511.97 14511.97 12543.92
1/00 14496.11 14496.11 12619.19
2/00 16153.48 16153.48 12785.89
3/00 15828.35 15728.35 12848.28
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
----------
GE Emerging Markets 58.28%
GE Emerging Markets
w/load 57.28%
(maximum load) 1.00%
MSCI EMF 28.48%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE EMERGING MARKETS MSCI EMF
1/29/99 10000.00 10000.00
9850.00 10097.30
3/99 11180.00 11428.02
11990.00 12841.90
12090.00 12767.16
6/99 13190.00 14216.10
12990.00 13829.85
13140.00 13955.70
9/99 13490.00 13483.44
14050.00 13770.50
16340.00 15005.17
12/99 19772.11 16913.53
19772.11 17015.01
22051.04 17239.77
3/00 21623.08 17323.91
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Emerging Markets 60.29% 93.41% 93.08%
MSCI EMF 28.48% 51.59% 59.95%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
42
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE EMERGING MARKETS FUND
[PIE CHART OMITTED]
PACIFIC RIM 42.3%
OTHER REGIONS 41.0%
EUROPE 16.1%
CASH & OTHER 0.3%
UNITED STATES 0.3%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCK -- 92.2%
--------------------------------------------------------------------------------
ARGENTINA -- 0.7%
El Sitio Inc. ....................... 3,700 $ 79,319(a)
Impsat Fiber Networks Inc. .......... 2,304 64,512(a)
Telecom Argentina S.A. ADR .......... 2,091 72,662
216,493
BRAZIL -- 2.1%
Aracruz Celulose S.A. ADR ........... 6,959 147,444
Companhia Cervejaria
Brahma ADR ....................... 8,882 144,332
Companhia de Saneamento
Basico de Estado de Sao Paulo ..1,110,790 112,578
Petroleo Brasiliero S.A. ADR ....... 585 15,576
Ultrapar Participacoes S.A. ADR .... 4,998 54,978(a)
Uniao de Bancos Brasilieros
S.A. GDR ........................ 6,590 209,232
684,140
CANADA -- 1.0%
Global Light
Telecommunications Inc. ......... 15,022 307,951(a)
CHILE -- 0.3%
Companhia de Telecomunicaciones
de Chile S.A. ADR ............... 1,831 41,655
Enersis S.A. ADR ................... 1,960 39,813
81,468
CHINA -- 1.3%
Brilliance China Automotive
Holdings Ltd. ................... 21,312 57,276
China Telecom (Hong Kong)
Ltd. ADR ........................ 1,233 218,549(a)
Guangdong Kelon Electrical
Holdings Co. Ltd. ............... 1,000 539
Huaneng Power International
Inc. ADR ........................ 9,400 75,200
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Huaneng Power International
Inc. (Class H) .................. 362,000 $ 69,736
421,300
CROATIA -- 1.2%
Pliva D D GDR (Regd.) .............. 13,045 198,936
Zagrebacka Banka GDR ............... 9,850 169,913(b)
368,849
CZECH REPUBLIC -- 0.4%
Ceske Radiokomunikace GDR .......... 2,351 119,901(a,b)
DOMINICAN REPUBLIC -- 0.6%
TRICOM S.A. ADR .................... 8,090 194,160(a)
EGYPT -- 1.9%
Al-Ahram Beverage Co.
S.A.E. GDR ...................... 7,058 126,339(a)
EFG-Hermes Holding
S.A.E. GDR ...................... 10,180 39,193(b)
Egyptian Company for
Mobile Services ................. 8,610 416,542(a)
Olympic Group Financial
Investment Co. .................. 16,611 28,272
610,346
ESTONIA -- 0.8%
AS Eesti Telekom GDR ............... 9,433 257,049
GHANA -- 0.0%
Home Finance Co. ................... 30,523 5,739
GREECE -- 4.6%
A.G. Petzetakis S.A. ............... 13,139 116,500(a)
Alfa Beta Vassilopoulos
S.A. (Regd.) .................... 8,080 188,353
Alpha Credit Bank (Regd.) .......... 2,144 144,111
Attica Enterprises S.A. ............ 3,476 44,193
Delta Informatics S.A. (Regd.) ..... 14,040 310,420
Hellenic Telecommunication
Organization S.A. ADR ........... 6,790 98,455
Intrasoft S.A. ..................... 3,792 103,580
Spyrou Agricultural Products ....... 15,340 155,761(a)
STET Hellas Telecommunications
S.A. ADR ........................ 10,596 304,635(a)
1,466,008
HONG KONG -- 0.4%
Founder Holdings Ltd. .............. 4,000 3,956(a)
TCL International Holdings Ltd. .... 164,865 123,862(a)
127,818
HUNGARY -- 1.0%
BorsodChem RT ...................... 1,881 73,149
Magyar Tavkozlesi RT ADR ........... 2,430 108,439
------------------------
See Notes to Schedules of Investments and Financial Statements.
43
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
OTP Bank RT ........................ 1,407 $ 75,946
Synergon Information
Systems GDR ..................... 5,852 68,761(a,b)
326,295
INDIA -- 17.4%
Aptech Ltd. ........................ 10,054 428,448
Aptech Ltd. ........................ 54 2,301(a)
Bharat Heavy Electricals Ltd. ...... 1,300 3,727(a)
BSES Ltd. GDR ...................... 343 6,140(a)
Cipla Ltd. ......................... 1,500 38,565(a)
Cipla Ltd. ......................... 2,000 51,419
Dr. Reddy's Laboratories Ltd. ...... 2,571 95,033
Global Tele-Systems Ltd. ADR ....... 3,004 152,443
HDFC Bank Ltd. ..................... 2,000 17,495
Himachal Futuristic
Communications Ltd. ............. 4,286 166,412(a)
Leading Edge Systems Ltd. .......... 800 36,628
Mastek Ltd. ........................ 6,100 596,373
Mastek Ltd. ........................ 4,200 410,617(a)
NIIT Ltd. .......................... 7,936 373,320(o)
Pentamedia Graphics Ltd. ........... 2,200 58,338
Pentamedia Graphics Ltd. GDR ....... 6,977 254,661(a)
Pentamedia Graphics Ltd. GDR ....... 6,066 221,409(a)
Pentamedia Graphics Ltd. ........... 1,000 26,517
Satyam Computer Services Ltd. ...... 7,572 769,131(a)
Satyam Computer Services Ltd. ...... 6,335 643,482
Sriven Multi-Tech Ltd. ............. 18,200 128,423(a)
Sun Pharmaceutical Industries Ltd. . 4,244 62,297
Sun Pharmaceutical Industries Ltd. . 8,488 124,595(a)
Wipro Ltd. ......................... 3,671 462,508
Zee Telefilms Ltd. ................. 17,998 421,880(a)
5,552,162
INDONESIA -- 0.4%
PT Astra International Inc. ........ 78,000 37,351(a)
PT Gudang Garam .................... 6,500 12,408
PT Hanjaya Mandala Sampoerna ....... 26,500 44,108(a)
PT International Nickel ............ 29,000 27,774(a)
121,641
ISRAEL -- 10.3%
Advanced Vision Technology Ltd. .... 1,511 29,950(a)
AudioCodes Ltd. .................... 1,306 131,090(a)
BreezeCom Ltd. ..................... 500 18,687(a)
Comverse Technology Inc. ........... 2,323 439,047(a)
DSP Group Inc. ..................... 2,758 182,028(a)
e-SIM Ltd. ......................... 4,800 108,000(a)
ECI Telecommunications Ltd. ........ 6,515 204,408
Elbit Ltd. ......................... 9,381 121,953(a)
Fundtech Ltd. ...................... 13,847 360,022(a)
Galileo Technology Ltd. ............ 8,391 153,136(a)
Magic Software Enterprises Ltd. .... 7,466 141,854(a)
NICE Systems Ltd. ADR .............. 1,216 86,640(a)
Orbotech Ltd. ...................... 4,424 376,040(a)
Orckit Communications Ltd. ......... 3,101 207,767(a)
Partner Communications
Co. Ltd. ADR .................... 5,396 89,708(a)
RT-SET Real Time Synthesized
Entertainment Technology Ltd. ... 2,941 82,232(a)
Sapiens International Corp. N.V. ... 26,634 326,266(a)
Teva Pharmaceutical
Industries Ltd. ADR ............. 3,845 143,467
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TTI Team Telecom
International Ltd. .............. 3,112 $ 102,696(a)
3,304,991
KAZAKHSTAN -- 0.5%
Efes Sinai Yatirim Holding A.S. ...7,930,711 114,465(a)
Kazkommertsbank GDR ................ 5,411 56,967(a)
171,432
MEXICO -- 11.4%
Alfa S.A. (Series A) ............... 22,223 84,962
Cemex S.A. de C.V. ADR ............. 4,097 92,695(a)
Cemex S.A. de C.V. ................. 3 13
Coca-Cola Femsa S.A.
de C.V. ADR ..................... 4,910 91,142
Consorcio Ara S.A. de C.V. ......... 31,615 46,305(a)
Controladora Comercial
Mexicana S.A. de C.V. ........... 80,307 109,146
Desc S.A. de C.V. (Series B) ....... 78,111 57,034
Desc S.A. de C.V. ADR .............. 3,061 45,915
Fomento Economico Mexicano
S.A. de C.V. ADR ................ 2,542 114,390
Geo S.A. De C.V. ................... 82,803 216,694(a)
Grupo Carso S.A. de C.V. ADR ....... 7,394 56,860(a)
Grupo Continental S.A. ............. 103,146 127,745
Grupo Elektra S.A. de C.V. GDR ..... 9,127 116,369
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) .. 64,694 296,106(a)
Grupo Financiero Bancomer
S.A. ADR (Series C) ............. 28,961 328,128(b)
Grupo Financiero Banorte
S.A. de C.V. .................... 141,712 214,579(a)
Grupo Industrial Bimbo
S.A. de C.V. .................... 23,858 39,826
Grupo Iusacell S.A. ADR ............ 6,307 127,717(a)
Grupo Televisa S.A. GDR ............ 6,898 469,064(a)
Industrias Penoles S.A. ............ 10,961 26,501
Pepsi-Gemex S.A. GDR ............... 6,201 33,718(a)
Telefonos de Mexico S.A. ADR ....... 7,664 513,488
Tubos de Acero de Mexico
S.A. ADR ........................ 6,170 101,034
TV Azteca S.A. de C.V. ADR ......... 10,814 159,507
Wal-Mart de Mexico S.A. de C.V. .... 78,425 185,811(a)
3,654,749
NETHERLANDS -- 0.6%
Indigo N.V. ........................ 28,105 189,709(a)
PANAMA -- 0.2%
Banco Latinoamericano de
Exportaciones, S.A. (Class E) ... 1,529 40,518
Panamerican Beverages Inc.
(Class A) ....................... 1,667 29,381
69,899
PHILIPPINES -- 1.0%
Benpres Holdings Corp. ............. 263,200 44,133(a)
Metropolitan Bank & Trust Co. ...... 17,420 93,979
Philippine Long Distance
Telephone Co. ................... 4,524 98,945
------------------------
See Notes to Schedules of Investments and Financial Statements.
44
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
San Miguel Corp. S.A. .............. 37,800 $ 44,552
Solid Group Inc. ................... 216,000 11,968(a)
SPI Technologies Inc. .............. 50,760 14,494
308,071
POLAND -- 2.6%
Bank Slaski S.A. ................... 618 41,005
BRE Bank S.A. ...................... 1,135 40,953
Elektrim Spolka Akcyjna S.A. ....... 13,196 191,733(a)
Europejki Fundusz
Leasingowy GDR .................. 2,312 42,194(a,b)
Netia Holdings S.A. ADR ............ 1,580 55,300(a)
Powszechny Bank Kredytowy S.A. ..... 2,040 49,401
Prokom Software S.A. GDR ........... 7,552 213,344(b)
Telekomunikacja Polska
S.A. GDR (Series A) ............. 20,708 193,620(a,b)
827,550
RUSSIA -- 0.6%
LUKoil Holding ADR ................. 2,148 126,732
Sun Interbrew Ltd. GDR (Class B) ... 8,685 59,046(a)
Sun Interbrew Ltd. GDR (Class A) ... 6,547 19,641(a)
205,419
SINGAPORE -- 2.5%
Datacraft Asia Ltd. ................ 85,769 801,940
SOUTH AFRICA -- 4.9%
Dimension Data Holdings Ltd. ....... 31,812 283,779(a)
Johnnies Industrial Corp. Ltd. ..... 23,851 364,945
M-Cell Ltd. ........................ 32,964 181,578
Nedcor Investment Bank Holdings .... 4,385 2,181(a)
Nedcor Ltd. ........................ 9,874 201,242
Network Healthcare
Holdings Ltd. ................... 515,040 81,959
Sappi Ltd. ......................... 28,142 217,885
Softline Ltd. ...................... 132,767 170,644(a)
The Education Investment
Corp. Ltd. ...................... 115,367 67,079
1,571,292
SOUTH KOREA -- 5.8%
Dae Duck Electronics Co. ........... 21,283 240,703
Kookmin Bank ....................... 11,893 120,517
Korea Electric Power Corp. ......... 2,630 74,956
Korea Telecom Corp. ADR ............ 1,025 44,844
Korea Telecom Corp. ................ 2,549 226,014
Medison Co. Ltd. ................... 14,850 192,805
Mirae Co. ADR ...................... 2,800 30,319(a)
Mirae Co. .......................... 32,490 182,255
Pohang Iron & Steel Co. Ltd. ....... 2,060 202,468
Pohang Iron & Steel Co. Ltd. ADR ... 2,286 62,865
S1 Corp ............................ 5,960 91,132
Samsung Electronics ................ 1,061 321,588
Sindo Ricoh Co. .................... 857 23,456
Youngone Corp. ..................... 28,970 35,385
1,849,307
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TAIWAN -- 12.7%
Asustek Computer Inc. .............. 16,810 $ 210,470
Chroma Ate Inc. .................... 35,000 128,820(a)
Compal Electronics Inc. ............ 115,586 480,501
Compeq Manufacturing Co. Ltd. ...... 29,500 193,888(a)
D-Link Corp. ....................... 45,200 196,070
Far Eastern Textile Ltd. ........... 224,790 465,389
Hitron Technology Inc. ............. 31,000 284,226(a)
Hon Hai Precision Industry ......... 25,400 294,650(a)
Nien Hsing Textile Corp. Ltd ....... 44,000 102,662
Premier Camera Taiwan Ltd. ......... 8,000 33,125(a)
Procomp Informatics Co. Ltd. ....... 12,000 115,938(a)
Ritek Inc. ......................... 27,013 248,559
Ritek Inc. GDR ..................... 3,854 68,408(a,b)
Synnex Technology
International Corp. GDR ......... 3,085 96,406(b)
Taiwan Semiconductor
Manufacturing Co. ............... 144,100 970,769(a)
Yageo Corp. ........................ 117,060 172,339
4,062,220
THAILAND -- 0.3%
Banpu Public Co. Ltd. (foreign) .... 14,200 9,105
Hana Microelectronics
Public Co. Ltd. (foreign) ....... 5,500 49,154(a)
Siam Cement Public Co.
Ltd. (foreign) .................. 2,200 53,517(a)
111,776
TURKEY -- 4.3%
Aksigorta A.S. ....................5,380,640 109,636
Dogan Yayin Holding ..............15,692,403 379,703(a)
Enka Holding Yatirim A.S. ......... 338,285 84,726
Migros Turk T.A.S. ................ 243,144 134,180
Tansas A.S. .......................1,425,530 308,622
Turk Ekonomi Bankasi A.S GDR ...... 7,334 89,841(a,b)
Turkiye Garanti Bankasi A.S. .....12,438,874 158,410
Yapi ve Kredi Bankasi A.S. ....... 4,264,439 114,047
1,379,165
UNITED STATES -- 0.3%
Prodigy Communications Corp. ..... 5,160 77,722(a)
StarMedia Network Inc. ........... 430 12,927(a)
90,649
VENEZUELA -- 0.1%
Compania Anonima Nacional
Telefonos de Venezuela ADR .... 1,401 40,629
TOTAL COMMON STOCK
(COST $20,341,991) ............. 29,500,118
--------------------------------------------------------------------------------
PREFERRED STOCK -- 7.5%
--------------------------------------------------------------------------------
Celular CRT Participaceos S.A. ... 285,500 131,150(a)
Companhia Brasileira de
Distribuicao Grupo Pao
de Acucar GDR ................. 1,136,541 40,462
-------------------
See Notes to Schedules of Investments and Financial Statements.
45
<PAGE>
GE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Companhia Paranaense de
Energia-Copel ADR ............ 2,599 $ 22,091
Companhia Paranaense de
Energia-Copel ADR ............ 17,564,584 148,767(a)
Companhia Riograndense
de Telecomunicacoes .......... 196 89
Companhia Siderurgica
de Tubarao ................... 7,600,000 119,139(a)
Companhia Vale Do Rio Doce ...... 3,640 99,282(a)
Eletropaulo Metropolitana ....... 600,000 44,996
Embraer - Empresa Brasileira
de Aeronautica S.A. .......... 17,994 83,176
Embratel Participacoes S.A. ADR . 3,283 84,127
Globo Cabo S.A. ADR ............. 1,569 29,419(a)
Petroleo Brasiliero S.A. ........ 1,070,000 290,003
Tele Centro Sul Participacoes
S.A. ADR ..................... 1,653 133,893
Tele Norte Leste Participacoes
S.A. ADR ..................... 6,084 161,986
Telecomunicacoes Brasileiras
S.A. ADR ..................... 4,761 712,662(a)
Telecomunicacoes do
Parana S.A. .................. 89,917 38,724
Telecomunicacoes do Rio
de Janeiro S.A. .............. 1,190,961 37,100(a)
Telesp - Telecomunicacoes
de Sao Paulo S.A. ............ 2,600,000 76,440
Telesp Celular Participacoes S.A. 5,647,657 128,098
Telesp Celular Participacoes
S.A. ADR ..................... 295 16,723
TOTAL PREFERRED STOCK
(COST $1,614,732) ............. 2,398,327
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Banpu Public Co. Ltd.
(foreign) (Regd.),
01/14/2003 .................... 7,100 1,089(a)
Cemex S.A. de C.V. ADR,
12/13/2002 .................... 181 633(a)
TOTAL WARRANTS
(COST $317) ................... 1,722
TOTAL INVESTMENTS IN SECURITIES
(COST $21,957,040) ............ 31,900,167
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.5%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $486,951) ................. 486,951 486,951
OTHER ASSETS AND LIABILITIES,
NET (1.2)% ...................... (395,026)
-----------
NET ASSETS-- 100% .................. $31,992,092
===========
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
The GE Emerging Markets Fund invested in the following
sectors at March 31, 2000:
PERCENTAGE (BASED
SECTOR ON TOTAL NET ASSETS)
--------------------------------------------------------------------------------
Information Technology 44.62%
Telecommunication Services 16.18%
Consumer Goods 14.70%
Finance 10.37%
Materials 4.22%
Industrials 3.15%
Health Care 3.09%
Utilities 2.03%
Energy 1.35%
Cash and Other 0.29%
-------
100.00%
=======
--------------
See Notes to Schedules of Investments and Financial Statements.
46
<PAGE>
GE STRATEGIC INVESTMENT FUND
Q&A
THE GE STRATEGIC INVESTMENT FUND IS MANAGED JOINTLY BY DAVID CARLSON, RALPH
LAYMAN AND BOB MACDOUGALL. THE FUND FOLLOWS AN ASSET ALLOCATION STRATEGY AND
EACH PORTFOLIO MANAGER IS RESPONSIBLE FOR INVESTMENTS WITHIN HIS AREA OF
EXPERTISE: DAVE MANAGES THE DOMESTIC EQUITY INVESTMENTS IN THE PORTFOLIO (PLEASE
REFER TO PAGE 8 FOR DAVE'S BIOGRAPHICAL DETAILS), RALPH MANAGES THE
INTERNATIONAL EQUITY HOLDINGS WITHIN THE PORTFOLIO (PLEASE REFER TO PAGE 27 FOR
RALPH'S BIOGRAPHICAL DETAILS) AND BOB MANAGES THE FIXED INCOME RELATED
INVESTMENTS IN THE PORTFOLIO (PLEASE REFER TO PAGE 57 FOR BOB'S BIOGRAPHICAL
DETAILS).
Q. HOW DID THE GE STRATEGIC INVESTMENT FUND PERFORM COMPARED TO ITS BENCHMARK
FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The Fund posted a return of 13.06% (Class A) for the six-month period ended
March 31, 2000. The Fund allocates investments among several asset classes
and therefore the results of the Fund need to be compared to multiple
benchmarks: the S&P 500 Index which returned 17.78% and the Lehman Brothers
Aggregate Bond Index which returned 2.08%. For the same period, our Lipper
peer group of 473 Balanced funds had an average return of 10.51%. 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 SIX MONTHS ENDED MARCH 31,
2000?
A. The Fund's outperformance was driven by asset allocation and strong
performance within each of the asset classes. The international equity
markets were strong during this period and the fund's performance in this
asset class was very good. This portion had a return in excess of 25%,
exceeding the MSCI EAFE Index by 9%. Similarly, the U.S. equity portion of
the fund returned in excess of 19%, exceeding the S&P 500 Index. The fixed
income markets were challenging during this time period due to interest rate
increases however bonds managed to return a positive 1.86%. 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. HOW HAS THE VOLATILITY IN THE U.S. EQUITY MARKETS IMPACTED THE FUND?
A. Over the past six months the U.S. equity markets have been particularly
volatile and narrowly focused on technology. The S&P 500 had gains of 15%
for the quarter ended December 31, 1999 following a decline of 6.2% in the
quarter ended September 30, 1999. For the quarter ended March 31, 2000, the
S&P 500 gained 2.5%. Despite an environment in the U.S. of robust economic
growth, low inflation, solid corporate earnings, modestly higher interest
rates, and declining oil prices, the markets behaved much like a roller
coaster. This is evident in the disparate returns of the major averages for
the quarter as the Dow Jones Industrial Average was down 4.8%, the S&P 500
up 2.5%, and the NASDAQ up 12.4%. The international markets have behaved
much the same way with areas like technology, telecom, and media garnering
investor's attention.
In terms of the Fund, we continue to own those companies that have solid
earnings growth. We look at the swings in the market as opportunities to
scale buy or sell those stocks that become respectively undervalued or
overvalued relative to the market and to their peers. Our focus on security
selection across asset classes will continue to provide the Fund with
high-quality companies that are reasonably valued. With the Fund broadly
diversified, we believe it is well positioned for the volatility we expect.
Q. WHAT ARE THE CURRENT WEIGHTINGS OF THE VARIOUS ASSET CLASSES AND HOW HAVE
THEY CHANGED OVER THE PAST SIX MONTHS?
A. Currently, the Fund's asset allocation mix reflects 44% of the assets in
U.S. equities, 16% in international equities, 34% in fixed income, and 6% in
cash. 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 34%, 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 the strong demand for
equities in both U.S. and international issues. The U.S. economy's strong
underpinnings are encouraging for the long term. 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 healthy earnings over the next few quarters. The U.S. market
and consequently the international markets will continue to be volatile
although this should be beneficial as the speculative excesses are
eliminated from the system. The fixed income market may experience some
relief as the market anticipates only two more rate increases over the next
quarter ending June 30, 2000. In total, the Federal Reserve has increased
rates five times since June 1999. If the Fed accomplishes its goal of a
"gradual adjustment to a more balanced non-inflationary growth" scenario
over the near term then the fixed income markets may benefit as worries over
rate increases subside.
47
<PAGE>
GE STRATEGIC INVESTMENT FUND
--------------------------------------------------------------------------------
TOP TEN LARGEST HOLDINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Citigroup Inc. 2.55%
--------------------------------------------------------------------------------
AT&T Corp. - Liberty Media Group (Class A) 2.01%
--------------------------------------------------------------------------------
U.S. Treasury Bonds 8.125%, 08/15/19 2.01%
--------------------------------------------------------------------------------
NTL Inc. 1.76%
--------------------------------------------------------------------------------
Intel Corp. 1.72%
--------------------------------------------------------------------------------
First Data Corp. 1.71%
--------------------------------------------------------------------------------
U.S. Treasury Notes 5.875%, 11/30/01 1.61%
--------------------------------------------------------------------------------
Dover Corp. 1.48%
--------------------------------------------------------------------------------
Federal National Mortgage Assoc.
8.00%, TBA 1.45%
--------------------------------------------------------------------------------
Cisco Systems Inc. 1.45%
--------------------------------------------------------------------------------
INVESTMENT PROFILE
A mutual fund designed for investors who seek to maximize total return
through asset allocation designed to achieve capital appreciation primarily
from common stocks and other equity securities and current income from bonds
and other fixed income securities.
* LIPPER PERFORMANCE COMPARISON
BALANCED PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six One Five
Months Year Year
-------- ------- ---------
Number of
Funds in peer group: 473 458 237
Peer group average annual total return: 10.51% 10.50% 15.34%
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+
[LINE GRAPH OMITTED]
GE STRATEGIC GE STRATEGIC COMPOSITE
INVESTMENT INVESTMENT W/LOAD S&P 500 LB AGGREGATE INDEX**
2/22/93 10000.00 9425.00 10000.00 10000.00 10000.00
10309.14 9715.01 10216.10 10041.80 10146.38
9/93 10806.46 10183.66 10530.86 10576.96 10552.78
10482.79 9878.65 10364.46 10279.87 10335.45
9/94 10777.59 10156.46 10919.15 10235.87 10649.38
11488.09 10826.02 11978.67 10792.61 11502.55
9/95 12970.65 12223.14 14165.55 11675.08 13130.68
14023.21 13215.03 15824.63 11955.18 14171.42
9/96 14731.61 13882.59 17045.81 12244.82 14970.25
15562.97 14666.04 18959.35 12542.24 16125.56
9/97 18039.57 16999.92 23947.44 13437.82 19097.01
19811.42 18669.65 28068.12 14047.16 21410.01
9/98 19100.00 17998.89 26129.74 14983.10 21130.68
22062.24 20790.76 33270.71 14957.20 24454.06
9/99 22018.27 20749.32 33395.81 14926.95 24509.51
03/00 24893.54 23458.89 39332.75 15237.89 26515.12
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ----- ----------
GE Strategic Investment 13.06% 12.83% 16.73% 13.69%
GE Strategic Investment
w/load 6.55% 6.35% 15.35% 12.75%
(maximum load-5.75%)
S&P 500 17.78% 18.17% 26.83% 21.25%
LB Aggregate 2.08% 1.88% 7.14% 6.11%
Composite Index** 11.46% 11.68% 18.86% 15.19%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC GE STRATEGIC COMPOSITE
INVESTMENT INVESTMENT W/LOAD S&P 500 LB AGGREGATE INDEX**
12/22/93 10000.00 10000.00 10000.00 10000.00 10000.00
9640.98 9640.98 9618.15 9713.37 9657.13
9/94 9874.90 9874.90 10132.90 9671.79 9950.46
10491.68 10491.68 11116.13 10197.82 10747.64
9/95 11803.95 11803.95 13145.54 11031.69 12268.91
12715.28 12715.28 14685.15 11296.35 13241.35
9/96 13306.23 13306.23 15818.40 11570.04 13987.75
14012.40 14012.40 17594.16 11851.06 15067.24
9/97 16176.03 16176.03 22223.07 12697.29 17843.67
17672.96 17672.96 26047.04 13273.05 20004.87
9/98 16970.00 16970.00 24248.26 14157.41 19743.87
19531.49 19531.49 30875.01 14132.94 22849.14
9/99 19420.29 19420.29 30991.10 14104.35 22900.95
03/00 22403.56 22403.56 36500.54 14398.16 24774.93
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------- ------- ---------
GE Strategic Investment 12.64% 12.00% 15.83% 13.72%
GE Strategic Investment
w/load 8.64% 8.00% 15.83% 13.72%
(maximum load) 4.00% 4.00% 0.00% 0.00%
S&P 500 17.78% 18.17% 26.83% 22.91%
LB Aggregate 2.08% 1.88% 7.14% 5.98%
Composite Index** 11.46% 11.68% 18.86% 16.10%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC GE STRATEGIC COMPOSITE
INVESTMENT INVESTMENT W/LOAD S&P 500 LB AGGREGATE INDEX**
9/30/99 10000.00 10000.00 10000.00 10000.00 10000.00
10/99 10294.48 10294.48 10636.00 10037.00 10396.40
11/99 10462.17 10462.17 10851.91 10036.00 10522.61
12/99 10945.52 10945.52 11491.09 9987.82 10874.28
1/00 10697.45 10697.45 10912.05 9954.86 10531.15
2/00 10627.82 10627.82 10714.54 10075.32 10467.75
3/00 11245.81 11145.81 11777.75 10208.31 10818.30
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Strategic Investment 12.46%
GE Strategic Investment w/load 11.46%
(maximum load) 1.00%
S&P 500 17.78%
LB Aggregate 2.08%
Composite Index ** 11.46%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE STRATEGIC COMPOSITE
INVESTMENT S&P 500 LB AGGREGATE INDEX**
11/29/93 10000.00 10000.00 10000.00 10000.00
9745.04 9736.84 9766.01 9749.21
9/94 10025.30 10257.94 9724.21 10045.71
10700.41 11253.31 10253.12 10850.42
9/95 12100.96 13307.76 11091.48 12386.39
13101.36 14866.37 11357.58 13368.09
9/96 13789.47 16013.60 11632.74 14121.64
14588.35 17811.27 11915.30 15211.46
9/97 16928.65 22497.30 12766.11 18014.47
18607.41 26368.46 13344.99 20196.36
9/98 17962.00 24547.46 14234.14 19932.86
20773.06 31256.00 14209.54 23067.85
9/99 20756.52 31373.53 14180.80 23120.16
03/00 23499.60 36950.96 14476.20 25012.08
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------- ------ --------
GE Strategic Investment 13.22% 13.13% 17.04% 14.43%
S&P 500 17.78% 18.17% 26.83% 22.90%
LB Aggregate 2.08% 1.88% 7.14% 6.01%
Composite Index** 11.46% 11.68% 18.86% 16.10%
**THE COMPOSITE INDEX RETURN IS A BLENDED RETURN COMPOSED OF 60% S&P 500 INDEX
AND 40% LB AGGREGATE BOND INDEX.
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
48
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE STRATEGIC INVESTMENT FUND
[PIE CHART OMITTED]
DOMESTIC EQUITY 44.1%
BONDS AND NOTES 34.3%
FOREIGN EQUITY 15.4%
CASH & OTHER 6.2%
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
DOMESTIC EQUITY -- 44.1%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 0.1%
Airgas Inc. ........................ 15,100 $ 125,519(a)
CAPITAL GOODS -- 4.5%
Alleghany Corp. .................... 1,081 203,266
Dover Corp. ........................ 64,870 3,105,651
Emerson Electric Co. ............... 5,710 301,916
Honeywell International Inc. ....... 25,922 1,365,765
Hubbell Inc. (Class B) ............. 19,768 541,149
Molex Inc. (Class A) ............... 59,577 2,643,729
Textron Inc. ....................... 4,712 286,843
United Technologies Corp. .......... 5,821 367,815
Waste Management Inc. .............. 54,910 751,581
9,567,715
CONSUMER - CYCLICAL -- 7.7%
AT&T Corp. - Liberty Media
Group (Class A) ................. 71,383 4,229,443(a)
Carnival Corp. (Class A) ........... 22,788 565,427
Catalina Marketing Corp. ........... 20,042 2,029,253(a)
Comcast Corp. (Class A) ............ 50,833 2,204,881
Gannett Co. Inc. ................... 6,864 483,054
Harman International
Industries Inc. ................. 3,020 181,200
Interpublic Group Cos. Inc. ........ 28,553 1,349,129
NTL Inc. ........................... 39,810 3,694,866(a)
The Walt Disney Co. ................ 26,504 1,096,603
Time Warner Inc. ................... 2,730 273,000
16,106,856
CONSUMER - STABLE -- 1.4%
Anheuser Busch Cos. Inc. ........... 2,196 136,701
Avon Products Inc. ................. 13,453 390,978
Colgate-Palmolive Co. .............. 7,028 396,204
Energizer Holdings Inc. ............ 3,020 70,026(a)
Gillette Co. ....................... 14,002 527,700
Pepsico Inc. ....................... 29,651 1,024,813
Philip Morris Cos. Inc. ............ 22,074 466,313
3,012,735
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
ENERGY -- 3.1%
Anadarko Petroleum Corp. ........... 16,198 $ 626,660
Baker Hughes Inc. .................. 28,004 847,121
Exxon Mobil Corp. .................. 9,170 713,541
Nabors Industries Inc. ............. 13,728 532,818(a)
Royal Dutch Petroleum Co. ADR ...... 21,964 1,264,303
Schlumberger Ltd. .................. 26,027 1,991,065
Transocean Sedco Forex Inc. ........ 4,667 239,475
Unocal Corp. ....................... 9,609 285,868
6,500,851
FINANCIAL -- 5.2%
American Express Co. ............... 4,941 735,900
Bank One Corp. ..................... 2,471 84,941
Citigroup Inc. ..................... 90,327 5,357,520
Countrywide Credit
Industries Inc. ................. 9,609 261,845
Federal National Mortgage Assoc. ... 35,801 2,020,519
Fidelity National Financial Inc. ... 18,323 253,082
State Street Corp. ................. 15,221 1,474,534(e)
Wells Fargo & Co. .................. 17,572 719,354
10,907,695
HEALTHCARE -- 7.4%
Abbott Laboratories ................ 45,301 1,594,029
American Home Products Corp. ....... 16,748 898,111
Bristol-Myers Squibb Co. ........... 28,004 1,617,231
Cardinal Health Inc. ............... 59,028 2,707,909
Dentsply International Inc. ........ 15,375 436,266
Henry Schein Inc. .................. 26,357 426,654(a)
Johnson & Johnson .................. 22,568 1,581,170
Lincare Holdings Inc. .............. 33,495 950,421(a)
Merck & Co. Inc. ................... 30,750 1,910,344
Omnicare Inc. ...................... 9,856 118,888
Pfizer Inc. ........................ 33,221 1,214,643
Pharmacia & Upjohn Inc. ............ 969 57,413
Sybron International Corp. ......... 44,477 1,289,833(a)
Watson Pharmaceuticals Inc. ........ 18,944 751,840(a)
15,554,752
INSURANCE -- 2.3%
AFLAC Inc. ......................... 4,942 225,170
American International Group Inc. .. 16,367 1,792,186
Berkshire Hathaway
Inc. (Class B) .................. 432 786,240(a)
Loews Corp. ........................ 8,511 425,550
Marsh & McLennan Cos. Inc. ......... 14,716 1,623,359
4,852,505
MISCELLANEOUS -- 0.6%
SPDR Trust ......................... 7,820 1,177,399
RETAIL TRADE -- 1.1%
CVS Corp. .......................... 12,629 474,377
Home Depot Inc. .................... 28,828 1,859,406
2,333,783
--------------
See Notes to Schedules of Investments and Financial Statements.
49
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 4.6%
Analog Devices Inc. ................. 4,393 $ 353,911(a)
Applied Materials Inc. .............. 18,669 1,759,553(a)
Cisco Systems Inc. .................. 39,535 3,056,550(a)
Dell Computer Corp. ................. 8,511 459,062(a)
Intel Corp. ......................... 27,455 3,622,344
Pitney Bowes Inc. ................... 8,511 380,335
9,631,755
TECHNOLOGY - SOFTWARE & SERVICES -- 5.1%
Automatic Data Processing Inc. ...... 37,998 1,833,404
EMC Corp. ........................... 11,531 1,441,375(a)
Equifax Inc. ........................ 77,698 1,961,874
First Data Corp. .................... 81,267 3,596,065
Microsoft Corp. ..................... 18,149 1,928,331(a)
10,761,049
UTILITIES -- 1.0%
MCI WorldCom Inc. ................... 25,259 1,144,548(a)
SBC Communications Inc. ............. 11,861 498,162
Sprint Corp. ........................ 6,589 415,107
2,057,817
TOTAL DOMESTIC EQUITY
(COST $59,508,478) ............... 92,590,431
--------------------------------------------------------------------------------
FOREIGN EQUITY -- 15.4%
--------------------------------------------------------------------------------
BASIC MATERIALS -- 0.9%
Bayer AG ........................... 3,375 151,180
Corus Group PLC .................... 193,989 311,167
Ispat International N.V. (Regd.)
(Class A) ....................... 8,153 121,276
Jefferson Smurfit Group PLC ........ 55,723 129,526
Metallgesellschaft AG .............. 20,431 376,601
Pohang Iron & Steel Co. Ltd. ....... 2,024 198,930
Pohang Iron & Steel Co. Ltd. ADR ... 2,085 57,337
Shin-Etsu Chemical Co. ............. 8,000 485,463
Stora Enso Oyj ..................... 10,194 109,326
1,940,806
CAPITAL GOODS -- 1.9%
ABB Ltd. ........................... 2,352 270,239
Aerospatiale Matra (Regd.) ......... 10,154 194,265(a)
Alstom ............................. 15,162 421,033
Asahi Chemical Industry Co. Ltd. ... 3,000 19,140
ATI Technologies Inc. .............. 6,517 115,494(a)
BAE Systems PLC .................... 116,946 651,664
Celestica Inc. ..................... 5,336 283,141(a)
CRH PLC ............................ 14,840 269,991
Desc S.A. de C.V. (Series B) ....... 50,815 37,104
Desc S.A. de C.V. ADR .............. 6,571 98,565
Grupo Carso S.A. de C.V. ADR ....... 9,611 73,909(a)
Invensys PLC ....................... 85,590 381,209
Lyonnaise Des Eaux S.A. ............ 1,218 209,467
Minebea Co. Ltd. ................... 25,000 332,392
Preussag AG ........................ 8,070 370,839
Rhodia S.A. ........................ 9,430 168,855
3,897,307
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
CONSUMER - CYCLICAL -- 2.2%
Autoliv Inc. SDR ................... 8,463 $ 234,429
Bayerische Motoren Werke
(BMW) AG ........................ 7,300 231,722
Canon Inc. ......................... 17,000 736,863
DaimlerChrysler AG ................. 2,470 160,877
Granada Group PLC .................. 51,404 550,786
Grupo Televisa S.A. GDR ............ 2,774 188,632(a)
ITOCHU Corp. ....................... 30,166 160,725(a)
Johnson Electric Holdings Ltd. ..... 46,100 315,265
Kinnevik AB (Series B) ............. 1,406 53,776
Mazda Motor Corp. .................. 61,000 207,958
Michelin CGDE (Regd.)
(Class B) ....................... 6,709 215,468
NAMCO Ltd. ......................... 1,700 69,712
Philips Electronics N.V. ........... 3,957 665,353
Reed International PLC ............. 23,578 171,927
Saatchi & Saatchi PLC .............. 9,979 58,466
Sony Corp. ......................... 2,000 284,420(a)
Sony Corp. ......................... 2,000 282,472
4,588,851
CONSUMER - STABLE -- 0.2%
Kao Corp. .......................... 10,643 325,515
Panamerican Beverages Inc.
