Elfun Trusts (ELFNX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-00483

Elfun Trusts

(Exact name of registrant as specified in charter)

1600 Summer Street

Stamford, Connecticut 06905

(Address of principal executive offices)(Zip code)

GE Asset Management, Inc.

1600 Summer Street

Stamford, Connecticut 06905

(Name and Address of Agent for Service)

Registrant’s telephone number, including area code: 800-242-0134

Date of fiscal year end: 12/31

Date of reporting period: 12/31/15

Item 1. Reports to Stockholders

Elfun Funds

Annual Report

December 31, 2015

Notes to Performance	1
Manager Reviews and Schedules of Investments
Elfun International Equity Fund	2
Elfun Trusts	9
Elfun Diversified Fund	14
Elfun Tax-Exempt Income Fund	35
Elfun Income Fund	44
Elfun Government Money Market Fund	60
Notes to Schedules of Investments	64
Financial Statements
Financial Highlights	65
Statements of Assets and Liabilities	72
Statements of Operations	74
Statements of Changes in Net Assets	76
Notes to Financial Statements	79
Report of Independent Registered Public Accounting Firm	92
Tax Information	93
Advisory Agreement Renewal	94
Sub-Advisory Agreement	97
Additional Information	99
Investment Team	102
Shareholder Services	105

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current summary prospectus or prospectus.

Information on the following performance pages relates to the Elfun Funds.

Total returns take into account changes in share price and assume reinvestment of all dividends and capital gains distributions, if any. Total returns shown are net of Fund expenses.

The performance data quoted represents past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Periods less than one year are not annualized. Please call toll-free (800) 242-0134 or visit the Funds’ website at http://www.geam.com for the most recent month-end performance data.

A portion of the Elfun Tax-Exempt Income Fund’s income may be subject to state, federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

An investment in a Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. An investment in a Fund is subject to risk, including possible loss of principal invested.

The Standard & Poor’s (“S&P”) 500^® Composite Price Index of stocks (S&P 500 Index), Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE^® Index), MSCI^® ACWI ex-U.S. Index, Barclays U.S. Aggregate Bond Index, the Barclays U.S. Municipal Bond Index, and the 90 Day U.S. T-Bill are unmanaged indices and do not reflect the actual cost of investing in the instruments that comprise each index. The results shown for the foregoing indices assume the reinvestment of net dividends or interest and do not reflect the fees, expenses or taxes.

S&P 500 Index is an unmanaged, market capitalization-weighted index of stocks of 500 large U.S. companies, which is widely used as a measure of large-cap U.S. stock market performance.

MSCI^® EAFE^® Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The index is designed to represent the performance of developed stock markets outside the U.S. and Canada and excludes certain market segments unavailable to U.S. based investors.

MSCI ACWI Ex-U.S. Index is a market-capitalization weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of U.S. based companies. The MSCI ACWI Ex-U.S. Index includes both developed and emerging markets.

Barclays U.S. Aggregate Bond Index is a market value-weighted index of taxable investment-grade debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of one year or more. This index is designed to represent the performance of the U.S. investment-grade first-rate bond market.

Barclays U.S. Municipal Bond Index is an unmanaged index comprised of investment-grade, fixed rate securities with maturities of at least eight years and less than twelve years.

The 90 Day U.S. T-Bill is an unmanaged measure/index of the performance of the most recently auctioned 90 Day U.S. Treasury bills (i.e. having a total maturity of 90 days) currently available in the marketplace.

The peer universe of underlying funds used for the peer group average annual total return calculation is based on the blend of Morningstar peer categories, as shown. Morningstar is an independent mutual fund rating service. 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.

^©2016 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damage or losses relating from any use of this information. Past performance is no guarantee of future results.

The views, expressed in this document reflect our judgment as of the publication date and are subject to change at any time without notice.

GE Investment Distributors, Inc., member of FINRA, is the principal underwriter and distributor of the Elfun Funds and a wholly owned subsidiary of GE Asset Management Incorporated, the investment adviser of the Funds.

1

(Unaudited)

Ralph R. Layman

Executive Vice President and

Chief Investment

Officer Emeritus

Michael J. Solecki

Senior Vice President and Chief Investment Officer International Equities

The Elfun International Equity Fund is co-managed by Ralph R. Layman and Michael J. Solecki. Messrs. Layman and Solecki both manage the Fund as a collaborative team. Both portfolio managers have the authority to increase or decrease existing positions in the Fund. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun International Equity Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun International Equity Fund returned -0.18%. The MSCI EAFE Index, the Fund’s benchmark, returned -0.81% and the Fund’s Morningstar peer group of 821 Foreign Large Blend Funds returned an average of -1.64% over the same period. The Fund performed better than 63% of its Morningstar peer group in 2015.

Q. What market factors affected the Fund’s performance?

A. 2015 began on an optimistic note, with international equity markets surging strongly ahead, as central banks around the world eased monetary conditions in the face of very low inflation. Fears of slowing global growth, volatility in China, and various geo-political tensions soon began to weigh on the equity markets, which reached a high for the year in mid-May. From peak to trough in mid-September, the MSCI EAFE Index fell over 17%, narrowly avoiding the 20% pull-back that typically defines a bear market (a threshold it would pass in early 2016). The market recovered a bit from its September low but nevertheless finished the year down, the second year in a row of negative returns for the MSCI EAFE Index and the third year in a row that the international developed markets have lagged U.S. large caps.

Underneath the overall market performance number was a significant amount of

variability by region and industry. Japan, where the Fund was overweight relative to the MSCI EAFE Index, continued to be a bright spot, returning just under 10% and outperforming the broader index for the third year in a row. By contrast, the U.K. and the Pacific region excluding Japan were weak being more exposed to energy and emerging markets. By industry, the energy and materials sectors were predictably the weakest in 2015, impacted by plummeting commodity prices, while the relatively defensive consumer staples and healthcare enjoyed modest positive returns. In the currency markets, the U.S. dollar strengthened in 2015 against all major currencies, reducing realized returns for U.S. based investors in international equities.

Q. What were the primary drivers of Fund performance?

A. Among sectors, industrials was the biggest contributor to Fund returns, perhaps surprisingly given the negative sentiment around economic growth that existed much of the year. Within industrials, the Fund was overweight relative to the MSCI EAFE Index in areas such as aerospace, airlines, and building products, all of which had solid positive returns. Another positive area was the financial sector, where the Fund did well in insurance and banks both in Japan and the Eurozone. Geographically, the Fund benefitted from its large weight in Japan, where it held just under 30% of its assets on average during 2015, a significantly higher weight than the MSCI EAFE Index. Within Japan, the Fund’s holdings underperformed the MSCI EAFE Index, but still did better than the rest of the world and so helped overall performance.

Hurting performance this year were the Fund’s holdings in energy and mining. The Fund held only a small percent of its assets in these areas and a lower weight than the MSCI EAFE Index, but any exposure was painful, as the fall in commodity prices hurt

2

(Unaudited)

the sector. Related to this, the emerging markets region was under pressure in 2015 and another source of negative returns for the Fund. The Fund had both direct exposure, holding a small weight in companies based in emerging markets, and indirect exposure through developed market companies that sell into emerging market countries.

Q. Were there any significant changes to the Fund during the period?

A. Geographically, the Fund’s weights in Japan, Canada, and the Eurozone were reduced in 2015, while Continental Europe outside of the Eurozone and the U.K. were increased. These changes did not impact the Fund’s positioning relative to the MSCI EAFE Index, where the Fund’s biggest overweights remain Japan and the emerging markets region and biggest underweights remain the U.K. and the Pacific Basin.

Similarly the Fund’s sector positioning relative to the Index changed little in 2015. The biggest changes were in industrials, which was reduced from a modest to a slight overweight, consumer discretionary, from a slight overweight to modest underweight, and consumer staples, where the Fund’s large underweight was reduced. Within industrials, machinery and professional services were reduced in favor of building products. In consumer discretionary, auto exposure was reduced in favor of leisure. In healthcare, while the overall weight didn’t change significantly, pharma was reduced in favor of healthcare equipment and services.

3

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		918.90		1.79
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,023.34		1.89

* Expenses are equal to the Fund’s annualized net expense ratio of 0.37%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

4

(Unaudited)

Investment Profile

A mutual fund designed for investors who seek long-term growth of capital and future income by investing principally in foreign securities consistent with prudent investment management and the preservation of capital. The Fund seeks to achieve its investment objectives by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks and invests primarily (meaning at least 65%) in companies in both developed and emerging market countries outside the United States.

Top Ten Largest Holdings

(as a % of Fair Value of Investments of $233,852 (in thousands) on December 31, 2015) ^(a)(b)

Roche Holding AG	3.11%
AIA Group Ltd.	2.43%
Nidec Corp.	2.43%
Continental AG	2.34%
Sanofi	2.12%
Baidu Inc. ADR	2.09%
Vodafone Group PLC	2.05%
Anheuser-Busch InBev S.A.	1.99%
BNP Paribas S.A.	1.88%
Toyota Motor Corp.	1.85%

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $233,852 (in thousands) on December 31, 2015 ^(a)(b)

Morningstar Performance Comparison

Based on average annual returns for periods ended December 31, 2015

	One Year			Five Year			Ten Year
Number of funds in peer group		821			699			529
Peer group average annual total return		-1.64	%		2.54	%		2.56	%
Morningstar Category in peer group: U.S. Foreign Large Blend

Change in Value of a $10,000 Investment

Average Annual Total Return

For the periods ended December 31, 2015

(Inception date: 1/1/88)
	One Year		Five Year		Ten Year		Ending Value of a $10,000 Investment
Elfun International Equity Fund		-0.18%		2.67%		2.99%		$13,424
MSCI EAFE Index		-0.81%		3.61%		3.03%		$13,479

(a) Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class.

(b) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

5

Elfun International Equity Fund December 31, 2015

Elfun International Equity Fund

	Number of Shares		Fair Value
Common Stock — 95.5%†
Australia — 1.3%
Insurance Australia Group Ltd.		746,565	$	3,019,988
Belgium — 2.0%
Anheuser-Busch InBev S.A.		37,415		4,649,664
Canada — 1.3%
Brookfield Asset Management Inc., Class A		33,715		1,059,434
Cenovus Energy Inc.		166,236		2,094,255
				3,153,689
China — 2.1%
Baidu Inc. ADR		25,824		4,881,769	(a)
France — 13.4%
Airbus Group SE		18,642		1,255,550
AXA S.A.		142,904		3,916,620
BNP Paribas S.A.		77,637		4,404,925
Credit Agricole S.A.		182,632		2,158,518
Safran S.A.		26,294		1,810,048
Sanofi		58,134		4,963,666
Schneider Electric SE		42,171		2,407,793
Technip S.A.		62,762		3,118,137
Total S.A.		53,505		2,398,424
Vivendi S.A.		103,570		2,234,411
Zodiac Aerospace		109,834		2,621,896
				31,289,988
Germany — 8.9%
Bayer AG		29,829		3,752,296
Continental AG		22,430		5,471,320
Fresenius SE & Company KGaA		50,928		3,649,664
HeidelbergCement AG		33,256		2,731,848
Linde AG		17,354		2,524,236
SAP SE		35,063		2,794,966
				20,924,330
Hong Kong — 2.4%
AIA Group Ltd.		946,962		5,693,881
India — 2.0%
ICICI Bank Ltd.		561,369		2,214,716
Larsen & Toubro Ltd.		61,477		1,186,677
Power Grid Corporation of India Ltd.		621,316		1,331,266
				4,732,659
Ireland — 0.8%
Kerry Group PLC, Class A		22,199		1,840,198

	Number of Shares		Fair Value
Italy — 1.4%
Intesa Sanpaolo S.p.A.		962,834	$	3,229,821
Japan — 28.0%
Astellas Pharma Inc.		134,800		1,940,282
East Japan Railway Co.		30,200		2,874,517
FANUC Corp.		18,900		3,311,958
Fast Retailing Company Ltd.		5,266		1,866,597
Fuji Heavy Industries Ltd.		46,600		1,947,364
Hitachi Ltd.		631,000		3,627,221
Japan Post Holdings Company Ltd.		76,000		1,178,270	(a)
Kao Corp.		50,500		2,625,857
Keyence Corp.		4,800		2,676,620
Mitsubishi Estate Company Ltd.		179,459		3,764,618
Mitsubishi Heavy Industries Ltd.		559,000		2,478,197
Mitsubishi UFJ Financial Group Inc.		630,700		3,969,433
Mitsui Fudosan Company Ltd.		167,118		4,245,502
Murata Manufacturing Company Ltd.		17,597		2,570,176
Nidec Corp.		77,500		5,693,233
Rakuten Inc.		217,597		2,537,833	(a)
Secom Company Ltd.		24,600		1,685,058
Shimano Inc.		8,700		1,349,532
SoftBank Group Corp.		72,701		3,710,141
Sumitomo Mitsui Financial Group Inc.		93,000		3,560,896
Tokio Marine Holdings Inc.		91,500		3,584,089
Toyota Motor Corp.		69,482		4,325,044
				65,522,438
Mexico — 0.4%
Grupo Financiero Banorte SAB de C.V., Class O		173,832		954,150
Netherlands — 3.0%
ASML Holding N.V.		42,813		3,839,216
ING Groep N.V.		239,758		3,242,591
				7,081,807
Norway — 1.1%
Statoil ASA		178,582		2,495,732
South Korea — 0.9%
Samsung Electronics Company Ltd.		1,955		2,100,806
Spain — 0.6%
Banco Bilbao Vizcaya Argentaria S.A.		199,324		1,459,166
Sweden — 5.0%
Assa Abloy AB, Class B		153,618		3,243,423
Hexagon AB, Class B		82,026		3,062,864

See Notes to Schedules of Investments and Notes to Financial Statements.

6

Elfun International Equity Fund December 31, 2015

	Number of Shares		Fair Value
Svenska Cellulosa AB SCA, Class B		53,416	$	1,561,816
Telefonaktiebolaget LM Ericsson, Class B		405,238		3,955,957
				11,824,060
Switzerland — 7.5%
Geberit AG		6,967		2,367,805
Givaudan S.A.		1,726		3,143,355
Nestle S.A.		33,800		2,517,273
Roche Holding AG		26,338		7,272,551
The Swatch Group AG		6,219		2,175,718
				17,476,702
Taiwan — 1.4%
Taiwan Semiconductor Manufacturing Company Ltd.		777,900		3,386,602
United Kingdom — 12.0%
Barclays PLC		1,193,380		3,850,282
BHP Billiton PLC		113,574		1,272,215
Capita PLC		58,199		1,036,217
HSBC Holdings PLC		185,477		1,465,834
International Consolidated Airlines Group S.A.		166,964		1,502,369
Johnson Matthey PLC		51,013		1,997,747
Prudential PLC		129,932		2,931,969
Shire PLC		38,222		2,646,638
Smith & Nephew PLC		218,499		3,890,312
Vodafone Group PLC		1,474,875		4,804,139
WPP PLC		122,925		2,831,831
				28,229,553
Total Common Stock (Cost $218,447,011)				223,947,003
Short-Term Investments — 4.2%
State Street Institutional U.S. Government Money Market Fund — Premier Class
0.09%			$	9,904,614	(d,h,p)
(Cost $9,904,614)
Total Investments (Cost $228,351,625)				233,851,617
Other Assets and Liabilities, net — 0.3%				596,201
NET ASSETS — 100.0%			$	234,447,818

Other Information:

The Fund had the following long futures contracts open at December 31, 2015:

Description	Expiration date	Number of Contracts		Current Notional Value			Unrealized Appreciation
EURO Stoxx 50 Index Futures	March 2016		65		$	2,317,404		$	12,171
FTSE 100 Index Futures	March 2016		7			639,466			17,173
Topix Index Futures	March 2016		12			1,543,705			25,723
								$	55,067

The Fund was invested in the following sectors at December 31, 2015 (unaudited):

Sector	Percentage (based on Fair Value)
Diversified Banks		13.05%
Pharmaceuticals		8.80%
Life & Health Insurance		4.19%
Electronic Equipment & Instruments		4.01%
Diversified Real Estate Activities		3.88%
Wireless Telecommunication Services		3.64%
Electrical Components & Equipment		3.46%
Integrated Oil & Gas		2.99%
Property & Casualty Insurance		2.82%
Automobile Manufacturers		2.68%
Industrial Machinery		2.48%
Aerospace & Defense		2.43%
Building Products		2.40%
Auto Parts & Equipment		2.34%
Specialty Chemicals		2.20%
Internet Software & Services		2.09%
Brewers		1.99%
Packaged Foods & Meats		1.86%
Communications Equipment		1.69%
Multi-Line Insurance		1.67%
Healthcare Equipment		1.66%
Semiconductor Equipment		1.64%
Healthcare Services		1.56%
Semiconductors		1.45%
Oil & Gas Equipment & Services		1.33%
Railroads		1.23%
Advertising		1.21%
Application Software		1.19%
Construction Materials		1.17%
Personal Products		1.12%
Electronic Components		1.10%
Internet Retail		1.09%
Industrial Gases		1.08%
Movies & Entertainment		0.96%
Apparel, Accessories & Luxury Goods		0.93%

See Notes to Schedules of Investments and Notes to Financial Statements.

7

Elfun International Equity Fund December 31, 2015

Technology Hardware, Storage & Peripherals	0.90%
Apparel Retail	0.80%
Security & Alarm Services	0.72%
Household Products	0.67%
Airlines	0.64%
Leisure Products	0.58%
Electric Utilities	0.57%
Diversified Metals & Mining	0.54%
Construction & Engineering	0.51%
Human Resource & Employment Services	0.44%
	95.76%
Short-Term Investments
Short-Term Investments	4.24%
	4.24%
	100.00%

See Notes to Schedules of Investments and Notes to Financial Statements.

8

(Unaudited)

David B. Carlson

Chief Investment Officer – U.S. Equities

The Elfun Trusts is managed by David B. Carlson. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun Trusts Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun Trusts Fund returned 1.70%. The S&P 500^® Index (S&P 500 Index), the Fund’s benchmark, returned 1.38% and the Fund’s Morningstar peer group of 1,744 U.S. Large Cap Growth Funds returned an average of 3.57% over the same period.

Q. What market factors affected the Fund’s performance?

A. The overall market as measured by the S&P 500 was only up 1.4%, but the dividend yield was approximately 2%, so prices were generally lower for the year. More stocks declined in price than gained for the year. Earnings growth for the S&P 500 was flattish. Energy sector earnings were down sharply and the rest of the market’s earnings grew modestly. Elfun Trusts’ return was slightly better than the S&P 500 Index, but we trailed the median return of our Morningstar peer group of growth funds. In January of this year, Barron’s magazine recognized Elfun Trusts in an article on long term performance noting that Elfun Trusts was one of a small number of funds that have beaten the S&P 500 on a 1, 3, 5, 10, 15, and 25 rolling year basis.

Q. What were the primary drivers of Fund performance?

A. We look at performance in two buckets: sector allocation and stock selection. Last year, we did better in sector allocation than we did in stock selection, meaning our decision to underweight energy and overweight healthcare was more beneficial than our stock selection within sectors. Energy stocks were down about 20% last year and we owned less than the market.

Healthcare stocks were up about 6% and make up 20% of the portfolio vs. 15% for the market. We were helped by our overweight in financial stocks which were up about 3% for the year.

The technology sector is our largest weight representing 27% of the portfolio compared with 21% of the S&P 500. Stocks within the tech sector had a very wide range of performance and that was true of our holdings as well. Our holdings of Amazon (+118%) and Google (+45%) helped while our holdings of Qualcomm (-31%) and Baidu (-17%) hurt performance. Our decision to underweight energy, materials, utilities and industrials helped relative performance as all four sectors declined for the year.

Q. Were there any significant changes to the Fund during the period?

A. Changes in the portfolio were modest and our turnover rate remained below 20%. We continue to focus on the long term in our stock selection. We ended the year with 53 names in the portfolio, up from 51 at the start. We continue to have a growth tilt with overweights in the technology, healthcare and consumer-discretionary sectors. We have a growing weight in internet companies as we believe we are in an era of significant disruption to traditional business models. We are underweighted in cyclicals such as energy, materials and industrials. We have no holdings in the utility sector. It’s been six years since the last recession and bear market, and it’s been the slowest recovery on record in terms of economic growth. We think the slow growth continues and we are concentrated in companies with above-average organic growth, meaning they don’t need a strong economy to meet our growth expectations. We also favor financial strength, market leadership and great management teams. We believe this combination of high-quality characteristics in our companies will lead to long term outperformance in their share prices.

9

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		994.40		0.75
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,024.45		0.77

* Expenses are equal to the Fund’s annualized net expense ratio of 0.15%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

10

(Unaudited)

Investment Profile

A mutual fund designed for investors who seek long-term growth of capital and future income rather than current income. The Fund seeks to achieve its investment objectives by investing in equity securities of U.S. companies, such as common and preferred stocks.

Top Ten Largest Holdings

(as a % of Fair Value of Investments of $2,359,040 (in thousands) on December 31, 2015) ^(a)(b)

Visa Inc., Class A	4.57%
Allergan PLC	4.50%
PepsiCo Inc.	4.07%
Amazon.com Inc.	4.01%
Baidu Inc. ADR	3.69%
CME Group Inc.	3.57%
State Street Corp.	3.38%
Amgen Inc.	3.37%
Liberty Global PLC, Class C	3.37%
Comcast Corp., Class A	3.35%

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $2,359,040 (in thousands) on December 31, 2015 ^(a)(b)

Morningstar Performance Comparison

Based on average annual returns for periods ended December 31, 2015

	One Year			Five Year			Ten Year
Number of funds in peer group		1,744			1,547			1,330
Peer group average annual total return		3.57	%		11.37	%		6.70	%
Morningstar Category in peer group: U.S. Large Growth

Change in Value of a $10,000 Investment

Average Annual Total Return

For the periods ended December 31, 2015

(Inception date: 5/27/35)
	One Year		Five Year		Ten Year		Ending Value of a $10,000 Investment
Elfun Trusts		1.70%		13.80%		8.41%		$22,425
S&P 500 Index		1.38%		12.57%		7.31%		$20,242

(a) Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class.

(b) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

11

Elfun Trusts December 31, 2015

Elfun Trusts

	Number of Shares		Fair Value
Common Stock — 97.7%†
Aerospace & Defense — 1.0%
Hexcel Corp.		130,000	$	6,038,500
Honeywell International Inc.		160,000		16,571,200
				22,609,700
Air Freight & Logistics — 1.0%
United Parcel Service Inc., Class B		250,000		24,057,500
Application Software — 2.2%
Intuit Inc.		550,000		53,075,000
Asset Management & Custody Banks — 3.4%
State Street Corp.		1,200,000		79,632,000	(e)
Biotechnology — 7.0%
Alexion Pharmaceuticals Inc.		160,000		30,520,000	(a)
Amgen Inc.		490,000		79,541,700
Gilead Sciences Inc.		550,000		55,654,500
				165,716,200
Broadcasting — 0.6%
Discovery Communications Inc., Class C		550,000		13,871,000	(a)
Cable & Satellite — 7.5%
Comcast Corp., Class A		1,400,000		79,002,000
Liberty Global PLC, Class C		1,950,000		79,501,500	(a)
Sirius XM Holdings Inc.		4,500,000		18,315,000	(a)
				176,818,500
Casinos & Gaming — 0.6%
Las Vegas Sands Corp.		350,000		15,344,000
Communications Equipment — 2.5%
QUALCOMM Inc.		1,200,000		59,982,000
Data Processing & Outsourced Services — 7.5%
Automatic Data Processing Inc.		200,000		16,944,000
Paychex Inc.		170,000		8,991,300
PayPal Holdings Inc.		1,150,000		41,630,000	(a)
Square Inc. Class A		60,000		785,400	(a)
Visa Inc., Class A		1,390,000		107,794,500
				176,145,200
Diversified Banks — 3.2%
JPMorgan Chase & Co.		1,150,000		75,934,500

	Number of Shares		Fair Value
Environmental & Facilities Services — 0.2%
Stericycle Inc.		45,000	$	5,427,000	(a)
Fertilizers & Agricultural Chemicals — 3.0%
Monsanto Co.		720,000		70,934,400
Healthcare Equipment — 4.1%
Abbott Laboratories		600,000		26,946,000
Medtronic PLC		900,000		69,228,000
				96,174,000
Healthcare Supplies — 1.2%
The Cooper Companies Inc.		210,000		28,182,000
Home Improvement Retail — 3.1%
Lowe’s Companies Inc.		960,000		72,998,400
Industrial Machinery — 0.7%
Dover Corp.		275,000		16,860,250
Integrated Oil & Gas — 1.3%
Chevron Corp.		330,000		29,686,800
Internet Retail — 4.0%
Amazon.com Inc.		140,000		94,624,600	(a)
Internet Software & Services — 11.4%
Alibaba Group Holding Ltd. ADR		80,000		6,501,600	(a)
Alphabet Inc., Class A		38,000		29,564,380	(a)
Alphabet Inc., Class C		83,000		62,987,040	(a)
Baidu Inc. ADR		460,000		86,958,400	(a)
eBay Inc.		1,700,000		46,716,000	(a)
Facebook Inc., Class A		190,000		19,885,400	(a)
LinkedIn Corp., Class A		70,000		15,755,600	(a)
				268,368,420
Investment Banking & Brokerage — 2.6%
The Charles Schwab Corp.		1,880,000		61,908,400
Movies & Entertainment — 1.3%
The Walt Disney Co.		300,000		31,524,000
Oil & Gas Equipment & Services — 3.1%
Schlumberger Ltd.		1,050,000		73,237,500
Oil & Gas Exploration & Production — 0.7%
Anadarko Petroleum Corp.		330,000		16,031,400
Pharmaceuticals — 7.5%
Allergan PLC		340,000		106,250,000	(a)
Johnson & Johnson		460,000		47,251,200
Merck & Company Inc.		250,000		13,205,000
Pfizer Inc.		300,000		9,684,000
				176,390,200

See Notes to Schedules of Investments and Notes to Financial Statements.

12

Elfun Trusts December 31, 2015

	Number of Shares		Fair Value
Reinsurance — 0.4%
Alleghany Corp.		20,000	$	9,558,600	(a)
Soft Drinks — 4.1%
PepsiCo Inc.		960,000		95,923,200
Specialized Finance — 5.6%
CME Group Inc.		930,000		84,258,000
McGraw Hill Financial Inc.		500,000		49,290,000
				133,548,000
Specialized REITs — 2.6%
American Tower Corp.		640,000		62,048,000
Technology Hardware, Storage & Peripherals — 3.2%
Apple Inc.		720,000		75,787,200
Trading Companies & Distributors — 1.1%
United Rentals Inc.		360,000		26,114,400	(a)
Total Common Stock (Cost $1,368,999,454)				2,308,512,370
Short-Term Investments — 2.1%
State Street Institutional U.S. Government Money Market Fund — Premier Class
0.09%			$	50,527,506	(d,p)
(Cost $50,527,506)
Total Investments (Cost $1,419,526,960)				2,359,039,876
Other Assets and Liabilities, net — 0.2%				5,279,602
NET ASSETS — 100.0%			$	2,364,319,478

See Notes to Schedules of Investments and Notes to Financial Statements.

13

(Unaudited)

David Wiederecht

President and

Chief Investment

Officer – Investment Solutions

Jeffrey Palma

Senior Vice President and Chief Market Strategist

The Elfun Diversified Fund is managed by Jeffrey Palma and David Wiederecht. Messrs. Palma and Wiederecht are vested with oversight authority for determining asset allocations for the Fund. Each of the U.S. equity, international equity and fixed income portions of the Fund are managed by separate teams of portfolio managers and analysts. The sub-portfolios underlying the Fund are managed independently of each other, and the portfolio managers have full discretion over their particular sub-portfolio; however, the portfolio management team is collaborative to ensure strict adherence to seek the Fund’s objective. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun Diversified Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun Diversified Fund returned -1.25%. The Fund’s broad based benchmarks, the S&P 500^® Index (S&P 500 Index), the MSCI All Country World ex-U.S. Index, and the Barclays U.S. Aggregate Bond Index, returned 1.38%, -5.66%, and 0.55%, respectively. The Fund’s Morningstar peer group of 967 U.S. Moderate Allocation funds returned an average of -1.98% over the same period.

Q. What market factors affected the Fund’s performance?

A. 2015 was a challenging year for markets across asset classes. Indeed, returns were negative or only slightly positive in both equity and fixed income markets. Overall, global growth trends were challenging in 2015 with Global GDP expected to have decelerated to just 3.1% (from 3.4% in 2014). The US and Japan showed little change, Europe fared a bit better, but China and the emerging market complex was clearly weaker. For most of the second half of the year, economic growth surprised to the downside in the US, while Europe was a bit more resilient.

Global equity market returns for the year were lackluster with only low single-digit total returns in most markets. The overhang of macro and policy uncertainty, weakness in energy markets, and weak earnings (and a strong dollar for US companies) were contributing fundamental factors. Further, PE multiples were unable to provide the support to drive gains. With valuations already above long-term averages, this is not particularly surprising, but underscores an ongoing headwind for equity returns moving forward. Indeed, it is difficult to count on valuations to drive returns higher at this advanced stage of the cycle.

In 2015, most of the major fixed income markets saw rates move higher. In credit, returns struggled all year. With investment grade and high yield spreads both wider through 2015, returns were under pressure, while the rise in Treasury yields further depressed returns.

On top of challenging returns, volatility across markets also presented a difficult market backdrop. The combination of macro weakness and uncertainty, policy shift from the Fed, weakness in commodity and credit markets, and geopolitical unrest created an unsettled environment. Alongside valuations and fundamentals, this combination resulted in low aggregate returns and weak returns in stocks and bonds.

Q. What were the primary drivers of Fund performance?

A. Soft returns in US equities acted as the biggest drag on performance. Moreover, an underweight allocation to fixed income markets was also a headwind as returns, though modest, were positive. Returns on cash were positive courtesy of tactical asset allocation positions taken on crude oil during the year and downside equity market hedges put in place in the second half of 2015.

14

(Unaudited)

Q. Were there any significant changes to the Fund during the period?

A. Over the course of 2015, our allocation to equity markets declined slightly as we reduced our overweight position in US equity markets to neutral. Our positioning in international equities was relatively constant, though we did add a bit to Emerging Market equities towards the end of the year.

We have maintained an underweight allocation to fixed income markets and a matching overweight position in cash for some time based on our view that valuations in bond markets are relatively unattractive and that tighter Fed policy could exert some upward pressure on bond yields. To that end, we have preferred to hold a larger position in cash than in our benchmark to reflect this view. Looking ahead, we expect another volatile and challenging environment in 2016. As a result, we have reduced our long-standing overweight allocation to equity markets back towards neutral. We believe there will be opportunities to take advantage of volatility through the year but managing downside risk will be a critical element of tactical asset allocation in the year ahead.

15

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		964.90		1.78
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,023.39		1.84

* Expenses are equal to the Fund’s annualized net expense ratio of 0.36%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

16

(Unaudited)

Investment Profile

A mutual fund designed for investors who seek the highest total return, composed of income and capital appreciation, as is consistent with prudent investment management and the preservation of capital. The Fund seeks to achieve its investment objective by investing primarily in a combination of U.S. and foreign (non-U.S.) equity and debt securities and cash. The Fund’s asset allocation process utilizes information from GE Asset Management’s Asset Allocation Committee to diversify holdings across these asset classes and to adjust the asset class weightings based on market and economic conditions.

Top Ten Largest Equity Holdings

(as a % of Fair Value of Investments of $212,685 (in thousands) on December 31, 2015) ^(a)(b)

Allergan PLC	1.14%
Comcast Corp., Class A	0.94%
Amgen Inc.	0.93%
JPMorgan Chase & Co.	0.87%
Apple Inc.	0.82%
Baidu Inc. ADR	0.80%
Johnson & Johnson	0.74%
Exxon Mobil Corp.	0.73%
Cisco Systems Inc.	0.72%
Medtronic PLC	0.70%

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $212,685 (in thousands) on December 31, 2015 ^(a)(b)

Morningstar Performance Comparison

Based on average annual returns for periods ended December 31, 2015

	One Year			Five Year			Ten Year
Number of funds in peer group		967			834			670
Peer group average annual total return		-1.98	%		6.05	%		4.64	%
Morningstar Category in peer group: U.S. Moderate Allocation

Change in Value of a $10,000 Investment

Average Annual Total Return

For the periods ended December 31, 2015

(Inception date: 1/1/88)
	One Year		Five Year		Ten Year		Ending Value of a $10,000 Investment
Elfun Diversified Fund		-1.25%		5.86%		4.50%		$15,525
S&P 500 Index		1.38%		12.57%		7.31%		$20,242
MSCI All Country World Index ex-U.S.		-5.66%		1.06%		2.92%		$13,338
Barclays U.S. Aggregate Bond Index		0.55%		3.25%		4.51%		$15,552

(a) Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class.

(b) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

17

Elfun Diversified Fund December 31, 2015

Elfun Diversified Fund

	Number of Shares		Fair Value
Domestic Equity — 31.3%†
Common Stock — 31.3%
Aerospace & Defense — 1.1%
General Dynamics Corp.		4,206	$	577,736
Hexcel Corp.		11,596		538,634
Honeywell International Inc.		8,411		871,127
The Boeing Co.		2,443		353,234
				2,340,731
Agricultural Products — 0.3%
Archer-Daniels-Midland Co.		16,134		591,795
Air Freight & Logistics — 0.1%
United Parcel Service Inc., Class B		2,474		238,073
Airlines — 0.4%
Delta Air Lines Inc.		14,843		752,392
Application Software — 0.2%
Intuit Inc.		5,566		537,119
Asset Management & Custody Banks — 1.4%
Ameriprise Financial Inc.		7,886		839,228
Invesco Ltd.		31,184		1,044,040
State Street Corp.		15,400		1,021,944	(e)
				2,905,212
Automobile Manufacturers — 0.2%
Ford Motor Co.		30,924		435,719
Automotive Retail — 0.1%
Advance Auto Parts Inc.		928		139,673
Biotechnology — 1.8%
Alexion Pharmaceuticals Inc.		3,463		660,567	(a)
Amgen Inc.		12,215		1,982,861
Gilead Sciences Inc.		12,265		1,241,096
				3,884,524
Broadcasting — 0.1%
CBS Corp., Class B		4,020		189,463
Cable & Satellite — 1.5%
Comcast Corp., Class A		35,431		1,999,372
Liberty Global PLC, Class C		19,482		794,281	(a)
Sirius XM Holdings Inc.		80,402		327,236	(a)
				3,120,889
Casinos & Gaming — 0.1%
Las Vegas Sands Corp.		5,133		225,031

	Number of Shares		Fair Value
Communications Equipment — 1.3%
Cisco Systems Inc.		56,436	$	1,532,520
QUALCOMM Inc.		22,861		1,142,707
				2,675,227
Consumer Finance — 0.5%
Discover Financial Services		18,400		986,608
Data Processing & Outsourced Services — 0.7%
PayPal Holdings Inc.		11,133		403,015	(a)
Visa Inc., Class A		13,606		1,055,145
				1,458,160
Diversified Banks — 2.3%
Bank of America Corp.		82,033		1,380,616
Citigroup Inc.		3,711		192,044
JPMorgan Chase & Co.		27,938		1,844,746
Wells Fargo & Co.		25,976		1,412,055
				4,829,461
Diversified Chemicals — 0.1%
The Dow Chemical Co.		2,165		111,454
Drug Retail — 0.1%
CVS Health Corp.		1,546		151,152
Electric Utilities — 0.2%
NextEra Energy Inc.		4,720		490,361
Fertilizers & Agricultural Chemicals — 0.3%
Monsanto Co.		6,494		639,789
General Merchandise Stores — 0.3%
Dollar General Corp.		9,092		653,442
Healthcare Distributors — 0.2%
Cardinal Health Inc.		5,566		496,877
Healthcare Equipment — 0.9%
Abbott Laboratories		14,843		666,599
Boston Scientific Corp.		51,643		952,297	(a)
Stryker Corp.		2,714		252,239
				1,871,135
Healthcare Supplies — 0.2%
The Cooper Companies Inc.		3,031		406,760
Home Improvement Retail — 0.6%
Lowe’s Companies Inc.		16,173		1,229,795
Household Products — 0.1%
The Procter & Gamble Co.		2,448		194,396

See Notes to Schedules of Investments and Notes to Financial Statements.

