REPORT OF INDEPENDENT ACCOUNTANTS
November 14, 2000
To the Board of Trustees of
GE S&P 500 Index Fund
We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, about GE S&P 500 Index Fund's (the "Fund's") compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of July 31, 2000. Management is responsible
for the Fund's compliance with those requirements. Our responsibility is to
express an opinion on management's assertion about the Fund's compliance based
on our examination.
Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Fund's
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. Included among our procedures were
the following tests performed as of July 31, 2000, and with respect to agreement
of security purchases and sales, for the period from April 28, 2000 (date of
commencement), through July 31, 2000.
- Confirmation of all securities held by institutions in book entry form at the
Depository Trust Company. For such securities, review of all reconciliations
of the investment positions recorded at the Custodian to the positions held
in omnibus form for the Custodian's account at the Depository Trust Company,
observing no unresolved differences.
- Confirmation of all securities hypothecated, pledged, placed in escrow, or
out for transfer with brokers, pledgees and/or transfer agents;
- Reconciliation of all such securities to the books and records of the Fund
and the Custodian; and
- Agreement of security purchases and security sales or maturities since our
last report from the books and records of the Fund to broker confirmations.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that the GE S&P 500 Index Fund was in
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the
Investment Company Act of 1940 as of July 31, 2000 with respect to securities
reflected in the investment account of the Fund is fairly stated, in all
material respects.
This report is intended solely for the information and use of the Board of
Directors, management, and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
/s/ PRICEWATERHOUSECOOPERS L.L.P
<PAGE>
MANAGEMENT ASSERTION REGARDING COMPLIANCE WITH
CERTAIN PROVISIONS OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of one of the portfolios of GE Funds, the GE S&P
500 Index Fund (the "Fund"), are responsible for complying with the requirements
of subsections (b) and (c) of Rule 17f-2, "Custody of Investments by Registered
Management Investment Companies," of the Investment Company Act of 1940. We are
also responsible for establishing and maintaining an effective internal control
structure over compliance with Rule 17f-2 requirements. We have performed an
evaluation of the Fund's compliance with the requirements of subsections (b) and
(c) of Rule 17f-2 as of July 31, 2000, and from April 28, 2000 (commencement of
operations) through July 31, 2000.
Based on this evaluation, we assert that the Fund was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of July 31, 2000, and from April 28, 2000 (commencement of
operations) through July 31, 2000, with respect to securities reflected in the
investment account of the Fund.
GE Funds (GE S&P 500 Index Fund),
By:
/s/ Michael J. Cosgrove
----------------------------
Michael J. Cosgrove
President
/s/ Michael J. Cosgrove
----------------------------
Michael Tansley
Treasurer