(Class A) ....................... 1,877 33,082
358,597
DIVERSIFIED -- 0.3%
Hutchison Whampoa Ltd. ............. 3,000 54,132
Lagardere S.C.A. ................... 7,897 641,616
695,748
ENERGY -- 0.8%
Coflexip S.A. ADR .................. 3,846 210,568
Repsol S.A. ........................ 6,051 132,744
Saipem ............................. 41,916 204,697
Total S.A. (Class B) ............... 4,081 611,565
Veba AG ............................ 5,233 266,828
Vivendi ............................ 2,790 321,923
1,748,325
FINANCIAL -- 1.5%
Asahi Bank Ltd. .................... 12,512 70,076
Banca Intesa S.p.A. ................ 38,935 134,589
Banco Comercial Portugues
(Regd.) ......................... 13,726 73,997
Bank of Ireland .................... 39,954 286,935
Bank of Scotland ................... 10,546 120,806
Banque Nationale de Paris .......... 3,280 259,113
Credit Suisse AG ................... 1,082 215,443
Deutsche Bank AG ................... 3,629 240,466
Grupo Financiero Banamex
Accival S.A. de C.V. (Class B) .. 62,918 287,978(a)
HypoVereinsbank AG ................. 2,560 158,724
ING Groep N.V. ..................... 10,325 559,587
Investor AB (Series B) ............. 3,356 52,510
Invik & Co. AB ..................... 723 104,746
Kookmin Bank ....................... 3,951 40,037
------------------
See Notes to Schedules of Investments and Financial Statements.
50
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Nordic Baltic Holding AB FDR ....... 29,849 $ 157,201
The Fuji Bank Ltd. ................. 17,000 159,792
Uniao de Bancos Brasilieros
S.A. GDR ........................ 5,769 183,166
3,105,166
HEALTHCARE -- 0.7%
Aventis S.A. ....................... 5,539 303,381
Fresenius Medical Care AG .......... 3,764 280,768
Novartis AG (Regd.) ................ 70 95,756
Novo-Nordisk AS (Series B) ......... 654 88,289
Nycomed Amersham PLC ............... 35,403 287,462
Shire Pharmaceuticals Group
PLC ADR ......................... 2,471 126,639(a)
Teva Pharmaceutical Industries
Ltd. ADR ........................ 5,103 190,406
1,372,701
INSURANCE -- 1.0%
AXA-UAP ............................ 4,533 642,839
Commercial Union PLC ............... 33,877 469,779
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.) ......... 1,378 428,838
Pohjola Group Insurance Corp.
(Series B) ...................... 1,189 88,236
Royal & Sun Alliance Insurance
Group PLC ....................... 30,741 190,877
Sampo Insurance Co. Ltd.
(Series A) ...................... 6,590 252,410
2,072,979
REAL ESTATE INVESTMENT TRUST -- 0.1%
Cheung Kong (Holdings) Ltd. ........ 15,014 224,635
RETAIL TRADE -- 0.3%
Carrefour S.A. ..................... 1,358 174,117
Giordano International Ltd. ........ 128,000 155,345
Koninklijke Ahold N.V. ............. 6,400 166,629
Mitsukoshi Ltd. .................... 7,746 33,499(a)
Somerfield PLC ..................... 76,884 67,936
Vendex KBB N.V. .................... 5,523 90,963
688,489
TECHNOLOGY - ELECTRONICS & EQUIPMENT -- 2.4%
Brambles Industries Ltd. ........... 17,061 433,596
Cable & Wireless Optus Ltd. ........ 49,716 199,025(a)
Chartered Semiconductor
Manufacturing Ltd. ADR .......... 962 90,669(a)
Comverse Technology Inc. ........... 3 567(a)
ECI Telecommunications Ltd. ........ 12,507 392,407
Ericsson LM Telephone (Series B) ... 6,137 539,868
Fujitsu Ltd. ....................... 17,000 521,599
Getronics N.V. ..................... 3,216 246,051
Infineon Technologies AG ........... 686 37,475(a)
NetCom Systems AB (Series B) ....... 886 76,503
Nortel Networks Corp. .............. 385 48,510
Samsung Electronics ................ 1,320 400,090
Schneider S.A. ..................... 3,741 238,932
STMicroelectronics N.V. ............ 915 168,222
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
Sumitomo Electric Industries ....... 11,000 $ 155,038
Synnex Technology International
Corp. GDR ....................... 2,891 90,344(b)
Taiwan Semiconductor
Manufacturing Co. ............... 125,380 844,657
Toshiba Corp. ...................... 64,000 652,063
5,135,616
TECHNOLOGY - SOFTWARE & SERVICES -- 0.1%
Cap Gemini S.A. .................... 79 21,408
CGI Group Inc. (Class A) ........... 16,783 235,632(a)
Tietoenator Oyj .................... 556 33,381
290,421
TELECOMMUNICATIONS -- 0.7%
Cable & Wireless PLC ............... 29,701 557,514
Koninklijke KPN N.V. ............... 3,658 419,100
Nippon Telegraph and
Telephone Corp. (NTT) ........... 24 381,045
Sonera Oyj ......................... 267 18,229
1,375,888
TRANSPORTATION -- 0.1%
IHC Caland N.V. .................... 4,560 195,179
Railtrack Group PLC ................ 5,747 66,794
261,973
UTILITIES -- 2.2%
Hellenic Telecommunication
Organization S.A. ADR ........... 6,033 87,479
Hellenic Telecommunication
Organization S.A. GDR ........... 5,590 159,008
Korea Electric Power Corp. ......... 2,940 83,791
Korea Telecom Corp. ADR ............ 2,583 113,006
Korea Telecom Corp. ................ 1,486 131,760
Telecom Italia S.p.A ............... 7,733 115,514
Telefonica S.A. .................... 25,863 653,799(a)
Telekomunikacja Polska
S.A. GDR (Series A) ............. 19,058 178,192(a,b)
The Tokyo Electric Power
Co. Inc. ........................ 6,200 135,879
Vodafone AirTouch PLC .............. 142,726 795,318
Vodafone AirTouch PLC ADR .......... 40,359 2,242,447
4,696,193
TOTAL FOREIGN EQUITY
(COST $25,846,488) .............. 32,453,695
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 34.3%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 5.8%
U.S. Treasury Bonds
8.125% 08/15/19 ............ $3,470,000 4,218,757(h)
6.125% 08/15/29 ............ 2,115,000 2,155,650(h)
6.25% 05/15/30 ............ 545,000 576,168(h)
6,950,575
------------------
See Notes to Schedules of Investments and Financial Statements.
51
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
U.S. Treasury Notes
5.875% 11/30/01 ............ $3,427,000 $ 3,392,182(h)
6.50% 02/15/10 ............ 1,790,000 1,852,650
5,244,832
TOTAL U.S. TREASURIES
(COST $12,092,031) ........... 12,195,407
FEDERAL AGENCIES -- 3.1%
Federal Home Loan Bank
5.25% 04/25/02 ............ 2,870,000 2,776,725
Federal Home Loan Mortgage Corp.
6.22% 03/18/08 ............ 445,000 409,471
5.75% 04/15/08 ............ 150,000 136,992
5.125% 10/15/08 ............ 145,000 126,127
672,590
Federal National Mortgage Assoc.
5.75% 04/15/03 ............ 665,000 641,931
5.125% 02/13/04 ............ 465,000 434,701
5.78% 05/05/04 ............ 405,000 384,308
5.64% 12/10/08 ............ 255,000 235,314
6.04% 02/25/09 ............ 930,000 848,337
6.99% 06/01/17 ............ 1,915,000 580,475(d)
3,125,066
TOTAL FEDERAL AGENCIES
(COST $6,776,303) ............ 6,574,381
AGENCY MORTGAGE BACKED -- 13.7%
Federal Home Loan Mortgage Corp.
7.50% 11/01/09 ............ 66,887 67,012
7.50% 06/01/10 ............ 154,913 155,203
9.00% 04/01/16 - 07/01/16 . 58,998 60,453
9.00% 02/01/17 ............ 81,966 83,989
9.00% 06/01/21 ............ 31,344 32,342(h)
8.00% 05/01/27 ............ 1,155,246 1,161,023
6.00% 04/01/29 - 08/01/29 . 1,041,569 948,589
6.50% 06/01/29 - 08/01/29 . 2,130,217 1,999,059
7.50% 10/01/29 ............ 149,904 147,420
7.00% 12/01/29 ............ 1,699,865 1,635,050
7.00% 02/01/30 ............ 672,084 646,907
7.50% TBA ................. 690,000 678,677(c)
8.00% TBA ................. 1,780,000 1,786,960(c)
9,402,684
Federal National Mortgage Assoc.
6.99% 07/09/07 ............ 855,000 821,467
9.00% 06/01/09 ............ 333,371 344,934
7.50% 12/01/09 ............ 753,833 753,833
7.00% 08/01/13 ............ 59,454 58,450
7.50% 02/01/14 ............ 347,212 347,212
9.00% 04/01/16 ............ 177,687 186,233
8.00% 12/01/17 ............ 144,558 146,151
9.00% 12/01/17 ............ 118,893 122,680
9.00% 12/01/22 ............ 136,908 141,399
7.50% 12/01/23 ............ 332,785 329,144
6.50% 03/01/29 ............ 536,535 503,340(m)
7.00% 07/01/29 ............ 245,682 236,162
7.50% 09/01/29 ............ 87,463 85,960
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
6.00% 10/01/29 ............ $ 397,778 $ 362,101
6.50% 01/01/29 - 10/01/29 . 1,876,690 1,760,121
7.00% 01/01/30 - 02/01/30 . 997,997 959,326
7.50% 02/01/30 ............ 2,348,162 2,307,797
6.50% TBA ................. 648,000 623,901(c)
7.50% TBA ................. 75,000 73,723(c)
8.00% TBA ................. 3,050,000 3,058,570(c)
13,222,504
Government National Mortgage Assoc.
7.00% 03/15/12 ............ 411,448 406,432
9.00% 11/15/16 ............ 565,060 587,663
8.50% 10/15/17 ............ 795,204 819,792
9.00% 01/15/17 - 11/15/17 . 312,554 324,992
9.00% 12/15/21 ............ 24,184 25,095
7.50% 01/15/23 ............ 95,398 95,040
6.50% 02/15/24 - 03/15/24 . 840,213 798,723
6.50% 04/15/28 ............ 1,936,615 1,827,680
7.00% 04/15/28 ............ 444,845 431,081
8.00% TBA ................. 776,000 784,854(c)
6,101,352
TOTAL AGENCY MORTGAGE BACKED
(COST $29,234,051) ........... 28,726,540
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.3%
Collateralized Mortgage Obligation Trust
5.97% 09/01/15 ............ 7,201 6,404(d,f)
5.74% 11/01/18 ............ 23,717 17,002(d,f)
23,406
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 ............ 13,429 13,601
5.75% 06/15/23 ............ 137,000 129,126
6.50% 12/15/28 ............ 120,000 110,737
253,464
Federal Home Loan Mortgage Corp. STRIP
6.71% 06/15/29 ............ 173,406 105,235(d,f)
Federal National Mortgage Assoc.
8.50% 03/01/17 ............ 9,186 2,342(d,g)
15.92% 04/01/17 ............ 18,948 4,919(d,g)
8.50% 01/01/18 ............ 3,419 879(d,g)
7.00% 06/18/20 ............ 8,555 8,526
8.00% 10/25/20 ............ 50,529 51,018
6.18% 12/25/22 ............ 33,933 24,135(d,f)
91,819
Federal National Mortgage Assoc. REMIC
6.167% 05/25/14 ............ 24,654 23,733(d)
9.00% 05/25/22 ............ 34,337 9,480(d,g)
8.50% 07/25/22 ............ 46,850 12,517(d,g)
45,730
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $550,998) .............. 519,654
ASSET BACKED -- 1.5%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 ............ 10,934 10,538
American Express Credit
Account Master Trust
6.085% 03/15/05 ............ 62,000 62,135
-----------
See Notes to Schedules of Investments and Financial Statements.
52
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
American Express Master Trust
6.154% 08/15/04 ............. $719,000 $ 719,446(m)
Citibank Credit Card
Master Trust I
5.80% 01/15/03 ............. 19,000 18,834
Discover Card Master
Trust I Series 1999-3
6.114% 09/15/04 ............. 1,025,000 1,025,000(m)
FedEx Corp.
7.50% 01/15/18 ............. 190,050 187,562
Ford Credit Auto Loan
Master Trust
5.50% 02/15/03 ............. 47,000 46,387
Green Tree Financial Corp.
6.90% 04/15/18 ............. 51,993 51,473
6.97% 04/01/31 ............. 88,000 86,735
MBNA Master Credit
Card Trust
6.264% 10/15/03 ............. 605,000 606,512(m)
6.224% 04/15/05 ............. 207,000 207,582(m)
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 ............. 61,031 59,897
West Penn Funding LLC
6.81% 09/25/08 ............. 63,000 61,445
Yorkshire Power Pass-
Through Asset Trust
8.25% 02/15/05 ............. 100,000 100,260(b)
TOTAL ASSET BACKED
(COST $3,247,892) ............. 3,243,806
CORPORATE NOTES -- 8.0%
Abbey National Capital Trust I
8.963% 12/29/49 ............. 85,000 86,542(m)
Abbey National PLC
7.95% 10/26/29 ............. 100,000 99,664
6.70% 06/29/49 ............. 55,000 50,824(m)
7.35% 10/29/49 ............. 42,000 40,816(m)
Aetna Services Inc.
6.97% 08/15/36 ............. 140,000 136,046
AFLAC Inc.
6.50% 04/15/09 ............. 225,000 208,647
Allstate Corp.
7.20% 12/01/09 ............. 85,000 82,254
Amerada Hess Corp.
7.875% 10/01/29 ............. 125,000 121,194
American Airlines Inc.
6.855% 04/15/09 ............. 85,000 83,438
Armstrong World Industries Inc.
7.45% 05/15/29 ............. 100,000 94,682
Arvin Industries Inc.
7.125% 03/15/09 ............. 105,000 91,452
Associates Corp. of
North America
6.375% 10/15/02 ............. 200,000 196,150
5.75% 11/01/03 ............. 55,000 52,493
AT&T Capital Corp.
6.60% 05/15/05 ............. 70,000 67,375
AT&T Corp.
6.50% 03/15/29 ............. 130,000 112,688
AT&T Corp. - Liberty Media Group
8.25% 02/01/30 ............. 25,000 24,090
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Bank One Corp.
6.40% 08/01/02 ............. $195,000 $ 190,979
BCI US Funding Trust I
8.01% 12/29/49 ............. 100,000 91,028(b,m)
Bear Stearns Cos. Inc.
7.625% 12/07/09 ............. 155,000 152,075
Beckman Instruments Inc.
7.10% 03/04/03 ............. 50,000 47,950
Bellsouth Capital Funding
7.875% 02/15/30 ............. 150,000 152,520
Bellsouth Telecomm Inc.
6.375% 06/01/28 ............. 75,000 63,391
Boston University
7.625% 07/15/97 ............. 200,000 186,398
Brascan Ltd.
7.375% 10/01/02 ............. 30,000 29,334
Bristol-Myers Squibb Co.
6.875% 08/01/97 ............. 50,000 45,352
CIT Group Inc.
7.375% 03/15/03 ............. 90,000 89,234
7.125% 10/15/04 ............. 120,000 118,588
Cleveland Electric Co.
Toledo Edison
7.19% 07/01/00 ............. 30,000 29,966
Coastal Corp.
6.375% 02/01/09 ............. 160,000 145,414
Conseco Inc.
6.40% 06/15/01 ............. 135,000 131,219(m)
8.70% 11/15/26 ............. 50,000 42,062
Continental Cablevision Inc.
8.50% 09/15/01 ............. 70,000 70,842
Corporacion Andina
De Fomento
6.75% 03/15/05 ............. 130,000 122,477
CSC Holdings Inc.
8.125% 07/15/09 ............. 90,000 89,100
DaimlerChrysler AG
7.40% 01/20/05 ............. 160,000 159,624
7.20% 09/01/09 ............. 125,000 121,850
Delphi Auto Systems Corp.
6.125% 05/01/04 ............. 85,000 80,087
Dresdner Funding Trust I
8.151% 06/30/31 ............. 200,000 185,610(b)
Du Pont de Nemours (E.I.) & Co.
6.75% 10/15/04 ............. 55,000 54,337
6.875% 10/15/09 ............. 55,000 53,384
Duke Capital Corp.
7.25% 10/01/04 ............. 190,000 189,388
Duke Energy Corp.
5.375% 01/01/09 ............. 150,000 130,021
Electronic Data Systems Corp.
6.85% 10/15/04 ............. 50,000 49,361
Empresa Nacional De Electricidad
8.125% 02/01/97 ............. 65,000 53,318
EOP Operating LP
6.50% 01/15/04 ............. 150,000 142,702
Federated Department Stores Inc.
6.125% 09/01/01 ............. 85,000 83,685(m)
Ford Motor Credit Co.
7.50% 03/15/05 ............. 200,000 200,122
5.80% 01/12/09 ............. 120,000 106,308
7.375% 10/28/09 ............. 340,000 333,084
7.45% 07/16/31 ............. 200,000 193,420
Fortune Brands Inc.
7.125% 11/01/04 ............. 100,000 98,904(b)
------------
See Notes to Schedules of Investments and Financial Statements.
53
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
FPL Group Capital Inc.
7.375% 06/01/09 .............. $480,000 $ 465,902
General Motors Acceptance Corp.
5.75% 11/10/03 .............. 50,000 47,281
6.125% 01/22/08 .............. 85,000 77,449
Georgia-Pacific Group
9.95% 06/15/02 .............. 50,000 52,257
Goldman Sachs Group L.P.
6.65% 05/15/09 .............. 100,000 93,650
Guangdong International
Trust & Investment Corp.
8.75% 10/24/16 .............. 50,000 4,500(b,n)
Heritage Media Corp.
8.75% 02/15/06 .............. 90,000 88,650
Household Finance Corp.
6.125% 07/15/12 .............. 40,000 38,883(m)
Hydro-Quebec
8.25% 04/15/26 .............. 50,000 53,913
Israel Electric Corp. Ltd.
8.10% 12/15/96 .............. 25,000 21,375(b)
7.125% 07/15/05 .............. 50,000 47,828(b)
J.P. Morgan & Co.
6.00% 01/15/09 .............. 200,000 177,676
Korea Development Bank
6.625% 11/21/03 .............. 75,000 71,381
Kroger Co.
6.34% 06/01/01 .............. 154,000 151,683
7.375% 03/01/05 .............. 150,000 147,147
LCI International Inc.
7.25% 06/15/07 .............. 129,000 125,658
Lehman Brothers Holdings Inc.
7.75% 01/15/05 .............. 195,000 196,854
8.50% 08/01/15 .............. 80,000 83,217
7.50% 08/01/26 .............. 115,000 111,550
Lenfest Communications Inc.
8.375% 11/01/05 .............. 95,000 98,754
LG&E Capital Corp.
5.75% 11/01/01 .............. 90,000 87,926(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 .............. 70,000 62,147
Lockheed Martin Corp.
7.95% 12/01/05 .............. 130,000 129,190
8.20% 12/01/09 .............. 165,000 165,195
Lumbermens Mutual Casualty
8.30% 12/01/37 .............. 20,000 18,185(b)
MCI WorldCom Inc.
6.40% 08/15/05 .............. 85,000 81,596
8.875% 01/15/06 .............. 100,000 104,236
6.125% 04/15/12 .............. 300,000 293,322(m)
Meditrust
7.114% 08/15/04 .............. 100,000 45,000
Merita Bank Ltd.
7.15% 12/29/49 .............. 250,000 243,605(b,m)
Merrill Lynch & Co.
5.71% 01/15/02 .............. 165,000 160,784
Morgan Stanley, Dean
Witter & Co.
7.125% 01/15/03 .............. 185,000 183,785
5.625% 01/20/04 .............. 160,000 150,894
Nabisco Inc.
6.125% 02/01/33 .............. 70,000 66,709
Natexis AMBS Co. LLC
8.44% 12/29/49 .............. 95,000 89,983(b,m)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
National Rural Utilities
Cooperative
6.046% 04/15/03 .............. $100,000 $ 96,692
National Westminster Bank PLC
7.75% 04/29/49 .............. 35,000 34,961(m)
NB Capital Trust IV
8.25% 04/15/27 .............. 195,000 190,283
Newell Co.
6.35% 07/15/08 .............. 125,000 119,047(m)
News America Holdings Inc.
7.625% 11/30/28 .............. 110,000 100,670
Noram Energy Corp.
6.375% 11/01/03 .............. 70,000 67,337(m)
Northrop-Grumman Corp.
8.625% 10/15/04 .............. 65,000 66,758
Occidental Petroleum Corp.
7.375% 11/15/08 .............. 65,000 62,389
Ontario Province of Canada
7.375% 01/27/03 .............. 150,000 150,807
Pactiv Corp.
8.375% 04/15/27 .............. 125,000 116,183
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 .............. 150,000 140,447(b)
5.625% 02/17/09 .............. 65,000 57,911(b)
Pharmacia Corp.
5.75% 12/01/05 .............. 65,000 61,276
Philip Morris Cos. Inc.
7.25% 09/15/01 .............. 60,000 59,381
7.20% 02/01/07 .............. 30,000 27,137
7.65% 07/01/08 .............. 100,000 91,486
Phillips Petroleum Co.
9.375% 02/15/11 .............. 195,000 215,754
Pitney Bowes Credit Corp.
9.25% 06/15/08 .............. 200,000 227,440
PP&L Capital Funding Inc.
7.75% 04/15/05 .............. 125,000 123,735
Principal Financial Group
8.20% 08/15/09 .............. 80,000 81,112(b)
Procter & Gamble Co.
9.36% 01/01/21 .............. 110,000 128,789
Quebec Province of Canada
7.50% 09/15/29 .............. 90,000 90,431
Raytheon Co.
7.90% 03/01/03 .............. 140,000 140,361(b)
6.75% 08/15/07 .............. 150,000 139,479
Rohm & Haas Co.
6.95% 07/15/04 .............. 165,000 162,974
Royal & Sun Alliance Insurance
Group PLC
8.95% 10/15/29 .............. 115,000 117,740(b)
Royal Bank of Scotland Group PLC
8.817% 03/31/49 .............. 100,000 101,944
Safeway Inc.
7.50% 09/15/09 .............. 85,000 84,835
Sprint Capital Corp.
5.70% 11/15/03 .............. 60,000 56,783
6.875% 11/15/28 .............. 230,000 206,257
St. George Funding Co.
8.485% 12/31/49 .............. 150,000 135,040(b,m)
Stop & Shop Cos. Inc.
9.75% 02/01/02 .............. 40,000 40,800
SunAmerica Inc.
5.60% 07/31/97 .............. 150,000 105,279
------------------
See Notes to Schedules of Investments and Financial Statements.
54
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Suntrust Bank Inc.
6.00% 01/15/28 ........... $ 60,000 $ 54,694
Tele-Communications Inc.
9.80% 02/01/12 ........... 125,000 148,038
7.875% 08/01/13 ........... 75,000 77,135
Tenet Healthcare Corp.
7.88% 01/15/03 ........... 60,000 57,450
Texas Utilities Co.
5.94% 10/15/01 ........... 100,000 98,069(m)
Textron Inc.
6.375% 07/15/04 ........... 140,000 135,563
Time Warner Inc.
7.57% 02/01/24 ........... 285,000 274,073
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 ........... 250,000 244,662(b)
Tosco Corp.
7.625% 05/15/06 ........... 50,000 49,513
Transamerica Capital
7.625% 11/15/37 ........... 100,000 88,836
TRW Inc.
6.625% 06/01/04 ........... 110,000 105,904
Turner Broadcasting Systems Inc.
8.375% 07/01/13 ........... 90,000 93,618
TXU Eastern Funding Co.
6.45% 05/15/05 ........... 165,000 153,841
6.75% 05/15/09 ........... 100,000 90,601
Tyco International Group S.A.
6.875% 09/05/02 ........... 250,000 245,530(b)
6.25% 06/15/03 ........... 35,000 33,384(m)
7.00% 06/15/28 ........... 305,000 266,042
Union Carbide Corp.
6.79% 06/01/25 ........... 100,000 96,629
Union Oil Co.
7.35% 06/15/09 ........... 100,000 96,701
United Illuminating Co.
6.25% 12/15/02 ........... 25,000 24,125
US Airways Pass-Through Trust
8.36% 07/20/20 ........... 85,000 83,044
US West Capital Funding Inc.
6.875% 08/15/01 ........... 135,000 134,171
US West Communications Inc.
5.625% 11/15/08 ........... 95,000 82,867
USA Networks Inc.
6.75% 11/15/05 ........... 80,000 76,643
USX Marathon Group
9.80% 07/01/01 ........... 60,000 61,474
Vodafone AirTouch PLC
7.625% 02/15/05 ........... 180,000 182,183(b)
Wal-Mart Stores Inc.
6.875% 08/10/09 ........... 330,000 321,050
Walt Disney Co.
5.62% 12/01/08 ........... 80,000 70,968
Westinghouse Electric Corp.
8.875% 06/01/01 ........... 40,000 40,730
Williams Cos. Inc.
6.125% 02/15/12 ........... 120,000 117,007
Yale University
7.375% 04/15/96 ........... 45,000 43,213
TOTAL CORPORATE NOTES
(COST $17,576,344) .......... 16,868,930
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
NON-AGENCY MORTGAGE BACKED SECURITIES -- 1.1%
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 ........... $ 83,000 $ 77,233
Commercial Mortgage
Acceptance Corp.
6.49% 05/15/08 ........... 106,000 99,176
DLJ Commercial Mortgage Corp.
6.24% 11/12/31 ........... 183,000 167,744
DLJ Mortgage Acceptance Corp.
6.41% 02/15/08 ........... 246,000 232,047
First Union Lehman Brothers-
Bank of America
6.28% 06/18/07 ........... 290,514 278,596
6.56% 11/18/08 ........... 1,035,000 976,600
GS Mortgage Securities Corp.
6.86% 07/13/30 ........... 117,000 114,006
Merrill Lynch Mortgage
Investors Inc.
6.39% 02/15/30 ........... 291,000 276,495
Mid State Trust
7.54% 07/01/35 ........... 23,979 22,780
Nationslink Funding Corp.
6.001% 11/20/07 ........... 66,024 62,497
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $2,462,697) ........... 2,307,174
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.8%
Asset Securitization Corp.
6.50% 02/14/41 ........... 54,765 53,973
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 11/15/08 ........... 83,000 78,422
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 ........... 74,000 68,915
9.55% 08/15/23 ........... 3,198,386 123,698(d,g)
J P Morgan Commercial
Mortgage Finance Corp.
7.77% 10/15/32 ........... 358,000 363,369
7.886% 10/15/32 ........... 120,000 122,498(m)
Lehman Large Loan
6.79% 06/12/04 ........... 69,761 68,842
Morgan Stanley Capital I
6.86% 05/15/06 ........... 108,955 107,189(b)
6.52% 01/15/08 ........... 25,000 23,522
6.54% 05/15/08 ........... 142,000 134,068
6.21% 09/15/08 ........... 32,000 29,518
7.11% 07/15/09 ........... 93,000 89,658
10.25% 04/15/23 ........... 969,504 37,568(d,g)
6.01% 11/15/30 ........... 115,565 109,467
10.41% 11/15/31 ........... 1,512,157 69,229(b,d,g)
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 ........... 216,746 187,607(m)
Structured Asset Securities Corp.
6.22% 02/25/28 ........... 451,654 23,147(d,g)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,757,106) ........... 1,690,690
TOTAL BONDS AND NOTES
(COST $73,697,422) .......... 72,126,582
-----------------
See Notes to Schedules of Investments and Financial Statements.
55
<PAGE>
GE STRATEGIC INVESTMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.4%
--------------------------------------------------------------------------------
CORPORATE PREFERRED -- 0.2%
Centaur Funding Corp.
(Series B), 9.08% ................ 405 $ 418,235(b)
TCI Communications Inc.,
10.00% ........................... 2,800 71,400
489,635
INTERNATIONAL PREFERRED -- 0.2%
Henkel KGaA ......................... 3,214 184,654
Telecomunicacoes Brasileiras
S.A. ADR ......................... 827 123,791
308,445
TOTAL PREFERRED STOCK
(COST $812,897) .................. 798,080
--------------------------------------------------------------------------------
WARRANTS -- 0.0%
--------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG (Regd.),
06/03/02
(COST $0) ........................ 27 2,327(a)
TOTAL INVESTMENTS IN SECURITIES
(COST $159,865,285) .............. 197,971,115
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.1%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund
(COST $17,097,607) ............17,097,607 17,097,607
OTHER ASSETS AND LIABILITIES,
NET (2.3)% ....................... (4,811,465)
------------
NET ASSETS-- 100% ................... $210,257,257
============
-----------
See Notes to Schedules of Investments and Financial Statements.
56
<PAGE>
GE INCOME FUNDS
Q&A
ROBERT MACDOUGALL LEADS THE FIXED INCOME TEAM AT GE ASSET MANAGEMENT. TOTAL
ASSETS UNDER HIS MANAGEMENT EXCEEDS $29 BILLION. BOB JOINED GE INVESTMENTS IN
1986 AS A MUTUAL FUND PORTFOLIO MANAGER AND WAS APPOINTED TO HEAD THE TAXABLE
FIXED INCOME TEAM IN 1992, AND THE TAX-EXEMPT FIXED INCOME TEAM IN 1998.
PREVIOUSLY HE WAS WITH GE'S CORPORATE TREASURY OPERATION MANAGING THE COMPANY'S
$2 BILLION PORTFOLIO OF MARKETABLE SECURITIES AND SUPPORTING THE TREASURER IN
THE AREAS OF DEBT MANAGEMENT AND CAPITAL STRUCTURE PLANNING. PRIOR TO THAT, BOB
HELD VARIOUS FINANCIAL MANAGEMENT POSITIONS SINCE JOINING GE IN 1973. HE HOLDS
BACHELOR'S AND MASTER'S DEGREES IN BUSINESS ADMINISTRATION FROM THE UNIVERSITY
OF MASSACHUSETTS.
Q. DESCRIBE WHAT OCCURRED IN THE FIXED INCOME MARKETS DURING THE SIX-MONTH
PERIOD ENDED MARCH 31, 2000?
A. During the six months ended March 31, 2000, the Federal Reserve Board
remained vigilant against heightened inflation risks from an overheated
economy. Led by consumer spending, the Gross Domestic Product grew in the
final quarter of 1999 at its fastest pace in nearly 16 years and remained
strong through the first quarter of 2000. Subsequently, the Federal Reserve
raised the federal funds rate on three occasions, in increments of 25 basis
points, to 6.00% during the period.
The yield curve experienced a significant flattening over the six months. On
September 30, 1999, yields on two- year notes and 30-year bonds were 5.60%
and 6.05%, respectively. As the Fed tightened, interest rates climbed.
Market expectations of further rate hikes put more upward pressure on yields
of short maturity issues relative to long maturities. By December 31, 1999,
the two- year note yield had risen to 6.24%, up 64 basis points, while the
30- year bond yield stood at 6.48%, up 43 basis points. The yield curve
inversion continued in the first quarter of 2000. Short maturity yields
increased further as more Fed tightening was priced into the market. Reduced
supply and a Treasury announcement of long maturity buy-backs drove yields
on long treasuries significantly lower. By March 31, 2000 yields on two-year
securities were higher by 24 basis points at 6.48% and yields on 30- year
issues declined 64 basis points to 5.84%.
The market, represented by the Lehman Brothers Aggregate Bond Index returned
2.08% for the period. The government sector outperformed other sectors with
a total return of 2.70%. Corporate and mortgage backed securities posted
returns of 1.46% and 1.77%, respectively. The underperformance of these
sectors resulted from severe spread widening in the last three months as
reduced treasury supply and equity market volatility pushed investors to the
safe haven of Treasury securities.
GE FIXED INCOME FUND
Q. HOW DID THE GE FIXED INCOME FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM
FOR THE SIX MONTH PERIOD ENDED MARCH 31, 2000?
A. The Lehman Brothers Aggregate Bond Index posted a positive total return of
2.08%. The average return for 145 Intermediate Government Bond funds making
up the Lipper peer group returned 1.53%. To see how your class of shares in
the GE Fixed Income Fund performed relative to its benchmark, please, refer
to page 59.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. Overall, the Fund performed in line with the market and peers. Good security
selection, particularly in the corporate sector and commercial mortgage
backed sectors, helped offset an unfavorable sector allocation as federal
agencies and mortgage backed securities underperformed U.S. Treasuries.
[PHOTO OF ROBERT MACDOUGALL OMITTED]
57
<PAGE>
GE INCOME FUNDS (CONTINUED)
GE GOVERNMENT SECURITIES FUND
Q. HOW DID THE GE GOVERNMENT SECURITIES FUND'S BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX MONTH PERIOD ENDED MARCH 31, 2000?
A. The Lehman Brothers Government Bond Index returned 2.70% for the period,
while the average return for the 145 Intermediate Government funds tracked
by Lipper was 1.53%. To see how your class of shares in the GE Government
Securities Fund performed relative to its benchmark, please, refer to page
65.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. A barbelled Treasury position (combination of short and long maturity
issues) added significantly to performance as the yield curve flattened
dramatically during the period. Partially offsetting this was our allocation
to mortgage backed securities, which underperformed U.S. Treasuries during
the period. Overall, the Fund outperformed both its benchmark and its peer
group.
GE SHORT-TERM GOVERNMENT FUND
Q. HOW DID THE GE SHORT-TERM GOVERNMENT FUND'S BENCHMARK AND LIPPER PEER GROUP
PERFORM FOR THE SIX MONTH PERIOD ENDED MARCH 31, 2000?
A. The Lehman Brothers 1-3 Year Government Bond Index returned 1.82% for the
period. The average return for the 195 Short-Term Government funds tracked
by Lipper was 1.59%. To see how your class of shares in the GE Short-Term
Government Fund performed relative to its benchmark, please, refer to page
68.
Q. WHAT WERE THE KEY DRIVERS OF FUND PERFORMANCE?
A. The Fund benefited from a lower duration (interest rate exposure) during the
period of rising interest rates. On the other hand, our exposure to higher
yielding "spread" products such as asset backed securities hurt performance
as these securities underperformed U.S. Treasuries.
OVERALL
Q. WHAT IS YOUR OUTLOOK FOR THE BOND MARKET?
A. The Federal Reserve Board will continue raising short-term interest rates
gradually through the second quarter until consumer demand shows signs of
slowing. Despite lower treasury yields, sticky borrowing costs in the
private sector should become a drag on our fast paced economy alleviating
the need for further rate hikes. The current disconnect between declining
treasury yields, particularly in longer maturity issues, and yields of
non-treasury securities presents a challenging environment for bond
investors to assess relative value. While we believe spread volatility may
continue in the short run, strategic allocation to spread sectors combined
with keen security selection should benefit longer-term performance.
58
<PAGE>
GE FIXED INCOME FUND
--------------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings** Net Assets
--------------------------------------------------------------------------------
Aaa or better 77.55%
--------------------------------------------------------------------------------
A to AA 14.24%
--------------------------------------------------------------------------------
Below A 8.21%
--------------------------------------------------------------------------------
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 3/31/00
Six One Five
Months Year Year
------- ------ -----------
Number of Funds in peer group: 145 140 92
Peer group average annual total return: 1.53% 0.98% 5.88%
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+
[LINE GRAPH OMITTED]
GE FIXED INCOME GE FIXED INCOME W/LOAD LB AGGREGATE
2/22/93 10000.00 9575.00 10000.00
10081.05 9655.60 10041.80
9/93 10524.00 10079.81 10576.96
10249.59 9816.97 10279.87
9/94 10211.26 9780.18 10235.87
10700.74 10248.90 10792.61
9/95 11519.50 11033.11 11675.08
11743.72 11247.85 11955.18
9/96 11991.43 11485.12 12244.82
12293.78 11774.71 12542.24
9/97 13124.17 12570.04 13437.82
13651.43 13075.03 14047.16
9/98 14444.00 13834.25 14983.10
14388.18 13781.04 14957.20
9/99 14270.44 13668.26 14926.95
3/00 14518.41 13905.77 15237.89
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------- ----- ---------
GE Fixed Income 1.65% 0.81% 6.27% 5.37%
GE Fixed Income w/load (2.66%) (3.47%) 5.35% 4.74%
(maximum load-4.25%)
LB Aggregate 2.08% 1.88% 7.14% 6.11%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME GE FIXED INCOME W/LOAD LB AGGREGATE
12/22/93 10000.00 10000.00 10000.00
9742.02 9742.02 9713.37
9/94 9669.13 9669.13 9671.19
10094.77 10094.77 10197.85
9/95 10827.50 10827.50 11031.69
10997.08 10997.08 11296.35
9/96 11196.65 11196.65 11570.04
11437.39 11437.39 11851.06
9/97 12164.50 12164.50 12697.29
12616.61 12616.61 13273.05
9/98 13288.00 13288.00 14157.41
13198.88 13198.88 14132.94
9/99 13042.69 13042.69 14104.35
3/00 13239.82 13239.82 14398.16
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------- ----- --------
GE Fixed Income 1.27% 0.07% 5.52% 4.56%
GE Fixed Income w/load (1.70%) (2.79%) 5.52% 4.56%
(maximum load) 3.00% 3.00% 0.00% 0.00%
LB Aggregate 2.08% 1.88% 7.14% 5.98%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME GE FIXED INCOME W/LOAD LB AGGREGATE
9/30/99 10000.00 10000.00 10000.00
10/99 10022.60 10022.60 10037.00
11/99 10019.69 10019.69 10036.00
12/99 9967.76 9967.76 9987.82
01/00 9913.49 9913.49 9954.86
02/00 10019.31 10019.31 10075.32
03/00 10134.71 10035.99 10208.31
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Fixed Income 1.27%
GE Fixed Income w/load 0.28%
(maximum load) 1.00%
LB Aggregate 2.08%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE FIXED INCOME LB AGGREGATE
11/29/93 10000.00 10000.00
9790.00 9766.01
9/94 9765.50 9724.21
10246.42 10253.12
9/95 11044.37 11091.48
11269.08 11357.58
9/96 11521.71 11632.74
11828.12 11915.30
9/97 12643.48 12766.11
13178.51 13344.99
9/98 13950.00 14234.14
13924.76 14209.54
9/99 13827.95 14180.80
3/00 14073.04 14476.20
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ----- ----- ----------
GE Fixed Income 1.77% 1.06% 6.55% 5.54%
LB Aggregate 2.08% 1.88% 7.14% 6.01%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
59
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE FIXED INCOME FUND
[PIE CHART OMITTED]
MORTGAGE BACKED 42.4%
CORPORATE NOTES 22.8%
U.S. TREASURIES 16.3%
CASH & OTHER 9.8%
FEDERAL AGENCIES 8.7%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 94.1%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 16.3%
U.S. Treasury Bonds
8.125% 08/15/19 ............ $5,845,000 $ 7,106,234(h)
6.125% 08/15/29 ............ 2,000,000 2,038,440(h)
6.25% 05/15/30 ............ 4,325,000 4,572,347(h,l)
13,717,021
U.S. Treasury Notes
5.875% 11/30/01 ............ 6,858,000 6,788,323(h)
6.50% 02/28/02 ............ 2,075,000 2,074,025(l)
5.875% 11/15/04 ............ 2,390,000 2,346,669(h)
11,209,017
U.S. Treasury STRIPS
6.40% 02/15/12 ............ 1,140,000 544,122(d,h)
TOTAL U.S. TREASURIES
(COST $25,212,436) ........... 25,470,160
FEDERAL AGENCIES -- 8.7%
Federal Home Loan Bank
5.25% 04/25/02 ............ 990,000 957,825
Federal Home Loan Mortgage Corp.