18

Elfun Diversified Fund December 31, 2015

	Number of Shares		Fair Value
Independent Power Producers & Energy Traders — 0.1%
Calpine Corp.		9,252	$	133,876	(a)
Industrial Machinery — 0.4%
Ingersoll-Rand PLC		16,699		923,288
Integrated Oil & Gas — 1.5%
Chevron Corp.		7,267		653,740
Exxon Mobil Corp.		20,038		1,561,962
Occidental Petroleum Corp.		14,192		959,521
				3,175,223
Integrated Telecommunication Services — 0.2%
Verizon Communications Inc.		8,659		400,219
Internet Retail — 0.5%
Amazon.com Inc.		1,608		1,086,831	(a)
Internet Software & Services — 1.8%
Alphabet Inc., Class A		1,273		990,407	(a)
Alphabet Inc., Class C		1,546		1,173,228	(a)
eBay Inc.		26,986		741,575	(a)
Facebook Inc., Class A		5,257		550,198	(a)
LinkedIn Corp., Class A		1,484		334,019	(a)
				3,789,427
Investment Banking & Brokerage — 0.3%
The Charles Schwab Corp.		22,265		733,186
IT Consulting & Other Services — 0.1%
Cognizant Technology Solutions Corp., Class A		4,112		246,802	(a)
Life & Health Insurance — 0.2%
Lincoln National Corp.		6,803		341,919
Movies & Entertainment — 0.7%
The Walt Disney Co.		5,937		623,860
Time Warner Inc.		13,452		869,941
				1,493,801
Multi-Line Insurance — 0.7%
American International Group Inc.		6,497		402,619
The Hartford Financial Services Group Inc.		22,977		998,581
				1,401,200
Multi-Utilities — 0.3%
Dominion Resources Inc.		8,102		548,019
Oil & Gas Equipment & Services — 0.5%
Schlumberger Ltd.		13,827		964,433

	Number of Shares		Fair Value
Oil & Gas Exploration & Production — 0.4%
Hess Corp.		14,952	$	724,873
Marathon Oil Corp.		12,354		155,537
				880,410
Packaged Foods & Meats — 0.4%
Mondelez International Inc., Class A		17,317		776,494
Paper Packaging — 0.1%
Packaging Corporation of America		2,165		136,503
Pharmaceuticals — 2.9%
Allergan PLC		7,789		2,434,062	(a)
Johnson & Johnson		15,342		1,575,930
Merck & Company Inc.		24,430		1,290,393
Pfizer Inc.		24,275		783,597
				6,083,982
Railroads — 0.1%
CSX Corp.		5,257		136,419
Regional Banks — 0.1%
First Republic Bank		2,288		151,145
Research & Consulting Services — 0.4%
Nielsen Holdings PLC		19,502		908,793
Semiconductor Equipment — 0.4%
Applied Materials Inc.		42,056		785,186
Soft Drinks — 0.7%
PepsiCo Inc.		14,503		1,449,140
Specialized Finance — 0.7%
CME Group Inc.		8,349		756,419
McGraw Hill Financial Inc.		7,422		731,661
				1,488,080
Specialized REITs — 0.7%
American Tower Corp.		12,988		1,259,187
Extra Space Storage Inc.		2,474		218,231
				1,477,418
Systems Software — 0.5%
Microsoft Corp.		8,195		454,659
Oracle Corp.		12,679		463,164
VMware Inc., Class A		3,808		215,418	(a)
				1,133,241
Technology Hardware, Storage & Peripherals — 1.3%
Apple Inc.		16,637		1,751,211
HP Inc.		36,800		435,712
Western Digital Corp.		9,741		584,947
				2,771,870

See Notes to Schedules of Investments and Notes to Financial Statements.

19

Elfun Diversified Fund December 31, 2015

	Number of Shares		Fair Value
Trading Companies & Distributors — 0.2%
United Rentals Inc.		7,422	$	538,392	(a)
Total Common Stock (Cost $58,095,321)				65,510,535
Preferred Stock — 0.0%*
Diversified Banks — 0.0%*
Wells Fargo & Co.		2,735		71,438
Total Preferred Stock (Cost $68,375)				71,438
Total Domestic Equity (Cost $58,163,696)				65,581,973
Foreign Equity — 20.7%
Common Stock — 20.7%
Advertising — 0.2%
WPP PLC		21,736		500,734
Aerospace & Defense — 0.5%
Airbus Group SE		3,296		221,988
Safran S.A.		4,649		320,032
Zodiac Aerospace		19,421		463,607
				1,005,627
Airlines — 0.1%
International Consolidated Airlines Group S.A.		29,523		265,653
Apparel Retail — 0.2%
Fast Retailing Company Ltd.		914		323,978
Apparel, Accessories & Luxury Goods — 0.2%
The Swatch Group AG		1,100		384,835
Application Software — 0.2%
SAP SE		6,200		494,219
Auto Parts & Equipment — 0.7%
Continental AG		3,966		967,421
Delphi Automotive PLC		5,659		485,146
				1,452,567
Automobile Manufacturers — 0.5%
Fuji Heavy Industries Ltd.		8,200		342,669
Toyota Motor Corp.		12,330		767,505
				1,110,174

	Number of Shares		Fair Value
Brewers — 0.4%
Anheuser-Busch InBev S.A.		6,616	$	822,188
Building Products — 0.5%
Assa Abloy AB, Class B		27,163		573,508
Geberit AG		1,232		418,707
				992,215
Communications Equipment — 0.3%
Telefonaktiebolaget LM Ericsson, Class B		71,656		699,510
Construction & Engineering — 0.1%
Larsen & Toubro Ltd.		10,870		209,821
Construction Materials — 0.2%
HeidelbergCement AG		5,880		483,019
Diversified Banks — 2.6%
Banco Bilbao Vizcaya Argentaria S.A.		35,245		258,014
Barclays PLC		211,017		680,818
BNP Paribas S.A.		13,747		779,970
Credit Agricole S.A.		32,294		381,681
Grupo Financiero Banorte SAB de C.V., Class O		30,737		168,713
HSBC Holdings PLC		32,797		259,196
ICICI Bank Ltd.		99,263		391,613
ING Groep N.V.		42,395		573,368
Intesa Sanpaolo S.p.A.		170,251		571,106
Mitsubishi UFJ Financial Group Inc.		111,500		701,747
Sumitomo Mitsui Financial Group Inc.		16,400		627,943
				5,394,169
Diversified Metals & Mining — 0.1%
BHP Billiton PLC		20,083		224,963
Diversified Real Estate Activities — 0.8%
Brookfield Asset Management Inc., Class A		5,962		187,345
Mitsubishi Estate Company Ltd.		31,918		669,563
Mitsui Fudosan Company Ltd.		29,306		744,496
				1,601,404
Electric Utilities — 0.1%
Power Grid Corporation of India Ltd.		109,861		235,394
Electrical Components & Equipment — 0.7%
Nidec Corp.		13,700		1,006,417
Schneider Electric SE		7,457		425,764
				1,432,181

See Notes to Schedules of Investments and Notes to Financial Statements.

20

Elfun Diversified Fund December 31, 2015

	Number of Shares		Fair Value
Electronic Components — 0.2%
Murata Manufacturing Company Ltd.		3,100	$	452,779
Electronic Equipment & Instruments — 0.8%
Hexagon AB, Class B		14,504		541,582
Hitachi Ltd.		111,500		640,943
Keyence Corp.		900		501,866
				1,684,391
Healthcare Equipment — 1.0%
Medtronic PLC		19,296		1,484,248
Smith & Nephew PLC		38,636		687,903
				2,172,151
Healthcare Services — 0.3%
Fresenius SE & Company KGaA		9,005		645,327
Household Products — 0.1%
Svenska Cellulosa AB SCA, Class B		9,445		276,160
Human Resource & Employment Services — 0.1%
Capita PLC		10,291		183,228
Industrial Gases — 0.2%
Linde AG		3,069		446,403
Industrial Machinery — 0.5%
FANUC Corp.		3,300		578,278
Mitsubishi Heavy Industries Ltd.		99,000		438,894
				1,017,172
Integrated Oil & Gas — 0.8%
Cenovus Energy Inc.		29,506		372,366
Cenovus Energy Inc.		29,394		370,308
Statoil ASA		31,577		441,297
Total S.A.		9,461		424,100
				1,608,071
Internet Retail — 0.2%
Rakuten Inc.		38,500		449,025
Internet Software & Services — 0.8%
Baidu Inc. ADR		9,016		1,704,385	(a)
Leisure Products — 0.1%
Shimano Inc.		1,500		232,678
Life & Health Insurance — 0.8%
AIA Group Ltd.		167,387		1,006,463
Japan Post Holdings Company Ltd.		13,200		204,647	(a)

	Number of Shares		Fair Value
Prudential PLC		22,975	$	518,440
				1,729,550
Movies & Entertainment — 0.2%
Vivendi S.A.		18,314		395,105
Multi-Line Insurance — 0.3%
AXA S.A.		25,269		692,556
Oil & Gas Equipment & Services — 0.3%
Technip S.A.		11,098		551,370
Packaged Foods & Meats — 0.4%
Kerry Group PLC, Class A		3,981		330,007
Nestle S.A.		5,977		445,140
				775,147
Personal Products — 0.2%
Kao Corp.		8,900		462,775
Pharmaceuticals — 1.7%
Astellas Pharma Inc.		23,800		342,572
Bayer AG		5,274		663,435
Roche Holding AG		4,657		1,285,909
Sanofi		10,279		877,654
Shire PLC		6,759		468,019
				3,637,589
Property & Casualty Insurance — 0.9%
ACE Ltd.		5,556		649,219
Insurance Australia Group Ltd.		132,010		534,004
Tokio Marine Holdings Inc.		16,200		634,560
				1,817,783
Railroads — 0.3%
East Japan Railway Co.		5,300		504,468
Security & Alarm Services — 0.2%
Secom Company Ltd.		4,300		294,543
Semiconductor Equipment — 0.3%
ASML Holding N.V.		7,570		678,833
Semiconductors — 0.3%
Taiwan Semiconductor Manufacturing Company Ltd.		137,484		598,539
Specialty Chemicals — 0.4%
Givaudan S.A.		305		555,460
Johnson Matthey PLC		9,020		353,237
				908,697

See Notes to Schedules of Investments and Notes to Financial Statements.

21

Elfun Diversified Fund December 31, 2015

	Number of Shares		Fair Value
Technology Hardware, Storage & Peripherals — 0.2%
Samsung Electronics Company Ltd.		346	$	371,805
Wireless Telecommunication Services — 0.7%
SoftBank Group Corp.		12,900		658,324
Vodafone Group PLC		260,790		849,476
				1,507,800
Total Foreign Equity (Cost $43,022,492)				43,430,981

		Principal Amount		Fair Value
Bonds and Notes — 31.2%
U.S. Treasuries — 5.0%
U.S. Treasury Bonds
2.50%	02/15/45	$	220,800	$	197,703
3.13%	11/15/41		1,211,000		1,248,532
U.S. Treasury Notes
0.63%	05/31/17		1,987,100		1,978,369	(h)
0.88%	10/15/18		1,230,000		1,216,570	(h)
1.38%	10/31/20		3,287,200		3,229,934	(h)
1.88%	10/31/22		2,664,300		2,630,626	(h)
2.00%	08/15/25		55,200		53,819	(h)
					10,555,553
Agency Mortgage Backed — 7.8%
Federal Home Loan Mortgage Corp.
4.50%	06/01/33 - 02/01/35		4,192		4,532
5.00%	07/01/35 - 06/01/41		238,142		265,589
5.50%	05/01/20 - 04/01/39		61,089		68,877
6.00%	04/01/17 - 11/01/37		155,150		175,837
6.50%	11/01/28 - 07/01/29		7,201		8,199
7.00%	10/01/16 - 08/01/36		23,457		26,355
7.50%	09/01/33		1,235		1,308
8.00%	07/01/26 - 11/01/30		2,423		2,658
8.50%	04/01/30		7,392		8,986
Federal National Mortgage Assoc.
2.22%	04/01/37		533		542	(i)
3.00%	02/01/43 - 06/01/43		2,568,267		2,576,197
3.50%	11/01/42 - 08/01/45		2,600,410		2,685,213
4.00%	05/01/19 - 03/01/44		1,401,415		1,489,230
4.50%	05/01/18 - 01/01/41		1,528,873		1,653,315
5.00%	07/01/20 - 06/01/41		415,143		465,029
5.50%	06/01/20 - 01/01/39		280,778		312,871
6.00%	02/01/20 - 05/01/41		735,696		837,122
6.50%	08/01/17 - 08/01/36		29,589		32,991
7.00%	10/01/16 - 12/01/33		2,073		2,155
7.50%	12/01/26 - 12/01/33		6,310		7,110
8.00%	06/01/24 - 01/01/33		10,390		10,947

		Principal Amount		Fair Value
9.00%	12/01/17 - 12/01/22	$	1,910	$	2,070
2.50%	TBA		944,461		951,725	(c)
3.00%	TBA		40,000		39,986	(c)
3.50%	TBA		1,026,138		1,058,355	(c)
4.00%	TBA		268,888		284,460	(c)
5.00%	TBA		260,000		286,151	(c)
Government National Mortgage Assoc.
3.00%	04/20/43 - 06/20/43		569,152		578,902
3.50%	05/20/43		523,786		547,344
4.00%	01/20/41 - 04/20/43		616,410		659,885
4.50%	08/15/33 - 03/20/41		299,396		326,010
5.00%	08/15/33		13,350		14,846
6.00%	07/15/33 - 09/15/36		12,569		14,631
6.50%	04/15/28 - 07/15/36		16,078		18,393
7.00%	04/15/28 - 10/15/36		8,411		9,233
7.50%	07/15/23 - 04/15/28		15,196		15,578
8.00%	05/15/30		462		523
8.50%	10/15/17		1,925		1,983
9.00%	11/15/16 - 12/15/21		2,272		2,374
3.00%	TBA		473,786		480,038	(c)
5.00%	TBA		400,000		438,158	(c)
5.50%	TBA		50,000		55,545	(c)
					16,421,253
Agency Collateralized Mortgage Obligations — 0.1%
Collateralized Mortgage Obligation Trust
0.01%	11/01/18		178		177	(d,f)
Federal Home Loan Mortgage Corp.
0.08%	09/25/43		207,793		592	(g,i)
Federal Home Loan Mortgage Corp. REMIC
3.50%	11/15/24 - 11/15/30		198,301		16,008	(g)
5.50%	06/15/33		10,570		2,211	(g)
6.27%	08/15/25		83,418		8,218	(g,i)
7.50%	07/15/27		8,859		1,173	(g)
8.00%	04/15/20		81		84
Federal Home Loan Mortgage Corp. STRIPS
1.47%	08/01/27		391		355	(d,f)
5.62%	08/15/43		182,272		39,388	(g,i)
8.00%	02/01/23 - 07/01/24		1,564		328	(g)
Federal National Mortgage Assoc. REMIC
0.51%	12/25/22		552		534	(d,f)
1.22%	12/25/42		47,594		1,581	(g,i)
5.00%	09/25/40		100,758		10,820	(g)
5.58%	07/25/38		21,757		3,003	(g,i)
7.08%	05/25/18		38,471		2,165	(g,i)
8.00%	05/25/22		2		28	(g)

See Notes to Schedules of Investments and Notes to Financial Statements.

22

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
Federal National Mortgage Assoc. STRIPS
4.50%	08/25/35 - 01/25/36	$	29,356	$	5,281	(g)
5.00%	03/25/38 - 05/25/38		16,661		3,016	(g)
5.50%	12/25/33		5,065		990	(g)
6.00%	01/25/35		13,557		2,797	(g)
7.50%	11/25/23		15,170		3,252	(g)
8.00%	08/25/23 - 07/25/24		3,254		691	(g)
8.50%	03/25/17 - 07/25/22		620		74	(g)
9.00%	05/25/22		457		80	(g)
Government National Mortgage Assoc.
4.50%	10/20/37 - 08/16/39		146,578		9,994	(g)
5.00%	10/20/37 - 09/20/38		62,980		3,719	(g)
5.85%	02/20/40		77,252		13,218	(g,i)
6.46%	01/16/40		126,101		23,302	(g,i)
					153,079
Corporate Notes — 14.5%
21st Century Fox America Inc.
3.70%	10/15/25		23,000		22,959	(b)
4.95%	10/15/45		9,000		8,864	(b)
6.65%	11/15/37		55,000		63,913
ABB Finance USA Inc.
1.63%	05/08/17		76,000		76,054
AbbVie Inc.
1.75%	11/06/17		68,000		67,872
2.00%	11/06/18		57,000		56,761
2.50%	05/14/20		95,000		94,061
3.60%	05/14/25		36,000		35,534
4.70%	05/14/45		20,000		19,559
ACCO Brands Corp.
6.75%	04/30/20		97,000		99,910
ACE INA Holdings Inc.
2.30%	11/03/20		94,000		93,366
3.15%	03/15/25		66,000		65,267
3.35%	05/03/26		66,000		65,810
4.35%	11/03/45		20,000		20,325
Actavis Funding SCS
1.30%	06/15/17		110,000		108,959
3.00%	03/12/20		47,000		46,963
3.45%	03/15/22		66,000		66,105
3.80%	03/15/25		94,000		93,529
4.75%	03/15/45		10,000		9,749
Activision Blizzard Inc.
5.63%	09/15/21		98,000		102,655	(b)
Aetna Inc.
3.50%	11/15/24		59,000		58,939
Agrium Inc.
3.38%	03/15/25		23,000		20,996
4.90%	06/01/43		41,000		36,676
Altria Group Inc.
2.95%	05/02/23		39,000		37,957

		Principal Amount		Fair Value
4.50%	05/02/43	$	39,000	$	36,989
American Axle & Manufacturing Inc.
6.25%	03/15/21		52,000		53,820
6.63%	10/15/22		20,000		20,950
American Campus Communities Operating Partnership LP
3.35%	10/01/20		38,000		37,956
4.13%	07/01/24		28,000		27,805
American Electric Power Company Inc.
2.95%	12/15/22		75,000		74,126
American Express Co.
3.63%	12/05/24		93,000		91,016
American Express Credit Corp.
2.60%	09/14/20		94,000		94,265
American International Group Inc.
3.75%	07/10/25		94,000		93,215
4.13%	02/15/24		28,000		28,776
4.50%	07/16/44		19,000		17,572
4.80%	07/10/45		47,000		45,446
American Tower Corp. (REIT)
3.40%	02/15/19		142,000		145,690
Amgen Inc.
2.20%	05/22/19		188,000		187,791
Amkor Technology Inc.
6.63%	06/01/21		98,000		97,265
Anadarko Petroleum Corp.
3.45%	07/15/24		19,000		16,888
6.20%	03/15/40		67,000		61,640
Anheuser-Busch InBev Worldwide Inc.
2.50%	07/15/22		155,000		149,197
Anthem Inc.
3.30%	01/15/23		50,000		48,613
Apache Corp.
5.10%	09/01/40		47,000		40,178
Apple Inc.
2.50%	02/09/25		50,000		47,844
2.85%	05/06/21		145,000		148,561
3.45%	02/09/45		45,000		38,739
Aramark Services Inc.
5.75%	03/15/20		105,000		108,609
Ascension Health
4.85%	11/15/53		65,000		70,033
AstraZeneca PLC
2.38%	11/16/20		33,000		32,777
3.38%	11/16/25		47,000		46,664
4.38%	11/16/45		19,000		19,041
AT&T Inc.
2.38%	11/27/18		134,000		135,033
2.45%	06/30/20		93,000		91,624

See Notes to Schedules of Investments and Notes to Financial Statements.

23

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
3.40%	05/15/25	$	93,000	$	89,393
4.50%	05/15/35		47,000		43,473
4.75%	05/15/46		22,000		20,139
4.80%	06/15/44		37,000		33,897
AutoNation Inc.
4.50%	10/01/25		66,000		67,004
AutoZone Inc.
3.25%	04/15/25		94,000		90,963
Bank of America Corp.
1.70%	08/25/17		234,000		233,349
2.60%	01/15/19		81,000		81,275
2.63%	10/19/20		47,000		46,429
3.88%	08/01/25		19,000		19,289
3.95%	04/21/25		106,000		103,229
4.00%	01/22/25		48,000		47,027
4.10%	07/24/23		80,000		82,752
4.25%	10/22/26		85,000		84,145
Barclays Bank PLC
2.25%	05/10/17		500,000		505,322	(b)
Barrick Gold Corp.
4.10%	05/01/23		15,000		12,869
Baxalta Inc.
2.88%	06/23/20		94,000		92,872	(b)
4.00%	06/23/25		71,000		70,300	(b)
Bed Bath & Beyond Inc.
4.92%	08/01/34		14,000		12,483
Berkshire Hathaway Energy Co.
6.13%	04/01/36		45,000		52,444
Berkshire Hathaway Finance Corp.
3.00%	05/15/22		49,000		49,865
Berkshire Hathaway Inc.
4.50%	02/11/43		39,000		39,240
Berry Plastics Corp.
5.13%	07/15/23		60,000		58,350
BHP Billiton Finance USA Ltd.
5.00%	09/30/43		26,000		23,561
Biogen Inc.
2.90%	09/15/20		48,000		47,895
4.05%	09/15/25		48,000		48,249
5.20%	09/15/45		18,000		18,005
Bombardier Inc.
4.75%	04/15/19		38,000		31,255	(b)
6.00%	10/15/22		37,000		25,937	(b)
7.75%	03/15/20		334,000		269,705	(b)
Boston Scientific Corp.
3.85%	05/15/25		45,000		44,285
BP Capital Markets PLC
1.38%	05/10/18		56,000		55,201
3.81%	02/10/24		49,000		48,991
Building Materials Corporation of America
5.38%	11/15/24		118,000		117,705	(b)

		Principal Amount		Fair Value
Burlington Northern Santa Fe LLC
3.65%	09/01/25	$	75,000	$	76,006
Calpine Corp.
5.75%	01/15/25		57,000		50,303
5.88%	01/15/24		129,000		132,225	(b)
Calumet Specialty Products Partners LP/Calumet Finance Corp.
6.50%	04/15/21		98,000		85,260
Canadian Pacific Railway Co.
2.90%	02/01/25		115,000		108,259
Capital One Financial Corp.
4.20%	10/29/25		94,000		92,859
Capital One NA
2.35%	08/17/18		250,000		250,515
Caterpillar Inc.
4.30%	05/15/44		30,000		28,949
Catholic Health Initiatives
2.60%	08/01/18		30,000		30,124
4.35%	11/01/42		24,000		22,445
CBS Corp.
3.70%	08/15/24		73,000		71,031
CCO Safari II LLC
3.58%	07/23/20		71,000		70,593	(b)
4.91%	07/23/25		71,000		70,930	(b)
6.38%	10/23/35		9,000		9,083	(b)
6.48%	10/23/45		19,000		19,007	(b)
Celgene Corp.
3.88%	08/15/25		94,000		93,701
5.00%	08/15/45		47,000		47,180
CenturyLink Inc.
5.80%	03/15/22		196,000		179,634
Cequel Capital Corp.
5.13%	12/15/21		96,000		86,400	(b)
Chevron Corp.
3.33%	11/17/25		66,000		66,476
Cigna Corp.
3.25%	04/15/25		94,000		92,316
Cinemark USA Inc.
4.88%	06/01/23		98,000		95,550
Citigroup Inc.
1.55%	08/14/17		206,000		205,167
1.75%	05/01/18		228,000		226,086
1.85%	11/24/17		45,000		44,936
2.05%	12/07/18		85,000		84,549
2.65%	10/26/20		94,000		93,317
4.40%	06/10/25		47,000		47,493
4.65%	07/30/45		75,000		75,857
CMS Energy Corp.
4.88%	03/01/44		47,000		47,660
CNA Financial Corp.
5.88%	08/15/20		60,000		66,513

See Notes to Schedules of Investments and Notes to Financial Statements.

24

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
Cogeco Cable Inc.
4.88%	05/01/20	$	75,000	$	74,812	(b)
Colgate-Palmolive Co.
4.00%	08/15/45		47,000		47,104
Columbia Pipeline Group Inc.
3.30%	06/01/20		66,000		64,291	(b)
4.50%	06/01/25		47,000		42,600	(b)
Comcast Corp.
3.38%	08/15/25		159,000		161,063
4.20%	08/15/34		48,000		47,541
4.60%	08/15/45		45,000		45,559
ConocoPhillips Co.
3.35%	11/15/24		94,000		86,007
Continental Resources Inc.
3.80%	06/01/24		20,000		14,094
4.50%	04/15/23		18,000		12,940
4.90%	06/01/44		11,000		6,635
Corp Andina de Fomento
4.38%	06/15/22		121,000		128,817
Crown Americas LLC/Crown Americas Capital Corp. IV
4.50%	01/15/23		116,000		113,390
CSX Corp.
4.50%	08/01/54		29,000		26,304
CubeSmart LP
4.00%	11/15/25		26,000		25,816
CVS Health Corp.
2.25%	08/12/19		143,000		142,865
3.88%	07/20/25		94,000		95,950
5.13%	07/20/45		69,000		72,687
Daimler Finance North America LLC
2.38%	08/01/18		150,000		150,228	(b)
Danaher Corp.
2.40%	09/15/20		46,000		46,004
3.35%	09/15/25		48,000		48,757
4.38%	09/15/45		26,000		26,856
Denbury Resources Inc.
5.50%	05/01/22		98,000		32,534
6.38%	08/15/21		54,000		19,440
Devon Energy Corp.
5.85%	12/15/25		38,000		36,960
Dexia Credit Local S.A.
2.25%	01/30/19		250,000		251,627	(b)
Diageo Investment Corp.
2.88%	05/11/22		105,000		104,092
DigitalGlobe Inc.
5.25%	02/01/21		81,000		68,040	(b)
DIRECTV Holdings LLC/DIRECTV Financing Company Inc.
4.45%	04/01/24		72,000		73,957
Dollar General Corp.
1.88%	04/15/18		95,000		94,086

		Principal Amount			Fair Value
4.13%	07/15/17	$	94,000		$	96,531
4.15%	11/01/25		47,000			46,721
Dollar Tree Inc.
5.75%	03/01/23		117,000			121,972	(b)
Dominion Resources Inc.
1.95%	08/15/16		154,000			154,387
Dr Pepper Snapple Group Inc.
3.40%	11/15/25		94,000			92,347
Duke Energy Progress LLC
4.15%	12/01/44		30,000			29,299
Eastman Chemical Co.
3.60%	08/15/22		93,000			92,596
Ecopetrol S.A.
5.88%	05/28/45		24,000			17,040
Electricite de France S.A.
2.15%	01/22/19		193,000			192,103	(b)
Eli Lilly & Co.
3.70%	03/01/45		10,000			9,353
EMD Finance LLC
3.25%	03/19/25		46,000			43,619	(b)
Energizer Holdings Inc.
5.50%	06/15/25		98,000			92,120	(b)
Energy Transfer Equity LP
5.88%	01/15/24		194,000			158,110
Energy Transfer Partners LP
4.05%	03/15/25		19,000			15,612
5.15%	03/15/45		33,000			23,327
6.50%	02/01/42		62,000			50,428
Ensco PLC
4.50%	10/01/24		46,000	��		31,679
5.20%	03/15/25		29,000			20,648
5.75%	10/01/44		17,000			11,200
Enterprise Products Operating LLC
3.70%	02/15/26		95,000			85,286
Equinix Inc.
5.88%	01/15/26		20,000			20,600
ERP Operating LP
4.50%	07/01/44		19,000			19,067
European Investment Bank
4.88%	01/17/17		150,000			155,957
FedEx Corp.
3.20%	02/01/25		30,000			29,203
Five Corners Funding Trust
4.42%	11/15/23		200,000			208,819	(b)
Florida Power & Light Co.
4.13%	02/01/42		92,000			91,562
Freeport-McMoRan Inc.
4.55%	11/14/24		26,000			14,885
Fresenius Medical Care US Finance Inc.
5.75%	02/15/21		123,000			131,610	(b)

See Notes to Schedules of Investments and Notes to Financial Statements.

25

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
Frontier Communications Corp.
7.13%	03/15/19	$	110,000	$	109,989
11.00%	09/15/25		89,000		88,110	(b)
General Motors Co.
5.20%	04/01/45		9,000		8,473
General Motors Financial Company Inc.
3.15%	01/15/20		66,000		65,413
3.20%	07/13/20		188,000		185,105
4.30%	07/13/25		94,000		91,212
Georgia-Pacific LLC
3.60%	03/01/25		140,000		138,448	(b)
Gilead Sciences Inc.
2.55%	09/01/20		45,000		45,004
3.65%	03/01/26		50,000		50,444
4.80%	04/01/44		51,000		51,161
Halliburton Co.
2.70%	11/15/20		47,000		46,476
3.80%	11/15/25		47,000		45,794
5.00%	11/15/45		28,000		27,659
HCA Inc.
4.75%	05/01/23		160,000		158,400
6.50%	02/15/20		138,000		150,351
HSBC USA Inc.
2.75%	08/07/20		141,000		141,074
Hyundai Capital America
2.13%	10/02/17		35,000		34,792	(b)
Illinois Tool Works Inc.
3.50%	03/01/24		95,000		97,670
Ingersoll-Rand Luxembourg Finance S.A.
3.55%	11/01/24		65,000		63,640
Ingles Markets Inc.
5.75%	06/15/23		92,000		91,770
Intel Corp.
2.45%	07/29/20		47,000		47,558
Intelsat Jackson Holdings S.A.
5.50%	08/01/23		96,000		75,360
Interstate Power & Light Co.
3.40%	08/15/25		150,000		150,904
Invesco Finance PLC
3.13%	11/30/22		107,000		105,558
JB Poindexter & Company Inc.
9.00%	04/01/22		23,000		24,035	(b)
JBS USA LLC/JBS USA Finance Inc.
5.75%	06/15/25		78,000		67,860	(b)
5.88%	07/15/24		53,000		47,965	(b)
Jefferies Group LLC
5.13%	01/20/23		83,000		82,354
6.50%	01/20/43		26,000		24,038
Johnson Controls Inc.
4.63%	07/02/44		46,000		38,985

		Principal Amount		Fair Value
JPMorgan Chase & Co.
2.55%	10/29/20	$	94,000	$	93,163
3.88%	09/10/24		190,000		189,098
5.00%	12/29/49		68,000		64,600	(i)
6.10%	10/29/49		110,000		110,561	(i)
KB Home
7.00%	12/15/21		116,000		114,405
Keysight Technologies Inc.
4.55%	10/30/24		95,000		91,336
KFW
2.00%	10/04/22		246,000		242,033
4.50%	07/16/18		102,000		109,652
Kinder Morgan Energy Partners LP
3.50%	09/01/23		22,000		18,251
4.30%	05/01/24		50,000		42,994
Kinder Morgan Inc.
3.05%	12/01/19		19,000		17,591
4.30%	06/01/25		38,000		32,849
5.55%	06/01/45		28,000		21,866
Kinross Gold Corp.
6.88%	09/01/41		5,000		2,740
Kraft Heinz Foods Co.
2.80%	07/02/20		141,000		140,669	(b)
3.95%	07/15/25		122,000		123,181	(b)
L Brands Inc.
5.63%	02/15/22		102,000		108,375
L-3 Communications Corp.
1.50%	05/28/17		65,000		64,194
Lee Enterprises Inc.
9.50%	03/15/22		78,000		71,760	(b)
Lennar Corp.
4.50%	11/15/19		118,000		119,991
4.75%	05/30/25		39,000		38,123
Levi Strauss & Co.
5.00%	05/01/25		59,000		58,705
Lockheed Martin Corp.
2.50%	11/23/20		66,000		65,768
3.55%	01/15/26		94,000		94,483
3.80%	03/01/45		20,000		17,715
4.70%	05/15/46		21,000		21,609
Lowe’s Companies Inc.
4.38%	09/15/45		35,000		35,975
LyondellBasell Industries N.V.
4.63%	02/26/55		19,000		15,408
Marathon Petroleum Corp.
3.63%	09/15/24		95,000		88,572
Marsh & McLennan Companies Inc.
3.50%	03/10/25		68,000		66,983
3.75%	03/14/26		65,000		65,004
Mattel Inc.
2.35%	05/06/19		143,000		141,810

See Notes to Schedules of Investments and Notes to Financial Statements.

26

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
McDonald’s Corp.
2.75%	12/09/20	$	25,000	$	24,988
3.70%	01/30/26		59,000		58,966
4.88%	12/09/45		20,000		20,108
Mead Johnson Nutrition Co.
3.00%	11/15/20		66,000		66,010
4.13%	11/15/25		66,000		66,531
Medtronic Inc.
2.50%	03/15/20		28,000		28,206
3.50%	03/15/25		187,000		189,214
4.63%	03/15/45		120,000		123,723
Memorial Sloan-Kettering Cancer Center
4.13%	07/01/52		30,000		27,985
Merck & Company Inc.
2.75%	02/10/25		95,000		92,492
MetLife Inc.
3.60%	11/13/25		47,000		47,362
4.05%	03/01/45		24,000		22,236
4.72%	12/15/44		28,000		28,595
MGM Resorts International
5.25%	03/31/20		59,000		58,410
6.63%	12/15/21		98,000		100,327
Microsoft Corp.
4.00%	02/12/55		45,000		40,391
Mid-America Apartments LP
4.00%	11/15/25		47,000		46,694
Mizuho Bank Ltd.
2.45%	04/16/19		200,000		200,146	(b)
Monsanto Co.
4.70%	07/15/64		27,000		20,501
Morgan Stanley
2.65%	01/27/20		45,000		44,893
3.70%	10/23/24		145,000		145,710
3.95%	04/23/27		94,000		91,274
4.00%	07/23/25		46,000		47,409
4.10%	05/22/23		154,000		155,684
4.88%	11/01/22		10,000		10,619
5.00%	11/24/25		36,000		38,238
Motorola Solutions Inc.
4.00%	09/01/24		33,000		28,641
National Retail Properties Inc.
4.00%	11/15/25		47,000		46,178
NCL Corporation Ltd.
4.63%	11/15/20		49,000		47,982	(b)
Newfield Exploration Co.
5.63%	07/01/24		36,000		30,690
5.75%	01/30/22		89,000		78,765
Newmont Mining Corp.
4.88%	03/15/42		37,000		26,433
Nexen Energy ULC
6.40%	05/15/37		41,000		45,855

		Principal Amount		Fair Value
NIKE Inc.
3.88%	11/01/45	$	47,000	$	45,321
Noble Energy Inc.
3.90%	11/15/24		56,000		49,870
Northern States Power Co.
2.20%	08/15/20		94,000		93,366
Northrop Grumman Corp.
3.85%	04/15/45		11,000		9,890
Novartis Capital Corp.
3.00%	11/20/25		124,000		122,238
4.00%	11/20/45		62,000		60,670
NRG Energy Inc.
6.25%	07/15/22		59,000		51,183
Occidental Petroleum Corp.
3.50%	06/15/25		94,000		91,864
Omnicom Group Inc.
3.63%	05/01/22		31,000		31,303
Oracle Corp.
2.25%	10/08/19		187,000		189,019
2.95%	05/15/25		95,000		92,754
4.13%	05/15/45		17,000		16,090
Owens & Minor Inc.
3.88%	09/15/21		95,000		94,630
Pacific Gas & Electric Co.
3.40%	08/15/24		140,000		140,581
PacifiCorp
6.25%	10/15/37		132,000		163,271
Penn National Gaming Inc.
5.88%	11/01/21		58,000		56,260
PepsiCo Inc.
3.10%	07/17/22		24,000		24,614
4.25%	10/22/44		28,000		27,783
4.60%	07/17/45		28,000		29,606
Petrobras Global Finance BV
3.50%	02/06/17		76,000		71,060
3.88%	01/27/16		34,000		33,864
Petroleos Mexicanos
3.50%	01/30/23		41,000		35,773
Pfizer Inc.
4.40%	05/15/44		29,000		29,449
Philip Morris International Inc.
4.13%	03/04/43		39,000		36,870
Phillips 66 Partners LP
2.65%	02/15/20		28,000		26,428
3.61%	02/15/25		47,000		41,272
Pitney Bowes Inc.
4.63%	03/15/24		81,000		79,388
Plains All American Pipeline LP/PAA Finance Corp.
4.65%	10/15/25		28,000		24,456
Precision Castparts Corp.
4.38%	06/15/45		28,000		28,056

See Notes to Schedules of Investments and Notes to Financial Statements.