6.22% 03/18/08 ............ 880,000 809,741
5.75% 04/15/08 ............ 485,000 442,941
5.125% 10/15/08 ............ 475,000 413,174
1,665,856
Federal National Mortgage Assoc.
6.625% 01/15/02 ............ 3,200,000 3,182,496
5.75% 04/15/03 ............ 895,000 863,952
5.125% 02/13/04 ............ 1,825,000 1,706,083
5.78% 05/05/04 ............ 685,000 650,003
6.99% 07/09/07 ............ 945,000 907,937
5.64% 12/10/08 ............ 935,000 862,818
6.04% 02/25/09 ............ 1,930,000 1,760,527
6.99% 06/01/17 ............ 3,540,000 1,073,045(d)
11,006,861
TOTAL FEDERAL AGENCIES
(COST $14,215,074) ........... 13,630,542
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AGENCY MORTGAGE BACKED -- 36.1%
Federal Home Loan Mortgage Corp.
7.50% 11/01/09 ............ $ 334,433 $ 335,058
7.50% 06/01/10 ............ 398,348 399,093
9.00% 12/01/16 ............ 195,157 199,973
9.50% 04/01/21 ............ 17,222 18,169(h)
8.00% 08/01/25 - 10/01/25 . 289,301 290,926
8.00% 05/01/27 ............ 1,986,189 1,996,120
6.00% 05/01/29 - 08/01/29 . 1,097,051 998,997
6.50% 04/01/29 - 08/01/29 . 7,246,430 6,800,884
7.50% 01/01/30 - 02/01/30 . 2,000,200 1,967,056
7.00% 03/01/30 - 04/01/30 . 6,351,554 6,108,670
7.50% TBA ................. 1,460,000 1,436,041(c)
8.00% TBA ................. 5,436,000 5,457,255(c)
26,008,242
Federal National Mortgage Assoc.
9.00% 06/01/09 ............. 708,413 732,986
7.50% 12/01/09 ............. 1,876,717 1,876,717
7.00% 08/01/13 ............. 132,806 130,564
7.50% 02/01/14 ............. 758,278 758,279
9.00% 04/01/16 ............. 759,675 796,215
8.00% 12/01/17 ............. 321,758 325,304
9.00% 12/01/17 ............. 250,995 258,992
9.00% 12/01/22 ............. 287,507 296,937
7.50% 12/01/23 ............. 858,574 849,181
6.00% 10/01/29 ............. 994,444 905,252
6.50% 03/01/29 ............. 1,095,107 1,027,353(m)
6.50% 01/01/29 - 11/01/29 .. 3,437,970 3,223,843
7.00% 11/01/29 - 12/01/29 .. 904,216 869,177
7.00% 01/01/30 - 01/31/30 .. 1,487,675 1,430,028
7.50% 01/01/30 - 02/01/30 .. 2,232,412 2,194,036
6.50% TBA .................. 545,000 524,731(c)
7.50% TBA .................. 618,000 607,476(c)
8.00% TBA .................. 4,054,000 4,065,392(c)
20,872,463
Government National Mortgage Assoc.
7.00% 03/15/12 ............. 1,175,566 1,161,236
9.00% 11/15/16 ............. 698,946 726,903
9.00% 01/15/17 - 11/15/17 .. 531,531 552,714
9.00% 12/15/21 ............. 55,623 57,717
7.50% 01/15/23 - 12/15/23 .. 1,611,859 1,605,816
6.50% 02/15/24 - 04/15/24 .. 900,117 855,668
7.00% 02/15/28 - 04/15/28 .. 786,904 762,557
6.50% 04/15/28 ............. 1,576,139 1,487,481
7.50% 01/15/28 - 09/15/28 .. 745,903 740,292
8.00% TBA .................. 1,579,000 1,597,016(c)
9,547,400
TOTAL AGENCY MORTGAGE BACKED
(COST $57,262,809) ............ 56,428,105
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.9%
Collateralized Mortgage Obligation Trust
5.97% 09/01/15 ............. 19,900 17,698(d,f)
5.74% 11/01/18 ............. 65,542 46,985(d,f)
64,683
Federal Home Loan Mortgage Corp.
8.00% 04/15/20 ............. 31,333 31,735
5.75% 06/15/23 ............. 293,000 276,161
6.50% 12/15/28 ............. 354,000 326,675
634,571
-------------
See Notes to Schedules of Investments and Financial Statements.
60
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Federal Home Loan Mortgage
Corp. STRIP
6.71% 06/15/29 ............ $ 754,314 $ 457,771(d,f)
Federal National Mortgage Assoc.
8.50% 03/01/17 ............ 25,385 6,471(g)
15.92% 04/01/17 ............ 52,266 13,569(d,g)
8.50% 01/01/18 ............ 9,449 2,429(g)
7.00% 06/18/20 ............ 15,850 15,796
8.00% 10/25/20 ............ 101,058 102,037
6.18% 12/25/22 ............ 62,573 44,505(d,f)
184,807
Federal National Mortgage
Assoc. REMIC
6.167% 05/25/14 ............ 46,319 44,589(m)
9.00% 05/25/22 ............ 63,312 17,479(g)
8.50% 07/25/22 ............ 118,314 31,611(g)
93,679
TOTAL AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,504,946) ............. 1,435,511
ASSET BACKED -- 3.9%
Advanta Mortgage Loan Trust Corp.
6.30% 07/25/25 ............. 21,868 21,076
American Express Credit
Account Master Trust
6.085% 03/15/05 ............. 107,000 107,233
American Express Master Trust
6.154% 08/15/04 ............. 1,244,000 1,244,771(m)
Arran One Ltd.
6.352% 03/15/05 ............. 100,000 100,062(m)
Citibank Credit Card
Master Trust I
5.75% 01/15/03 ............. 41,000 40,641
5.30% 01/09/06 ............. 375,000 350,974
Discover Card Master Trust I
Series 1999-3
6.114% 09/15/04 ............. 2,200,000 2,200,000(m)
FedEx Corp.
7.50% 01/15/18 ............. 185,298 182,873
Ford Credit Auto Loan
Master Trust
5.50% 02/15/03 ............. 95,000 93,762
Green Tree Financial Corp.
Series 1993-1
6.90% 04/15/18 ............. 116,984 115,815
MBNA Master Credit Card Trust
6.264% 10/15/03 ............. 1,049,000 1,051,622(m)
6.224% 04/15/05 ............. 358,000 359,006(m)
West Penn Funding LLC
6.81% 09/25/08 ............. 117,000 114,112
Yorkshire Power Pass-Through
Asset Trust
8.25% 02/15/05 ............. 160,000 160,416(b)
TOTAL ASSET BACKED
(COST $6,147,659) ............. 6,142,363
CORPORATE NOTES -- 22.8%
Abbey National Capital Trust I
8.963% 12/29/49 ............. 185,000 188,356(m)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Abbey National PLC
7.95% 10/26/29 ............ $ 280,000 $ 279,059
6.70% 06/29/49 ............ 220,000 203,295(m)
7.35% 10/29/49 ............ 145,000 140,913(m)
Aetna Services Inc.
6.97% 08/15/36 ............ 330,000 320,681
AFLAC Inc.
6.50% 04/15/09 ............ 165,000 153,008
Allstate Corp.
7.20% 12/01/09 ............ 1,160,000 1,122,520
Amerada Hess Corp.
7.875% 10/01/29 ............ 340,000 329,647
American Airlines Inc.
6.855% 04/15/09 ............ 125,000 122,702
Arizona Public Service Co.
6.25% 01/15/05 ............ 120,000 112,944
Armstrong World Industries Inc.
7.45% 05/15/29 ............ 200,000 189,364
Arvin Industries Inc.
7.125% 03/15/09 ............ 185,000 161,129
Associates Corp.
of North America
6.375% 10/15/02 ............ 500,000 490,375
5.75% 11/01/03 ............ 935,000 892,383
AT&T Capital Corp.
6.60% 05/15/05 ............ 130,000 125,125
AT&T Corp.
6.50% 03/15/29 ............ 465,000 403,076
AT&T Corp. - Liberty
Media Group
8.25% 02/01/30 ............ 40,000 38,544
Atlantic City Electric Co.
6.19% 01/17/06 ............ 305,000 288,914
Bank One Corp.
6.40% 08/01/02 ............ 275,000 269,329
BCI US Funding Trust I
8.01% 12/29/49 ............ 150,000 136,543(b,m)
Bear Stearns Cos. Inc.
7.625% 12/07/09 ............ 275,000 269,811
Beckman Instruments Inc.
7.10% 03/04/03 ............ 100,000 95,900
Bell Telephone Co. - Pennsylvania
8.35% 12/15/30 ............ 75,000 81,122
Bellsouth Capital Funding
7.875% 02/15/30 ............ 395,000 401,636
Bellsouth Telecomm Inc.
6.375% 06/01/28 ............ 465,000 393,023
Boston University
7.625% 07/15/97 ............ 325,000 302,897
Brascan Ltd.
7.375% 10/01/02 ............ 60,000 58,668
Bristol-Myers Squibb Co.
6.875% 08/01/97 ............ 100,000 90,703
CBS Corp.
7.15% 05/20/05 ............ 170,000 167,210
CIT Group Inc.
7.375% 03/15/03 ............ 260,000 257,787
7.125% 10/15/04 ............ 620,000 612,703
Cleveland Electric Co.
Toledo Edison
7.19% 07/01/00 ............ 60,000 59,932
Coastal Corp.
6.375% 02/01/09 ............ 350,000 318,094
Conseco Inc.
6.40% 06/15/01 ............ 305,000 296,457(m)
8.70% 11/15/26 ............ 95,000 79,918
-----------------
See Notes to Schedules of Investments and Financial Statements.
61
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Continental Cablevision Inc.
8.50% 09/15/01 ............ $ 125,000 $ 126,504
Corporacion Andina De Fomento
6.75% 03/15/05 ............ 190,000 179,005
CSC Holdings Inc.
8.125% 07/15/09 ............ 140,000 138,600
DaimlerChrysler AG
7.40% 01/20/05 ............ 340,000 339,201
7.20% 09/01/09 ............ 170,000 165,716
Delphi Auto Systems Corp.
6.125% 05/01/04 ............ 245,000 230,839
Dresdner Funding Trust I
8.151% 06/30/31 ............ 350,000 324,817(b)
Du Pont de Nemours (E.I.) & Co.
6.75% 10/15/04 ............ 105,000 103,734
6.875% 10/15/09 ............ 105,000 101,915
Duke Capital Corp.
7.25% 10/01/04 ............ 845,000 842,279
Duke Energy Corp.
5.375% 01/01/09 ............ 400,000 346,724
Electronic Data Systems Corp.
6.85% 10/15/04 ............ 100,000 98,721
Empresa Nacional De Electricidad
8.125% 02/01/97 ............ 100,000 82,027
EOP Operating LP
6.50% 01/15/04 ............ 185,000 176,000
Federated Department Stores Inc.
6.125% 09/01/01 ............ 170,000 167,370(m)
Ford Motor Co.
7.50% 03/15/05 ............ 275,000 275,168
5.80% 01/12/09 ............ 140,000 124,026
7.375% 10/28/09 ............ 455,000 445,745
7.45% 07/16/31 ............ 205,000 198,256
Fortune Brands Inc.
7.125% 11/01/04 ............ 160,000 158,246(b)
FPL Group Capital Inc.
7.375% 06/01/09 ............ 700,000 679,441
General Motors Acceptance Corp.
5.75% 11/10/03 ............ 110,000 104,018
6.125% 01/22/08 ............ 175,000 159,453
Georgia-Pacific Group
9.95% 06/15/02 ............ 105,000 109,739
Goldman Sachs Group L.P.
6.65% 05/15/09 ............ 200,000 187,300
Guangdong International Trust
& Investment Corp.
8.75% 10/24/16 ............ 65,000 5,850(b,n)
Heritage Media Corp.
8.75% 02/15/06 ............ 135,000 132,975
Household Finance Corp.
6.125% 07/15/12 ............ 135,000 131,229(m)
Hydro-Quebec
8.25% 04/15/26 ............ 360,000 388,174
Israel Electric Corp. Ltd.
8.10% 12/15/96 ............ 240,000 205,200(b)
7.125% 07/15/05 ............ 95,000 90,873(b)
J.P. Morgan & Co.
6.00% 01/15/09 ............ 170,000 151,025
Korea Development Bank
6.625% 11/21/03 ............ 135,000 128,485
Kroger Co.
6.34% 06/01/01 ............ 206,000 202,901
7.375% 03/01/05 ............ 130,000 127,527
LCI International Inc.
7.25% 06/15/07 ............ 366,000 356,517
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Lehman Brothers Holdings Inc.
7.75% 01/15/05 ............ $ 390,000 $ 393,709
8.50% 08/01/15 ............ 100,000 104,021
7.50% 08/01/26 ............ 205,000 198,850
Lenfest Communications Inc.
8.375% 11/01/05 ............ 165,000 171,521
LG&E Capital Corp.
5.75% 11/01/01 ............ 200,000 195,390(b)
Liberty Property Ltd. Partnership
7.50% 01/15/18 ............ 125,000 110,977
Lockheed Martin Corp.
7.95% 12/01/05 ............ 330,000 327,944
8.20% 12/01/09 ............ 235,000 235,277
Lumbermens Mutual Casualty
8.30% 12/01/37 ............ 35,000 31,823(b)
MCI WorldCom Inc.
6.40% 08/15/05 ............ 165,000 158,392
8.875% 01/15/06 ............ 200,000 208,472
6.125% 04/15/12 ............ 300,000 293,322(m)
Meditrust
7.114% 08/15/04 ............ 130,000 58,500
Merita Bank Ltd.
7.15% 12/29/49 ............ 145,000 141,291(b,m)
Merrill Lynch & Co.
5.71% 01/15/02 ............ 320,000 311,824
Morgan Stanley, Dean Witter & Co.
7.125% 01/15/03 ............ 1,185,000 1,177,214
5.625% 01/20/04 ............ 75,000 70,732
Nabisco Inc.
6.70% 06/15/02 ............ 550,000 534,936
6.125% 02/01/33 ............ 140,000 133,417
Natexis AMBS Co. LLC
8.44% 12/29/49 ............ 335,000 317,309(b,m)
National Rural Utilities
Cooperative
6.046% 04/15/03 ............ 115,000 111,196
National Westminster Bank PLC
7.75% 04/29/49 ............ 265,000 264,706(m)
NB Capital Trust IV
8.25% 04/15/27 ............ 220,000 214,678
Newell Co.
6.35% 07/15/08 ............ 120,000 114,286(m)
News America Holdings Inc.
7.625% 11/30/28 ............ 200,000 183,036
Noram Energy Corp.
6.375% 11/01/03 ............ 140,000 134,674(m)
Northrop-Grumman Corp.
8.625% 10/15/04 ............ 130,000 133,516
Occidental Petroleum Corp.
7.375% 11/15/08 ............ 160,000 153,573
Ontario Province of Canada
7.375% 01/27/03 ............ 570,000 573,067
Pactiv Corp.
8.375% 04/15/27 ............ 215,000 199,834
Paramount Communications Inc.
7.50% 01/15/02 ............ 125,000 124,629
Pepsi Bottling Holdings Inc.
5.375% 02/17/04 ............ 300,000 280,893(b)
5.625% 02/17/09 ............ 135,000 120,277(b)
Pharmacia Corp.
5.75% 12/01/05 ............ 150,000 141,405
Philip Morris Cos. Inc.
7.25% 09/15/01 ............ 120,000 118,763
7.20% 02/01/07 ............ 100,000 90,457
7.65% 07/01/08 ............ 375,000 343,072
-------------
See Notes to Schedules of Investments and Financial Statements.
62
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Phillips Petroleum Co.
9.375% 02/15/11 ............ $ 170,000 $ 188,093
Pitney Bowes Credit Corp.
9.25% 06/15/08 ............ 250,000 284,300
PP&L Capital Funding Inc.
7.75% 04/15/05 ............ 185,000 183,128
Principal Financial Group
8.20% 08/15/09 ............ 150,000 152,085(b)
Procter & Gamble Co.
9.36% 01/01/21 ............ 205,000 240,016
Quebec Province of Canada
7.50% 09/15/29 ............ 235,000 236,126
Raytheon Co.
7.90% 03/01/03 ............ 250,000 250,645(b)
6.75% 08/15/07 ............ 200,000 185,972
Rohm & Haas Co.
6.95% 07/15/04 ............ 110,000 108,649
Royal & Sun Alliance Insurance
Group PLC
8.95% 10/15/29 ............ 210,000 215,004(b)
Royal Bank of Scotland Group PLC
8.817% 03/31/49 ............ 185,000 188,596
Safeway Inc.
7.50% 09/15/09 ............ 125,000 124,757
Sprint Capital Corp.
5.70% 11/15/03 ............ 570,000 539,437
6.875% 11/15/28 ............ 455,000 408,030
St. George Funding Co.
8.485% 12/31/49 ............ 200,000 180,054(b,m)
Stop & Shop Cos. Inc.
9.75% 02/01/02 ............ 80,000 81,600
SunAmerica Inc.
5.60% 07/31/97 ............ 485,000 340,402
Suntrust Bank Inc.
6.00% 01/15/28 ............ 120,000 109,388
Tele-Communications Inc.
9.80% 02/01/12 ............ 165,000 195,410
7.875% 08/01/13 ............ 120,000 123,416
Tenet Healthcare Corp.
7.875% 01/15/03 ............ 105,000 100,538
Texas Utilities Co.
5.94% 10/15/01 ............ 175,000 171,621(m)
Textron Inc.
6.375% 07/15/04 ............ 165,000 159,771
Time Warner Inc.
10.15% 05/01/12 ............ 75,000 87,150
7.57% 02/01/24 ............ 275,000 264,456
Time Warner Pass-Through
Asset Trust
6.10% 12/30/01 ............ 280,000 274,022(b)
Tosco Corp.
7.625% 05/15/06 ............ 105,000 103,977
Transamerica Capital
7.625% 11/15/37 ............ 105,000 93,278
TRW Inc.
6.625% 06/01/04 ............ 200,000 192,552
Turner Broadcasting Systems Inc.
8.375% 07/01/13 ............ 160,000 166,432
TXU Eastern Funding Co.
6.45% 05/15/05 ............ 385,000 358,962
6.75% 05/15/09 ............ 200,000 181,201
Tyco International Group S.A.
6.875% 09/05/02 ............ 500,000 491,060(b)
6.25% 06/15/03 ............ 105,000 100,152(m)
7.00% 06/15/28 ............ 135,000 117,757
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Union Carbide Corp.
6.79% 06/01/25 ............ $ 180,000 $ 173,932
Union Oil Co.
7.35% 06/15/09 ............ 200,000 193,402
United Illuminating Co.
6.25% 12/15/02 ............ 50,000 48,250
US Airways Pass-Through Trust
8.36% 07/20/20 ............ 150,000 146,548
US West Capital Funding Inc.
6.875% 08/15/01 ............ 250,000 248,465
US West Communications Inc.
5.625% 11/15/08 ............ 150,000 130,842
USA Networks Inc.
6.75% 11/15/05 ............ 165,000 158,077
USX Marathon Group
9.80% 07/01/01 ............ 120,000 122,948
Viacom Inc.
7.75% 06/01/05 ............ 250,000 251,895
Vodafone AirTouch PLC
7.625% 02/15/05 ............ 465,000 470,640(b)
Wal-Mart Stores Inc.
6.875% 08/10/09 ............ 300,000 291,864
Walt Disney Co.
5.62% 12/01/08 ............ 150,000 133,065
Westinghouse Electric Corp.
8.875% 06/01/01 ............ 75,000 76,370
Williams Cos. Inc.
6.125% 02/15/12 ............ 235,000 229,139
Yale University
7.375% 04/15/96 ............ 70,000 67,220
TOTAL CORPORATE NOTES
(COST $36,890,221) ........... 35,657,045
NON-AGENCY MORTGAGE BACKED SECURITIES -- 1.8%
Chase Commercial Mortgage
Securities Corp.
6.39% 11/18/08 ............ 714,000 664,392
Commercial Mortgage
Acceptance Corp.
6.49% 05/15/08 ............ 370,000 346,181
DLJ Commercial
Mortgage Corp.
6.24% 11/12/31 ............ 698,000 639,810
DLJ Mortgage
Acceptance Corp.
6.41% 02/15/08 ............ 462,000 435,796
First Union Lehman Brothers-
Bank of America
6.28% 06/18/07 ............ 42,404 40,665
GS Mortgage Securities Corp.
6.86% 07/13/30 ............ 207,000 201,703
Merrill Lynch Mortgage
Investors Inc.
6.39% 02/15/30 ............ 376,000 357,259
Mid State Trust
7.54% 07/01/35 ............ 47,957 45,559
Nationslink Funding Corp.
6.00% 11/20/07 ............ 143,968 136,277
TOTAL NON-AGENCY MORTGAGE
BACKED SECURITIES
(COST $3,078,273) ............ 2,867,642
-------------
See Notes to Schedules of Investments and Financial Statements.
63
<PAGE>
GE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.6%
Asset Securitization Corp.
6.50% 02/14/41 ............ $ 88,993 $ 87,706
Credit Suisse First Boston
Mortgage Securities Corp.
6.30% 11/15/08 ............ 663,000 626,431
GMAC Commercial Mortgage
Security Inc.
6.42% 08/15/08 ............ 237,000 220,715
9.55% 08/15/23 ............ 6,316,099 244,276(d,g)
JP Morgan Commercial
Mortgage Finance Corp.
7.77% 10/15/32 ............ 715,000 725,723
7.886% 10/15/32 ............ 200,000 204,164(m)
Lehman Large Loan
6.79% 06/12/04 ............ 123,495 121,869
Morgan Stanley Capital I
6.86% 05/15/06 ............ 197,233 194,036(b)
6.52% 01/15/08 ............ 79,000 74,330
6.76% 11/15/08 ............ 1,455,899 1,421,322
7.11% 07/15/09 ............ 420,000 404,906
10.25% 04/15/23 ............ 2,077,507 80,504(d,g)
6.01% 11/15/30 ............ 252,059 238,758
10.41% 11/15/31 ............ 3,905,206 178,785(b,d,g)
Norwest Asset Securities Corp.
6.25% 12/25/28 ............ 619,526 512,645
Salomon Brothers Mortgage
Securities Inc.
7.00% 07/25/24 ............ 384,362 332,701(m)
Structured Asset Securities Corp.
6.22% 02/25/28 ............ 925,252 47,419(d,g)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $5,882,124) ............ 5,716,290
TOTAL BONDS AND NOTES
(COST $150,193,542) .......... 147,347,658
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.5%
--------------------------------------------------------------------------------
CORPORATE PREFERRED -- 0.5%
Centaur Funding Corp.
(Series B), 9.08% ............ 600 619,607(b)
TCI Communications Inc., 10.00% . 4,800 122,400
TOTAL PREFERRED STOCK
(COST $782,329) .............. 742,007
TOTAL INVESTMENTS IN SECURITIES
(COST $150,975,871) .......... 148,089,665
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 14.7%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund .............. 6,604,052 6,604,052
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT -- 4.5%
Canadian Imperial
Bank of Commerce
5.97% 04/18/00 - 04/19/00 .... $7,000,000 $ 7,000,000
FEDERAL AGENCIES -- 6.0%
Federal Home Loan Bank
5.50% 04/03/00 ............ 9,370,000 9,366,851(d)
TOTAL SHORT-TERM INVESTMENTS
(COST $22,970,903) ........... 22,970,903
OTHER ASSETS AND LIABILITIES,
NET (9.3)% ................... (14,566,840)
-------------
NET ASSETS-- 100% ............... $156,493,728
============
--------------
See Notes to Schedules of Investments and Financial Statements.
64
<PAGE>
GE GOVERNMENT SECURITIES FUND
FIVE YEAR TREASURY NOTE YIELD HISTORY
4/1/99 -- 3/31/00
[LINE GRAPH OMITTED]
3/31/2000 6.341
6.47
2/29/2000 6.572
6.656
1/31/2000 6.661
6.542
12/31/99 6.335
6.099
11/30/99 6.096
5.867
10/31/99 5.974
6.024
9/30/99 5.797
5.835
8/31/99 5.909
5.916
7/31/99 5.862
5.666
6/30/99 5.678
5.928
5/31/99 5.608
5.528
4/30/99 5.123
5.063
4/1/99 5.143
HIGH 6.66%
LOW 5.06%
AVG. 5.95%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of current income
consistent with safety of principal by investing primarily in obligations
insured or guaranteed by the U.S. Government or by its agencies or
instrumentalities.
* LIPPER PERFORMANCE COMPARISON
INTERMEDIATE U.S. GOVERNMENT PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six One Five Ten
Months Year Year Year
------- ----- ----- -----
Number of Funds in peer group: 145 140 92 27
Peer group average annual total return: 1.53% 0.98% 5.88% 6.73%
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++
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
9/8/93 10000.00 9575.00 10000.00
9/93 9903.09 9482.20 10038.00
9609.14 9200.75 9702.89
9/94 9084.41 8698.33 9632.30
9365.20 8967.18 10121.71
9/95 9978.59 9554.50 10939.25
10155.47 9723.87 11180.35
9/96 10352.80 9912.81 11422.80
10601.57 10151.01 11660.57
9/97 11329.33 10847.83 12467.87
11788.54 11287.52 13076.55
9/98 12646.00 12109.00 14163.97
12481.59 11951.12 13948.63
9/99 12391.64 11862.87 13921.07
3/00 12721.27 12178.44 14296.67
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------ ----- ---------
GE Gov't Securities 2.66% 1.92% 6.32% 3.74%
GE Gov't Securities
w/load (1.69%) (2.45%) 5.39% 3.05%
(maximum load-4.25%)
LB Gov't. 2.70% 2.50% 7.15% 5.60%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
9/89 10000.00 10000.00 10000.00
9/90 11889.15 11889.15 10694.57
9/91 13518.99 13518.99 12349.74
9/92 14894.90 14894.90 13945.92
9/93 16052.28 16052.28 15491.19
9/94 14608.99 14608.99 14865.09
9/95 15962.84 15962.84 16882.04
9/96 16416.08 16416.08 17628.30
9/97 17964.52 17964.52 19241.10
9/98 20050.38 20050.38 21858.61
9/99 17851.73 17851.73 21483.76
3/00 17592.85 17592.85 22063.39
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE TEN
MONTHS YEAR YEAR YEAR
------ ------ ------ ------
GE Gov't Securities 2.22% 1.21% 5.61% 5.81%
GE Gov't Securities
w/load (0.75%) (1.64%) 5.61% 5.81%
(maximum load) 3.00% 3.00% 0.00% 0.00%
LB Gov't. 2.70% 2.50% 7.15% 7.97%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE GOV'T SECURITIES GE GOV'T SECURITIES W/LOAD LB GOV'T
10/1/99 10000.00 10000.00 10000.00
10/99 10016.12 10016.12 10016.00
11/99 10001.76 10001.76 10001.98
12/99 9951.33 9951.33 9936.96
01/00 9931.12 9931.12 9950.88
02/00 10113.31 10113.31 10092.18
03/00 10273.14 10173.87 10269.80
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Gov't Securities 2.73%
GE Gov't Securities
w/load 1.74%
(maximum load) 1.00%
LB Gov't. 2.70%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
65
<PAGE>
GE GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE GOVERNMENT SECURITIES FUND
[PIE CHART OMITTED]
FEDERAL AGENCIES 44.3%
MORTGAGE BACKED 41.3%
U.S. TREASURIES 10.6%
SHORT TERM INVESTMENTS 2.1%
ASSET BACKED & OTHER 1.7%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 100.7%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 10.6%
U.S. Treasury Bonds
8.125% 08/15/19 .......... $ 6,915,000 $ 8,407,119(h)
6.125% 08/15/29 .......... 5,464,000 5,569,018(l)
13,976,137
U.S. Treasury Notes
6.625% 04/30/02 .......... 2,500,000 2,505,075(h)
5.875% 11/15/04 .......... 10,062,000 9,879,576(h)
6.00% 08/15/09 .......... 1,597,000 1,576,782(l)
13,961,433
TOTAL U.S. TREASURIES
(COST $27,766,176) ......... 27,937,570
FEDERAL AGENCIES -- 44.3%
Federal Home Loan Mortgage Corp.
5.125% 10/15/08 .......... 2,065,000 1,796,220
Federal National Mortgage Assoc.
11.875% 5/19/00 ........... 29,000,000 29,190,240
6.625% 1/15/02 ........... 2,480,000 2,466,434(l)
7.125% 1/15/30 ........... 12,960,000 13,122,000
44,778,674
Financing Corp.
10.70% 10/06/17 .......... 28,165,000 39,813,762(h)
9.65% 11/02/18 .......... 2,020,000 2,657,553
42,471,315
Small Business Administration
8.15% 02/01/15 .......... 1,443,755 1,495,414
8.10% 03/01/15 .......... 7,220,381 7,465,197
7.60% 05/01/16 .......... 3,221,801 3,262,577
7.55% 06/01/16 .......... 6,766,632 6,837,471
7.70% 07/01/16 .......... 4,776,709 4,865,525
7.15% 03/01/17 .......... 4,188,953 4,150,336
28,076,520
TOTAL FEDERAL AGENCIES
(COST $119,452,533) ........ 117,122,729
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
AGENCY MORTGAGE BACKED -- 30.5%
Federal Home Loan Mortgage Corp.
7.50% 02/01/07 .......... $ 52,815 $ 52,900
7.50% 02/01/09 - 09/01/09 108,661 108,831
7.50% 06/01/10 - 12/01/10 3,738,263 3,742,791
7.50% 02/01/11 - 11/01/11 3,212,633 3,215,464
7.50% 01/01/12 - 07/01/12 3,157,017 3,158,973
9.00% 12/01/14 .......... 1,291,478 1,310,437
6.50% 08/01/25 - 12/01/25 5,961,477 5,627,992
6.50% 01/01/26 .......... 2,005,450 1,893,265
7.00% 12/01/26 .......... 13,886 13,404
6.50% 02/01/27 .......... 602,083 568,029
6.00% 02/01/29 - 06/01/29 3,997,835 3,640,958
7.00% 07/01/29 .......... 873,629 840,317
6.00% 08/01/29 .......... 500,050 455,355
7.00% 02/01/30 .......... 1,704,333 1,639,347
26,268,063
Federal National Mortgage Assoc.
9.00% 06/01/09 .......... 1,510,748 1,562,351
7.50% 12/01/09 .......... 1,661,577 1,661,576
7.50% 02/01/14 .......... 2,673,929 2,673,929
9.00% 04/01/16 .......... 1,416,989 1,485,146
8.00% 12/01/17 .......... 1,386,514 1,401,794
9.00% 05/01/21 - 07/01/21 923,308 953,022
7.50% 12/01/23 .......... 2,250,261 2,225,643
7.00% 12/01/29 .......... 558,595 536,950
7.00% 02/01/30 .......... 7,993,700 7,683,944
20,184,355
Government National Mortgage Assoc.
7.00% 03/15/12 .......... 3,350,362 3,309,521
9.00% 05/15/13 .......... 137,620 143,173
9.00% 07/15/16 .......... 1,663,073 1,729,596
8.50% 05/15/21 .......... 54,103 55,607
8.50% 10/15/22 .......... 7,313 7,516
8.50% 03/15/23 .......... 274,175 281,712
6.50% 05/15/23 - 12/15/23 3,761,448 3,576,911
6.50% 01/15/24 - 04/15/24 3,001,908 2,853,673
7.00% 08/15/25 - 10/15/25 9,693,992 9,421,298
7.00% 04/15/26 .......... 1,863,902 1,810,314
7.50% 05/15/27 .......... 101,343 100,615
7.50% 01/15/28 - 10/15/28 11,061,465 10,980,339
34,270,275
TOTAL AGENCY MORTGAGE BACKED
(COST $82,081,181) ......... 80,722,693
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 7.2%
Federal National Mortgage Assoc.
7.50% 01/19/39 .......... 6,228,719 6,170,325
Federal National Mortgage Assoc. REMIC
3.50% 10/25/21 .......... 14,200,000 12,345,054
5.00% 01/25/23 .......... 545,387 536,863
12,881,917
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $18,438,212) ......... 19,052,242
ASSET BACKED -- 4.5%
Arran One Ltd.
6.352% 03/15/05 .......... 200,000 200,125(m)
-------------
See Notes to Schedules of Investments and Financial Statements.
66
<PAGE>
GE GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Discover Card Master Trust I
6.094% 02/16/05 ........... $ 700,000 $ 698,467(m)
6.184% 09/18/07 ........... 3,000,000 3,002,813(m)
Ford Credit Auto Owner Trust
6.65% 10/15/03 ........... 1,700,000 1,654,304
Green Tree Financial Corp.
8.41% 12/01/30 ........... 4,000,000 3,843,720
JP Morgan Commercial
Mortgage Finance Corp.
7.77% 10/15/32 ........... 1,849,000 1,876,729
MBNA Master Card Trust II
6.29% 07/15/07 ........... 500,000 500,000(m)
TOTAL ASSET BACKED
(COST $11,955,095) .......... 11,776,158
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.6%
Norwest Asset Securities Corp.
7.25% 12/25/27 ........... 3,306,309 3,170,155
6.25% 12/25/28 ........... 2,369,712 1,960,889
NYC Mortgage Loan Trust
6.75% 06/25/06 ........... 4,544,866 4,398,578(b)
TOTAL NON-AGENCY COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $9,838,684) ........... 9,529,622
TOTAL INVESTMENTS IN SECURITIES
(COST $269,531,881) ......... 266,141,014
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.1%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $5,470,749) ........... 5,470,749 5,470,749
OTHER ASSETS AND LIABILITIES,
NET (2.8)% .................. (7,335,537)
-------------
NET ASSETS-- 100% .............. $264,276,226
=============
---------------
See Notes to Schedules of Investments and Financial Statements.
67
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
TWO YEAR TREASURY NOTE YIELD HISTORY
4/1/99 -- 3/31/00
[LINE GRAPH OMITTED]
3/31/2000 6.41
6.42
2/29/2000 6.39
6.4
1/31/2000 6.48
6.31
12/31/99 6.17
6.06
11/30/99 5.96
5.76
10/31/99 5.75
5.77
9/30/99 5.59
5.64
8/31/99 5.71
5.7
7/31/99 5.57
5.49
6/30/99 5.48
5.62
5/31/99 5.41
5.3
4/30/99 5.07
4.95
4/1/99 5.00
HIGH 6.48%
LOW 4.95%
AVG. 5.78%
INVESTMENT PROFILE
A mutual fund designed for investors who seek a high level of
income consistent with prudent investment management and the
preservation of capital by investing primarily in short-term U.S.
Government securities.
* LIPPER PERFORMANCE COMPARISON
SHORT-TERM U.S. GOVERNMENT BOND PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six One Five
Months Year Year
----- ------ --------
Number of Funds in peer group: 195 194 133
Peer group average annual total return: 1.59% 2.44% 5.37%
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+
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T GE SHORT TERM GOV'T W/LOAD LB 1-3 YR.
3/2/94 10000.00 9750.00 10000.00
9942.80 9692.40 9949.40
9/94 10052.77 9799.56 10049.50
10359.10 10098.28 10383.73
9/95 10831.26 10558.48 10872.91
11102.52 10822.98 11182.30
9/96 11370.47 11084.22 11489.66
11667.42 11373.69 11782.81
9/97 12117.11 11812.06 12281.23
12455.99 12142.41 12666.56
9/98 13009.00 12681.07 13254.70
13162.85 12831.37 13438.07
9/99 13336.61 13000.76 13677.51
3/00 13546.32 13205.18 13926.68
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
---------------------------
GE Short-Term Gov't 1.57% 2.91% 5.51% 5.12%
GE Short-Term Gov't w/load (0.96%) 0.37% 4.98% 4.68%
(maximum load-2.5%)
LB 1-3 Yr. 1.82% 3.64% 6.05% 5.59%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T GE SHORT-TERM GOV'T W/LOAD LB 1-3 YR.
3/2/94 10000.00 10000.00 10000.00
9939.30 9939.30 9949.40
9/94 10019.58 10019.58 10049.50
10285.38 10285.38 10383.73
9/95 10722.29 10722.29 10872.91
10958.27 10958.27 11182.30
9/96 11189.26 11189.26 11489.66
11447.24 11447.24 11782.81
9/97 11842.93 11842.93 12281.23
12148.34 12148.34 12666.56
9/98 12652.00 12652.00 13254.70
12763.36 12763.36 13438.07
9/99 12893.16 12893.16 13677.51
3/00 13056.96 13056.96 13926.68
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ------ ----- ----------
GE Short-Term Gov't 1.27% 2.30% 4.89% 4.48%
GE Short-Term Gov't w/load (1.70%) (0.64%) 4.89% 4.48%
(maximum load) 3.00% 3.00% 0.00% 0.00%
LB 1-3 Yr. 1.82% 3.64% 6.05% 5.59%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T GE SHORT-TERM GOV'T W/LOAD LB 1-3 YR.
9/30/99 10000.00 10000.00 10000.00
10/99 10017.14 10017.14 10027.00
11/99 10035.06 10035.06 10046.05
12/99 10037.72 10037.72 10055.09
1/00 10031.30 10031.30 10053.08
2/00 10086.24 10086.24 10121.44
3/00 10119.37 10020.48 10182.17
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Short-Term Gov't 1.19%
GE Short-Term Gov't w/load 0.20%
(maximum load) 1.00%
LB 1-3 Yr. 1.82%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE SHORT TERM GOV'T LB 1-3 YR.
3/2/94 10000.00 10000.00
9964.81 9949.40
9/94 10068.86 10049.50
10379.78 10383.73
9/95 10866.25 10872.91
11152.31 11182.30
9/96 11435.67 11489.66
11748.92 11782.81
9/97 12217.07 12281.23
12574.67 12666.56
9/98 13151.00 13254.70
13335.26 13438.07
9/99 13528.29 13677.51
3/00 13758.19 13926.68
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ---- ----- ------------
GE Short-Term Gov't 1.70% 3.17% 5.80% 5.39%
LB 1-3 Yr. 1.82% 3.64% 6.05% 5.59%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
68
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE SHORT-TERM GOVERNMENT FUND
[PIE CHART OMITTED]
FEDERAL AGENCIES 52.2%
U.S. TREASURIES 21.2%
MORTGAGE BACKED 11.3%
ASSET BACKED 7.5%
CORPORATE NOTES 3.9%
CASH & OTHER 3.9%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
BONDS AND NOTES -- 96.1%
--------------------------------------------------------------------------------
U.S. TREASURIES -- 21.2%
U.S. Treasury Notes
5.625% 09/30/01 ............ $1,380,000 $ 1,362,750(h)
5.875% 10/31/01 - 11/30/01 . 4,080,000 4,039,272(h)
6.375% 01/31/02 ............ 900,000 897,471(h)
6.50% 02/28/02 ............ 7,999,000 7,995,241(l)
6.625% 03/31/02 ............ 1,449,000 1,451,941(h)
15,746,675
TOTAL U.S. TREASURIES
(COST $15,846,315) ........... 15,746,675
FEDERAL AGENCIES -- 52.2%
Federal Home Loan Bank
6.00% 11/15/01 ............ 3,075,000 3,031,766
5.25% 04/25/02 ............ 3,360,000 3,250,800
6,282,566
Federal Home Loan Mortgage Corp.