27

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
Principal Financial Group Inc.
4.70%	05/15/55	$	95,000	$	94,430	(i)
Prologis LP
3.75%	11/01/25		47,000		46,622
Prudential Financial Inc.
5.38%	05/15/45		47,000		46,941	(i)
5.63%	06/15/43		46,000		47,035	(i)
Public Service Electric & Gas Co.
2.38%	05/15/23		117,000		112,092
QUALCOMM Inc.
2.25%	05/20/20		37,000		36,657
3.45%	05/20/25		34,000		32,617
4.80%	05/20/45		32,000		28,445
Quest Diagnostics Inc.
4.70%	03/30/45		28,000		25,214
Regency Energy Partners LP/Regency Energy Finance Corp.
4.50%	11/01/23		66,000		57,126
Revlon Consumer Products Corp.
5.75%	02/15/21		152,000		147,060
Reynolds American Inc.
4.45%	06/12/25		28,000		29,300
Rio Tinto Finance USA Ltd.
3.75%	06/15/25		24,000		21,803
Rogers Communications Inc.
5.00%	03/15/44		30,000		30,182
Rowan Companies Inc.
5.85%	01/15/44		19,000		11,465
Royal Bank of Canada
1.20%	09/19/17		323,000		321,491
Ryder System Inc.
2.45%	09/03/19		116,000		114,316
Schaeffler Holding Finance BV (6.25% Cash/7.00% PIK)
6.25%	11/15/19		200,000		209,000	(b,n)
Schaeffler Holding Finance BV (6.88% Cash/7.63% PIK)
6.88%	08/15/18		200,000		206,000	(b,n)
Schlumberger Holdings Corp.
3.00%	12/21/20		128,000		126,365	(b)
4.00%	12/21/25		85,000		83,921	(b)
Sealed Air Corp.
4.88%	12/01/22		59,000		59,148	(b)
5.13%	12/01/24		59,000		59,000	(b)
Shell International Finance BV
2.25%	11/10/20		94,000		92,590
3.40%	08/12/23		141,000		140,198
Sinclair Television Group Inc.
5.38%	04/01/21		103,000		103,257
Sinopec Capital 2013 Ltd.
3.13%	04/24/23		200,000		190,658	(b)
Southern California Edison Co.
2.40%	02/01/22		35,000		34,323

		Principal Amount		Fair Value
Spectra Energy Partners LP
4.75%	03/15/24	$	48,000	$	46,518
Sprint Corp.
7.25%	09/15/21		52,000		38,740
7.63%	02/15/25		114,000		83,220
State Street Corp.
3.55%	08/18/25		100,000		103,160	(e)
Statoil ASA
3.70%	03/01/24		42,000		42,574
3.95%	05/15/43		23,000		20,775
Sunoco LP/Sunoco Finance Corp.
5.50%	08/01/20		39,000		36,953	(b)
SUPERVALU Inc.
6.75%	06/01/21		97,000		87,785
T-Mobile USA Inc.
6.25%	04/01/21		50,000		51,625
6.50%	01/15/26		29,000		29,275
6.63%	04/01/23		98,000		99,960
Tampa Electric Co.
4.35%	05/15/44		47,000		46,043
Target Corp.
3.50%	07/01/24		59,000		61,244
TD Ameritrade Holding Corp.
2.95%	04/01/22		48,000		47,578
Teachers Insurance & Annuity Association of America
4.90%	09/15/44		95,000		95,955	(b)
Teck Resources Ltd.
2.50%	02/01/18		27,000		20,520
3.15%	01/15/17		39,000		35,100
Tenet Healthcare Corp.
4.75%	06/01/20		196,000		196,980
6.00%	10/01/20		96,000		101,040
The Allstate Corp.
5.75%	08/15/53		52,000		53,456	(i)
The Boeing Co.
1.65%	10/30/20		47,000		46,012
2.60%	10/30/25		47,000		45,500
2.85%	10/30/24		140,000		138,680
The Coca-Cola Co.
2.88%	10/27/25		94,000		92,687
The Dow Chemical Co.
4.25%	10/01/34		43,000		38,800
The Goldman Sachs Group Inc.
2.38%	01/22/18		92,000		92,801
2.60%	04/23/20		95,000		94,784
2.63%	01/31/19		53,000		53,386
2.90%	07/19/18		62,000		63,213
3.75%	05/22/25		78,000		78,552
4.00%	03/03/24		47,000		48,265
4.25%	10/21/25		82,000		81,424
4.80%	07/08/44		102,000		101,316
5.15%	05/22/45		47,000		45,623

See Notes to Schedules of Investments and Notes to Financial Statements.

28

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
The Home Depot Inc.
3.35%	09/15/25	$	66,000	$	67,483
The Korea Development Bank
3.25%	03/09/16		122,000		122,482
The Kroger Co.
2.95%	11/01/21		65,000		64,370
The Progressive Corp.
3.70%	01/26/45		36,000		32,581
The Toronto-Dominion Bank
2.50%	12/14/20		85,000		84,962
The Walt Disney Co.
2.15%	09/17/20		31,000		30,996
3.15%	09/17/25		14,000		14,161
The Williams Companies Inc.
8.75%	03/15/32		18,000		13,569
TIAA Asset Management Finance Company LLC
4.13%	11/01/24		48,000		48,189	(b)
Time Inc.
5.75%	04/15/22		99,000		90,585	(b)
Time Warner Cable Inc.
4.50%	09/15/42		9,000		7,063
6.55%	05/01/37		28,000		28,320
Time Warner Inc.
3.60%	07/15/25		102,000		99,340
3.88%	01/15/26		86,000		85,293
5.35%	12/15/43		85,000		84,805
Tyco Electronics Group S.A.
2.35%	08/01/19		95,000		94,689
Tyco International Finance S.A.
5.13%	09/14/45		30,000		31,126
Tyson Foods Inc.
2.65%	08/15/19		48,000		48,039
3.95%	08/15/24		32,000		32,857
5.15%	08/15/44		32,000		33,418
U.S. Bancorp
3.44%	02/01/16		118,000		118,151
5.13%	12/29/49		94,000		94,442	(i)
Ultra Petroleum Corp.
6.13%	10/01/24		99,000		22,523	(b)
United Rentals North America Inc.
6.13%	06/15/23		77,000		78,732
UnitedHealth Group Inc.
2.70%	07/15/20		111,000		112,206
4.75%	07/15/45		74,000		77,871
Valeant Pharmaceuticals International Inc.
6.13%	04/15/25		78,000		69,615	(b)
6.38%	10/15/20		71,000		68,515	(b)
Ventas Realty LP
4.13%	01/15/26		40,000		39,873

		Principal Amount		Fair Value
Verizon Communications Inc.
1.35%	06/09/17	$	230,000	$	229,345
3.50%	11/01/24		46,000		45,457
4.15%	03/15/24		93,000		95,632
4.40%	11/01/34		47,000		43,364
4.67%	03/15/55		32,000		27,759
4.86%	08/21/46		47,000		44,465
5.05%	03/15/34		29,000		28,876
5.15%	09/15/23		68,000		74,762
6.55%	09/15/43		32,000		37,990
Visa Inc.
2.80%	12/14/22		60,000		60,108
3.15%	12/14/25		60,000		60,127
4.30%	12/14/45		28,000		28,380
Volkswagen Group of America Finance LLC
2.13%	05/23/19		234,000		222,062	(b)
W.R. Grace & Co.
5.13%	10/01/21		35,000		35,350	(b)
5.63%	10/01/24		98,000		98,980	(b)
Wal-Mart Stores Inc.
4.30%	04/22/44		88,000		89,725
Wells Fargo & Co.
2.55%	12/07/20		85,000		84,574
3.00%	02/19/25		47,000		45,719
3.90%	05/01/45		47,000		43,334
4.10%	06/03/26		60,000		60,570
4.30%	07/22/27		38,000		38,823
5.88%	12/29/49		66,000		69,465	(i)
5.90%	12/29/49		62,000		62,542	(i)
Williams Partners LP
5.40%	03/04/44		9,000		6,030
Windstream Services LLC
6.38%	08/01/23		73,000		52,560
WMG Acquisition Corp.
6.00%	01/15/21		20,000		20,100	(b)
WPP Finance 2010
3.75%	09/19/24		95,000		94,559
WPX Energy Inc.
5.25%	01/15/17		75,000		70,125
XLIT Ltd.
5.25%	12/15/43		40,000		41,366
Zimmer Biomet Holdings Inc.
3.55%	04/01/25		47,000		45,696
					30,359,517
Non-Agency Collateralized Mortgage Obligations — 3.2%
American Tower Trust I (REIT)
1.55%	03/15/43		117,000		114,267	(b)
Banc of America Commercial Mortgage Trust 2006-4
5.68%	07/10/46		30,000		30,625

See Notes to Schedules of Investments and Notes to Financial Statements.

29

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
Banc of America Commercial Mortgage Trust 2007-1
5.48%	01/15/49	$	160,000	$	163,836	(i)
Banc of America Commercial Mortgage Trust 2007-4
5.74%	02/10/51		17,177		17,871	(i)
Banc of America Commercial Mortgage Trust 2008-1
6.22%	02/10/51		189,612		200,801	(i)
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-1
5.34%	11/10/42		17,234		17,215	(i)
Banc of America Merrill Lynch Commercial Mortgage Trust 2014-520M
4.18%	08/15/46		38,035		39,294	(b,i)
Bear Stearns Commercial Mortgage Securities Trust 2006-T22
5.62%	04/12/38		40,000		40,270	(i)
Bear Stearns Commercial Mortgage Securities Trust 2007-PW18
6.09%	06/11/50		80,000		84,895	(i)
Citigroup Commercial Mortgage Trust 2014-GC23
4.51%	07/10/47		192,000		160,132	(b,i)
Citigroup Commercial Mortgage Trust 2015-GC33
3.17%	09/10/58		39,319		27,478
Citigroup Commercial Mortgage Trust 2015-P1
3.72%	09/15/48		161,993		165,080
COMM 2014-CR14 Mortgage Trust
4.53%	02/10/47		55,000		59,008	(i)
COMM 2014-CR19 Mortgage Trust
4.72%	08/10/47		100,000		86,502	(b,i)
COMM 2014-CR20 Mortgage Trust
4.51%	11/10/47		48,472		47,110	(i)
COMM 2014-CR21 Mortgage Trust
3.99%	12/10/47		93,831		96,582
COMM 2015-CR23 Mortgage Trust
4.26%	05/10/48		46,009		42,392	(i)
COMM 2015-CR24 Mortgage Trust
3.46%	08/10/55		100,000		74,125
3.70%	08/10/55		78,578		79,860
4.37%	08/10/55		70,790		67,398	(i)

		Principal Amount		Fair Value
COMM 2015-LC19 Mortgage Trust
2.87%	02/10/48	$	104,000	$	77,385	(b)
COMM 2015-PC1 Mortgage Trust
4.44%	07/10/50		46,053		45,848	(i)
Core Industrial Trust 2015-CALW
3.25%	02/10/34		100,000		99,400	(b)
Credit Suisse Commercial Mortgage Trust 2006-C1
5.46%	02/15/39		114,614		114,514	(i)
CSAIL 2015-C3 Commercial Mortgage Trust
3.36%	08/15/48		47,194		34,116	(i)
4.11%	08/15/48		62,926		61,638	(i)
GS Mortgage Securities Trust 2011-GC5
3.00%	08/10/44		78,834		79,228
5.31%	08/10/44		30,000		33,052	(b,i)
GS Mortgage Securities Trust 2014-GC20
4.26%	04/10/47		50,000		52,248
GS Mortgage Securities Trust 2014-NEW
3.79%	01/10/31		100,000		99,823	(b)
GS Mortgage Securities Trust 2015-GC28
1.17%	02/10/48		993,504		68,108	(g,i)
GS Mortgage Securities Trust 2015-GC32
3.35%	07/10/48		43,241		31,495
4.41%	07/10/48		20,300		19,540	(i)
GS Mortgage Securities Trust 2015-GC34
2.98%	10/10/48		103,476		71,848
GS Mortgage Securities Trust 2015-GS1
3.27%	11/10/48		113,380		82,047
JP Morgan Chase Commercial Mortgage Securities Trust 2007-CB18
5.44%	06/12/47		90,156		92,317
JPMBB Commercial Mortgage Securities Trust 2013-C12
4.03%	07/15/45		25,000		25,981	(i)
JPMBB Commercial Mortgage Securities Trust 2013-C15
5.08%	11/15/45		40,000		41,590	(i)
JPMBB Commercial Mortgage Securities Trust 2013-C17
4.89%	01/15/47		71,000		71,633	(i)
JPMBB Commercial Mortgage Securities Trust 2014-C18
4.81%	02/15/47		50,000		49,901	(i)

See Notes to Schedules of Investments and Notes to Financial Statements.

30

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
JPMBB Commercial Mortgage Securities Trust 2015-C29
3.70%	05/15/48	$	85,183	$	63,584	(i)
JPMBB Commercial Mortgage Securities Trust 2015-C30
4.31%	07/15/48		78,620		69,993	(i)
JPMBB Commercial Mortgage Securities Trust 2015-C31
3.80%	08/15/48		117,952		120,607
LB-UBS Commercial Mortgage Trust 2004-C8
0.47%	12/15/39		27,238		141	(b,g,i)
LB-UBS Commercial Mortgage Trust 2006-C4
5.82%	06/15/38		24,769		24,986	(i)
LB-UBS Commercial Mortgage Trust 2007-C6
6.11%	07/15/40		120,000		125,327	(b)
6.11%	07/15/40		52,305		54,623	(i)
MASTR Alternative Loan Trust 2003-5
5.00%	08/25/18		4,430		184	(g)
ML-CFC Commercial Mortgage Trust 2006-3
5.46%	07/12/46		110,000		111,802	(i)
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10
4.08%	07/15/46		89,000		86,549	(i)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15
4.90%	04/15/47		200,000		181,397	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18
3.39%	10/15/47		100,000		77,087	(b)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19
3.25%	12/15/47		100,000		74,448	(b)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20
1.42%	02/15/48		728,361		62,888	(g,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C21
0.99%	03/15/48		869,643		56,077	(g,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C22
3.88%	04/15/48		82,660		80,736	(i)
4.24%	04/15/48		206,915		167,966	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23
4.14%	07/15/50		203,800		164,883	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24
3.73%	05/15/48		183,686		187,292
4.35%	05/15/48		157,312		155,864	(i)

		Principal Amount		Fair Value
Morgan Stanley Capital I Trust 2005-T17
4.84%	12/13/41	$	11,802	$	11,845	(i)
Morgan Stanley Capital I Trust 2006-IQ11
5.78%	10/15/42		40,000		39,971	(i)
Morgan Stanley Capital I Trust 2006-T21
5.27%	10/12/52		40,336		40,313	(i)
Morgan Stanley Capital I Trust 2006-T23
5.85%	08/12/41		24,983		25,158	(i)
Morgan Stanley Capital I Trust 2007-IQ16
6.05%	12/12/49		80,000		83,879	(i)
Morgan Stanley Capital I Trust 2008-T29
6.27%	01/11/43		50,000		53,570	(i)
Morgan Stanley Capital I Trust 2015-MS1
4.03%	05/15/48		100,000		78,562	(b,i)
Morgan Stanley Capital I Trust 2015-UBS8
3.81%	12/15/48		171,169		174,089
Wells Fargo Commercial Mortgage Trust 2015-C26
1.41%	02/15/48		990,077		85,346	(g,i)
Wells Fargo Commercial Mortgage Trust 2015-C29
4.01%	06/15/48		138,309		141,047
4.22%	06/15/48		64,245		50,475	(i)
Wells Fargo Commercial Mortgage Trust 2015-C30
4.50%	09/15/58		39,326		31,986	(b,i)
Wells Fargo Commercial Mortgage Trust 2015-C31
3.70%	11/15/48		78,643		79,739
Wells Fargo Commercial Mortgage Trust 2015-LC22
4.54%	09/15/58		39,338		32,153	(i)
Wells Fargo Commercial Mortgage Trust 2015-NXS2
4.25%	07/15/58		39,311		30,972	(i)
Wells Fargo Commercial Mortgage Trust 2015-P2
4.90%	12/15/48		199,241		194,868	(i)
Wells Fargo Commercial Mortgage Trust 2015-SG1
3.79%	12/15/47		102,189		104,514
4.47%	12/15/47		39,317		37,050	(i)

See Notes to Schedules of Investments and Notes to Financial Statements.

31

Elfun Diversified Fund December 31, 2015

		Principal Amount		Fair Value
WFRBS Commercial Mortgage Trust 2013-C17
4.26%	12/15/46	$	55,000	$	58,137
5.13%	12/15/46		40,000		38,080	(b,i)
WFRBS Commercial Mortgage Trust 2013-C18
4.67%	12/15/46		47,667		44,304	(b,i)
WFRBS Commercial Mortgage Trust 2014-C19
4.23%	03/15/47		78,742		66,103	(b)
4.72%	03/15/47		65,000		68,103	(i)
WFRBS Commercial Mortgage Trust 2014-C22
3.91%	09/15/57		124,695		100,597	(b,i)
WFRBS Commercial Mortgage Trust 2014-C24
3.69%	11/15/47		156,648		120,436	(b)
WFRBS Commercial Mortgage Trust 2014-C25
3.80%	11/15/47		23,000		17,591	(b,i)
WFRBS Commercial Mortgage Trust 2014-LC14
4.35%	03/15/47		123,000		129,792	(i)
4.59%	03/15/47		130,681		111,893	(b,i)
WFRBS Commercial Mortgage Trust 2015-C31
3.85%	11/15/48		19,659		14,443
					6,797,903
Sovereign Bonds — 0.4%
Government of Argentina
2.50%	12/31/38		9		6	(o)
Government of Colombia
2.63%	03/15/23		200,000		175,700
Government of Mexico
3.60%	01/30/25		205,000		199,772
4.00%	10/02/23		46,000		46,598
4.75%	03/08/44		176,000		160,336
Government of Peru
4.13%	08/25/27		27,000		26,460
5.63%	11/18/50		15,000		15,300
Government of Turkey
3.25%	03/23/23		200,000		183,211
					807,383
Municipal Bonds and Notes — 0.2%
American Municipal Power Inc.
6.27%	02/15/50		50,000		58,146
Municipal Electric Authority of Georgia
6.64%	04/01/57		54,000		64,806
New Jersey Transportation Trust Fund Authority
6.88%	12/15/39		15,000		15,719

		Principal Amount		Fair Value
Port Authority of New York & New Jersey
4.46%	10/01/62	$	95,000	$	91,302
South Carolina State Public Service Authority
6.45%	01/01/50		40,000		50,103
State of California
5.70%	11/01/21		55,000		64,520
State of Illinois
5.10%	06/01/33		30,000		28,370
					372,966
FNMA (TBA) — 0.0%*
Lehman TBA
5.50%	TBA		38,818		2,135		(o,q)
Total Bonds and Notes (Cost $66,388,778)					65,469,789
		Number of Shares		Fair Value
Exchange Traded Funds — 4.6%
Financial Select Sector SPDR Fund			8,884	$	211,262		(p)
Industrial Select Sector SPDR Fund			16,195		858,497		(p)
Vanguard FTSE Emerging Markets ETF			262,019		8,570,641
Total Exchange Traded Funds (Cost $10,768,050)					9,640,400
Total Investments in Securities (Cost $178,343,016)					184,123,143
Short-Term Investments — 13.6%
State Street Institutional U.S. Government Money Market Fund — Premier Class
0.09%				$	28,561,801		(d,h,p)
(Cost $28,561,801)
Total Investments (Cost $206,904,817)					212,684,944
Liabilities in Excess of Other Assets, net — (1.4)%					(2,996,687	)
NET ASSETS — 100.0%				$	209,688,257

See Notes to Schedules of Investments and Notes to Financial Statements.

32

Elfun Diversified Fund December 31, 2015

Other Information:

Centrally Cleared Credit Default Swaps – Sell Protection

Reference Entity	Counterparty	Notional Amount (000s omitted)			Contract annual Fixed Rate			Termination Date		Market Value			Unamortized Upfront Payments Received				Unrealized Appreciation
Markit CDX North America High Yield Index	CME Group Inc.		$	700		5.00	%		12/20/20		$	8,982		$	(3,746	)		$	12,728

The Fund had the following long futures contracts open at December 31, 2015:

Description	Expiration date	Number of Contracts		Current Notional Value			Unrealized Appreciation (Depreciation)
EURO Stoxx 50 Index Futures	March 2016		23		$	820,005		$	4,682
FTSE 100 Index Futures	March 2016		3			274,057			7,177
S&P 500 Emini Index Futures	March 2016		13			1,323,010			14,584
S&P Mid 400 Emini Index Futures	March 2016		46			6,410,100			93,447
Topix Index Futures	March 2016		4			514,568			8,571
U.S. Long Bond Futures	March 2016		3			461,250			(6,663	)
Ultra Long-Term U.S. Treasury Bond Futures	March 2016		6			952,125			2,705
2 Yr. U.S. Treasury Notes Futures	March 2016		29			6,299,797			(13,253	)
5 Yr. U.S. Treasury Notes Futures	March 2016		9			1,064,883			(3,485	)
								$	107,765

The Fund had the following short futures contracts open at December 31, 2015:

Description	Expiration date	Number of Contracts		Current Notional Value				Unrealized Appreciation (Depreciation)
S&P 500 Emini Index Futures	March 2016		45		$	(4,579,650	)		$	(58,159	)
10 Yr. U.S. Treasury Notes Futures	March 2016		70			(8,813,438	)			57,119
									$	(1,040	)
									$	106,725

The Fund was invested in the following countries/territories at December 31, 2015:

Country/Territory	Percentage (based on Fair Value)
United States		76.44%
Japan		5.54%
United Kingdom		3.08%
France		2.81%
Germany		2.14%
Switzerland		1.79%
Canada		0.99%
Sweden		0.98%
China		0.91%
Ireland		0.85%
Netherlands		0.80%
Hong Kong		0.47%
India		0.39%
Belgium		0.39%
Mexico		0.29%
Taiwan		0.28%
Luxembourg		0.28%
Australia		0.27%
Italy		0.27%
South Korea		0.25%
Norway		0.24%
Supranational		0.13%
Spain		0.12%
Colombia		0.09%
Turkey		0.09%
Brazil		0.05%
Bermuda		0.02%
Peru		0.02%
Cayman Islands		0.02%
Argentina		0.00%	**
		100.00%

See Notes to Schedules of Investments and Notes to Financial Statements.

33

Elfun Diversified Fund December 31, 2015

The Fund’s % share of investment in the various categories, based on Fair Value, is as follows at December 31, 2015 (unaudited):

Industry	Domestic		Foreign		Total
Diversified Banks		2.30%		2.54%		4.84%
Pharmaceuticals		2.86%		1.71%		4.57%
Exchange Traded Funds		4.53%		0.00%		4.53%
Internet Software & Services		1.79%		0.79%		2.58%
Integrated Oil & Gas		1.49%		0.76%		2.25%
Healthcare Equipment		0.88%		1.02%		1.90%
Biotechnology		1.83%		0.00%		1.83%
Communications Equipment		1.26%		0.33%		1.59%
Aerospace & Defense		1.10%		0.47%		1.57%
Technology Hardware, Storage & Peripherals		1.30%		0.18%		1.48%
Cable & Satellite		1.47%		0.00%		1.47%
Asset Management & Custody Banks		1.37%		0.00%		1.37%
Multi-Line Insurance		0.66%		0.32%		0.98%
Life & Health Insurance		0.16%		0.81%		0.97%
Industrial Machinery		0.43%		0.48%		0.91%
Movies & Entertainment		0.70%		0.19%		0.89%
Property & Casualty Insurance		0.00%		0.86%		0.86%
Electronic Equipment & Instruments		0.00%		0.79%		0.79%
Diversified Real Estate Activities		0.00%		0.75%		0.75%
Packaged Foods & Meats		0.37%		0.36%		0.73%
Automobile Manufacturers		0.20%		0.53%		0.73%
Internet Retail		0.51%		0.21%		0.72%
Oil & Gas Equipment & Services		0.45%		0.26%		0.71%
Wireless Telecommunication Services		0.00%		0.71%		0.71%
Specialized Finance		0.70%		0.00%		0.70%
Specialized REITs		0.69%		0.00%		0.69%
Semiconductor Equipment		0.37%		0.32%		0.69%
Data Processing & Outsourced Services		0.69%		0.00%		0.69%
Auto Parts & Equipment		0.00%		0.68%		0.68%
Soft Drinks		0.68%		0.00%		0.68%
Electrical Components & Equipment		0.00%		0.67%		0.67%
Home Improvement Retail		0.58%		0.00%		0.58%
Systems Software		0.53%		0.00%		0.53%
Application Software		0.25%		0.24%		0.49%
Airlines		0.35%		0.13%		0.48%
Building Products		0.00%		0.47%		0.47%
Consumer Finance		0.46%		0.00%		0.46%
Research & Consulting Services		0.43%		0.00%		0.43%
Specialty Chemicals		0.00%		0.43%		0.43%
Oil & Gas Exploration & Production		0.41%		0.00%		0.41%
Brewers		0.00%		0.39%		0.39%
Investment Banking & Brokerage		0.34%		0.00%		0.34%
Electric Utilities		0.23%		0.11%		0.34%
General Merchandise Stores		0.31%		0.00%		0.31%
Healthcare Services		0.00%		0.30%		0.30%
Railroads		0.06%		0.24%		0.30%
Fertilizers & Agricultural Chemicals		0.30%		0.00%		0.30%
Semiconductors		0.00%		0.28%		0.28%
Agricultural Products		0.28%		0.00%		0.28%

Industry	Domestic		Foreign		Total
Multi-Utilities		0.26%		0.00%		0.26%
Trading Companies & Distributors		0.25%		0.00%		0.25%
Advertising		0.00%		0.24%		0.24%
Healthcare Distributors		0.23%		0.00%		0.23%
Construction Materials		0.00%		0.23%		0.23%
Household Products		0.09%		0.13%		0.22%
Personal Products		0.00%		0.22%		0.22%
Electronic Components		0.00%		0.21%		0.21%
Industrial Gases		0.00%		0.21%		0.21%
Healthcare Supplies		0.19%		0.00%		0.19%
Integrated Telecommunication Services		0.19%		0.00%		0.19%
Apparel, Accessories & Luxury Goods		0.00%		0.18%		0.18%
Apparel Retail		0.00%		0.15%		0.15%
Security & Alarm Services		0.00%		0.14%		0.14%
IT Consulting & Other Services		0.12%		0.00%		0.12%
Air Freight & Logistics		0.11%		0.00%		0.11%
Leisure Products		0.00%		0.11%		0.11%
Casinos & Gaming		0.11%		0.00%		0.11%
Diversified Metals & Mining		0.00%		0.11%		0.11%
Construction & Engineering		0.00%		0.10%		0.10%
Broadcasting		0.09%		0.00%		0.09%
Human Resource & Employment Services		0.00%		0.09%		0.09%
Drug Retail		0.07%		0.00%		0.07%
Regional Banks		0.07%		0.00%		0.07%
Automotive Retail		0.07%		0.00%		0.07%
Paper Packaging		0.06%		0.00%		0.06%
Independent Power Producers & Energy Traders		0.06%		0.00%		0.06%
Diversified Chemicals		0.05%		0.00%		0.05%
						55.79%

Sector
Corporate Notes	14.27%
Agency Mortgage Backed	7.72%
U.S. Treasuries	4.96%
Non-Agency Collateralized Mortgage Obligations	3.20%
Sovereign Bonds	0.38%
Municipal Bonds and Notes	0.18%
Agency Collateralized Mortgage Obligations	0.07%
FNMA (TBA)	0.00%	**
	30.78%
Short-Term Investments
Short-Term Investments	13.43%
	13.43%
	100.00%

See Notes to Schedules of Investments and Notes to Financial Statements.

34

(Unaudited)

Michael J.Caufield

Senior

Vice President

The Elfun Tax-Exempt Income Fund is managed by Michael J. Caufield. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun Tax-Exempt Income Fund perform compared to its benchmark and Morningstar peer group for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun Tax-Exempt Income Fund returned 3.21%. The Barclay’s Capital U.S. Municipal Bond Index (the Index), the Fund’s benchmark, returned 3.30% and the Fund’s Morningstar peer group of 198 U.S. Long-term Municipal Bond funds returned an average of 3.05% over the same period.

Q. What market conditions affected the Fund’s performance?

A. Financial markets across the globe spent the majority of 2015 in the” hurry up and wait mode” for a return to higher interest rates in the U.S. After several false alarms, the Federal Open Market Committee finally acted in December, raising the target range of the Fed funds rate by 25 basis points, signaling that rate policy would likely be gradual and economic data dependent. Most asset class sectors lacked conviction and experienced modest losses or close to break-even returns over the course of 2015. The tax-exempt bond market was the exception to the case however. The tax-exempt sector was the best returning market, outperforming taxable securities substantially on the year, given modest new issue supply, strong mutual fund flows and a stable macro credit profile. Municipal supply increased by 19% over 2015 yet given low historical rates and favorable relationships with treasuries, many issuers chose to refund their debt while shortening their debt exposure, leading to a demand/supply imbalance. The municipal yield curve, given such compelling technical fundamentals, flattened late in the year with bonds held in the intermediate sector representing the Fund’s largest exposure, being a key driver of returns.

Q. What were the primary drivers of Fund performance?

A. Curve placement and a longer duration strategy were key elements in our approach to maximize tax-exempt income in the Fund. Given the relative steepness of the curve inside of eight years, which did not offer sufficient yield for our objectives, we concentrated exposure within the intermediate sector of the curve and managed exposure to both long dated securities and lower rated issuers, both of which were underweighted to the Index. The fund’s long-term preference for structure and quality supported competitive with minimal risk while differentiating the Fund from its peers.

Q. Were there any significant changes to the Fund during the period?

A. Over the course of the year, the Fund duration was managed within a tight range varying from neutral in early 2015 to long 8% by year-end. Fund positioning was strongly biased to a flattening yield curve scenario which began late in 2015 as tax-exempt bonds rallied into year-end. The Fund was positioned throughout the year with income and capital preservation objectives paramount. Our adherence to a conservative investment process continued to provide low volatility and contribute to consistent long-term returns.

35

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		1,033.00		0.77
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,024.45		0.77

* Expenses are equal to the Fund’s annualized net expense ratio of 0.15%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

36

(Unaudited)

Investment Profile

A mutual fund designed for investors who seek as high a level of current interest income exempt from federal income taxation as is available from a concentration of investments in municipal bonds consistent with prudent investment management and the preservation of capital. The Fund seeks to achieve its investment objective by investing primarily in investment-grade municipal obligations.

Quality Ratings

(as a % of Fair Value of Investments of $1,598,346 (in thousands) on December 31, 2015) ^(a)(b)

Moody’s / S&P /Rating *	Percentage of Fair Value
Aaa / AAA		12.6%
Aa / AA		51.7%
A / A		31.5%
Baa / BBB		1.4%
Ba / BB and lower		1.0%
NR / Other		1.8%

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $1,598,346 (in thousands) on December 31, 2015 ^(a)(b)

Morningstar Performance Comparison

Based on average annual returns for periods ended December 31, 2015

	One Year			Five Year			Ten Year
Number of funds in peer group		198			190			180
Peer group average annual total return		3.05	%		5.53	%		4.14	%
Morningstar Category in peer group: Muni National Long

Change in Value of a $10,000 Investment

Average Annual Total Return

For the periods ended December 31, 2015

(Inception date: 1/1/80)
	One Year		Five Year		Ten Year		Ending Value of a $10,000 Investment
Elfun Tax-Exempt Income Fund		3.21%		5.26%		4.64%		$15,739
Barclays U.S. Municipal Bond Index		3.30%		5.35%		4.72%		$15,853

(a) Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class.

(b) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

37

Elfun Tax-Exempt Income Fund December 31, 2015

Elfun Tax-Exempt Income Fund

		Principal Amount		Fair Value
Municipal Bonds and Notes — 98.1%†
Alaska — 0.2%
Alaska Housing Finance Corp.
5.00%	12/01/27	$	2,500,000	$	2,942,000
Arizona — 1.7%
City of Phoenix
5.00%	07/01/19		5,000,000		5,321,900
Phoenix Civic Improvement Corp. (FGIC Insured)
5.50%	07/01/23 - 07/01/24		7,260,000		9,222,560	(m)
Salt River Project Agricultural Improvement & Power District
5.00%	12/01/21		10,000,000		11,668,900
University Medical Center Corp.
6.50%	07/01/39		1,000,000		1,179,670	(l)
					27,393,030
California — 10.9%
Bay Area Toll Authority
5.00%	04/01/31		10,000,000		10,113,500	(l)
California Educational Facilities Authority
5.00%	10/01/32		5,255,000		6,907,014
5.25%	10/01/39		6,000,000		6,660,600
6.13%	10/01/36		1,500,000		1,792,365
California Health Facilities Financing Authority
5.50%	08/15/26		5,000,000		5,933,850
6.00%	07/01/39		5,000,000		5,730,200
6.50%	10/01/33		3,500,000		4,027,450	(l)
California State Department of Water Resources
5.00%	05/01/21 - 12/01/21		6,585,000		7,866,883
California State Public Works Board
5.00%	10/01/28		1,500,000		1,755,090
5.13%	10/01/31		2,000,000		2,341,780
5.25%	09/01/29		10,160,000		12,188,749
6.00%	04/01/26		8,475,000		9,706,926
Coast Community College District
5.00%	08/01/33		1,260,000		1,520,644
Coast Community College District (AGMC Insured)
5.00%	08/01/33		8,750,000		9,656,762	(l,m)
Kaweah Delta Health Care District
4.00%	06/01/45		2,500,000		2,499,925
Los Angeles Harbor Department
5.00%	08/01/26		8,000,000		9,002,240
Marin Healthcare District
4.00%	08/01/45		2,000,000		2,077,380

		Principal Amount		Fair Value
Metropolitan Water District of Southern California
5.00%	07/01/35 - 07/01/40	$	9,000,000	$	9,831,290
San Diego Community College District
5.00%	08/01/41		10,000,000		11,253,300
State of California
5.00%	02/01/31 - 12/01/43		18,220,000		21,084,947
5.25%	04/01/35 - 11/01/40		12,750,000		14,934,972
State of California Department of Water Resources
5.00%	12/01/29		8,150,000		9,912,193
University of California
5.00%	05/15/38		4,000,000		4,636,160
University of California (AMBAC Insured)
5.00%	05/15/34		2,225,000		2,225,757	(m)
					173,659,977
Colorado — 1.6%
Metro Wastewater Reclamation District
5.00%	04/01/27		1,730,000		2,037,248
Regional Transportation District
4.25%	11/01/36		3,405,000		3,967,915
5.00%	11/01/27 - 11/01/29		13,760,000		17,062,252
5.38%	06/01/31		2,500,000		2,814,500
					25,881,915
Connecticut — 4.6%
Connecticut State Health & Educational Facility Authority
5.00%	07/01/40		6,775,000		7,414,221
Hartford County Metropolitan District
5.00%	11/01/42		9,000,000		10,423,170
South Central Connecticut Regional Water Authority
5.00%	08/01/27 - 08/01/28		3,295,000		3,871,366
State of Connecticut
5.00%	01/01/22 - 01/01/24		8,600,000		10,029,560
State of Connecticut Special Tax Revenue
5.00%	11/01/26 - 09/01/34		35,250,000		40,983,148
Town of Fairfield
5.00%	08/01/21		1,000,000		1,186,920
					73,908,385
Delaware — 1.5%
County of New Castle
5.00%	07/15/33 - 07/15/39		10,000,000		11,018,600	(l)
Delaware State Health Facilities Authority
5.00%	10/01/40		6,300,000		7,008,057

See Notes to Schedules of Investments and Notes to Financial Statements.

38

Elfun Tax-Exempt Income Fund December 31, 2015

		Principal Amount		Fair Value
Delaware Transportation Authority Rev.,
5.00%	06/01/45	$	4,000,000	$	4,594,560
State of Delaware
5.00%	07/01/28		1,000,000		1,154,590
					23,775,807
District of Columbia — 1.6%
District of Columbia
5.00%	06/01/38		3,000,000		3,481,290
5.50%	04/01/36		15,000,000		16,525,650
District of Columbia Water & Sewer Authority
5.25%	10/01/29		5,000,000		5,577,800	(l)
					25,584,740
Florida — 1.0%
Brevard County Health Facilities Authority
7.00%	04/01/39		1,000,000		1,184,580	(l)
City of Tampa Water & Wastewater System Revenue
5.00%	10/01/27		8,560,000		10,066,646
County of Miami-Dade Public Facilities Revenue
4.00%	06/01/34 - 06/01/36		4,970,000		5,097,589
					16,348,815
Georgia — 7.4%
Athens-Clarke County Unified Government Development Authority
5.00%	06/15/31		6,050,000		6,564,855
Athens-Clarke County Unified Government Water & Sewerage Revenue
5.50%	01/01/38		7,000,000		7,908,950	(l)
Atlanta Development Authority
5.25%	07/01/40		8,925,000		10,427,613
City of Atlanta Department of Aviation
5.00%	01/01/25 - 01/01/34		20,500,000		23,713,195
City of Atlanta Water & Wastewater Revenue
5.25%	11/01/30		5,690,000		6,786,008
6.25%	11/01/39		10,000,000		11,891,900	(l)
City of Atlanta Water & Wastewater Revenue (AGMC Insured)
5.75%	11/01/27 - 11/01/30		9,500,000		12,704,475	(m)
DeKalb Newton & Gwinnett Counties Joint Development Authority
6.00%	07/01/34		8,500,000		9,673,255

		Principal Amount		Fair Value
Fayette County School District (AGMC Insured)
4.80%	03/01/22	$	2,520,000	$	2,537,615	(l,m)
4.85%	03/01/23		2,290,000		2,306,190	(l,m)
Municipal Electric Authority of Georgia
5.00%	01/01/35		2,500,000		2,880,650
5.25%	01/01/19		2,490,000		2,781,803
State of Georgia
4.00%	07/01/32		3,350,000		3,670,159
4.50%	01/01/29		3,000,000		3,277,500
5.00%	08/01/22		4,460,000		4,760,247	(l)
5.00%	08/01/22 - 01/01/26		4,790,000		5,208,246
					117,092,661
Hawaii — 1.9%
City & County of Honolulu
5.00%	04/01/33		10,000,000		11,229,600	(l)
State of Hawaii Airports System Revenue
5.25%	07/01/24		15,800,000		18,496,112
					29,725,712
Idaho — 1.4%
Idaho Health Facilities Authority
6.75%	11/01/37		4,000,000		4,540,640
Idaho Housing & Finance Assoc. (NPFG Insured)
5.00%	07/15/22 - 07/15/24		17,625,000		18,050,644	(l,m)
					22,591,284
Illinois — 3.2%
City of Chicago O’Hare International Airport Revenue
5.00%	01/01/46		1,000,000		1,109,910
5.63%	01/01/35		5,000,000		5,773,850
5.75%	01/01/39		11,500,000		13,364,840
Illinois State Toll Highway Authority
5.00%	12/01/32		10,050,000		11,826,840	(c)
5.00%	01/01/40		5,000,000		5,727,300
Metropolitan Pier & Exposition Authority (NPFG Insured)
5.40%	06/15/19		1,065,000		1,146,728	(l,m)
5.40%	06/15/19		2,935,000		3,114,123	(m)
5.65%	06/15/22		375,000		435,225	(j,k,m)
5.65%	06/15/22		3,930,000		4,306,887	(j,m)
Southwestern Illinois Development Authority (NPFG Insured)
5.00%	10/01/21		4,000,000		4,666,040	(m)
					51,471,743

See Notes to Schedules of Investments and Notes to Financial Statements.

39

Elfun Tax-Exempt Income Fund December 31, 2015

		Principal Amount		Fair Value
Indiana — 1.2%
Indiana Municipal Power Agency
5.00%	01/01/42	$	7,000,000	$	8,039,220	(c)
5.50%	01/01/27		2,500,000		2,780,875
Indianapolis Local Public Improvement Bond Bank
5.75%	01/01/38	��	7,000,000		7,848,120
					18,668,215
Iowa — 0.8%
Iowa Finance Authority
5.00%	12/01/19		7,500,000		7,906,800
5.25%	12/01/25		5,000,000		5,433,850
					13,340,650
Kentucky — 1.8%
Kentucky State Property & Building Commission (AGC Insured)
5.25%	02/01/27		10,665,000		11,826,312	(m)
Louisville & Jefferson County Metropolitan Sewer District
5.00%	05/15/30		14,340,000		16,603,569
					28,429,881
Louisiana — 2.0%
City of New Orleans LA Sewerage Service Revenue
5.00%	06/01/44		7,100,000		7,891,153
5.00%	06/01/45		1,800,000		2,008,566
East Baton Rouge Sewerage Commission
5.00%	02/01/39		4,000,000		4,596,760
Louisiana Local Government Environmental Facilities & Community Development Authority
5.00%	02/01/44		5,165,000		5,739,968
State of Louisiana
5.00%	09/01/19		10,050,000		11,375,997
					31,612,444
Maine — 0.3%
Maine Health & Higher Educational Facilities Authority
5.25%	07/01/21		315,000		369,545	(l)
5.25%	07/01/21		1,475,000		1,712,018
Maine Turnpike Authority
5.00%	07/01/42		1,000,000		1,139,200
6.00%	07/01/34		1,250,000		1,460,325	(l)
					4,681,088

		Principal Amount		Fair Value
Maryland — 3.2%
City of Baltimore
5.00%	07/01/38	$	9,375,000	$	10,712,062
County of Baltimore
5.00%	02/01/23		7,525,000		9,023,228
County of Prince George’s
5.00%	09/15/24 - 09/15/25		8,790,000		10,439,892
Maryland Economic Development Corp.
5.75%	06/01/35		3,000,000		3,282,060
Maryland Health & Higher Educational Facilities Authority
5.00%	07/01/34 - 08/15/41		3,300,000		3,608,522
State of Maryland
5.00%	11/01/18		4,000,000		4,443,680
Washington Suburban Sanitary Commission
4.50%	06/01/26		8,470,000		9,190,966	(l)
					50,700,410
Massachusetts — 5.9%
Commonwealth of Massachusetts
5.00%	06/15/27		14,000,000		17,125,500
Massachusetts Bay Transportation Authority
5.00%	07/01/45		5,000,000		5,824,750
Massachusetts Department of Transportation
5.00%	01/01/37		11,130,000		12,357,973
Massachusetts Development Finance Agency
5.00%	10/01/46		4,250,000		4,893,153
Massachusetts Health & Educational Facilities Authority
5.00%	07/01/34		10,000,000		11,180,800
5.50%	11/15/36		4,000,000		4,505,920
5.75%	07/01/39		5,000,000		5,549,850	(l)
Massachusetts School Building Authority
5.00%	08/15/28		5,000,000		5,958,250
Massachusetts Water Resources Authority
5.00%	08/01/32 - 08/01/41		7,140,000		8,325,323
6.50%	07/15/19		8,160,000		8,902,723	(k)
University of Massachusetts Building Authority
5.00%	11/01/31		7,450,000		9,012,041
					93,636,283

See Notes to Schedules of Investments and Notes to Financial Statements.

40

Elfun Tax-Exempt Income Fund December 31, 2015

		Principal Amount		Fair Value
Michigan — 1.1%
Lansing Board of Water & Light
5.00%	07/01/37	$	3,500,000	$	3,923,080
State of Michigan (AGMC Insured)
5.25%	09/15/27		5,000,000		5,329,300	(m)
State of Michigan Trunk Line Revenue
5.50%	11/01/18		6,000,000		6,730,800
University of Michigan Revenue
5.00%	04/01/46		1,000,000		1,182,850
					17,166,030
Missouri — 1.5%
Bi-State Development Agency of the Missouri-Illinois Metropolitan District
5.00%	10/01/44		8,010,000		8,918,174
Metropolitan St. Louis Sewer District
5.00%	05/01/45		1,500,000		1,758,240
Missouri Highway & Transportation Commission
5.00%	05/01/21		4,610,000		5,330,451
Missouri Joint Municipal Electric Utility Commission
5.00%	01/01/34		1,950,000		2,217,716
5.75%	01/01/29		4,500,000		4,500,000	(l)
Missouri State Environmental Improvement & Energy Resources Authority
5.00%	01/01/24		525,000		526,418
					23,250,999
Nebraska — 0.7%
Omaha Public Power District
4.00%	02/01/34 - 02/01/36		10,250,000		10,903,547
Nevada — 0.1%
City of Las Vegas (AGMC Insured)
5.55%	06/01/16		985,000		1,004,700	(m)
New Jersey — 5.7%
Cape May County Municipal Utilities Authority (AGMC Insured)
5.75%	01/01/16		3,500,000		3,500,000	(m)
New Jersey Economic Development Authority
5.50%	12/15/29		5,000,000		5,460,550
New Jersey Educational Facilities Authority
6.00%	12/01/17		10,000,000		10,728,700	(k)

		Principal Amount		Fair Value
New Jersey Educational Facilities Authority (AGMC Insured)
4.00%	07/01/33	$	2,500,000	$	2,567,600	(m)
New Jersey Healthcare Facilities Financing Authority (AGMC Insured)
4.13%	07/01/38		1,000,000		1,018,490	(m)
New Jersey Higher Education Student Assistance Authority
5.63%	06/01/30		7,500,000		8,195,625
New Jersey State Economic Develpoment Authority
5.25%	06/15/40		4,000,000		4,163,000
New Jersey State Turnpike Authority
5.00%	01/01/33 - 01/01/45		21,000,000		24,003,650
5.25%	01/01/40		10,000,000		11,103,500
New Jersey State Turnpike Authority (AMBAC Insured)
6.50%	01/01/16		6,805,000		6,805,000	(k,m)
6.50%	01/01/16		5,135,000		5,135,000	(m)
New Jersey Transportation Trust Fund Authority
5.00%	06/15/45		2,250,000		2,348,010
5.25%	06/15/36		5,000,000		5,297,800
					90,326,925
New Mexico — 1.4%
New Mexico Finance Authority
5.00%	06/15/18 - 06/15/23		9,200,000		10,334,920
5.00%	12/15/26		12,000,000		12,500,880	(l)
					22,835,800
New York — 10.2%
Long Island Power Authority
6.00%	05/01/33		7,500,000		8,683,875	(l)
Metropolitan Transportation Authority
5.00%	11/15/29 - 11/15/45		14,920,000		17,269,786
Nassau County Sewer & Storm Water Finance Authority
5.00%	10/01/30		1,690,000		2,025,533
New York City Transitional Finance Authority Building Aid Revenue
5.50%	07/15/31		10,000,000		11,090,100
New York City Transitional Finance Authority Future Tax Secured Revenue
5.00%	11/01/21 - 02/01/41		30,220,000		35,013,029
New York City Water & Sewer System
5.00%	06/15/36		9,000,000		10,471,950
New York Convention Center Development Corp.
5.00%	11/15/40		5,000,000		5,778,500

See Notes to Schedules of Investments and Notes to Financial Statements.

41

Elfun Tax-Exempt Income Fund December 31, 2015

		Principal Amount		Fair Value
New York Liberty Development Corp.
5.00%	11/15/44	$	5,000,000	$	5,584,650
5.13%	01/15/44		10,000,000		11,063,800
New York State Dormitory Authority
5.00%	03/15/36 - 10/01/45		15,000,000		18,571,700
5.50%	05/01/37		2,500,000		2,858,425	(l)
6.00%	07/01/40		2,000,000		2,321,480
New York State Thruway Authority
5.00%	05/01/19		6,000,000		6,727,200
New York State Urban Development Corp.
5.50%	01/01/19		9,000,000		10,154,430
Triborough Bridge & Tunnel Authority
5.00%	11/15/26		10,000,000		11,112,300
Westchester County Healthcare Corp.
6.13%	11/01/37		2,500,000		2,854,050
					161,580,808
North Carolina — 1.3%
City of Charlotte
5.00%	06/01/23		4,320,000		4,985,755
City of Charlotte Water & Sewer System Revenue
5.00%	07/01/38		5,000,000		5,411,450
North Carolina Eastern Municipal Power Agency
5.00%	01/01/26		5,000,000		5,583,800	(l)
State of North Carolina
4.75%	05/01/30		4,130,000		4,628,574
					20,609,579
Ohio — 4.1%
American Municipal Power Inc.
5.00%	02/15/38		295,000		312,296
5.00%	02/15/38		4,705,000		5,111,088	(l)
City of Cincinnati Water System Revenue
5.00%	12/01/36		2,500,000		2,873,500
City of Columbus
5.00%	07/01/26 - 08/15/30		18,055,000		21,907,495
City of Columbus Sewerage Revenue
4.50%	06/01/32		700,000		748,391	(l)
4.75%	06/01/31		5,000,000		5,369,200	(l)
Cuyahoga Community College District
5.00%	08/01/26		1,800,000		2,050,074
Northeast Ohio Regional Sewer District
5.00%	11/15/38		12,000,000		13,839,000

		Principal Amount		Fair Value
Ohio Higher Educational Facility Commission
6.25%	05/01/38	$	5,000,000	$	5,733,900	(l)
Ohio State Turnpike Commission
5.25%	02/15/39		6,000,000		6,837,660
					64,782,604
Oklahoma — 0.8%
Oklahoma Capital Improvement Authority
5.00%	07/01/28 - 07/01/29		5,000,000		5,933,760
Oklahoma Municipal Power Authority (FGIC Insured)
4.50%	01/01/47		2,000,000		2,014,000	(m)
Oklahoma Turnpike Authority
5.00%	01/01/28		3,500,000		4,057,165
					12,004,925
Pennsylvania — 4.7%
City of Philadelphia Water & Wastewater Revenue
5.00%	01/01/36		8,000,000		8,856,880
Delaware County Authority
4.00%	08/01/40		1,200,000		1,262,376
Delaware River Port Authority
5.00%	01/01/29		5,000,000		5,840,700
Pennsylvania Economic Development Financing Authority
4.00%	03/15/40		4,000,000		4,093,520
Pennsylvania Higher Educational Facilities Authority
5.25%	08/15/25		1,750,000		2,059,417
Pennsylvania Turnpike Commission
5.00%	06/01/29 - 12/01/45		21,500,000		23,889,770
5.25%	06/01/39		9,500,000		10,346,925
6.00%	12/01/34		12,000,000		14,169,240	(j)
Philadelphia Authority for Industrial Development
5.00%	07/01/42		4,000,000		4,513,600
					75,032,428
Puerto Rico — 0.1%
Puerto Rico Sales Tax Financing Corp.
5.50%	08/01/28		5,000,000		2,125,000
Rhode Island — 0.2%
Rhode Island Health & Educational Building Corp.
6.25%	09/15/34		1,300,000		1,463,735
6.50%	09/15/28		1,000,000		1,139,660
					2,603,395

See Notes to Schedules of Investments and Notes to Financial Statements.

42

Elfun Tax-Exempt Income Fund December 31, 2015

		Principal Amount		Fair Value
South Carolina — 1.6%
Piedmont Municipal Power Agency
5.00%	01/01/25	$	2,315,000	$	2,636,299
Piedmont Municipal Power Agency (AGC Insured)
5.75%	01/01/34		5,500,000		6,472,730	(m)
South Carolina State Public Service Authority
5.50%	01/01/38		1,190,000		1,346,402	(l)
5.50%	01/01/38		13,780,000		15,281,331
					25,736,762
Tennessee — 1.8%
County of Shelby
5.00%	03/01/21		3,500,000		4,032,560
Metropolitan Government of Nashville & Davidson County
5.00%	05/15/25		10,000,000		10,590,100	(l)
State of Tennessee
5.00%	05/01/19		1,000,000		1,093,650	(l)
Tennessee State School Bond Authority
5.00%	11/01/37 - 11/01/40		11,150,000		13,133,866
					28,850,176
Texas — 8.3%
City of Austin Water & Wastewater System Revenue
5.00%	11/15/42		13,595,000		15,367,652
City of Austin Water & Wastewater System Revenue (AMBAC Insured)
5.50%	11/15/16		5,450,000		5,684,023	(m)
City of Houston Utility System Revenue
5.00%	05/15/28 - 11/15/33		10,470,000		12,162,193
5.25%	11/15/30 - 11/15/31		12,000,000		13,941,720
Dallas/Fort Worth International Airport
5.25%	11/01/29		5,000,000		5,978,800
Harris County-Houston Sports Authority
5.00%	11/15/30		2,000,000		2,307,380
North Texas Tollway Authority
5.00%	09/01/31 - 01/01/38		5,500,000		6,270,650
5.75%	01/01/38 - 01/01/40		16,470,000		18,013,150	(l)
5.75%	01/01/40		5,005,000		5,378,823
6.00%	01/01/38		5,000,000		5,882,250
Tarrant Regional Water District
5.00%	03/01/29		14,000,000		16,898,000
Texas Transportation Commission State Highway Fund
5.00%	04/01/23		9,750,000		11,924,348

		Principal Amount		Fair Value
The University of Texas System
5.00%	08/15/26	$	10,000,000	$	12,592,900
					132,401,889
Utah – 1.8%
County of Utah Transportation Sales Tax Revenue (AGMC Insured)
4.00%	12/01/37 - 12/01/38		11,830,000		12,392,456		(m)
Utah State Board of Regents
5.00%	11/01/30		4,000,000		4,566,400
Utah Transit Authority
5.00%	06/15/42		10,000,000		11,225,700
					28,184,556
Virginia – 0.5%
Virginia Resources Authority
5.25%	11/01/38		2,390,000		2,663,870		(l)
5.25%	11/01/38		2,610,000		2,862,439
Wise County Industrial Development Authority
1.88%	11/01/40		2,000,000		2,010,540
					7,536,849
Total Municipal Bonds and Notes (Cost $1,446,747,853)					1,558,382,012
Short-Term Investments – 2.5%
State Street Institutional U.S. Government Money Market Fund — Premier Class
0.09%				$	39,963,873		(d,p)
(Cost $39,963,873)
Total Investments (Cost $1,486,711,726)					1,598,345,885
Liabilities in Excess of Other Assets, net — (0.6)%					(10,073,599	)
NET ASSETS — 100.0%				$	1,588,272,286

See Notes to Schedules of Investments and Notes to Financial Statements.

43

(Unaudited)

William M. Healey

Senior Vice President and Chief Investment Officer — Core Fixed Income Investments

Mark H. Johnson

Senior Vice President and Chief Investment Officer — Insurance and Long Duration

The Elfun Income Fund is co-managed by William M. Healey and Mark H. Johnson. Messrs. Healey and Johnson are each responsible for a portion of the Fund, the size of which is determined by consensus and adjusted on a periodic basis, if necessary. Although each portfolio manager manages his portion of the fund independent of the other, they are highly collaborative and communicative. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun Income Fund perform compared to its benchmark for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun Income Fund returned 0.22%. The Barclays Capital U.S. Aggregate Bond Index, the Fund’s benchmark, returned 0.55% and the Fund’s Morningstar peer group of 1,086 U.S. Intermediate-Term Funds returned an average of -0.27% over the same period.

Q. What market factors affected the Fund’s performance?

A. The two major factors which affected the Fund’s performance were the movement in interest rates and credit spreads. The 10-year US Treasury note finished the year at 2.3%, up just 10 bps but traded down to 1.65% in January, then moved to 2.5% by the end of June before drifting down by year end as inflation remained well below the Fed’s target of 2%. The 2-year treasury yield, basically unchanged for the first nine months of the year, jumped from 0.65% to 1.05% in the fourth quarter as expectations for a Fed Funds rate hike became reality in December. Economic growth in the US slowed from 3% in Q1 to 2% (Bloomberg estimate) in Q4 as the price of oil plummeted over 30% and the US dollar rose 9% versus a basket of major world currencies. As economic growth decelerated, credit spreads widened putting pressure on corporate bond prices. The option-adjusted spread (OAS) of the Barclays Investment Grade Bond Index widened 35

bps beginning in May and the OAS of Barclays US High Yield Index hurt primarily by the energy sector widened 180 bps.

Q. What were the primary drivers of Fund performance?

A. The primary driver of the Fund’s underperformance versus its benchmark was the allocation to high yield securities which are not in the index. The significant widening of credit spreads resulted in a negative return for the high yield market of -4.5% and while the Fund was not heavily exposed to energy companies, the allocation was the largest performance detractor. The overweight in high grade corporate bonds also negatively impacted the Fund’s total return. Security selection among the high grade credit sector, primarily underweight commodity-related sectors and overweight financials, and residential mortgage-backed securities contributed positively to the Fund’s performance. Tactically trading the Fund’s duration relative to the index, as treasury yields bounced within a range, also benefited the Fund.

Q. Were there any significant changes to the Fund during the period?

A. The most significant change to the Fund was a general increase in the allocation to spread sectors during the year. The allocation to high grade credit started the year slightly overweight and ended the year 10% overweight by market value, which added roughly 0.3 years to the Fund’s spread duration. The allocation to commercial mortgage-backed securities was also increased from 3% to 10% overweight by market value and from 0.1 to 0.5 spread duration contribution. The Fund’s duration was tactically traded within neutral to 0.5 years long relative to the benchmark during the period.

44

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period  ($)		Account value at the end of the period  ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		1,002.70		1.26
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,023.95		1.28

* Expenses are equal to the Fund’s annualized net expense ratio of 0.25%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

45

(Unaudited)

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. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in debt securities. The Fund invests primarily in a variety of investment-grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government securities and money market instruments.

Quality Ratings

(as a % of Fair Value of Investments of $302,338 (in thousands) on December 31, 2015) ^(a)(b)

Moody’s / S&P /Rating *	Percentage of Fair Value
Aaa / AAA		8.8%
Aa / AA		43.4%
A / A		9.9%
Baa / BBB		21.5%
Ba / BB and lower		10.7%
NR / Other		5.7%

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $302,338 (in thousands) on December 31, 2015 ^(a)(b)

Morningstar Performance Comparison

Based on average annual returns for periods ended December 31, 2015

	One Year			Five Year			Ten Year
Number of funds in peer group		1,086			990			860
Peer group average annual total return		-0.27	%		3.17	%		3.98	%
Morningstar Category in peer group: U.S. Intermediate-Term Bond

Change in Value of a $10,000 Investment

Average Annual Total Return

For the periods ended December 31, 2015

(Inception date: 12/31/84)
	One Year		Five Year		Ten Year		Ending value of a $10,000 investment
Elfun Income Fund		0.22%		3.71%		4.34%		$15,288
Barclays U.S. Aggregate Bond Index		0.55%		3.25%		4.51%		$15,552

(a) Fair Value basis is inclusive of short-term investment in State Street Institutional U.S. Government Money Market Fund Premier Class.

(b) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

46

Elfun Income Fund December 31, 2015

Elfun Income Fund

		Principal Amount		Fair Value
Bonds and Notes – 99.1%†
U.S. Treasuries — 15.9%
U.S. Treasury Bonds
2.50%	02/15/45	$	203,000	$	181,765
3.13%	11/15/41		6,057,000		6,244,725
U.S. Treasury Notes
0.63%	05/31/17		3,318,100		3,303,520	(h)
0.75%	12/31/17		2,500,000		2,483,313	(h)
0.88%	10/15/18		3,434,000		3,396,504	(h)
1.38%	10/31/20		13,847,700		13,606,459	(h)
1.88%	10/31/22		12,956,300		12,792,545	(h)
2.00%	08/15/25		4,189,900		4,085,085	(h)
					46,093,916
Agency Mortgage Backed — 24.4%
Federal Home Loan Mortgage Corp.
4.50%	06/01/33 - 02/01/35		22,438		24,258	(h)
5.00%	07/01/35 - 06/01/41		1,299,629		1,449,139	(h)
5.50%	05/01/20 - 01/01/38		328,076		370,374
5.50%	04/01/39		67,597		74,653	(h)
6.00%	04/01/17 - 06/01/37		226,010		255,576
6.00%	04/01/29 - 11/01/37		562,991		639,346	(h)
6.50%	07/01/29		2,107		2,399	(h)
7.00%	10/01/16		326		328
7.00%	01/01/27 - 08/01/36		133,169		149,716	(h)
7.50%	11/01/29 - 09/01/33		8,351		8,901	(h)
8.00%	11/01/30		4,551		4,886	(h)
Federal National Mortgage Assoc.
2.22%	04/01/37		2,777		2,829	(i)
3.00%	02/01/43 - 06/01/43		12,921,839		12,963,097	(h)
3.50%	11/01/42 - 08/01/45		7,349,458		7,587,184	(h)
4.00%	05/01/19 - 06/01/19		54,917		57,247
4.00%	01/01/41 - 03/01/44		6,504,957		6,912,560	(h)
4.50%	05/01/18 - 08/01/20		96,232		100,002
4.50%	07/01/33 - 01/01/41		5,758,638		6,230,864	(h)
5.00%	07/01/20		33,234		35,342
5.00%	03/01/34 - 06/01/41		2,112,884		2,370,442	(h)
5.50%	06/01/20 - 11/01/35		288,733		308,919
5.50%	12/01/32 - 01/01/39		1,372,754		1,541,520	(h)
6.00%	05/01/19 - 09/01/21		36,579		38,414
6.00%	01/01/29 - 05/01/41		3,025,973		3,445,916	(h)
6.50%	07/01/17 - 05/01/21		22,630		23,540
6.50%	05/01/24 - 08/01/36		160,853		183,842	(h)
7.00%	10/01/16 - 08/01/17		6,298		6,447
7.00%	10/01/32 - 02/01/34		14,629		15,574	(h)
7.50%	12/01/26 - 12/01/33		77,577		88,331	(h)
8.00%	06/01/24 - 01/01/33		25,817		28,912	(h)
8.50%	04/01/30		4,120		5,205	(h)
9.00%	12/01/17 - 12/01/22		7,689		8,326	(h)
2.50%	TBA		3,774,641		3,796,741	(c)

		Principal Amount		Fair Value
3.50%	TBA	$	2,503,500	$	2,582,100	(c)
4.00%	TBA		1,228,691		1,299,845	(c)
Government National Mortgage Assoc.
3.00%	04/20/43		1,457,211		1,482,174
3.00%	06/20/43		759,734		772,748	(h)
3.50%	05/20/43		2,811,831		2,938,294	(h)
4.00%	01/20/41 - 04/20/43		3,324,928		3,559,462	(h)
4.50%	08/15/33 - 09/15/34		198,959		216,066
4.50%	05/20/40 - 03/20/41		1,497,577		1,631,058	(h)
5.00%	08/15/33		83,580		92,947
6.00%	04/15/27 - 09/15/36		346,683		396,922
6.50%	04/15/19 - 09/15/36		138,302		157,896
7.00%	11/15/27 - 10/15/36		87,269		95,961
7.50%	03/15/23 - 11/15/31		34,242		35,738
8.00%	09/15/27 - 06/15/30		32,043		33,488
8.50%	10/15/17		3,851		3,965
9.00%	11/15/16 - 12/15/21		9,609		10,034
3.00%	TBA		2,031,275		2,058,078	(c)
4.00%	TBA		2,628,537		2,787,591	(c)
5.00%	TBA		1,167,000		1,278,327	(c)
5.50%	TBA		435,000		483,243	(c)
					70,646,767
Agency Collateralized Mortgage Obligations — 0.3%
Collateralized Mortgage Obligation Trust
0.01%	11/01/18		1,492		1,483	(d,f)
Federal Home Loan Mortgage Corp.
0.08%	09/25/43		1,419,387		4,041	(g,i)
Federal Home Loan Mortgage Corp. REMIC
3.50%	11/15/24 - 11/15/30		1,041,769		84,295	(g)
5.00%	02/15/38		11,268		199	(g)
5.50%	06/15/33		75,161		15,722	(g)
6.27%	08/15/25		393,512		38,768	(g,i)
8.00%	04/15/20		777		804
Federal Home Loan Mortgage Corp. STRIPS
1.47%	08/01/27		1,410		1,282	(d,f)
5.62%	08/15/43		785,669		169,777	(g,i)
8.00%	02/01/23 - 07/01/24		5,182		1,089	(g)
Federal National Mortgage Assoc. REMIC
0.51%	12/25/22		3,222		3,117	(d,f)
1.22%	12/25/42		333,157		11,069	(g,i)
5.00%	02/25/40 - 09/25/40		526,128		57,438	(g)
5.58%	07/25/38		103,865		14,334	(g,i)
8.00%	05/25/22		7		113	(g)
Federal National Mortgage Assoc. STRIPS
1.87%	12/25/34		83,874		77,565	(d,f)
4.50%	08/25/35 - 01/25/36		179,599		32,234	(g)
5.00%	03/25/38 - 05/25/38		98,804		17,897	(g)
5.50%	12/25/33		24,406		4,770	(g)
6.00%	01/25/35		90,304		18,633	(g)

See Notes to Schedules of Investments and Notes to Financial Statements.

47

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
7.50%	11/25/23	$	15,563	$	3,336	(g)
8.00%	08/25/23 - 07/25/24		10,472		2,223	(g)
8.50%	03/25/17 - 07/25/22		4,877		574	(g)
9.00%	05/25/22		2,665		467	(g)
Government National Mortgage Assoc.
4.50%	10/20/37 - 08/16/39		833,848		55,261	(g)
5.00%	10/20/37 - 09/20/38		429,307		25,385	(g)
5.85%	02/20/40		325,528		55,698	(g,i)
6.46%	01/16/40		544,008		100,527	(g,i)
					798,101
Asset Backed — 0.3%
Capital One Multi-Asset Execution Trust 2006-B1
0.61%	01/15/19		500,000		499,691	(i)
Chase Funding Trust 2004-1
3.99%	11/25/33		274,709		280,537	(j)
					780,228
Corporate Notes — 45.2%
21st Century Fox America Inc.
3.70%	10/15/25		104,000		103,812	(b)
4.95%	10/15/45		42,000		41,366	(b)
6.65%	11/15/37		248,000		288,191
ABB Finance USA Inc.
1.63%	05/08/17		392,000		392,279
AbbVie Inc.
1.75%	11/06/17		372,000		371,297
2.00%	11/06/18		423,000		421,223
2.50%	05/14/20		415,000		410,897
3.60%	05/14/25		167,000		164,839
4.70%	05/14/45		85,000		83,125
ACCO Brands Corp.
6.75%	04/30/20		426,000		438,780
ACE INA Holdings Inc.
2.30%	11/03/20		416,000		413,196
3.15%	03/15/25		292,000		288,756
3.35%	05/03/26		291,000		290,161
4.35%	11/03/45		87,000		88,413
Actavis Funding SCS
1.30%	06/15/17		489,000		484,371
3.00%	03/12/20		208,000		207,834
3.45%	03/15/22		292,000		292,466
3.80%	03/15/25		217,000		215,912
4.75%	03/15/45		41,000		39,969
Activision Blizzard Inc.
5.63%	09/15/21		428,000		448,330	(b)
Aetna Inc.
3.50%	11/15/24		260,000		259,730
Agrium Inc.
3.38%	03/15/25		104,000		94,940
4.90%	06/01/43		189,000		169,069
Alibaba Group Holding Ltd.
4.50%	11/28/34		205,000		196,136

		Principal Amount		Fair Value
Altria Group Inc.
2.95%	05/02/23	$	210,000	$	204,386
4.50%	05/02/43		210,000		199,174
America Movil SAB de C.V.
3.13%	07/16/22		205,000		201,426
5.00%	03/30/20		317,000		344,015
American Axle & Manufacturing Inc.
6.25%	03/15/21		279,000		288,765
6.63%	10/15/22		84,000		87,990
American Campus Communities Operating Partnership LP
3.35%	10/01/20		167,000		166,805
4.13%	07/01/24		124,000		123,135
American Electric Power Company Inc.
2.95%	12/15/22		332,000		328,132
American Express Co.
3.63%	12/05/24		215,000		210,414
American Express Credit Corp.
2.60%	09/14/20		417,000		418,174
American International Group Inc.
3.75%	07/10/25		417,000		413,516
4.13%	02/15/24		125,000		128,465
4.50%	07/16/44		83,000		76,762
4.80%	07/10/45		208,000		201,125
American Tower Corp. (REIT)
3.40%	02/15/19		513,000		526,332
Amgen Inc.
2.20%	05/22/19		612,000		611,321
Amkor Technology Inc.
6.63%	06/01/21		429,000		425,783
Anadarko Petroleum Corp.
3.45%	07/15/24		83,000		73,772
6.20%	03/15/40		221,000		203,320
Anheuser-Busch InBev Worldwide Inc.
2.50%	07/15/22		515,000		495,719
Anthem Inc.
3.30%	01/15/23		211,000		205,149
Apache Corp.
5.10%	09/01/40		208,000		177,811
Apple Inc.
2.85%	05/06/21		634,000		649,572
3.45%	02/09/45		210,000		180,782
Aramark Services Inc.
5.75%	03/15/20		457,000		472,709
Ascension Health
4.85%	11/15/53		326,000		351,245
AstraZeneca PLC
2.38%	11/16/20		147,000		146,006
3.38%	11/16/25		209,000		207,507
4.38%	11/16/45		83,000		83,180

See Notes to Schedules of Investments and Notes to Financial Statements.

48

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
AT&T Inc.
2.38%	11/27/18	$	458,000	$	461,529
2.45%	06/30/20		418,000		411,815
3.40%	05/15/25		421,000		404,672
4.50%	05/15/35		208,000		192,391
4.75%	05/15/46		106,000		97,035
4.80%	06/15/44		163,000		149,330
AutoNation Inc.
4.50%	10/01/25		292,000		296,440
AutoZone Inc.
3.25%	04/15/25		217,000		209,989
Bank of America Corp.
1.70%	08/25/17		1,050,000		1,047,081
2.60%	01/15/19		147,000		147,499
3.88%	08/01/25		82,000		83,248
3.95%	04/21/25		251,000		244,439
4.00%	01/22/25		207,000		202,805
4.10%	07/24/23		218,000		225,500
4.25%	10/22/26		375,000		371,226
Barclays Bank PLC
2.25%	05/10/17		1,186,000		1,198,625	(b)
Barclays PLC
5.25%	08/17/45		205,000		206,493
Barrick Gold Corp.
4.10%	05/01/23		66,000		56,623
Baxalta Inc.
2.88%	06/23/20		417,000		411,996	(b)
4.00%	06/23/25		313,000		309,916	(b)
Bed Bath & Beyond Inc.
4.92%	08/01/34		61,000		54,392
Berkshire Hathaway Energy Co.
6.13%	04/01/36		330,000		384,587
Berkshire Hathaway Finance Corp.
3.00%	05/15/22		194,000		197,424
Berkshire Hathaway Inc.
4.50%	02/11/43		3,000		3,018
Berry Plastics Corp.
5.13%	07/15/23		260,000		252,850
6.00%	10/15/22		200,000		203,500	(b)
BHP Billiton Finance USA Ltd.
5.00%	09/30/43		115,000		104,211
Biogen Inc.
2.90%	09/15/20		207,000		206,546
4.05%	09/15/25		207,000		208,074
5.20%	09/15/45		82,000		82,023
Bombardier Inc.
4.75%	04/15/19		164,000		134,890	(b)
6.00%	10/15/22		164,000		114,964	(b)
7.75%	03/15/20		212,000		171,190	(b)
Boston Scientific Corp.
3.85%	05/15/25		210,000		206,663
BP Capital Markets PLC
1.38%	05/10/18		211,000		207,989
3.81%	02/10/24		200,000		199,961

		Principal Amount		Fair Value
Branch Banking & Trust Co.
3.63%	09/16/25	$	430,000	$	434,258
Building Materials Corporation of America
5.38%	11/15/24		516,000		514,710	(b)
Burlington Northern Santa Fe LLC
3.65%	09/01/25		145,000		146,945
Calpine Corp.
5.75%	01/15/25		251,000		221,508
5.88%	01/15/24		565,000		579,125	(b)
Calumet Specialty Products Partners LP/Calumet Finance Corp.
6.50%	04/15/21		431,000		374,970
Canadian Pacific Railway Co.
2.90%	02/01/25		150,000		141,207
Capital One Financial Corp.
4.20%	10/29/25		416,000		410,952
Caterpillar Inc.
4.30%	05/15/44		133,000		128,342
Catholic Health Initiatives
2.60%	08/01/18		125,000		125,517
4.35%	11/01/42		130,000		121,575
CBS Corp.
3.70%	08/15/24		319,000		310,397
CCO Safari II LLC
3.58%	07/23/20		313,000		311,207	(b)
4.91%	07/23/25		313,000		312,692	(b)
6.38%	10/23/35		42,000		42,388	(b)
6.48%	10/23/45		83,000		83,029	(b)
Celgene Corp.
3.88%	08/15/25		417,000		415,675
5.00%	08/15/45		208,000		208,796
CenturyLink Inc.
5.80%	03/15/22		862,000		790,023
Cequel Capital Corp.
5.13%	12/15/21		484,000		435,600	(b)
Chevron Corp.
3.33%	11/17/25		292,000		294,105
Cigna Corp.
3.25%	04/15/25		417,000		409,530
Cinemark USA Inc.
4.88%	06/01/23		431,000		420,225
Citigroup Inc.
1.55%	08/14/17		917,000		913,293
1.75%	05/01/18		419,000		415,483
1.85%	11/24/17		200,000		199,715
2.05%	12/07/18		378,000		375,995
2.65%	10/26/20		207,000		205,497
4.40%	06/10/25		209,000		211,190
4.65%	07/30/45		333,000		336,805
CMS Energy Corp.
4.88%	03/01/44		209,000		211,934

See Notes to Schedules of Investments and Notes to Financial Statements.