6.25% 10/15/02 ............ 1,640,000 1,612,579
Federal National Mortgage Assoc.
6.625% 01/15/02 ............ 29,890,000 29,726,502(l)
5.75% 04/15/03 ............ 1,150,000 1,110,106
30,836,608
TOTAL FEDERAL AGENCIES
(COST $38,880,749) ........... 38,731,753
AGENCY MORTGAGE BACKED -- 9.7%
Federal Home Loan Mortgage Corp.
8.00% 08/01/03 ............ 78,343 78,598
6.00% 12/01/08 ............ 29,429 28,567(h)
107,165
Federal National Mortgage Assoc.
9.00% 08/01/10 ............ 145,819 150,787
9.00% 03/01/11 ............ 616,838 635,146
785,933
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Government National
Mortgage Assoc.
9.00% 08/15/09 - 12/15/09 . $5,637,945 $5,829,049
9.50% 12/15/09 ............ 425,007 449,444
6,278,493
TOTAL AGENCY MORTGAGE BACKED
(COST $7,246,750) ............ 7,171,591
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.9%
Federal Home Loan Mortgage Corp.
5.93% 05/17/06 ............ 168,476 167,100
6.25% 09/15/18 ............ 63,967 63,687
230,787
Federal Home Loan Mortgage
Corp. REMIC
38.05% 09/15/05 ............ 67 396(d,g)
32.54% 07/15/06 ............ 141 1,666(d,g)
2,062
Federal National Mortgage Assoc.
6.59% 09/01/02 ............ 259,012 256,502
6.53% 09/07/04 ............ 1,452 1,448(m)
6.85% 11/17/06 ............ 38,661 38,507
7.00% 06/18/20 ............ 3,377 3,366
299,823
Federal National Mortgage
Assoc. REMIC
6.167% 05/25/14 ............ 149,416 143,837(m)
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $685,151) .............. 676,509
ASSET BACKED -- 7.5%
American Express Master Trust
5.375% 07/15/01 ............ 142,000 141,157
Arran One Ltd.
6.352% 03/15/05 ............ 900,000 900,562(m)
AT&T Universal Card Master Trust
5.95% 10/17/02 ............ 260,000 259,025
California Infrastructure
6.16% 06/25/03 ............ 266,000 264,287
Capital Asset Research Funding L.P.
6.40% 12/15/04 ............ 34,546 34,136
Carco Auto Loan Master Trust
5.65% 03/15/03 ............ 266,000 262,800
Chemical Master Credit
Card Trust I
5.55% 09/15/03 ............ 350,000 346,717
Cit RV Trust
5.78% 07/15/08 ............ 260,000 252,687
Citibank Credit Card Master Trust I
5.85% 04/10/03 ............ 50,000 49,453
Discover Card Master Trust I
5.80% 09/16/03 ............ 200,000 198,000
5.75% 10/16/03 ............ 311,000 306,431
5.30% 08/15/04 ............ 311,000 300,793
5.90% 10/15/04 ............ 266,000 259,265
Ford Motor Credit Co.
5.65% 10/15/01 ............ 91,544 91,401
Green Tree Financial Corp.
Series 1993-1
6.90% 04/15/18 ............ 116,984 115,815
-------------
See Notes to Schedules of Investments and Financial Statements.
69
<PAGE>
GE SHORT-TERM GOVERNMENT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Lehman FHA Title I Loan Trust
7.30% 05/25/17 ............ $ 21,045 $ 20,844
MBNA Master Card Trust II
6.29% 07/15/07 ............ 1,500,000 1,500,000(m)
Premier Auto Trust
5.77% 01/06/02 ............ 187,724 187,255
6.27% 04/08/03 ............ 23,000 22,753
Provident Bank Home
Equity Loan Trust
6.72% 01/25/13 ............ 24,413 23,959
TOTAL ASSET BACKED
(COST $5,592,239) ............ 5,537,340
CORPORATE NOTES -- 3.9%
Bank One Corp.
6.40% 8/1/02 .............. 100,000 97,938
Carnival Corp.
5.65% 10/15/00 ............ 125,000 123,881
CIT Group Inc. (Class A)
7.375% 3/15/03 ............. 400,000 396,596
Conseco Inc.
6.40% 6/15/01 ............. 40,000 38,880(m)
Federated Department Stores Inc.
6.125% 9/1/00 .............. 120,000 118,144(m)
Fleet Credit Card LLC
6.45% 10/30/00 ............ 250,000 248,982
Kroger Co.
6.34% 6/1/01 .............. 100,000 98,495
LG&E Capital Corp.
5.75% 11/1/01 ............. 50,000 48,848(b)
MCI WorldCom Inc.
6.125% 8/15/01 ............. 50,000 49,239
Merrill Lynch & Co.
5.71% 1/15/02 ............. 125,000 121,806
Morgan Stanley, Dean
Witter & Co.
7.125% 1/15/03 ............. 150,000 149,014
Pharmacia Corp.
5.375% 12/1/01 ............. 250,000 242,690
Raytheon Co. (Class B)
7.90% 3/1/03 .............. 400,000 401,032(b)
Sprint Capital Corp.
5.70% 11/15/03 ............ 400,000 378,552
Tyco International Group S.A.
6.875% 9/5/02 .............. 100,000 98,212(b)
Tyco International Ltd.
6.50% 11/1/01 ............. 275,000 269,877
US West Capital Funding Inc.
6.875% 8/15/01 ............. 50,000 49,693
TOTAL CORPORATE NOTES
(COST $2,962,658) ............ 2,931,879
NON-AGENCY MORTGAGE BACKED SECURITIES -- 0.2%
DLJ Mortgage Acceptance Corp.
6.158% 01/08/11 ............ 9,825 9,819(b,m)
GS Mortgage Securities Corp.
6.94% 07/13/30 ............ 130,828 130,326
TOTAL NON-AGENCY MORTGAGE BACKED SECURITIES
(COST $142,615) .............. 140,145
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.5%
Asset Securitization Corp.
6.50% 2/14/41
(COST $ 354,690) ............. $351,864 $ 346,774
TOTAL INVESTMENTS IN SECURITIES
(COST $71,711,167) ........... 71,282,666
NUMBER OF
SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 26.6%
--------------------------------------------------------------------------------
GEI Short-Term
Investment Fund .............. 2,967,149 2,967,148
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 12.6%
Bear Stearns Cos. Inc.
6.01% 05/15/00 ............ $3,700,000 3,672,822
Ford Motor Credit Co.
6.03% 04/05/00 ............ 3,000,000 2,997,990
5.93% 04/06/00 ............ 2,700,000 2,697,776
9,368,588
TIME DEPOSIT -- 4.0%
Kredietbank/Cayman Island
5.968% 04/07/00 ............ 3,000,000 3,000,000
FEDERAL AGENCIES -- 6.0%
Federal National Mortgage Assoc.
5.50% 04/03/00 ............ 4,440,000 4,438,508
TOTAL SHORT-TERM INVESTMENTS
(COST $19,774,244) ........... 19,774,244
OTHER ASSETS AND LIABILITIES,
NET (22.7)% .................. (16,855,077)
------------
NET ASSETS-- 100% ............... $74,201,833
===========
---------------
See Notes to Schedules of Investments and Financial Statements.
70
<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 SIX MONTHS ENDED MARCH 31, 2000?
A. The Tax Exempt Fund had a return of 1.34% (Class A) for the six month period
ended March 31, 2000. The Lehman Brothers 10 year Municipal Index returned
2.18% and the Lipper average returned 1.38% 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 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. With the turn of the year, the
market pressure from year-end tax strategies dissipated, and our
intermediate and longer holdings benefited the portfolio with strong price
performance. Throughout the six-month period, our emphasis on call protected
high coupon securities benefited performance with greater tax-free income
than the benchmark.
Q. WHAT HAS YOUR INVESTMENT STRATEGY BEEN?
A. In the fall of 1999, we anticipated that the robust U.S. economy and high
consumer and business confidence would lead to further interest rate hikes
by the Federal Reserve, even as inflation remained contained. In this
environment, municipal yields were likely to move somewhat higher. To
protect against the price erosion of higher interest rates, we reduced the
duration of the Fund from 6.7 years to 6.4 years and increased the average
coupon from 7.82% to 8.31%. Subsequently, in February, we anticipated that
the higher yields were slowing issuance while increasing demand, and that
the municipal yield curve was likely to flatten, with longer-intermediate
maturities performing relatively well. To lock in the prevailing level of
interest rates, we modestly lengthened the duration of the Fund from 6.4
years to 6.6 years. 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
municipal yield curve, and will benefit the Fund with capital appreciation
as interest rates fall and roll down the yield curve over time. We emphasize
call-protected premium coupon bonds and like issues that are fully backed by
U.S. Government securities held in escrow by the bond trustee. These bonds
are the highest credit quality and are immune to any changes in the issuer's
economy or repayment ability. We avoid using securities that do not pass our
credit screens, that are subject to Alternative Minimum Tax, or that are
derivative securities.
Q. WHAT IS THE OUTLOOK FOR THE FUND? HOW HAVE YOU POSITIONED THE FUND GOING
FORWARD?
A. Going forward, we expect further Fed tightening designed to slow consumer
spending without bringing economic growth to a standstill. Higher rates at
the short end of the curve are likely. Once it is evident that growth is
slowing, yields are expected to fall. The portfolio is positioned with
neutral duration and above-average income so as to benefit from these
developments.
[PHOTO OF BARBARA BRINKLEY OMITTED]
71
<PAGE>
GE TAX-EXEMPT FUND
--------------------------------------------------------------------------------
QUALITY RATINGS
AT MARCH 31, 2000
--------------------------------------------------------------------------------
Percent of
Moody's/S&P Ratings** Net Assets
--------------------------------------------------------------------------------
Aaa 81.25%
--------------------------------------------------------------------------------
Aa 17.18%
--------------------------------------------------------------------------------
Baa 1.57%
--------------------------------------------------------------------------------
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 3/31/00
Six One Five
Months Year Year
------- ------- ----------
Number of
Funds in peer group: 312 304 231
Peer group average annual total return: 1.38% (0.50%) 4.70%
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++
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LB GO MUNI BOND LBMI
9/8/93 10000.00 9575.00 10000.00 10000.00
9724.93 9311.62 9710.26 9725.44
9/94 9883.82 9463.75 9917.70 9937.39
10427.05 9983.90 10446.56 10456.70
9/95 10813.77 10354.18 11087.73 11110.74
11110.74 10638.54 11372.75 11383.93
9/96 11508.82 11019.69 11626.08 11648.17
11833.68 11330.75 11966.22 11976.14
9/97 12403.79 11876.63 12753.07 12754.89
12705.81 12165.81 13221.73 13219.66
9/98 13185.00 12626.00 13903.99 13879.03
13271.20 12707.64 14062.38 14048.47
9/99 12942.30 12392.71 13827.48 13815.28
3/00 13115.78 12558.83 14122.53 14116.62
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------- ----- ------
GE Tax-Exempt 1.34% (1.17%) 4.70% 4.22%
GE Tax-Exempt w/load (2.93%) (5.39%) 3.79% 3.53%
(maximum load-4.25%)
LBMI 2.18% 0.49% 6.19% 5.39%
LB GO Muni Bond 2.13% 0.43% 6.21% 5.40%
CLASS B SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LB GO MUNI BOND LBMI
9/8/93 10000.00 10000.00 10000.00 10000.00
9682.67 9682.67 9710.26 9725.44
9/94 9826.66 9826.66 9917.70 9937.39
10366.28 10366.28 10446.56 10456.70
9/95 10759.89 10759.89 11087.73 11110.74
11045.21 11045.21 11372.75 11383.93
9/96 11450.52 11450.52 11626.08 11648.17
11763.04 11763.04 11966.22 11976.14
9/97 12305.35 12305.35 12753.07 12754.89
12573.35 12573.35 13221.73 13219.66
9/98 13000.00 13000.00 13903.99 13879.03
13052.01 13052.01 14062.38 14048.47
9/99 12695.2 12695.20 13827.48 13815.28
3/00 12817.24 12817.24 14122.53 14116.62
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------- ------- ----- --------
GE Tax-Exempt 0.96% (1.80%) 4.34% 3.85%
GE Tax-Exempt w/load (2.01%) (4.63%) 4.34% 3.85%
(maximum load) 3.00% 3.00% 0.00% 0.00%
LBMI 2.18% 0.49% 6.19% 5.39%
LB GO Muni Bond 2.13% 0.43% 6.21% 5.40%
CLASS C SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT GE TAX-EXEMPT W/LOAD LB GO MUNI BOND LBMI
9/30/99 10000.00 10000.00 10000.00 10000.00
10/99 9907.48 9907.48 9930.00 9932.00
11/99 9986.45 9986.45 10038.24 10038.27
12/99 9938.36 9938.36 9986.04 9987.08
1/00 9872.38 9872.38 9945.10 9933.65
2/00 9953.00 9953.00 10023.66 10013.12
3/00 10096.23 9997.31 10218.12 10213.38
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
--------
GE Tax-Exempt 0.96%
GE Tax-Exempt w/load (0.03%)
(maximum load) 1.00%
LBMI 2.18%
LB GO Muni Bond 2.13%
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE TAX-EXEMPT LB GO MUNI BOND LBMI
9/26/97 10000.00 10000.00 10000.00
12/97 10175.00 10254.73 10258.81
3/98 10291.00 10367.49 10364.39
6/98 10441.00 10528.43 10521.39
9/98 10744.00 10902.46 10881.35
12/98 10783.15 10974.55 10952.20
3/99 10838.44 11026.67 11014.18
6/99 10604.48 10768.28 10762.63
9/99 10596.54 10842.48 10831.36
3/00 10747.06 11073.83 11067.61
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE Tax-Exempt 1.42% (0.84%) 2.91%
LBMI 2.18% 0.49% 4.12%
LB GO Muni Bond 2.13% 0.43% 4.14%
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
72
<PAGE>
GE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE TAX-EXEMPT FUND
[PIE CHART OMITTED]
UTILITIES 31.1%
TRANSPORTATION 17.1%
WATER & SEWER 13.5%
HOUSING 8.9%
HOSPITAL 8.8%
GENERAL OBLIGATION 8.2%
EDUCATION 6.2%
LEASE & SALES TAX 5.4%
CASH & OTHER 0.8%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES -- 97.7%
--------------------------------------------------------------------------------
ARKANSAS -- 1.6%
Arkansas Housing Development
Agency Rev. - Housing
8.375% 07/01/11 .............. $315,000 $ 397,483(i)
CALIFORNIA -- 5.8%
Sacramento California Utility
Rev. - Electric Utility
9.00% 04/01/13 .............. 840,000 1,072,319(i)
San Diego California Hospital
Rev. - Health
8.875% 02/01/11 .............. 275,000 326,950(i)
1,399,269
COLORADO -- 2.8%
Colorado Springs Colorado Utility
Rev. - Electric Utility
8.50% 11/15/11 .............. 100,000 121,563(i)
Denver Colorado City & County,
Housing Finance Authority -
Housing
7.00% 08/01/10 .............. 510,000 556,293(i)
677,856
CONNECTICUT -- 7.3%
Connecticut State Health &
Educational Fac. Auth.
Rev. - Health
5.50% 07/01/12 .............. 500,000 509,745(k)
7.00% 07/01/12 .............. 765,000 835,724(i)
Connecticut State Housing
Finance Auth. Rev. - Housing
6.05% 05/15/14 .............. 410,000 413,026
1,758,495
FLORIDA -- 2.2%
Florida State Broward County G.O.
10.00% 07/01/14 .............. 235,000 332,682
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Gainesville Florida Utilities
Systems Rev. - Electric Utility
8.125% 10/01/14 .............$ 175,000 $ 202,610(i)
535,292
GEORGIA -- 3.8%
Clarke County Georgia Hospital
Auth. Rev. - Health
9.875% 01/01/06 ............. 80,000 94,889(i,k)
Columbus Georgia Medical Center
Hospital Auth. Rev. - Health
7.75% 07/01/10 ............. 305,000 347,728(i)
Metropolitan Rapid Transportation
Auth. - Transportation
7.00% 07/01/11 ............. 420,000 480,299(i)
922,916
IDAHO -- 3.5%
Idaho Falls Idaho Electric
Rev. - Electric Utility
10.375% 04/01/07 ............. 640,000 839,181(j)
ILLINOIS -- 0.2%
Chicago Illinois Motor Fuel
Tax Rev. - Sales Tax
6.50% 01/01/01 ............. 20,000 20,341(j,k)
Chicago Illinois Wastewater
Treatment Rev. - Water & Sewer
6.30% 01/01/03 ............. 20,000 21,131(j,k)
41,472
INDIANA -- 3.5%
Indiana State Toll Road Commission
Rev. - Transportation
9.00% 01/01/15 ............. 485,000 654,022(i)
Purdue University Rev. - Education
5.25% 07/01/11 ............. 200,000 200,404
854,426
IOWA -- 5.0%
Muscatine Iowa Electric Rev. -
Electric Utility
9.70% 01/01/13 ............. 935,000 1,211,779(i)
MASSACHUSETTS -- 13.1%
Massachusetts State G.O.
6.75% 08/01/09 ............. 90,000 94,199(k)
5.25% 08/01/15 ............. 750,000 731,820
Massachusetts State Port
Auth. Rev. - Trans.
13.00% 07/01/13 ............. 1,035,000 1,593,890(i)
5.50% 07/01/17 ............. 750,000 746,212
3,166,121
---------------
See Notes to Schedules of Investments and Financial Statements.
73
<PAGE>
GE TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
MICHIGAN -- 3.0%
Michigan State Hospital Finance
Auth. Rev. - Health
9.00% 05/01/08 ............ $ 595,000 $ 715,160(i)
MISSISSIPPI -- 2.6%
Mississippi State G.O.
6.20% 02/01/08 ............ 580,000 619,260(i)
MISSOURI -- 0.1%
Lees Summit Missouri Water &
Sewer Rev. - Water & Sewer
10.00% 07/01/14 ............ 20,000 20,286(j,k)
NEW JERSEY -- 4.8%
Atlantic City New Jersey
Improvement Auth. Rev. -
Lease Rev.
7.40% 03/01/12 ............ 325,000 374,078(k)
Atlantic County New Jersey
Improvement Auth. -
Lease Rev.
7.40% 07/01/16 ............ 175,000 207,097(i,k)
Delaware River Port Authority
6.50% 01/15/11 ............ 300,000 302,214(i)
New Jersey State Tpke. Auth.
Rev. - Trans.
6.50% 01/01/16 ............ 250,000 278,530(k)
1,161,919
NEW YORK -- 7.2%
Erie County New York Water Auth.
Rev. - Water & Sewer
6.00% 12/01/08 ............ 400,000 418,584(i,k)
Long Island Power Authority
New York Electric System -
Electric Utility
5.75% 12/01/24 ............ 200,000 194,212
New York State Dormitory Auth.
Rev. - Education
7.50% 05/15/11 ............ 165,000 188,849
5.20% 02/15/16 ............ 200,000 183,618
7.375% 07/01/16 ............ 640,000 744,038(i)
1,729,301
NORTH CAROLINA -- 6.2%
North Carolina Municipal Power
Rev. - Electric Utility
10.50% 01/01/10 ............ 1,175,000 1,493,777(i)
OHIO -- 2.0%
Columbus Ohio G.O.
6.00% 07/01/02 ............ 50,000 52,319(j)
Ohio State Water Development
Auth. Rev. - Water & Sewer
7.00% 12/01/09 ............ 385,000 424,986(i,k)
477,305
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
PENNSYLVANIA -- 10.1%
Allegheny County Pennsylvania
Hospital Development Rev. -
Health
7.375% 07/01/12 ............ $ 370,000 $ 420,357(i)
Philadelphia Pennsylvania School
District (Series A) - Education
5.25% 04/01/16 ............ 250,000 241,215(k)
Philadelphia Pennsylvania Water
& Wastewater Rev. -
Water & Sewer
6.25% 08/01/12 ............ 250,000 273,777(k)
Pittsburgh Pennsylvania Water &
Sewer Rev. - Water & Sewer
7.25% 09/01/14 ............ 1,055,000 1,205,907(i)
Pittsburgh Pennsylvania Water &
Sewer Systems Rev. -
Water & Sewer
6.00% 09/01/16 ............ 290,000 306,658(i,k)
2,447,914
TEXAS -- 9.1%
Houston Texas Sewer Systems
Rev. - Water & Sewer
9.375% 10/01/13 ............ 1,665,000 2,203,911(i,k)
WASHINGTON -- 0.1%
Snohomish County Washington
Public Utility Rev. - Electric Utility
6.375% 01/01/05 ............ 20,000 21,161(i)
WYOMING -- 0.4%
Lincoln County Wyoming Pollution
Control Rev. (Series A) - Energy
4.75% 11/01/14 ............ 100,000 100,000
PUERTO RICO -- 3.3%
Puerto Rico Commonwealth
Aquaduct & Sewer Rev. -
Water & Sewer
10.25% 07/01/09 ............ 640,000 801,728(i)
TOTAL INVESTMENTS IN SECURITIES
(COST $24,132,741) ........... 23,596,012
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.4%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $91,429) ............... 91,429 91,429
OTHER ASSETS AND LIABILITIES,
NET 1.9% ..................... 446,672
-----------
NET ASSETS-- 100% ............... $24,134,113
===========
----------
See Notes to Schedules of Investments and Financial Statements.
74
<PAGE>
GE HIGH YIELD FUND
Q&A
ROBERT E. ANGEVINE (PICTURED ON THE LEFT), THOMAS L. BENNETT AND STEPHEN F.
ESSER (PICTURED ON THE RIGHT) OF MILLER ANDERSON & SHERRERD, LLP ("MAS") ARE
CO-PORTFOLIO MANAGERS OF THE GE HIGH YIELD FUND. MAS, WITH $75 BILLION IN ASSETS
UNDER MANAGEMENT, IS A WHOLLY-OWNED SUBSIDIARY OF MORGAN STANLEY DEAN WITTER &
CO. AND THE FUND'S SUB-ADVISOR. MR. ANGEVINE, A PRINCIPAL AT MAS, HAS MORE THAN
18 YEARS OF INVESTMENT EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD BOND
PORTFOLIOS SINCE 1988. PRIOR TO JOINING MAS IN 1996, MR. ANGEVINE WAS EMPLOYED
BY MORGAN STANLEY & CO. INC. PAST POSITIONS INCLUDE MANAGING DIRECTOR AT
PRUDENTIAL INSURANCE, TREASURY ANALYST AT SCHERING-PLOUGH CORP., AND EUROPEAN
AMERICAN BANK. HE HOLDS A B.A. IN ECONOMICS FROM LAFAYETTE COLLEGE AND A M.B.A.
FROM FAIRLEIGH DICKINSON UNIVERSITY. MR. BENNETT, A MANAGING DIRECTOR OF MAS,
HAS MORE THAN 19 YEARS OF INVESTMENT EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD
BOND PORTFOLIOS SINCE 1989. PRIOR TO JOINING MAS IN 1984, MR. BENNETT SERVED AS
PORTFOLIO MANAGER AT E.I. DU PONT DE NEMOURS & CO. MR. BENNETT IS A CHARTERED
FINANCIAL ANALYST AND A TRUSTEE FOR THE HAVERFORD SCHOOL. HE HOLDS A B.S. IN
CHEMISTRY AND A M.B.A. FROM THE UNIVERSITY OF CINCINNATI.
MR. ESSER, A MANAGING DIRECTOR OF MAS, HAS MORE THAN 13 YEARS OF INVESTMENT
EXPERIENCE AND HAS BEEN MANAGING HIGH YIELD BOND PORTFOLIOS SINCE 1989. PRIOR TO
JOINING MAS IN 1988, MR. ESSER SERVED AS ASSISTANT VICE PRESIDENT, FIXED INCOME
GROUP AT KIDDER, PEABODY & CO. AND AS CREDIT ANALYST AT FIRST NATIONAL BANK OF
MARYLAND. MR. ESSER IS A CHARTERED FINANCIAL ANALYST AND A MEMBER OF THE NEW
YORK SOCIETY OF SECURITY ANALYSTS. HE HOLDS A B.S. (SUMMA CUM LAUDE) FROM THE
UNIVERSITY OF DELAWARE.
Q. HOW DID THE GE HIGH YIELD FUND PERFORM COMPARED TO ITS BENCHMARK FOR THE SIX
MONTHS ENDED MARCH 31, 2000?
A. The GE High Yield Fund had a return of 2.38% (Class A) for the six-months
ended March 31, 2000. The CS First Boston High Yield Index returned 0.99%
and the Lipper Average returned 1.09% for the same period.
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. Our exposure to non-U.S. issues, particularly emerging markets debt, had the
largest positive impact on our results. Emerging markets debt continued to
be the best performing fixed income asset class in the first quarter led by
Mexico's upgrade to investment grade status by Moody's. Our Mexican
corporate bonds performed very well as did our positions in Indah Kiat Pulp
and Paper, which was upgraded by Moody's to B3. Our portfolios quality
ratings were higher than the benchmark which also benefited returns as BB
securities outperformed lower rated bonds during the quarter. Our overweight
position in the telecommunication sectors also increased returns as these
sectors continued to perform better than the overall high yield market. An
underweight allocation to the energy sector detracted from returns as this
sector continued to do well due to high oil prices.
Q. WHAT SECTORS HAVE YOU LIKED?
A. We are overweight in the telecommunication sector. This sector has
tremendous growth opportunities and we are selectively picking companies
that are well positioned to take advantage of this growth. Also, we find
very good opportunities in non-U.S. Issues including European high yield and
emerging markets debt.
Q. WHAT INVESTMENTS STAND OUT?
A. Our Mexican corporate positions including TV Azteca, Grupo Iusacell and
Satelites Mexicanos have all performed very well. Mexico was upgraded to
investment grade by Moody's and this pulled all Mexican corporate bonds
higher. Also, Indah Kiat, an Indonesian paper company, was upgraded by
Moody's to B3 and the bonds moved higher in price to reflect the upgrade.
Q. WHAT IS THE OUTLOOK FOR THE FUND?
A. The High Yield market is trading at spread levels only surpassed during the
Russian crisis in 1998 and during the last U.S. recession in the early
1990's. This has occurred at the same time that the global economies
continue to expand and the default rate has stabilized. We feel that
patience will be rewarded in the current environment and the high yield
market will have better returns in the months ahead once the supply/demand
situation improves. We have positioned the Fund to take advantage of the
current environment.
[PHOTO OF ROBERT ANGEVINE AND STEPHEN F. ESSER OMITTED]
75
<PAGE>
GE HIGH YIELD FUND
--------------------------------------------------------------------------------
QUALITY RATINGS AT MARCH 31, 2000
--------------------------------------------------------------------------------
Moody's/ Percent of
S&P Ratings** Net Assets
--------------------------------------------------------------------------------
AAA 6.12%
--------------------------------------------------------------------------------
BBB 4.15%
--------------------------------------------------------------------------------
BB 23.48%
--------------------------------------------------------------------------------
B 57.43%
--------------------------------------------------------------------------------
CCC/CC 2.92%
--------------------------------------------------------------------------------
NR 2.74%
--------------------------------------------------------------------------------
Other 3.16%
--------------------------------------------------------------------------------
100.00%
** MOODY'S INVESTORS SERVICES, INC./STANDARD & POOR'S ARE NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATIONS.
INVESTMENT PROFILE
A mutual fund designed for investors who seek above-average total return over
a market cycle of three to five years, consistent with reasonable risk, by
investing primarily in high yield securities (including bonds rated below
investment grade).
* LIPPER PERFORMANCE COMPARISON
HIGH YIELD TAXABLE PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE
PERIODS ENDED 3/31/00
Six Months One Year
---------- ----------
Number of Funds in peer group: 366 349
Peer group average annual total return: 1.09% 0.06%
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+
[LINE GRAPH OMITTED]
<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 10000.00 9575.00 10000.00 10000.00
1/99 10058.16 9630.69 10149.80 10106.00
2/99 10012.08 9586.57 10064.54 10092.86
3/99 10188.53 9755.52 10149.59 10190.76
4/99 10371.84 9931.04 10362.12 10392.54
5/99 10087.45 9658.74 10199.43 10284.46
6/99 10100.18 9670.93 10177.00 10281.37
7/99 10097.44 9668.3 10199.38 10293.71
8/99 10039.37 9612.7 10078.01 10213.42
9/99 10053.27 9629.57 9928.86 10153.16
10/99 10121.73 9695.15 9933.41 10116.61
11/99 10316.40 9881.61 10089.36 10252.17
12/99 10435.42 9995.61 10174.11 10387.50
1/00 10353.71 9917.34 10089.67 10340.76
2/00 10440.10 10000.10 10113.88 10407.97
3/00 10292.04 9858.27 9908.57 10253.93
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ --------
GE High Yield Fund 2.38% 1.02% 2.33%
GE High Yield Fund
w/load (1.95%) (3.32%) (1.13%)
(maximum load-4.25%)
CS First Boston High Yield 0.99% 0.62% 2.03%
Salomon High Yield (0.93%) (2.37%) (0.73%)
CLASS B SHARES
[LINE GRAPH OMITTED]
<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 10000.00 10000.00 10000.00 10000.00
1/99 10052.40 10052.40 10149.80 10106.00
2/99 10000.51 10000.51 10064.54 10092.86
3/99 10170.37 10170.37 10149.59 10190.76
4/99 10357.18 10357.18 10362.12 10392.54
5/99 10066.96 10066.96 10199.43 10284.46
6/99 10073.53 10073.53 10177.00 10281.37
7/99 10064.55 10064.55 10199.38 10293.71
8/99 9989.60 9989.60 10078.01 10213.42
9/99 9997.31 9997.31 9928.86 10153.16
10/99 10059.09 10059.09 9933.41 10116.61
11/99 10246.52 10246.52 10089.36 10252.17
12/99 10358.14 10358.14 10174.11 10387.50
1/00 10281.12 10281.12 10089.67 10340.76
2/00 10350.12 10350.12 10113.88 10407.97
3/00 10197.03 9916.23 9908.57 10253.93
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ------ ---------
GE High Yield Fund 2.00% 0.26% 1.57%
GE High Yield Fund
w/load (0.95%) (2.54%) (0.67%)
(maximum load) 3.00% 3.00% 3.00%
CS First Boston High Yield 0.99% 0.62% 2.03%
Salomon High Yield (0.93%) (2.37%) (0.73%)
CLASS C SHARES
[LINE GRAPH OMITTED]
<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 10000.00 10000.00 10000.00 10000.00
10/99 10061.90 10061.90 9932.00 9964.00
11/99 10249.16 10249.16 10087.93 10097.52
12/99 10371.49 10371.49 10172.67 10230.8
01/00 10283.70 10283.70 10088.24 10184.77
02/00 10363.03 10363.03 10112.45 10250.97
03/00 10198.54 10100.32 9907.17 10099.25
</TABLE>
AVERAGE ANNUAL
TOTAL RETURN
SINCE
INCEPTION
-------
GE High Yield Fund 1.99%
GE High Yield Fund
w/load 1.00%
(maximum load-4.25%) 1.00%
CS First Boston High Yield 0.99%
Salomon High Yield (0.93%)
CLASS Y SHARES
[LINE GRAPH OMITTED]
GE HIGH YIELD FUND SALOMON HIGH YIELD CS FIRST BOSTON HIGH YIELD
12/31/98 10000.00 10000.00 10000.00
1/99 10060.13 10149.80 10106.00
2/99 10015.94 10064.54 10092.86
3/99 10194.62 10149.59 10190.76
4/99 10390.34 10362.12 10392.54
5/99 10107.88 10199.43 10284.46
6/99 10122.75 10177.00 10281.37
7/99 10122.31 10199.38 10293.71
8/99 10055.40 10078.01 10213.42
9/99 10071.41 9928.86 10153.16
10/99 10142.30 9933.41 10116.61
11/99 10339.45 10089.36 10252.17
12/99 10460.96 10174.11 10387.50
1/00 10392.06 10089.67 10340.76
2/00 10469.92 10113.88 10407.97
3/00 10323.74 9908.57 10253.93
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE SINCE
MONTHS YEAR INCEPTION
------ ----- ---------
GE High Yield Fund 2.51% 1.27% 2.58%
CS First Boston High Yield 0.99% 0.62% 2.03%
Salomon High Yield (0.93%) (2.37%) (0.73%)
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
76
<PAGE>
GE HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE HIGH YIELD FUND
[PIE CHART OMITTED]
COMMUNICATIONS 29.2%
SOVEREIGN AND EMERGING MARKETS 13.0%
CONSUMER 13.1%
INDUSTRIAL 11.7%
CASH & OTHER 10.1%
HEALTHCARE 6.9%
RETAIL 3.4%
CABLE 3.2%
ENERGY 2.8%
BASIC MATERIALS 2.8%
REAL ESTATE 0.6%
UTILITIES 1.4%
AUTOMOTIVE 0.7%
FINANCIAL 1.1%
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES -- 90.7%
--------------------------------------------------------------------------------
AUTOMOTIVE -- 0.7%
Tenneco Automotive Inc.
11.625% 10/15/09
(COST $237,791) ............ $235,000 $ 230,300
CABLE -- 3.2%
CSC Holdings Inc.
7.25% 07/15/08 ............. 260,000 243,095
NTL Inc. (Series B)
10.75% 04/01/08 ............. 425,000 446,584(d)
Rogers Cablesystems Ltd.
10.125% 09/01/12 ............. 320,000 334,400
TOTAL CABLE
(COST $1,099,404) ............. 1,024,079
CHEMICALS -- 0.7%
ISP Holdings Inc. (Series B)
9.00% 10/15/03
(COST $241,555) ............ 235,000 216,200
COMMUNICATIONS -- 29.2%
Adelphia Communications Corp.
8.375% 02/01/08 ............. 125,000 111,250
7.75% 01/15/09 ............. 400,000 340,000
9.375% 11/15/09 ............. 650,000 609,375
AMSC Acquisition Co. Inc.
12.25% 04/01/08 ............. 140,000 109,200
Cellco Finance N.V. Turkcell
12.75% 08/01/05 ............. 110,000 115,500(b)
Centennial Cellular Corp.
10.75% 12/15/08 ............. 250,000 251,250
Charter Communications Holdings
10.25% 01/15/10 ............. 475,000 457,781(b)
Dolphin Telecom PLC
19.53% 05/15/09 ............. 425,000 163,625(d)
EchoStar DBS Corp.
9.375% 02/01/09 ............. 290,000 281,300
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Esprit Telecom Group PLC
11.00% 06/15/08 ............. $550,000 $ 249,078
Global Crossings Holdings Ltd.
9.625% 05/15/08 ............. 605,000 583,825
Globalstar LP/Capital
11.375% 02/15/04 ............. 260,000 91,000
Globix Corp.
12.50% 02/01/10 ............. 180,000 165,600(b)
GT Group Telecom Inc.
12.95% 02/01/10 ............. 235,000 129,250(b,d)
Hermes Europe Railtel BV
11.50% 08/15/07 ............. 195,000 183,300
Hyperion Telecommunications
Inc. (Series B)
10.99% 04/15/03 ............. 230,000 209,875(d)
Intermedia Communications Inc.
11.25% 07/15/07 ............. 200,000 156,000
8.60% 06/01/08 ............. 500,000 441,250
Iridium LLC/Capital Corp.
(Series A)
13.00% 07/15/05 ............. 225,000 4,500(n)
Metromedia Fiber Network Inc.
10.00% 12/15/09 ............. 200,000 189,116
Nextel Communications Inc.
11.63% 09/15/07 ............. 175,000 127,750(d)
11.60% 02/15/08 ............. 1,125,000 765,000(d)
Nextlink Communications Inc.
10.75% 11/15/08 ............. 325,000 312,812
Primus Telecommunications
Group
11.25% 01/15/09 ............. 300,000 276,375
PSINet Inc. (Series B)
10.00% 02/15/05 ............. 150,000 142,500
11.00% 08/01/09 ............. 175,000 170,625
PTC International
Finance II S.A.
11.25% 12/01/09 ............. 150,000 153,328
RCN Corp. (Series B)
12.96% 10/15/07 ............. 510,000 326,400(d)
Rhythms Netconnections
18.34% 05/15/08 ............. 375,000 183,750(d)
14.00% 02/15/10 ............. 50,000 44,500(b)
RSL Communications PLC
9.125% 03/01/08 ............. 250,000 198,750
15.20% 03/01/08 ............. 500,000 270,000(d)
12.00% 11/01/08 ............. 275,000 251,625
Tele1 Europe BV
13.00% 05/15/09 ............. 155,000 158,068
Tele1 Europe Holding AB ADR ...... 2,912 53,328(a)
Viatel Inc.
15.27% 04/15/08 ............. 325,000 188,500(d)
Voicestream Wire Co.
10.375% 11/15/09 ............. 65,000 65,000(b)
Wam Net Inc. (Series A)
21.43% 03/01/05 ............. 250,000 140,000(d)
Winstar Communications Inc.
14.75% 04/15/10 ............. 850,000 396,312(b)
XM Satellite Radio Inc. (Class A)
14.00% 03/15/10 ............. 150,000 144,375
TOTAL COMMUNICATIONS
(COST $9,885,568) ............. 9,211,073
--------------
See Notes to Schedules of Investments and Financial Statements.
77
<PAGE>
GE HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
ENERGY -- 2.8%
CMS Energy Corp.
7.50% 01/15/09 .............. $355,000 $ 312,686(h)
Husky Oil Ltd.
8.90% 08/15/28 .............. 115,000 108,388
Synder Oil Corp.
8.75% 06/15/07 .............. 225,000 218,250
Vintage Petroleum Inc.
8.625% 02/01/09 .............. 35,000 32,900
9.75% 06/30/09 .............. 195,000 195,487
TOTAL ENERGY
(COST $904,913) ................ 867,711
FINANCIAL -- 1.1%
Golden State Holdings
7.125% 08/01/05
(COST $335,927) ................ 375,000 332,773
FOOD AND BEVERAGES -- 0.9%
Smithfield Foods Inc.
7.625% 02/15/08
(COST $308,091) ................ 325,000 282,750
GAMING -- 6.6%
Harrahs Operating Co. Inc.
7.875% 12/15/05 .............. 550,000 507,375(h)
Horseshoe Gaming Holding
8.625% 05/15/09 .............. 300,000 274,500
International Game Technology
8.375% 05/15/09 .............. 420,000 382,504
Park Place Entertainment Corp.
7.875% 12/15/05 .............. 180,000 165,600
8.50% 11/15/06 .............. 225,000 218,250
Station Casinos Inc.
10.125% 03/15/06 .............. 400,000 402,000
8.875% 12/01/08 .............. 125,000 116,250
TOTAL GAMING
(COST $2,198,575) .............. 2,066,479
GENERAL INDUSTRIAL -- 10.6%
Applied Power Inc.
8.75% 04/01/09 .............. 100,000 102,250
Axia Inc.
10.75% 07/15/08 .............. 200,000 154,000(h)
Hayes Lemmerz International Inc.