49

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
CNA Financial Corp.
5.88%	08/15/20	$	326,000	$	361,387
CNOOC Nexen Finance 2014 ULC
4.25%	04/30/24		423,000		426,352
Cogeco Cable Inc.
4.88%	05/01/20		400,000		399,000	(b)
Colgate-Palmolive Co.
4.00%	08/15/45		208,000		208,461
Columbia Pipeline Group Inc.
3.30%	06/01/20		292,000		284,437	(b)
4.50%	06/01/25		209,000		189,434	(b)
Comcast Corp.
3.38%	08/15/25		709,000		718,198
4.20%	08/15/34		206,000		204,030
4.60%	08/15/45		210,000		212,609
ConocoPhillips Co.
3.35%	11/15/24		416,000		380,625
Continental Resources Inc.
3.80%	06/01/24		91,000		64,127
4.50%	04/15/23		82,000		58,948
4.90%	06/01/44		47,000		28,349
Corp Andina de Fomento
4.38%	06/15/22		604,000		643,018
Credit Suisse AG
1.70%	04/27/18		411,000		408,075
2.60%	05/27/16		405,000		407,167	(b)
Credit Suisse Group Funding Guernsey Ltd.
3.75%	03/26/25		252,000		243,456	(b)
Crown Americas LLC/Crown Americas Capital Corp. IV
4.50%	01/15/23		511,000		499,503
CSX Corp.
4.50%	08/01/54		124,000		112,474
CubeSmart LP
4.00%	11/15/25		116,000		115,177
CVS Health Corp.
2.25%	08/12/19		618,000		617,417
3.88%	07/20/25		417,000		425,651
5.13%	07/20/45		312,000		328,671
Daimler Finance North America LLC
2.38%	08/01/18		628,000		628,956	(b)
Danaher Corp.
2.40%	09/15/20		207,000		207,016
3.35%	09/15/25		207,000		210,263
4.38%	09/15/45		112,000		115,688
Denbury Resources Inc.
5.50%	05/01/22		431,000		143,083
6.38%	08/15/21		276,000		99,360
Deutsche Bank AG
4.50%	04/01/25		423,000		389,169
Devon Energy Corp.
5.85%	12/15/25		171,000		166,320

		Principal Amount		Fair Value
Dexia Credit Local S.A.
2.25%	01/30/19	$	843,000	$	848,487	(b)
Diageo Investment Corp.
2.88%	05/11/22		506,000		501,626
DigitalGlobe Inc.
5.25%	02/01/21		427,000		358,680	(b)
DIRECTV Holdings LLC/DIRECTV Financing Company Inc.
4.45%	04/01/24		319,000		327,669
Discover Bank
3.10%	06/04/20		291,000		291,797
Dollar General Corp.
1.88%	04/15/18		410,000		406,056
4.13%	07/15/17		412,000		423,095
4.15%	11/01/25		208,000		206,767
Dollar Tree Inc.
5.75%	03/01/23		517,000		538,973	(b)
Dominion Resources Inc.
1.95%	08/15/16		783,000		784,967
Dr Pepper Snapple Group Inc.
3.40%	11/15/25		416,000		408,683
Duke Energy Progress LLC
4.15%	12/01/44		125,000		122,079
Eastman Chemical Co.
3.60%	08/15/22		416,000		414,195
Ecopetrol S.A.
5.88%	05/28/45		104,000		73,840
Electricite de France S.A.
2.15%	01/22/19		838,000		834,106	(b)
Eli Lilly & Co.
3.70%	03/01/45		41,000		38,348
EMD Finance LLC
3.25%	03/19/25		208,000		197,233	(b)
Energizer Holdings Inc.
5.50%	06/15/25		433,000		407,020	(b)
Energy Transfer Equity LP
5.88%	01/15/24		844,000		687,860
Energy Transfer Partners LP
4.05%	03/15/25		83,000		68,202
5.15%	03/15/45		146,000		103,206
6.50%	02/01/42		344,000		279,793
Ensco PLC
4.50%	10/01/24		209,000		143,932
5.20%	03/15/25		125,000		89,001
5.75%	10/01/44		86,000		56,659
Enterprise Products Operating LLC
3.70%	02/15/26		415,000		372,565
Equinix Inc.
5.88%	01/15/26		85,000		87,550
ERP Operating LP
4.50%	07/01/44		83,000		83,291
European Investment Bank
4.88%	01/17/17		850,000		883,759

See Notes to Schedules of Investments and Notes to Financial Statements.

50

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
FedEx Corp.
3.20%	02/01/25	$	130,000	$	126,547
4.10%	02/01/45		2,000		1,781
Fiat Chrysler Automobiles N.V.
4.50%	04/15/20		265,000		268,313
5.25%	04/15/23		200,000		196,500
Five Corners Funding Trust
4.42%	11/15/23		457,000		477,152	(b)
Florida Power & Light Co.
4.13%	02/01/42		222,000		220,942
Ford Motor Credit Company LLC
3.20%	01/15/21		439,000		436,064
3.22%	01/09/22		440,000		430,797
5.88%	08/02/21		318,000		354,627
Fresenius Medical Care US Finance Inc.
5.75%	02/15/21		344,000		368,080	(b)
Frontier Communications Corp.
7.13%	03/15/19		526,000		525,947
11.00%	09/15/25		393,000		389,070	(b)
General Motors Co.
5.20%	04/01/45		42,000		39,540
General Motors Financial Company Inc.
3.15%	01/15/20		292,000		289,404
3.20%	07/13/20		834,000		821,157
4.30%	07/13/25		417,000		404,634
Georgia-Pacific LLC
3.60%	03/01/25		625,000		618,069	(b)
Gilead Sciences Inc.
2.55%	09/01/20		210,000		210,019
3.65%	03/01/26		235,000		237,088
4.80%	04/01/44		94,000		94,296
Grupo Televisa SAB
5.00%	05/13/45		204,000		175,272
Halliburton Co.
2.70%	11/15/20		208,000		205,682
3.80%	11/15/25		210,000		204,612
5.00%	11/15/45		125,000		123,479
HCA Inc.
4.75%	05/01/23		693,000		686,070
6.50%	02/15/20		392,000		427,084
HSBC Holdings PLC
4.25%	08/18/25		201,000		199,507
HSBC USA Inc.
2.75%	08/07/20		624,000		624,329
Hyundai Capital America
2.13%	10/02/17		189,000		187,876	(b)
Illinois Tool Works Inc.
3.50%	03/01/24		418,000		429,747
ING Bank N.V.
2.70%	08/17/20		200,000		200,976	(b)

		Principal Amount		Fair Value
Ingersoll-Rand Luxembourg Finance S.A.
3.55%	11/01/24	$	291,000	$	284,911
Ingles Markets Inc.
5.75%	06/15/23		551,000		549,623
Intel Corp.
2.45%	07/29/20		208,000		210,469
Intelsat Jackson Holdings S.A.
5.50%	08/01/23		417,000		327,345
International Business Machines Corp.
3.63%	02/12/24		426,000		438,748
Interstate Power & Light Co.
3.40%	08/15/25		415,000		417,500
Intesa Sanpaolo S.p.A.
5.02%	06/26/24		126,000		124,028	(b)
Invesco Finance PLC
3.13%	11/30/22		573,000		565,277
JB Poindexter & Company Inc.
9.00%	04/01/22		120,000		125,400	(b)
JBS USA LLC/JBS USA Finance Inc.
5.75%	06/15/25		345,000		300,150	(b)
5.88%	07/15/24		232,000		209,960	(b)
Jefferies Group LLC
5.13%	01/20/23		168,000		166,693
6.50%	01/20/43		140,000		129,434
Johnson Controls Inc.
4.63%	07/02/44		204,000		172,888
JPMorgan Chase & Co.
2.55%	10/29/20		207,000		205,157
3.88%	09/10/24		617,000		614,070
5.00%	12/29/49		299,000		284,050	(i)
6.10%	10/29/49		500,000		502,550	(i)
KB Home
7.00%	12/15/21		506,000		499,043
Keysight Technologies Inc.
4.55%	10/30/24		415,000		398,993
KFW
2.00%	10/04/22		929,000		914,017
4.50%	07/16/18		238,000		255,855
Kinder Morgan Energy Partners LP
3.50%	09/01/23		137,000		113,653
4.30%	05/01/24		214,000		184,015
Kinder Morgan Inc.
3.05%	12/01/19		83,000		76,845
4.30%	06/01/25		166,000		143,500
5.55%	06/01/45		125,000		97,614
Kinross Gold Corp.
6.88%	09/01/41		30,000		16,438
Kraft Heinz Foods Co.
2.80%	07/02/20		626,000		624,533	(b)
3.95%	07/15/25		543,000		548,257	(b)

See Notes to Schedules of Investments and Notes to Financial Statements.

51

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
L Brands Inc.
5.63%	02/15/22	$	443,000	$	470,688
L-3 Communications Corp.
1.50%	05/28/17		286,000		282,452
Lee Enterprises Inc.
9.50%	03/15/22		347,000		319,240	(b)
Lennar Corp.
4.50%	11/15/19		516,000		524,708
4.75%	05/30/25		174,000		170,085
Levi Strauss & Co.
5.00%	05/01/25		259,000		257,705
Lockheed Martin Corp.
2.50%	11/23/20		292,000		290,972
3.55%	01/15/26		417,000		419,141
4.70%	05/15/46		94,000		96,728
Lowe’s Companies Inc.
4.38%	09/15/45		165,000		169,596
LyondellBasell Industries N.V.
4.63%	02/26/55		83,000		67,309
Macquarie Bank Ltd.
4.88%	06/10/25		423,000		417,714	(b)
Marathon Petroleum Corp.
3.63%	09/15/24		415,000		386,922
Marsh & McLennan Companies Inc.
3.50%	03/10/25		288,000		283,693
3.75%	03/14/26		290,000		290,018
Mattel Inc.
2.35%	05/06/19		633,000		627,730
McDonald’s Corp.
2.75%	12/09/20		113,000		112,944
3.70%	01/30/26		265,000		264,848
4.88%	12/09/45		87,000		87,469
Mead Johnson Nutrition Co.
3.00%	11/15/20		291,000		291,043
4.13%	11/15/25		291,000		293,339
Medtronic Inc.
2.50%	03/15/20		125,000		125,920
3.50%	03/15/25		500,000		505,920
4.63%	03/15/45		210,000		216,516
Memorial Sloan-Kettering Cancer Center
4.13%	07/01/52		165,000		153,916
Merck & Company Inc.
2.75%	02/10/25		215,000		209,324
MetLife Inc.
3.60%	11/13/25		208,000		209,602
4.05%	03/01/45		104,000		96,355
4.72%	12/15/44		128,000		130,720
MGM Resorts International
5.25%	03/31/20		258,000		255,420
6.63%	12/15/21		431,000		441,236
Microsoft Corp.
4.00%	02/12/55		217,000		194,776

		Principal Amount		Fair Value
Mid-America Apartments LP
4.00%	11/15/25	$	209,000	$	207,639
Mizuho Bank Ltd.
2.45%	04/16/19		508,000		508,372	(b)
Monsanto Co.
4.70%	07/15/64		120,000		91,115
Morgan Stanley
2.65%	01/27/20		210,000		209,502
3.70%	10/23/24		416,000		418,038
3.95%	04/23/27		417,000		404,905
4.10%	05/22/23		680,000		687,434
4.88%	11/01/22		116,000		123,181
5.00%	11/24/25		161,000		171,009
Motorola Solutions Inc.
4.00%	09/01/24		141,000		122,376
National Agricultural Cooperative Federation
4.25%	01/28/16		231,000		231,379	(b)
National Retail Properties Inc.
4.00%	11/15/25		208,000		204,362
NCL Corporation Ltd.
4.63%	11/15/20		217,000		212,491	(b)
Newfield Exploration Co.
5.63%	07/01/24		445,000		379,363
5.75%	01/30/22		451,000		399,135
Newmont Mining Corp.
4.88%	03/15/42		158,000		112,874
Nexen Energy ULC
6.40%	05/15/37		223,000		249,405
NIKE Inc.
3.88%	11/01/45		208,000		200,571
Noble Energy Inc.
3.90%	11/15/24		249,000		221,743
Northern States Power Co.
2.20%	08/15/20		417,000		414,186
Northrop Grumman Corp.
3.85%	04/15/45		49,000		44,057
Novartis Capital Corp.
3.00%	11/20/25		552,000		544,158
4.00%	11/20/45		276,000		270,077
NRG Energy Inc.
6.25%	07/15/22		257,000		222,948
Occidental Petroleum Corp.
3.50%	06/15/25		417,000		407,525
Omnicom Group Inc.
3.63%	05/01/22		170,000		171,664
Oracle Corp.
2.25%	10/08/19		818,000		826,833
2.95%	05/15/25		215,000		209,916
4.13%	05/15/45		85,000		80,448
Owens & Minor Inc.
3.88%	09/15/21		415,000		413,384

See Notes to Schedules of Investments and Notes to Financial Statements.

52

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
Pacific Gas & Electric Co.
3.40%	08/15/24	$	617,000	$	619,560
PacifiCorp
6.25%	10/15/37		8,000		9,895
Penn National Gaming Inc.
5.88%	11/01/21		261,000		253,170
People’s United Bank NA
4.00%	07/15/24		478,000		472,708
PepsiCo Inc.
3.10%	07/17/22		105,000		107,686
4.25%	10/22/44		123,000		122,045
4.60%	07/17/45		125,000		132,170
Petrobras Global Finance BV
3.88%	01/27/16		159,000		158,364
Petroleos Mexicanos
3.50%	01/30/23		197,000		171,883
Pfizer Inc.
4.40%	05/15/44		131,000		133,028
Philip Morris International Inc.
4.13%	03/04/43		209,000		197,584
Phillips 66 Partners LP
2.65%	02/15/20		125,000		117,981
3.61%	02/15/25		208,000		182,648
Pitney Bowes Inc.
4.63%	03/15/24		358,000		350,876
Plains All American Pipeline LP/PAA Finance Corp.
4.65%	10/15/25		125,000		109,180
PNC Bank NA
2.40%	10/18/19		440,000		441,731
Precision Castparts Corp.
4.38%	06/15/45		125,000		125,252
Principal Financial Group Inc.
4.70%	05/15/55		415,000		412,510	(i)
Prologis LP
3.75%	11/01/25		208,000		206,328
Prudential Financial Inc.
5.38%	05/15/45		209,000		208,739	(i)
5.63%	06/15/43		257,000		262,783	(i)
Public Service Electric & Gas Co.
2.38%	05/15/23		632,000		605,486
QUALCOMM Inc.
2.25%	05/20/20		166,000		164,460
3.45%	05/20/25		148,000		141,979
4.80%	05/20/45		149,000		132,448
Quest Diagnostics Inc.
4.70%	03/30/45		125,000		112,563
Regency Energy Partners LP/Regency Energy Finance Corp.
4.50%	11/01/23		292,000		252,740
Revlon Consumer Products Corp.
5.75%	02/15/21		1,308,000		1,265,490

		Principal Amount		Fair Value
Reynolds American Inc.
4.45%	06/12/25	$	126,000	$	131,849
Rio Tinto Finance USA Ltd.
3.75%	06/15/25		104,000		94,480
Roche Holdings Inc.
3.35%	09/30/24		245,000		250,879	(b)
Rogers Communications Inc.
5.00%	03/15/44		132,000		132,799
Rowan Companies Inc.
5.85%	01/15/44		84,000		50,686
Royal Bank of Canada
1.20%	09/19/17		663,000		659,903
Ryder System Inc.
2.45%	09/03/19		507,000		499,638
Santander Bank NA
2.00%	01/12/18		508,000		504,310
Santander UK Group Holdings PLC
4.75%	09/15/25		200,000		197,361	(b)
Schaeffler Holding Finance BV (6.25% Cash/7.00% PIK)
6.25%	11/15/19		225,000		235,125	(b,n)
Schaeffler Holding Finance BV (6.88% Cash/7.63% PIK)
6.88%	08/15/18		240,000		247,200	(b,n)
Schlumberger Holdings Corp.
3.00%	12/21/20		567,000		559,759	(b)
4.00%	12/21/25		378,000		373,203	(b)
Sealed Air Corp.
4.88%	12/01/22		258,000		258,645	(b)
5.13%	12/01/24		258,000		258,000	(b)
Shell International Finance BV
2.25%	11/10/20		417,000		410,745
3.40%	08/12/23		642,000		638,350
Sinclair Television Group Inc.
5.38%	04/01/21		452,000		453,130
Sinopec Capital 2013 Ltd.
3.13%	04/24/23		336,000		320,305	(b)
Southern California Edison Co.
2.40%	02/01/22		165,000		161,809
Spectra Energy Partners LP
4.75%	03/15/24		205,000		198,672
Sprint Corp.
7.25%	09/15/21		235,000		175,075
7.63%	02/15/25		472,000		344,560
State Street Corp.
3.55%	08/18/25		415,000		428,114	(e)
Statoil ASA
3.70%	03/01/24		190,000		192,597
3.95%	05/15/43		104,000		93,941
Sunoco LP/Sunoco Finance Corp.
5.50%	08/01/20		173,000		163,918	(b)
SUPERVALU Inc.
6.75%	06/01/21		433,000		391,865

See Notes to Schedules of Investments and Notes to Financial Statements.

53

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
T-Mobile USA Inc.
6.25%	04/01/21	$	69,000	$	71,243
6.50%	01/15/26		130,000		131,234
6.63%	04/01/23		431,000		439,620
Tampa Electric Co.
4.35%	05/15/44		204,000		199,845
Target Corp.
3.50%	07/01/24		60,000		62,282
TD Ameritrade Holding Corp.
2.95%	04/01/22		207,000		205,179
Teachers Insurance & Annuity Association of America
4.90%	09/15/44		415,000		419,172	(b)
Teck Resources Ltd.
2.50%	02/01/18		122,000		92,720
3.15%	01/15/17		174,000		156,600
Telecom Italia S.p.A.
5.30%	05/30/24		850,000		839,375	(b)
Tenet Healthcare Corp.
4.75%	06/01/20		158,000		158,790
6.00%	10/01/20		416,000		437,840
The Allstate Corp.
5.75%	08/15/53		235,000		241,580	(i)
The Bank of Tokyo-Mitsubishi UFJ Ltd.
2.30%	03/10/19		600,000		597,615	(b)
The Boeing Co.
1.65%	10/30/20		208,000		203,630
2.60%	10/30/25		208,000		201,363
2.85%	10/30/24		291,000		288,256
The Coca-Cola Co.
2.88%	10/27/25		416,000		410,188
The Dow Chemical Co.
4.25%	10/01/34		213,000		192,197
The Goldman Sachs Group Inc.
2.38%	01/22/18		501,000		505,362
2.60%	04/23/20		415,000		414,058
2.63%	01/31/19		207,000		208,509
2.90%	07/19/18		179,000		182,501
3.75%	05/22/25		356,000		358,517
4.00%	03/03/24		208,000		213,597
4.25%	10/21/25		69,000		68,515
4.80%	07/08/44		452,000		448,968
5.15%	05/22/45		209,000		202,878
The Home Depot Inc.
3.35%	09/15/25		292,000		298,563
The Korea Development Bank
3.25%	03/09/16		380,000		381,502
3.38%	09/16/25		205,000		208,724
4.00%	09/09/16		220,000		224,093
The Kroger Co.
2.95%	11/01/21		291,000		288,179
The Progressive Corp.
3.70%	01/26/45		168,000		152,043

		Principal Amount		Fair Value
The Toronto-Dominion Bank
2.50%	12/14/20	$	378,000	$	377,831
The Williams Companies Inc.
8.75%	03/15/32		82,000		61,814
TIAA Asset Management Finance Company LLC
4.13%	11/01/24		208,000		208,820	(b)
Time Inc.
5.75%	04/15/22		433,000		396,195	(b)
Time Warner Cable Inc.
4.50%	09/15/42		42,000		32,959
6.55%	05/01/37		123,000		124,407
Time Warner Inc.
3.60%	07/15/25		229,000		223,027
3.88%	01/15/26		382,000		378,861
5.35%	12/15/43		359,000		358,175
Tyco Electronics Group S.A.
2.35%	08/01/19		413,000		411,650
Tyco International Finance S.A.
5.13%	09/14/45		125,000		129,690
Tyson Foods Inc.
2.65%	08/15/19		206,000		206,166
3.95%	08/15/24		137,000		140,671
5.15%	08/15/44		137,000		143,069
U.S. Bancorp
3.44%	02/01/16		645,000		645,824
5.13%	12/29/49		417,000		418,960	(i)
UBS Group Funding Jersey Ltd.
2.95%	09/24/20		200,000		198,154	(b)
4.13%	09/24/25		250,000		249,897	(b)
Ultra Petroleum Corp.
6.13%	10/01/24		428,000		97,370	(b)
United Rentals North America Inc.
6.13%	06/15/23		340,000		347,650
UnitedHealth Group Inc.
2.70%	07/15/20		501,000		506,445
4.75%	07/15/45		332,000		349,369
US Bank NA
2.80%	01/27/25		310,000		301,849
Valeant Pharmaceuticals International Inc.
6.13%	04/15/25		345,000		307,913	(b)
6.38%	10/15/20		229,000		220,985	(b)
Ventas Realty LP
4.13%	01/15/26		169,000		168,463
Verizon Communications Inc.
1.35%	06/09/17		1,018,000		1,015,102
3.50%	11/01/24		207,000		204,555
4.15%	03/15/24		415,000		426,745
4.40%	11/01/34		208,000		191,907
4.67%	03/15/55		146,000		126,650
4.86%	08/21/46		208,000		196,782
5.05%	03/15/34		128,000		127,455
5.15%	09/15/23		229,000		251,772
6.55%	09/15/43		141,000		167,392

See Notes to Schedules of Investments and Notes to Financial Statements.

54

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
Virgin Media Finance PLC
5.75%	01/15/25	$	435,000	$	418,688	(b)
Visa Inc.
2.80%	12/14/22		265,000		265,476
3.15%	12/14/25		265,000		265,560
4.30%	12/14/45		124,000		125,685
Volkswagen Group of America Finance LLC
0.81%	11/20/17		206,000		197,949	(b,i)
2.13%	05/23/19		152,000		144,246	(b)
2.45%	11/20/19		205,000		196,574	(b)
W.R. Grace & Co.
5.13%	10/01/21		160,000		161,600	(b)
5.63%	10/01/24		428,000		432,280	(b)
Wal-Mart Stores Inc.
4.30%	04/22/44		179,000		182,508
Wells Fargo & Co.
2.55%	12/07/20		378,000		376,104
3.00%	02/19/25		208,000		202,332
3.90%	05/01/45		208,000		191,778
4.10%	06/03/26		266,000		268,526
4.30%	07/22/27		167,000		170,615
5.88%	12/29/49		290,000		305,225	(i)
5.90%	12/29/49		273,000		275,389	(i)
Williams Partners LP
5.40%	03/04/44		42,000		28,138
Windstream Services LLC
6.38%	08/01/23		400,000		288,000
WMG Acquisition Corp.
6.00%	01/15/21		90,000		90,450	(b)
WPP Finance 2010
3.75%	09/19/24		415,000		413,074
WPX Energy Inc.
5.25%	01/15/17		399,000		373,065
XLIT Ltd.
5.25%	12/15/43		175,000		180,975
Zimmer Biomet Holdings Inc.
3.55%	04/01/25		208,000		202,228
					131,080,864
Non-Agency Collateralized Mortgage Obligations — 11.2%
American Tower Trust I (REIT)
1.55%	03/15/43		627,000		612,356	(b)
Banc of America Commercial Mortgage Trust 2006-4
5.68%	07/10/46		190,000		193,959
Banc of America Commercial Mortgage Trust 2007-1
5.48%	01/15/49		880,000		901,099	(i)
Banc of America Commercial Mortgage Trust 2007-4
5.74%	02/10/51		27,484		28,594	(i)
Banc of America Commercial Mortgage Trust 2008-1
6.22%	02/10/51		142,209		150,600	(i)

		Principal Amount		Fair Value
Banc of America Merrill Lynch Commercial Mortgage Inc. 2005-1
5.34%	11/10/42	$	96,019	$	95,912	(i)
Banc of America Merrill Lynch Commercial Mortgage Trust 2014-520M
4.18%	08/15/46		165,040		170,505	(b,i)
Bear Stearns Commercial Mortgage Securities Trust 2006-T22
5.62%	04/12/38		210,000		211,416	(i)
Bear Stearns Commercial Mortgage Securities Trust 2007-PW18
6.09%	06/11/50		430,000		456,312	(i)
Citigroup Commercial Mortgage Trust 2014-GC23
4.51%	07/10/47		834,000		695,573	(b,i)
Citigroup Commercial Mortgage Trust 2015-GC33
3.17%	09/10/58		200,411		140,055
Citigroup Commercial Mortgage Trust 2015-P1
3.72%	09/15/48		825,222		840,949
COMM 2013-CR12 Mortgage Trust
5.08%	10/10/46		100,000		93,926	(b,i)
COMM 2013-LC13 Mortgage Trust
4.56%	08/10/46		170,000		182,649	(b,i)
COMM 2014-CR14 Mortgage Trust
4.53%	02/10/47		240,000		257,488	(i)
COMM 2014-CR19 Mortgage Trust
4.72%	08/10/47		195,777		169,351	(b,i)
COMM 2014-CR20 Mortgage Trust
4.51%	11/10/47		204,175		198,437	(i)
COMM 2014-CR21 Mortgage Trust
3.99%	12/10/47		403,396		415,223
COMM 2015-CR23 Mortgage Trust
4.26%	05/10/48		197,046		181,555	(i)
COMM 2015-CR24 Mortgage Trust
3.46%	08/10/55		401,080		297,300
3.70%	08/10/55		400,511		407,044
4.37%	08/10/55		360,571		343,292	(i)
COMM 2015-LC19 Mortgage Trust
2.87%	02/10/48		312,000		232,156	(b)
COMM 2015-PC1 Mortgage Trust
4.44%	07/10/50		196,196		195,324	(i)
Core Industrial Trust 2015-CALW
3.25%	02/10/34		395,784		393,409	(b)
Credit Suisse Commercial Mortgage Trust 2006-C1
5.46%	02/15/39		512,183		511,735	(i)
CSAIL 2015-C2 Commercial Mortgage Trust
4.21%	06/15/57		135,000		104,427	(i)

See Notes to Schedules of Investments and Notes to Financial Statements.

55

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
CSAIL 2015-C3 Commercial Mortgage Trust
3.36%	08/15/48	$	240,335	$	173,737	(i)
4.11%	08/15/48		320,447		313,887	(i)
GS Mortgage Securities Corp. II 2012-GCJ9
2.33%	11/10/45		951,262		91,595	(g,i)
GS Mortgage Securities Corp. Trust 2012-ALOH
3.55%	04/10/34		210,000		215,849	(b)
GS Mortgage Securities Trust 2011-GC5
3.00%	08/10/44		404,023		406,043
5.31%	08/10/44		190,000		209,329	(b,i)
GS Mortgage Securities Trust 2014-GC20
4.26%	04/10/47		215,000		224,668
GS Mortgage Securities Trust 2014-NEW
3.79%	01/10/31		420,000		419,259	(b)
GS Mortgage Securities Trust 2015-GC28
1.17%	02/10/48		2,736,928		187,625	(g,i)
GS Mortgage Securities Trust 2015-GC32
3.35%	07/10/48		220,408		160,537
4.41%	07/10/48		103,472		99,596	(i)
GS Mortgage Securities Trust 2015-GC34
2.98%	10/10/48		460,912		320,034
GS Mortgage Securities Trust 2015-GS1
3.27%	11/10/48		556,028		402,367
Impac CMB Trust Series 2004-5
1.14%	10/25/34		137,563		129,630	(i)
JP Morgan Chase Commercial Mortgage Securities Corp. 2012-LC9
1.87%	12/15/47		1,233,892		94,164	(g,i)
JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP8
5.44%	05/15/45		270,000		274,702
JP Morgan Chase Commercial Mortgage Securities Trust 2007-CB18
5.44%	06/12/47		640,106		655,450
JPMBB Commercial Mortgage Securities Trust 2013-C12
4.03%	07/15/45		125,000		129,905	(i)
JPMBB Commercial Mortgage Securities Trust 2013-C15
5.08%	11/15/45		170,000		176,758	(i)
JPMBB Commercial Mortgage Securities Trust 2013-C17
4.89%	01/15/47		310,000		312,765	(i)

		Principal Amount		Fair Value
JPMBB Commercial Mortgage Securities Trust 2014-C18
4.81%	02/15/47	$	125,901	$	109,239	(b,i)
4.81%	02/15/47		210,000		209,585	(i)
JPMBB Commercial Mortgage Securities Trust 2015-C29
3.70%	05/15/48		394,870		294,746	(i)
JPMBB Commercial Mortgage Securities Trust 2015-C30
4.31%	07/15/48		400,742		356,768	(i)
JPMBB Commercial Mortgage Securities Trust 2015-C31
3.80%	08/15/48		600,916		614,444
LB-UBS Commercial Mortgage Trust 2004-C8
0.47%	12/15/39		172,925		894	(b,g,i)
LB-UBS Commercial Mortgage Trust 2006-C4
5.82%	06/15/38		156,871		158,245	(i)
LB-UBS Commercial Mortgage Trust 2007-C6
6.11%	07/15/40		243,078		253,850	(i)
6.11%	07/15/40		520,000		543,085	(b)
MASTR Alternative Loan Trust 2003-5
5.00%	08/25/18		30,121		1,254	(g)
ML-CFC Commercial Mortgage Trust 2006-3
5.46%	07/12/46		570,000		579,336	(i)
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10
4.08%	07/15/46		388,000		377,316	(i)
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9
4.16%	05/15/46		152,326		137,884	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14
4.83%	02/15/47		219,667		203,971	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15
4.90%	04/15/47		585,125		530,700	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18
3.39%	10/15/47		843,762		650,430	(b)
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19
3.25%	12/15/47		242,461		180,506	(b)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20
1.42%	02/15/48		3,137,524		270,901	(g,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C21
0.99%	03/15/48		3,743,993		241,422	(g,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C22
3.88%	04/15/48		355,828		347,547	(i)
4.24%	04/15/48		990,221		803,823	(b,i)

See Notes to Schedules of Investments and Notes to Financial Statements.

56

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23
4.14%	07/15/50	$	1,039,616	$	841,096	(b,i)
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24
3.73%	05/15/48		777,954		793,225
4.35%	05/15/48		801,268		793,893	(i)
Morgan Stanley Capital I Trust 2005-T17
4.84%	12/13/41		65,448		65,685	(i)
Morgan Stanley Capital I Trust 2006-IQ11
5.78%	10/15/42		250,000		249,820	(i)
Morgan Stanley Capital I Trust 2006-T21
5.27%	10/12/52		234,684		234,548	(i)
Morgan Stanley Capital I Trust 2006-T23
5.85%	08/12/41		133,241		134,175	(i)
Morgan Stanley Capital I Trust 2007-IQ16
6.05%	12/12/49		430,000		450,849	(i)
Morgan Stanley Capital I Trust 2008-T29
6.27%	01/11/43		210,000		224,995	(i)
Morgan Stanley Capital I Trust 2012-C4
5.21%	03/15/45		190,000		204,547	(b,i)
Morgan Stanley Capital I Trust 2015-MS1
4.03%	05/15/48		270,000		212,116	(b,i)
Morgan Stanley Capital I Trust 2015-UBS8
3.81%	12/15/48		730,575		743,039
Wells Fargo Commercial Mortgage Trust 2015-C26
1.41%	02/15/48		3,184,875		274,539	(g,i)
Wells Fargo Commercial Mortgage Trust 2015-C29
4.01%	06/15/48		589,167		600,831
4.22%	06/15/48		327,315		257,158	(i)
Wells Fargo Commercial Mortgage Trust 2015-C30
4.50%	09/15/58		200,306		162,918	(b,i)
Wells Fargo Commercial Mortgage Trust 2015-C31
3.70%	11/15/48		400,660		406,245
Wells Fargo Commercial Mortgage Trust 2015-LC22
4.54%	09/15/58		200,550		163,923	(i)
Wells Fargo Commercial Mortgage Trust 2015-NXS2
4.25%	07/15/58		200,441		157,922	(i)
Wells Fargo Commercial Mortgage Trust 2015-P2
4.90%	12/15/48		1,016,442		994,131	(i)

		Principal Amount		Fair Value
Wells Fargo Commercial Mortgage Trust 2015-SG1
3.79%	12/15/47	$	520,937	$	532,790
4.47%	12/15/47		200,305		188,756	(i)
Wells Fargo Mortgage Backed Securities Trust 2006-3
5.50%	03/25/36		107,679		4,323
WFRBS Commercial Mortgage Trust 2013-C17
4.26%	12/15/46		235,000		248,403
5.13%	12/15/46		170,000		161,841	(b,i)
WFRBS Commercial Mortgage Trust 2013-C18
4.67%	12/15/46		230,603		214,332	(b,i)
WFRBS Commercial Mortgage Trust 2014-C19
4.23%	03/15/47		400,926		336,572	(b)
4.72%	03/15/47		290,000		303,842	(i)
WFRBS Commercial Mortgage Trust 2014-C22
3.91%	09/15/57		535,456		431,975	(b,i)
WFRBS Commercial Mortgage Trust 2014-C24
3.69%	11/15/47		769,611		591,701	(b)
WFRBS Commercial Mortgage Trust 2014-C25
3.80%	11/15/47		96,000		73,422	(b,i)
WFRBS Commercial Mortgage Trust 2014-LC14
4.35%	03/15/47		533,000		562,433	(i)
4.59%	03/15/47		590,543		505,641	(b,i)
WFRBS Commercial Mortgage Trust 2015-C31
3.85%	11/15/48		100,165		73,590
					32,539,768
Sovereign Bonds — 1.1%
Government of Colombia
2.63%	03/15/23		323,000		283,756
5.63%	02/26/44		334,000		304,775
Government of Mexico
3.60%	01/30/25		319,000		310,866
4.00%	10/02/23		208,000		210,704
4.60%	01/23/46		300,000		265,500
4.75%	03/08/44		398,000		362,578
Government of Panama
4.00%	09/22/24		200,000		200,000
Government of Peru
4.13%	08/25/27		123,000		120,540
5.63%	11/18/50		67,000		68,340
Government of Philippines
3.95%	01/20/40		200,000		202,327
4.20%	01/21/24		200,000		216,637

See Notes to Schedules of Investments and Notes to Financial Statements.

57

Elfun Income Fund December 31, 2015

		Principal Amount		Fair Value
Government of Turkey
3.25%	03/23/23	$	293,000	$	268,404
4.88%	04/16/43		206,000		181,280
6.63%	02/17/45		137,000		153,522
					3,149,229
Municipal Bonds and Notes — 0.7%
American Municipal Power Inc.
6.27%	02/15/50		275,000		319,806
Municipal Electric Authority of Georgia
6.64%	04/01/57		317,000		380,435
New Jersey Transportation Trust Fund Authority
6.88%	12/15/39		165,000		172,907
Port Authority of New York & New Jersey
4.46%	10/01/62		520,000		499,756
South Carolina State Public Service Authority
6.45%	01/01/50		200,000		250,514
State of California
5.70%	11/01/21		280,000		328,468
State of Illinois
5.10%	06/01/33		125,000		118,206
					2,070,092
FNMA (TBA) — 0.0%*
Lehman TBA
5.50%	TBA		155,556		8,556	(o,q)
Total Bonds and Notes (Cost $290,865,806)					287,167,521

	Number of Shares	Fair Value
Domestic Equity — 0.1%
Preferred Stock — 0.1%
Wells Fargo & Co.
(Cost $322,150)	12,886	$	336,582
Total Investments in Securities (Cost $291,187,956)			287,504,103
Short-Term Investments — 5.1%
State Street Institutional U.S. Government Money Market Fund — Premier Class
0.09%		$	14,834,395		(d,h,p)
(Cost $14,834,395)
Total Investments (Cost $306,022,351)			302,338,498
Liabilities in Excess of Other Assets, net — (4.3)%			(12,466,060	)
NET ASSETS — 100.0%		$	289,872,438

Other Information:

Centrally Cleared Credit Default Swaps – Sell Protection

Reference Entity	Counterparty	Notional Amount (000s omitted)			Contract annual Fixed Rate			Termination Date		Market Value			Unamortized Upfront Payments Received				Unrealized Appreciation
Markit CDX North America High Yield Index	CME Group Inc.		$	3,300		5.00	%		12/20/20		$	42,342		$	(17,656	)		$	59,998

See Notes to Schedules of Investments and Notes to Financial Statements.