8.25% 12/15/08 .............. 525,000 442,312
Huntsman ICI Chemicals LLC
10.125% 07/01/09 .............. 125,000 124,182
10.125% 07/01/09 .............. 230,000 221,950(b)
Lyondell Chemical Co. (Series A)
9.625% 05/01/07 .............. 225,000 213,750
National Steel Corp. (Series A)
9.875% 03/01/09 .............. 210,000 205,800
Norcal Waste Systems Inc.
13.50% 11/15/05 .............. 295,000 306,800
Nortek Inc. (Series B)
8.875% 08/01/08 .............. 490,000 442,225
Sequa Corp.
9.00% 08/01/09 .............. 135,000 124,875
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
Stater Brothers Holdings Inc.
10.75% 08/15/06 .............. $170,000 $ 170,000
Tembec Industries Inc.
8.625% 06/30/09 .............. 95,000 90,488
USA Waste Services Inc.
7.125% 10/01/07 .............. 375,000 327,463
7.125% 12/15/17 .............. 50,000 39,836
Waste Management Inc.
6.875% 05/15/00 .............. 75,000 63,117
7.00% 10/15/06 .............. 250,000 220,296
7.65% 03/15/11 .............. 120,000 104,492
TOTAL GENERAL INDUSTRIAL
(COST $3,555,166) .............. 3,353,836
HEALTHCARE -- 6.9%
Columbia/HCA Healthcare
6.91% 06/15/05 .............. 875,000 795,821(h)
7.00% 07/01/07 .............. 115,000 102,200
7.58% 09/15/25 .............. 100,000 81,928
Fresenius Medical Capital Trust II
9.00% 12/01/06 .............. 300,000 282,000
7.875% 02/01/08 .............. 165,000 146,850
Tenet Healthcare Corp.
8.625% 01/15/07 .............. 810,000 765,450
TOTAL HEALTHCARE
(COST $2,310,936) .............. 2,174,249
HOTELS/LODGING/RESTAURANTS -- 2.8%
Hilton Hotels Corp.
7.95% 04/15/07 .............. 255,000 235,897
HMH Properties (Series A)
7.875% 08/01/05 .............. 525,000 464,625(h)
Host Marriott Travel Plazas
Inc. (Series B)
9.50% 05/15/05 .............. 175,000 179,813
TOTAL HOTELS/LODGING/RESTAURANTS
(COST $941,981) ................ 880,335
MEDIA AND ENTERTAINMENT -- 2.8%
Chancellor Media Corp.
9.00% 10/01/08
(COST $916,202) ................ 875,000 879,375(h)
METALS -- 2.1%
Algoma Steel Inc.
12.375% 07/15/05 .............. 110,000 106,150
Impress Metal Packaging Holdings
9.875% 05/29/07 .............. 365,000 174,232
Murrin Murrin Holdings Ltd.
9.375% 08/31/07 .............. 425,000 374,000
TOTAL METALS
(COST $699,851) ................ 654,382
----------------
See Notes to Schedules of Investments and Financial Statements.
78
<PAGE>
GE HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
PACKAGING -- 1.1%
Norampac Inc.
9.50% 02/01/08 ............. $210,000 $ 205,800
South Dakota Warren Co.
14.00% 12/15/06 ............. 130,000 143,325
TOTAL PACKAGING
(COST $362,485) ............... 349,125
REAL ESTATE / BUILDING -- 0.6%
D.R. Horton Inc.
8.00% 02/01/09
(COST $219,184) ............ 220,000 182,050
RETAIL -- 3.4%
Dillon Read Structured
Finance (Class A)
6.66% 08/15/10 ............. 244,342 209,297
DR Structured Finance Corp.
8.375% 08/15/15 ............. 200,000 173,376
HMV Media Group PLC
10.25% 05/15/08 ............. 400,000 304,000
Musicland Group Inc.
9.00% 06/15/03 ............. 300,000 261,000
9.875% 03/15/08 ............. 150,000 123,000
TOTAL RETAIL
(COST $1,267,976) ............. 1,070,673
SOVEREIGN AND EMERGING MARKETS -- 13.0%
Bayan Telecommunications
13.50% 07/15/06 ............. 250,000 211,250(b)
CTI Holdings S.A.
12.91% 04/15/08 ............. 400,000 260,000(d)
Federal Republic of Brazil
12.75% 01/15/20 ............. 190,000 188,420
Glencore Nickel Property Ltd.
9.00% 12/01/14 ............. 60,000 51,000
Grupo Elektra S.A de CV
12.00% 04/01/08 ............. 155,000 150,738(b)
Indah Kiat Finance Mauritius
10.00% 07/01/07 ............. 575,000 411,125
Maxcom Telecomunicaciones
13.75% 04/01/07 ............. 225,000 230,063(b)
Multicanal S.A. (Series E)
13.125% 04/15/09 ............. 220,000 232,408
Netia Holdings II BV
13.50% 06/15/09 ............. 175,000 174,693
Nuevo Grupo Iusacell S.A.
14.25% 12/01/06 ............. 210,000 230,475(b)
Occidente Y Caribe Celular S.A.
(Series B)
24.58% 03/15/04 ............. 275,000 173,250(d)
Pacifica Papers Inc.
10.00% 03/15/09 ............. 295,000 289,837
Republic of Columbia
9.75% 04/23/09 ............. 135,000 119,969
Republic of Philippines
10.625% 03/16/25 ............. 155,000 154,377
Satelites Mexicanos S.A. de CV
10.125% 11/01/04 ............. 150,000 123,000
Telewest Communications PLC
11.78% 04/15/09 ............. 450,000 420,016(d)
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
TV Azteca S.A. (Series B)
10.50% 02/15/07 ............. $325,000 $ 312,000
United Pan-Europe
Communications NV
10.875% 08/01/09 ............. 375,000 352,500
TOTAL SOVEREIGN AND EMERGING MARKETS
(COST $3,953,125) ............. 4,085,121
TECHNOLOGY -- 0.8%
Hyundai Semiconductor
8.25% 05/15/04 ............. 100,000 91,590(b)
8.625% 05/15/07 ............. 150,000 134,872(b)
Republic Tech/RTI Capital
13.75% 07/15/09 ............. 100,000 25,000(b)
Republic Technologies
International LLC
13.75% 07/15/09 ............. 35,000 8,750
TOTAL TECHNOLOGY
(COST $314,341) ............... 260,212
UTILITIES -- 1.4%
AES Corp.
8.50% 11/01/07 ............. 325,000 283,562
Paiton Energy Funding BV
9.34% 02/15/14 ............. 350,000 70,875(b)
Ras Laffan Liquefied Natural Gas
8.294% 03/15/14 ............. 100,000 96,469(b)
TOTAL UTILITIES
(COST $482,285) ............... 450,906
TOTAL CORPORATE BONDS AND NOTES
(COST $30,235,356) ............ 28,571,629
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
PREFERRED STOCK -- 2.9%
--------------------------------------------------------------------------------
Concentric Network Corp.,
(Series B), 13.50% ............ 118 119,984(a)
Dobson Communications
Corp., 13.00% ................. 153 162,580
IXC Communications Inc.
(Series B), 12.50% ............ 265 280,693
Kmart Financing I, 7.75% ......... 4,950 212,231
Nextel Communications Inc.
(Series D), 13.00% ............ 35 35,525
Paxson Communications
Corp., 13.25% ................. 11 115,396(a)
TOTAL PREFERRED STOCK
(COST $829,523) ............... 926,409
----------------
See Notes to Schedules of Investments and Financial Statements.
79
<PAGE>
GE HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
NUMBER
OF SHARES VALUE
--------------------------------------------------------------------------------
WARRANTS -- 0.1%
--------------------------------------------------------------------------------
Globalstar Telecom, 02/15/04 ........ 900 $ 3,150(a,b)
Occidente Y Caribe Celular S.A.,
(Class D) 03/15/04 ............... 14,600 21,900(a,b)
Republic Technologies
International Inc. 07/15/09 ...... 135 1(a,b)
Wam Net Inc., 03/01/05 .............. 5,250 5,775(a,b)
TOTAL WARRANTS
(COST $41,057) ................... 30,826
TOTAL INVESTMENTS IN SECURITIES
(COST $31,105,936) ............... 29,528,864
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 6.5%
--------------------------------------------------------------------------------
GEI Short-Term Investment Fund
(COST $2,036,304) ..............2,036,304 2,036,304
OTHER ASSETS AND LIABILITIES,
NET (0.2)% ..................... (67,995)
NET ASSETS-- 100% ................. $31,497,173
===========
FORWARD FOREIGN CURRENCY CONTRACTS
--------------------------------------------------------------------------------
At March 31, 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 50,000 USD $ 45,148 04/28/00 $ 47,969 $ (179)
GBP 40,000 USD $ 63,528 05/03/00 $ 63,694 $ 166
--------- --------
$ 111,663 $ (13)
--------- --------
SALES
EUR 175,000 USD $176,617 04/26/00 $ 167,868 $ 8,749
EUR 75,000 USD $ 75,718 04/26/00 $ 71,943 $ 3,775
EUR 150,000 USD $149,190 04/28/00 $ 143,907 $ 5,283
EUR 370,000 USD $368,156 04/28/00 $ 354,971 $ 13,185
EUR 190,000 USD $189,677 05/10/00 $ 182,431 $ 7,246
EUR 130,000 USD $126,152 05/10/00 $ 124,822 $ 1,330
EUR 310,000 USD $296,918 06/30/00 $ 298,698 $ (1,780)
GBP 145,000 USD $228,738 05/02/00 $ 230,892 $ (2,154)
GBP 310,000 USD $500,960 05/03/00 $ 493,633 $ 7,327
GBP 105,000 USD $165,653 05/03/00 $ 167,198 $ (1,545)
GBP 35,000 USD $ 56,525 05/10/00 $ 55,734 $ 791
--------- -------
$2,292,097 $42,207
--------- -------
NET UNREALIZED APPRECIATION $42,194
-------
-------
---------------
See Notes to Schedules of Investments and Financial Statements.
80
<PAGE>
GE MONEY MARKET FUND
INVESTMENT PROFILE
Amutual fund designed for investors who seek a high level of current
income consistent with the preservation of capital and maintenance of
liquidity by investing primarily in short-term, U.S. dollar-denominated
money market instruments.
* LIPPER PERFORMANCE COMPARISON
MONEY MARKET PEER GROUP
BASED ON AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 3/31/00
Six One Five
Months Year Year
------- --------- --------
Number of Funds in peer group: 368 351 233
Peer group average annual total return: 2.50% 4.72% 4.93%
Lipper categories in peer group: MONEY MARKET
*SEE NOTES TO PERFORMANCE FOR EXPLANATION OF PEER CATEGORIES
SEE NOTES TO PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
[LINE GRAPH OMITTED]
GE MONEY MARKET FUND 90 DAY T-BILL
2/22/93 10000.00 10000.00
10000.00 10000.00
10028.72 10024.74
10094.88 10099.91
9/93 10164.21 10176.55
10236.25 10255.35
10307.06 10339.42
10392.39 10443.81
9/94 10500.20 10562.06
10627.61 10702.77
10778.38 10857.68
10928.54 11011.20
9/95 11079.32 11160.37
11227.98 11308.52
11369.71 11449.21
11509.01 11594.04
9/96 11653.48 11743.11
11800.27 11890.81
11944.97 12042.37
12096.32 12195.67
9/97 12252.89 12350.52
12412.02 12508.93
12570.34 12668.16
12730.09 12825.77
9/98 12894.00 12977.48
13048.79 13120.03
13193.90 13266.58
13338.95 13418.61
9/99 13497.68 13579.08
13674.89 13753.90
3/00 13860.47 13950.13
AVERAGE ANNUAL
TOTAL RETURN
SIX ONE FIVE SINCE
MONTHS YEAR YEAR INCEPTION
------ ---- ------ -----------
GE Money Market 2.69% 5.05% 5.16% 4.70%
90 Day T-Bill 2.73% 5.15% 5.14% 4.80%
FUND YIELD
--------------------------------------------------------------------------------
FUND IBC MONEY FUND
---- --------------
7 day current 5.47%+ 5.38%
7 day effective 5.62% 5.53%
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 MARCH 31, 2000.
--------------------------------------------------------------------------------
ROBERT MACDOUGALL LEADS A TEAM OF MANAGERS FOR THE GE MONEY MARKET FUND (PLEASE
REFER TO PAGE 56 FOR BOB'S BIOGRAPHICAL DETAILS AND AN ANALYSIS OF THE FIXED
INCOME MARKETS).
Q. HOW DID THE GE MONEY MARKET FUND'S BENCHMARK AND LIPPER PEER GROUP PERFORM
FOR THE SIX MONTHS ENDED MARCH 31, 2000?
A. The 90-day U.S. Treasury Bill returned 2.73% while the average return for
the 368 Money Market funds tracked by Lipper was 2.50%.
Q. WHAT WERE THE KEY-DRIVERS OF FUND PERFORMANCE?
A. As the Federal Reserve continued raising short term interest rates during
the period, performance was enhanced by keeping the average maturity
relatively short. This allowed reinvestment at higher levels as interest
rates rose.
81
<PAGE>
GE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
GE MONEY MARKET FUND
[PIE CHART OMITTED]
COMMERICAL PAPER 42.5%
YANKEE CERTIFICATES OF DEPOSITS & OTHER 29.1%
U.S. GOVERNMENTS 23.9%
TIME DEPOSITS 4.5%
PRINCIPAL AMORTIZED
AMOUNT COST
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 101.0%
--------------------------------------------------------------------------------
U.S. GOVERNMENTS -- 23.9%
U.S. TREASURIES
U.S. Treasury Notes
6.25% 05/31/00 .......... $ 2,630,000 $ 2,632,751
5.875% 06/30/00 .......... 2,630,000 2,631,690
5,264,441
U.S. AGENCIES (D)
Federal Home Loan Bank
5.843% 04/12/00 .......... 5,500,000 5,490,614
6.138% 04/24/00 .......... 4,000,000 3,984,897
5.738% 05/05/00 .......... 5,630,000 5,600,808
15,076,319
Federal Home Loan Mortgage Corp.
6.065% 06/01/00 .......... 10,000,000 9,900,282
6.145% 06/08/00 .......... 9,500,000 9,393,051
19,293,333
Federal National Mortgage Assoc.
5.848% 04/10/00 .......... 5,200,000 5,192,733
5.713% 04/17/00 .......... 1,370,000 1,366,662
6.038% 06/01/00 .......... 9,000,000 8,910,711
15,470,106
TOTAL U.S. GOVERNMENTS
(COST $55,104,199) ......... 55,104,199
COMMERCIAL PAPER -- 42.5%
Abbey National PLC
6.085% 07/06/00 .......... 9,250,000 9,099,903
Bank of America
5.91% 04/11/00 .......... 9,000,000 9,000,000
Citibank Capital Market
5.89% 04/24/00 .......... 9,000,000 8,966,132
Credit Suisse
5.85% 04/25/00 .......... 9,000,000 8,964,900
PRINCIPAL AMORTIZED
AMOUNT COST
--------------------------------------------------------------------------------
Deutsche Bank Fina
5.82% 04/06/00 .......... $9,000,000 $ 8,992,725
Goldman Sachs Group LP
5.90% 05/08/00 .......... 8,020,000 7,971,368
Halifax Building Society
5.87% 05/02/00 .......... 9,120,000 9,073,901
Merrill Lynch & Co. Inc.
5.91% 05/01/00 .......... 9,000,000 8,955,675
Morgan (J.P.) & Co. Inc.
5.88% 04/28/00 .......... 9,000,000 8,960,310
Morgan Stanley Group Inc.
5.90% 05/01/00 .......... 9,000,000 8,955,750
UBS Finance Delaware Inc.
6.25% 04/03/00 .......... 1,810,000 1,809,372
Wells Fargo & Co.
5.80% 04/03/00 .......... 7,260,000 7,257,661
TOTAL COMMERCIAL PAPER
(COST $98,007,697) ......... 98,007,697
YANKEE CERTIFICATES OF DEPOSIT -- 30.1%
ABN AMRO
5.85% 04/04/00 .......... 9,000,000 9,000,000
Bank of Montreal
5.90% 04/28/00 .......... 9,000,000 9,000,000
Bank of Nova Scotia
6.18% 06/29/00 .......... 6,180,000 6,180,000
Bayerische Vereinsbank AG
5.99% 05/08/00 .......... 9,000,000 9,000,000
Canadian Imperial Bank
of Commerce
6.03% 04/20/00 .......... 9,190,000 9,190,000
Dresdner Bank AG
6.02% 04/20/00 .......... 9,190,000 9,160,801
Societe Generale
6.00% 06/01/00 .......... 9,000,000 9,000,000
Toronto-Dominion Bank
5.91% 04/18/00 .......... 9,000,000 9,000,000
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(COST $69,530,801) ......... 69,530,801
TIME DEPOSIT -- 4.5%
Royal Bank of Canada
6.281% 04/03/00
(COST $10,500,000) ......... 10,500,000 10,500,000
TOTAL SHORT-TERM INVESTMENTS
(COST $233,142,697) ........ 233,142,697
OTHER ASSETS AND LIABILITIES,
NET (1.0)% ................. (2,312,869)
------------
NET ASSETS-- 100% ............. $230,829,828
============
--------------
See Notes to Schedules of Investments and Financial Statements.
82
<PAGE>
NOTES TO PERFORMANCE MARCH 31, 2000 (UNAUDITED)
Total returns take into account changes in share price and assume reinvestment
of dividends and capital gains, if any. Investment returns and net asset value
on an investment will fluctuate and you may have a gain or loss when you sell
your shares. Classes A and B are shown both without the imposition of the sales
charge and also assuming the deduction of the current maximum applicable sales
charges as described in Note 1 of the Notes to Financial Statements. Periods
less than one year are not annualized.
The performance data relating to Class A and B shares of GE Mid-Cap Growth Fund,
GE Value Equity Fund, GE Tax-Exempt Fund and GE Government Securities Fund, for
all periods except the year ended September 30, 1999 and the year ended
September 30, 1998, reflect the prior performance and expense ratios (adjusted
to reflect GE Funds current sales charges) of Investors Trust Growth Fund,
Investors Trust Value Fund, Investors Trust Tax Free Fund and Investors Trust
Government Fund respectively, each a series of Investors Trust (collectively,
the "Investors Trust Funds"), the assets of which were acquired by the
corresponding GE Fund on September 26, 1997 (the "Merger Date"). Because the
Investors Trust Funds did not offer Class Y shares, performance data relating to
the Class Y shares of GE Mid-Cap Growth Fund, GE Value Equity Fund, and GE
Tax-Exempt Fund is limited to the period from the Merger Date to March 31, 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 400
MidCap Composite Price Index of stocks (S&P MidCap 400), the Russell 2000 Index
(Russell 2000), the Morgan Stanley Capital International World Index (MSCI
World), the Morgan Stanley Capital International Europe, Australasia, Far East
Index (MSCI EAFE), the Morgan Stanley Capital International Europe Index, (MSCI
Europe), the Morgan Stanley Capital International Emerging Markets Free Index
(MSCI EMF), the Lehman Brothers Aggregate Bond Index (LB Aggregate), the Lehman
Brothers Government Bond Index (LB Gov't) Lehman Brothers 1-3 Year Government
Bond Index (LB 1-3), the Lehman Brothers 10-Year Municipal Index (LBMI) and the
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 smallest
companies in the Russell 3000 Index, which represents approximately 10% of the
total market capitalization of the Russell 3000 Index. This measures the
performance of the 3000 largest U.S. companies based on total market
capitalization, which represents approximately 98% of the investable U.S. equity
market. MSCI World is a composite of 1,393 securities traded in 22 developed
markets of the world. MSCI EAFE is a composite of 989 foreign securities traded
in 20 developed markets representing Europe, Australasia and Far East. MSCI
Europe is a composite of securities traded in 15 developed markets in Europe.
MSCI EMF is a composite of securities available to non-domestic investors traded
in 25 emerging markets. LB 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 six-month period ended
March 31, 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 March 31, 2000 and therefore are
calculated from the month end nearest to the funds' commencement of operation
date.
The peer universe of funds used in our peer ranking calculation is based on the
blend of Lipper peer categories, as shown. This blend is the same as the
category blend used by the Wall Street Journal (except for the GE Strategic
Investment Fund for which we use the specific Lipper peer group and the GE Money
Market Fund, which is not in the Wall Street Journal). The actual number of
funds and numerical rankings in the Lipper and Wall Street Journal universes
could differ since the Wall Street Journal excludes certain funds which do not
meet their net asset or number of shareholder publication thresholds. A Fund's
performance may be compared to or ranked within a universe of mutual funds with
investment objectives and policies similar but not necessarily identical to the
Fund's. Such comparisons or rankings are made on the basis of several factors,
including the Fund's objectives and policies, management style and strategy, and
portfolio composition, and may change over time if any of those factors change.
Lipper is an independent mutual fund rating service.
The views expressed in this document reflect our judgment as of the publication
date and are subject to change at any time without notice. The securities cited
may not represent current or future holdings and should not be considered as a
recommendation to purchase or sell a particular security. They were cited solely
for illustrative purposes. See the prospectus for complete descriptions of
investment objectives, policies, risks and permissible investments.
+ Returns are those of the predecessor Class C, which was combined with Class A
as of the close of business on September 17, 1999. The Average Annual Total
Return figures for Class A with load have been adjusted to reflect Class A sales
charges. See Footnote 10 in the Notes to the Financial Statements.
++ Effective as of the close of business on September 17, 1999, the distribution
and service fees were reduced on Class A shares. See Footnote 10 in the Notes to
the Financial Statements. Had the distribution and service fees not been
reduced, the Class A performance results would have been lower.
83
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 2000 (UNAUDITED)
(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 March 31, 2000, these securities amounted to
$446,650; $650,320; $112,621; $1,429,709; $3,197,379; $5,194,866;
$4,398,578; $557,911 and $2,868,051 or 0.5%, 0.8%, 0.7%, 4.5%, 1.5%, 3.3%,
1.7%, 0.8%, and 9.1% of net assets for the Global Equity, International
Equity, Europe Equity, Emerging Markets, Strategic Investment, Fixed Income,
Government, Short-Term Government and High Yield Funds, respectively. These
securities have been determined to be liquid using guidelines established by
the Board of Trustees.
(c) Settlement is on a delayed delivery or when-issued basis with final maturity
to be announced (TBA) in the future.
(d) Coupon amount represents effective yield.
(e) State Street Corp. is the parent company of State Street Bank & Trust Co.,
the fund's custodian.
(f) Principal only securities represent the right to receive the monthly
principal payments on an underlying pool of mortgages. No payments of
interest on the pool are passed through to the "principal only" holder.
(g) Interest only securities represent the right to receive the monthly interest
payments on an underlying pool of mortgages. Payments of principal on the
pool reduce the value of the interest only holding.
(h) At March 31, 2000, all or a portion of this security was pledged to cover
collateral requirements for futures, options and TBA's.
(i) Escrowed to maturity. Bonds which are collateralized by U.S. Treasury
securities which are held in escrow by a trustee and used to pay principal
and interest on such bonds.
(j) Prerefunded. Bonds which are collateralized by U.S. Treasury securities
which are held in escrow and are used to pay principal and interest on the
tax-exempt issue and to retire the bonds at the earliest refunding date.
(k) The security is insured by AMBAC, MBIA or FGIC. The GE Tax-Exempt Fund had
insurance concentrations of 5% or greater as of March 31, 2000 (as a
percentage of net assets) as follows:
FGIC 1.4%
MBIA 1.5%
AMBAC 6.9%
(l) All or a portion of security out on loan.
(m) Variable or floating rate security. The stated rate represents the rate at
March 31, 2000
(n) At March 31, 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.
(o) At March 31, 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.
ABBREVIATIONS:
ADR -- American Depository Receipt
AMBAC -- AMBAC Indemnity Corporation
FGIC -- Financial Guarantee Insurance Corporation
GDR -- Global Depository Receipt
G.O. -- General Obligation
MBIA -- Municipal Bond Investors Assurance Corporation
Regd. -- Registered
REMIC -- Real Estate Mortgage Investment Conduit
SDR -- Special Drawing Rights
STRIPS -- Separate Trading of Registered Interest and Principal of Security
84
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
<TABLE>
<CAPTION>
GE U.S. EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
--------------------------------------------------------------------------------------------------------------
<S> <C> <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 $16.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.08 0.18 0.27 0.30 0.36 0.37
Net realized and unrealized
gains (losses) on investments ....... 4.29 7.26 1.22 8.19 3.30 3.86
--------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................... 4.37 7.44 1.49 8.49 3.66 4.23
--------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.14 0.23 0.24 0.32 0.35 0.29
Net realized gains ................... 3.72 2.50 2.43 2.19 0.27 0.09
--------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 3.86 2.73 2.67 2.51 0.62 0.38
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $33.04 $32.53 $27.82 $29.00 $23.02 $19.98
--------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 14.13% 27.79% 5.62% 39.76% 18.70% 26.86%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $388,332 $311,958 $124,714 $97,886 $50,035 $26,007
Ratios to average net assets:
Net investment income (loss)* ....... 0.50% 0.56% 0.92% 1.18% 1.66% 2.12%
Net expenses* ....................... 0.83% 0.81% 0.75% 0.75% 0.75% 0.75%
Gross expenses* ..................... 0.83% 0.83% 0.84% 0.93% 1.06% 1.19%
Portfolio turnover rate .............. 26% 46% 29% 38% 49% 43%
--------------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ... $31.58 $27.11 $28.35 $22.57 $19.71 $16.03
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.04) (0.06) 0.05 0.11 0.19 0.21
Net realized and unrealized
gains (losses) on investments ....... 4.16 7.08 1.20 8.03 3.25 3.84
------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................... 4.12 7.02 1.25 8.14 3.44 4.05
------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- 0.05 0.06 0.17 0.31 0.28
Net realized gains ................... 3.72 2.50 2.43 2.19 0.27 0.09
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 3.72 2.55 2.49 2.36 0.58 0.37
------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $31.98 $31.58 $27.11 $28.35 $22.57 $19.71
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 13.71% 26.83% 4.80% 38.75% 17.78% 25.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $47,323 $36,921 $21,407 $14,380 $7,194 $1,563
Ratios to average net assets:
Net investment income (loss)* ....... (0.25%) (0.19%) 0.17% 0.44% 0.90% 1.29%
Net expenses* ....................... 1.58% 1.56% 1.50% 1.50% 1.50% 1.50%
Gross expenses* ..................... 1.58% 1.58% 1.63% 1.88% 2.08% 3.50%
Portfolio turnover rate .............. 26% 46% 29% 38% 49% 43%
------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95
---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- -- 11/29/93
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $31.58 $32.48 $27.78 $28.99 $23.03 $19.98 $16.16
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.04) 0.12 0.26 0.34 0.37 0.40 0.38
Net realized and unrealized
gains (losses) on investments ....... 4.15 4.27 7.25 1.21 8.19 3.31 3.88
---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................ 4.11 4.39 7.51 1.55 8.56 3.71 4.26
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.21 0.23 0.31 0.33 0.41 0.39 0.35
Net realized gains ................... 3.72 3.72 2.50 2.43 2.19 0.27 0.09
---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 3.93 3.95 2.81 2.76 2.60 0.66 0.44
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $31.76 $32.92 $32.48 $27.78 $28.99 $23.03 $19.98
---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 13.72% 14.25% 28.14% 5.86% 40.16% 18.97% 27.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,333 $392,990 $358,583 $281,071 $212,957 $144,470 $128,247
Ratios to average net assets:
Net investment income (loss)* ....... (0.29%) 0.74% 0.81% 1.16% 1.45% 1.90% 2.36%
Net expenses* ....................... 1.58% 0.58% 0.56% 0.50% 0.50% 0.50% 0.50%
Gross expenses* ..................... 1.58% 0.58% 0.58% 0.56% 0.52% 0.59% 0.71%
Portfolio turnover rate .............. 26% 26% 46% 29% 38% 49% 43%
</TABLE>
---------------
See Notes to Schedules of Investments and Financial Statements.
85
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE PREMIER GROWTH EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B)
------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- 12/31/96 -- -- -- 12/31/96
<S> <C> <C> <C> <C> <C> <C> <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) ......... (0.04) (0.08) 0.03 -- (0.15) (0.27) (0.12) (0.09)
Net realized and unrealized
gains (losses) on investments ....... 6.86 7.83 2.38 3.35 6.71 7.73 2.36 3.34
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 6.82 7.75 2.41 3.35 6.56 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 ......... $33.17 $27.50 $20.44 $18.35 $32.41 $27.00 $20.20 $18.25
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 25.37% 38.54% 13.35% 22.33% 24.87% 37.53% 12.47% 21.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $114,164 $67,311 $15,044 $7,287 $36,796 $15,501 $2,076 $447
Ratios to average net assets:
Net investment income (loss)* ....... (0.26%) (0.29%) 0.17% (0.03%) (1.00%) (1.03%) (0.62%) (0.76%)
Net expenses* ....................... 1.03% 1.10% 1.12% 1.15% 1.78% 1.84% 1.90% 1.90%
Gross expenses* ..................... 1.03% 1.10% 1.16% 1.62% 1.78% 1.84% 2.27% 9.30%
Portfolio turnover rate .............. 11% 26% 35% 17% 11% 26% 35% 17%
</TABLE>
<TABLE>
<CAPTION>
CLASS C (LEVEL LOAD)
3/31/00(B)
-------------------------------------------------------------
INCEPTION DATE 9/30/99
<S> <C>
Net asset value, beginning of period .... $27.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... (0.15)
Net realized and unrealized
gains (losses) on investments ........ 6.71
-------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................... 6.56
-------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. --
Net realized gains .................... 1.15
-------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... --
-------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $32.41
-------------------------------------------------------------
TOTAL RETURN (A) ........................ 24.82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $2,483
Ratios to average net assets:
Net investment income (loss)* ........ (1.01%)
Net expenses* ........................ 1.77%
Gross expenses* ...................... 1.77%
Portfolio turnover rate ............... 11%
</TABLE>
<TABLE>
<CAPTION>
CLASS Y(D)
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B)
------------------------------------------------------------------------------------------------------
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) -- (0.01) 0.09 0.04
Net realized and unrealized
gains (losses) on investments 6.89 7.84 2.37 3.34
------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 6.89 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 $33.34 $27.60 $20.50 $18.38
------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) 25.49% 38.92% 13.65% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $24,145 $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* 0.78% 0.85% 0.88% 0.90%
Gross expenses* 0.78% 0.85% 0.89% 1.17%
Portfolio turnover rate 11% 26% 35% 17%
</TABLE>
----------------
See Notes to Schedules of Investments and Financial Statements.
86
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE VALUE EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
----------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $12.18 $9.93 $13.58 $10.83 $8.95 $7.51
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.03 0.02 0.05 0.07 0.05 0.14
Net realized and unrealized
gains (losses) on investments ....... 1.53 2.66 0.46 3.59 1.99 1.45
----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................ 1.56 2.68 0.51 3.66 2.04 1.59
----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- 0.03 -- 0.04 0.09 0.15
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 0.15
----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $12.96 $12.18 $9.93 $13.58 $10.83 $8.95
----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 13.10% 27.34% 5.86% 36.18% 23.10% 21.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ...................... $36,773 $29,607 $14,276 $8,236 $5,833 $4,083
Ratios to average net assets:
Net investment income (loss)* ...... 0.43% 0.18% 0.50% 0.63% 1.03% 1.71%
Net expenses* ...................... 1.06% 1.29% 1.31% 1.30% 1.35% 1.35%
Gross expenses* .................... 1.06% 1.30% 1.33% 1.33% 1.73% 2.43%
Portfolio turnover rate .............. 24% 31% 40% 131% 100% 27%
----------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
---------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period ... $11.94 $9.77 $13.48 $10.79 $8.93 $7.50
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.02) (0.04) -- (0.01) 0.04 0.07
Net realized and unrealized
gains (losses) on investments ....... 1.50 2.61 0.45 3.57 1.93 1.45
---------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................ 1.48 2.57 0.45 3.56 1.97 1.52
---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- -- -- 0.04 0.09
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 0.09
---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $12.64 $11.94 $9.77 $13.48 $10.79 $8.93
---------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 12.67% 26.67% 5.32% 35.23% 22.30% 20.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ...................... $52,707 $51,369 $44,655 $46,035 $33,318 $14,450
Ratios to average net assets:
Net investment income (loss)* ...... (0.31%) (0.32%) 0.00% (0.12%) 0.23% 0.94%
Net expenses* ...................... 1.81% 1.81% 1.81% 2.05% 2.10% 2.10%
Gross expenses* .................... 1.81% 1.82% 1.81% 2.07% 2.40% 3.18%
Portfolio turnover rate .............. 24% 31% 40% 131% 100% 27%
---------------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B)
------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- 1/5/98
Net asset value, beginning of period .... $11.94 $12.74 $10.38 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............ (0.02) 0.04 0.08 0.08
Net realized and unrealized
gains (losses) on investments ........ 1.51 1.62 2.76 0.30
------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................. 1.49 1.66 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 .......... $12.65 $13.62 $12.74 $10.38
------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 12.76% 13.31% 27.85% 3.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $609 $3,316 $2,292 $1,580
Ratios to average net assets:
Net investment income (loss)* ....... (0.37%) 0.65% 0.68% 0.98%
Net expenses* ....................... 1.81% 0.81% 0.81% 0.81%
Gross expenses* ..................... 1.81% 0.81% 0.82% 0.81%
Portfolio turnover rate ............... 24% 24% 31% 40%
</TABLE>
-------------
See Notes to Schedules of Investments and Financial Statements.
87
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE MID-CAP GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
---------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $9.42 $8.27 $17.61 $13.16 $11.38 $8.81
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........ -- (0.04) (0.04) (0.07) -- 0.01
Net realized and unrealized
gains (losses) on investments ...... 3.18 1.19 (1.86) 4.52 1.78 2.56
---------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 3.18 1.15 (1.90) 4.45 1.78 2.57
---------------------------------------------------------------------------------------------------------
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 ........ $12.60 $9.42 $8.27 $17.61 $13.16 $11.38
---------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ...................... 33.76% 13.91% (16.11%) 33.81% 15.64% 29.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ..................... $20,591 $15,943 $10,134 $10,885 $8,222 $5,986
Ratios to average net assets:
Net investment income (loss)* ...... 0.03% (0.41%) (0.35%) (0.51%) 0.03% 0.10%
Net expenses* ...................... 1.15% 1.38% 1.40% 1.31% 1.35% 1.35%
Gross expenses* .................... 1.26% 1.46% 1.45% 1.46% 1.70% 2.44%
Portfolio turnover rate ............. 10% 48% 13% 139% 41% 74%
---------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
--------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period .. $8.84 $7.80 $17.11 $12.87 $11.21 $8.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........ (0.04) (0.08) (0.08) (0.18) (0.09) (0.05)
Net realized and unrealized
gains (losses) on investments ...... 2.98 1.12 (1.79) 4.42 1.75 2.52
--------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 2.94 1.04 (1.87) 4.24 1.66 2.47
--------------------------------------------------------------------------------------------------------
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 ........ $11.78 $8.84 $7.80 $17.11 $12.87 $11.21
--------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ...................... 33.26% 13.33% (16.62%) 33.02% 14.81% 28.26%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ..................... $20,284 $18,073 $22,038 $32,280 $27,616 $14,311
Ratios to average net assets:
Net investment income (loss)* ...... (0.73%) (0.91%) (0.86%) (1.26%) (0.73%) (0.66%)
Net expenses* ...................... 1.90% 1.90% 1.90% 2.06% 2.10% 2.10%
Gross expenses* .................... 2.01% 1.97% 1.93% 2.21% 2.41% 3.19%
Portfolio turnover rate ............. 10% 48% 13% 139% 41% 74%
--------------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B)
------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- 1/5/98
Net asset value, beginning of period .... $8.84 $9.98 $8.71 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... (0.04) 0.01 0.01 0.01
Net realized and unrealized
gains (losses) on investments ........ 2.98 3.38 1.26 (1.30)
------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 2.94 3.39 1.27 (1.29)
------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. -- -- -- --
Net realized gains .................... -- -- -- --
Return of capital ..................... -- -- -- --
------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... -- -- -- --
------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $11.78 $13.37 $9.98 $8.71
------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 33.26% 33.97% 14.58% (12.90%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $107 $4 $783 $471
Ratios to average net assets:
Net investment income (loss)* ....... (0.72%) 0.26% 0.09% 0.21%
Net expenses* ....................... 1.90% 0.90% 0.90% 0.89%
Gross expenses* ..................... 2.01% 1.01% 0.97% 0.89%
Portfolio turnover rate ............... 10% 10% 48% 13%
</TABLE>
------------
See Notes to Schedules of Investments and Financial Statements.
88
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE MID-CAP VALUE EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 9/30/99(B,C) 3/31/00(B) 9/30/99(B) 3/31/00(B) 3/31/00(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 ........ $9.83 $10.00 $9.77 $10.00 $9.77 $9.84 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .............. 0.03 0.04 -- (0.02) (0.01) 0.05 0.06
Net realized and unrealized
gains (losses) on investments ............ 0.87 (0.21) 0.86 (0.21) 0.87 0.87 (0.22)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.90 (0.17) 0.86 (0.23) 0.86 0.92 (0.16)
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ..................... 0.07 -- 0.02 -- 0.08 0.09 --
Net realized gains ........................ -- -- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ......................... 0.07 -- 0.02 -- 0.08 0.09 --
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .............. $10.66 $9.83 $10.61 $9.77 $10.55 $10.67 $9.84
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................ 9.16% (1.70%) 8.82% (2.30%) 8.83% 9.33% (1.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .. $1,724 $708 $175 $177 $286 $11,046 $10,103
Ratios to average net assets:
Net investment income (loss)* ............ 0.69% 0.47% (0.06%) (0.21%) (0.13%) 0.94% 0.79%
Net expenses* ............................ 1.15% 1.15% 1.90% 1.90% 1.90% 0.90% 0.90%
Gross expenses* .......................... 1.36% 1.54% 2.11% 2.38% 2.10% 1.11% 1.36%
Portfolio turnover rate ................... 20% 17% 20% 17% 20% 20% 17%
GE SMALL-CAP VALUE EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 9/30/99(B,C) 3/31/00(B) 9/30/99(B) 3/31/00(B) 3/31/00(B) 9/30/99(B)
------------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 9/30/98 -- 9/30/98 9/30/99 -- 9/30/98
Net asset value, beginning of period .......... $12.16 $10.00 $12.09 $10.00 $12.09 $12.18 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................ (0.01) (0.02) (0.05) (0.06) (0.06) 0.02 0.05
Net realized and unrealized
gains (losses) on investments ........... 3.38 2.24 3.35 2.19 3.36 3.38 2.19
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 3.37 2.22 3.30 2.13 3.30 3.40 2.24
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ....................... -- 0.03 -- 0.01 -- -- 0.03
Net realized gains .......................... 1.66 0.03 1.66 0.03 1.66 1.66 0.03
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... 1.66 0.06 1.66 0.04 1.66 1.66 0.06
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................ $13.87 $12.16 $13.73 $12.09 $13.73 $13.92 $12.18
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .............................. 30.33% 22.28% 29.79% 21.37% 29.79% 30.45% 22.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $27,909 $14,561 $11,403 $8,505 $100 $10,067 $293
Ratios to average net assets:
Net investment income (loss)* .............. (0.11%) (0.15%) (0.86%) (0.56%) (0.90%) 0.30% 0.41%
Net expenses* .............................. 1.13% 1.15% 1.88% 1.90% 1.87% 0.83% 0.90%
Gross expenses* ............................ 1.14% 1.41% 1.90% 2.19% 1.89% 0.84% 1.17%
Portfolio turnover rate ..................... 119% 182% 119% 182% 119% 119% 182%
</TABLE>
----------------
See Notes to Schedules of Investments and Financial Statements.