58

Elfun Income Fund December 31, 2015

The Fund had the following long futures contracts open at December 31, 2015:

Description	Expiration date	Number of Contracts		Current Notional Value			Unrealized Appreciation (Depreciation)
Ultra Long-Term U.S. Treasury Bond Futures	March 2016		24		$	3,808,500		$	8,510
2 Yr. U.S. Treasury Notes Futures	March 2016		160			34,757,500			(72,283	)
								$	(63,773	)

The Fund had the following short futures contracts open at December 31, 2015:

Description	Expiration date	Number of Contracts		Current Notional Value				Unrealized Appreciation (Depreciation)
U.S. Long Bond Futures	March 2016		2		$	(307,500	)		$	(1,317	)
5 Yr. U.S. Treasury Notes Futures	March 2016		49			(5,797,695	)			9,051
10 Yr. U.S. Treasury Notes Futures	March 2016		276			(34,750,125	)			221,840
									$	229,574
									$	165,801

See Notes to Schedules of Investments and Notes to Financial Statements.

59

(Unaudited)

SSgA Funds Management, Inc. (“SSgA FM”) is the sub-adviser to the Elfun Government Money Market Fund. SSgA FM is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended, and is a wholly owned subsidiary of State Street Corporation (State Street), a publicly held bank holding company. SSgA FM, and other advisory affiliates of State Street make up State Street Global Advisors (SSgA), the investment management arm of State Street. The Fund is managed by a team of portfolio managers and the key professionals involved in the day-to-day portfolio management for the Fund include: Jeff A. St. Peters and Todd N. Bean. See portfolio managers’ biographical information beginning on page 98.

Q. How did the Elfun Government Money Market Fund perform compared to its benchmark for the twelve-month period ended December 31, 2015?

A. For the twelve-month period ended December 31, 2015, the Elfun Government Money Market Fund returned 0.08%. The 90-day Treasury Bill, the Fund’s benchmark, returned 0.05% over the same period.

Q. What market factors affected the Fund’s performance?

A. There were two market factors that affected the Fund’s performance. First the Federal Reserve’s rate hike and second the debt ceiling debate.

It was anticipated the Fed would raise their benchmark interest rate at some point in 2015. Early in the year market participants expected rates to rise at the June meeting. Hopes were dashed as winter weather dampened economic output and put the Fed on hold. As spring and summer took hold once again the Fed’s possible hike at their September meeting became a likely scenario. But global fears took over and put the Fed on hold once again. It was not until we received strong economic data in the fourth quarter coupled with comments by Fed officials that a December hike became a reality.

The second challenge for the short term markets was the debt ceiling debate. Given the negotiations in Washington took longer than expected the US treasury began paying down their Treasury Bill issuance. 1 month Bills auctions shrank to as little as $5 billion in size from $30 billion. This caused all Treasury Bills from 1 week to 12 weeks to trade at negative yields at certain points in the cycle.

Q. What were the primary drivers of Fund performance?

A. The primary drivers of the Fund’s performance were the use of floating rate notes. Both US Treasury and US Government Agency Floating rate notes were used in the portfolio and continue to be core positions. These floating rate notes can offer a pickup in yield to fixed rate offerings while allowing the portfolio manager to manage duration risk more closely.

The portfolio manager also purchased US treasury coupons and US government agency coupons when they saw a relative value advantage to the equivalent discounted securities.

Q. Were there any significant changes to the Fund during the period?

A. There were no significant changes to the Fund during the period. The Fund abides by the SEC’s Rule 2a-7 for Government Money Market Fund strategies. The holdings were balanced throughout the year and did not see any significant shift in investment type.

60

(Unaudited)

Understanding Your Fund’s Expenses

As a shareholder of the Fund you incur ongoing costs. Ongoing costs include portfolio management fees, professional fees, administrative fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in units of the Fund during the period. The information in the following table is based on an investment of $1,000, which is invested at the beginning of the period and held for the entire six-month period ended December 31, 2015.

Actual Expenses

The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given under the heading “Expenses paid during

the period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs, such as sales charges or redemption fees, if any. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

July 1, 2015 – December 31, 2015

	Account value at the beginning of the period  ($)		Account value at the end of the period  ($)		Expenses paid during the period ($)*
Actual Fund Return		1,000.00		1,000.80		0.55
Hypothetical 5% Return (2.5% for the period)		1,000.00		1,024.65		0.56

* Expenses are equal to the Fund’s annualized net expense ratio of 0.11%** (for the period July 1, 2015 – December 31, 2015), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** May differ from expense ratio disclosed in the financial highlights, which is calculated based on the entire fiscal year’s data.

61

(Unaudited)

Investment Profile

A mutual fund designed for investors who seek a high level of current income consistent with prudent investment management and the preservation of capital. The Fund seeks to achieve its investment objective by investing at least 99.5% of its assets under normal circumstances in short-term, U.S. Government securities, cash and/or repurchase agreements that are collateralized by cash or government securities.

Sector Allocation

Portfolio composition as a % of Fair Value of Investments of $130,929 (in thousands) on December 31, 2015 ^(a)

Change in Value of a $10,000 Investment

Average Annual Total Return

For the Periods Ended December 31, 2015

(Inception date: 6/13/90)
	One Year		Five Year		Ten Year		Ending Value of a $10,000 Investment
Elfun Government Money Market Fund		0.08%		0.05%		1.34%		$11,420
90 Day U.S. T-Bill		0.05%		0.06%		1.11%		$11,235

(a) The securities information regarding holdings, allocations and other characteristics is presented to illustrate examples of securities that the Fund has bought and the diversity of areas in which the Fund may invest as of a particular date. It may not be representative of the Fund’s current or future investments and should not be construed as a recommendation to purchase or sell a particular security.

See Notes to Performance beginning on page 1 for further information, including an explanation of Morningstar peer categories.

Past performance does not predict future performance. The performance shown in the graphs and tables does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

An investment in the Elfun Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance

Corporation or by any other Government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per

unit, it is possible to lose money by investing in the Fund.

62

Elfun Government Money Market Fund December 31, 2015

Elfun Government Money Market Fund

		Principal Amount		Amortized Cost
Short-Term Investments — 101.5%†
U.S. Treasuries — 22.6%
U.S. Treasury Bills
0.06%	01/07/16	$	13,000,000	$	12,999,875	(d)
0.07%	01/14/16		5,000,000		4,999,872	(d)
0.12%	02/04/16		5,000,000		4,999,455	(d)
0.14%	02/25/16		3,000,000		2,999,358	(d)
0.15%	02/18/16		3,000,000		2,999,420	(d)
0.18%	03/17/16		125,000		124,953	(d)
					29,122,933
U.S. Government Agency Obligations — 63.3%
Fannie Mae Discount Notes
0.06%	01/27/16		200,000		199,991	(d)
0.07%	02/03/16		350,000		349,979	(d)
0.08%	01/13/16 - 01/20/16		1,300,000		1,299,952	(d)
0.09%	01/06/16 - 01/08/16		2,100,000		2,099,970	(d)
0.15%	02/17/16		500,000		499,902	(d)
0.20%	02/24/16		750,000		749,775	(d)
0.34%	03/30/16		400,000		399,669	(d)
0.38%	04/06/16		1,500,000		1,498,480	(d)
0.40%	03/16/16		1,000,000		999,167	(d)
Federal Farm Credit Banks
0.24%	01/05/16		750,000		750,000	(i)
0.27%	01/11/16		725,000		725,000	(i)
0.28%	09/09/16		400,000		400,004	(i)
0.32%	02/18/16		1,000,000		999,988	(i)
0.41%	10/26/16		700,000		700,000	(i)
Federal Farm Credit Discount Notes
0.09%	01/19/16		300,000		299,986	(d)
0.18%	01/21/16 - 01/28/16		400,000		399,951	(d)
Federal Home Loan Bank Discount Notes
0.10%	01/05/16		700,000		699,993	(d)
0.11%	01/04/16 - 01/13/16		14,900,000		14,899,670	(d)
0.12%	01/15/16 - 01/27/16		5,500,000		5,499,688	(d)
0.15%	01/28/16		600,000		599,935	(d)
0.17%	02/05/16		1,000,000		999,839	(d)
0.37%	04/01/16		2,500,000		2,497,678	(d)
0.38%	03/30/16		1,000,000		999,073	(d)
0.40%	03/23/16		3,000,000		2,997,280	(d)
Federal Home Loan Banks
0.23%	07/08/16		1,000,000		1,000,000	(i)
0.26%	08/12/16		2,000,000		2,000,000	(i)
0.28%	07/15/16		2,000,000		2,000,000	(i)
0.37%	06/24/16		2,665,000		2,665,000	(i)
0.39%	09/20/16		1,000,000		1,000,000	(i)
0.40%	01/25/16		1,000,000		1,000,000	(i)

		Principal Amount		Amortized Cost
Federal Home Loan Mortgage Corp.
0.30%	08/17/16	$	1,200,000	$	1,200,000		(i)
0.37%	08/24/16		1,250,000		1,250,000		(i)
Freddie Mac Discount Notes
0.07%	01/25/16		200,000		199,991		(d)
0.09%	01/14/16 - 01/20/16		6,600,000		6,599,729		(d)
0.10%	01/04/16		200,000		199,998		(d)
0.12%	01/07/16		3,000,000		2,999,940		(d)
0.14%	01/15/16 - 02/11/16		4,100,000		4,099,668		(d)
0.15%	03/04/16		800,000		799,790		(d)
0.18%	02/09/16		1,000,000		999,810		(d)
0.20%	02/17/16		2,000,000		1,999,478		(d)
0.23%	01/08/16 - 03/09/16		4,500,000		4,498,680		(d)
0.27%	02/26/16		2,200,000		2,199,079		(d)
0.28%	03/14/16		1,400,000		1,399,205		(d)
0.43%	03/08/16		1,000,000		999,200		(d)
0.45%	04/11/16		1,000,000		998,737		(d)
					81,673,275
Repurchase Agreements — 15.6%
Citigroup Global Markets, Inc. U.S. Treasury Repo 0.32% dated 12/31/15, to be repurchased at $9,000,080 on 01/04/16 collateralized by $9,180,019 U.S. Treasury Note, 2.00%, maturing on 09/30/20, respectively. 01/04/16			9,000,000		9,000,000
Merrill Lynch, Pierce, Fenner & Smith, Inc. U.S. Treasury Repo 0.29% dated 12/31/15, to be repurchased at $11,133,090 on 01/04/16 collateralized by $11,355,750 U.S. Treasury Note, 1.38%, maturing on 02/29/20. 01/04/16			11,133,000		11,133,000
					20,133,000
Total Short-Term Investments (Cost $130,929,208)					130,929,208
Liabilities in Excess of Other Assets, net — (1.5)%					(1,890,440	)
NET ASSETS — 100.0%				$	129,038,768

See Notes to Schedules of Investments and Notes to Financial Statements.

63

December 31, 2015

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 be representative of the Funds’ future investments and should not be construed as a recommendation to purchase or sell a particular security. See each Funds’ summary prospectus and the Funds’ statutory prospectus for complete descriptions of investment objectives, policies, risks and permissible investments.

(a) Non-income producing security.

(b) Pursuant to Rule 144A of the Securities Act of 1933, as amended, these securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2015, these securities amounted to $7,916,176 and $34,949,769 or 3.78% and 12.06% of the net assets of the Elfun Diversified Fund and Elfun Income Fund, respectively. These securities have been determined to be liquid using procedures established by the Fund’s Board of Directors.

(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 sub-administrator, custodian and accounting agent.

(f) Principal only security. These 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 security. These 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 December 31, 2015, all or a portion of this security was pledged to cover collateral requirements for futures, swaps and/or TBA’s.

(i) Variable or floating rate security. The stated rate represents the rate at December 31, 2015.

(j) Step coupon bond.

(k) Escrowed to maturity Bonds are collateralized by U.S. Treasury securities which are held in escrow by a trustee and are used to pay principal and interest on such bonds.

(l) Pre-refunded Bonds are collateralized by U.S. Treasury securities, which are held in escrow by a trustee and are used to pay principal and interest on the tax-exempt issue to retire the bonds at the earliest refunding date.

(m) The security is insured by AGC, AGMC, AMBAC, FGIC or NPFG. The Elfun Tax-Exempt Fund had no insurance concentrations of 5% or greater as of December 31, 2015 (as a percentage of net assets).

(n) Represents a payment-in-kind security which may pay all or a portion of interest in additional par.

(o) Security is in default.

(p) Sponsored by SSGA Funds Management, Inc., an affiliate of State Street Bank & Trust Co., the Fund’s sub-administrator, custodian and accounting agent.

(q) Security is fair valued by the Valuation Committee, in accordance with the procedures approved by GEAM’s Board of Trustees.

† Percentages are based on net assets as of December 31, 2015.

* Less than 0.05%

** Less than 0.005%

Abbreviations:

ADR	—	American Depositary Receipt
AGC	—	Assured Guaranty Corporation
AGMC	—	Assured Guaranty Municipal Company
AMBAC	—	AMBAC Indemnity Corporation
FGIC	—	Financial Guaranty Insurance Corporation
NPFG	—	National Public Finance Guaranty Corporation
REIT	—	Real Estate Investment Trust
REMIC	—	Real Estate Mortgage Investment Conduit
SPDR	—	Standard and Poor’s Depositary Receipt
STRIPS	—	Separate Trading of Registered Interest and Principal of Security
TBA	—	To Be Announced

64

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun International Equity Fund	12/31/15		12/31/14			12/31/13			12/31/12			12/31/11
Inception date	—		—			—			—			1/1/88
Net asset value, beginning of period	$	19.70	$	21.93		$	18.31		$	15.43		$	18.92
Income/(loss) from investment operations:
Net investment income		0.34		0.58			0.37			0.35			0.44
Net realized and unrealized gains/(losses) on investments		(0.37)		(2.24)			3.62			2.88			(3.48)
Total income/(loss) from investment operations		(0.03)		(1.66)			3.99			3.23			(3.04)
Less distributions from:
Net investment income		0.36		0.57			0.37			0.35			0.44
Return of capital		—		—			—			0.00	*		0.01
Total distributions		0.36		0.57			0.37			0.35			0.45
Net asset value, end of period	$	19.31	$	19.70		$	21.93		$	18.31		$	15.43
TOTAL RETURN(a)		(0.18)%		(7.62)%			21.81%			20.95%			(16.02)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	234,448	$	254,310		$	306,922		$	260,728		$	240,572
Ratios to average net assets:
Net expenses		0.35%		0.33%	(b)		0.31%	(b)		0.45%	(b)		0.30%	(b)
Gross expenses		0.35%		0.33%			0.31%			0.45%			0.31%
Net investment income		1.59%		2.54%			1.83%			1.98%			2.34%
Portfolio turnover rate		24%		36%			49%			47%			39%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and assume no sales charge. Past performance does not guarantee future results.

(b) Includes contractual management fee waiver related to the Fund’s investments in the GE Institutional Money Market Fund (the “Money Market Fund”). The fee waiver agreement was terminated effective June 30, 2014 with the closure of the Money Market Fund.

* Rounds to less than $0.005.

The accompanying Notes are an integral part of these financial statements.

65

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun Trusts	12/31/15		12/31/14			12/31/13			12/31/12			12/31/11
Inception date	—		—			—			—			5/27/35
Net asset value, beginning of period	$	58.02	$	56.07		$	44.06		$	40.35		$	41.38
Income/(loss) from investment operations:
Net investment income		0.80		0.75			0.71			0.77			0.48
Net realized and unrealized gains/(losses) on investments		0.25		6.67			14.68			7.77			0.06
Total income from investment operations		1.05		7.42			15.39			8.54			0.54
Less distributions from:
Net investment income		0.80		0.75			0.72			0.76			0.48
Net realized gains		3.68		4.72			2.66			4.07			1.09
Total distributions		4.48		5.47			3.38			4.83			1.57
Net asset value, end of period	$	54.59	$	58.02		$	56.07		$	44.06		$	40.35
TOTAL RETURN(a)		1.70%		13.13%			34.98%			21.27%			1.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	2,364,319	$	2,476,637		$	2,326,948		$	1,820,262		$	1,647,396
Ratios to average net assets:
Net expenses		0.16%		0.18%	(b)		0.15%	(b)		0.19%	(b)		0.21%	(b)
Gross expenses		0.16%		0.18%			0.15%			0.19%			0.21%
Net investment income		1.32%		1.26%			1.36%			1.60%			1.09%
Portfolio turnover rate		11%		13%			12%			11%			16%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and do not include the effect of insurance contract charges. Past performance does not guarantee future results.

(b) Includes contractual management fee waiver related to the Fund’s investments in the GE Institutional Money Market Fund (the “Money Market Fund”). The fee waiver agreement was terminated effective June 30, 2014 with the closure of the Money Market Fund.

The accompanying Notes are an integral part of these financial statements.

66

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun Diversified Fund	12/31/15		12/31/14			12/31/13			12/31/12			12/31/11
Inception date	—		—			—			—			1/1/88
Net asset value, beginning of period	$	18.78	$	19.84		$	18.30		$	16.53		$	17.41
Income/(loss) from investment operations:
Net investment income		0.34		0.37			0.36			0.33			0.38
Net realized and unrealized gains/(losses) on investments		(0.57)		0.62			2.70			1.78			(0.83)
Total income/(loss) from investment operations		(0.23)		0.99			3.06			2.11			(0.45)
Less distributions from:
Net investment income		0.34		0.37			0.35			0.34			0.43
Net realized gains		0.71		1.65			1.17			—			—
Return of capital		—		0.03			—			—			—
Total distributions		1.05		2.05			1.52			0.34			0.43
Net asset value, end of period	$	17.50	$	18.78		$	19.84		$	18.30		$	16.53
TOTAL RETURN(a)		(1.25)%		4.95%			16.79%			12.77%			(2.60)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	209,688	$	230,123		$	235,903		$	213,168		$	210,095
Ratios to average net assets:
Net expenses		0.37%		0.39%	(b)		0.33%	(b)		0.46%	(b)		0.40%	(b)
Gross expenses		0.37%		0.39%			0.34%			0.47%			0.41%
Net investment income		1.69%		1.79%			1.78%			1.75%			2.11%
Portfolio turnover rate		123%		176%			144%			173%			197%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and do not include the effect of insurance contract charges. Past performance does not guarantee future results.

(b) Includes contractual management fee waiver related to the Fund’s investments in the GE Institutional Money Market Fund (the “Money Market Fund”). The fee waiver agreement was terminated effective June 30, 2014 with the closure of the Money Market Fund.

The accompanying Notes are an integral part of these financial statements.

67

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun Tax-Exempt Income Fund	12/31/15		12/31/14		12/31/13			12/31/12		12/31/11
Inception date	—		—		—			—		1/1/80
Net asset value, beginning of period	$	11.97	$	11.34	$	12.32		$	11.97	$	11.33
Income/(loss) from investment operations:
Net investment income		0.46		0.47		0.49			0.51		0.53
Net realized and unrealized gains/(losses) on investments		(0.09)		0.63		(0.98)			0.37		0.64
Total income/(loss) from investment operations		0.37		1.10		(0.49)			0.88		1.17
Less distributions from:
Net investment income		0.46		0.47		0.49			0.51		0.53
Net realized gains		—		—		0.00	*		0.02		—
Total distributions		0.46		0.47		0.49			0.53		0.53
Net asset value, end of period	$	11.88	$	11.97	$	11.34		$	12.32	$	11.97
TOTAL RETURN(a)		3.21%		9.85%		(4.06)%			7.45%		10.57%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	1,588,272	$	1,624,266	$	1,568,533		$	1,785,176	$	1,730,904
Ratios to average net assets:
Net expenses		0.18%		0.21%		0.23%			0.18%		0.19%
Gross expenses		0.18%		0.21%		0.23%			0.18%		0.19%
Net investment income		3.92%		4.01%		4.14%			4.18%		4.56%
Portfolio turnover rate		22%		34%		28%			28%		31%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and assume no sales charge. Past performance does not guarantee future results.

* Rounds to less than $0.005.

The accompanying Notes are an integral part of these financial statements.

68

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun Income Fund	12/31/15		12/31/14			12/31/13			12/31/12			12/31/11
Inception date	—		—			—			—			12/31/84
Net asset value, beginning of period	$	11.57	$	11.22		$	11.65		$	11.58		$	11.18
Income/(loss) from investment operations:
Net investment income		0.32		0.29			0.29			0.26			0.39
Net realized and unrealized gains/(losses) on investments		(0.29)		0.35			(0.40)			0.42			0.48
Total income/(loss) from investment operations		0.03		0.64			(0.11)			0.68			0.87
Less distributions from:
Net investment income		0.32		0.29			0.29			0.26			0.38
Net realized gains		0.02		0.00	*		0.03			0.35			0.09
Total distributions		0.34		0.29			0.32			0.61			0.47
Net asset value, end of period	$	11.26	$	11.57		$	11.22		$	11.65		$	11.58
TOTAL RETURN(a)		0.22%		5.75%			(0.95)%			5.94%			7.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	289,872	$	312,756		$	319,994		$	364,407		$	363,029
Ratios to average net assets:
Net expenses		0.28%		0.29%	(b)		0.28%	(b)		0.23%	(b)		0.24%	(b)
Gross expenses		0.28%		0.29%			0.29%			0.25%			0.26%
Net investment income		2.71%		2.50%			2.53%			2.20%			3.39%
Portfolio turnover rate		278%		326%			330%			402%			438%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and do not include the effect of insurance contract charges. Past performance does not guarantee future results.

(b) Includes contractual management fee waiver related to the Fund’s investments in the GE Institutional Money Market Fund (the “Money Market Fund”). The fee waiver agreement was terminated effective June 30, 2014 with the closure of the Money Market Fund.

* Rounds to less than $0.005.

The accompanying Notes are an integral part of these financial statements.

69

Selected data based on a share outstanding throughout the fiscal years indicated

Elfun Government Money Market Fund	12/31/15			12/31/14			12/31/13			12/31/12			12/31/11
Inception date	—			—			—			—			6/13/90
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income/(loss) from investment operations:
Net investment income		—			—			—			—			0.00	*
Total income from investment operations		—			—			—			—			0.00	*
Less distributions from:
Net investment income		0.00	*		0.00	*		—			—			0.00	*
Net realized gains		—			—			0.00	*		—			—
Total distributions		0.00	*		0.00	*		0.00	*		—			0.00	*
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN(a)		0.08%			0.05%			0.04%			0.00%			0.07%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)	$	129,039		$	139,218		$	166,530		$	164,529		$	177,378
Ratios to average net assets:
Net expenses		0.09%	**		0.05%	**		0.11%	**		0.18%	**		0.23%	**
Gross expenses		0.25%			0.36%			0.34%			0.32%			0.32%
Net investment income		—%			—%			—%			—%			0.01%

(a) Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions and assume no sales charge. Past performance does not guarantee future results.

* Rounds to less than $0.005.

** GEAM has voluntarily undertaken to reduce its management fee and/or subsidize certain expenses of the Fund to the extent necessary to maintain a minimum annualized yield of 0.00%.

The accompanying Notes are an integral part of these financial statements.

70

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71

Statements of Assets and Liabilities December 31, 2015	ELFUN INTERNATIONAL EQUITY FUND				ELFUN TRUSTS
ASSETS
Investments in securities, at fair value (cost $218,447,011; $1,368,999,454; $178,343,016; $1,446,747,853; $291,187,956 and $0, respectively)		$	223,947,003			$	2,308,512,370
Short-term investments, at Amortized Cost			9,904,614				50,527,506
Repurchase agreements			—				—
Cash			—				—
Restricted cash(1)			389,039				—
Foreign currency (cost $16,951; $0; $3,049; $0; $0 and $0, respectively)			16,946				—
Receivable from GEAM			—				—
Receivable for investments sold			—				—
Income receivables			450,321				5,425,666
Receivable for fund shares sold			15,608				757,236
Receivable for variation margin on open centrally cleared swap contracts			—				—
Other assets			—				46,611
Total assets			234,723,531				2,365,269,389
LIABILITIES
Distribution payable to shareholders			—				—
Payable for investments purchased			—				—
Payable for fund shares redeemed			54,142				421,453
Payable to GEAM			67,680				142,862
Accrued other expenses			150,761				385,596
Variation margin payable on open futures contracts			375				—
Accrued foreign capital gains tax			2,755				—
Total liabilities			275,713				949,911
NET ASSETS		$	234,447,818			$	2,364,319,478
NET ASSETS CONSIST OF:
Capital paid in		$	243,991,584			$	1,424,730,859
Undistributed (distributions in excess of) net investment income			—				—
Accumulated net realized gain (loss)			(15,068,007	)			75,703
Net unrealized appreciation (depreciation) on:
Investments			5,497,237				939,512,916
Futures			55,067				—
Swap contracts			—				—
Foreign currency related transactions			(28,063	)			—
NET ASSETS		$	234,447,818			$	2,364,319,478
Shares outstanding (Par value $10; $10; $10; $10; $10; and $1, respectively; unlimited shares authorized)			12,141,072				43,307,307
Net asset value, offering and redemption price per share			$19.31				$54.59

(1) Deposits at broker for futures contracts.

The accompanying Notes are an integral part of these financial statements.

72

ELFUN DIVERSIFIED FUND				ELFUN TAX-EXEMPT INCOME FUND				ELFUN INCOME FUND				ELFUN GOVERNMENT MONEY MARKET FUND
	$	184,123,143			$	1,558,382,012			$	287,504,103			$	—
		28,561,801				39,963,873				14,834,395				110,796,208
		—				—				—				20,133,000
		9,579				—				—				973
		409,200				—				—				—
		3,049				—				—				—
		—				—				—				4,751
		—				—				4,222,391				—
		650,544				20,176,428				1,979,795				2,034
		11,528				141,117				90,093				978,139
		308				—				1,462				—
		—				10,648				—				—
		213,769,152				1,618,674,078				308,632,239				131,915,105
		—				1,657,637				202,184				—
		3,601,900				27,965,751				18,124,117				2,497,678
		170,124				448,437				177,077				274,497
		21,825				66,671				10,760				1,600
		246,383				263,296				181,366				102,562
		40,663				—				64,297				—
		—				—				—				—
		4,080,895				30,401,792				18,759,801				2,876,337
	$	209,688,257			$	1,588,272,286			$	289,872,438			$	129,038,768
		205,210,013				1,497,243,832				293,500,638				129,046,990
		—				62,821				359,740				(8,222	)
		(1,415,667	)			(20,668,526	)			(529,886	)			—
		5,780,127				111,634,159				(3,683,853	)			—
		106,725				—				165,801				—
		12,728				—				59,998				—
		(5,669	)			—				—				—
	$	209,688,257			$	1,588,272,286			$	289,872,438			$	129,038,768
		11,981,915				133,727,714				25,747,104				129,235,307
		$17.50				$11.88				$11.26				$1.00

The accompanying Notes are an integral part of these financial statements.

73

Statements of Operations For the year ended December 31, 2015	ELFUN INTERNATIONAL EQUITY FUND				ELFUN TRUSTS
INVESTMENT INCOME
Income
Dividend		$	5,500,357			$	36,522,628
Interest			1,096				14,014
Less: Foreign taxes withheld			(547,279	)			—
Total income			4,954,174				36,536,642
Expenses
Advisory and administration fees			553,510				3,053,498
Blue Sky fees			10,222				16,709
Transfer agent fees			151,768				563,436
Custody and accounting expenses			102,924				98,059
Professional fees			27,570				42,617
Other expenses			47,248				141,120
Total expenses before waivers			893,242				3,915,439
Less: Fees waived by the adviser			—				—
Total expenses			893,242				3,915,439
Net investment income			4,060,932				32,621,203
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) on:
Investments			9,326,514				145,937,417
Futures			245,720				—
Swap contracts			—				—
Foreign currency transactions			(81,419	)			—
Increase (decrease) in unrealized appreciation/depreciation on:
Investments			(12,970,991	)			(134,802,483	)
Futures			59,843				—
Swap contracts			—				—
Foreign currency translations			814				—
Net realized and unrealized gain (loss) on investments			(3,419,519	)			11,134,934
Net increase (decrease) in net assets resulting from operations		$	641,413			$	43,756,137

The accompanying Notes are an integral part of these financial statements.

74

ELFUN DIVERSIFIED FUND				ELFUN TAX-EXEMPT INCOME FUND				ELFUN INCOME FUND				ELFUN GOVERNMENT MONEY MARKET FUND
	$	2,745,426			$	—			$	20,853			$	—
		2,048,965				65,621,525				9,078,173				121,463
		(106,324	)			—				—				—
		4,688,067				65,621,525				9,099,026				121,463
		355,562				2,446,145				469,900				121,428
		6,898				14,477				9,511				13,902
		117,790				252,014				139,503				82,814
		291,979				92,367				178,064				61,188
		30,721				29,323				22,867				22,357
		38,467				98,214				33,194				23,664
		841,417				2,932,540				853,039				325,353
		—				—				—				(203,890	)
		841,417				2,932,540				853,039				121,463
		3,846,650				62,688,985				8,245,987				—
		7,296,596				5,292,646				(932,811	)			533
		285,664				(713,594	)			628,434				—
		24,652				—				120,017				—
		(5,925	)			—				—				—
		(14,045,949	)			(16,826,936	)			(7,435,365	)			—
		(38,357	)			—				196,009				—
		12,728				—				59,998				—
		41				—				—				—
		(6,470,550	)			(12,247,884	)			(7,363,718	)			533
	$	(2,623,900	)		$	50,441,101			$	882,269			$	533

The accompanying Notes are an integral part of these financial statements.

75

Statements of Changes in Net Assets	ELFUN INTERNATIONAL EQUITY FUND								ELFUN TRUSTS
	YEAR ENDED DECEMBER 31, 2015				YEAR ENDED DECEMBER 31, 2014				YEAR ENDED DECEMBER 31, 2015				YEAR ENDED DECEMBER 31, 2014
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	4,060,932			$	7,245,178			$	32,621,203			$	29,857,133
Net realized gain (loss) on investments, futures, swap contracts and foreign currency transactions			9,490,815				20,303,790				145,937,417				191,149,342
Net increase (decrease) in unrealized appreciation/depreciation on investments, futures, swap contracts and foreign currency translations			(12,910,334	)			(49,641,721	)			(134,802,483	)			76,152,832
Net increase (decrease) from operations			641,413				(22,092,753	)			43,756,137				297,159,307
Distributions to shareholders from:
Net investment income			(4,270,754	)			(7,173,676	)			(32,631,167	)			(29,624,777	)
Net realized gains			—				—				(149,723,012	)			(187,625,045	)
Return of capital			—				—				—				—
Total distributions			(4,270,754	)			(7,173,676	)			(182,354,179	)			(217,249,822	)
Increase (decrease) in assets from operations and distributions			(3,629,341	)			(29,266,429	)			(138,598,042	)			79,909,485
Share transactions:
Proceeds from sale of shares			7,687,967				5,989,812				52,198,319				53,464,351
Value of distributions reinvested			3,767,932				6,310,419				145,097,677				173,632,057
Cost of shares redeemed			(27,688,653	)			(35,645,662	)			(171,015,568	)			(157,316,644	)
Net increase (decrease) from share transactions			(16,232,754	)			(23,345,431	)			26,280,428				69,779,764
Total increase (decrease) in net assets			(19,862,095	)			(52,611,860	)			(112,317,614	)			149,689,249
NET ASSETS
Beginning of year			254,309,913				306,921,773				2,476,637,092				2,326,947,843
End of year		$	234,447,818			$	254,309,913			$	2,364,319,478			$	2,476,637,092
Undistributed (distributions in excess of) net investment income, end of year		$	—			$	32			$	—			$	80,067
CHANGES IN FUND SHARES
Shares sold			373,067				281,667				891,191				922,288
Shares issued for distributions reinvested			193,525				315,205				2,617,674				2,962,497
Shares redeemed			(1,332,620	)			(1,685,316	)			(2,888,958	)			(2,698,432	)
Net increase (decrease) in fund shares			(766,028	)			(1,088,444	)			619,907				1,186,353

The accompanying Notes are an integral part of these financial statements.

76

ELFUN DIVERSIFIED FUND								ELFUN TAX-EXEMPT INCOME FUND
YEAR ENDED DECEMBER 31, 2015				YEAR ENDED DECEMBER 31, 2014				YEAR ENDED DECEMBER 31, 2015				YEAR ENDED DECEMBER 31, 2014
	$	3,846,650			$	4,267,269			$	62,688,985			$	64,658,213
		7,600,987				18,531,504				4,579,052				(8,346,408	)
		(14,071,537	)			(11,411,179	)			(16,826,936	)			93,958,249
		(2,623,900	)			11,387,594				50,441,101				150,270,054
		(3,857,222	)			(4,188,445	)			(62,688,948	)			(64,658,255	)
		(8,123,421	)			(18,371,427	)			—				—
		—				(379,499	)			—				—
		(11,980,643	)			(22,939,371	)			(62,688,948	)			(64,658,255	)
		(14,604,543	)			(11,551,777	)			(12,247,847	)			85,611,799
		7,810,219				11,842,915				43,503,495				47,814,369
		10,589,249				20,221,724				42,770,187				43,941,692
		(24,229,945	)			(26,292,570	)			(110,019,309	)			(121,634,739	)
		(5,830,477	)			5,772,069				(23,745,627	)			(29,878,678	)
		(20,435,020	)			(5,779,708	)			(35,993,474	)			55,733,121
		230,123,277				235,902,985				1,624,265,760				1,568,532,639
	$	209,688,257			$	230,123,277			$	1,588,272,286			$	1,624,265,760
	$	—			$	24			$	62,821			$	62,784
		410,432				592,677				3,667,801				4,057,975
		600,638				1,070,499				3,606,297				3,720,994
		(1,284,679	)			(1,295,036	)			(9,286,454	)			(10,321,944	)
		(273,609	)			368,140				(2,012,356	)			(2,542,975	)

The accompanying Notes are an integral part of these financial statements.

77

Statements of Changes in Net Assets	Elfun Income Fund						Elfun Government Money Market Fund
	YEAR ENDED DECEMBER 31, 2015			YEAR ENDED DECEMBER 31, 2014			YEAR ENDED DECEMBER 31, 2015			YEAR ENDED DECEMBER 31, 2014
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	8,245,987		$	7,960,569		$	—		$	—
Net realized gain (loss) on investments, futures and swap contracts		(184,360	)		1,332,147			533			1,213
Net increase (decrease) in unrealized appreciation/depreciation on investments, futures and swap contracts		(7,179,358	)		8,371,037			—			—
Net increase (decrease) from operations		882,269			17,663,753			533			1,213
Distributions to shareholders from:
Net investment income		(8,344,196	)		(7,994,297	)		(104,346	)		(62,739	)
Net realized gains		(558,783	)		(58,810	)		—			—
Total distributions		(8,902,979	)		(8,053,107	)		(104,346	)		(62,739	)
Increase (decrease) in assets from operations and distributions		(8,020,710	)		9,610,646			(103,813	)		(61,526	)
Share transactions:
Proceeds from sale of shares		12,735,564			12,278,351			51,231,809			62,655,321
Value of distributions reinvested		6,651,913			5,997,828			94,069			56,986
Cost of shares redeemed		(34,250,663	)		(35,124,433	)		(61,401,374	)		(89,963,152	)
Net increase (decrease) from share transactions		(14,863,186	)		(16,848,254	)		(10,075,496	)		(27,250,845	)
Total increase (decrease) in net assets		(22,883,896	)		(7,237,608	)		(10,179,309	)		(27,312,371	)
NET ASSETS
Beginning of year		312,756,334			319,993,942			139,218,077			166,530,448
End of year	$	289,872,438		$	312,756,334		$	129,038,768		$	139,218,077
Undistributed (distributions in excess of) net investment income, end of year	$	359,740		$	331,472		$	(8,222	)	$	—
CHANGES IN FUND SHARES
Shares sold		1,106,849			1,071,105			51,126,809			62,592,321
Shares issued for distributions reinvested		579,525			522,120			94,069			56,986
Shares redeemed		(2,981,124	)		(3,064,658	)		(61,401,374	)		(89,963,152	)
Net decrease in fund shares		(1,294,750	)		(1,471,433	)		(10,180,496	)		(27,313,845	)

The accompanying Notes are an integral part of these financial statements.