89
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE GLOBAL EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $25.86 $19.72 $24.81 $22.18 $20.31 $19.40
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.07) 0.06 0.05 0.04 0.06 0.09
Net realized and unrealized
gains (losses) on investments ..... 6.48 7.05 (2.65) 3.94 2.22 1.30
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 6.41 7.11 (2.60) 3.98 2.28 1.39
---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- 0.02 0.06 0.04 0.09
Net realized gains ................... 2.32 0.97 2.47 1.29 0.37 0.39
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 2.32 0.97 2.49 1.35 0.41 0.48
---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $29.95 $25.86 $19.72 $24.81 $22.18 $20.31
---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 26.11% 36.89% (10.86%) 18.82% 11.44% 7.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $53,444 $39,245 $28,412 $35,120 $28,682 $23,683
Ratios to average net assets:
Net investment income (loss)* ....... (0.49%) 0.23% 0.22% 0.24% 0.33% 0.59%
Net expenses* ....................... 1.32% 1.35% 1.34% 1.35% 1.35% 1.35%
Gross expenses* ..................... 1.32% 1.37% 1.35% 1.45% 1.60% 1.42%
Portfolio turnover rate .............. 47% 64% 71% 70% 46% 46%
---------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ... $24.92 $19.17 $24.32 $21.87 $20.14 $19.32
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 ..... 6.21 6.84 (2.57) 3.82 2.14 1.23
----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 6.05 6.72 (2.68) 3.74 2.10 1.23
----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- -- -- -- 0.02
Net realized gains ................... 2.32 0.97 2.47 1.29 0.37 0.39
----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 2.32 0.97 2.47 1.29 0.37 0.41
----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $28.65 $24.92 $19.17 $24.32 $21.87 $20.14
----------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 25.62% 35.85% (11.44%) 17.92% 10.61% 6.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $2,394 $1,477 $989 $877 $600 $356
Ratios to average net assets:
Net investment income (loss)* ....... (1.22%) (0.51%) (0.48%) (0.52%) (0.34%) (0.11%)
Net expenses* ....................... 2.07% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ..................... 2.07% 2.12% 2.45% 3.33% 3.50% 3.50%
Portfolio turnover rate .............. 47% 64% 71% 70% 46% 46%
----------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- -- 11/29/93
Net asset value, beginning of period .. $24.92 $25.84 $19.72 $24.83 $22.25 $20.37 $19.45
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........ (0.16) (0.03) 0.12 0.09 0.10 0.13 0.13
Net realized and unrealized
gains (losses) on investments .... 6.21 6.47 7.04 (2.63) 3.94 2.21 1.31
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ......................... 6.05 6.44 7.16 (2.54) 4.04 2.34 1.44
--------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............... -- -- 0.07 0.10 0.17 0.09 0.13
Net realized gains .................. 2.32 2.32 0.97 2.47 1.29 0.37 0.39
--------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................... 2.32 2.32 1.04 2.57 1.46 0.46 0.52
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........ $28.65 $29.96 $25.84 $19.72 $24.83 $22.25 $20.37
--------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ...................... 25.62% 26.25% 37.20% (10.59%) 19.14% 11.71% 7.76%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................... $138 $33,275 $23,086 $15,039 $22,642 $10,123 $9,785
Ratios to average net assets:
Net investment income (loss)* ...... (1.22%) (0.24%) 0.50% 0.37% 0.48% 0.56% 0.84%
Net expenses* ...................... 2.07% 1.07% 1.10% 1.07% 1.10% 1.10% 1.10%
Gross expenses* .................... 2.07% 1.07% 1.12% 1.07% 1.10% 1.12% 1.75%
Portfolio turnover rate ............. 47% 47% 64% 71% 70% 46% 46%
</TABLE>
-----------
See Notes to Schedules of Investments and Financial Statements.
90
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE INTERNATIONAL EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
--------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $18.33 $15.11 $20.36 $17.65 $15.88 $15.19
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.05) 0.05 0.09 0.05 0.11 0.12
Net realized and unrealized
gains (losses) on investments ..... 4.67 3.74 (1.60) 3.19 1.72 0.65
--------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............... 4.62 3.79 (1.51) 3.24 1.83 0.77
--------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- -- 0.03 0.06 0.08
Net realized gains ................... 0.99 0.57 3.74 0.50 -- --
--------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.99 0.57 3.74 0.53 0.06 0.08
--------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $21.96 $18.33 $15.11 $20.36 $17.65 $15.88
--------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 26.06% 25.48% (8.71%) 18.79% 11.54% 5.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $42,945 $32,938 $6,114 $6,152 $3,230 $1,262
Ratios to average net assets:
Net investment income (loss)* ....... (0.52%) 0.29% 0.50% 0.45% 0.68% 0.83%
Net expenses* ....................... 1.34% 1.35% 1.35% 1.35% 1.35% 1.35%
Gross expenses* ..................... 1.34% 1.39% 1.42% 1.58% 1.96% 2.75%
Portfolio turnover rate .............. 5% 51% 93% 51% 36% 27%
--------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
-------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ... $17.66 $14.68 $20.02 $17.47 $15.77 $15.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.12) (0.07) (0.05) (0.06) 0.05 0.01
Net realized and unrealized
gains (losses) on investments ..... 4.48 3.62 (1.55) 3.11 1.65 0.64
-------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............... 4.36 3.55 (1.60) 3.05 1.70 0.65
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- -- -- -- 0.01
Net realized gains ................... 0.99 0.57 3.74 0.50 -- --
-------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.99 0.57 3.74 0.50 -- 0.01
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $21.03 $17.66 $14.68 $20.02 $17.47 $15.77
-------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 25.56% 24.56% (9.39%) 17.86% 10.78% 4.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $2,179 $1,488 $948 $455 $272 $57
Ratios to average net assets:
Net investment income (loss)* ....... (1.25%) (0.40%) (0.26%) (0.30%) 0.28% 0.10%
Net expenses* ....................... 2.09% 2.10% 2.10% 2.10% 2.10% 2.10%
Gross expenses* ..................... 2.09% 2.14% 2.59% 4.12% 3.50% 3.50%
Portfolio turnover rate .............. 5% 51% 93% 51% 36% 27%
-------------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96(B) 9/30/95
--------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- -- 3/2/94
Net asset value, beginning of period .. $17.66 $18.44 $15.18 $20.43 $17.76 $15.94 $15.22
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........ (0.12) (0.02) 0.11 0.01 0.13 0.17 0.12
Net realized and unrealized
gains (losses) on investments .... 4.49 4.70 3.73 (1.46) 3.18 1.73 0.70
--------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS .............. 4.37 4.68 3.84 (1.45) 3.31 1.90 0.82
--------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ............... -- -- 0.01 0.06 0.14 0.08 0.10
Net realized gains .................. 0.99 0.99 0.57 3.74 0.50 -- --
--------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ................... 0.99 0.99 0.58 3.80 0.64 0.08 0.10
--------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........ $21.04 $22.13 $18.44 $15.18 $20.43 $17.76 $15.94
--------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ...................... 25.62% 26.23% 25.72% (8.34%) 19.16% 11.97% 5.45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ................... $227 $41,252 $21,952 $15,367 $75,098 $63,225 $32,907
Ratios to average net assets:
Net investment income (loss)* ...... (1.17%) (0.15%) 0.60% 0.08% 0.76% 0.99% 0.97%
Net expenses* ...................... 2.09% 1.09% 1.10% 1.04% 1.01% 1.03% 1.07%
Gross expenses* .................... 2.09% 1.09% 1.14% 1.06% 1.01% 1.03% 1.18%
Portfolio turnover rate ............. 5% 5% 51% 93% 51% 36% 27%
</TABLE>
------------
See Notes to Schedules of Investments and Financial Statements.
91
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE EUROPE EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 9/30/99(B,C) 3/31/00(B) 9/30/99(B) 3/31/00(B) 3/31/00(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) ................ (0.03) 0.06 (0.07) 0.02 (0.07) (0.01) 0.09
Net realized and unrealized
gains (losses) on investments ........... 4.56 (0.13) 4.54 (0.14) 4.52 4.56 (0.15)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 4.53 (0.07) 4.47 (0.12) 4.45 4.55 (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 ................ $14.39 $9.93 $14.33 $9.88 $14.27 $14.41 $9.94
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) .............................. 45.78% (0.70%) 45.25% (1.20%) 45.26% 46.02% (0.60%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) .... $1,964 $669 $334 $144 $174 $14,754 $10,051
Ratios to average net assets:
Net investment income (loss)* .............. (0.40%) 0.88% (1.16%) 0.24% (1.08%) (0.21%) 1.36%
Net expenses* .............................. 1.39% 1.45% 2.15% 2.20% 2.14% 1.15% 1.20%
Gross expenses* ............................ 1.55% 1.91% 2.31% 2.69% 2.30% 1.31% 1.71%
Portfolio turnover rate ..................... 47% 47% 47% 47% 47% 47% 47%
------------------------------------------------------------------------------------------------------------------------------------
GE EMERGING MARKETS FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 9/30/99(B,C) 3/31/00(B) 9/30/99(B) 3/31/00(B) 3/31/00(B) 9/30/99(B)
----------------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- 1/29/99 -- 1/29/99 9/30/99 -- 1/29/99
Net asset value, beginning of period ... $13.47 $10.00 $13.40 $10.00 $13.50 $13.49 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... (0.05) (0.05) (0.13) (0.10) (0.12) (0.04) (0.01)
Net realized and unrealized
gains (losses) on investments .... 7.82 3.52 7.79 3.50 7.67 7.85 3.50
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 7.77 3.47 7.66 3.40 7.55 7.81 3.49
----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ -- -- -- -- -- -- --
Net realized gains ................... 1.09 -- 1.09 -- 1.09 1.09 --
----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 1.09 -- 1.09 -- 1.09 1.09 --
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $20.15 $13.47 $19.97 $13.40 $19.96 $20.21 $13.49
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 60.08% 34.70% 59.54% 34.00% 58.28% 60.29% 34.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $7,812 $900 $576 $225 $146 $23,458 $13,651
Ratios to average net assets:
Net investment income (loss)* ....... (0.55%) (0.56%) (1.39%) (1.26%) (1.34%) (0.43%) (0.18%)
Net expenses* ....................... 1.45% 1.60% 2.21% 2.35% 2.21% 1.22% 1.35%
Gross expenses* ..................... 1.60% 1.90% 2.36% 2.71% 2.36% 1.37% 1.74%
Portfolio turnover rate .............. 23% 59% 23% 59% 23% 23% 59%
</TABLE>
------------
See Notes to Schedules of Investments and Financial Statements.
92
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE STRATEGIC INVESTMENT FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
--------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $25.04 $24.15 $24.11 $20.38 $18.46 $15.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.28 0.55 0.61 0.59 0.54 0.53
Net realized and unrealized
gains (losses) on investments .... 2.88 2.98 0.73 3.88 1.92 2.59
--------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............... 3.16 3.53 1.34 4.47 2.46 3.12
--------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.50 0.56 0.52 0.49 0.46 0.38
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 0.38
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $26.69 $25.04 $24.15 $24.11 $20.38 $18.46
--------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 13.06% 15.28% 5.88% 22.45% 13.58% 20.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $120,901 $107,034 $49,540 $40,516 $26,467 $17,821
Ratios to average net assets:
Net investment income (loss)* ....... 2.19% 2.17% 2.49% 2.66% 2.81% 3.21%
Net expenses* ....................... 0.85% 0.87% 0.85% 0.90% 0.90% 0.90%
Gross expenses* ..................... 0.85% 0.87% 0.85% 0.94% 1.05% 1.03%
Portfolio turnover rate .............. 57% 109% 119% 106% 93% 98%
--------------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95(B)
-----------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period .... $24.45 $23.65 $23.70 $20.04 $18.26 $15.62
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... 0.18 0.35 0.42 0.42 0.41 0.40
Net realized and unrealized
gains (losses) on investments ..... 2.81 2.93 0.69 3.82 1.87 2.58
-----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ................ 2.99 3.28 1.11 4.24 2.28 2.98
-----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. 0.37 0.40 0.38 0.33 0.42 0.34
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 0.34
-----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $26.06 $24.45 $23.65 $23.70 $20.04 $18.26
-----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 12.64% 14.44% 4.91% 21.57% 12.73% 19.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ..................... $19,610 $16,372 $11,158 $5,685 $3,701 $882
Ratios to average net assets:
Net investment income (loss)* ........ 1.44% 1.44% 1.72% 1.92% 2.11% 2.46%
Net expenses* ........................ 1.60% 1.62% 1.63% 1.65% 1.65% 1.65%
Gross expenses* ...................... 1.60% 1.62% 1.63% 1.93% 2.10% 3.50%
Portfolio turnover rate ............... 57% 109% 119% 106% 93% 98%
-----------------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(B) 9/30/96(B) 9/30/95
---------------------------------------------------------------------------------------------------------------------
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 $15.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.19 0.31 0.61 0.67 0.64 0.63 0.55
Net realized and unrealized
gains (losses) on investments ..... 2.75 2.88 2.99 0.72 3.89 1.90 2.62
---------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 2.94 3.19 3.60 1.39 4.53 2.53 3.17
---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.54 0.57 0.62 0.57 0.56 0.50 0.42
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 0.42
---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $25.84 $26.71 $25.10 $24.20 $24.16 $20.44 $18.49
---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 12.46% 13.22% 15.56% 6.10% 22.76% 13.95% 20.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $2,051 $67,695 $62,714 $51,802 37,924 $36,162 $18,665
Ratios to average net assets:
Net investment income (loss)* ....... 1.56% 2.44% 2.41% 2.70% 2.90% 3.16% 3.46%
Net expenses* ....................... 1.60% 0.60% 0.62% 0.64% 0.65% 0.58% 0.65%
Gross expenses* ..................... 1.60% 0.60% 0.62% 0.64% 0.65% 0.59% 0.97%
Portfolio turnover rate .............. 57% 57% 109% 119% 106% 93% 98%
</TABLE>
---------------
See Notes to Schedules of Investments and Financial Statements.
93
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE FIXED INCOME FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $11.76 $12.55 $12.06 $11.70 $11.92 $11.27
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.34 0.64 0.68 0.72 0.69 0.73
Net realized and unrealized
gains (losses) on investments ..... (0.14) (0.79) 0.50 0.35 (0.21) 0.67
----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................... 0.20 (0.15) 1.18 1.07 0.48 1.40
----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.35 0.64 0.67 0.71 0.70 0.75
Net realized gains ................... -- -- -- -- -- --
In excess of net investment income ... -- -- 0.02 -- -- --
----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.35 0.64 0.69 0.71 0.70 0.75
----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.61 $11.76 $12.55 $12.06 $11.70 $11.92
----------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 1.65% (1.20%) 10.06% 9.45% 4.10% 12.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $93,282 $92,217 $49,736 $35,097 28,115 $21,401
Ratios to average net assets:
Net investment income (loss)* ....... 5.93% 5.27% 5.53% 6.17% 5.84% 6.37%
Net expenses* ....................... 0.81% 0.80% 0.80% 0.85% 0.85% 0.85%
Gross expenses* ..................... 0.81% 0.83% 0.83% 0.96% 0.99% 0.95%
Portfolio turnover rate .............. 122% 246% 219% 258% 275% 315%
----------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
---------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 12/22/93
Net asset value, beginning of period ... $11.77 $12.55 $12.06 $11.70 $11.91 $11.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.30 0.55 0.58 0.63 0.60 0.65
Net realized and unrealized
gains (losses) on investments ..... (0.15) (0.78) 0.50 0.36 (0.20) 0.66
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................... 0.15 (0.23) 1.08 0.99 0.40 1.31
---------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.30 0.55 0.57 0.63 0.61 0.66
Net realized gains ................... -- -- -- -- -- --
In excess of net investment income ... -- -- 0.02 -- -- --
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.30 0.55 0.59 0.63 0.61 0.66
---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.62 $11.77 $12.55 $12.06 $11.70 $11.91
---------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 1.27% (1.85%) 9.24% 8.64% 3.41% 11.98%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $2,527 $2,854 $1,855 $1,401 $1,673 $234
Ratios to average net assets:
Net investment income (loss)* ....... 5.16% 4.54% 4.79% 5.17% 5.19% 5.57%
Net expenses* ....................... 1.57% 1.55% 1.55% 1.56% 1.60% 1.60%
Gross expenses* ..................... 1.57% 1.58% 1.85% 2.19% 2.44% 3.50%
Portfolio turnover rate .............. 122% 246% 219% 258% 275% 315%
---------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
-----------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- -- 11/29/93
Net asset value, beginning of period . $11.77 $11.76 $12.54 $12.05 $11.69 $11.92 $11.27
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ....... 0.30 0.36 0.67 0.71 0.75 0.72 0.77
Net realized and unrealized
gains (losses) on investments ... (0.15) (0.16) (0.78) 0.50 0.35 (0.22) 0.65
-----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS ........................ 0.15 0.20 (0.11) 1.21 1.10 0.50 1.42
-----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .............. 0.30 0.35 0.67 0.70 0.74 0.73 0.77
Net realized gains ................. -- -- -- -- -- -- --
In excess of net investment income . -- -- -- 0.02 -- -- --
-----------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................. 0.30 0.35 0.67 0.72 0.74 0.73 0.77
-----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ....... $11.62 $11.61 $11.76 $12.54 $12.05 $11.69 $11.92
-----------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ..................... 1.27% 1.77% (0.87%) 10.33% 9.74% 4.32% 13.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................. $127 $60,558 $36,152 $30,067 $16,229 $19,098 $6,642
Ratios to average net assets:
Net investment income (loss)* ..... 5.23% 6.21% 5.51% 5.58% 5.97% 6.14% 6.57%
Net expenses* ..................... 1.56% 0.55% 0.55% 0.55% 0.56% 0.55% 0.59%
Gross expenses* ................... 1.56% 0.55% 0.58% 0.57% 0.59% 0.57% 2.50%
Portfolio turnover rate ............ 122% 122% 246% 219% 258% 275% 315%
</TABLE>
----------------
See Notes to Schedules of Investments and Financial Statements.
94
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE GOVERNMENT SECURITIES FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
----------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $8.14 $8.90 $8.53 $8.48 $8.70 $8.43
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.27 0.50 0.56 0.53 0.62 0.58
Net realized and unrealized
gains (losses) on investments ..... (0.06) (0.68) 0.39 0.05 (0.22) 0.38
----------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............... 0.21 (0.18) 0.95 0.58 0.40 0.96
----------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.29 0.58 0.53 0.53 0.54 0.58
Net realized gains ................... -- -- -- -- -- --
Return of capital .................... -- -- -- -- 0.08 0.11
In excess of net investment income ... -- -- 0.05 -- -- --
----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.29 0.58 0.58 0.53 0.62 0.69
----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $8.06 $8.14 $8.90 $8.53 $8.48 $8.70
----------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 2.66% (2.01%) 11.61% 7.13% 4.80% 11.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $69,017 $42,723 $24,541 $24,027 $29,090 $26,889
Ratios to average net assets:
Net investment income (loss)* ....... 6.74% 5.89% 6.52% 6.91% 6.59% 6.78%
Net expenses* ....................... 0.85% 1.07% 1.10% 0.88% 0.90% 1.01%
Gross expenses* ..................... 0.96% 1.11% 1.16% 0.88% 0.90% 1.01%
Portfolio turnover rate .............. 32% 101% 64% 110% 334% 316%
----------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
---------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 4/22/87
Net asset value, beginning of period ... $8.20 $8.93 $8.54 $8.49 $8.71 $8.42
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.24 0.46 0.52 0.47 0.55 0.51
Net realized and unrealized
gains (losses) on investments ..... (0.06) (0.67) 0.39 0.05 (0.22) 0.41
---------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS ............... 0.18 (0.21) 0.91 0.52 0.33 0.92
---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.26 0.52 0.48 0.47 0.48 0.52
Net realized gains ................... -- -- -- -- -- --
Return of capital .................... -- -- -- -- 0.07 0.11
In excess of net investment income ... -- -- 0.04 -- -- --
---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.26 0.52 0.52 0.47 0.55 0.63
---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $8.12 $8.20 $8.93 $8.54 $8.49 $8.71
---------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 2.22% (2.42%) 10.99% 6.36% 4.00% 11.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $195,250 $269,409 $399,675 $523,303 $767,216 $1,112,254
Ratios to average net assets:
Net investment income (loss)* ....... 5.92% 5.34% 6.00% 6.15% 5.77% 6.08%
Net expenses* ....................... 1.60% 1.59% 1.60% 1.63% 1.69% 1.76%
Gross expenses* ..................... 1.70% 1.63% 1.61% 1.63% 1.69% 1.76%
Portfolio turnover rate .............. 32% 101% 64% 110% 334% 316%
---------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD)
3/31/00(B)
------------------------------------------------------------
INCEPTION DATE 9/30/99
Net asset value, beginning of period ..... $8.20
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........... 0.24
Net realized and unrealized
gains (losses) on investments ....... (0.02)
------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS .. 0.22
------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income .................. 0.28
Net realized gains ..................... --
------------------------------------------------------------
TOTAL DISTRIBUTIONS ...................... 0.28
------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ........... $8.14
------------------------------------------------------------
TOTAL RETURN (A) ......................... 2.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ...................... $9
Ratios to average net assets:
Net investment income (loss)* ......... 5.98%
Net expenses* ......................... 1.60%
Gross expenses* ....................... 1.70%
Portfolio turnover rate ................ 32%
</TABLE>
----------
See Notes to Schedules of Investments and Financial Statements.
95
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE SHORT-TERM GOVERNMENT FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97 9/30/96 9/30/95
-----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $11.71 $12.02 $11.86 $11.79 $11.91 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.30 0.55 0.65 0.67 0.63 0.66
Net realized and unrealized
gains (losses) on investments ..... (0.12) (0.25) 0.19 0.08 (0.05) 0.22
-----------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.18 0.30 0.84 0.75 0.58 0.88
-----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.30 0.56 0.66 0.67 0.64 0.69
Net realized gains ................... 0.01 0.05 0.02 0.01 0.06 --
-----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.31 0.61 0.68 0.68 0.70 0.69
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.58 $11.71 $12.02 $11.86 $11.79 $11.91
TOTAL RETURN (A) ....................... 1.57% 2.52% 7.36% 6.57% 4.98% 7.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $19,738 $23,106 $8,199 $5,319 $3,653 $2,437
Ratios to average net assets:
Net investment income (loss)* ....... 5.16% 4.70% 5.47% 5.57% 5.28% 5.62%
Net expenses* ....................... 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
Gross expenses* ..................... 0.81% 1.01% 0.95% 1.07% 1.34% 1.84%
Portfolio turnover rate .............. 152% 118% 185% 265% 201% 415%
-----------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
----------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 3/2/94
Net asset value, beginning of period ... $11.70 $12.01 $11.84 $11.78 $11.90 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.27 0.48 0.58 0.61 0.56 0.59
Net realized and unrealized
gains (losses) on investments ..... (0.12) (0.26) 0.20 0.06 (0.05) 0.21
----------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.15 0.22 0.78 0.67 0.51 0.80
----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.27 0.48 0.59 0.60 0.57 0.62
Net realized gains ................... 0.01 0.05 0.02 0.01 0.06 --
----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.28 0.53 0.61 0.61 0.63 0.62
----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.57 $11.70 $12.01 $11.84 $11.78 $11.90
TOTAL RETURN (A) ....................... 1.27% 1.91% 6.83% 5.84% 4.35% 7.01%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $630 $641 $895 $1,031 $145 $83
Ratios to average net assets:
Net investment income (loss)* ....... 4.58% 4.10% 4.87% 4.84% 4.67% 5.07%
Net expenses* ....................... 1.29% 1.30% 1.30% 1.30% 1.30% 1.30%
Gross expenses* ..................... 1.40% 1.61% 1.88% 7.77% 3.35% 3.35%
Portfolio turnover rate .............. 152% 118% 185% 265% 201% 415%
----------------------------------------------------------------------------------------------------
CLASS C
(LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
-------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- -- -- 3/2/94
Net asset value, beginning of period ... $11.70 $11.71 $12.01 $11.85 $11.78 $11.90 $11.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.24 0.34 0.58 0.68 0.70 0.66 0.69
Net realized and unrealized
gains (losses) on investments ..... (0.10) (0.15) (0.25) 0.19 0.08 (0.05) 0.21
TOTAL INCOME FROM INVESTMENT OPERATIONS 0.14 0.19 0.33 0.87 0.78 0.61 0.90
-------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.26 0.31 0.58 0.69 0.70 0.67 0.72
Net realized gains ................... 0.01 0.01 0.05 0.02 0.01 0.06 --
-------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .................... 0.27 0.32 0.63 0.71 0.71 0.73 0.72
-------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.57 $11.58 $11.71 $12.01 $11.85 $11.78 $11.90
-------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 1.19% 1.70% 2.87% 7.65% 6.83% 5.24% 7.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $117 $53,718 $3,140 $9,444 $7,717 $7,786 $8,048
Ratios to average net assets:
Net investment income (loss)* ....... 4.46% 5.80% 4.91% 5.74% 5.80% 5.54% 5.89%
Net expenses* ....................... 1.44% 0.42% 0.45% 0.45% 0.45% 0.45% 0.45%
Gross expenses* ..................... 1.54% 0.45% 0.76% 0.68% 0.68% 0.83% 0.98%
Portfolio turnover rate .............. 152% 152% 118% 185% 265% 201% 415%
</TABLE>
---------------
See Notes to Schedules of Investments and Financial Statements.
96
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE TAX-EXEMPT FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B,C) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
---------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $11.14 $11.83 $11.63 $11.42 $11.31 $10.59
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.26 0.49 0.51 0.53 0.62 0.55
Net realized and unrealized
gains (losses) on investments ..... (0.12) (0.69) 0.20 0.22 0.05 0.73
---------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 0.14 (0.20) 0.71 0.75 0.67 1.28
---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.26 0.49 0.51 0.54 0.56 0.56
Net realized gains ................... -- -- -- -- -- --
TOTAL DISTRIBUTIONS .................... 0.26 0.49 0.51 0.54 0.56 0.56
---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.02 $11.14 $11.83 $11.63 $11.42 $11.31
---------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 1.34% (1.84%) 6.33% 6.77% 6.13% 12.24%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $17,915 $22,228 $5,730 $16,542 $16,169 $16,025
Ratios to average net assets:
Net investment income (loss)* ....... 4.83% 4.28% 4.32% 5.01% 5.42% 5.01%
Net expenses* ....................... 0.85% 1.08% 1.10% 0.35% 0.00% 0.00%
Gross expenses* ..................... 0.99% 1.21% 1.23% 1.57% 1.52% 1.81%
Portfolio turnover rate .............. 24% 48% 74% 13% 6% 25%
---------------------------------------------------------------------------------------------------------
CLASS B
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97(E) 10/31/96 10/31/95
-------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 9/8/93
Net asset value, beginning of period ... $11.13 $11.83 $11.63 $11.44 $11.32 $10.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.22 0.43 0.44 0.51 0.62 0.55
Net realized and unrealized
gains (losses) on investments ..... (0.12) (0.70) 0.21 0.21 0.06 0.73
-------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT
OPERATIONS .......................... 0.10 (0.27) 0.65 0.72 0.68 1.28
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................ 0.22 0.43 0.45 0.53 0.56 0.56
Net realized gains ................... -- -- -- -- -- --
TOTAL DISTRIBUTIONS .................... 0.22 0.43 0.45 0.53 0.56 0.56
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ......... $11.01 $11.13 $11.83 $11.63 $11.44 $11.32
-------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ....................... 0.96% (2.34%) 5.68% 6.46% 6.12% 12.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) .................... $6,093 $7,269 $8,905 $10,133 $9,184 $7,668
Ratios to average net assets:
Net investment income (loss)* ....... 4.08% 3.72% 3.81% 4.79% 5.43% 5.01%
Net expenses* ....................... 1.60% 1.60% 1.60% 0.57% 0.00% 0.00%
Gross expenses* ..................... 1.74% 1.75% 1.71% 2.32% 2.26% 2.56%
Portfolio turnover rate .............. 24% 48% 74% 13% 6% 25%
-------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97
---------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE 9/30/99 -- -- -- 9/26/97
Net asset value, beginning of period .... $11.13 $11.58 $12.30 $12.10 $12.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... 0.22 0.29 0.57 0.58 0.02
Net realized and unrealized gains
(losses) on investments ............ (0.12) (0.13) (0.72) 0.27 --
---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.10 0.16 (0.15) 0.85 0.02
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ................. 0.22 0.29 0.57 0.65 0.01
Net realized gains .................... -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ..................... 0.22 0.29 0.57 0.65 0.01
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD .......... $11.01 $11.45 $11.58 $12.30 $12.10
---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ........................ 0.96% 1.42% (1.37%) 7.30% 0.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $101 $24 $24 $24 $3,216
Ratios to average net assets:
Net investment income (loss)* ........ 4.06% 5.09% 4.72% 4.74% 4.31%
Net expenses* ........................ 1.60% 0.60% 0.59% 0.60% 0.54%
Gross expenses* ...................... 1.74% 0.73% 0.74% 1.25% 0.56%
Portfolio turnover rate ............... 24% 24% 48% 74% 13%
</TABLE>
-------------
See Notes to Schedules of Investments and Financial Statements.
97
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA BASED ON A SHARE OUTSTANDING THROUGHOUT THE PERIOD(S) INDICATED
GE HIGH YIELD FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C (LEVEL LOAD) CLASS Y(D)
3/31/00(B) 9/30/99(B,C) 3/31/00(B) 9/30/99(B) 3/31/00(B) 3/31/00(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) ............... 0.39 0.55 0.36 0.48 0.35 0.40 0.55
Net realized and unrealized
gains (losses) on investments .......... (0.16) (0.49) (0.17) (0.48) (0.16) (0.16) (0.48)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS 0.23 0.06 0.19 -- 0.19 0.24 0.07
-----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ...................... 0.40 0.53 0.36 0.47 0.36 0.41 0.54
Net realized gains ......................... -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS .......................... 0.40 0.53 0.36 0.47 0.36 0.41 0.54
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ............... $9.36 $9.53 $9.36 $9.53 $9.36 $9.36 $9.53
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................. 2.38% 0.53% 2.00% (0.03%) 1.99% 2.51% 0.71%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ... $6,382 $1,931 $836 $154 $1,143 $23,137 $20,126
Ratios to average net assets:
Net investment income (loss)* ............. 8.22% 7.57% 7.52% 6.53% 7.55% 8.44% 7.49%
Expenses* ................................. 0.93% 0.89% 1.68% 1.70% 1.67% 0.68% 0.70%
Gross expenses* ........................... 1.03% 1.16% 1.78% 2.05% 1.77% 0.79% 0.98%
Portfolio turnover rate .................... 13% 27% 13% 27% 13% 13% 27%
-----------------------------------------------------------------------------------------------------------------------------------
GE MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A
3/31/00(B) 9/30/99(B) 9/30/98(B) 9/30/97 9/30/96 9/30/95
-----------------------------------------------------------------------------------------------------------------------------
INCEPTION DATE -- -- -- -- -- 1/5/93
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ................. 0.03 0.05 0.05 0.05 0.05 0.05
Net realized and unrealized gains
on investments ............................ -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM INVESTMENT OPERATIONS ........ 0.03 0.05 0.05 0.05 0.05 0.05
-----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS FROM:
Net investment income ........................ 0.03 0.05 0.05 0.05 0.05 0.05
Net realized gains ........................... -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................ 0.03 0.05 0.05 0.05 0.05 0.05
-----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (A) ............................... 2.69% 4.68% 5.23% 5.14% 5.18% 5.52%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..... $230,830 $196,155 $153,665 $114,030 $85,842 $71,664
Ratios to average net assets:
Net investment income (loss)* ............... 5.33% 4.58% 5.11% 5.04% 5.06% 5.32%
Net expenses* ............................... 0.50% 0.49% 0.50% 0.47% 0.45% 0.45%
Gross expenses* ............................. 0.50% 0.50% 0.52% 0.56% 0.66% 0.70%
</TABLE>
-------------
See Notes to Schedules of Investments and Financial Statements.
98
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
(A) TOTAL RETURNS ARE HISTORICAL AND ASSUME CHANGES IN SHARE PRICE, REINVESTMENT
OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS, AND ASSUME NO SALES CHARGE.
HAD THE ADVISER NOT ABSORBED A PORTION OF EXPENSES, TOTAL RETURNS WOULD HAVE
BEEN LOWER. PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(B) PER SHARE DATA IS BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
(C) EFFECTIVE AS OF THE CLOSE OF BUSINESS SEPTEMBER 17, 1999, CLASS C SHARES OF
GE FUNDS WERE COMBINED WITH CLASS A SHARES. THE CURRENT YEAR AND PRIOR
YEARS' PER SHARE INFORMATION, TOTAL RETURN, AND RATIOS/SUPPLEMENTAL DATA
REFLECT THE RELEVANT INFORMATION OF THE PREDECESSOR CLASS C SHARES FOR ALL
FUNDS EXCEPT FOR THE GE VALUE EQUITY FUND, GE MID-CAP GROWTH EQUITY FUND, GE
GOVERNMENT SECURITIES FUND AND GE TAX-EXEMPT FUND WHERE THE RELEVANT
INFORMATION FOR CLASS A SHARES WAS RETAINED. ALSO SEE NOTE 10 OF NOTES TO
FINANCIAL STATEMENTS.
(D) EFFECTIVE AS OF THE CLOSE OF BUSINESS SEPTEMBER 17, 1999, CLASS D SHARES ARE
RENAMED CLASS Y SHARES.
(E) FOR THE PERIOD NOVEMBER 1, 1996 THROUGH SEPTEMBER 30, 1997.
* ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
99
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE GE
U.S. PREMIER GROWTH VALUE MID-CAP
EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $660,457,245; $131,735,363;
$72,124,460; $26,010,699; $11,421,944; $43,484,712; $71,570,419;
$72,878,629; $13,665,597; $21,957,040; and $159,865,285,
respectively ) ........................................... $822,166,605 $169,234,151 $92,915,299 $37,381,187
Short-term investments (at amortized cost) .................. 7,844,349 8,274,044 512,132 3,272,262
Cash ........................................................ 32,005 -- 3,154 --
Foreign currency (cost $0; $0; $0; $0; $0; $0; $419,968
$161,997; $131,075; $99,901; and $254,090, respectively) . -- -- -- --
Receivable for investments sold ............................. 14,150,829 679,859 708,551 480,099
Income receivables .......................................... 696,661 101,713 85,543 54,079
Receivable for fund shares sold ............................. 1,958,403 682,626 63,098 21,850
Variation margin receivable ................................. 16,530 19,250 2,750 --
Deferred organizational costs ............................... -- 6,030 2,378 9,864
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ............................................. 846,865,382 178,997,673 94,292,905 41,219,341
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders ....................... 39,819 24,078 -- 4,241
Payable upon return of securities loaned .................... -- -- -- --
Payable for investments purchased ........................... 13,062,041 1,159,481 604,996 89,038
Payable for fund shares redeemed ............................ 307,005 54,990 176,488 71,207
Payable to GEAM ............................................. 477,893 171,618 106,755 58,509
Deferred country taxes payable .............................. -- -- -- --
Variation margin payable .................................... -- -- -- 10,575
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................ 13,886,758 1,410,167 888,239 233,570
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ..................................................... $832,978,624 $177,587,506 $93,404,666 $40,985,771
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ............................................. 627,309,932 135,053,452 68,344,829 29,950,688
Undistributed (overdistributed) net investment income ....... 1,265,473 (41,175) 84,783 22,462
Accumulated net realized gain (loss) ........................ 42,601,320 5,113,091 4,158,029 (356,642)
Net unrealized appreciation / (depreciation) on:
Investments .............................................. 161,709,360 37,498,788 20,790,839 11,370,488
Written options .......................................... 93,100 (36,650) 26,325 (1,225)
Foreign currency related transactions .................... (561) -- (139) --
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ..................................................... $832,978,624 $177,587,506 $93,404,666 $40,985,771
------------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ..................................................... 388,332,457 114,163,719 36,772,878 20,591,183
Shares outstanding ($.001 par value) ........................... 11,755,060 3,442,165 2,836,448 1,634,188
Net asset value per share ...................................... 33.04 33.17 12.96 12.60
Maximum offering price per share ............................... 35.06 35.19 13.75 13.37
CLASS B
Net assets ..................................................... 47,322,797 36,796,322 52,706,713 20,284,159
Shares outstanding ($.001 par value) ........................... 1,479,676 1,135,232 4,169,299 1,721,526
Net asset value per share* ..................................... 31.98 32.41 12.64 11.78
CLASS C (LEVEL LOAD):
Net assets ..................................................... 4,333,077 2,482,816 608,668 106,659
Shares outstanding ($.001 par value) ........................... 136,451 76,605 48,124 9,053
Net asset value per share* ..................................... 31.76 32.41 12.65 11.78
CLASS Y:
Net assets ..................................................... 392,990,293 24,144,649 3,316,407 3,770
Shares outstanding ($.001 par value) ........................... 11,937,055 724,250 243,577 282
Net asset value per share ...................................... 32.92 33.34 13.62 13.37
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $660,457,245; $131,735,363;
$72,124,460; $26,010,699; $11,421,944; $43,484,712; $71,570,419;
$72,878,629; $13,665,597; $21,957,040; and $159,865,285,
respectively ) ......................................... $12,604,649 $46,226,458 $85,856,603 $84,086,082
Short-term investments (at amortized cost) ................ 760,653 3,395,948 3,306,315 1,527,178
Cash ...................................................... -- 3,195 -- --
Foreign currency (cost $0; $0; $0; $0; $0; $0; $419,968
$161,997; $131,075; $99,901; and $254,090, respectively) -- -- 424,549 162,137
Receivable for investments sold ........................... -- 403,778 656,010 790,829
Income receivables ........................................ 17,586 45,729 181,700 248,089
Receivable for fund shares sold ........................... 51,108 23,169 29,716 1,623,568
Variation margin receivable ............................... -- -- -- --
Deferred organizational costs ............................. -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ........................................... 13,433,996 50,098,277 90,454,893 88,437,883
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders ..................... -- -- -- --
Payable upon return of securities loaned .................. -- -- -- --
Payable for investments purchased ......................... 194,750 575,096 1,100,134 1,592,404
Payable for fund shares redeemed .......................... -- -- 977 157,048
Payable to GEAM ........................................... 8,337 44,507 103,422 85,647
Deferred country taxes payable ............................ -- -- -- --
Variation margin payable .................................. -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ...................................... 203,087 619,603 1,204,533 1,835,099
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................... $13,230,909 $49,478,674 $89,250,360 $86,602,784
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ........................................... 12,507,456 41,721,029 61,829,201 66,683,112
Undistributed (overdistributed) net investment income ..... 19,097 (24,910) (187,695) (194,092)
Accumulated net realized gain (loss) ...................... (478,349) 5,040,809 13,323,321 8,911,966
Net unrealized appreciation / (depreciation) on:
Investments ............................................ 1,182,705 2,741,746 14,286,184 11,207,453
Written options ........................................ -- -- -- --
Foreign currency related transactions .................. -- -- (651) (5,655)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ................................................... $13,230,909 $49,478,674 $89,250,360 $86,602,784
------------------------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ................................................... 1,723,918 27,909,303 53,444,107 42,944,881
Shares outstanding ($.001 par value) ......................... 161,666 2,012,057 1,784,690 1,955,911
Net asset value per share .................................... 10.66 13.87 29.95 21.96
Maximum offering price per share ............................. 11.31 14.72 31.78 23.30
CLASS B
Net assets ................................................... 175,002 11,402,644 2,393,637 2,179,326
Shares outstanding ($.001 par value) ......................... 16,500 830,691 83,551 103,618
Net asset value per share* ................................... 10.61 13.73 28.65 21.03
CLASS C (LEVEL LOAD):
Net assets ................................................... 285,969 100,152 137,726 226,971
Shares outstanding ($.001 par value) ......................... 27,108 7,295 4,807 10,788
Net asset value per share* ................................... 10.55 13.73 28.65 21.04
CLASS Y:
Net assets ................................................... 11,046,020 10,066,575 33,274,890 41,251,606
Shares outstanding ($.001 par value) ......................... 1,035,346 723,226 1,110,558 1,863,804
Net asset value per share .................................... 10.67 13.92 29.96 22.13
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND FUND FUND
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market (cost $660,457,245; $131,735,363;
$72,124,460; $26,010,699; $11,421,944; $43,484,712; $71,570,419;
$72,878,629; $13,665,597; $21,957,040; and $159,865,285,
respectively ) ............... .............................. $16,613,261 $31,900,167 $197,971,115
Short-term investments (at amortized cost) ..................... 596,320 486,951 17,097,607
Cash ........................................................... -- -- 3,971
Foreign currency (cost $0; $0; $0; $0; $0; $0; $419,968
$161,997; $131,075; $99,901; and $254,090, respectively) .... 131,074 99,948 254,967
Receivable for investments sold ................................ 162,824 249,305 2,008,283
Income receivables ............................................. 47,244 45,763 1,047,932
Receivable for fund shares sold ................................ 11,052 3,554 79,537
Variation margin receivable .................................... -- -- --
Deferred organizational costs .................................. -- -- --
---------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ................................................ 17,561,775 32,785,688 218,463,412
---------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders .......................... -- -- --
Payable upon return of securities loaned ....................... -- -- --
Payable for investments purchased .............................. 320,687 457,525 7,882,326
Payable for fund shares redeemed ............................... -- -- 167,334
Payable to GEAM ................................................ 15,204 31,446 156,495
Deferred country taxes payable ................................. -- 304,625 --
Variation margin payable ....................................... -- -- --
---------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................... 335,891 793,596 8,206,155
---------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $17,225,884 $31,992,092 $210,257,257
---------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ................................................ 12,213,235 20,163,617 160,570,181
Undistributed (overdistributed) net investment income .......... (64,396) (133,827) 1,275,569
Accumulated net realized gain (loss) ........................... 2,129,620 2,323,158 10,307,405
Net unrealized appreciation / (depreciation) on:
Investments ................................................. 2,947,664 9,638,501 38,105,831
Written options ............................................. -- -- --
Foreign currency related transactions ....................... (239) 643 (1,729)
---------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $17,225,884 $31,992,092 $210,257,257
---------------------------------------------------------------------------------------------------------------------
CLASS A: (NOTE 10)
Net assets ........................................................ 1,963,990 7,812,237 120,900,833
Shares outstanding ($.001 par value) .............................. 136,497 387,688 4,530,038
Net asset value per share ......................................... 14.39 20.15 26.69
Maximum offering price per share .................................. 15.27 21.38 28.32
CLASS B
Net assets ........................................................ 334,089 575,654 19,610,357
Shares outstanding ($.001 par value) .............................. 23,318 28,828 752,594
Net asset value per share* ........................................ 14.33 19.97 26.06
CLASS C (LEVEL LOAD):
Net assets ........................................................ 174,127 145,864 2,050,616
Shares outstanding ($.001 par value) .............................. 12,203 7,307 79,371
Net asset value per share* ........................................ 14.27 19.96 25.84
CLASS Y:
Net assets ........................................................ 14,753,678 23,458,337 67,695,451
Shares outstanding ($.001 par value) .............................. 1,023,746 1,160,444 2,534,008
Net asset value per share ......................................... 14.41 20.21 26.71
<FN>
*Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
</FN>
</TABLE>
-----------------
See Notes to Financial Statements.
100 & 101
<PAGE>
STATEMENTS OF ASSETS
AND LIABILITIES MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE
FIXED GOVERNMENT SHORT-TERM GE
INCOME SECURITIES GOVERNMENT TAX-EXEMPT
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market (cost $150,975,871
$269,531,881; $71,711, 167; $24,132,741;
$31,105,936; and $0, respectively ) ......................... $148,089,665 $266,141,014 $71,282,666 $23,596,012
<S> <C> <C> <C> <C>
Short-term investments (at amortized cost) ..................... 22,970,903 5,470,749 19,774,244 91,429
Foreign currency (cost $6; $0; $0; $0; $0;
and $0, respectively) ....................................... 6 -- -- --
Receivable for investments sold ................................ 4,259,942 -- -- --
Income receivables ............................................. 1,878,298 6,463,662 981,992 468,629
Receivable for fund shares sold ................................ 33,616 -- 10,125 1,768
Receivable for forward foreign currency ........................ -- -- -- --
Receivable from advisor ........................................ -- -- -- 29,183
------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS ................................................ 177,232,430 278,075,425 92,049,027 24,187,021
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders .......................... 138,141 289,126 58,415 14,778
Payable upon return of securities loaned ....................... 6,705,969 9,446,877 16,258,976 --
Payable for investments purchased .............................. 13,701,358 500,000 1,500,000 --
Payable for fund shares redeemed ............................... 64,011 970,514 1,500 38,130
Payable to GEAM ................................................ 129,223 2,592,682 28,303 --
Payable to custodian ........................................... -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................... 20,738,702 13,799,199 17,847,194 52,908
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $156,493,728 $264,276,226 $74,201,833 $24,134,113
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ................................................ 164,620,164 466,650,241 74,801,424 25,409,071
Undistributed (overdistributed)net investment income ........... 272,603 (1,005,511) 20,835 76,820
Accumulated net realized gain (loss) ........................... (5,512,833) (197,977,637) (191,925) (815,049)
Net unrealized appreciation / (depreciation) on:
Investments ................................................. (2,886,206) (3,390,867) (428,501) (536,729)
Foreign currency related transactions ....................... -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $156,493,728 $264,276,226 $74,201,833 $24,134,113
------------------------------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
Net assets ........................................................ 93,281,718 69,017,095 19,737,800 17,915,389
Shares outstanding ($.001 par value) .............................. 8,033,275 8,563,320 1,704,455 1,626,433
Net asset value per share ......................................... 11.61 8.06 11.58 11.02
Maximum offering price per share .................................. 12.13 8.42 11.88 11.51
CLASS B:
Net assets ........................................................ 2,526,945 195,249,686 629,620 6,093,023
Shares outstanding ($.001 par value) .............................. 217,507 24,039,707 54,440 553,269
Net asset value per share* ........................................ 11.62 8.12 11.57 11.01
CLASS C (LEVEL LOAD):
Net assets ........................................................ 126,804 9,445 116,570 101,418
Shares outstanding ($.001 par value) .............................. 10,917 1,161 10,078 9,214
Net asset value per share* ........................................ 11.62 8.14 11.57 11.01
CLASS Y:
Net assets ........................................................ 60,558,261 -- 53,717,843 24,283
Shares outstanding ($.001 par value) .............................. 5,217,728 -- 4,640,115 2,121
Net asset value per share ......................................... 11.61 -- 11.58 11.45
</TABLE>
<TABLE>
<CAPTION>
GE GE
HIGH MONEY
YIELD MARKET
FUND FUND**
---------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market (cost $150,975,871
$269,531,881; $71,711, 167; $24,132,741;
$31,105,936; and $0, respectively ) ......................... $29,528,864 --
<S> <C> <C>
Short-term investments (at amortized cost) ..................... 2,036,304 233,142,697
Foreign currency (cost $6; $0; $0; $0; $0;
and $0, respectively) ....................................... -- --
Receivable for investments sold ................................ -- --
Income receivables ............................................. 691,135 611,781
Receivable for fund shares sold ................................ 140 514,478
Receivable for forward foreign currency ........................ 42,194 --
Receivable from advisor ........................................ -- --
---------------------------------------------------------------------------------------------------
TOTAL ASSETS ................................................ 32,298,637 234,268,956
---------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable to shareholders .......................... 35,558 173,468
Payable upon return of securities loaned ....................... -- --
Payable for investments purchased .............................. 748,616 --
Payable for fund shares redeemed ............................... -- 3,165,926
Payable to GEAM ................................................ 17,290 97,370
Payable to custodian ........................................... -- 2,364
---------------------------------------------------------------------------------------------------
TOTAL LIABILITIES ........................................... 801,464 3,439,128
---------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $31,497,173 $230,829,828
---------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Capital paid in ................................................ 33,166,019 230,779,578
Undistributed (overdistributed)net investment income ........... 4,809 59,092
Accumulated net realized gain (loss) ........................... (137,149) (8,842)
Net unrealized appreciation / (depreciation) on:
Investments ................................................. (1,577,072) --
Foreign currency related transactions ....................... 40,566 --
---------------------------------------------------------------------------------------------------
NET ASSETS ........................................................ $31,497,173 $230,829,828
---------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
Net assets ........................................................ 6,381,595 230,829,828
Shares outstanding ($.001 par value) .............................. 681,774 230,841,013
Net asset value per share ......................................... 9.36 1.00
Maximum offering price per share .................................. 9.78 --
CLASS B:
Net assets ........................................................ 835,619 --
Shares outstanding ($.001 par value) .............................. 89,267 --
Net asset value per share* ........................................ 9.36 --
CLASS C (LEVEL LOAD):
Net assets ........................................................ 1,142,941 --
Shares outstanding ($.001 par value) .............................. 122,054 --
Net asset value per share* ........................................ 9.36 --
CLASS Y:
Net assets ........................................................ 23,137,018 --
Shares outstanding ($.001 par value) .............................. 2,471,590 --
Net asset value per share ......................................... 9.36 --
<FN>
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge.
** GE Money Market Fund is a no load fund offering only one class of shares to
all investors.
</FN>
</TABLE>
-----------------
See Notes to Financial Statements.
102 & 103
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE GE
U.S. PREMIER GROWTH VALUE MID-CAP
EQUITY EQUITY EQUITY GROWTH
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends .......................................... $ 4,271,891 $ 284,083 $ 581,117 $ 126,573
Interest ........................................... 796,605 254,512 98,607 103,103
Less: Foreign taxes withheld ....................... (11,881) (846) (1,402) (1,493)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME .......................................... 5,056,615 537,749 678,322 228,183
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ................... 1,521,127 416,359 249,884 116,503
Distribution fees (Note 10)
Class A ......................................... 435,832 112,823 44,397 23,366
Class B ......................................... 213,884 124,727 263,150 96,276
Class C ......................................... 10,575 5,336 1,974 443
Blue Sky fees ...................................... 24,308 17,301 18,968 18,386
Transfer agent fees ................................ 343,052 60,825 59,914 44,773
Trustees' fees ..................................... 12,598 1,835 1,480 619
Custody and accounting expenses .................... 144,488 21,049 16,973 7,097
Professional fees .................................. 110,305 16,069 12,958 5,417
Registration expenses .............................. 14,649 2,134 1,720 719
Amortization of deferred organization expense ...... -- 1,415 -- --
Other expenses ..................................... 48,193 7,021 5,663 2,366
------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER .......................... 2,879,011 786,894 677,081 315,965
Less: Expenses waived or borne
by the adviser .................................. -- -- -- (21,125)
Net expenses ....................................... 2,879,011 786,894 677,081 294,840
------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .......................... 2,177,604 (249,145) 1,241 (66,657)
------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ..................................... 50,511,604 4,974,278 5,213,010 1,419,274
Futures ......................................... 324,007 532,570 176,785 (67,295)
Written options ................................. -- -- -- --
Foreign currency related transactions ........... 209 -- (64) --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ..................................... 49,485,955 25,628,504 5,189,280 10,009,531
Futures ......................................... 786,105 (26,350) 119,250 (1,225)
Foreign currency related transactions ........... (307) -- (121) --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .................................. 101,107,573 31,109,002 10,698,140 11,360,285
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... $103,285,177 $30,859,857 $10,699,381 $11,293,628
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends .......................................... $ 84,879 $ 95,213 $269,005 $ 286,029
Interest ........................................... 24,899 61,393 89,331 58,817
Less: Foreign taxes withheld ....................... -- -- (38,199) (50,243)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME .......................................... 109,778 156,606 320,137 294,603
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ................... 47,880 105,731 287,484 270,338
Distribution fees (Note 10)
Class A ......................................... 1,448 23,243 58,776 47,982
Class B ......................................... 1,081 48,796 9,763 9,001
Class C ......................................... 935 531 462 786
Blue Sky fees ...................................... 10,912 10,912 17,780 18,095
Transfer agent fees ................................ 2,456 8,297 77,429 54,831
Trustees' fees ..................................... 196 415 1,135 1,007
Custody and accounting expenses .................... 2,240 4,762 13,011 11,540
Professional fees .................................. 1,709 3,634 9,933 8,811
Registration expenses .............................. 227 483 1,319 1,169
Amortization of deferred organization expense ...... -- -- -- --
Other expenses ..................................... 747 1,589 4,341 3,850
------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER .......................... 69,831 208,393 481,433 427,410
Less: Expenses waived or borne
by the adviser .................................. (12,653) (2,649) -- --
Net expenses ....................................... 57,178 205,744 481,433 427,410
------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .......................... 52,600 (49,138) (161,296) (132,807)
------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ..................................... (356,276) 5,779,054 13,639,575 9,425,352
Futures ......................................... -- -- -- --
Written options ................................. -- 60,268 -- --
Foreign currency related transactions ........... -- -- (98,865) (60,650)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ..................................... 1,384,467 2,112,205 4,055,975 5,877,013
Futures ......................................... -- -- -- --
Foreign currency related transactions ........... -- -- 13,468 (11,545)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .................................. 1,028,191 7,951,527 17,610,153 15,230,170
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... $1,080,791 $7,902,389 $17,448,857 $15,097,363
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND FUND FUND
------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C>
Dividends .......................................... $ 62,800 $ 69,389 $ 563,459
Interest ........................................... 15,153 33,749 2,534,468
Less: Foreign taxes withheld ....................... (10,502) (7,843) (28,532)
------------------------------------------------------------------------------------------------------------
TOTAL INCOME .......................................... 67,451 95,295 3,069,395
------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ................... 74,672 140,931 351,409
Distribution fees (Note 10)
Class A ......................................... 1,592 4,782 145,362
Class B ......................................... 1,121 2,015 91,308
Class C ......................................... 491 563 5,445
Blue Sky fees ...................................... 10,912 10,912 18,494
Transfer agent fees ................................ 2,569 1,863 147,573
Trustees' fees ..................................... 194 265 3,321
Custody and accounting expenses .................... 2,214 3,034 38,091
Professional fees .................................. 1,691 2,317 29,079
Registration expenses .............................. 225 307 3,861
Amortization of deferred organization expense ...... -- -- --
Other expenses ..................................... 740 1,107 12,706
------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER .......................... 96,421 168,096 846,649
Less: Expenses waived or borne
by the adviser .................................. (11,520) (17,616) --
Net expenses ....................................... 84,901 150,480 846,649
------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) .......................... (17,450) (55,185) 2,222,746
------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ..................................... 2,202,068 2,374,958 10,774,053
Futures ......................................... -- -- --
Written options ................................. -- -- 1,153
Foreign currency related transactions ........... (15,836) (13,292) (38,233)
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ..................................... 2,992,350 7,096,804 11,442,322
Futures ......................................... -- -- --
Foreign currency related transactions ........... (971) 2,176 (944)
------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .................................. 5,177,611 9,460,646 22,178,351
------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... $5,160,161 $9,405,461 $24,401,097
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>
-----------
See Notes to Financial Statements.
104 & 105
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GE GE GE
FIXED GOVERNMENT SHORT-TERM GE
INCOME SECURITIES GOVERNMENT TAX-EXEMPT
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends ...................................... $ 33,240 $ -- $ -- $ --
Interest* ...................................... 4,460,330 10,806,536 1,044,100 680,284
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME ...................................... 4,493,570 10,806,536 1,044,100 680,284
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ............... 234,929 573,969 52,329 42,020
Distribution fees (Note 10)
Class A ..................................... 116,225 67,964 30,453 --
Class B ..................................... 13,956 1,161,381 2,436 33,148
Class C (level load) ........................ 448 308 633 424
Blue Sky fees .................................. 16,360 19,793 17,983 18,278
Transfer agent fees ............................ 56,602 271,843 9,161 14,289
Trustees' fees ................................. 2,339 5,550 498 525
Custody and accounting expenses ................ 26,813 63,662 5,719 6,019
Professional fees .............................. 20,469 48,599 4,366 4,595
Registration expenses .......................... 2,719 6,454 580 609
Other expenses ................................. 8,943 22,076 1,911 23,537
------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ...................... 499,803 2,241,599 126,069 143,444
Less: Expenses waived or borne
by the adviser .............................. -- (150,151) (15,895) (16,308)
Net expenses ................................... 499,803 2,091,448 110,174 127,136
------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME ............................. 3,993,767 8,715,088 933,926 553,148
------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ................................. (2,785,928) (3,798,217) (183,335) (224,913)
Written options ............................. 2,322 5,534 -- --
Foreign currency related transactions ....... -- -- -- --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ................................. 1,166,034 1,267,433 (172,587) (82,206)
Foreign currency related transactions ....... -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .............................. (1,617,572) (2,525,250) (355,922) (307,119)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $2,376,195 $6,189,838 $ 578,004 $246,029
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE
HIGH MONEY
YIELD MARKET
FUND FUND
-----------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME:
<S> <C> <C>
Dividends ...................................... $ 14,208 $ --
Interest* ...................................... 1,153,999 6,406,302
-----------------------------------------------------------------------------------------
TOTAL INCOME ...................................... 1,168,207 6,406,302
-----------------------------------------------------------------------------------------
EXPENSES:
Advisory and administration fees ............... 76,596 274,784
Distribution fees (Note 10)
Class A ..................................... 4,332 --
Class B ..................................... 2,483 --
Class C (level load) ........................ 2,963 --
Blue Sky fees .................................. 10,912 17,952
Transfer agent fees ............................ 2,703 164,855
Trustees' fees ................................. 395 3,477
Custody and accounting expenses ................ 4,527 39,883
Professional fees .............................. 3,457 30,448
Registration expenses .......................... 459 4,044
Other expenses ................................. 1,512 13,304
-----------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE WAIVER ...................... 110,339 548,747
Less: Expenses waived or borne
by the adviser .............................. (13,115) --
Net expenses ................................... 97,224 548,747
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME ............................. 1,070,983 5,857,555
-----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
REALIZED GAIN (LOSS) ON:
Investments ................................. (58,130) --
Written options ............................. -- --
Foreign currency related transactions ....... 101,471 --
INCREASE (DECREASE) IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments ................................. (712,619) --
Foreign currency related transactions ....... 56,884 --
-----------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .............................. (612,394) --
-----------------------------------------------------------------------------------------
NET INCREASE (DECREASE)IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $ 458,589 $5,857,555
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
<FN>
* 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 $3,545, $99,225, and $1,098, respectively.
</FN>
</TABLE>
----------------
See Notes to Financial Statements.
106 & 107
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
GE GE
U.S. PREMIER GROWTH
EQUITY EQUITY
FUND FUND
-------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999 2000 (UNAUDITED) 30, 1999
-------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income/(loss) ................ $ 2,177,604 $ 4,046,234 $ (249,145) $ (233,594)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions ............ 50,835,820 92,673,427 5,506,848 4,946,339
Net increase (decrease) in unrealized
appreciation/depreciation ................. 50,271,753 45,040,764 25,602,154 8,663,640
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ..... 103,285,177 141,760,425 30,859,857 13,376,385
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................... (1,380,844) (554,582) -- --
Class B ................................... -- (37,985) -- --
Class C ................................... -- (1,040,599) -- (21,376)
Class C (level load) ...................... (9,291) -- -- --
Class Y ................................... (2,602,693) (3,032,762) -- (24,596)
Net realized gains
Class A ................................... (36,780,485) (8,266,829) (3,161,016) (245,349)
Class B ................................... (4,638,890) (2,013,790) (805,004) (75,915)
Class C ................................... -- (11,428,065) -- (541,997)
Class C (level load) ...................... (162,704) -- (25,553) --
Class Y ................................... (41,627,300) (24,644,393) (860,280) (243,657)
-------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ........................... (87,202,207) (51,019,005) (4,851,853) (1,152,890)
-------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations
and distributions ............................. 16,082,970 90,741,420 26,008,004 12,223,495
-------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................... 75,116,022 57,506,537 43,158,893 15,693,055
Class B ................................... 8,666,876 13,686,463 17,142,009 13,025,352
Class C ................................... -- 48,866,502 -- 30,507,072
Class C (level load) ...................... 4,303,600 70,000 2,411,491 70,000
Class Y ................................... 57,411,026 87,021,913 23,338,161 47,132,513
Value of distributions reinvested
Class A ................................... 37,391,195 8,822,976 3,077,702 245,318
Class B ................................... 4,365,704 1,987,603 779,441 69,002
Class C ................................... -- 12,199,432 -- 556,529
Class C (level load) ...................... 171,978 -- 25,553 --
Class Y ................................... 43,848,215 27,361,490 860,280 268,239
Cost of shares redeemed
Class A ................................... (44,156,805) (38,044,646) (16,340,405) (6,210,407)
Class B ................................... (3,409,433) (3,827,603) (1,184,157) (384,886)
Class C ................................... -- (26,060,350) -- (3,387,295)
Class C (level load) ...................... (302,257) -- (227,661) --
Class Y ................................... (74,042,609) (85,897,990) (25,047,805) (36,981,788)
Value of shares redesignated (Note 10)
Class A ................................... -- (133,574,732) -- (18,802,004)
Class C ................................... -- 133,574,732 -- 18,802,004
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions 109,363,512 103,692,327 47,993,502 60,602,704
-------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....... 125,446,482 194,433,747 74,001,506 72,826,199
NET ASSETS
Beginning of year ............................. 707,532,142 513,098,395 103,586,000 30,759,801
-------------------------------------------------------------------------------------------------------------
End of year ................................... $832,978,624 $707,532,142 $177,587,506 $103,586,000
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME,
END OF PERIOD ................................. $ 1,265,473 $ 3,080,697 $ (41,175)$ 207,970
</TABLE>
<TABLE>
<CAPTION>
GE GE
VALUE MID-CAP
EQUITY GROWTH
FUND FUND
----------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
NDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999 2000 (UNAUDITED) 30, 1999
----------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income/(loss) ................. $ 1,241 $ (98,247) $ (66,657) $ (253,669)
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions ............. 5,389,731 4,702,713 1,351,979 (102,555)
Net increase (decrease) in unrealized
appreciation/depreciation .................. 5,308,409 11,973,376 10,008,306 5,146,480
----------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ...... 10,699,381 16,577,842 11,293,628 4,790,256
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .................................... -- (54,459) -- --
Class B .................................... -- -- -- --
Class C .................................... -- -- -- --
Class C (level load) ....................... -- -- -- --
Class Y .................................... -- (12,937) -- --
Net realized gains
Class A .................................... (2,129,544) (712,210) -- --
Class B .................................... (3,277,572) (1,765,132) -- --
Class C .................................... -- -- -- --
Class C (level load) ....................... (18,991) -- -- --
Class Y .................................... (130,787) (62,064) -- --
----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS ............................ (5,556,894) (2,606,802) -- --
----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations
and distributions .............................. 5,142,487 13,971,040 11,293,628 4,790,256
----------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A .................................... 19,359,569 23,306,671 10,381,242 15,816,615
Class B .................................... 3,648,289 6,646,123 426,809 1,278,017
Class C .................................... -- 5,287,366 -- 2,134,797
Class C (level load) ....................... 571,469 70,000 10,774 70,000
Class Y .................................... 3,081,200 3,154,151 25,407 1,110,339
Value of distributions reinvested
Class A .................................... 2,077,451 639,827 -- --
Class B .................................... 3,190,895 1,723,554 -- --
Class C .................................... -- 122,575 -- --
Class C (level load) ....................... 18,989 -- -- --
Class Y .................................... 130,786 75,002 -- --
Cost of shares redeemed
Class A .................................... (16,145,407)(19,256,429) (11,241,628)(14,637,395)
Class B .................................... (8,447,154)(11,457,926) (3,752,355) (8,378,193)
Class C .................................... -- (942,565) -- (819,735)
Class C (level load) ....................... (79,138) -- (11) --
Class Y .................................... (2,482,248) (2,877,595) (1,027,639) (842,798)
Value of shares redesignated (Note 10)
Class A .................................... -- 7,595,717 -- 3,348,474
Class C .................................... -- (7,595,717) -- (3,348,474)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) from share transactions 4,924,701 6,490,754 (5,177,401) (4,268,353)
----------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ........ 10,067,188 20,461,794 6,116,227 521,903
NET ASSETS
Beginning of year .............................. 83,337,478 62,875,684 34,869,544 34,347,641
----------------------------------------------------------------------------------------------------------
End of year .................................... $93,404,666 $83,337,478 $40,985,771 $34,869,544
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME
END OF PERIOD .................................. $ 84,783 $ 83,542 $ 22,462 $ 89,119
</TABLE>
-------------
See Notes to Financial Statements.
108
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND FUND FUND FUND
--------------------------------------------------------------------------------------------------------------------
SIX MONTHS PERIOD ENDED SIX MONTHS PERIOD ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999* 2000 (UNAUDITED) 30, 1999** 2000 (UNAUDITED) 30, 1999 2000 (UNAUDITED) 30, 1999
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 52,600 $ 64,321 $ (49,138) $ (53,355) $ (161,296) $ 172,856 $ (132,807) $ 177,587
(356,276) (122,073) 5,839,322 2,634,906 13,540,710 5,823,374 9,364,702 2,910,160
1,384,467 (201,762) 2,112,205 629,541 4,069,443 10,647,759 5,865,468 8,449,673
--------------------------------------------------------------------------------------------------------------------
1,080,791 (259,514) 7,902,389 3,211,092 17,448,857 16,643,989 15,097,363 11,537,420
--------------------------------------------------------------------------------------------------------------------
(7,497) -- -- (17,185) -- -- -- --
(423) -- -- (6,483) -- -- -- --
-- -- -- (2,030) -- (6,483) -- --
(2,044) -- -- -- -- -- -- --
(87,910) -- -- (338) -- (54,973) -- (14,483)
-- -- (2,055,057) (26,117) (3,657,749) (66,628) (1,829,560) (734,084)
-- -- (1,179,620) (23,306) (154,668) (50,765) (86,688) (38,540)
-- -- -- (2,408) -- (1,350,779) -- (222,299)
-- -- (10,923) -- (6,517) -- (4,188) --
-- -- (47,787) (345) (2,112,455) (749,054) (1,190,119) (673,225)
--------------------------------------------------------------------------------------------------------------------
(97,874) -- (3,293,387) (78,212) (5,931,389) (2,278,682) (3,110,555) (1,682,631)
982,917 (259,514) 4,609,002 3,132,880 11,517,468 14,365,307 11,986,808 9,854,789
1,391,131 260,465 29,544,850 33,698,178 12,513,598 1,185,815 23,423,730 23,567,324
96,672 189,794 14,712,957 24,885,336 722,264 482,336 433,626 451,153
-- 680,786 -- 2,586,142 -- 4,277,279 -- 7,656,574
337,593 70,000 98,802 70,000 47,756 70,000 215,570 70,000
-- 33,017,910 9,776,441 278,087 6,369,248 5,962,663 19,384,781 81,372,385
7,675 -- 2,040,255 43,277 3,466,491 66,068 1,811,529 736,219
423 -- 1,167,330 29,257 154,548 50,665 74,242 38,196
-- -- -- 4,438 -- 1,302,707 -- 215,589
2,044 -- 10,919 -- 6,515 -- 4,186 --
87,910 -- 47,779 683 2,112,447 804,025 1,190,127 687,713
(484,767) (4,488) (21,150,338) (23,451,422) (8,791,074) (467,769) (22,215,731) (20,561,422)
(118,329) -- (14,358,736) (17,707,407) (236,058) (349,174) (125,101) (153,506)
-- (181,317) -- (134,696) -- (6,110,317) -- (6,910,555)
(130,165) -- (97,015) -- -- -- (85,424) --
-- (22,715,831) (352,817) (5,508) (2,511,137) (3,616,436) (5,943,962) (79,809,601)
-- (247,930) -- (12,090,451) -- (2,709,574) -- (24,843,172)
-- 247,930 -- 12,090,451 -- 2,709,574 -- 24,843,172
--------------------------------------------------------------------------------------------------------------------
1,190,187 11,317,319 21,440,427 20,296,365 13,854,598 3,657,862 18,167,573 7,360,069
--------------------------------------------------------------------------------------------------------------------
2,173,104 11,057,805 26,049,429 23,429,245 25,372,066 18,023,169 30,154,381 17,214,858
11,057,805 -- 23,429,245 -- 63,878,294 45,855,125 56,448,403 39,233,545
--------------------------------------------------------------------------------------------------------------------
$13,230,909 $11,057,805 $49,478,674 $23,429,245 $89,250,360 $63,878,294 $86,602,784 $56,448,403
--------------------------------------------------------------------------------------------------------------------
$ 19,097 $ 64,371 $ (24,910) $ 24,228 $ (187,695) $ (26,399) $ (194,092) $ (61,286)
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND FUND FUND
----------------------------------------------------------------------------------------
SIX MONTHS PERIOD ENDED SIX MONTHS PERIOD ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999*** 2000 (UNAUDITED) 30, 1999*** 2000 (UNAUDITED) 30, 1999
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ (17,450) $ 91,684 $ (55,185) $ (18,086) $ 2,222,746 $ 3,738,566
2,186,232 (113,591) 2,361,666 1,149,765 10,736,973 7,695,420
2,991,379 (43,954) 7,098,980 2,540,165 11,441,378 10,855,622
----------------------------------------------------------------------------------------
5,160,161 (65,861) 9,405,461 3,671,844 24,401,097 22,289,608
----------------------------------------------------------------------------------------
(5,880) -- -- -- (2,169,346) (638,181)
(250) -- -- -- (264,181) (195,368)
-- -- -- -- -- (1,188,354)
(459) -- -- -- (4,264) --
(82,706) -- -- -- (1,416,422) (1,334,185)
-- -- (131,270) -- (4,392,881) (2,732,777)
-- -- (20,058) -- (717,573) (1,006,283)
-- -- -- -- -- (4,382,836)
-- -- (5,643) -- (7,991) --
-- -- (1,099,471) -- (2,514,509) (4,474,829)
----------------------------------------------------------------------------------------
(89,295) -- (1,256,442) -- (11,487,167) (15,952,813)
5,070,866 (65,861) 8,149,019 3,671,844 12,913,930 6,336,795
872,429 109,592 6,128,612 114,859 18,209,440 8,326,786
174,757 146,344 210,331 189,288 2,543,629 4,870,311
-- 568,691 -- 680,644 -- 23,300,754
75,822 70,000 31,597 70,000 2,026,676 70,000
65,998,264 20,512,200 103,136,091 36,168,212 4,013,720 15,731,664
5,872 -- 129,842 -- 6,392,302 3,366,398
250 -- 20,067 -- 927,614 1,124,159
-- -- -- -- -- 5,427,453
459 -- 5,641 -- 12,253 --
82,701 -- 1,099,469 -- 3,930,937 5,809,005
(11,759) -- (260,190) (9) (18,222,520) (8,854,818)
(58,842) (51) (11,803) (398) (1,408,615) (1,181,212)
-- (6,864) -- (7,265) -- (10,237,274)
-- -- -- -- (141,699) --
(65,918,986) (10,400,000)(101,492,389) (26,041,370) (7,130,893) (13,089,905)
-- (110,008) -- (151,399) -- (37,490,879)
-- 110,008 -- 151,399 -- 37,490,879
----------------------------------------------------------------------------------------
1,220,967 10,999,912 8,997,268 11,173,961 11,152,844 34,663,321
----------------------------------------------------------------------------------------
6,291,833 10,934,051 17,146,287 14,845,805 24,066,774 41,000,116
10,934,051 -- 14,845,805 -- 186,190,483 145,190,367
----------------------------------------------------------------------------------------
$17,225,884 $10,934,051 $31,992,092 $14,845,805 $210,257,257 $186,190,483
----------------------------------------------------------------------------------------
$ (64,396) $ 42,349 $ (133,827) $ (78,643) $ 1,275,569 $ 2,907,036
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** For the period September 30, 1998 (inception) through September 30, 1999.
***For the period January 29, 1999 (inception) through September 30, 1999.
</FN>
</TABLE>
109
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (CONTINUED)
CHANGES IN FUND SHARES
<TABLE>
<CAPTION>
GE GE
U.S. PREMIER GROWTH
EQUITY EQUITY
FUND FUND
---------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1999 (UNAUDITED) 30, 1999
---------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
<S> <C> <C> <C> <C>
Shares sold .......................................... 2,354,242 1,736,350 1,420,520 591,449
Issued for distributions reinvested .................. 1,198,423 295,675 104,790 10,840
Shares redeemed ...................................... (1,388,425) (1,156,282) (531,007) (226,666)
Shares redesignated .................................. -- (3,918,249) -- (672,983)
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ............... 2,164,240 (3,042,506) 994,303 (297,360)
---------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold .......................................... 277,183 431,868 573,913 483,216
Issued for distributions reinvested .................. 144,178 69,399 27,092 3,079
Shares redeemed ...................................... (110,680) (121,853) (39,999) (14,847)
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ............... 310,681 379,414 561,006 471,448
---------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold .......................................... -- 1,526,641 -- 1,148,329
Issued for distributions reinvested .................. -- 416,077 -- 24,527
Shares redeemed ...................................... -- (816,120) -- (130,952)
Shares redesignated .................................. -- 3,980,888+ -- 669,969+
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ............... -- 5,107,486 -- 1,711,873
---------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold .......................................... 1,819,046 2,688,715 758,946 1,755,080
Issued for distributions reinvested .................. 1,411,272 936,717 29,162 11,802
Shares redeemed ...................................... (2,334,986) (2,700,838) (813,983) (1,386,491)
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ............... 895,332 924,594 (25,875) 380,391
---------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold .......................................... 138,058 2,217 80,598 2,594
Issued for distributions reinvested .................. 5,719 -- 888 --
Shares redeemed ...................................... (9,543) -- (7,475) --
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ............... 134,234 2,217 74,011 2,594
---------------------------------------------------------------------------------------------------------------
GE GE
VALUE MID-CAP
EQUITY GROWTH
FUND FUND
----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1999 (UNAUDITED) 30, 1999
----------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
Shares sold ......................................... 1,532,777 1,955,637 923,945 1,561,898
Issued for distributions reinvested ................. 168,215 57,746 -- --
Shares redeemed ..................................... (1,295,750) (1,624,075) (982,327) (1,440,010)
Shares redesignated ................................. -- 604,899 -- 344,777
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .............. 405,242 994,207 (58,382) 466,665
----------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold ......................................... 299,139 560,010 41,298 139,605
Issued for distributions reinvested ................. 264,147 158,124 -- --
Shares redeemed ..................................... (697,897) (984,873) (363,884) (921,219)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .............. (134,611) (266,739) (322,586) (781,614)
----------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold ......................................... -- 447,938 -- 334,526
Issued for distributions reinvested ................. -- 10,838 -- --
Shares redeemed ..................................... -- (100,254) -- (200,410)
Shares redesignated ................................. -- (591,470) -- (334,859)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .............. -- (232,948) -- (200,743)
----------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold ......................................... 249,569 239,887 2,422 101,644
Issued for distributions reinvested ................. 10,084 6,499 -- --
Shares redeemed ..................................... (195,930) (218,737) (80,634) (77,172)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .............. 63,723 27,649 (78,212) 24,472
----------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold ......................................... 47,003 5,863 1,135 7,919
Issued for distributions reinvested ................. 1,572 -- -- --
Shares redeemed ..................................... (6,314) -- (1) --
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares .............. 42,261 5,863 1,134 7,919
----------------------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** For the period September 30, 1998 (inception) through September 30, 1999.
*** For the period January 29, 1999 (inception) through September 30, 1999.
+ Class C shares were renamed Class A as a result of the redesignation. See
Note 10 of the Notes to Financial Statements.
</FN>
</TABLE>
-----------------
See Notes to Financial Statements.