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1. Organization of the Funds

The Elfun Funds (each a “Fund” and collectively the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. The Funds operate as Employees’ Securities Companies (as defined in the 1940 Act) and as such are exempt from certain provisions of the 1940 Act. Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies.

GE Asset Management Incorporated (“GEAM”), the Funds’ investment adviser, is a wholly owned subsidiary of General Electric Company.

2. Summary of Significant Accounting Policies

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.

Subsequent events after the balance sheet date through the date the financial statements were issued have been evaluated in the preparation of the financial statements. There are no items to report.

The following summarizes the significant accounting policies of the Funds:

Securities Valuation and Transactions  All investments in securities are recorded at their estimated fair value, as described in Note 3.

Securities 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.

Repurchase Agreements  Some of the Funds engage in repurchase agreement transactions with respect to instruments that are consistent with the Fund’s

investment objectives or policies. 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% for domestic securities and 105% for international securities 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.

At December 31, 2015, the Elfun Government Money Market Fund had investments in repurchase agreements with a gross value of $20,133,000, which is included as part of repurchase agreements on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

Foreign Currency  Accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a 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.

All assets and liabilities of the Funds initially expressed in foreign currency values will be converted into U.S. dollars at the WM/Reuters exchange rate computed at 11:00 a.m., Eastern time.

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 the market prices of securities during the year. Such fluctuations are included in the 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 or paid, and gains or losses between the trade and settlement date on purchases and sales of foreign securities. Net unrealized foreign exchange gains and losses arising from changes in the value of other

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assets and liabilities (including foreign currencies and open foreign currency contracts) as a result of changes in foreign exchange rates are included as increases or decreases in unrealized appreciation/depreciation on foreign currency related transactions.

Derivatives  The Funds are subject to equity price risk, interest rate risk, credit risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. Certain Funds entered into derivative transactions (such as options, futures, options on future, interest rate futures, interest rate swaps and credit default swaps) to gain or hedge exposure to certain types of securities as an alternative to investing directly in or selling such securities, or to manage: yield, interest rate exposure (also known as duration), exposure to credit quality, and to gain exposure to certain market segments.

Futures Contracts  A futures contract is an agreement to buy or sell a specific amount of a commodity, financial instrument, currency or index at a particular price and future date. Certain Funds may invest in interest rate, financial and stock or bond index futures contracts subject to certain limitations. During the year ended December 31, 2015, the Elfun International Equity Fund entered into stock index futures contracts for the purpose of gaining market exposure and investing residual cash positions. The Elfun Diversified Fund entered into futures contracts on various stock indices, bonds and notes for the purposes of gaining market exposure, investing residual cash positions and managing duration of fixed income investments. The Elfun Tax-Exempt Income Fund and Elfun Income Fund invested in futures contracts on bonds and notes for to manage duration of fixed income securities. Buying futures tends to increase a Fund’s exposure to the underlying instrument while selling futures tends to decrease a Fund’s exposure to the underlying instrument, or hedge other Fund investments. With futures contracts, there is minimal counterparty credit risk to a Fund since futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all traded futures, guarantees the futures against default. A Fund’s risks in using these contracts include changes in the value of the underlying instruments, non-performance of the counterparties under the contracts’ terms and changes in the liquidity of the secondary market for the contracts. Futures

contracts are valued at the settlement price established each day by the board of trade or exchange on which they principally trade.

Upon entering into a financial futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount, known as initial margin deposit. Subsequent payments, known as variation margin, are made or received by a Fund each day, depending on the daily fluctuation in the fair value of the underlying security. A Fund records an unrealized gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may incur a loss. A Fund recognize a realized gain or loss on the expiration or closing of a futures contract.

When-Issued Securities and Forward Commitments  The Elfun Income Fund and Elfun Diversified Fund may purchase or sell securities on a when-issued or forward commitment basis. These transactions are arrangements in which a Fund purchases and sells securities with payment and delivery scheduled a month or more after entering into the transaction. The price of the underlying securities and the date when these securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the commitments. In connection with such purchases, a Fund maintains cash or liquid assets in an amount equal to the purchase commitments for such underlying securities until settlement date and for sales commitments a Fund maintains equivalent deliverable securities as “cover” for the transaction. Unsettled commitments are valued at the current market value of the underlying security. Daily fluctuations in the value of such commitments are recorded as unrealized gains or losses. The Funds will not enter into such commitments for the purpose of investment leverage.

Credit Default Swaps  During the year ended December 31, 2015, the Elfun Diversified Fund and the Elfun Income Fund engaged in credit default swaps to manage credit risk. When a Fund is the buyer in a credit default swap contract, a Fund is entitled to receive the par (or other agreed upon) value (full notional value) of a referenced debt obligation (or basket of debt obligations)

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from the counterparty (or central clearing party (“CCP”) in the case of a centrally cleared swap) to the contract if a credit event by a third party, such as a U.S. or foreign corporate issuer or sovereign issuer, on the debt obligation occurs. In return, a Fund pays the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, a Fund loses its investment and recovers nothing. However, if a credit event occurs, a Fund receives full notional value for a referenced debt obligation that may have little or no value. When a Fund is the seller of a credit default swap, it receives a fixed rate of income throughout the term of the contract, provided there is no credit event. If a credit event occurs, a Fund is obligated to pay the notional amount of the swap and in certain instances take delivery of securities of the reference entity upon the occurrence of a credit event, as defined under the terms of that particular swap agreement. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring, obligation acceleration and repudiation/moratorium. If a Fund is a seller of protection and a credit event occurs, the maximum potential amount of future payments that a Fund could be required to make would be an amount equal to the notional amount of the agreement. This potential amount would be partially offset by any recovery value of the respective referenced obligation, or net amount received from the settlement of a buy protection credit default swap agreement entered into by a Fund for the same referenced obligation. As the seller, a Fund may create economic leverage to its portfolio because, in addition to its total net assets, a Fund is subject to investment exposure on the notional amount of the swap. The interest fee paid or received on the swap, which is based on a specified interest rate on a fixed notional amount, is accrued daily as a component of unrealized appreciation (depreciation) and is recorded as realized gain upon receipt or realized loss upon payment. A Fund also records an increase or decrease to unrealized appreciation (depreciation) in an amount equal to the daily valuation. For centrally cleared swaps, the daily change in valuation is recorded as a receivable or payable for variation margin and settled in cash with the CCP daily. All upfront payments, if any, are amortized over the life of the swap as realized gains or losses. Those upfront payments that are paid or received, typically for non-centrally cleared swaps, are recorded as other assets or other liabilities, respectively, net of amortization.

For financial reporting purposes, unamortized upfront payments, if any, are netted with unrealized appreciation or depreciation on swaps to determine the market value of swaps. A Fund segregates assets in the form of cash or liquid securities in an amount equal to the notional amount of the credit default swaps of which it is the seller. A Fund segregates assets in the form of cash or liquid securities in an amount equal to any unrealized depreciation of the credit default swaps of which it is the buyer, marked to market on a daily basis. Credit default swaps involve greater risks than if a Fund had invested in the referenced debt obligation directly. If a Fund is a buyer of a credit default swap and no credit event occurs, a Fund will not earn any return on its investment. If a Fund is a seller of a credit default swap, a Fund’s risk of loss may be the entire notional amount of the swap. Swaps may also subject a Fund to the risk that the counterparty to the transaction may not fulfill its obligation. In the case of centrally cleared swaps, counterparty risk is minimal due to protections provided by the CCP.

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 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 a Fund’s financial statements. Such amounts appear under the caption Forward Foreign Currency Contracts in the Schedules of Investments. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (or liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains or losses on foreign currency related transactions. A Fund’s risks in using these contracts include changes in the value of foreign currency or the possibility that the counterparties do not perform under the contracts’ terms. When a Fund enters into a forward foreign currency exchange contract, it is required to segregate cash or liquid securities with its custodian in an amount equal to the value of a Fund’s total assets committed to the consummation of the forward contract. If the value of the segregated securities declines, additional cash or securities are segregated so

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that the value of the account will equal the amount of a Fund’s commitment with respect to the contract.

Investments in Foreign Markets  Investments in foreign markets involve special risks and considerations not typically associated with investing in the United States. These risks include revaluation of currencies, high rates of inflation, restrictions on repatriation of 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.

A Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as income and/or capital gains are earned.

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 the ex-dividend date as such information becomes available. Withholding taxes on foreign dividends, if any, have been provided for in accordance with a Fund’s understanding of the applicable country’s tax rules and rates.

Interest income is recorded on the accrual basis. Accretion of discounts and amortization of premiums on taxable bonds are to the call or maturity date, whichever is shorter, using the effective yield method.

Expenses  Fund specific expenses are charged to the Fund that incurs such expenses. Such expenses may include custodial fees, legal and accounting fees, printing costs and registration fees. Expenses that are not fund specific are allocated pro rata across the Funds. Expenses of the Fund are generally paid directly by the Fund; however, expenses may be paid by GEAM and reimbursed by the Fund.

Federal Income Taxes  The Funds intend to comply with all sections of the Internal Revenue Code of 1986, as amended (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.

3. Security Valuation and Transactions

The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a framework for measuring fair value and providing related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. It also establishes a three-level valuation hierarchy based upon observable and non-observable inputs.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices for identical investments in active markets.

Level 2 – Quoted prices for similar investments in active markets; quoted prices for identical or similar investments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 – Significant inputs to the valuation model are unobservable.

Policies and procedures are maintained to value investments using the best and most relevant data available. In addition, pricing vendors are utilized to assist in valuing investments. GEAM performs periodic reviews of the methodologies used by independent pricing services including price validation of individual securities.

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Fair Value Measurement  The following section describes the valuation methodologies the Funds use to measure different financial investments at fair value.

A Fund’s portfolio securities are valued generally on the basis of market quotations. Equity securities generally are valued at the last reported sale price on the primary market in which they are traded. Portfolio securities listed on NASDAQ are valued using the NASDAQ Official Closing Price, Level 1 securities primarily include publicly-traded equity securities, which may not necessarily represent the last sales price. If no sales occurred on the exchange or NASDAQ that day, the portfolio security generally is valued using the last reported bid price. In those circumstances the Fund typically classifies the investment securities in Level 2.

Debt securities (other than short-term securities described below) generally are valued at an evaluated bid price as reported by independent pricing services. The pricing services use various pricing models for each asset class. The inputs and assumptions to the model of the pricing services are derived from market observable sources, which may include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing service may use other available information such as benchmark curves, benchmarking of similar securities, sector groupings, and matrix pricing, as applicable. Thus, certain securities may not be priced using market quotations, but rather determined from market observable information. These investments are included in Level 2 and are primarily comprised of corporate fixed income, government, mortgage and asset-backed securities. In the absence of a reliable bid price from such a pricing service, debt securities may be valued based on broker or dealer supplied valuations or quotations. In these infrequent circumstances, pricing services may provide the Funds with valuations that are based on significant unobservable inputs, and in those circumstances the investment securities are classified as Level 3.

A Fund may use non-binding broker or dealer quotes for valuation when there is limited or no relevant market activity for a specific investment or for other investments that share similar characteristics and a price is not provided by a pricing service or is deemed not to be reliable. The Funds have not adjusted the prices obtained. Investment securities priced using non-binding broker or dealer quotes are included in Level 3.

Short-term securities of sufficient credit quality with remaining maturities of sixty days or less at the time of purchase are typically valued on the basis of amortized cost which approximates fair value and these are included in Level 2. If it is determined that amortized cost does not approximate fair value, securities may be valued based on dealer supplied valuations or quotations. In these infrequent circumstances, pricing services may provide the Fund with valuations that are based on significant unobservable inputs, and in those circumstances the investment securities are classified in Level 3.

Investments in registered investment companies are valued at the published daily net asset value (“NAV”) and classified in Level 1.

If prices are not readily available for a portfolio security, or if it is believed that a price for a portfolio security does not represent its fair value, the security may be valued using procedures approved by the Funds’ Board of Trustees that are designed to establish its “fair” value. These securities are typically classified in Level 3. Those procedures require that the fair value of a security be established by a valuation committee of GEAM. The valuation committee follows different protocols for different types of investments and circumstances. The fair value procedures may be used to value any investment of any Fund in the appropriate circumstances.

Foreign securities may be valued with the assistance of an independent fair value pricing service in circumstances where it is believed that they have been or would be materially affected by events occurring after the close of the portfolio security’s primary market and before the close of regular trading on the New York Stock Exchange (“NYSE”). In these circumstances, the Funds classify the investment securities in Level 2. This independent fair value pricing service uses a proprietary model to identify affected securities, taking into consideration various factors, and the fair value of such securities may be something other than the last available quotation or other market price.

All assets and liabilities of the Funds initially expressed in foreign currency values will be converted into U.S. dollars at the WM/Reuters exchange rate computed at 11:00 a.m. Eastern time.

Fair value determinations generally are used for securities whose value is affected by a significant event

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that will materially affect the value of a security and which occurs subsequent to the time of the close of the principal market on which such security trades but prior to the calculation of a Fund’s NAV.

The value established for such a portfolio security valued other than by use of a market quotation (as described above) may be different than what would be produced through the use of market quotations or another methodology. Portfolio securities that are valued using techniques other than market quotations, including “fair valued” securities, may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. In addition, there is no assurance that a Fund could sell a portfolio security for the value established for it at any time and it is possible that a Fund would incur a loss because a portfolio security is sold at a discount to its established value.

Other financial investments are derivative instruments that are not reflected in total investments, such as futures, forwards, swaps, and written options contracts, which are valued based on fair value as discussed above.

The Funds use closing prices for derivatives included in Level 1, which are traded either on exchanges or liquid over-the counter markets. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts. Derivative assets and liabilities included in Level 3 primarily represent interest rate products that contain embedded optionality or prepayment features.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following tables present each Fund’s investments measured at fair value on a recurring basis at December 31, 2015:

Fund	Investments	Level 1		Level 2		Level 3		Total
Elfun International Equity Fund	Investments in Securities†
	Common Stock	$	223,947,003	$	—	$	—	$	223,947,003
	Short-Term Investments		9,904,614		—		—		9,904,614
	Total Investments in Securities	$	233,851,617	$	—	$	—	$	233,851,617
	Other Financial Instruments*
	Long Futures Contracts — Unrealized Appreciation	$	55,067	$	—	$	—	$	55,067
Elfun Trusts	Investments in Securities†
	Common Stock	$	2,308,512,370	$	—	$	—	$	2,308,512,370
	Short-Term Investments		50,527,506		—		—		50,527,506
	Total Investments in Securities	$	2,359,039,876	$	—	$	—	$	2,359,039,876
Elfun Diversified Fund	Investments in Securities†
	Domestic Equity	$	65,581,973	$	—	$	—	$	65,581,973
	Foreign Equity		43,430,981		—		—		43,430,981
	U.S. Treasuries		—		10,555,553		—		10,555,553
	Agency Mortgage Backed		—		16,421,253		—		16,421,253
	Agency Collateralized Mortgage Obligations		—		153,079		—		153,079
	Corporate Notes		—		30,359,517		—		30,359,517
	Non-Agency Collateralized Mortgage Obligations		—		6,797,903		—		6,797,903
	Sovereign Bonds		—		807,383		—		807,383
	Municipal Bonds and Notes		—		372,966		—		372,966
	FNMA (TBA)		—		—		2,135		2,135
	Exchange Traded Funds		9,640,400		—		—		9,640,400
	Short-Term Investments		28,561,801		—		—		28,561,801
	Total Investments in Securities	$	147,215,155	$	65,467,654	$	2,135	$	212,684,944

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Fund	Investments	Level 1			Level 2		Level 3		Total
	Other Financial Instruments*
	Credit Default Swap Contracts — Unrealized Appreciation	$	—		$	12,728	$	—	$	12,728
	Long Futures Contracts — Unrealized Appreciation		131,166			—		—		131,166
	Long Futures Contracts — Unrealized Depreciation		(23,401	)		—		—		(23,401	)
	Short Futures Contracts — Unrealized Appreciation		57,119			—		—		57,119
	Short Futures Contracts — Unrealized Depreciation		(58,159	)		—		—		(58,159	)
	Total Other Financial Instruments	$	106,725		$	12,728	$	—	$	119,453
Elfun Tax-Exempt Income Fund	Investments in Securities†
	Municipal Bonds and Notes	$	—		$	1,558,382,012	$	—	$	1,558,382,012
	Short-Term Investments		39,963,873			—		—		39,963,873
	Total Investments in Securities	$	39,963,873		$	1,558,382,012	$	—	$	1,598,345,885
Elfun Income Fund	Investments in Securities†
	U.S. Treasuries	$	—		$	46,093,916	$	—	$	46,093,916
	Agency Mortgage Backed		—			70,646,767		—		70,646,767
	Agency Collateralized Mortgage Obligations		—			798,101		—		798,101
	Asset Backed		—			780,228		—		780,228
	Corporate Notes		—			131,080,864		—		131,080,864
	Non-Agency Collateralized Mortgage Obligations		—			32,539,768		—		32,539,768
	Sovereign Bonds		—			3,149,229		—		3,149,229
	Municipal Bonds and Notes		—			2,070,092		—		2,070,092
	FNMA (TBA)		—			—		8,556		8,556
	Preferred Stock		336,582			—		—		336,582
	Short-Term Investments		14,834,395			—		—		14,834,395
	Total Investments in Securities	$	15,170,977		$	287,158,965	$	8,556	$	302,338,498
	Other Financial Instruments*
	Credit Default Swap Contracts — Unrealized Appreciation	$	—		$	59,998	$	—	$	59,998
	Long Futures Contracts — Unrealized Appreciation		8,510			—		—		8,510
	Long Futures Contracts — Unrealized Depreciation		(72,283	)		—		—		(72,283	)
	Short Futures Contracts — Unrealized Appreciation		230,891			—		—		230,891
	Short Futures Contracts — Unrealized Depreciation		(1,317	)		—		—		(1,317	)
	Total Other Financial Instruments	$	165,801		$	59,998	$	—	$	225,799

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Fund	Investments	Level 1		Level 2		Level 3		Total
Elfun Government Money Market Fund	Investments in Securities†
	U.S. Treasuries	$	—	$	29,122,933	$	—	$	29,122,933
	U.S. Government Agency Obligations		—		81,673,275		—		81,673,275
	Repurchase Agreements		—		20,133,000		—		20,133,000
	Total Investments in Securities	$	—	$	130,929,208	$	—	$	130,929,208

† See Schedules of Investments for Industry Classification.

* Other financial instruments include derivative instruments such as futures contracts and credit default swaps. Amounts shown represent unrealized appreciation (depreciation), at period end.

The Elfun International Equity Fund and the Elfun Diversified Fund utilized the fair value pricing service on December 31, 2014 due to events occurring after the close of foreign local markets and before the close of regular trading on the NYSE, which resulted in certain foreign securities being classified as Level 2 at the beginning of the period that were classified as Level 1 at December 31, 2015. The value of securities that were transferred to Level 2 from Level 1 as a result was $214,575,522 and $37,780,873 for the Elfun International Equity Fund and Elfun Diversified Fund, respectively. There were no other significant transfers between fair value levels. Transfers between fair value levels are considered to occur at the beginning of the period.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2015 is not presented.

4. Derivatives Disclosure

Shown below are the derivative contracts entered into by each Fund, summarized by primary risk exposure as they appear on the Statements of Assets and Liabilities, none of which are accounted for as hedging instruments under FASB ASC No. 815 Derivatives and Hedging (“ASC 815”) as of December 31, 2015.

	Asset Derivatives December 31, 2015				Liability Derivatives December 31, 2015
Derivatives not accounted for as hedging instruments under ASC 815	Location in the Statements of Assets and Liabilities	Fair Value ($)			Location in the Statements of Assets and Liabilities	Fair Value ($)
Elfun International Equity Fund
Equity Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		55,067	*	Liabilities, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		—
Elfun Diversified Fund
Equity Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		128,461	*	Liabilities, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		(58,159	)*
Interest Rate Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		59,824	*	Liabilities, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		(23,401	)*
Credit Risk Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Swap Contracts		12,728	*	Liabilities, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Swap Contracts		—
Elfun Income Fund
Interest Rate Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		239,401	*	Liabilities, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Futures		(73,600	)*
Credit Risk Contracts	Assets, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Swap Contracts		59,998	*	Liabilites, Net Assets — Net Unrealized Appreciation/ (Depreciation) on Swap Contracts		—

* Includes cumulative unrealized appreciation/(depreciation) of futures and credit default swap contracts as reported in the Schedule of Investments and within the components of the net assets section of the Statement of Assets and Liabilities. Only the current day’s variation margin is reported within the Assets and/or Liabilities section on the Statement of Assets and Liabilities.

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Shown below are the effects of derivative instruments on each Fund’s Statements of Operation, summarized by primary risk exposure, none of which are accounted for as hedging instruments under ASC 815.

Derivatives not accounted for as hedging instruments under ASC 815	Location in the Statements of Operations	Total Notional Amount of Futures Contracts Purchased/(Sold) ($)	Realized Gain (Loss) on Derivatives Recognized in Income ($)			Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income ($)
Elfun International Equity Fund
Equity Contracts	Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures	34,121,584/ (31,292,919)		245,720			59,843
Elfun Diversified Fund
Equity Contracts	Realized gain (loss) on Futures, Increase (decrease) in unrealized appreciation/ (depreciation) on Futures	55,971,627/ (58,521,450)		142,512			(107,029	)
Interest Rate Contracts	Realized gain/(loss) on Futures, Increase/(decrease) in unrealized appreciation/ (depreciation) on Futures	250,542,182/ (253,678,697)		143,152			68,672
Credit Risk Contracts	Realized gain/(loss) on Swap Contracts Increase/ (decrease) in unrealized appreciation/(depreciation) on Swap Contracts	—/—		24,652			12,728
Elfun Tax-Exempt Income Fund
Interest Rate Contracts	Realized gain/(loss) on Futures, Increase/(decrease) in unrealized appreciation/ (depreciation) on Futures	81,188,828/ (80,475,585)		(713,594	)		—
Elfun Income Fund
Interest Rate Contracts	Realized gain/(loss) on Futures, Increase/(decrease) in unrealized appreciation/ (depreciation) on Futures	1,109,623,204/ (1,118,788,938)		628,434			196,009
Credit Risk Contracts	Realized gain/(loss) on Swap Contracts Increase/ (decrease) in unrealized appreciation/(depreciation) on Swap Contracts	—/—		120,017			59,998

During the year ended December 31, 2015, the Funds had an average notional value of long and short futures contracts as shown below. The Elfun Diversifed and Elfun Income Fund had average notional values of $1,638,028 and $7,180,789 on credit default swaps, respectively. Please refer to the table following the Schedule of Investments for open futures contracts and open swap contracts at December 31, 2015.

Fund	Long Futures Contracts		Short Futures Contracts
Elfun International Equity Fund	$	2,650,686	$	(1,053,327	)
Elfun Diversified Fund		13,611,792		(10,282,569	)
Elfun Tax-Exempt Income Fund		—		(45,117,188	)
Elfun Income Fund		21,781,084		(34,465,528	)

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5. Line of Credit

The Funds (excluding Elfun Government Money Market Fund) share a revolving credit facility of up to $150 million with a number of their affiliates. The credit facility is with the Funds’ custodian bank, State Street Bank and Trust Company (“State Street”). The revolving credit facility requires the payment of a commitment fee equal to 0.20% (0.125% prior to October 28, 2015) per annum on the daily unused portion of the credit facility, payable quarterly. The portion borne by each Fund generally is borne proportionally based upon net assets. In addition, the Funds had a $100 million uncommitted, unsecured line of credit with State Street which expired effective October 28, 2015. Generally, borrowings under the credit facilities would accrue interest at the higher of the 1-Month LIBOR plus 1.25% and the Overnight Federal Funds Rate plus 1.25% and would be borne by the borrowing Fund. The maximum amount allowed to be borrowed by any one Fund is the lesser of (i) its prospectus limitation or (ii) 20% of its net assets. The credit facilities were not utilized by the Funds during the year ended December 31, 2015.

6. Compensation and Fees paid to Affiliates

During 2015, the Funds incurred expenses for the cost of services rendered by GEAM as investment adviser and administrator.

These expenses are included as advisory and administration fees (“Management Fees”) in the Statements of Operations. The Trustees received no compensation as Trustees for the Elfun Funds.

GEAM may, from time to time, voluntarily subsidize certain expenses of the Elfun Government Money Market Fund (the “Fund”) and, to the extent necessary, reduce its management expense in order to maintain a minimum annualized net yield of 0.00% for the Fund. GEAM may, in its sole and absolute discretion, discontinue any subsidy of Fund expenses or reduction in management expenses

at any time by providing notice to the Trust and by the Board of Trustees.

GEAM may, from time to time, voluntarily subsidize certain expenses of the Elfun Government Money Market Fund (the “Fund”) and, to the extent necessary, reduce its management expense in order to maintain a minimum annualized net yield of 0.00% for the Fund (collectively known as “fee waivers”). GEAM may, in its sole and absolute discretion, discontinue any fee waivers at any time by providing notice to the Fund and its Board of Trustees.

Pursuant to an agreement between GEAM and the Fund, the Fund has agreed to reimburse GEAM for such fee waivers for a period of up to three years from the date of such fee waivers, as long as the Fund’s total operating expense ratio does not exceed 0.60% for the fiscal year in which the reimbursement is made.

Fee waivers subject to potential reimbursement to GEAM by year of expiration are as follows:

Year	Amount ($)
2018		203,890
2017		674,381
2016		1,051,482

As of December 31, 2015, the Fund had not reimbursed any fee waivers previously made by GEAM.

7. Sub-Advisory Fees

Pursuant to an investment sub-advisory agreement with GEAM SSGA Funds Management, Inc. (“SSGA FM”) is the sub-adviser to the Elfun Government Money Market Fund. SSGA FM is responsible for the day-to-day portfolio management of the assets of the Elfun Government Money Market Fund, including the responsibility for making decisions to buy, sell or hold a particular security, under the general supervision of GEAM and the Board. For its services, GEAM pays SSGA FM monthly sub-advisory fees which are calculated as a percentage of the average daily net assets of the Elfun Government Money Market Fund.

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December 31, 2015

8. Investment Transactions

Purchases and Sales of Securities

The cost of purchases and the proceeds from sales of investments, other than short-term securities, for the year ended December 31, 2015, were as follows:

	U.S. Government Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
Elfun International Equity Fund	$	—	$	—	$	59,606,076	$	80,717,961
Elfun Trusts		—		—		257,439,314		366,912,458
Elfun Diversified Fund		174,178,072		182,296,006		73,926,820		79,876,938
Elfun Tax-Exempt Income Fund		—		—		346,113,592		380,395,953
Elfun Income Fund		720,826,293		754,007,232		117,731,516		98,528,293

9. Income Taxes

The Funds are subject to ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for financial accounting and reporting for the effects of income taxes that result from an entity’s activities during the year. ASC 740 also provides guidance regarding how certain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires evaluation of tax positions taken or expected to be taken

in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. There are no adjustments to any Fund’s net assets required under ASC 740. Each Fund’s 2012, 2013, 2014 and 2015 fiscal year tax returns are still open to examination by the Federal and applicable state tax authorities.

At December 31, 2015, information on the tax cost of investments and distributable earnings on a tax basis was as follows:

Fund	Cost of Investment for Tax Purposes		Gross Tax					Net Tax Appreciation/ (Depreciation)					Undistributed					Late-Year Losses
			Appreciation		Depreciation			Investments			Derivatives/ Currency		Income		Accum. Capital Gain/(Loss)
Elfun International Equity Fund	$	230,223,929	$	26,600,840	$	(22,975,907	)	$	3,624,933		$	27,004	$	—	$	(13,166,355	)	$	—
Elfun Trusts		1,419,451,969		965,796,554		(26,208,647	)		939,587,907			—		—		712			—
Elfun Diversified Fund		208,347,208		14,288,683		(9,950,947	)		4,337,736			113,784		33,364		92,580			—
Elfun Tax-Exempt Income Fund		1,486,755,403		114,217,983		(2,627,501	)		111,590,482			—		62,821		(20,624,849	)		—
Elfun Income Fund		306,046,148		2,799,401		(6,507,051	)		(3,707,650	)		225,799		359,740		(40,119	)		(295,128	)
Elfun Government Money Market Fund		130,929,208		—		—			—			—		8,294		—			—

During the year ended December 31, 2015, the Funds utilized prior year capital loss carryovers as follows:

Fund	Amount
Elfun International Equity	$	10,005,376
Elfun Tax-Exempt Income Fund	$	3,645,615

Any qualified late-year loss is deemed to arise on the first day of a Fund’s next tax year (if the Fund elects to defer such loss). Under this regime, generally, a Fund can elect

to defer any post-October capital loss and/or any late-year ordinary loss as defined by the Internal Revenue Code.

The following Funds elected to defer qualified late-year losses for the year ended December 31, 2015 as follows:

Fund	Capital			Ordinary
Elfun Income Fund	$	(295,128	)	$	—

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December 31, 2015

As of December 31, 2015, the following Funds have capital loss carryovers as indicated below. The capital loss carryover is available to offset future realized capital gains to the extent provided in the Internal Revenue Code and regulations thereunder. To the extent that these carryover losses are used to offset future capital gains, it is probable that the gains offset will not be distributed to shareholders.

	Amount
Fund	Short-Term		Long-Term		Expires
Elfun International Equity Fund	$	13,166,355	$	—		12/31/18
Elfun Income Fund		—		40,119		Unlimited
Elfun Tax-Exempt Income Fund		18,068,222		2,556,627		Unlimited

These amounts will be available to offset future taxable capital gains. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

The tax character of distributions paid during the year ended December 31, 2015, were as follows:

Fund	Exempt Income		Ordinary Income		Long-Term Capital Gains		Return of Capital		Total
Elfun International Equity Fund	$	—	$	4,270,754	$	—	$	—	$	4,270,754
Elfun Trusts		—		32,340,902		150,013,277		—		182,354,179
Elfun Diversified Fund		—		4,151,007		7,829,636		—		11,980,643
Elfun Tax-Exempt Income Fund		61,714,924		974,024		—		—		62,688,948
Elfun Income Fund		—		8,902,979		—		—		8,902,979
Elfun Government Money Market Fund		—		104,346		—		—		104,346

The tax character of distributions paid during the year ended December 31, 2014, were as follows:

Fund	Exempt Income		Ordinary Income		Long-Term Capital Gains		Return of Capital		Total
Elfun International Equity Fund	$	—	$	7,173,676	$	—	$	—	$	7,173,676
Elfun Trusts		—		30,164,147		187,085,675		—		217,249,822
Elfun Diversified Fund		—		5,932,099		16,627,773		379,499		22,939,371
Elfun Tax-Exempt Income Fund		63,284,972		1,373,283		—		—		64,658,255
Elfun Income Fund		—		8,053,107		—		—		8,053,107
Elfun Government Money Market Fund		—		62,739		—		—		62,739

Distributions to Shareholders

Elfun Tax-Exempt Income Fund, Elfun Income Fund and Elfun Government Money Market Fund declare net investment income dividends daily and pay them monthly. All other Funds declare and pay dividends from net investment income, if any, annually. All Funds declare and pay net realized capital gains distributions, if any, annually. The character of income and gains to be distributed is determined in accordance with income tax regulations which may differ from GAAP. These differences include (but are not limited to) treatment of realized and unrealized gains (losses) on foreign currency contracts, investments in futures, late year loss deferrals, unused capital losses, distribution re-designations, investments in swaps, distributions from real estate investment trusts (“REITs”) and other equity investments, distributions in excess of earnings, litigation proceeds, corporate actions, mixed straddles, return of capital distribution from securities, and losses deferred due to wash sale transactions. Reclassifications are made to a Fund’s 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 NAV of any of the Funds. The calculation of net investment income per share in the Financial Highlights table excludes these adjustments.

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December 31, 2015

The reclassifications for the year ended December 31, 2015 were as follows:

Fund	Undistributed Net Investment Income			Accumulated Net Realized Gain (Loss)			Paid In Capital
Elfun International Equity Fund	$	209,790		$	(148,475	)	$	(61,315	)
Elfun Trusts		(70,103	)		70,103			—
Elfun Diversified Fund		10,548			(12,176	)		1,628
Elfun Income Fund		126,477			(126,477	)		—
Elfun Government Money Market Fund		96,124			(1,746	)		(94,378	)

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The Unitholders and Board of Trustees

Elfun Funds:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Elfun International Equity Fund, Elfun Trusts, Elfun Diversified Fund, Elfun Tax-Exempt Income Fund, Elfun Income Fund, and Elfun Government Money Market Fund, each a series of Elfun Funds (collectively the “Funds”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Elfun International Equity Fund, Elfun Trusts, Elfun Diversified Fund, Elfun Tax-Exempt Income Fund, Elfun Income Fund, and Elfun Government Money Market Fund as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2016

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For the year ended December 31, 2015

The following Funds intend to make an election under Internal Revenue Code Section 853. The election will allow shareholders to treat their attributable share of foreign taxes paid by the Funds to be paid by them directly. For the fiscal year ended December 31, 2015, the total amount of income received by the Funds from sources within foreign countries and possessions of the United States and the total amount of taxes paid by the Funds follows:

	Total Foreign Source Income			Total Foreign Taxes Paid
Elfun International Equity Fund		$	5,727,962		$	547,279

For the year ended December 31, 2015, the following Funds hereby designate as capital gain dividends the amounts set forth, or the amount ultimately treated as capital gain net income:

Fund	Gross Amount
Elfun Trusts		$	150,013,277
Elfun Diversfied Fund			7,829,636

For the fiscal year ended December 31, 2015, certain dividends paid by the Funds may be subject to a maximum income tax rate of 20% as provided for by the American Taxpayer Relief Act of 2012. The following represent the amounts that may be considered qualified dividend income:

Fund	Qualified Dividend Income
Elfun International Equity Fund		$	4,818,033
Elfun Trusts			35,318,700
Elfun Diversified Fund			2,403,744

For corporate shareholders the following represent the percentages of respective fund distributions that may be eligible for the dividends received deduction:

Fund	Dividends Received Deduction
Elfun Trusts		98.96%
Elfun Diversified Fund		29.51%

For the year ended December 31, 2015, the following Fund hereby designates as exempt-interest dividends the amounts set forth, or the amount ultimately treated as exempt-interest dividends:

Fund	Gross Amount
Elfun Tax-Exempt Income Fund		$	61,714,924

The amounts presented herein may differ from amounts presented elsewhere in the financial statements due to differences between tax and financial accounting principles. Please consult a tax advisor if you have any questions about Federal or State income tax laws or on how to prepare your tax returns. If you have specific questions about your Fund account, please consult your investment representative.

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The Board of Trustees of the Elfun Funds¹ (the “Board”) considered and all those that were present unanimously approved the continuance for an additional year of each of the Funds’ investment advisory agreements with GE Asset Management Incorporated (“GEAM”); and with respect to the Elfun Government Money Market Fund, the continuance of the investment sub-advisory agreement with SSGA Funds Management, Inc. (“SSGA FM”), at a meeting held on December 14, 2015.

In considering whether to approve the Funds’ investment advisory agreements and the Elfun Government Money Market Fund’s investment sub-advisory agreement, the Board members considered and discussed a substantial amount of information and analysis provided by GEAM and SSGA FM. The Board members also considered detailed information regarding performance and expenses of other investment companies, including those with similar investment strategies and sizes, which was prepared by an independent third party provider, Morningstar, Inc. (“Morningstar”). The Board members reviewed the fees charged by GEAM for other mutual funds and investment products other than mutual funds that employ similar investment strategies as the Funds. The Board had the opportunity to ask questions and request additional information in connection with its considerations.