110
<PAGE>
<TABLE>
<CAPTION>
GE GE GE GE
MID-CAP SMALL-CAP GLOBAL INTERNATIONAL
VALUE EQUITY VALUE EQUITY EQUITY EQUITY
FUND FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS PERIOD ENDED SIX MONTHS PERIOD ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999* 2000 (UNAUDITED) 30, 1999** 2000 (UNAUDITED) 30, 1999 2000 (UNAUDITED) 30, 1999
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
138,033 24,768 2,204,877 2,949,640 445,361 48,986 1,153,187 1,334,667
742 -- 174,829 3,803 133,020 3,004 95,394 44,756
(49,136) (431) (1,565,348) (1,975,102) (311,393) (19,835) (1,090,074) (1,147,351)
-- (24,337) -- (978,341) -- (104,616) -- (1,353,542)
------------------------------------------------------------------------------------------------------------------------------
89,639 -- 814,358 -- 266,988 (72,461) 158,507 (1,121,470)
------------------------------------------------------------------------------------------------------------------------------
9,879 18,136 1,096,283 2,198,692 26,718 20,327 21,834 26,476
41 -- 100,806 2,571 6,182 2,351 4,073 2,374
(11,556) -- (1,069,999) (1,497,662) (8,632) (15,003) (6,569) (9,142)
------------------------------------------------------------------------------------------------------------------------------
(1,636) 18,136 127,090 703,601 24,268 7,675 19,338 19,708
------------------------------------------------------------------------------------------------------------------------------
-- 65,504 -- 233,146 -- 175,894 -- 427,459
-- -- -- 390 -- 58,628 -- 12,987
-- (17,755) -- (12,291) -- (260,820) -- (386,521)
-- 24,278+ -- 976,454+ -- 103,261+ -- 1,338,822+
------------------------------------------------------------------------------------------------------------------------------
-- 72,027 -- 1,197,699 -- 76,963 -- 1,392,747
------------------------------------------------------------------------------------------------------------------------------
-- 3,042,212 720,741 24,419 225,883 244,044 898,605 4,815,998
8,477 -- 4,084 60 81,061 36,266 62,213 41,255
-- (2,015,343) (25,637) (441) (89,704) (149,704) (287,173) (4,679,403)
------------------------------------------------------------------------------------------------------------------------------
8,477 1,026,869 699,188 24,038 217,240 130,606 673,645 177,850
------------------------------------------------------------------------------------------------------------------------------
32,725 7,165 7,628 5,790 1,737 2,809 10,773 3,964
199 -- 943 -- 261 -- 230 --
(12,981) -- (7,066) -- -- -- (4,179) --
------------------------------------------------------------------------------------------------------------------------------
19,943 7,165 1,505 5,790 1,998 2,809 6,824 3,964
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GE GE GE
EUROPE EMERGING STRATEGIC
EQUITY MARKETS INVESTMENT
FUND FUND FUND
-----------------------------------------------------------------------------------------------
SIX MONTHS PERIOD ENDED SIX MONTHS PERIOD ENDED SIX MONTHS YEAR ENDED
ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER ENDED MARCH 31, SEPTEMBER
2000 (UNAUDITED) 30, 1999*** 2000 (UNAUDITED) 30, 1999*** 2000 (UNAUDITED) 30, 1999
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
69,485 10,935 324,780 11,173 711,291 331,745
520 -- 8,371 -- 257,128 142,765
(856) -- (12,251) -- (712,477) (353,840)
-- (10,935) -- (11,173) -- (1,481,299)
-----------------------------------------------------------------------------------------------
69,149 -- 320,900 -- 255,942 (1,360,629)
-----------------------------------------------------------------------------------------------
13,429 14,584 10,733 16,837 101,145 197,491
22 -- 1,302 -- 38,126 48,393
(4,712) (5) (15) (29) (56,246) (48,091)
-----------------------------------------------------------------------------------------------
8,739 14,579 12,020 16,808 83,025 197,793
-----------------------------------------------------------------------------------------------
-- 57,157 -- 56,204 -- 924,935
-- -- -- -- -- 229,489
-- (727) -- (573) -- (405,876)
-- 10,918+ -- 11,157+ -- 1,474,104+
-----------------------------------------------------------------------------------------------
-- 67,348 -- 66,788 -- 2,222,652
-----------------------------------------------------------------------------------------------
5,095,523 2,010,800 5,419,649 3,035,431 156,585 630,397
7,312 -- 70,706 -- 158,123 245,520
(5,089,889) (1,000,000) (5,341,572) (2,023,770) (279,045) (518,456)
-----------------------------------------------------------------------------------------------
12,946 1,010,800 148,783 1,011,661 35,663 357,461
-----------------------------------------------------------------------------------------------
5,077 7,085 1,756 5,185 81,515 2,863
41 -- 366 -- 507 --
-- -- -- -- (5,514) --
-----------------------------------------------------------------------------------------------
5,118 7,085 2,122 5,185 76,508 2,863
-----------------------------------------------------------------------------------------------
</TABLE>
111
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GE GE
FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
-----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1999 (UNAUDITED) 30, 1999
-----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income/(loss) ................................ $ 3,993,767 $ 6,918,570 $ 8,715,088 $19,990,938
Net realized gain (loss) on investments,
futures, written options, and foreign
currency related transactions ............................ (2,783,606) (1,557,765) (3,792,683) (3,802,551)
Net increase (decrease) in unrealized appreciation/depreciation 1,166,034 (6,970,326) 1,267,433 (25,805,402)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations ..................... 2,376,195 (1,609,521) 6,189,838 (9,617,015)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................... (2,719,783) (1,759,290) (1,987,253) (1,826,244)
Class B ................................................... (70,933) (105,975) (7,454,638) (20,205,547)
Class C ................................................... -- (3,068,814) -- (287,474)
Class C (level load) ...................................... (2,312) -- (2,137) --
Class Y ................................................... (1,188,753) (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 ........................................... (3,981,781) (6,962,167) (9,444,028) (22,649,831)
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations and distributions (1,605,586) (8,571,688) (3,254,190) (32,266,846)
-----------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Proceeds from sale of shares
Class A ................................................... 15,992,330 16,074,155 36,964,544 18,299,359
Class B ................................................... 417,736 1,661,775 583,088 1,564,140
Class C ................................................... -- 25,941,359 -- 8,984,911
Class C (level load) ...................................... 125,790 70,000 8,095 70,000
Class Y ................................................... 33,784,927 32,062,979 -- --
Value of distributions reinvested
Class A ................................................... 2,374,468 1,744,421 1,333,598 1,212,950
Class B ................................................... 64,117 92,742 4,003,484 11,006,743
Class C ................................................... -- 2,520,894 -- 257,463
Class C (level load) ...................................... 2,200 -- 2,122 --
Class Y ................................................... 1,158,125 2,015,869 -- --
Cost of shares redeemed
Class A ................................................... (16,057,361) (19,846,087) (11,803,843) (7,089,591)
Class B ................................................... (765,956) (604,323) (75,693,429) (113,282,929)
Class C ................................................... -- (13,270,795) -- (1,741,911)
Class C (level load) ...................................... (70,472) -- (69,425) --
Class Y ................................................... (10,219,226) (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 ............... 26,806,678 22,864,430 (44,671,766) (80,718,865)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....................... 25,201,092 14,292,742 (47,925,956) (112,985,711)
NET ASSETS
Beginning of year ............................................. 131,292,636 116,999,894 312,202,182 425,187,893
-----------------------------------------------------------------------------------------------------------------------------------
End of year ................................................... $156,493,728 $131,292,636 $264,276,226 $312,202,182
-----------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF YEAR ........................................... $ 272,603 $ 260,617 $(1,005,511) $ (276,571)
</TABLE>
----------------
See Notes to Financial Statements.
112
<PAGE>
<TABLE>
<CAPTION>
GE GE
SHORT-TERM GE HIGH
GOVERNMENT TAX-EXEMPT YIELD
FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED FOR THE
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 PERIOD ENDED
(UNAUDITED) 30, 1999 (UNAUDITED) 30, 1999 (UNAUDITED) SEPTEMBER 30, 1999*
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 933,926 $1,202,021 $ 553,148 $ 1,294,730 $ 1,070,983 $ 1,185,368
(183,335) 116,762 (224,913) (161,812) 43,341 (160,680)
(172,587) (670,369) (82,206) (1,896,136) (655,735) (880,771)
-------------------------------------------------------------------------------------------------------------------------
578,004 648,414 246,029 (763,218) 458,589 143,917
-------------------------------------------------------------------------------------------------------------------------
(627,647) (419,703) (415,608) (271,001) (144,331) (5,379)
(13,093) (30,624) (135,211) (307,436) (18,959) (5,478)
-- (470,958) -- (715,149) -- (60,256)
(2,819) -- (1,724) (22,514) --
(291,205) (283,959) (605) (1,147) (900,180) (1,114,255)
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
(25,818) (38,417) -- -- -- --
(541) (3,579) -- -- -- --
-- (37,788) -- -- -- --
(115) -- -- -- -- --
(3,090) (32,682) -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
(964,328) (1,317,710) (553,148) (1,294,733) (1,085,984) (1,185,368)
(386,324) (669,296) (307,119) (2,057,951) (627,395) (1,041,451)
6,663,338 3,527,565 2,968,203 749,798 5,217,096 140,749
240,329 295,325 305,758 603,787 807,381 171,010
-- 6,646,546 -- 12,388,023 -- 1,949,270
361,667 70,000 100,075 70,000 1,119,628 70,000
51,585,505 1,694,190 -- -- 2,552,936 20,000,160
603,804 441,082 318,177 54,219 97,415 4,971
11,365 29,138 94,388 214,362 7,246 5,225
-- 467,900 -- 624,445 -- 28,202
2,758 -- 1,654 -- 10,784 --
252,996 316,658 601 1,142 891,751 1,095,962
(10,349,762) (1,686,423) (7,375,489) (294,952) (726,018) --
(256,211) (557,985) (1,492,590) (1,970,806) (113,472) (16,486)
-- (2,909,386) -- (6,244,697) -- (126,444)
(316,627) -- (70,507) -- (21,347) --
(1,168,089) (8,149,832) (3) (6) -- --
-- (10,939,300) -- 16,384,881 -- (140,479)
-- 10,939,300 -- (16,384,881) -- 140,479
-------------------------------------------------------------------------------------------------------------------------
47,631,073 184,778 (5,149,733) 6,195,315 9,843,400 23,322,619
47,244,749 (484,518) (5,456,852) 4,137,364 9,216,005 22,281,168
26,957,084 27,441,602 29,590,965 25,453,601 22,281,168 --
-------------------------------------------------------------------------------------------------------------------------
$74,201,833 $26,957,084 $24,134,113 $29,590,965 $31,497,173 $22,281,168
-------------------------------------------------------------------------------------------------------------------------
$ 20,835 $ 21,673 $ 76,820 $ 76,821 $ 4,809 $ 19,810
</TABLE>
<TABLE>
<CAPTION>
GE
MONEY
MARKET
FUND**
--------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1999
--------------------------------------
<S> <C> <C>
$ 5,857,555 $ 7,997,170
-- --
-- --
--------------------------------------
5,857,555 7,997,170
--------------------------------------
(5,857,555) (7,998,158)
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--------------------------------------
(5,857,555) (7,998,158)
-- (988)
257,342,057 368,131,388
-- --
-- --
-- --
-- --
5,492,266 7,631,458
-- --
-- --
-- --
(228,159,794) (333,271,857)
-- --
-- --
-- --
-- --
-- --
-- --
--------------------------------------
34,674,529 42,490,989
34,674,529 42,490,001
196,155,299 153,665,298
--------------------------------------
$230,829,828 $196,155,299
--------------------------------------
$ 59,092 $ 59,091
</TABLE>
* 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.
113
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
CHANGES IN FUND SHARES
<TABLE>
<CAPTION>
GE GE
FIXED GOVERNMENT
INCOME SECURITIES
FUND FUND
---------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1999 (UNAUDITED) 30, 1999
---------------------------------------------------------------------------------------------------------------------
CLASS A (NOTE 10):
<S> <C> <C> <C> <C>
Shares sold by subscription .............................. 1,375,251 1,309,417 4,623,672 2,201,504
Issued for distributions reinvested ...................... 204,888 144,112 166,804 143,852
Shares redeemed .......................................... (1,385,534) (1,640,540) (1,475,957) (847,660)
Shares redesignated ...................................... -- (2,632,817) -- 992,629
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ................... 194,605 (2,819,828) 3,314,519 2,490,325
---------------------------------------------------------------------------------------------------------------------
CLASS B:
Shares sold by subscription .............................. 35,823 137,143 72,077 181,816
Issued for distributions reinvested ...................... 5,530 7,685 496,956 1,290,547
Shares redeemed .......................................... (66,272) (50,180) (9,393,680)(13,346,412)
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ................... (24,919) 94,648 (8,824,647)(11,874,049)
---------------------------------------------------------------------------------------------------------------------
CLASS C (NOTE 10):
Shares sold by subscription .............................. -- 2,128,616 -- 895,961
Issued for distributions reinvested ...................... -- 208,804 -- 26,136
Shares redeemed .......................................... -- (1,093,325) -- (175,695)
Shares redesignated ...................................... -- 2,630,335+ -- (839,779)
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ................... -- 3,874,430 -- (93,377)
---------------------------------------------------------------------------------------------------------------------
CLASS Y:
Shares sold by subscription .............................. 2,925,714 2,627,378 -- --
Issued for distributions reinvested ...................... 99,977 166,900 -- --
Shares redeemed .......................................... (882,300) (2,117,582) -- --
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ................... 2,143,391 676,696 -- --
---------------------------------------------------------------------------------------------------------------------
CLASS C (LEVEL LOAD):
Shares sold by subscription ............................. 10,876 5,947 996 8,537
Issued for distributions reinvested ...................... 190 -- 264 --
Shares redeemed .......................................... (6,096) -- (8,636) --
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in fund shares ................... 4,970 5,947 (7,376) 8,537
---------------------------------------------------------------------------------------------------------------------
<FN>
* For the period December 31, 1998 (inception) through September 30, 1999.
** GE Money Market Fund is a no load Fund offering only one class of shares to all
investors.
+ Class C shares were renamed Class A as a result of the redesignation.
See Note 10 of the Notes to Financial Statements.
</FN>
</TABLE>
----------------
See Notes to Financial Statements.
114
<PAGE>
<TABLE>
<CAPTION>
GE GE GE
SHORT-TERM GE HIGH MONEY
GOVERNMENT TAX-EXEMPT YIELD MARKET
FUND FUND FUND FUND**
----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED FOR THE SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 SEPTEMBER MARCH 31, 2000 PERIOD ENDED MARCH 31, 2000 SEPTEMBER
(UNAUDITED) 30, 1998 (UNAUDITED) 30, 1998 (UNAUDITED) SEPTEMBER 30, 1999* (UNAUDITED) 30, 1998
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
571,582 298,453 271,308 65,078 544,334 14,219 257,342,056 368,126,450
51,937 37,352 29,051 4,762 10,180 505 5,492,266 7,630,908
(891,470) (142,583) (670,063) (25,923) (75,381) -- (228,159,794) (333,266,918)
-- (934,532) -- 1,467,916 -- (14,724) -- --
----------------------------------------------------------------------------------------------------------------------------------
(267,951) (741,310) (369,704) 1,511,833 479,133 -- 34,674,528 42,490,440
----------------------------------------------------------------------------------------------------------------------------------
20,698 24,906 28,034 51,615 84,217 17,336 -- --
979 2,467 8,620 18,557 756 532 -- --
(22,015) (47,118) (136,310) (170,051) (11,849) (1,725) -- --
----------------------------------------------------------------------------------------------------------------------------------
(338) (19,745) (99,656) (99,879) 73,124 16,143 -- --
----------------------------------------------------------------------------------------------------------------------------------
-- 563,042 -- 1,014,919 -- 198,263 -- --
-- 39,627 -- 52,155 -- 2,898 -- --
-- (246,049) -- (532,407) -- (13,248) -- --
-- 933,786+ -- (1,412,373) -- 14,728+ -- --
----------------------------------------------------------------------------------------------------------------------------------
-- 1,290,406 -- (877,706) -- 202,641 -- --
----------------------------------------------------------------------------------------------------------------------------------
4,450,818 143,939 -- -- 267,052 2,000,016 -- --
21,834 26,772 53 95 93,062 111,460 -- --
(100,728) (688,818) -- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
4,371,924 (518,107) 53 95 360,114 2,111,476 -- --
----------------------------------------------------------------------------------------------------------------------------------
31,067 5,983 9,190 6,289 115,818 7,345 -- --
238 -- 151 -- 1,128 -- -- --
(27,210) -- (6,416) -- (2,237) -- -- --
----------------------------------------------------------------------------------------------------------------------------------
4,095 5,983 2,925 6,289 114,709 7,345 -- --
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
1. ORGANIZATION OF THE FUNDS
GE Funds (the "Trust") is registered under the Investment Company Act of 1940,
as amended, (the "1940 Act") as an open-end management investment company. The
Trust was organized as a Massachusetts business trust on August 10, 1992, and is
authorized to issue an unlimited number of shares. It is comprised of eighteen
investment portfolios (each a "Fund" and collectively the "Funds"), although
only the following seventeen are currently being offered: GE U.S. Equity Fund,
GE Premier Growth Equity Fund, GE Value Equity Fund, GE Mid-Cap Growth Fund, GE
Mid-Cap Value Equity Fund, GE Small-Cap Value Equity Fund, GE Global Equity
Fund, GE International Equity Fund, GE Europe Equity Fund, GE Emerging Markets
Fund, GE Strategic Investment Fund, GE Fixed Income Fund, GE Government
Securities Fund, GE Short-Term Government Fund, GE Tax-Exempt Fund, GE High
Yield Fund and GE Money Market Fund. The Funds (except GE Money Market Fund) are
presently authorized to issue four classes of shares. As of March 31, 2000, each
Fund had four share classes active, except for GE Government Securities Fund,
which had only three share 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 Premier Growth GE Government
Equity Fund Securities Fund
GE Value Equity Fund GE Tax-Exempt Fund
GE Mid-Cap Growth Fund GE High Yield Fund
GE Mid-Cap Value
Equity Fund
GE Small-Cap Value
Equity Fund
GE Global Equity Fund
GE International
Equity Fund
GE Europe Equity Fund
5.75% 4.25% 2.50%
--------------------------------------------------------------------------------
GE Emerging
Markets Fund
GE Strategic
Investment Fund
There is no front-end sales load imposed on individual purchases of Class A
shares of $1 million or more. The front-end sales charge is also waived in other
instances as described in the Funds' prospectus.
MAXIMUM CONTINGENT DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS OF CLASS B
SHARES (AS A PERCENTAGE OF REDEMPTION PROCEEDS) WITHIN THE FIRST YEAR ARE:
3.00% 4.00%
--------------------------------------------------------------------------------
GE Fixed Income Fund GE U.S. Equity Fund
GE Government Securities Fund GE Premier Growth Equity Fund
GE Short-Term Government Fund GE Value Equity Fund
GE Tax-Exempt Fund GE Mid-Cap Growth Fund
GE High Yield Fund GE Mid-Cap Value Equity Fund
GE Small-Cap Value Equity Fund
GE Global Equity Fund
GE International Equity Fund
GE Europe Equity Fund
GE Emerging Markets Fund
GE Strategic Investment Fund
Except as described in the next paragraph, the maximum contingent deferred sales
charge for Class B redemptions for all Funds are as follows: within the second
year -- 3.00%; within the third year -- 2.00%; within the fourth year -- 1.00%
and within the fifth year and thereafter --0.00%.
The maximum contingent deferred sales charge for Class B redemptions from shares
acquired, either by purchase or exchange, as a result of the combination on
September 26, 1997 of the Investors Trust Funds, with the GE Funds is as
follows: 5.00% within the first year, 4.00% within the second year, 3.00% within
the third year, 2.00% within the fourth year, 1.00% within the fifth year, and
0.00% thereafter.
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.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
No front-end or contingent deferred sales charges are assessed by the Trust with
respect to Class Y shares or shares of GE Money Market Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions at
the date of the financial statements. Actual results may differ from those
estimates.
The following summarizes the significant accounting policies of the Trust:
SECURITY VALUATION AND TRANSACTIONS
Securities for which exchange (or NASDAQ) quotations are readily available are
valued at the last sale price, or if no sales occurred on that day, at the last
quoted bid price. Certain fixed income securities are valued by a dealer or by a
pricing service based upon a matrix system, which considers market transactions
as well as dealer supplied valuations. Valuations for municipal bonds are based
on prices obtained from a qualified municipal bond pricing service; such prices
represent the mean of the bid and ask of the secondary market. Short-term
investments maturing within 60 days are valued at amortized cost or original
cost plus accrued interest, both of which approximate current value. Fund
positions that cannot be valued as set forth above are valued at fair value
determined in good faith under procedures approved by the Board of Trustees of
the Funds.
In accordance with Rule 2a-7 of the 1940 Act, GE Money Market Fund values
securities initially at cost and, thereafter, securities are assumed to have a
constant amortization to maturity of any discount or premium. Amortized cost
approximates fair value.
Security transactions are accounted for as of the trade date. Realized gains and
losses on investments sold are recorded on the basis of identified cost for both
financial statement and federal tax purposes.
Each Fund's income, expenses (other than distribution fees) and realized and
unrealized gains and losses are allocated proportionally each day among the
classes based upon the relative net assets of each class.
REPURCHASE AGREEMENTS
Each of the Funds may enter into repurchase agreements. The Funds' custodian
takes possession of the collateral pledged for investments in repurchase
agreements on behalf of the Funds. The Funds value the underlying collateral
daily on a mark-to-market basis to determine that the value, including accrued
interest, is at least equal to 102% of the repurchase price. In the event the
seller defaults and the value of the security declines, or if the seller enters
an insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
SECURITY LENDING
The Funds may loan securities to brokers, dealers, and financial institutions
determined by GEAM to be creditworthy, subject to certain limitations. The Funds
receive compensation in the form of fees in addition to the interest and
dividends on the loaned securities during the term of the loan. The loans of
securities are secured by collateral in the form of cash or other liquid assets,
which are segregated and maintained with the custodian in an amount at least
equal to 102% of the current market value of the loaned securities. During the
term of the loan, the Funds will receive any gain or loss in the market value of
its loaned securities and of securities in which cash collateral is invested net
of any rebate. In the event the counter party (borrower) does not meet its
contracted obligation to return the securities, the Fund may be exposed to the
risk of loss of reacquiring the loaned securities at prevailing market prices
using the proceeds of the sale of the collateral.
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in foreign currency are
translated to U.S. dollars at the prevailing rates of exchange at period end.
Purchases and sales of securities, income receipts and expense payments
denominated in foreign currencies are translated into U.S. dollars at the
prevailing exchange rate on the respective dates of such transactions.
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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
Each of the Funds, other than GE Small-Cap Value Equity Fund and GE Money Market
Fund, may invest in financial futures contracts and each of the Funds, other
than GE Money Market Fund, may purchase and write options, subject to certain
limitations. The Funds may invest in futures and options contracts to manage
their exposure to the stock and bond markets and fluctuations in currency
values. Buying futures, writing puts and buying calls tend to increase a Fund's
exposure to the underlying instrument. Selling futures, buying puts and writing
calls tend to decrease a Fund's exposure to the underlying instrument, or hedge
other Fund investments. A Fund will not enter into a transaction involving
futures and options on futures for speculative purposes. The Fund's risks in
using these contracts include changes in the value of the underlying
instruments, non-performance of the counter parties under the contracts' terms
and changes in the liquidity of secondary market for the contracts. Futures
contracts are valued at the settlement price established each day by the board
of trade or exchange on which they principally trade. Options are valued at the
last sale price, or if no sales occurred on that day, at the last quoted bid
price.
Upon entering into a financial futures contract, the Funds are required to
pledge to the broker an amount of cash and/or other assets equal to a certain
percentage of the contract amount, know as initial margin deposit. Subsequent
payments, known as variation margins, are made or received by the Funds each
day, depending on the daily fluctuation in the fair value of the underlying
security. The Funds record an unrealized gain or loss equal to the daily
variation margin. Should market conditions move unexpectedly, the Fund may not
achieve the anticipated benefits of the financial futures contracts and may
incur a loss. The Funds recognize a realized gain or loss on the expiration or
closing of a futures contract.
When a Fund writes an option, the amount of the premium received is recorded as
a liability and is subsequently adjusted to the current fair value of the option
written. Premiums received from writing options that expire unexercised are
treated by the Funds on the expiration date as realized gains from investments.
The difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain, or if the premium is less than the amount paid for the closing
purchase, as a realized loss. When an option is exercised, the proceeds from the
sale of the underlying security or the cost basis of the securities purchased is
adjusted by the original premium received or paid.
SWAP CONTRACTS
The Funds may engage in swap transactions, specifically interest rate, currency,
equity, index and total return swaps as part of their investment strategies.
Swaps involve the exchange by the Funds with another party of their respective
commitments to pay or receive interest, effective return or total return
throughout the lives of the agreements. The interest, effective return or total
return to be paid or received on swaps is recognized as net interest expense or
net interest income on the Statement of Operations over the life of the
agreement, while related payables and receivables are recorded gross on the
Statement of Assets and Liabilities. Unrealized gains are reported as assets and
unrealized losses are reported as liabilities on the Statement of Assets and
Liabilities. A realized gain or loss is recorded upon termination of the swap
agreement. Swap agreements are stated at fair value. Notional principal amounts
are used to express
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
the extent of involvement in these transactions, but the amounts potentially
subject to credit risk are much smaller.
WHEN-ISSUED SECURITIES AND FORWARD COMMITMENTS
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. These transactions are arrangements in which the Funds purchase and sell
securities with payment and delivery scheduled a month or more after entering
into the transaction. The price of the underlying securities and the date when
these securities will be delivered and paid for are fixed at the time the
transaction is negotiated. Losses may arise due to changes in the market value
of the underlying securities or if the counter party 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 foreign currency related transactions
gains or losses. The Fund's risks in using these contracts include changes in
the value of foreign currency or the possibility that the counter parties 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 March 31, 2000, the GE Emerging Markets Fund
has recorded an accrual in the amount of $49,295 for capital gains taxes
incurred, and a deferred tax accrual of $304,625 in respect of unrealized
appreciation on applicable investments in securities. These accruals are
included in net realized and unrealized gain (loss) on investments in the
Statements of Operations.
INCOME TAXES
The Funds intend to comply with all sections of the Internal Revenue Code
applicable to regulated investment companies including the distribution of
substantially all of their taxable net investment income, tax-exempt income, and
net realized capital gains to their shareholders. Therefore, no provision for
federal income tax has been made. Each Fund is treated as a separate taxpayer
for federal income tax purposes.
As of September 30, 1999, the following Funds have capital loss carryovers as
indicated below. The capital loss carry-
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
over 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 there
under. To the extent that these carryover losses are used to offset future
capital gains, it is probable that the gains so offset will not be distributed
to shareholders because they would be taxable as ordinary income.
FUND AMOUNT EXPIRES
--------------------------------------------------------------------------------
GE Tax-Exempt Fund $ 333,580 2004
GE Fixed Income Fund 182,527 2003
38,636 2004
445,270 2005
GE Government Securities Fund 78,123,796 2002
107,525,597 2003
1,748,819 2004
GE Money Market Fund 3,153 2003
5,688 2005
GE Mid-Cap Growth Fund 1,693,901 2007
Any net capital and currency losses incurred after October 31, within each
Fund's tax year, are deemed to arise on the first day of the Fund's next tax
year if the Fund so elects to defer such losses.
The Funds incurred and elected to defer losses incurred after October 31, 1998
as follows:
Fund Currency Capital
--------------------------------------------------------------------------------
GE International Equity Fund $ 98,758 $ --
GE Global Equity Fund 93,760 --
GE U.S. Equity Fund 8,578 --
GE Value Equity Fund 319 --
GE Strategic Investment Fund 56,102 --
GE Tax-Exempt Fund -- 256,556
GE Fixed Income Fund 14 1,980,977
GE Government Securities Fund -- 6,418,299
GE Short-Term Government Fund -- 7,435
GE Mid-Cap Value Equity Fund -- 122,073
GE High Yield Fund -- 180,490
GE Europe Equity Fund 56,979 49,786
GE Emerging Markets Fund 101,105 --
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 carry forwards distributions
annually. The character of income and gains to be distributed is determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles. These differences include treatment of realized and
unrealized gains and losses on forward foreign currency contracts, paydown gains
and losses on mortgage-backed securities, and losses deferred due to wash sale
transactions. Reclassifications are made to the Funds' capital accounts to
reflect income and gains available for distribution (or available capital loss
carryovers) under income tax regulations. These reclassifications have no impact
on net investment income, realized gains or losses, or net asset value of the
Funds. The calculation of net investment income per share in the Financial
Highlights table excludes these adjustments. GE Government Securities Fund will
declare a distribution each day in an amount based on periodic projections of
its future net investment income. Consequently, the amount of each daily
distribution may differ from actual net investment income.
INVESTMENT INCOME
Corporate actions (including cash dividends) are recorded on the ex-dividend
date, net of applicable withholding taxes, except for certain foreign corporate
actions, which are recorded as soon after ex-dividend date as such information
becomes available. Interest income is recorded on the accrual basis. All
discounts and premiums on taxable bonds and discounts and premiums on tax-exempt
bonds are amortized to call or maturity date, whichever is shorter, using the
effective yield method. For tax-exempt bonds purchased on or after May 1, 1993,
both market discount and original issue discount are amortized.
EXPENSES
Expenses of the Trust, which are directly identifiable to a specific Fund, are
allocated to that Fund. Expenses, which
120
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NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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 Funds have been deferred and are being
amortized on a straight-line basis over a period of five years from commencement
of investment operations.
3. SECURITY LENDING
At March 31, 2000, the following funds participated in securities lending:
LOANED SECURITIES
(INCLUDING CASH LETTER OF
ACCRUED INTEREST) COLLATERAL CREDIT
--------------------------------------------------------------------------------
GE Fixed Income
Fund: $ 6,719,082 $ 6,705,969 $ 76,153
GE Government
Securities Fund: $ 9,658,173 $ 9,513,478 $ 235,309
GE Short-Term
Gov't. Fund: $16,055,845 $16,258,975 $ --
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 Premier Growth Equity Fund .60% .30%
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 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 Strategic Investment Fund .35% .30%
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 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.
DISTRIBUTION AND SHAREHOLDER SERVICING FEES
The Funds have adopted a Shareholder Servicing and Distribution Plan ("the
Plan") pursuant to Rule 12b-1 under the 1940 Act with respect to each Fund
except the GE Money Market Fund. Each Fund pays GE Investment Distributors, Inc.
("GEID"), a wholly-owned subsidiary of GE Financial Assurance Holdings, Inc. (an
indirect wholly-owned subsidiary of General Electric Company) and the Funds'
principal underwriter, a monthly fee for distribution and/or shareholder
services provided, at an annual rate of the average daily net assets
attributable to each applicable class of shares. The annual rates applicable
are: 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.
121
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NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
GEID has agreed that once Class B shares automatically convert to Class A
shares, six years after the date of purchase (eight years in the case of shares
acquired or exchanged from shares of Investors Trust Funds), such shareholders
will 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 March 31, 2000, the Trust was informed that GEID acting as
underwriter received net commissions of $106,378 from the sale of Class A shares
and $164,086 in contingent deferred sales charges from redemptions of Class A
and Class B shares.
5. SUB-ADVISORY FEES
Pursuant to investment sub-advisory agreements with 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; and Miller Anderson & Sherrerd,
LLP ("MAS") is the sub-adviser to the GE High Yield Fund.
Brown Brothers, Palisade, NWQ and MAS are responsible for the day-to-day
portfolio management of the assets of the GE Tax-Exempt Fund, the GE Small-Cap
Value Equity Fund, the GE Mid-Cap Value Equity Fund and the GE High Yield Fund,
respectively, including the responsibility for making decisions to buy, sell or
hold a particular security, under the general supervision of GEAM and the Board.
For their services, GEAM pays Brown Brothers, Palisade, NWQ and MAS monthly
sub-advisory fees, which are calculated as a percentage of the average daily net
assets of the respective funds.
6. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at March 31, 2000, were as follows:
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
--------------------------------------------------------------------------------
GE U.S. Equity Fund $201,089,479 $39,380,119 $161,709,360
GE Premier Growth 44,063,583 6,564,795 37,498,788
Equity Fund
GE Value Equity
Fund 25,014,171 4,223,332 20,790,839
GE Mid-Cap
Growth Fund 15,107,367 3,736,879 11,370,488
GE Mid-Cap Value
Equity Fund 2,660,912 1,478,207 1,182,705
GE Small-Cap Value
Equity Fund 5,483,117 2,741,371 2,741,746
GE Global Equity
Fund 17,392,483 3,106,299 14,286,184
GE International
Equity Fund 14,754,993 3,547,540 11,207,453
GE Europe Equity
Fund 3,837,153 889,489 2,947,664
GE Emerging
Markets Fund 10,664,458 721,332 9,943,126
GE Strategic
Investment Fund 45,090,052 6,984,221 38,105,831
GE Fixed Income
Fund 506,834 3,393,040 (2,886,206)
GE Government
Securities Fund 6,852,349 10,243,216 (3,390,867)
GE Short-Term
Government Fund 4,843 433,344 (428,501)
GE Tax-Exempt Fund 130,940 667,669 (536,729)
GE High Yield Fund 461,650 2,038,722 (1,577,072)
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at March 31, 2000.
7. OPTIONS
During the period ended March 31, 2000, the following option contracts were
written:
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NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
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
March 31, 2000 -- $ -- -- $ --
--------------------------------------------------------------------------------
GE GOVERNMENT GE SMALL CAP
SECURITIES FUND VALUE FUND
--------------------------------------------------------------------------------
NUMBER NUMBER
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
--------------------------------------------------------------------------------
Balance as of
September 30, 1999 -- $ -- -- $ --
Written 6,430 14,066 430 189,190
Closed and Expired (6,430) (14,066) (179) (53,882)
Exercised -- -- (251) (135,309)
--------------------------------------------------------------------------------
Balance as of
March 31, 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 March 31, 2000, were as
follows:
PURCHASES SALES
--------------------------------------------------------------------------------
GE U.S. Equity Fund $228,762,652 $190,280,027
GE Premier Growth
Equity Fund 55,588,612 14,225,981
GE Value Equity Fund 23,264,075 20,847,179
GE Mid-Cap Growth Fund 3,428,770 8,716,328
GE Mid-Cap Value Equity Fund 3,135,240 2,231,103
GE Small-Cap Value
Equity Fund 51,796,355 35,098,027
GE Global Equity Fund 41,376,655 34,445,760
GE International Equity Fund 38,228,884 3,322,999
GE Europe Equity Fund 7,166,808 6,278,092
GE Emerging Markets Fund 12,974,247 5,128,114
PURCHASES SALES
--------------------------------------------------------------------------------
GE Strategic
Investment Fund $108,373,791 $110,095,312
GE Fixed Income Fund 181,726,219 155,898,473
GE Government
Securities Fund 89,049,106 109,164,944
GE Short-Term
Government Fund 95,829,508 50,848,562
GE Tax-Exempt Fund 5,847,059 10,707,918
GE High Yield Fund 12,789,354 3,139,699
Open swap transactions held by the Funds consisted of the following as of March
31, 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, 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, expires June 30, 2000. $2,200,000
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 March 31, 2000 are:
123
<PAGE>
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (UNAUDITED)
5% OR GREATER SHAREHOLDERS
------------------------- % OF FUND HELD
NUMBER % OF FUND HELD BY GE AFFILIATES*
--------------------------------------------------------------------------------
GE U.S. Equity Fund 3 23% 23%
GE Premier Growth
Equity Fund 2 11% 11%
GE Value
Equity Fund 1 6% 6%
GE Mid-Cap
Growth Fund 1 19% 19%
GE Mid-Cap
Value Fund 1 83% 83%
GE Small-Cap
Value Equity Fund 4 57% 57%
GE Global
Equity Fund 2 34% --
GE International
Equity Fund 5 42% 42%
GE Europe
Equity Fund 1 86% 86%
GE Emerging
Markets Fund 1 68% 68%
GE Strategic
Investment Fund 2 18% --
GE Fixed
Income Fund 3 29% 29%
GE Short-Term
Government Fund 2 74% 5%
GE Tax-Exempt
Fund 1 8% --
GE High
Yield Fund 3 77% 77%
GE Money
Market Fund 1 14% --
The GE 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 TRANSACTIONS
On June 11, 1999, the Board of Trustees of GE Funds approved a share class
redesignation (the "Redesignation") for each of the Funds except the Money
Market Fund, effective at the close of business September 17, 1999. The
Redesignation combined each Fund's respective Class A and Class C shares into a
single class designated as Class A. For each of the Funds affected by the
Redesignation, except the GE Value Equity Fund, GE Mid-Cap Growth Fund, GE
Government Securities Fund and GE Tax-Exempt Fund, Class A shares were combined
into Class C shares and the combined Class C shares were renamed Class A shares.
For the GE Value Equity Fund, GE Mid-Cap Growth Fund, GE Government Securities
Fund and GE Tax-Exempt Fund, Class C shares were combined into Class A shares.
The Redesignation was completed to simplify the structure and increase the
operating efficiencies of the Funds. For tax purposes, the Redesignation results
in a non-taxable exchange of shares. 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 pays GEID a monthly fee for distribution and/or shareholder
services provided, at an annual rate of 1.00% of the average daily net assets of
Class C (level load) shares.
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127
<PAGE>
GE FUNDS' INVESTMENT TEAM
PORTFOLIO MANAGERS
GE U.S. EQUITY FUND
Team led by Eugene K. Bolton
GE PREMIER GROWTH EQUITY FUND
David B. Carlson
GE VALUE EQUITY FUND
Peter J. Hathaway
GE MID-CAP GROWTH FUND
Ralph E. Whitman, Jr.
GE MID-CAP VALUE FUND
Jon D. Bosse -
NWQ Investment Management Company
GE SMALL-CAP VALUE FUND
Investment Committee:
Jack Feiler
Martin L. Berman
Steven E. Berman
Richard Meisenberg -
Palisade Capital Management, L.L.C.
GE GLOBAL EQUITY FUND
Team led by Ralph R. Layman
Michael J. Solecki
GE INTERNATIONAL EQUITY FUND
Team led by Ralph R. Layman
GE EUROPE EQUITY FUND
Michael J. Solecki
GE EMERGING MARKETS FUND
Team led by Ralph R. Layman
GE STRATEGIC INVESTMENT FUND
David B. Carlson
Ralph R. Layman
Robert A. MacDougall
GE FIXED INCOME FUND
GE GOVERNMENT SECURITIES FUND
GE SHORT-TERM GOVERNMENT FUND
Team led by Robert A. MacDougall
GE TAX-EXEMPT FUND
Barbara A. Brinkley-
Brown Brothers Harriman & Co.
GE HIGH YIELD FUND
Robert E. Angevine
Thomas L. Bennett
Stephen F. Esser -
Miller Anderson & Sherrerd, LLP
GE MONEY MARKET FUND
Team led by Robert A. MacDougall
INVESTMENT ADVISER
AND ADMINISTRATOR
GE Asset Management
TRUSTEES
Michael J. Cosgrove
John R. Costantino
Alan M. Lewis
William J. Lucas
Robert P. Quinn
SECRETARY
Matthew J. Simpson
TREASURER
Michael J. Tansley
ASSISTANT TREASURER
Michael M. D'Ambrosio
DISTRIBUTOR
GE Investment Distributors, Inc.
Member NASD and SIPC
COUNSEL
Willkie Farr & Gallagher
CUSTODIAN
State Street Bank & Trust Company
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
OFFICERS OF THE INVESTMENT ADVISER
John H. Myers, CHAIRMAN OF THE BOARD AND PRESIDENT
Eugene K. Bolton, EVP, DOMESTIC EQUITIES
Michael J. Cosgrove, EVP, MUTUAL FUNDS
John J. Walker, EVP, CHIEF FINANCIAL OFFICER
Ralph R. Layman, EVP, INTERNATIONAL EQUITIES
Alan M. Lewis, EVP, GENERAL COUNSEL AND SECRETARY
Robert A. MacDougall, EVP, FIXED INCOME
Geoffrey R. Norman, EVP, MARKETING
Don W. Torey, EVP, ALTERNATIVE INVESTMENTS AND REAL ESTATE
128
<PAGE>
SHAREHOLDER INQUIRIES
CLASS A, B AND C INVESTORS: For questions regarding the Funds or your account,
call your Investment Professional or GE Funds Shareholder Services at
1-800-242-0134.
Address inquiries regarding the Funds to: GE FUNDS
3003 SUMMER STREET
P.O. BOX 7900
STAMFORD, CT 06904-7900
Address requests regarding your account(s) to: GE FUNDS
P.O. BOX 219631
KANSAS CITY, MO 64141-9631
Overnight express mail Address: GE FUNDS
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
(816) 843-7335
CLASS Y INVESTORS: Contact your designated GE 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 INC.
3003 SUMMER STREET
STAMFORD, CT 06905
DISTRIBUTOR
GE INVESTMENT DISTRIBUTORS, INC.
MEMBER NASD AND SIPC
777 LONG RIDGE ROAD
STAMFORD, CT 06927
BULK RATE
U.S. POSTAGE
PAID
CANTON, MA
PERMIT NO. 313
[GE LOGO OMITTED]
WE BRING GOOD THINGS TO LIFE.
GEF-3 (3/00) 903105