Before approving each Fund’s investment advisory agreement and the Elfun Government Money Market Fund’s sub-advisory agreement, the Board members received and considered memoranda prepared by GEAM personnel that set forth detailed information, including numerous exhibits and other materials related to GEAM’s business and the services it provides to each Fund. Also, in advance of the meeting, the Board members received from SSGA FM a written response to a letter of inquiry prepared by GEAM at the Board’s request, which included substantial exhibits and other materials related to the business of, and services provided by, SSGA FM. The Board members also reviewed materials discussing the legal standards for the consideration of the proposed continuances. The Board members reviewed and discussed the proposed continuance of the agreements with GEAM personnel, including representatives from the legal, compliance and finance departments and senior

members of each relevant investment group (e.g., equity, fixed income), and heard presentations by these representatives. The Board members posed questions to these representatives and engaged in substantive discussions with them concerning the Funds’ operations and each of their investment processes. The Board members took into account that many of them possess multi-year experience as Board members and that all of them possess a great deal of knowledge about GEAM and the Funds in their capacities as senior officers of GEAM. They also took into account their consideration of these types of agreements in recent years. The information was presented in a manner to facilitate comparisons to prior periods and to reflect certain enhancements to GEAM’s infrastructure, systems, research and analytics capabilities and shareholder servicing model. To focus their review, the Board members asked GEAM personnel and SSGA FM, in their oral presentations and/or written materials, to highlight material differences from the information presented in recent years.

In reaching their determinations relating to the continuance of the Funds’ investment advisory agreements and the Elfun Government Money Market Fund’s investment sub-advisory agreement, the Board members considered all factors that they deemed relevant, including the factors discussed below. In their deliberations, the Board members did not identify any particular information that was all-important or controlling, and each Board member may have attributed different weights to the various factors. The Board members evaluated this information, and all other information available to them, for each Fund separately, and their determinations were made separately in respect of each Fund. In particular, the Board members focused on the following with respect to each Fund:

The Nature, Extent And Quality Of Services Provided

The Board members reviewed the services provided by GEAM and concurred that GEAM provides high quality advisory and administrative services to the Funds. The Board members also reviewed the services provided to the Elfun Government Money Market Fund by SSGA FM, taking into account their past experiences with SSGA FM. In connection with their consideration of GEAM’s services, the Board members focused on the favorable attributes of GEAM, including (i) an investment philosophy oriented toward long-term performance; (ii) effective processes

¹ The Elfun Funds include the Elfun Trusts, Elfun International Equity Fund, Elfun Diversified Fund, Elfun Tax-Exempt Income Fund, Elfun Income Fund, Elfun Government Money Market Fund (each, a “Fund” and collectively, the “Funds”).

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used for selecting investments and brokers; with respect to the Elfun Government Money Market Fund, effective processes used for overseeing sub-advisers; (iii) effective processes used for providing Fund administration, including controllership and compliance functions, the optimization of its Fund administration platform and the continued oversight of the performance of other companies that provide services to the Funds; (iv) highly skilled professionals, including analysts, research professionals, traders and portfolio managers with a depth of experience relevant to the Funds; (v) access to significant and enhanced technological resources from which the Funds may benefit, including a platform that increases the quality and efficiency of analytics and research; and (vi) a favorable history and reputation. The Board members noted that each Fund represents only a small amount of the overall assets managed by GEAM, but benefits from a full array of services and resources provided by GEAM. In particular, the Board members discussed that the Funds benefit from a large staff of research analysts employed by GEAM.

In connection with their consideration of the services provided to the Elfun Government Money Market Fund by SSGA FM, the Board members focused on SSGA FM’s favorable attributes, including its substantial experience managing funds of this type, investment philosophy and discipline, experienced investment and trading personnel, systems and other resources, and favorable history and reputation.

In light of the foregoing, the Board members concluded that the services provided by GEAM and SSGA FM continue to be satisfactory.

Investment Performance Of The Funds And The Sub-Adviser

The Board members considered the investment performance of the Funds for various periods. The Board members reviewed detailed comparisons of the performance of the Funds with the relevant securities indices and peer and category groupings of mutual funds prepared by Morningstar with respect to various periods. The Board members also engaged in discussions with GEAM personnel regarding the investment process and performance results for each Fund. These discussions focused on each Fund’s investment objective, the number and experience of portfolio management and supporting research personnel, the investment style and approach

employed, the likely market cycles for the investment style and, in some instances, relative underperformance of certain Funds in certain periods. The Board members discussed GEAM’s investment approach with respect to each of the Funds, and the reasons for certain Funds’ relative underperformance.

The Board members concluded that the Funds’ performance was acceptable overall, taking into consideration the factors discussed above.

Cost Of The Services Provided To The Funds

The Board members considered the cost of the services provided by GEAM, noting that, pursuant to each investment advisory agreement, GEAM is reimbursed for its reasonable costs incurred in providing the services contemplated by those agreements and is not paid a management fee. The Board also noted that GE Investment Distributors, Inc. (“GEID”), a subsidiary of GEAM, is reimbursed for its reasonable costs incurred in providing services specified in its agreement with the Funds as unitholder servicing agent and is not paid a unitholder servicing fee. The Board members considered that the charges resulting from this arrangement involve all of the expenses incurred by GEAM and GEID with respect to the management and unitholder operations of the Funds, including, without limitation, indirect allocable overhead costs and the direct and indirect costs of GEAM and GEID personnel providing investment management and other services to the Funds. The Board members noted and discussed the additional services provided by GEAM to the Funds compared to other investment products managed by GEAM and the charges that result from those services. The Board members also noted that none of the charges resulting from the Funds’ arrangements with GEAM and GEID may include any element of profit.

The Board members also noted that the Board had in prior years reviewed with GEAM personnel the underlying assumptions and methods of cost allocation used by GEAM in allocating its costs and those of the other Fund service providers, including GEID, to the Funds, and considered the new cost allocation method that was implemented for the Funds in the second half of 2015. The Board members also discussed with GEAM personnel the basis for their belief that the methods of allocation used by GEAM continue to be reasonable for each area of GEAM’s business.

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The Board members considered the fees paid to SSGA FM by the Elfun Government Money Market Fund, and the cost of the services provided by SSGA FM to the Elfun Government Money Market Fund. The Board members considered the information they had requested from SSGA FM concerning its profitability. Information was presented regarding SSGA FM’s financial condition for various past periods. The Board members determined that SSGA FM should be entitled to earn a reasonable level of profit for the services it provides to the Elfun Government Money Market Fund.

Based on their review, the Board members concluded that they were satisfied that the assumptions and methods used in cost allocation and the level of expenses incurred by the Funds, as well as the level of profitability to SSGA FM from its relationship with the Elfun Government Money Market Fund, were not unreasonable or excessive.

The Extent To Which Economies Of Scale Would Be Realized For The Benefit Of Fund Shareholders As The Funds Grow

Although the Funds did not experience an increase in assets over the past year, the Board members considered the extent to which economies of scale would be realized for the benefit of Fund investors as the Funds grow. The Board noted that the Funds continue to enjoy fee and expense levels within or below the group of lowest fee and expense funds in their respective peer group comparisons. The Board also noted that, with respect to the Elfun Government Money Market Fund, GEAM voluntarily undertook to reduce its management fee or subsidize certain expenses of the Fund to the extent necessary to maintain a minimum annualized net yield of 0.00%.

The Board members recognized the significant benefits to the Funds resulting from their arrangement with GEAM, which causes them to bear only the reasonable costs incurred by GEAM and GEID, without any element of profit, for the substantial services they provide to the Funds. The Board members also recognized the benefits to the Funds of being able to leverage a favorable cost structure achieved with respect to the Funds’ other operating expenses as a result of GEAM’s large overall base of assets under management and its vendor management practices.

Comparison Of Services To Be Rendered And Costs To Be Incurred

The Board members discussed the services provided to the Funds by GEAM and to the Elfun Government Money Market Fund by SSGA FM, and the costs incurred by the Funds for those services, including the services required of GEAM to oversee the services provided by SSGA FM, the sub-adviser to the Elfun Government Money Market Fund. The Board members reviewed information concerning the Funds’ expense ratios, and comparative information with respect to peer groupings of mutual funds prepared by Morningstar. They discussed that, in all cases, the Funds enjoy expense levels within or below the group of lowest cost funds in each peer group comparison. In connection with the Elfun Government Money Market Fund, the Board members reviewed comparative mutual fund and/or other account fee information provided by SSGA FM. In light of this information, the Board members determined that the level of expenses incurred and, with respect to the Elfun Government Money Market Fund, the sub-advisory fees paid to SSGA GM, considered in relation to the services provided to the Funds, supported the Board’s approval of the investment advisory and sub-advisory agreements.

Fall-Out Benefits

The Board members considered other actual and potential financial benefits that GEAM and SSGA FM may derive from their relationship with the Funds, including, where applicable, soft dollar commission benefits generated through Fund portfolio transactions. The Board members noted, however, that the Funds benefit from the vast array of resources available through GEAM, and that each Fund represents only a small amount of the overall assets managed by GEAM.

Conclusion

No single factor was determinative to the Board’s decision. Based on their discussion and such other matters as were deemed relevant, the Board members concluded that the proposed level of cost reimbursement to GEAM and projected total expense ratios for the Funds are reasonable in relation to the services provided. In view of these facts, the Board members concluded that the renewal of each investment advisory agreement and the sub-advisory agreement with SSGA FM was in the best interests of the Funds.

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Matters Considered by the Board in Approving a Sub-Advisory Agreement with SSgA FM

At a Board meeting held on June 9, 2014 (the “Board Meeting”), members of the Board who were present at the Board Meeting considered and unanimously approved the Proposed Sub-Advisory Agreement with SSgA Funds Management, Inc. (“SSgA FM”). In advance of the Board Meeting, the Board received materials from both GE Asset Management Incorporated (“GEAM”) and SSgA FM, and had the opportunity to ask questions and request additional information in connection with its consideration. The materials detailed, among other things, information about SSgA FM and its professional staff, SSgA FM’s historical performance in managing money market funds for its other clients, and information detailing SSgA FM’s investment experience and expertise in managing money market funds and in servicing institutional clients.

During a series of meetings prior to the Board Meeting, representatives of GEAM had explained and discussed with the Board the specific reasons why GEAM was recommending SSgA FM and responded to questions raised by the Board. The Board members posed questions to these representatives and engaged in substantive discussions.

In approving the Proposed Sub-Advisory Agreement with SSgA FM, the Board members considered those factors it deemed relevant, including the nature, quality and extent of services expected to be provided by SSgA FM. In its deliberations, the Board did not identify any single factor that was dispositive and each Board member may have attributed different weights to the various factors. The Board members evaluated this information and all other information made available to them by GEAM and SSgA FM, as well as the presentations and discussions that occurred at the Board Meeting.

The material factors and conclusions that formed the basis for the Board’s determinations to approve the Proposed Sub-Advisory Agreement with SSgA FM are as discussed below.

The Nature, Extent and Quality of Services Expected to be Provided.

The Board members reviewed the services expected to be provided to the Elfun Government Money Market Fund (the “Money Market Fund”) by SSgA FM. The Board

considered SSgA FM’s favorable attributes, including its substantial experience managing funds of this type, investment philosophy and discipline, experienced investment and trading personnel, systems and other resources, and favorable history and reputation.

In light of the foregoing, the Board concluded that the services expected to be provided by SSgA FM would be satisfactory and would have the potential to benefit the Money Market Fund.

Investment Performance of SSgA FM.

The Board members considered the investment performance of SSgA FM for various periods focusing on SSgA FM’s investment performance with respect to registered investment companies that have an investment objective similar to that of the Money Market Fund. The Board members reviewed detailed information provided by GEAM management and SSgA FM comparing SSgA FM’s performance to that of similarly managed accounts over these periods. The Board also engaged in detailed discussions with GEAM about SSgA FM’s investment processes, focusing on the number and experience of portfolio management and supporting research personnel and SSgA FM’s investment style and approach employed. The Board discussed the extent to which the expected investment style and approach would be consistent with GEAM’s articulated long-term approach and overall investment philosophy.

Taking these factors into consideration, the Board concluded the investment performance of SSgA FM to be satisfactory.

Cost of the Services to be Provided to the Fund.

The Board members considered the proposed fees that would be paid to SSgA FM by the Money Market Fund and the cost of the services that would be provided by SSgA FM to the Money Market Fund. The Board members also reviewed actual and pro forma information concerning the fees and expenses for the Money Market Fund if SSgA FM were to be retained as a sub-adviser. The Board considered that the proposed fees to be paid to SSgA FM by the Money Market Fund had been negotiated at arm’s-length, and that GEAM had used its influence with respect to the total assets it proposes to be managed by SSgA FM to obtain what it regards as a favorable and highly competitive fee arrangement. Given the arm’s-length nature of the negotiations, the Board did not

97

examine the specific levels of profitability for SSgA FM with respect to the Money Market Fund at this time.

The Extent to Which Economies of Scale Would be Realized as the Fund Grows and Whether Fee Levels Would Reflect Such Economies of Scale.

The Board members considered and noted the limited economies of scale that unitholders would realize as the Money Market Fund grows and recognized that various economies of scale are already reflected in the very competitive sub-advisory fee rate for SSgA FM given the existing scale of the management of similar assets.

Comparison of Services to be Rendered and Fees to be Paid.

The Board discussed the services expected to be provided to the Money Market Fund by SSgA FM, and SSgA FM’s proposed fees to be charged to the Money Market Fund for those services. The Board members reviewed information regarding the proposed sub-advisory fees.

The Board concluded that based on this information, the proposed sub-advisory fees would be reasonable in relation to the services expected to be provided to the Money Market Fund.

Fall-Out Benefits.

The Board considered that there might be financial benefits that SSgA FM could derive from its relationship with GEAM and the Money Market Fund. The Board did not view this consideration as having a material effect on its overall view of the reasonableness of the proposed fees for the Money Market Fund.

Conclusion

No single factor was determinative to the Board’s decision. Based on their discussion and such other matters as were deemed relevant, the Board members concluded that the approval of the Proposed Sub-Advisory Agreement with SSgA FM was in the best interests of the Money Market Fund and its unitholders.

98

Information about Trustees and Executive Officers:

The business and affairs of the Funds are managed under the direction of the Funds’ Board of Trustees. Information pertaining to the Trustees and officers of the Funds is set forth below.

Interested Trustees and Executive Officers

Dmitri Stockton

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  51

Position(s) Held with Fund  Chairman of the Board and President

Term of Office and Length of Time Served  Until successor is elected and qualified – 4 years

Principal Occupation(s) During Past 5 Years  President and Chief Executive Officer of GEAM since May 2011; President and Chief Executive Officer of GE Capital’s Global Banking unit from January 2009 to April 2011; President and CEO of GE Money’s Central and Eastern European Banking Group from January 2005 to December 2008.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Director of Synchrony Financial since February 2014; Director of GEAM since May 2011; Member of the Board of GE Foundation since November 2009; Member of the Executive Advisory Council at North Carolina A&T State University School of Business and Economics since March 2011; Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since May 2011 and Member of the National Board of Directors of A Better Chance since January 2012.

George A. Bicher

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  57

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 4 years

Principal Occupation(s) During Past 5 Years  Chief Investment Officer – Emerging Markets Equities since February 2014; Chief Risk Officer of GEAM from March 2011 to February 2014; Senior Vice President and Portfolio Manager of GEAM from 2009 to 2011; Director of U.S. Equity Research and Portfolio Manager of GEAM from 2006 to 2009; U.S. equity research analyst of GEAM from 2002 to 2006.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust and Director of GEAM since March 2011.

JoonWon Choe

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  46

Position(s) Held with Fund  Assistant Secretary

Term of Office and Length of Time Served  Until successor is elected and qualified – 5 years

Principal Occupation(s) During Past 5 Years  Senior Vice President and Deputy General Counsel of GEAM since March 2011; Vice President and Secretary of GE Institutional Funds and GE Investments Funds, Inc. since September 2010; Vice President and Assistant Secretary of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since September 2010; Senior Vice President and Associate General Counsel of GEAM from June 2010 to March 2011; Vice President and Associate General Counsel of GEAM from November 2005 to June 2010; and Vice President and Secretary of GE Funds from September 2010 to February 2011.

Number of Portfolios in Fund Complex Overseen by Officer  N/A

Other Directorships Held by Officer  N/A

Paul M. Colonna

Address  c/o GEAM, 1600 Summer St. Stamford, CT 06905

Age  47

Position Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 8 years

Principal Occupation(s) During Past 5 Years  President and Chief Investment Officer – Public Investments of GEAM since March 2012; President and Chief Investment Officer – Fixed Income Investments at GEAM from March 2007 to March 2012; Executive Vice President of GEAM from February 2007 to March 2007; Senior Vice President – Total Return Management of GEAM from March 2005 to March 2007.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since February 2007; Director of GEAM since March 2007; and Director of GE Asset Management Limited since December 2007.

Gregory B. Hartch

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  46

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 4 years

Principal Occupation(s) During Past 5 Years  Chief Risk Officer of GEAM since February 2014; Executive Vice President and Strategy and Business Development Leader of GEAM from December 2011 to February 2014; Senior Vice President – Tactical Asset Allocation from 2010 to December 2011; Managing Director – International Real Estate from 2007 to 2010; and Director of Fixed Income Research from 2004 to 2007.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since January 2012.

99

Arthur A. Jensen

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  49

Position(s) Held with Fund  Treasurer

Term of Office and Length of Time Served  Until successor is elected and qualified – 4 years

Principal Occupation(s) During Past 5 Years  Treasurer of GE Institutional Funds, GE Investments Funds, Inc. and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since June 2011; Mutual Funds Controller of GEAM since April 2011; Senior Vice President at Citigroup from 2008 to 2010; and Vice President at JPMorgan from 2005 to 2008.

Number of Portfolios in Fund Complex Overseen by Officer  N/A

Other Directorships Held by Officer  N/A

Jeanne M. La Porta

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  50

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 1 year

Principal Occupation(s) During Past 5 Years  Senior Vice President and Commercial Operations Leader at GEAM since March 2014; President of GE Institutional Funds and GE Investments Funds, Inc. since April 2014; President and Trustee of GEAM’s UCITs Funds since March 2014; Senior Vice President and Commercial Administrative Officer at GEAM from April 2010 to March 2014; Vice President of GE Investments Funds, Inc. and GE Institutional Funds since July 2003; Vice President of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and Elfun Funds since October 2003; Secretary of GE Funds from July 2007 to September 2010 and Vice President from July 2007 to February 2011; Senior Vice President and Deputy General Counsel of GEAM from October 2007 to April 2010; Vice President and Assistant Secretary of GE Funds from September 2003 to July 2007 and Assistant Secretary of Elfun Funds and GE Retirement Savings Plan Funds from July 2003 to June 2010; and Vice President and Associate General Counsel – Marketing and Client Services (formerly Asset Management Services) of GEAM from May 1997 to October 2007.

Number of Portfolios in Fund Complex Overseen by Trustee  24

Other Directorships Held by Trustee  Director of GE Investments Funds, Inc. since 2014; Trustee of GE Institutional Funds since 2014; Trustee of GE Retirement Savings Funds and General Electric Pension Trust since 2014; Director of GE Investment Distributors, Inc. since June 2011.

Ralph R. Layman

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  59

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 24 years

Principal Occupation(s) During Past 5 Years  Executive Vice President and Chief Investment Officer – Emeritus of GEAM since March 2012; President and Chief Investment Officer – Public Equity Investments of GEAM from June 2009 to March 2012; President – International Equities from March 2007 to July 2009; Executive Vice President – International Equity Investments of GEAM from 1992 to March 2007 and Senior Vice President International Investments from 1991 to 1992.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since 1993; Director of GE Asset Management Limited since September 2005 and Director of GEAM since July 2009.

Matthew J. Simpson

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  54

Position(s) Held with Fund  Trustee and Secretary

Term of Office and Length of Time Served  8 years

Principal Occupation(s) During Past 5 Years  Executive Vice President, General Counsel and Secretary of GEAM since July 2007; Secretary of Elfun Funds and GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) since July 2007; Senior Vice President and General Counsel – Marketing and Client Services (formerly Asset Management Services) of GEAM and Senior Vice President and General Counsel of GE Asset Management Services from February 1997 to July 2007; Vice President and Associate General Counsel of GEAM from October 1992 to February 1997; Secretary of GE Institutional Funds and GE Investments Funds, Inc. from 1997 to July 2007 and Vice President from September 2003 to July 2007; Assistant Secretary of Elfun Funds and GE Retirement Savings Plan Funds from 1998 to July 2007 and Vice President from October 2003 to July 2007; and Secretary of GE Funds from 1993 to July 2007 and Vice President from September 2003 to July 2007.

Number of Portfolios in Fund Complex Overseen by Trustee  24

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since July 2007; Trustee of GE Institutional Funds since July 2007; Director of GE Investments Funds, Inc. and GEAM since July 2007; and Trustee of GE Funds from July 2007 to February 2011.

100

Donald W. Torey

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  58

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 22 years

Principal Occupation(s) During Past 5 years  President and Chief Investment Officer – Alternative Investments of GEAM since March 2007; Executive Vice President of GEAM from 1997 to March 2007; Executive Vice President – Alternative Investments of GEIC from 1997 to March 2007.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since 1993 and Director of GEAM since 1997.

David Wiederecht

Address  c/o GEAM, 1600 Summer St. Stamford, CT 06905

Age  59

Position Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 7 years

Principal Occupation(s) During Past 5 Years  President and Chief Investment Officer – Investment Solutions of GEAM since February 2008; Portfolio Manager – GE Institutional Funds since September 2010; Managing Director – Alternative Investments from 2004 to 2008; Vice President – Alternative Investments/Private Equity/Hedge Fund from 1998 to 2004.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since 2008; Director of GEAM since August 2008 and Director of Edmunds Holding Company since 1999.

Matthew Zakrzewski

Address  c/o GEAM 1600 Summer St. Stamford, CT 06905

Age  55

Position(s) Held with Fund  Trustee

Term of Office and Length of Time Served  Until successor is elected and qualified – 3 years

Principal Occupation(s) During Past 5 Years  Executive Vice President and Chief Financial Officer of GEAM since August 2013; formerly, Chief Financial Officer for GE Ventures from 2012 to 2013 and Chief Financial Officer for GE Risk, Insurance and Corporate Financing from 2006 to 2012.

Number of Portfolios in Fund Complex Overseen by Trustee  8

Other Directorships Held by Trustee  Trustee of GE Retirement Savings Plan Funds (formerly GE Savings & Security Funds) and General Electric Pension Trust since September 2013 and Director of GEAM since September 2013.

101

Portfolio Manager Biographies

The following sets forth biographical information for those individuals who are primarily responsible for managing the specified Fund’s investments. The portfolio managers may change from time to time.

David B. Carlson is Chief Investment Officer – U.S. Equities at GEAM. He manages the overall U.S. equity investments for GEAM. Mr. Carlson has served as the portfolio manager for Elfun Trusts since 1988. Mr. Carlson joined GEAM in 1982 as a securities analyst for investment operations. He became a Vice President for Mutual Fund Portfolios in 1987, a Senior Vice President in 1989 and an Executive Vice President in 2003.

Michael J. Caufield is a Senior Vice President of GEAM. He is the portfolio manager of the Elfun Tax-Exempt Income Fund and has served in that capacity since October 2000. Mr. Caufield joined GEAM in 1987 as Vice President, Manager of Fixed Income Research & Analysis and was promoted to Senior Vice President in 1994.

William M. Healey is a Senior Vice President and Chief Investment Officer – Core Fixed Income Investments of GEAM. He has served on the portfolio management team for the Elfun Income Fund since joining GEAM in 1996. Mr. Healey became Vice President in June 2001, Senior Vice President in January 2007 and Chief Investment Officer – Core Fixed Income Investments in April 2012. Prior to joining GEAM, Mr. Healey spent over 11 years in the fixed income group at MetLife.

Mark H. Johnson is a Senior Vice President and Chief Investment Officer – Insurance and Long Duration of GEAM. He has been a member of the portfolio management team for the Elfun Income Fund since 2007. Mr. Johnson joined GE in 1998 and GEAM as a Vice President and portfolio manager in 2002. He became Senior Vice President in September 2007 and Chief Investment Officer – Insurance and Long Duration in April 2012. Prior to joining GEAM, Mr. Johnson held positions at various insurance companies and public accounting firms.

Ralph R. Layman is an Executive Vice President, Chief Investment Officer Emeritus and a Director of GEAM. Mr. Layman has served as a portfolio manager of the

Elfun International Equity Fund since 1991. Mr. Layman joined GEAM in 1991 as a Senior Vice President for International Investments, became an Executive Vice

President in 1992, served as President – International Equities from March 2007 to July 2009, President and Chief Investment Officer – Public Equities from July 2009 to March 2012, and has served as Chief Investment Officer Emeritus since March 2012.

Jeffrey Palma is a Senior Vice President and Chief Market Strategist of GEAM, and a portfolio manager of the Elfun Diversified Fund. He became a member of the portfolio management team for the Elfun Diversified Fund in May 2013. Prior to joining GE Asset Management in 2012, Mr. Palma worked for UBS Investment Bank where he held a variety of global research and macro strategy roles supporting UBS’ global equities and fixed income businesses including Managing Director, Head of Global Equity Strategy rom 2007 to 2012, Executive Director, Global Asset Allocation Strategist from 2001 to 2007 and Director, U.S. Economist from 1999 to 2001.

Michael J. Solecki is a Senior Vice President and Chief Investment Officer – International Equities at GEAM. He has served as a portfolio manager of the Elfun International Equity Fund since August 1999. He joined GEAM in 1990 as an international equity analyst. He became a Vice President for international equity portfolios in 1996, Senior Vice President in 2000, Co-Chief Investment Officer – International Equities in March 2009 and Chief Investment Officer – International Equities in March 2012.

David Wiederecht is the President and Chief Investment Officer – Investment Solutions and a Director at GEAM. He has served as a portfolio manager to the Elfun Diversified Fund since January 2011. Mr. Wiederecht joined GEAM in 1988 and has held various positions at GEAM including Vice President – Alternative Investments/Private Equity/Hedge Fund from 1998 to 2004, Managing Director – Alternative Investments from 2004 to 2008, and President and Chief Investment Officer – Investment Solutions since 2008.

Todd N. Bean, CFA is a Vice President and Senior Portfolio Manager of State Street Global Advisors in the firm’s US Cash Management Group. Mr. Bean has served as portfolio manager of the Elfun Government Money Market Fund since September 2014. Mr. Bean began his career at State Street in 1999, joining the firm as an analyst in the firm’s custody and settlements area.

102

Portfolio Manager Biographies  (continued)

Following a stint on the money markets operations staff, he joined the Cash Management Group in 2004.

Jeff A. St. Peters is a Managing Director of State Street Global Advisors and the head of U.S. Cash Management within the Global Cash Management division. Mr. St. Peters has served as portfolio manager of the Elfun Government Money Market Fund since September 2014. Mr. St. Peters manages a team of portfolio managers that focus on traditional money market and securities lending cash collateral funds. He is also a Senior Portfolio Manager responsible for several securities lending, enhanced cash, offshore, and SSgA’s registered money market portfolios for both retail and institutional clients. Mr. St. Peters has been managing short duration cash and securities lending portfolios at SSgA for over 12 years. He is a member of SSgA’s Senior Leadership Team.

Prior to joining SSgA, Jeff was employed nearly 9 years with Fidelity Investments, the latter years within the Fidelity Management and Research Company, where he worked as a trader within the Money Market area of the Fixed Income division. In addition, he held several positions within Fidelity’s Investment Technology area, where he assisted in designing and implementing an internal proprietary trading system.

103

Portfolio Managers

Elfun International Equity Fund

Ralph R. Layman

Michael J. Solecki

Elfun Trusts

David B. Carlson

Elfun Diversified Fund

David Wiederecht

Jeffrey Palma

Elfun Tax-Exempt Income Fund

Michael Caufield

Elfun Income Fund

William M. Healey

Mark H. Johnson

Elfun Government Money Market Fund

SSGA Funds Management, Inc.

Investment Adviser

GE Asset Management Incorporated

Independent Registered Public Accounting Firm

KPMG LLP

Custodian

State Street Bank & Trust Company

Unitholder Servicing Agent

Address all inquiries to:

Elfun Mutual Funds

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

104

Online Service

Your Elfun Mutual Fund accounts can now be accessed on the Internet at www.geam.com.

Here are some of the online services:

• View account balance and transaction history

• Make exchanges

• Redeem shares

• Purchase shares

• View and order tax forms

• View quarterly statements

• Change address

• Re-order money market checks

Telephone Service

Our GE Mutual Funds Shareholder Service Associates are available Monday to Friday from 9:00 AM to 8:00 PM Eastern Standard Time. Call toll-free, 1-800-242-0134, for assistance.

Automated Voice Response System

You can also access your account anytime during the day, 7 days a week by dialing 1-800-242-0134. Simply follow the menu to obtain information or make certain transactions.

Contact Us By Mail

If you’d like to write to us, address your inquiries regarding your account(s) to:

Elfun Mutual Funds

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

105

M O R N I N G S T A R  R A T I N G S ^TM  Through December 31, 2015

FUND (CATEGORY)	NUMBER OF FUNDS IN CATEGORY	STAR RATING
Elfun International Equity (Foreign Large Blend)
Overall	891	¶  ¶ ¶
3 year	772	¶  ¶ ¶
5 year	699	¶  ¶ ¶
10 year	529	¶ ¶ ¶
Elfun Trusts (Large Growth)
Overall	1,779	¶  ¶ ¶ ¶
3 year	1,702	¶  ¶ ¶
5 year	1,547	¶  ¶ ¶ ¶
10 year	1,330	¶ ¶ ¶ ¶
Elfun Diversified (Moderate Allocation)
Overall	993	¶  ¶ ¶
3 year	933	¶  ¶ ¶
5 year	834	¶  ¶ ¶
10 year	670	¶ ¶
Elfun Tax-Exempt Income (Muni National Long)
Overall	210	¶  ¶ ¶ ¶
3 year	190	¶  ¶ ¶
5 year	190	¶  ¶ ¶
10 year	180	¶ ¶ ¶ ¶ ¶
Elfun Income (Intermediate-Term Bond)
Overall	1,107	¶  ¶ ¶ ¶
3 year	1,040	¶  ¶ ¶ ¶
5 year	990	¶  ¶ ¶ ¶
10 year	860	¶ ¶ ¶

Morningstar is an independent fund rating company that seeks to provide a non-biased rating system used in making investment decisions. A fund is rated in its broad asset class on a scale of one to five stars through the evaluation of the historical balance of risk and return after 3 years of performance.

Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top ten percent of the funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The ratings are subject to change every month. The overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten year (if applicable) Morningstar Rating metrics.

Investment return and principal value of an investment will fluctuate and you may have a gain or loss when you sell your shares. Returns assume changes in share price and reinvestment of dividends and capital gains.

Past performance is no guarantee of future results.

This does not constitute a part of the Funds’ Shareholder Report

Elfun Funds

c/o U.S. Bancorp Fund Services, Ltd.

PO Box 701

Milwaukee, WI 53201-0701

Distributor

GE Investment Distributors Inc.

Member FINRA and SIPC

1600 Summer Street

PO Box 7900

Stamford, CT 06904-7900

PRSRT STD

U.S. POSTAGE

PAID

Permit No. 1793

Lancaster, PA

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first, second and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q, as well as a description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities is available without charge (i) upon request, by calling 1-800-242-0134; (ii) on the Funds’ website at http://www.geam.com; and (iii) on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC — information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Information (if any) regarding how the Funds voted proxies relating to portfolio securities during the most recently disclosed 12-months period ended June 30 is available without charge (i) through the Funds’ website at http://www.geam.com; and (ii) on the Commission’s website at http://www.sec.gov.

ELF 1 (2/16)

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR and is included in the following link:

https://www.geam.com/ExternalWar/common/docs/pdf/Spirit_Letter.pdf

There have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition set forth in paragraph (b) of Item 2 of Form N-CSR during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the Registrant has determined that Matthew Zakrzewski and Donald W. Torey are designated as the audit committee financial experts for the Registrant; and further that it is the finding of the Board of Trustees that Messrs. Zakrzewski and Torey qualify as audit committee financial experts and are deemed to be “interested persons” of the Registrant as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).

Item 4. Principal Accountant Fees and Services.

(a) AUDIT FEES. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods were $17,100 in 2014 and $17,400 in 2015.

(b) AUDIT RELATED FEES. There were no fees billed by the Auditor for assurance and related services that were related to the performance of the audit of the Registrant during the Reporting Periods.

(c) TAX FEES. There were no fees billed for professional services rendered by the Auditor for tax compliance, tax advice or tax planning for the Registrant during the Reporting Periods.

(d) ALL OTHER FEES. There were no fees billed for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item for the Registrant during the Reporting Periods.

(e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES.

The Audit Committee of the Elfun Funds (the “Funds”) Board of Trustees is responsible for, among other things, the appointment, compensation and oversight of the work of the Funds’ Auditor. As part of this responsibility and to ensure that the Auditor’s independence is not impaired, the Audit Committee (1) pre-approves the audit and non-audit services provided to the Funds by the Auditor, and (2) all non-audit services provided to the Funds’ investment adviser and Covered Affiliates (as defined in the Audit Committee Charter) that provide ongoing services to the Funds if the services directly impact the Funds’ operations or financial reporting, in accordance with the Audit Committee Charter. The following excerpt from the Audit Committee Charter sets forth the pre-approval policies and procedures:

Pre-Approval of Audit Related Services and Permissible Non-Audit Services. The Audit Committee shall pre-approve both audit (including audit, review, and attest) services and permissible non-audit services provided to the Fund and, if the nature of the engagement relates directly to the operations and financial reporting of the Fund, permissible non-audit services provided to any Covered Affiliate.

The Audit Committee may determine to delegate the authority to grant pre-approvals to one or more Audit Committee members, each acting on behalf of the Audit Committee. In this event, the member of the Audit Committee so delegated shall report each delegated pre-approval to the Audit Committee at its next regularly scheduled meeting. The Audit Committee may also adopt and follow, in lieu of explicit pre-approval described above, written policies and procedures detailed as to the particular service, designed to safeguard the continued independence of the Auditor, consistent with the requirements of the Investment Company Act of 1940, as amended (the “1940 Act”), and SEC regulations there under.

Notwithstanding the foregoing, the pre-approval requirement concerning permissible non-audit services provided to the Fund or any Covered Affiliate is waived if: (1) the aggregate amount of all such non-audit services provided constitutes no more than five percent (5%) of the total amount of revenues paid to the Auditor by the Fund and the Covered Affiliates during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee, (2) the non-audit services were not recognized as non-audit services at the time of the engagement, and (3) such non-audit services are promptly brought to the attention of the Audit Committee and approved by the Audit Committee or one or more designated members of the Audit Committee prior to the completion of the audit.

(2) PERCENTAGE OF SERVICES DESCRIBED IN PARAGRAPHS (b) THROUGH (d) APPROVED BY AUDIT COMMITTEE. No fees were charged during the Reporting Periods for audit related, tax or other services as indicated in sections (b) through (d) of this Item.

(f) Not applicable.

(g) NON-AUDIT FEES. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the Registrant’s adviser (“Service Affiliates”), for the Reporting Periods were $0 in 2014 and $0 in 2015.

(h) AUDITOR INDEPENDENCE. There were no non-audit services rendered to Service Affiliates during the Reporting Periods that were not pre-approved.

Item 5. Audit Committee of Listed Registrants.

Applicable only to Closed-End Management Investment Companies.

Item 6. Schedule of Investments.

(a) Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this Form N-CSR.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Applicable only to Closed-End Management Investment Companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Applicable only to Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Applicable only to Closed-End Management Investment Companies.

Item 10. Submission of Matters to a Vote of Security Holders.

During the reporting period, there have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective as of a date within 90 days of the filing date of the report included in Item 1 of this Form N-CSR, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this Form N-CSR that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) The Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer is attached hereto.

(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) The certifications by the Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002, are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the below Registrants have duly caused each report to be signed on their behalf by the undersigned, thereunto duly authorized.

Elfun International Equity Fund

Elfun Trusts

Elfun Diversified Fund

Elfun Tax-Exempt Income Fund

Elfun Income Fund

Elfun Government Money Market Fund

By:	/s/ Dmitri L. Stockton
	Dmitri L. Stockton
	Trustee, President and Chief Executive Officer
	GE Asset Management Incorporated
Date: February 18, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each report has been signed below by the following persons on behalf of the Registrants and in the capacities and on the dates indicated.

By:	/s/ Dmitri L. Stockton
	Dmitri L. Stockton
	Trustee, President and Chief Executive Officer
	GE Asset Management Incorporated
Date: February 18, 2016
By:	/s/ Arthur A. Jensen
	Arthur A. Jensen
	Treasurer, Elfun Funds
Date: February 18, 2016